Up Solid Civil Law Reviewer PDF

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131944533 UP Solid Civil Law Reviewer
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lOMoARcPSD|3291925
CIVIL LAW REVIEWER
PERSONS & FAMILY

RELATIONS
CIVIL LAW 2010
SUCCESSION
OBLIGATIONS
Copyright and all other relevant rights over this material are
owned jointly by the University of the Philippines College of
CONTRACTS
Law, the Faculty Editor and the Student Editorial Team.
The ownership of the work belongs to the University of the PROPERTY

Philippines College of Law. No part of this book shall be
reproduced or distributed without the consent of the UP LAND TITLES
College of Law. & DEEDS
All rights are reserved.

SALES
CREDIT
TRANSACTIONS
AGENCY
PARTNERSHIP
TORTS & DAMAGES
PRIVATE
INTERNATIONAL LAW

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
PERSONS & FAMILY RELATIONS

Table of Contents
Chapter I. Civil Personality..............................3 III. Absolute Community of Property ........ 31

I. Concept and Classes of Persons..........3 IV. Conjugal Partnership of Gains ............ 34
II. Capacity to Act and Restrictions V. Separation of Properties During
Thereon..........................................................5 Marriage....................................................... 38
VI. Property regime of unions without
Chapter II. Citizenship and Domicile..............8 marriage....................................................... 39
I. Who are Filipinos ..................................8
II. Domicile ................................................8 Chapter IX. The Family and the Family Home
......................................................................... 41
Chapter III. Marriage.........................................9 I. Family.................................................. 41
I. Definition and Nature of Marriage .........9 II. Family Home....................................... 41
II. Requisites of Marriage ..........................9
III. Marriages Solemnized Abroad............11 Chapter X. Paternity and Filiation ................ 43
IV. Presumption of Marriage.....................11 I. Kinds of Filiation.................................. 43
II. Impugning Legitimacy (Art. 166) ......... 43
Chapter IV. Void Marriages ...........................13 III. Proof of Filiation (Arts. 172 and 175 (1))
I. Grounds ..............................................13 44
II. Period to File Action or Raise Defense IV. Legitimation (Arts. 177 and 182)......... 45
15 V. Rights of Legitimate and Illegitimate
III. Effects of Nullity ..................................16 Children (SSS)............................................. 45
Chapter XI. Adoption ..................................... 46
Chapter V. Voidable Marriages .....................18 I. RA 8552: Domestic Adoption Act of
I. Grounds for Annulment (Art. 45, FC) ..18 1998 46
II. Marriage When One Spouse Absent ..21 II. Adoption Procedure under RA 8552 IRR
III. Effects of Pending Actions/Decree (Secs. 10-32) ............................................... 47
(Art. 49, FC) .................................................22 III. RA 8043: Inter-Country Adoption Act of
IV. Voidable v. Void Marriage ...................23 1995 49
V. Voidable v. Legal Separation ..............23
VI. Jurisdiction ..........................................23 Chapter XII. Support ...................................... 51
I. Support................................................ 51
Chapter VI. Legal Separation, Divorce and De II. Who are Obliged to Support Each Other
Facto Separation ............................................24 (Art. 195)...................................................... 51
I. Grounds for Legal Separation.............24 III. Properties Answerable for Support (Art.
II. Defenses .............................................25 197-198) ...................................................... 52
III. When to File/Try Actions .....................25 IV. Order of Support (SDAB) .................... 52
IV. Effects of Filing Petition for Legal
Separation....................................................25
Chapter XIII. Parental Authority.................... 53
V. Effects of Decree for Legal Separation
I. Parental Authority ............................... 53
25
II. Substitute and Special Parental
VI. Reconciliation......................................26
Authority....................................................... 54
VII. Divorce............................................26
III. Suspension or Termination of Parental
VIII. De Facto Separation.......................27
Authority....................................................... 55
IV. Rights and Duties of Children ............. 55
Chapter VII. Rights and Obligations Between
Husband and Wife..........................................28
Chapter XIV. Funerals.................................... 56
I. Obligations of Spouses (Arts. 68-71, FC)
I. General Guidelines ............................. 56
28
II. Rights of Spouses (Arts. 72-73, FC) ...28
III. Use of Surname ..................................28
Chapter VIII. Property Relations Between

Spouses ..........................................................29
I. General Provisions..............................29
II. Donations by Reason of Marriage ......30

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
SUCCESSION
Table of Contents
Chapter I. Concept of Succession................59 Chapter V. Partition and Distribution of

I. Definition of Succession (Art. 774, CC) Estate .............................................................. 83
59 I. Concept of Partition ............................ 83
II. Opening of Succession (Art. 777, CC) 59 II. Effects of Partition............................... 84
III. Kinds of Succession (Art. 778, CC) ....59 III. Nullification of Partition ....................... 84
IV. Heirs ....................................................60 IV. Important Periods in Partition ............. 85
Chapter II. Testamentary Succession ..........61 Chapter VI. Application of the Important
I. Concept ...............................................61 Concepts through Sample Computational
II. Testamentary Capacity .......................61 Problems......................................................... 86
III. Formalities of Wills ..............................61 I. Institution of Heirs ............................... 86
IV. Qualifications of Witnesses to a Notarial II. Legitimes............................................. 86
Will 62 III. Intestate Succession........................... 87
V. Qualifications of Witnesses to a Notarial IV. Accretion ............................................. 87
Will 63 V. Collation .............................................. 88
VI. Institution of Heirs ...............................63
VII. Applicable Principles of Private
International Law .........................................63
VIII. Codicils and Incorporation by
Reference ....................................................64
IX. Revocation of Wills and Testamentary
Dispositions..................................................64
X. Allowance and Disallowance of Wills..65
XI. Substitution of Heirs ............................66
XII. Legitimes.........................................67
XIII. Preterition........................................69
XIV. Reserva Troncal .............................69
XV. Disinheritance .................................70
XVI. Legacies and Devises.....................71
Chapter III. Intestate Succession..................74

I. Causes for Legal or Intestate
Succession...................................................74
II. The Intestate or Legal Heirs................74
III. Fundamental Underlying Principles in
Legal or Intestate Succession......................74
IV. Relationship (Arts. 963-969, CC) ........75
V. The Right of Representation (Art. 970,
CC) 75
VI. Order of Legal or Intestate Succession
76
VII. Concurrence in Legal or Intestate
Succession...................................................77
VIII. Outline of Intestate Shares .............77
IX. Order of Concurrence in the Case of an
Adopted Child (Art, 190, FC) .......................78
Chapter IV. Provisions Common to

Testamentary and Intestate Succession .....79
I. Accretion .............................................79
II. Capacity to Succeed ...........................80
III. Acceptance and Repudiation of
Inheritance ...................................................81
IV. Collation (Arts. 1061-1077, CC)..........81

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CIVIL LAW REVIEWER
OBLIGATIONS
Table of Contents
Chapter I. General Provisions.......................91

I. Obligations ..........................................91
II. Sources of Obligations ........................91
Chapter II. Nature and Effect of Obligations93

I. Kinds of Prestations ............................93
II. Breach of Obligation............................94
III. Fortuitous Event (Force Majeure) .......96
IV. Remedies to Creditors ........................96
V. Usurious Transactions and Rules on
Interest .........................................................97
Chapter III. Different Kinds of Obligations ..98

I. Pure and Conditional Obligations .......98
II. Reciprocal Obligations ......................100
III. Obligations with a Period ..................100
IV. Alternative and Facultative Obligations
101
V. Joint and Solidary Obligations ..........103
Effects of Prejudicial and Beneficial Acts
(Art.1212) ...................................................105
VI. Divisible and Indivisible Obligations..106
VII. Oblligations with a Penal Clause ..106
Chapter IV. Extinguishment of Obligations

.......................................................................107
I. Payment or Performance ..................107
II. Loss or Impossibility..........................109
III. Condonation or Remission of the Debt
109
IV. Confusion or Merger of Rights ..........110
V. Compensation ...................................110
VI. Novation ............................................111
Charts: Payment & Performance ................114

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
CONTRACTS
Table of Contents
Chapter I. General Provisions.....................122

I. Classification of Contracts.................122
II. Elements of Contracts.......................123
III. Stages of Contracts...........................123
IV. Charactertics of Contracts (MARCO) 123
Chapter II. Essential Requisites .................125

I. Consent .............................................125
II. Object ................................................127
III. Cause ................................................127
Chapter III. Forms of Contracts ..................129

I. Rules .................................................129
II. Kinds of Formalities...........................129
Chapter IV. Reformation of Contracts........130
Chapter V. Interpretation of Contracts.......130
Chapter VI. Defective Contracts .................131

I. Rescissible Contracts (Arts. 1380-1389)
131
II. Voidable Contracts (Arts. 1390-1402)
132
III. Unenforceable Contracts (Arts. 1403-
1408) ..........................................................133
IV. Void or Inexistent Contracts (Arts. 1409-
1422) ..........................................................134

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
PROPERTY
Table of Contents
Chapter I. Definition and Classification of Chapter VII. Usufruct ................................... 181

Property.........................................................137 I. Concept............................................. 181
I. Definition ...........................................137 II. Characteristics .................................. 181
II. Classification .....................................137 III. Usufruct Distiguished from Lease and
Chapter II. Ownership ..................................144 Servitude.................................................... 181
I. Definition ...........................................144 IV. Classes of Usufruct........................... 182
III. Specific Rights under the Civil Code.144 V. Rights of Usufructuary ...................... 184
IV. Limitations on Real Right of Ownership VI. Rights of the Naked Owner............... 186
146 VII. Obligations of the Usufructuary .... 187
Chapter III. Accession..................................147 VIII. Special Cases of Usufruct ............ 190
I. Definition ...........................................147 IX. Extinguishment of Usufruct............... 192
II. General Principles of Accession .......147 X. Conditions Not Affecting Usufruct..... 194
III. Kinds of Accession............................147 Chapter VIII. Easement ................................ 196
IV. Principles Governing Each Kind of I. Concept............................................. 196
Accession...................................................147 II. Essential Features ............................ 196
Chapter IV. Quieting of Title........................152 III. Classification of Servitudes............... 197
I. In General .........................................152 IV. General Rules Relating to Servitudes
II. Purpose .............................................152 198
III. Nature: Quasi in Rem........................152 V. Modes of Acquiring Easements ........ 198
IV. Requisites .........................................152 VI. Rights and Obligations of Owners of
V. Prescription of Action ........................153 Dominant and Servient Estates ................. 199
Chapter V. Co-Ownership............................154 VII. Modes of Extinguishment of
I. Definition ...........................................154 Easements................................................. 200
II. Characteristics ..................................154 VIII. Legal Easements .......................... 202
III. Difference between Co-ownership and Chapter IX. Nuisance ................................... 212
Joint Tenancy.............................................155 I. Definition ........................................... 212
IV. Difference between Co-ownership and II. Classes ............................................. 212
Partnership.................................................155 III. Liability in Case of Nuisance............. 213
V. Sources of Co-Ownership .................155 IV. Regulation of Nuisances ................... 214
VI. Rights of Each Co-owner over the Thing Chapter X. Modes of Acquiring Ownership
or Property Owned in Common .................157 ....................................................................... 217
VII. Implication of Co-owner’s Right over I. Mode v. Title ..................................... 217
His Ideal Share ..........................................161 II. Mode ................................................. 217
VIII. Rules on Co-Ownership Not Chapter XI. Donation ................................... 222
Applicable to CPG or ACP.........................161 I. Nature ............................................... 222
IX. Special Rules on Ownership of Different II. Requisites ......................................... 222
Stories of a House as Differentiated from III. Kinds ................................................. 222
Provisions of the Condominium Act...........162 IV. Who May Give or Receive Donations
X. Extinguishment of Co-Ownership .....166 223
Chapter VI. Possession ...............................168 V. Who May Not Give or Receive
I. Definition ...........................................168 Donations................................................... 224
II. Degrees of Possession .....................169 VI. Acceptance ....................................... 225
III. Classes of Possession ......................169 VII. Form ............................................. 225
IV. Cases of Possession.........................169 VIII. What May Be Donated ................. 225
V. What Things May be Possessed ......170 IX. Effect ................................................. 226
VI. What May Not Be Possessed by Private X. Revocation and Reduction................ 227
Persons......................................................171 Chapter XII. Lease........................................ 232
VII. Acquisition of Possession .............171 I. General Characteristics .................... 232
VIII. Effects of Possession ...................173 II. Kinds ................................................. 232
IX. Effects of Possession in the Concept of III. Lease of Things ................................ 232
Owner ........................................................177
X. Presumption in Favor of the
Possessor—for Acquisitive Prescription ....178
XI. Possesion May Be Lost By ...............179

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
LAND TITLES and DEEDS

Table of Contents
Chapter I: Background, Basic Concepts and Chapter 6: System of Registration of

General Principles........................................239 Unregistered Lands ..................................... 261
I. Definitions and Basic Concepts ........239 I. Key Points......................................... 261
II. Nature and stages.............................240 II. Procedure ......................................... 261
III. Purpose of Registration.....................240
IV. Modes of Acquiring Land Titles.........240 Chapter 7: Registration of Public Lands ... 262
V. Jurisdiction ........................................240 I. Classification of Land of the Public
Domain ...................................................... 262
Chapter 2: Torrens Certificate of Title .......241 II. Nature of Title to Public Lands
I. Original Certificate of Title or OCT....241 Conveyed .................................................. 262
II. Transfer Certificate of Title................241 III. Procedure of Conveying Public Land to
III. Patents ..............................................241 a Private Person ........................................ 262
IV. Director of Lands: Quasi-judicial officer
Chapter 3: Original Registration.................242 263
I. Laws Governing Land Registration...242 V. Modes of Alienating Public Lands:.... 263
II. Effect of Registration.........................242 VI. Patents ......................................... 263
III. Original Registration Proceeding ......242
IV. Attributes of and Limitation In Certificate Chapter 8: Remedies of the Aggrieved Party
of Title and Registered Land (FIIC) ...........247 ....................................................................... 264
V. Judicial Confirmation of Imperfect or
Incomplete Titles............................249 Chapter 9: Reconstitution 0f Titles ........... 266
I. Grounds ............................................ 266
Chapter 4: Cadastral Registration II. Petitions for Reconstitution ............... 266
Proceedings..................................................251 III. Duties of the Land Registration Authority
I. Steps in Cadastral Registration 266
Proceedings ...............................................252 IV. Effects of Fraud, Deceit and
Machination in the Reconstitution of Titles 266
Chapter 5: Subsequent Registration..........253
I. Two Types of Dealings......................253
II. Necessity and Effects of Registration
253
III. Voluntary vs. Involuntary Dealings..253
IV. Registration of Voluntary Instruments in
General ......................................................254
V. Registration of Deeds of Sale and
Transfers....................................................255
VI. Mortgages and Leases......................256
VII. Powers of Attorney; Trusts ...........257
VIII. Involuntary Dealings .....................257

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
SALES
Table of Contents
Chapter I. The Contract of Sale ..................269

I. Definition (Art 1458, CC) ...................269
II. Elements ...........................................269
III. Stages ...............................................274
IV. Kinds of Sale .....................................275
V. Form ..................................................276
VI. Sale Distinguished From Other
Contracts....................................................276
Chapter II. Obligations of the Seller and

Buyer .............................................................278
I. Obligations of the Seller ....................278
II. Obligations of the Buyer....................284
Chapter III. Double Sales .............................286

I. General Rule .....................................286
II. Requisites .........................................286
III. Rules Governing Sale of Movables,
Immovables and Unregistered Lands ........286
Chapter IV. Risk of Loss..............................288

I. General Rule .....................................288
II. Exceptions.........................................288
Chapter V. Documents of Title....................289

I. In General .........................................289
II. Negotiable Documents of Title..........289
III. Non-Negotiable Documents of Title ..289
Chapter VI. Remedies of the Seller and Buyer

.......................................................................291
I. General Remedies (Art. 1191, CC) ...291
II. Remedies of the Seller......................291
III. Remedies of the Buyer......................295
Chapter VII. Extinguishment of Sale ..........298

I. In General .........................................298
II. Conventional Redemption.................298
III. Equitable Mortgage ...........................299
IV. Legal Redemption .............................300
Chapter VIII. Philippine Bulk Sales Law (Act

3952) ..............................................................303
I. Purpose .............................................303
II. Coverage...........................................303
III. Duty of Seller.....................................303
IV. Effect of non-compliance...................304

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
CREDIT TRANSACTIONS
Table of Contents
Chapter I. General Principles ......................307 Chapter VIII. Concurrence and Preference of

I. Types of Credit Transactions ............307 Credits........................................................... 338
II. Security .............................................307 I. General Provisions............................ 338
III. Bailment ............................................307 II. Classification of Credits .................... 338
III. Preference of Credits ........................ 338
Chapter II. Loan (Arts. 1933-1961, CC).......309
I. Definition ...........................................309
II. Characteristics of a Loan ..................309
III. Kinds of Loan: In General .................309
IV. Commodatum....................................309
V. Obligations of the Bailee in
Commodatum ............................................310
VI. Obligations of the Bailor in
Commodatum ............................................311
VII. Mutuum or Simple Loan................311
VIII. Interests ........................................312
IX. The Usury Law ..................................312
Chapter III. Deposit ......................................314

I. Definition ...........................................314
II. Kinds of Deposit ................................314
III. Characteristics of Deposit .................314
IV. Deposit Distinguished From Mutuum
and Commodatum .....................................314
V. Obligations of the Depositary............314
VI. Obligations of the Depositor..............317
VII. Extinguishment of Deposit (Art. 1995)
317
VIII. Necessary Deposit........................317
IX. Judicial Deposit .................................318
Chapter IV. Guaranty ...................................319

I. Definition ...........................................319
II. Characteristics ..................................319
III. Classification .....................................319
IV. Rules Governing Guaranty ...............319
V. Guaranty Distinguished from Others.322
VI. The Guarantor (Arts. 2056-2057)......322
VII. Effects of Guaranty .......................322
VIII. Extinguishment of Guaranty .........325
Chapter V. Legal and Judicial Bonds.........326
Chapter VI. Suretyship.................................327
Chapter VII. Pledge, Mortgage, Antichresis

.......................................................................328
I. Essential Requisites Common to Pledge
and Mortgage (Art. 2085)...........................328
II. Pledge ...............................................329
III. Mortgage ...........................................332
IV. Foreclosure of Mortgage (Art. 2085).334
V. Antichresis.........................................336
VI. Chattel Mortgage...............................336

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
AGENCY
Table of Contents
Chapter I. Nature, Form, and Kinds of Agency

.......................................................................341
I. Definition [Art. 1868, CC] ..................341
II. Purpose .............................................341
III. Characteristics [CNPPBF].................342
IV. Essential Elements............................342
V. Determination of Existence of Agency
342
VI. Agency v Similar Contracts ...............343
VII. Kinds .............................................344
Chapter II. Obligations of the Agent...........348

I. To Carry Out the Agency ..................348
III. To Advance the Necessary Funds [Art.
1886, CC]...................................................349
IV. To Act in Accordance with Principal’s
Instructions.................................................349
V. To Prefer Interest of Principal Over
Personal Interest........................................349
VI. To Render Accounts and Deliver Things
Received by Virtue of the Agency..............349
VII. To Be Responsible for Substitutes350
VIII. To Pay Interest .............................350
IX. To Answer for His Negligence or Fraud
[Art. 1909, CC] ...........................................350
X. Special Obligations of Factor/
Commission Agents ...................................350
Chapter III. Liabilities of the Agent .............352

I. Liability to Third Persons...................352
II. Liability to the Principal .....................352
III. Liability of Two or More Agents.........353
Chapter IV. Obligations of the Principal ...354

I. To Comply with the obligations
contracted by the agent .............................354
II. To Advance the Necessary Sums and
Reimburse the Agent .................................355
III. To Indemnify the Agent for Damages355
IV. To Pay the Agent’s Compensation ...356
V. To Be Solidarily Liable ......................356
Chapter V. Extinguishment of Agency......357

Extinguishment of Agency [EDWARD] ......357
I. Expiration of the period for which it was
constituted..................................................357
II. Death, civil interdiction, insanity,
insolvency ..................................................357
III. Withdrawal of the agent ....................357
IV. Accomplishment of the object of the
agency .......................................................357
V. Revocation ........................................357
VI. Dissolution of the firm/corp. Which
entrusted/accepted the agency..................358

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
PARTNERSHIP
Table of Contents
Chapter I. Nature, Creation, Kinds of III. Right to Lien or Retention, to Stand in

Partnership ...................................................361 Place of Creditor, to be Indemnified .......... 377
I. Essential Features ............................361 IV. Right of Retiring/Deceased Partner (Art.
II. Characteristics ..................................362 1841, CC) .................................................. 377
III. Distinctions ........................................362 V. Right of Account (Art. 1842, CC) ...... 378
IV. Rules to Determine Existence...........363
V. How Partnership is Formed ..............363 Chapter VIII. Rules on Settlement (Art. 1839,
VI. Partnership Term ..............................363 CC)................................................................. 379
VII. Kinds of Partnerships....................363
Chapter IX. Limited Partnership ................ 380
Chapter II. Obligations of the I. Definition ........................................... 380
Partnership/Partners Among Themselves 366 II. Forming/Amending a Limited
CRRAMP-LS..............................................366 Partnership (Art. 1844, CC) ....................... 381
I. Make Contributions as Promised ......366 III. Limited Partner.................................. 382
III. Manage the Partnership....................367 IV. General Partner ................................ 384
IV. Render Full Information.....................368 V. Dissolution ........................................ 384
V. Account for benefits ..........................368 VI. Settling Accounts for Dissolution ...... 385
VI. Reimburse expenses ........................368
VII. Liable for Partnership Contracts ...368
VIII. Solidarily Liable with Partnership.369
Chapter III. Obligations of the

Partnership/Partners as to Third Persons.370
LANN .........................................................370
I. Operate Under a Firm Name (Art. 1815,
CC) 370
II. Bound by Partnership Admission......370
III. Bound by Notice Partner ...................370
IV. Liable for Acts of the Partnership......370
Chapter IV. Rights of Partners ...................371

I. Share in Losses and Profits ..............371
II. Associate Another in His Interest......371
III. Access to Partnership Books ............371
IV. Obtain Formal Account .....................371
V. Property Rights .................................371
VI. Convery Real Property (Art. 1819, CC)
372
Chapter V. Rights of the Partnership ........374

I. Acquire Immovables..........................374
II. Preference of Creditors .....................374
Chapter VI. Dissolution and Winding Up ..375

I. Definitions .........................................375
II. Causes for Dissolution ......................375
III. Consequences of Dissolution ...........375
IV. Partner’s Liability...............................376
Chapter VII. Rights of Partners Upon

Dissolution....................................................377
I. Right to Wind Up ...............................377
II. Right to Damages for or to Continue
Business on Wrongful Dissolution .............377

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
TORTS & DAMAGES

Table of Contents
Chapter I. Introduction, Definitions............388

A. Tort and Quasi-Delict ........................388
B. Damages ...........................................389
Chapter II. Concept of Quasi-Delict............390

A. Elements ...........................................390
B. Distinguished.....................................390
Chapter III. Negligence ................................392

A. Concept of Negligence......................392
B. Degrees of Negligence......................393
C. Proof of Negligence...........................393
D. Defenses ...........................................394
Chapter IV. Causation..................................396

A. Proximate Cause...............................396
Chapter V. Persons Liable...........................399

A. The Tortfeasor...................................399
B. Vicarious Liability ..............................399
C. Specific Liability.................................403
D. Joint and Solidary Liability ................407
E. Civil Liability Arising From Crime...........407
F. Prescription .......................................408
Chapter VI. Tortious Interference With

Contract.........................................................409
Chapter VII. Torts with Independent Civil

Action ............................................................410
A. Violation of Civil and Political Rights.410
B. Defamation, Fraud, Physical Injuries 410
Chapter VIII. Human Relations Provisions 413

A. Abuse of Rights.................................413
B. Acts Contra Bonus Mores .................413
Other Torts ...............................................414
C. Dereliction of Duty.............................414
D. Illegal Acts .........................................414
E. Unfair Competition ............................414
F. Violation of Human Dignity................414
Chapter IX. Damages ...................................415

A. Definition and Concept......................415
B. Kinds of Damages.............................415

lOMoARcPSD|3291925
CIVIL LAW REVIEWER
PRIVATE INTERNATIONAL LAW

Table of Contents
Chapter I. Introduction.................................427 Chapter XI. Property .................................... 447

I. Controlling Law—Lex Situs/Lex Rei
Chapter II. Jurisdiction ................................429 Sitae 447
I. Bases of Exercise of Judicial Jurisdiction II. Exceptions to Lex Situs..................... 447
429 III. Situs of Certain Properties ................ 447
II. Exercise of Jurisdiction .....................429
III. Ways of Dealing with Jurisdiction in a Chapter XII. Contracts ................................. 449
Conflicts Problem.......................................430 I. Extrinsic Validity of Contracts ........... 449
II. Extrinsic Validity of Contracts ........... 449
Chapter III. Choice of Law ...........................431 III. Capacity to Enter Into Contracts....... 449
I. Approaches to Choice of Law ...........431 IV. Choice of Law Issues in Conflicts
Contracts Cases ........................................ 449
Chapter IV. Characterization .......................433 V. Limitation Choice of Law................... 450
I. Types of Characterization .................433 VI. Applicable Law in the Absence of
II. Depecage ..........................................433 Effective Choice......................................... 450
Chapter V. Renvoi ........................................434 Chapter XIII. Succession ............................. 451

I. Definition ...........................................434 I. Extrinsic Validity (Arts. 17, 815-817, CC)
II. Ways of Dealing with Renvoi ............434 451
II. Intrinsic Validity ................................. 451
Chapter VI. Notice and Proof of Foreign Law III. Interpretation of Wills ........................ 451
.......................................................................435 IV. Revocation ........................................ 451
I. Proof of Foreign Law.........................435 V. Probate.............................................. 451
II. Exceptions to the Application of Foreign VI. Administration of Estates .................. 452
Law 435 VII. Trusts............................................ 452
Chapter VII. Nationality................................436 Chapter XIV. Torts and Crimes ................... 453
I. Determination of Nationality ..............436 I. Torts .................................................. 453
II. Procedure for Naturalization .............436 II. Crimes............................................... 454
III. Loss of Philippine Citizenship ...........437
IV. Problems in Applying the Nationality Chapter XV. Torts and Crimes .................... 455
Principle .....................................................438 I. Personal Law of Corporations .......... 455
II. Domicile/Residence of Corporations 455
Chapter VIII. Domicile ..................................439 III. Jurisdiction Over Foreign Corporations
I. Domicile ............................................439 455
II. Comparative Merits and Demerits of IV. Right of Foreign Corporations to Bring
Domicile and Nationality ............................440 Suit 456
Chapter IX. Principles on Personal Status Chapter XVI. Foreign Judgments ............... 457
and Capacity.................................................441 I. Recognition v. Enforcement.............. 457
I. Definition ...........................................441 II. Bases of Recognition and Enforcement
II. Beginning and End of Personality.....441 457
III. Absence ............................................441 III. Policy of Preclusion Underlying
IV. Name.................................................442 Recognition and Enforcement ................... 457
V. Age of Majority ..................................442 IV. Requisites for Recognition or
VI. Capacity ............................................442 Enforcement .............................................. 457
V. Procedures for Enforcement ............. 457
Chapter X. Family Relations........................443 VI. Effect of Foreign Judgment in the
I. Marriage ............................................443 Philippines ................................................. 458
II. Divorce and Separation.....................445
III. Annulment and Declaration of Nullity 445
IV. Parental Relations.............................446
V. Adoption ............................................446

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lOMoARcPSD|3291925
CIVIL LAW REVIEWER TABLE of CONTENTS
PERSONS & FAMILY RELATIONS 2

Table of Contents

Chapter I. Civil Personality..............................3 III. Absolute Community of Property ........ 31
I. Concept and Classes of Persons..........3 IV. Conjugal Partnership of Gains ............ 34
II. Capacity to Act and Restrictions V. Separation of Properties During
Thereon..........................................................5 Marriage....................................................... 38
VI. Property regime of unions without
Chapter II. Citizenship and Domicile..............8 marriage....................................................... 39
I. Who are Filipinos ..................................8
II. Domicile ................................................8 Chapter IX. The Family and the Family Home
......................................................................... 41
Chapter III. Marriage.........................................9 I. Family.................................................. 41
I. Definition and Nature of Marriage .........9 II. Family Home....................................... 41
II. Requisites of Marriage ..........................9
III. Marriages Solemnized Abroad............11 Chapter X. Paternity and Filiation ................ 43
IV. Presumption of Marriage.....................11 I. Kinds of Filiation.................................. 43
II. Impugning Legitimacy (Art. 166) ......... 43
Chapter IV. Void Marriages ...........................13 III. Proof of Filiation (Arts. 172 and 175 (1))
I. Grounds ..............................................13 44
II. Period to File Action or Raise Defense IV. Legitimation (Arts. 177 and 182)......... 45
15 V. Rights of Legitimate and Illegitimate
III. Effects of Nullity ..................................16 Children (SSS)............................................. 45
Chapter XI. Adoption ..................................... 46
Chapter V. Voidable Marriages .....................18 I. RA 8552: Domestic Adoption Act of
I. Grounds for Annulment (Art. 45, FC) ..18 1998 46
II. Marriage When One Spouse Absent ..21 II. Adoption Procedure under RA 8552 IRR
III. Effects of Pending Actions/Decree (Secs. 10-32) ............................................... 47
(Art. 49, FC) .................................................22 III. RA 8043: Inter-Country Adoption Act of
IV. Voidable v. Void Marriage ...................23 1995 49
V. Voidable v. Legal Separation ..............23
VI. Jurisdiction ..........................................23 Chapter XII. Support ...................................... 51
I. Support................................................ 51
Chapter VI. Legal Separation, Divorce and De II. Who are Obliged to Support Each Other
Facto Separation ............................................24 (Art. 195)...................................................... 51
I. Grounds for Legal Separation.............24 III. Properties Answerable for Support (Art.
II. Defenses .............................................25 197-198) ...................................................... 52
III. When to File/Try Actions .....................25 IV. Order of Support (SDAB) .................... 52
IV. Effects of Filing Petition for Legal
Separation....................................................25
Chapter XIII. Parental Authority.................... 53
V. Effects of Decree for Legal Separation
I. Parental Authority ............................... 53
25
II. Substitute and Special Parental
VI. Reconciliation......................................26
Authority....................................................... 54
VII. Divorce............................................26
III. Suspension or Termination of Parental
VIII. De Facto Separation.......................27
Authority....................................................... 55
IV. Rights and Duties of Children ............. 55
Chapter VII. Rights and Obligations Between
Husband and Wife..........................................28
Chapter XIV. Funerals.................................... 56
I. Obligations of Spouses (Arts. 68-71, FC)
I. General Guidelines ............................. 56
28
II. Rights of Spouses (Arts. 72-73, FC) ...28
III. Use of Surname ..................................28
Chapter VIII. Property Relations Between

Spouses ..........................................................29
I. General Provisions..............................29
II. Donations by Reason of Marriage ......30

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. CIVIL PERSONALITY
PERSONS & FAMILY RELATIONS TEAM

Chapter I. Civil Personality

Prof. Carolina Austria
I. CONCEPT AND CLASSES OF PERSONS
3
Faculty Editor
A. NATURAL PERSONS

Anisah Azis B. JURIDICAL PERSONS
Karen Torres II. CAPACITY AND RESTRICTIONS THEREON
Lead Writer A. PRESUMPTIONS OF CAPACITY
Dana Crisostomo Eden Mopia B. RESTRICTIONS
Jaimmie Hans Faye Celso 1. MINORITY
Nathan Pico Mark Oyales 2. INSANITY
Zharmai Garcia Camille Umali 3. BEING DEAF-MUTE
Rowena Yang JC Punongbayan
4. PRODIGALITY
Margie Lim Mary Beley
Jiselle Compuesto Aboy Bayalan 5. CIVIL INTERDICTION
Mickey Chatto Welga Carrasco 6. FAMILY RELATIONS
Joan Batimana 7. ABSENCE
Writers
CIVIL LAW I. Concept and Classes of Persons

Kristine Bongcaron
Patricia Tobias Concept of Persons—
Subject Editor  Personality is the quality derived from
being a person; it is an attribute of
ACADEMICS COMMITTEE persons.
Kristine Bongcaron
Michelle Dy Characteristics—
Patrich Leccio 1. It is not a being, but a quality of certain
Editors-in-Chief
beings.
PRINTING & DISTRIBUTION 1. It is not a physical element, but a juridical
Kae Guerrero
concept.
2. It is not an object of contract, or of
DESIGN & LAYOUT possession, and cannot be impaired by
Pat Hernandez agreement.
Viktor Fontanilla 2. It is a matter of public interest.
Rusell Aragones
Romualdo Menzon Jr. Article 37, Civil Code. Juridical capacity, which is
Rania Joya the fitness to be the subject of legal relations, is
inherent in every natural person and is lost only
LECTURES COMMITTEE through death. Capacity to act, which is the power
Michelle Arias to do acts with legal effect, is acquired and may be
Camille Maranan lost.
Angela Sandalo
Heads Kinds of Juridical Capacity—
Katz Manzano Mary Rose Beley 1. Juridical Capacity:
Sam Nuñez Krizel Malabanan  aka as Legal Capacity/Personality =
Arianne Cerezo Marcrese Banaag Fitness of man to be the subject of legal
Volunteers
relations
MOCK BAR COMMITTEE  It refers to the aptitude for the holding
and enjoyment of rights.
Lilibeth Perez  It is inherent in every natural person
and is lost only through death. This
BAR CANDIDATES WELFARE
attaches to man by the mere fact of his
Dahlia Salamat being a man.
2. Capacity to Act:
LOGISTICS
 It refers to the power to do acts with
Charisse Mendoza legal effect.
 It is conditional and variable. It is
SECRETARIAT COMMITTEE acquired and may be lost. It requires
Jill Hernandez both intelligence and will.
Head
Loraine Mendoza Faye Celso Note: Juridical capacity can exist even
Mary Mendoza Joie Bajo without capacity to act; the existence of
Members

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the latter implies that of the former. The Complete respiration = test/sign of
capacity or incapacity of persons depends independent life
upon the law. Both juridical capacity and 4
capacity to act are not rights but qualities of Note: For a fetus that had an intra-uterine life

persons; hence, they cannot be renounced. of less than seven months, it is necessary
that it lives for at least 24 hours, for it to be
A. Natural Persons (asked in ’99 bar exam) considered born.
General Rule: Birth determines personality (Art Article 42, Civil Code. Civil personality is
40). Death extinguishes civil personality (Art extinguished by death.
42).
The effect of death upon the rights and obligations of
the deceased is determined by law, by contract and
Exception: a “conceived child shall be by will.
considered born for all purposes that are
FAVORABLE to it, provided it be born
People v. Tirol, (1981)—
later” (Art 40, 2nd clause) with the following
Criminal liability ends with death BUT civil
circumstances:
liability may be charged against the estate.
a. From the time it is completely delivered
from the mother's womb. Article 43, Civil Code. If there is a doubt, as
b. But if the fetus had an intra-uterine life between two or more persons who are called to
of less than seven months, it should succeed each other, as to which of them died first,
survive for at least 24 hours after its whoever alleges the death of one prior to the other,
complete delivery. (Art. 41, CC) shall prove the same; in the absence of proof, it is
presumed that they died at the same time and there
Article 40, Civil Code. Birth determines personality; shall be no transmission of rights from one to the
but the conceived child shall be considered born for other.
all purposes that are favorable to it, provided it be
born later with the conditions specified in the Note: Article 43 provides a statutory
following article. presumption when there is doubt on the
order of death between persons who are
Birth = complete removal of the fetus from the called to succeed each other (only).
mother’s womb; before birth, a fetus is merely
part of the mother’s internal organs Joaquin v. Navarro, (1948)—
The statutory presumption of Article 43 was not
Personality of Conceived Child—
applied due to the presence of a credible
1. Limited = only for purposes FAVORABLE to
eyewitness as to who died first.
it
2. Conditional = it depends upon the child Presumption in the Rules of Court (Rule 123,
being born alive later sec. 69, par. ii)—
Period of Conception = the first 120 days of Age Presumed Survivor
the 300 days preceding the birth of the child 1. Both under 15 Older
2. Both above 60 Younger
3. One under 15, the One under 15
A conceived child can acquire rights while still in
other above 60
the mother’s womb. It can inherit by will or by 4. Both over 15 and Male
intestacy. under 60; different
sexes
Geluz v CA, (1961)— 5. Both over 15 and Older
An aborted fetus had conditional personality but under 60; same sex
never acquired legal rights/civil personality 6. One under 15 or One between 15 and 60
because it was not alive at the time of delivery over 60, the other
from the mother’s womb. No damages can be between those ages
claimed in behalf of the unborn child.
Note: Applicable only to two or more persons
Article 41, Civil Code For civil purposes, the fetus who perish in the same calamity, and it is
is considered born if it is alive at the time it is not shown who died first, and there are no
completely delivered from the mother's womb. particular circumstances from which it can
However, if the fetus had an intra-uterine life of less
be inferred.
than seven months, it is not deemed born if it dies
within twenty-four hours after its complete delivery
from the maternal womb.

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B. Juridical Persons Article 39, Civil Code. The following circumstances,

among others, modify or limit capacity to act: age,
Juridical Persons (Art 44, Civil Code)— insanity, imbecility, the state of being a deaf-mute, 5
1. The State and its Political subdivisions; penalty, prodigality, family relations, alienage,

absence, insolvency and trusteeship. The
2. Other Corporations, Institutions and Entities consequences of these circumstances are governed
for public interest or purpose, created by in this Code, other codes, the Rules of Court, and in
law; special laws.
3. Corporations, Partnerships, and
Associations for private interest or purpose Capacity to act is not limited on account of religious
to which the law grants a juridical belief or political opinion.
personality.
A married woman, twenty-one years of age or over,
Governing Laws (Art 45, Civil Code)— is qualified for all acts of civil life, except in cases
specified by law.
Juridical Person Governed by
1. State Constitution (defines its
organization and limits its General Rule: Incapacitated persons are not
rights vis-à-vis citizens) exempt from certain obligations arising from
2. Political Charter creating them his acts or property relations.
Subdivision ________________
3. Public Charter creating them
Corporation 1. Minority
4. Private Corporation Code, Articles of
Corporation Incorporation and By-Laws RA 6809 (1989): An act lowering the age of
5. Partnerships Stipulations of the parties and majority from twenty-one to eighteen years.
suppletorily by the general
provisions on partnership of
the Civil Code Effects on Contracts—
a. they cannot give consent to a contract
Rules— [Art 1327 (1), CC]
1. Juridical persons may acquire and b. a contract where one of the parties is a
possess property of all kinds, incur minor is voidable [Art 1390(1),CC]
obligations, and bring civil or criminal c. a contract is unenforceable when both
actions (Art. 46, CC) of the parties are minors (incapable of
2. Upon dissolution of corporations or giving consent) [Art 1403(3), CC]
institutions and other entities for public d. minority cannot be asserted by the
interest, their property and assets shall be other party in an action for annulment
disposed of in pursuance of the law or (Art 1397, CC)
charter creating them. (Art. 47, CC) e. not obliged to make restitution except
insofar as he has been benefited (Art
1399, CC)
f. minor has no right to demand the
II. Capacity to Act and Restrictions thing/price voluntarily returned by him
Thereon (Art 1426, CC)
g. minor has no right to recover
A. Presumption of Capacity voluntarily paid sum or delivered thing, if
consumed in good faith (Art 1427, CC)
Standard Oil Co. v. Arenas, (1911)— h. must pay reasonable amount for
Capacity to act is presumed until the contrary is necessaries delivered to him (Art 1489,
proven, and that it be the reason for the specific CC)
act attributed. Proof of restriction: habituality,
presence at the time, no other cause
B. Restrictions Mercado v. Espiritu, (1918)—

Article 38, Civil Code. Minority, insanity or Estoppel works against minors who
imbecility, the state of being a deaf-mute, prodigality misrepresent their ages in a contract
and civil interdiction are mere restrictions on and are compelled to comply with its
capacity to act, and do not exempt the incapacitated terms.
person from certain obligations, as when the latter
arise from his acts or from property relations, such
Bambalan v. Maramba, (1928)—
as easements.

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When a minor made no active read personally by him or communicated

misrepresentation as to his minority and to him by 2 persons (Art 807, CC)
such minority is known to the other c. cannot be a witness to the execution of 6
party, the contract is voidable (Art 1403) a will (Art 820, CC)

as to the minor.
4. Prodigality
Braganza v. Villa Abrille, (1959)— Martinez v. Martinez, (1902)—
Minors are obliged to make restitution A spendthrift or a prodigal is “a person,
insofar as they have been benefited (Art who, by excessive drinking, gambling,
1399) idleness or debauchery of any kind shall
so spend, waste or lessen his estate as
Effects on Marriage— to expose himself or his family to want
a. May not yet contract marriage (Art 5, or suffering.” The acts of prodigality
FC) must show a morbid state of mind.
b. marriages, where one of the parties is
below 18, even with the consent of Note: It is not the circumstance of
parents/guardians, are VOID (Art 35, prodigality, but the fact of being under
FC) guardianship that restricts capacity to
act.
2. Insanity
5. Civil Interdiction
Insanity includes many forms of mental a. It is an accessory penalty imposed
disease, either inherited or acquired. A upon persons who are sentenced to a
person may not be insane but only mentally principal penalty not lower than
deficient (idiocy, imbecility, feeble- reclusion temporal (article 41, Revised
mindedness). Penal Code).
b. offender is deprived of rights of
Effect on Contracts— parental authority, or guardianship, of
a. incapacity to give consent to a marital authority, of the right to manage
contract [Art 1327(2), CC] his property and of the right to dispose
b. contracts entered into during lucid of such (Art 34, RPC)
intervals are valid (Art. 1328, CC) c. for the validity of marriage settlements,
c. restitution of benefits (Art 1399, CC) the participation of the guardian shall
be indispensible (Art 123, CC)
Effect on Crimes—
a. General rule: EXEMPTED from criminal 6. Family Relations
liability a. justifying circumstance if acted in
b. Exception: acted during lucid interval defense of person/rights of spouse,
ascendants, descendants,
Effect on Marriage— brothers/sisters, and other relatives up
th
a. may be annulled if either party was of to the 4 civil degree [Art 11(2), RPC]
unsound mind unless the such party b. mitigating circumstance if acted in the
after coming to reason, freely cohabited immediate vindication of a grave
with the other [Art 45(2), FC] offense/felony committed against his
b. action for annulment of marriage must spouse, ascendants or relatives of the
be filed by the sane spouse who had no same civil degree [Art 12(5), RPC]
knowledge of the other’s insanity; or by c. incestuous and void marriages:
any relative/guardian of the insane; or  between ascendants and
by the insane spouse during a lucid descendants of any degree;
interval or after regaining sanity [Art  between brothers and sisters,
47(2), FC] whether full or half-blood. (Art 37,
FC)
d. donations/grants of gratuitous
3. State of Being Deaf-Mute advantage between spouses during
a. cannot give consent to a contract if the marriage shall be VOID, except
he/she also does not know how to moderate gifts during family occasions
write [Art 1327(2), CC] (Art 87, FC)
b. can make a valid WILL, provided: the
contents of the same have either been

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e. descendants cannot be compelled to

testify in a criminal case, against his
parents and grandparents 7
 UNLESS: crime was against the

descendant OR by one parent
against the other (Art 215, FC)
f. spouses cannot sell property to each
other, except:
 absolute separation is agreed upon
in the marriage settlements
 judicial separation of property (Art
1490, CC)
7. Absence
Article 390, Civil Code. After an absence of seven

years, it being unknown whether or not the
absentee still lives, he shall be presumed dead for
all purposes, except for those of succession.
The absentee shall not be presumed dead for the

purpose of opening his succession till after an
absence of ten years. If he disappeared after the
age of seventy-five years, an absence of five years
shall be sufficient in order that his succession may
be opened. (n)
Art. 391, Civil Code. The following shall be

presumed dead for all purposes, including the
division of the estate among the heirs:
1. A person on board a vessel lost during a
sea voyage, or an aeroplane which is
missing, who has not been heard of for
four years since the loss of the vessel or
aeroplane;
2. A person in the armed forces who has
taken part in war, and has been missing
for four years;
3. A person who has been in danger of
death under other circumstances and his
existence has not been known for four
years.
Article 124, FC—

a. administration and enjoyment of the
CPG shall belong to both spouses
jointly
b. in case of disagreement, husband’s
decision shall prevail, subject to
recourse to the court by the wife for
proper remedy
c. if one spouse is incapacitated/unable
to administer, sole powers of
administration may be assumed by the
other spouse.
d. General Rule: This power does not
include disposition/encumbrance.
 Exception: judicial authority or
written consent of other spouse

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CIVIL LAW REVIEWER Chapter II. CITIZENSHIP AND DOMICILE
B. Kinds of Domicile
Chapter II. Citizenship and Domicile
(asked in ’75, ’81, ’87, ’93, ’05 and ’08 bar 1. Domicile of Origin 8
exams)  Domicile of parents of a person at the
PERSONS AND FAMILY RELATIONS

time he was born.
I. WHO ARE FILIPINO CITIZENS
II. DOMICILE
2. Domicile of Choice
A. REQUISITES OF DOMICILE
B. KINDS OF DOMICILE
 Domicile chosen by a person, changing
his domicile of origin.
 A 3rd requisite is necessary – intention
I. Who are Filipinos not to return to one’s domicile as his
permanent place.
1. Those who are citizens of the Philippines at
the time of the adoption of the 1987 3. Domicile by Operation of Law (i.e., Article
Constitution; 69, domicile of minor)
2. Those whose fathers or mothers are  Romualdez-Marcos vs. Comelec
citizens of the Philippines; (1995)— A married woman does not
3. Those born before January 17, 1973, of lose her domicile to her husband.
Filipino mothers, who elect Philippine
citizenship upon reaching the age of
majority; and
4. Those who are naturalized in accordance
with law. (Art IV, §1, 1987 Philippine
Constitution)
Note: These have superseded the rules on

citizenship enumerated in the Civil Code.
Citizen = owes allegiance to the state and is

entitled to its protection
II. Domicile
For Natural Persons—

the place of their habitual residence (Art.
50, CC).
For Natural Persons—

the place where their legal representation
is established, or where they exercise their
primary functions, unless there is a law or
other provision that fixes the domicile (Art.
51, CC).
Domicile vs. Residence—

While domicile is permanent (there is intent
to remain), residence is temporary and may
be changed anytime (there is no necessary
intent to remain).
________________
A. Requisites of Domicile (Callejo v. Vera)
1. Physical Presence
2. Intent to remain permanently (animus
manendi)

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CIVIL LAW REVIEWER Chapter III. MARRIAGE
quasi-delict and is governed by the provisions of this

Chapter III. Marriage Chapter.
9
I. DEFINITION AND NATURE OF MARRIAGE  EXPENSES or other incidents that

II. REQUISITES OF MARRIAGE directly arose from the contract to marry
A. ESSENTIAL REQUISITES can be claimed IF the breach of promise
B. FORMAL REQUISITES was done in a manner considered as
III. MARRIAGES SOLEMNIZED ABROAD
IV. PRESUMPTION OF MARRIAGE
contrary to morals, good customs or
public policy (cost of wedding
preparations). (Wassmer v Velez)
I. Definition and Nature of Marriage  LOST WAGES arising from voluntary
(asked in ’91, ’92 and ’99 bar exams) dismissal in anticipation of marriage can
be sued for. (Tanjanco v CA)
Definition of Marriage (Art 1 FC)—  EXPENSES made for the renovation of
an anticipated conjugal home can be
What SPECIAL CONTRACT of permanent sued for. (Piccininni v. Hajus-US
union Jurisprudence)
Who Between a MAN and a WOMAN
How Entered into in accordance with LAW
Purpose Establishment of CONJUGAL and
FAMILY life II. Requisites of Marriage
Significance FOUNDATION of the family and an (asked in ’76, ’82, ’89, ’90, ’99, ’02, ’04, ’07,
INVIOLABLE SOCIAL INSTITUTION and ‘09 bar exams)
whose nature, consequences and
incidents are governed by law and not A. Essential Requisites of Marriage
subject to stipulations EXCEPT that
marriage settlements may fix the
property relations during the marriage Essential Requisites [LC]—
within the limits provided by this code. 1. Legal Capacity of the contracting parties,
who must be a male and a female
Breach of Promise to Marry — 2. Consent (of the parties) freely given in the
(asked in ’09 bar exam) presence of a solemnizing officer. (Art. 2
1. As a general rule breach of promise to FC)
marry is not an actionable wrong
(Tanjanco v CA, Wassmer v Velez) and Legal Capacity—
cannot give rise to liability for damages Male or female>=18, not under any
in line with the principle of freedom of impediments mentioned in Art 37
consent in marriage (Art 2(2) Family (incestuous marriage) & Art 38 (marriage
Code). (Reyes) against public policy), may contract
2. However damages may be claimed based marriage. (Art 5)
on the principles laid down in Art 19-21 &
2176 of the CC Must be Male and Female—
1. Jones v Hallahan, (1973): Application for
Art. 19, Civil Code. Every person must, in the marriage license was denied since marriage
exercise of his rights and in the performance of his is defined by law as a contract entered into
duties, act with justice, give everyone his due, and between a man and a woman.
observe honesty and good faith. 2. Silverio v Republic, (2007): Changing of
gender in one’s birth certificate was denied;
Art. 20, Civil Code. Every person who, contrary to otherwise, it would result in confusion and
law, wilfully or negligently causes damage to another would allow marriage between persons of
shall indemnify the latter for the same.
the same sex which is in defiance of the law,
Art. 21, Civil Code. Any person who wilfully causes as marriage is a union between a man and a
loss or injury to another in a manner that is contrary to woman.
morals, good customs or public policy shall
compensate the latter for the damage. Note: The best source for citing the requirement
(of male/female) is still statutory, as provided
Art. 2176, Civil Code. Whoever by act or omission explicitly in the Family Code.
causes damage to another, there being fault or
negligence, is obliged to pay for the damage done. Consent Freely Given—
Such fault or negligence, if there is no pre-existing
People v Santiago, (51 Phil 68): A marriage
contractual relation between the parties, is called a
entered into by a person whose real intent is

lOMoARcPSD|3291925
to avoid prosecution for rape is void for total d. A Military commander of a unit may
lack of consent. The accused did not intend solemnize marriages in articulo mortis
to be married. He merely used such between persons within the zone of 10
marriage to escape criminal liability. military operation. (Art 7,32 FC)

e. Consul-general, consul or vice-consul
Absence and Defect of Essential may solemnize marriages between
Requisites— Filipino citizens abroad. (Art 7,10 FC)
f. Municipal and City Mayors (LGC sec
Absence Defect 444 and 455)
Effect VOID VOIDABLE 2. Marriage is void when solemnized by any
Illustration - marriage - consent of person not legally authorized to perform
entered into by either party marriages unless either or both parties
a person <18 was obtained believed in good faith that the solemnizing
(Art 35 (1)) through fraud,
officer had legal authority to do so. (Art 35
force,
- marriage intimidation or (2))
entered into by undue 3. Absence & Irregularity of Authority of a
persons of the influence solemnizing officer
same sex (Art 45 (3)
(Jones v (4)FC) Absence Irregularity
Hallahan)
Effect VOID No effect on
validity but party
- marriage
responsible will
contracted
be liable.
through mistake
Illustration - Marriage is - lack of valid
of one
void when notification of
contracting
solemnized by a both parties
party as to the
priest not duly desiring a
identity of the
authorized by his ceremony in a
other
Church to remote place
(Art 35 (5))
solemnize was held to be
marriage. only a mere
B. Formal Requisites of Marriage (Art 7 FC) IRREGULARITY
(Navarro vs.
Formal Requisites [AVC]— Domagtoy 1996)
1. Authority of Solemnizing Officer
2. A Valid marriage License Marriage License—
3. Marriage Ceremony (Art 4 FC) 1. Marriages Exempt from marriage license
requirement (AREC)
Authority of Solemnizing Officer— a. Marriage in Articulo mortis (Art. 27, FC)
1. Who may solemnize marriage: (JC- b. Marriage in Remote and inaccessible
SPAMM) places (Art. 28, FC)
a. Incumbent member of the Judiciary c. Marriages by Muslims and Ethnic
within his jurisdiction. (Art 7 FC) cultural minorities provided they are
b. Priest, Rabbi, Imam or Minister of any solemnized in accordance with their
Church or Religious Sect. Must be: customs, rites or practices. (Art. 33, FC)
 Duly authorized by his church or d. Marriage by parties who have Cohabited
religious sect for at least 5 years without any legal
 Registered with the civil registrar impediment. (Art. 34, FC, Ninal v
general Badayog (2000))
 Acting within the limits of the written
authority granted to him by his 2. Absence & Irregularity of Marriage License
church or religious sect.
 At least one of the contracting Absence Irregularity
parties belongs to the solemnizing Effect VOID No effect on
officer’s church or religious sect. (Art validity but party
responsible will be
7 FC)
liable.
c. Ship Captain or Airplane Chief may Illustration - Issuance - mere
solemnize a marriage in articulo mortis of the Civil IRREGULARITIES
between passengers or crew members Registrar of a in the marriage
(Art 7,31 FC) CERTIFICATE license, such as a

lOMoARcPSD|3291925
Absence Irregularity a. Appearance of contracting parties

DUE SEARCH typographical personally before the solemnizing officer
AND error, do not affect (Art 3 FC) 11
INABILITY TO the validity of a b. Personal declaration that they take each

FIND the marriage. other as husband and wife. (Art 3 FC)
application of a (Alcantara v
marriage Alcantara)
c. Presence of at least two witnesses of
license means legal age. (Art 3 FC)
its absence, d. The declaration shall be contained in the
thus rendering Marriage certificate. (Art 6 FC)
the e. Marriage certificate shall be Signed by
marriage the contracting parties and their
VOID. witnesses and attested by the
(Republic v solemnizing officer. (Art. 6, FC)
CA)
- Before a
Note: In a marriage in articulo mortis, when
marriage can one or both parties are unable to sign
be solemnized, the marriage certificate, it shall be
a valid sufficient for one of the witnesses to
marriage write the name of said party, which shall
license MUST be attested by the solemnizing officer.
FIRST (Art 6, par. 2)
BE
PRESENTED, 3. Places where marriage SHALL be
otherwise the
marriage is
solemnized: (CCO)
VOID. (Moreno a. Chambers of Judge or an open court
v Bernabe) b. Church, Chapel or Temple
c. Office of the consul general, consul or
3. Things to do at the local civil registrar: vice consul (Art. 8, FC)
a. File an application of marriage license at Exception:
the proper local civil registrar. (Art. 11, a. Marriages in articulo mortis
FC) b. Marriages in remote places
b. Present birth or baptismal certificate. c. Written request from both parties.
(Art. 12, FC)
c. If aged 18-21 years, present parental
consent. (Art. 14, FC) III. Marriages Solemnized Abroad
d. If aged 21-25, present parental advice.
(Art. 15, FC) General Rule—
e. If aged 18-25, present certificate of Marriages solemnized abroad in accordance
marriage counseling from your priest. with the laws in force in that country shall be
(PD 965) valid in the Philippines. (Art 26 FC)
f. Pay the required fees. (Art 19, FC)
g. If foreigner, present certificate of legal Exceptions—
capacity issued by diplomat or consular 1. Marriage between persons below 18 years
officials. (Art. 21, FC) old – Art. 35(1)
2. Bigamous or polygamous marriage – Art.
Marriage Ceremony— 35(4)
1. No prescribed form or religious rite for the 3. Mistake in identity – Art. 35 (5)
solemnization of marriage is required. (Art. 4. Marriages void under Article 53 – Art. 35 (6)
6, FC 5. Psychological incapacity – Art. 36
 The couple's written agreement where 6. Incestuous marriages – Art. 37
they declare themselves as husband 7. Marriage void for reasons of public policy –
and wife, signed by them before a judge Art. 38
and two capable witnesses, even though
it was independently made by them, still
counts as a valid ceremony. (Martinez v
Tan, 12 Phil 731)
IV. Presumption of Marriage
2. Minimum requirements prescribed by law: 1. Presumption in favor of a valid marriage (

(AP-PMS) Art 220 CC)

lOMoARcPSD|3291925
2. The presumption that a man and a woman

deporting themselves as husband and wife
have entered into a lawful contract of 12
marriage is satisfactory if uncontradicted.

(Sec. 3 (aa), Rule 131, ROC)
3. In marriages of exceptional character, the
existence of the marriage is presumed, even
in the TOTAL ABSENCE of a marriage
license. (Vda. De Jacob v CA, 1999)
4. if a marriage certificate is missing, and all
means HAVE NOT YET BEEN
EXHAUSTED to find it, then the marriage is
presumed to exist (Sevilla v Cardenas,
2006)
5. Absence of a marriage certificate is not
proof of absence of marriage. To prove the
fact of marriage, the following would
constitute competent evidence: (1) the
testimony of witnesses to matrimony; (2) the
couple’s public cohabitation; and (3) birth
and baptismal certificates of children born
during the union. (Trinidad v CA, 1998)

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IV. VOID MARRIAGES
clinically identified, (b) alleged in the

Chapter IV. Void Marriages complaint, (c) sufficiently proven by
the experts, (d) clearly explained in 13
I. GROUNDS the decision.

II. PERIOD TO FILE ACTION OR RAISE
DEFENSE
Note: The new Supreme Court Rule on
III. EFFECTS OF NULLITY
Declaration of absolute nullity of Void
Marriages and annulment of Voidable
I. Grounds Marriages (A.M. No. 02-11-10-SC,
effective March 15, 2003 and Barcelona
Art. 4(1): The absence of any essential or vs. CA (2003) provide that expert
formal requisites shall render the marriage void opinion is not a condition sine qua non
ab initio, except as stated in Article 35 (a). for proof of psychological incapacity.
The root cause may be proven by the
VOID AB INITIO MARRIAGES: totality of evidence in actual trial.
c. The incapacity must be proven to be

A. Article 35 (Void from the Beginning) existing at “the time of the
1. Contracted by any party below eighteen celebration” of the marriage.
years of age even with the consent of d. Such incapacity must also be shown to
parents or guardians be medically or clinically permanent
2. Solemnized by any person not legally or incurable.
authorized to perform marriages unless e. Such illness must be grave enough to
such marriages were contracted with either bring about the disability of the party to
or both parties believing in good faith that assume the essential obligations of
the solemnizing officer had the legal marriage.
authority to do so. f. The essential marital obligations must
Note: One’s belief in good faith that the be those embraced by Articles 68 up to
solemnizing officer has the required 71 of the Family Code as regards the
authority is a mistake of fact, and not of law. husband and wife as well as Articles
3. Solemnized without license, except in 220, 221, and 225 of the same Code in
marriages under exceptional circumstances regard to parents and their children.
4. Bigamous or polygamous marriages not g. Interpretations given by the National
falling under Article 41 (Art. 41: subsequent Appellate Matrimonial Tribunal of the
marriage by present spouse who obtained a Catholic Church in the Philippines,
declaration of presumptive death for absent while not controlling or decisive, should
spouse prior to the subsequent marriage) be given great respect by our courts.
5. There is a mistake as to the identity of the h. The trial court must order the
other contracting party prosecuting attorney or fiscal and the
6. Subsequent marriages that are void Solicitor General to appear as
under Article 53 (Art 53: a subsequent counsel for the state. No decision shall
marriage is null and void if prior to its be handed down unless the Solicitor
celebration, it has not recorded in the civil General issues a certification.
registry and registries of property the items Note: The new Supreme Court Rule on
in Art. 52) Declaration of absolute nullity of Void
Marriages and annulment of Voidable
Marriages (A.M. No. 02-11-10-SC, effective
B. Article 36 (Psychological Incapacity) March 15, 2003 provide that the appearance
 Contracted by any party who, at the time of of the prosecuting attorney or fiscal and the
the celebration, was psychologically Solicitor-General is no longer mandatory.
incapacitated to comply with the essential
marital obligations of marriage, even if such  Santos v. Bedia-Santos, (1995):
incapacity becomes manifest only after its Laid down 3 characteristics for determining
solemnization psychological incapacity: gravity,
 Republic v. Molina, (1997) antecedent, and incurability.
a. The burden of proof to show the nullity  Tsoi v. CA, (1997)
of the marriage belongs to the plaintiff. Refusal of husband to have sex was
b. The root cause of the psychological interpreted to be PI. “A man who can but
incapacity must be: (a) medically or won’t is PI”

lOMoARcPSD|3291925
 Marcos vs. Marcos (2000) E. Article 41 (Bigamous Marriages,

Psychological incapacity maybe established Absentee Spouse and Presumptive
by the totality of the evidence presented. Death) 14
Personal medical examination could be

dispensed with. General Rule—
 Republic vs. San Jose (2007) Marriage contracted by any person during
There is no requirement that the respondent the subsistence of a previous marriage is
be medically examined first. void.
 Antonio v. Reyes, (2006):
“pathological liar”, Molina guidelines met. Exceptions: The following subsequent marriage
of the present spouse is valid:
1. Subsequent marriage due to ordinary
C. Article 37 (Incestuous) absence where:
1. Between ascendants and descendants of a. the prior spouse had been absent for 4
consecutive years;
any degree, legitimate or illegitimate
2. Between brothers and sisters, whether of b. the spouse present had a well-founded
the full or half blood, legitimate or illegitimate belief that absent spouse is dead; and
c. judicial declaration of presumptive
death was secured (no prejudice to the
D. Article 38 (Against Public Policy) effect of the reappearance of the absent
spouse).
1. Between collateral blood relatives,
2. Subsequent marriage due to extraordinary
legitimate or illegitimate, up to the fourth civil
absence where:
degree.
a. the prior spouse had been missing for 2
2. Between step-parents and step-children.
consecutive years;
Note: Stepbrothers and stepsisters can
b. there is danger of death attendant to
marry because marriages between them are
the disappearance;
not among those enumerated in article 38.
c. the spouse present had a well-founded
3. Between parents-in-law and children-in-
belief that the missing person is dead;
law.
and
4. Between adopting parent and adopted
d. judicial declaration of presumptive
child.
death was secured (no prejudice to the
5. Between the surviving spouse of the
effect of the reappearance of the absent
adopting parent and the adopted child.
spouse).
6. Between the surviving spouse of the
adopted child and the adopter.
Note:
7. Between an adopted child and a
 Institution of a summary proceeding is not
legitimate child of the adopter.
sufficient. There must also be a summary
8. Between adopted children of the same
judgment. (BALANE)
adopter.
 Only the deserted spouse can file or institute
9. Between parties where one, with the
an action a summary proceeding for the
intention to marry the other, killed that
declaration of presumptive death of the
other person's spouse, or his or her own
absentee (Bienvenido case)
spouse.
 There must have been diligent efforts on the
part of the deserted spouse to locate the
Relationships outside of Art. 37 and 38 which
absent spouse. These diligent efforts
are not impediments to marriage: brother-in-law
correspond to the requirement of the law for
with sister-in-law, stepbrother with stepsister,
a well-founded belief.
guardian with ward, adopted with illegitimate
child of the adopter, adopted son of the husband
Exception to the exception—
with adopted daughter of the wife, parties who
When both parties to the subsequent acted in
have been convicted of adultery.
bad faith (Art. 44)
Connected Provisions—
Art. 390, Civil Code. After an absence of 7 years, it

being unknown whether or not the absentee still lives,
he shall be presumed dead for all purposes, except
for those of succession.
The absentee shall not be presumed dead for the

lOMoARcPSD|3291925
purpose of opening his succession till after an  Terre v. Terre, (1998)

absence of 10 years. If he disappeared after the age A lawyer was disbarred for grossly immoral
of 75 years, an absence of 5 years shall be sufficient conduct by convincing the other party that a 15
in order that his succession may be opened. judicial declaration of nullity was not

required and subsequently contracting
Art. 391, Civil Code. The following shall be presumed
dead for all purposes, including the division of the another marriage while his first marriage
estate among the heirs: (SAAD) was subsisting.
1. A person on board a vessel lost during a sea
voyage, or an aeroplane which is missing, who  Atienza v. Brillantes, (243 SCRA 32)
has not been heard of for four years since the A judge’s first marriage contracted in 1965
loss of the vessel or aeroplane; was void for not having a marriage license,
2. A person in the armed forces who has taken part but the requirement for a judicial declaration
in war, and has been missing for four years; of nullity in Art. 40 applies for his
3. A person who has been in danger of death
subsequent marriage contracted in 1991.
under other circumstances and his existence has
not been known for four years.
 Apiag v. Cantero, (1997)
Note: Where both marriages were contracted prior
 Although seven years is required for the to the effectivity of the FC, the requirement
presumption of death of an absentee in the of Art. 40 does not apply to the second
Civil Code, Art. 41 of the Family Code marriage where a right is already vested and
makes an exception for the purpose of which the FC cannot have retroactive effect.
remarriage by limiting such requirement to
four years.  Judicial declaration of nullity of a marriage is
 Art. 41 also limits the required four years in now an absolute requirement:
Art. 391 for absence under exceptional a. For the validity of any subsequent
circumstances to only two years. marriage
b. For the subsequent marriage not to be
considered as bigamous
F. Article 44 (Present spouse who
contracts marriage in bad faith)  Domingo v. CA, (1993)
The judicial declaration of nullity can be
Both spouses of a subsequent marriage
invoked for purposes other than remarriage.
acted in bad faith in case where a previous
Article 40 was interpreted as being a
spouse was an absentee
requirement for purposes of remarriage but
not limited for that purpose. Separation of
G. Article 53 (Non-Recording) property is also a valid purpose for filing for
a judicial declaration of nullity.
Subsequent marriage of spouses where the
requirements of recording under Art. 52 for  Borja-Manzano v. Sanchez, (2001)
void marriages shall not have been complied Legal separation does not severe marital
with bonds. Cohabitation under Art. 34 merely
exempts the spouses from obtaining a
H. Article 40 (Judicial Declaration of marriage license, and is not met when there
Nullity) exists legal impediment to marry during the
period of cohabitation.
Art. 40, Civil Code. The absolute nullity of a previous
marriage may be invoked for purposes of remarriage
on the basis solely of a final judgment declaring
such previous marriage void. II. Period to File Action or Raise
Defense
Under the Civil Code (superseded by the Family
Code), there was no need for a judicial Art. 39. The action or defense for the declaration
declaration of nullity of a previous marriage for a of absolute nullity of a marriage shall not
subsequent marriage to be valid (People v. prescribe. (as amended by R.A. 8533)
Mendoza). However, Article 40 of the FC now
requires a final judgment to declare a  The phrase "However, in case of marriage
previous marriage void for a subsequent celebrated before the effectivity of this Code
marriage to be valid. (Terre v. Terre, Atienza v. and falling under Article 36, such action or
Brillantes) defense shall prescribe in ten years after

lOMoARcPSD|3291925
this Code shall taken effect" has been Effects of Other Void Marriages—
deleted by Republic Act No. 8533 [Approved 1. The effects provided for by paragraphs (2),
February 23, 1998]). (3), (4) and (5) of Article 43 and by Article 16
 It must be noted that under the new 44 shall also apply in the proper cases to

Supreme Court Rule on Declaration of marriages which are declared ab initio or
Absolute Nullity of Void Marriages and annulled by final judgment under Articles 40
Annulment of Voidable Marriages (A.M. No. and 45 [Art. 50(1)]
02-11-10-SC, effective March 15, 2003, 2. Final judgment in such cases shall provide
nullity of the marriage can still be collaterally for the liquidation, partition, and
attacked. distribution of the:
 As to the parties allowed to file the action – a. properties of the spouses
Enrico v. Heirs of Sps. Medinaceli (2007): b. custody and support of the common
Only an aggrieved or injured spouse may file children
a petition for annulment of voidable c. delivery of their presumptive legitimes
marriages or declaration of absolute nullity  unless such matters had been
of void marriages. Such petition cannot be adjudicated in previous judicial
filed by compulsory or intestate heirs of the proceedings [Art. 50(2)]
spouses or by the State. The Committee is  all creditors (of the spouses/property
of the belief that they do not have a legal regime) shall be notified of the
right to file the petition. Compulsory or proceedings for liquidation [Art. 50(2 and
intestate heirs have only inchoate rights 3)]
prior to the death of their predecessor, and,
hence, can only question the validity of the 3. In the partition, the conjugal dwelling and
marriage of the spouses upon the death of a lot shall be adjudicated to the spouse with
spouse in a proceeding for the settlement of whom majority of the common children
the estate of the deceased spouse filed in remain (Art. 102 and 129) [Art. 50(4)]
the regular courts. (also reiterated in Carlos 4. Presumptive legitimes, computed as of the
vs. Sandoval, 2008) date of the final judgment, shall be
delivered in cash, property or sound
securities
III. Effects of Nullity a. unless the parties, by mutual agreement
judicially approved, had already
provided for such [Art. 51(1)]
Effects of Termination of Bigamous Marriage
b. the children/guardian/trustee may ask
(Art. 43 and 44)—
for the enforcement of the judgment [Art.
1. Children – conceived prior to its termination
51(2)]
considered legitimate
c. the delivery of the presumptive legitimes
2. Property Regime – dissolved and liquidated
shall not prejudice the ultimate
(party in bad faith shall forfeit his/her share
successional rights, but the value of the
in favor of the common children or if there
properties already received shall be
are none, children of the guilty spouse by a
considered as advances on their
previous marriage, and in case there are
legitime [Art. 51(3)]
none, to the innocent spouse)
5. Either of the former spouses may marry
3. Donation propter nuptias – remains valid,
again AFTER compliance with the
(but if the donee contracted marriage in bad
requirements of Article 52, otherwise, the
faith, donations will be revoked)
subsequent marriage is void (Art. 53)
4. Insurance benefits – innocent spouse may
revoke designation of guilty party as
Requirement (Art. 52)— recording in the
beneficiary, even if such designation is
appropriate civil registry AND registries
stipulated as irrevocable
of property:
5. Succession Rights – Party in bad faith
a. judgment of annulment/absolute nullity
disqualified to inherit from innocent spouse,
of marriage
whether testate or intestate
b. partition and distribution of the
6. Donations - If both parties of subsequent
properties of the spouses
marriage acted in bad faith, any donations
c. delivery of the children’s presumptive
and testamentary dispositions made by one
legitimes
party to the other by reason of marriage will
otherwise, these shall not affect third
be revoked (Art. 44)
persons

lOMoARcPSD|3291925
6. Generally, children born or conceived within

void marriages are illegitimate.
 Exception: 17
 children conceived or born before

the judgment under Article 36 has
become final and executory
 children conceived or born of
subsequent marriages under Article
53
 Niñal v. Badayog, (2000)
Children of first marriage assailed the
validity of the second marriage
contracted by their father without a
marriage license and after the latter’s
death.
Void marriages can be attacked

collaterally and do not prescribe
 De Castro v. Assidao-de Castro, (2008)

Validity of marriage was attacked
collaterally in an action for support for
determining legitimacy of the child.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. VOIDABLE MARRIAGES
consummating the marriage

Chapter V. Voidable Marriages (impotence; this is different from
sterility). 18
(asked in ’75, ’76, ’78, ’83, ’86, ’90, ’91, ’93, ’94,

’95, ’96, ’97, ’02, ’03, ’04, ’07, and ‘09 bar S 6. Either party has a serious and
exams) incurable sexually-transmissible
disease, even if not concealed.*
I. GROUNDS FOR ANNULMENT
A. EXPLANATION TOLENTINO
B. WHO MAY FILE, PRESCRIPTION,
Action to Annul: action in rem, concerns status
RATIFICATION
C. MARRIAGES NOT SUBJECT TO
of parties; res is relation bet parties or marriage
RATIFICATION tie; jurisdiction depends on nationality or
II. WHEN ONE SPOUSE IS ABSENT domicile not the place of celebration
A. REQUIREMENTS FOR SUBSEQUENT
MARRIAGE TO BE VALID WHEN PRIOR
SPOUSE IS ABSENT A. Grounds for Annulment explained:
B. EFFECT OF REAPPEARANCE OF 1. Lack of parental consent
ABSENT SPOUSE
a. 18<=x<21 w/o parental consent
III. EFFECTS OF PENDING ACTION/DECREE
IV. VOIDABLE VS. VOID
b. Ratified upon free cohabitation upon
V. VOIDABLE VS. LEGAL SEPARATION reaching 21.
VI. JURISDICTION c. TOLENTINO: parents whose consents
were wanting may ratify before 21; this
right can be waived; however, the Code
I. Grounds for Annulment (Art. 45, FC)
Commission believes that no such
ratification can be made by the parent.
Marriage may be annulled on the ff grounds 2. Insanity
existing at time of marriage: P I F F I S a. mental incapacity or insanity is a vice of
consent; insanity (1) of varying degrees,
P 1. One of the parties is 18 or above but (2) curable being an illness, capable of
below 21, and there is no parental ratification or convalidation, (3) has lucid
consent. intervals, (4) ground only for annulment
in many countries
I 2. Either party was of unsound mind b. can be ratified by cohabitation after
(insanity). insane is cured
c. mere mental weakness is not a ground
F 3. The consent of either party was for annulment, but if found grave enough
obtained through fraud (different from may amount to psychological incapacity.
mistake in identity): d. intoxication, somnambulism where one
a. through non-disclosure of a had no mental capacity to give consent
previous conviction of a crime is equivalent to insanity
involving moral turpitude; e. must EXIST AT THE TIME of the
b. through concealment by the wife celebration of the marriage.
of the fact at the time of the f. law presumes SANITY, burden of proof
marriage that she was pregnant on party alleging insanity
by another man; 3. Fraud
c. through concealment of a a. only those enumerated in Art. 46 FC
sexually-transmitted disease,  non-disclosure of previous
regardless of its nature, existing CONVICTION by final judgment of a
at the time of marriage; crime involving MORAL
d. through concealment of drug TURPITUDE
addiction, habitual alcoholism or  concealment by wife at the time of
homosexuality/lesbianism. marriage, that she was pregnant by
(Art.46, FC) another man
 concealment of STD regardless of
F 4. The consent of either party was nature existing at time of marriage
obtained through force, intimidation,  concealment of drug addiction,
or undue influence. habitual alcoholism, homosexuality,
lesbianism existing at time of
I 5. Either party is physically incapable of marriage

lOMoARcPSD|3291925
b. No other misrepresentation or deceit of mere looking, whether or not she was

CHARACTER, HEALTH, RANK, pregnant at the time of the marriage.
FORTUNE OR CHASTITY shall 19
constitute FRAUD  Almelor v. RTC, (2008)

c. TOLENTINO: fraud must relate to fact It is the concealment of homosexuality,
material to the marital relation; and not homosexuality per se, that
PRINCIPLE OF ENUMERATION; no vitiates the consent of the innocent
other cases of fraud can be ground for party. Such concealment presupposes
annulment; INCLUSIO UNIUS EST bad faith and intent to defraud the other
EXCLUSIO ALTERIUS party in giving consent to the marriage.
d. Conviction of Crime: requisites are
 moral turpitude  Corpuz v. Ochoterena, (2004)
 conviction In a legal separation or annulment case,
e. Concealment of Pregnancy the prosecuting attorney must first rule
 fraud against very essence of out collusion as a condition sine qua non
marriage; importance of procreation for further proceedings. A certification
of children; an assault to the by the prosecutor that he was present
integrity of the union by introducing during the hearing and even cross-
ALIEN BLOOD examined the plaintiff does not suffice to
 If husband knew of pregnancy, the comply with the mandatory requirement.
marriage cannot be annulled on the
ground of concealment. Three (3)  STD: Art. 45 vs. Art. 46
months after the celebration of the
marriage, a baby was born. Art. 45 STD Art. 46 STD
Annulment was refused because of Ground for annulment The STD is a type of fraud
advanced stage of pregnancy, which is a ground for
which must be patent to the annulment
husband (Buccat v Mangonon) Does not have to be Must be concealed
concealed
 If there was coitus before marriage
Must be serious and Need not be serious nor
& wife was pregnant at time of incurable incurable
marriage although he may not be The STD itself is the It is the concealment that
the father, marriage cannot be ground for annulment gives rise to the annulment
annulled because man knows wife
is unchaste. Principle: one cannot  Effect of Cure to Fraud in Art. 46:
go to court with unclean hands. Recovery or rehabilitation from STD,
Prof. Balane: An isolated case and drug addiction, and habitual alcoholism
is not doctrinal. will NOT BAR ACTION for annulment;
f. Marriage cannot be annulled on ground defect: not the disease, but the FRAUD
that wife concealed the fact that she had which VITIATED CONSENT
been lewd & corrupt and had illegitimate
child (Shrady v Logan) 4. Force, intimidation, undue influence
g. Maybe ratified upon cohabitation after a. FORCE must be one as to prevent party
knowledge of fraud from acting as a free agent; will
destroyed by fear/compulsion
 Buccat v Buccat, 72 Phil. 19 b. INTIMIDATION must be one as to
Wife gave birth 3 months after marriage compel the party by reasonable/well-
celebration. Husband filed for grounded fear/evil imminent upon
annulment. Ground: concealment of person/properties
non-virginity. Court held that it was c. DEGREE OF INTIMIDATION: age, sex,
unbelievable that wife could have condition of person borne in mind
concealed 6 months of pregnancy. d. A threat to enforce claim thru competent
authority, lawful or not, does not vitiate
 Aquino v Delizo, 109 Phil. 21 consent
The Supreme Court granted annulment e. VIOLENCE or INTIMIDATION annul
because the wife concealed the fact that obligation even if by third person (Art.
she was 4 months pregnant during the 1336, CC)
time of the marriage. It argued that since f. UNDUE INFLUENCE when improper
Delizo was “naturally plump,” Aquino advantage of his power over the will of
could hardly be expected to know, by

lOMoARcPSD|3291925
another, depriving freedom of choice. impotency, she is presumed potent; to

(Art. 1337, CC) order her to undergo physical exam
 EXAMPLE: confidentiality, family does not infringe constitutional rights 20
relations, suffering from mental against self-incriminating (Jimenez v

weakness, in financial distress Canizares)
g. Threat to FILE A CASE OF immorality m. Villanueva vs. CA (2006): Absence of
on bar candidate where he does not cohabitation is not a ground for
marry a girl who he has impregnated annulment.
does not vitiate consent (Ruiz v Atienza) n. NOTE: if wife continues to refuse to
h. Threat or intimidation as no to act as undergo physical exam, she can be held
FREE AGENT; threatened of armed for CONTEMPT & ordered to be
demonstrations by brother is confined in jail until she does so
ANNULLABLE (Tiongco v Matig-a) o. RELATIVE IMPOTENCY: may now be
i. Man rapes a girl, marries her & has no invoked because there are cases where
intention to live with the girl; marriage is one is impotent with respect to his
annullable (People v Santiago) spouse but not with other men or
j. Committee added “undue influence”, women.
maybe compelled to enter out of p. EXAMPLE: penile erection to other
REVERENTIAL FEAR e.g., fear of women possible; unusually large penis
causing distress to parents, can fit with abnormally large vagina
grandparents, etc
6. Sexually-transmissible disease serious and
5. Impotency incurable
a. should exist at the time of celebration a. should exist at the time of the marriage
marriage b. should be found serious
b. should continue to the time of trying c. should appear to be incurable
annulment case d. Should be unknown to other party
c. should appear incurable e. reason: danger to the health of spouse
d. should be unknown to the other party & offspring/s
e. physical condition: sexual intercourse f. same as incurable impotency
with a person of the opposite sex is g. Ratification or Convalidation of Voidable
impossible, not mere sterility Marriages: by cohabitation or
f. only potent spouse can file action prescription cannot be ratified or
(principle: one cannot come to court with convalidated:
unclean hands)  prior subsisting marriage; would
g. must exist at time of marriage, must be result in anomalous relationship
continuous, must be incurable; thus if  vitiated by impotency remains as
removable by operation, NOT long as afflicted
ANNULLABLE (Sarao v Guevarra, CA,  vitiated by affliction of STD remains
40 O.G. 155 Supp. 263) as long as afflicted
h. both spouses impotent, marriage cannot  Affliction of STD is unknown to the
be annulled because neither spouse is other spouse (BALANE)
aggrieved  The other spouse must also be free
i. impotency due to old age, marriage from a similar STD. (BALANE)
cannot be annulled h. 2 & 3 prescribe w/in 5 yrs by Art. 47(5)
j. POTENCY PRESUMED; party who
alleges impotency has burden of proof
(Jimenez v Canizares)
k. Although potency is presumed, there is
a doctrine in England called TRIENNIAL
COHABITATION that if wife remains
virgin after 3 yrs, husband presumed
impotent & has burden to prove
otherwise (Tompkins v Tompkins)
l. REFUSAL of wife to be examined DOES
NOT PRESUME impotency because
Filipino women are inherently shy &
bashful; TC must order physical
examination because w/o proof of

lOMoARcPSD|3291925
B. Who may File, Prescription, Ratification

Ground Who can file Prescription Ratification 21
(Art. 45) (Art. 47) (Art. 47) (Art. 45)

Lack of parental consent 1. Underage party 1. 5 years after Free cohabitation after
attaining 21. attaining age of 21.
2. Parent or guardian 2. Before child reaches
21.
Insanity 1. Sane spouse with 1. Any time before the Free cohabitation of
no knowledge of the death of either party insane party after
other’s insanity insane party comes to
2. Legal guardian of reason
insane party
3. Insane party 2. During lucid interval
or after regaining
sanity, and before
death
Fraud Injured party Five years after Free cohabitation after
(defrauded party) discovery of fraud having full knowledge
of fraud
Force, intimidation, undue Injured party Five years after Free cohabitation after
influence disappearance of force the force has ceased
or intimidation or disappeared
Impotence Healthy party Five years after Deemed ratified when
marriage action prescribes
STD Healthy party Five years after Deemed ratified when
marriage action prescribes
C. Marriages Not Subject to B. Effect of Reappearance of Absent

Ratification/Convalidation Spouse:
1. One spouse is incurably impotent (Art. 47 – General Rule—
prescription: 5 years) The subsequent marriage remains valid.
2. One spouse has an incurable STD (Art. 47 – Exception—
prescription: 5 years) It is automatically terminated by the
3. Sane spouse marries an insane spouse w/o recording of the affidavit of reappearance of
knowledge of insanity the absent spouse.
4. Prior subsisting marriage Exception to the Exception—
If there is a judgment annulling the previous
marriage or declaring it void ab initio. (Art.
II. Marriage When One Spouse Absent 42, FC)
TOLENTINO
A. Requirements for Subsequent Marriage Status of Subsequent Marriage: generally
to be Valid When Prior Spouse is considered bigamous & void EXCEPT par. 2 of
Absent (Art. 41, FC): this article; good faith w/o falling under par. 2 will
render marriage VOID
1. The prior spouse had been absent for 4
consecutive years, or 2 years in cases When Voidable: must act in GOOD FAITH and
under Art. 391 CC. 1. absent spouse not heard from 7 consecutive
2. The spouse present has a well-founded yrs
belief that the absent spouse was already 2. although absent for less than 7 yrs,
dead. generally considered dead
3. The spouse present must institute a 3. presumed to be dead after 4 yrs when
summary proceeding for the declaration occurrence of death in A391
of presumptive death of the absentee,
without prejudice to the effect of Judicial Declaration Unnecessary: purpose of
reappearance of the absent spouse. validity of marriage, missing spouse need not be
__________ judicially declared an absentee, enough required

lOMoARcPSD|3291925
period elapsed from time the absentee was last expeditions, landslides, volcanic
heard not from judicial declaration. After 7 eruptions)
years, presumptive death arises w/o need for 22
3. 2-year period counted from event of death
judicial declaration

presumed
4. Republic v. Bermudez-Lorino, (2005)
Prior Voidable Marriage: UNLESS final The RTC rendered a decision declaring the
judgment or dissolved by death, subsequent presumptive death of respondent’s absent
marriage NULL & VOID spouse based on Art. 41, FC. The Republic
appealed the decision to the CA. Applying
Status of Subs Marriage: during subsisting Art. 247 FC, the SC ruled that the CA did not
marriage, remarriage is BIGAMOUS & VOID. have jurisdiction over the appeal because
EXCEPT: summary proceedings are immediately final
1. absentee four years or for two under special and executory, and therefore unappealable.
circumstances
2. absence gives rise to presumption of death Difference between Absence in the Civil
w/c is required to be declared in SUMMARY Code and Family Code—
PROCEEDING to enable to remarry
Period of Absence: Family Code Civil Code

1. GENERALLY, under CC, 7 years required As to 4 years under Absent for at least 7
for declaration of presumptive death For period normal years; 4 years
REMARRIAGE, reduced to 4 years by FC circumstances; 2 under special
2. EXCEPT in cases, CC 4 years & FC 2 years years under special circumstances
IF circumstances
a. ON BOARD VESSEL lost at sea
voyage, airplane As to In order to remarry, Declaration of
b. ARMED FORCES in war remarriage summary presumptive death
proceeding is is not necessary
c. DANGER OF DEATH under other necessary
circumstances, existence not known
As to who Can be instituted by The spouses
Good Faith: PERIOD of absence for can the present spouse, themselves
PRESUMPTIVE DEATH is MANDATORY thus institute any interested
cannot be shortened by good faith and if be the action party, and the
done so will be VOID subsequent spouse
As to Subsequent Upon
Burden of Proof: two successive marriages, effect on marriage is reappearance,
nd
presumption on validity of 2 marriage and subsequen automatically judicial proceeding
ND
burden on party ATTACKING VALIDITY OF 2 t marriage terminated by the is necessary to
MARR. PRESUMPTION in favor of recording of an declare marriage
INNOCENCE prevails over PRESUMPTION of affidavit of null and void
ST reappearance of the
CONTINUANCE OF LIFE OF 1 SPOUSE &
MARITAL RELATIONS. absent spouse
As to Well founded belief Generally believed

Meaning of “Absent” spouse ground that the absent to be dead
1. Absent for 4 years having well-founded spouse is dead
belief of death
2. period of 4 years reduced to 2 years in

danger of death in A391 CC where: III. Effects of Pending Actions/Decree
a. on board vessel lost at sea or airplane (Art. 49, FC)
(includes all kinds of watercraft &
aircraft) 1. The court shall provide for the support of
b. armed forces in war the spouses,
(all military operations involving armed 2. The custody and support of the common
fighting; does not apply to nurses, children, giving paramount consideration to
doctors, reporters or cameramen) their moral and material welfare, their choice
c. danger of death of parent with whom they wish to remain.
(includes earthquakes, fires, 3. The court shall also provide for visitation
explosions, dangerous rights of other parent.

lOMoARcPSD|3291925
Art. 363 (CC): No child under 7 years shall be Art. 48 (FC): To prevent collusion between the
separated from the mother unless there is a parties, fabrication or suppression of evidence,
compelling reason to do so. the prosecuting attorney or fiscal shall appear on 23
behalf of the State.

IV. Voidable v. Void Marriage
Voidable Marriage Void Marriage

Nature VALID until annulled by court INEXISTENT from the beginning
Convalidation CAN be convalidated by CANNOT be convalidated
prescription or free cohabitation
Effect on property ACP exists unless another No Community Property, only Co-
system is instituted through ownership
marriage settlement
Legitimacy of children Children are LEGITIMATE if General rule: Children are
conceived before decree of ILLEGITIMATE (Art. 165, FC)
annulment Exception: In void marriages by
reason of psychological incapacity
(Art. 36) or non-partition of
properties in a previous marriage
(Art. 53), children are considered
LEGITIMATE
How to impugn Can only be attacked May be attacked DIRECTLY or
DIRECTLY (there must be COLLATERALLY, except for
Annulment Decree) purpose of remarriage (there must
be Judicial Declaration of Nullity)
Effect of death of parties Can no longer be impugned May still be impugned after death of
after death of parties parties
V. Voidable v. Legal Separation
Voidable Marriage Legal Separation

ground for annulment causes after the
at the time of marriage celebration of marriage
terminates marital does not terminate
bond marital bond
once final, cannot be marital relations can
set aside to restore resume upon
marital relation reconciliation
VI. Jurisdiction
Tamano v. Ortiz, (1998)—

PD No. 1083 (Code of Muslim Personal
Laws of the Philippines) does not provide for
a situation where the parties were married
both in civil and Muslim rites. Consequently,
the shari'a courts are not vested with original
and exclusive jurisdiction when it comes to
marriages celebrated under both civil and
Muslim laws. Hence, the Regional Trial
Courts have jurisdiction over such cases.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VI. LEGAL SEPARATION, DIVORCE, and DE FACTO SEPARATION
legal separation, whether

Chapter VI. Legal Separation, Divorce concealed or not.
and De Facto Separation c. Drug addiction or habitual 24
alcoholism may be supervening.

I. GROUNDS FOR LEGAL SEPARATION
II. DEFENSES H 6. Lesbianism or homosexuality of
III. WHEN TO FILE/TRY ACTIONS respondent.
A. PRESCRIPTION  Same as rules on drug addiction
B. RECONCILIATION PERIOD
C. ATTEMPTS ON RECONCILIATION B 7. Contracting by respondent of a
D. CONFESSION
subsequent bigamous marriage,
E. COLLUSION
IV. EFFECTS OF FILING PETITION FOR LEGAL whether in the Philippines of abroad.
SEPARATION
V. EFFECTS OF DECREE FOR LEGAL I 8. Sexual infidelity or perversion.
SEPARATION a. No conviction is required.
VI. RECONCILIATION
A. HOW DONE L 9. Attempt on the life of petitioner by
B. EFFECTS OF RECONCILIATION respondent.
VII. DIVORCE a. There is no need for criminal
VIII. DE FACTO SEPARATION conviction. Only a preponderance
of evidence is required.
I. Grounds for Legal Separation
A 10. Abandonment of petitioner by
(asked in ’75, ’76, ’79, ’80, ’82, ’89, ’94, ’96, ’97,
respondent without justifiable cause for
’02, ’03, ’06, and ’07 bar exams)
more than one year.
(Art. 55, FC) [V A P I D H B I L A]

Note: The grounds for legal separation are  People v. Zapata and Bondoc, 88 Phil 688
exclusive. (1951)—
Adultery is not a continuing crime, but is
V 1. Repeated physical violence or consummated and exhausted at the moment
grossly abusive conduct directed of carnal union. As such, every sexual act is
against petitioner, a common child, or a a ground for legal separation.
child of the petitioner.
 Gandioco v Peñaranda, 155 SCRA 725
A 2. Physical violence or moral pressure (1989)—
to compel petitioner to change religious In sexual infidelity as a ground for legal
or political affiliation. separation, there is no need for prior
conviction for concubinage, because legal
P 3. Attempt of respondent to corrupt or separation only requires a preponderance of
induce petitioner, a common child, or evidence, as opposed to proof beyond
child of petitioner, to engage in reasonable doubt required in concubinage.
prostitution or connivance in such
corruption or inducement.  Lapuz Sy v. Eufemio, 43 SCRA 177
(1972)—
I 4. Final judgment sentencing The death of one party in a legal separation
respondent to imprisonment of more case abates the action. This is because the
than 6 years, even if pardoned death of either spouse automatically
(executive pardon, not pardon from dissolves the marriage. An action for legal
offended party). separation is also purely personal between
the spouses.
D 5. Drug addiction or habitual alcoholism
of respondent.  Dela Cruz. v. Dela Cruz 22 SCRA 333—
a. When it existed from the time of Abandonment is not mere physical
celebration, and concealed from estrangement but also financial and moral
petitioner, can be a ground for desertion. There must be an absolute
annulment of marriage. cessation of marital relations, duties, and
b. When it occurred only after the rights with the intention of perpetual
marriage, it is only a ground for separation.

lOMoARcPSD|3291925
II. Defenses Note: Art. 60 par. 1 applies only if the judgment

was based solely on the stipulation of facts.
Thus, if other grounds were used, Art. 60 25
Grounds for denying legal separation (Art.
par. 1 is not applicable. (BALANE)
56, FC) [4CMPRD]—

1. Condonation by aggrieved party
2. Consent by aggrieved party to the E. Collusion
commission of the offense
3. Connivance between parties in the The court shall assign the prosecuting attorney
commission of the offense or fiscal to make sure that there is no collusion
4. Mutual guilt or Recrimination between between the parties, and that evidence is not
spouses in the commission of any ground fabricated or suppressed (Art. 60, par. 2, FC)
for legal separation
5. Collusion between parties to obtain decree
of legal separation IV. Effects of Filing Petition for Legal
6. Prescription of action for legal separation Separation (LAC)
(Art. 57: 5 years from occurrence of the
cause of action) 1. The spouses are entitled to Live separately,
7. Reconciliation of parties during pendency but the marital bond shall not be severed.
of action (Art. 66 par.1) (Art. 61, par. 1. FC).
8. Death of either party during pendency of
action (Lapuz-Sy v Eufemio, supra) 2. Administration of Community or Conjugal
Property – If there is no written agreement
 Bugayong v. Ginez, 100 Phil. 616 (1956) — between the parties, the court shall
Continued cohabitation despite full designate one of them or a third person to
knowledge of the spouse’s infidelity administer the ACP or CPG. (Art. 61, par. 2,
constitutes implied condonation. FC)
3. Custody of children – The court shall give

III. When to File/Try Actions custody of children to one of them, if there is
no written agreement between the spouses.
A. Prescription It shall also provide for visitation rights of the
Action prescribes after five years from the other spouse. (Art. 62, cf. Art. 49. FC)
occurrence of the cause (Art. 57, FC)
B. Reconciliation Period V. Effects of Decree for Legal

Separation (LACIDIMS)
Action cannot be tried before six months have
elapsed from the filing of the petition (Art. 58. 1. The spouses can Live separately (Art. 63.
FC) FC)
2. The ACP or CPG shall be dissolved and
Note: without prejudice to judicial determination liquidated, and the share of the guilty
of custody of children, alimony, and support spouse shall be forfeited in favor the
pendente lite common children, previous children, or
innocent spouse, in that order (Art. 63. cf.
C. Attempts on Reconciliation Art. 43, par. 2).
3. Custody of the minor children shall be
Action cannot be tried unless the court has awarded to the innocent spouse (Art. 63.
attempted to reconcile the spouses, and FC, cf. Art 213)
determined that despite such efforts, 4. Guilty spouse shall be disqualified from
reconciliation is highly improbable (Art. 59, FC) Inheriting from innocent spouse by intestate
succession. The provisions in favor of the
D. Confession guilty party in the will of the innocent spouse
shall also be revoked by operation of law.
No decree of legal separation shall be based (Art. 63, FC)
upon a stipulation of facts or a confession of 5. Donations in favor of the guilty spouse may
judgment (Art. 60, par. 1. FC) be revoked (Art. 64. FC)
6. Innocent spouse may also revoke
designation of guilty spouse as beneficiary

lOMoARcPSD|3291925
in an Insurance policy, even if such  Effect: Filipinos living abroad could not
stipulations are irrevocable (Art. 64. FC, cf. obtain a valid divorce even in countries
PD 612, sec. 11). where divorce is legally permissible. 26
7. Obligation for Mutual support ceases, but

the court may order the guilty spouse to Art. 26(2), Civil Code. Where a marriage between a
support the innocent spouse. (Art. 198, FC) Filipino citizen and a foreigner is validly celebrated
8. The wife shall continue to use the Surname and a divorce is thereafter validly obtained abroad by
of the husband even after the decree for the alien spouse capacitating him or her to remarry,
the Filipino spouse shall have capacity to remarry
legal separation. (Art. 372, CC)
under Philippines law.
 Valid Foreign Divorce

VI. Reconciliation a. valid marriage between a Filipino
citizen and a foreigner
b. divorce is validly obtained by the alien
A. How Done spouse
Should the spouses reconcile, they should file a c. alien spouse becomes capacitated to
corresponding joint manifestation under oath remarry
of such reconciliation. (Art. 65, FC) Result: the Filipino spouse shall likewise
have the capacity to remarry under
Philippine law
B. Effects of Reconciliation
1. Proceedings for legal separation shall be  Van Dorn v. Romillo, 139 SCRA 139 (1985)
terminated at whatever stage. (Art. 66, FC) Before the effectivity of the FC, the SC
2. If there is a final decree of legal separation, applied Article 15 of the CC, from the
it shall be set aside. (Art. 66, FC) foreigner’s perspective, to decree the validity
3. The separation of property and forfeiture of of a divorce with respect to the Filipino
share of guilty spouse shall subsist, unless spouse to prevent the unjust result to the
the spouses agree to revive their former Filipino spouse as the alien spouse is
property regime or to institute another already capacitated to remarry.
property regime. ( Art. 66 cf. Art. 67, FC)
4. Joint custody of children is restored.  Quita v. Dandan, 300 SCRA 406 (1998)
5. The right to intestate succession by guilty The time of obtaining foreign citizenship is
spouse from innocent spouse is restored. necessary to determine the validity of
The right to testamentary succession divorce obtained by the spouse who applied
depends on the will of the innocent spouse. for foreign citizenship. It must be
ascertained that when that spouse obtained
the divorce, he/she was no longer bound by
Philippine domestic law
VII. Divorce
(asked in ’87, ’90, ’96, ’97, ’99, ’02, ’06 bar  Llorente v. CA, 345 SCRA 592 (2000)
exams) nd
A 2 marriage obtained by a Filipino who is
already a US citizen at the time of the
General Rule— divorce and the remarriage makes the 2
nd
Divorce is not allowed in the Philippines and marriage completely valid.

even for Filipinos abroad.
 Garcia v. Recio, 366 SCRA 437 (2001)
Exception— Philippine courts do not take cognizance of
Foreign and Muslim divorces. foreign laws. The foreign law granting
divorce as well as the nature of the divorce
Foreign Divorces (asked in ’09 bar exam)— granted (w/n it was absolute) must be
proven.
Art. 15, Civil Code. Laws relating to family rights and
duties, or to the status, condition and legal capacity of  Republic vs. Orbecido, (2005)
the persons are binding upon citizens of the
The period of reckoning to determine
Philippines, even though living abroad.
citizenship for the purpose of the application
of Art.26 par.2 is the time of securing a
 The Nationality Theory of Jurisdiction /
divorce.
Nationality Principle applies to personal
rights.

lOMoARcPSD|3291925
Muslim Divorces— 2. Judicial authorization may be obtained when the

Presidential Decree 1083 (Code of Muslim consent of one spouse is required by law for any
Personal Laws) transaction of the other (subject to Art. 239), and 27

3. The separate property of both spouses shall be
 7 forms of Muslim divorces (Art. 45) (TF-
solidarily liable for the support of the family in the
KILTZ) absence of sufficient community property. The spouse
a. talaq- repudiation of the wife by the present shall be given judicial authority to administer
husband or encumber any specific separate property of the
b. ila- vow of continence by the husband absent spouse and use the fruits thereof to satisfy the
c. zihar- injurious assimilation of the wife latter’s share.
by the husband
d. li’an- acts of imprecation Art. 127. Same rules as above, but for Conjugal
e. khul’- redemption by the wife Partnership of Gains
f. tafwid- exercise by the wife of the Procedural Rules for Art. 100/127, par. 2:
delegated right to repudiate 1. In the case of Art 100/127 par. 2, a verified petition
g. faskh- judicial decree may be filed in court, attaching the proposed deed or
description of the transaction and the reason why the
 Grounds for faskh (Art. 52) other spouse’s consent has not been secured. (Art.
a. The marriage bond shall be severed and 239)
the spouses may contract another
marriage 2. Court shall issue a notice for the initial conference
b. The spouses shall lose their mutual and shall notify the other spouse to show cause why
petition should not be granted. (Art. 242)
rights of inheritance
c. The custody of children shall be 3. If the petition is not resolved at the initial
determined in accordance with Article 78 conference, then the court shall decide in a summary
of the code hearing. (Art. 246)
d. The wife shall be entitled to recover from
the husband her whole dower in case 4. Its decision shall be final and executory. (Art. 247)
the talaq has been affected after the
consummation of the marriage, or one-  Perez v. CA, 255 SCRA 661 (1996)
half thereof if effected before its Applicability of the tender years presumption
consummation of Art. 213 (No child under 7 years of age
e. The husband shall not be discharged shall be separated from the mother) to de
from his obligation to give support in facto separation, save for compelling
accordance with Article 67 reasons such as neglect, abandonment,
f. The conjugal partnership, if stipulated in unemployment and immorality, habitual
the marriage settlements, shall be drunkenness, drug addiction, maltreatment
dissolved and liquidated. of child, insanity, communicable disease.
 Yasin v. Sharia District Ct, 241 SCRA 606

(1995)
A Muslim divorce dissolves the marital bond
and therefore a woman may use her maiden
name and surname without any special
proceeding in court.
VIII. De Facto Separation
Rules applicable to De Facto Separation—
Art. 100, Family Code. De Facto Separation shall

not affect the regime of absolute community,
except that:
1. The spouse who abandons the conjugal home

without just cause is not entitled to support,

lOMoARcPSD|3291925
consent (Art. 73 [Omission corrected on

Chapter VII. Rights and Obligations Nov. 8, 1968])
Between Husband and Wife 28
(asked in ’75, and ’84 bar exams)

III. Use of Surname
I. OBLIGATION OF SPOUSES
II. RIGHTS OF SPOUSES
III. USE OF SURNAME  Married Women: (Art. 370, CC)
A married woman may use:
I. Obligations of Spouses (Arts. 68-71, a. Her maiden first name and surname and
add her husband's surname, or
FC) b. Her maiden first name and her
Live together (cohabitation – Art. 68) husband's surname or
 Exemption: One spouse living abroad c. Her husband's full name, but prefixing a
or there are valid and compelling word indicating that she is his wife, such
reasons (Art. 69, Par 2) as “Mrs.”
 Exemption to Exemption: Incompatibility
with the solidarity of the family (Art. 69, Yasin v. Shari’a District Court, (1995)—
Par. 2) The woman only has an option and not
Observe mutual love, respect, and fidelity a duty to use the surname of her
Render mutual help and support (Art. 68) husband, as provided for in Art. 370,
Fix the family domicile. CC. Moreover, when her husband dies,
 In case of disagreement, the court shall the woman can revert to her old name
decide. (Art. 69, Par. 1) without need for judicial declaration.
Jointly support the family. (Art. 70)
 From the conjugal property/income of  Widows
the fruits of their separate properties A widow may use the deceased husband’s
 In case of absence/insufficiency, from surname as though he were still living. (Art.
their separate properties (liable in 373, CC)
proportion to their properties)
Manage the household. (Art. 71)  Mistresses
The Supreme Court allowed the mistress to
use her live-in partner’s name, since
II. Rights of Spouses (Arts. 72-73, FC) everyone already knew that she was a
mistress, so as to avoid confusion. (Legamia
 In case the other spouse neglects his or her v. IAC (1984))
duties or commit acts which tend to bring
danger, dishonor or injury to the family, the  Divorcees
aggrieved party may apply the court for The Supreme Court allowed the mistress to
relief. (Art. 72) use her live-in partner’s name, since
 Injury contemplated is physical, moral, everyone already knew that she was a
emotional, or psychological, not mistress, so as to avoid confusion.
financial. (Tolentino v. CA (1988))
 Either spouse may exercise any legitimate

profession, without need for consent of the
other.
 The other spouse may only object on
valid, serious, and moral grounds.
 In case of disagreement, the Court shall
decide whether
o the objection is proper, and
o benefit has accrued to the family
before OR after the objection.
If BEFORE, enforce resulting obligation
against the community property.
obligation against the separate property
of the spouse who has not obtained

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VIII. PROPERTY RELATIONS BETWEEN SPOUSES
settlement applies to all Filipinos, regardless of

Chapter VIII. Property Relations Between the place of the marriage and their residence.
Spouses 29
Exceptions—

I. GENERAL PROVISIONS 1. Where both spouses are aliens
II. DONATIONS BY REASON OF MARRIAGE 2. As to the extrinsic validity of contracts
III. ACP 3. Contrary stipulation
A. IN GENERAL
B. WHAT CONSTITUTES COMMUNITY
PROPERTY
Requirements for Marriage Settlements (Art.
C. CHARGES UPON THE ACP 77, FC) (WiSER)—
D. ADMINISTRATION, OWNERSHIP AND 1. Must be in writing (public or private)
DISPOSITION OF THE ACP 2. Signed by the parties
E. DISSOLUTION OF THE ACP 3. Executed before the celebration of the
F. LIQUIDATION OF ASSETS AND marriage
LIABILITIES 4. Must be registered in local civil registry – to
IV. CPG affect third persons (If not registered, will not
A. WHERE IT APPLIES
prejudice third persons, ACP will apply)
B. HUSBAND AND WIFE PLACE IN
COMMON FUND 5. If party needs parental consent (age 18-21),
C. EXCLUSIVE PROPERTIES OF THE parent/guardian must be a party to the
SPOUSES settlement (Art. 78)
D. WHAT CONSTITUTES THE CPG 6. If party is under civil interdiction or other
E. RULES disability (not including insanity), court
F. CHARGES UPON CPG appointed guardian must be a party (Art. 79)
G. ADMINISTRATION OF THE CPG
H. DISSOLUTION OF THE CPG  General Rule: All modifications to the
I. LIQUIDATION OF ASSETS AND
marriage settlement must be made
LIABILITIES
V. SEPARATION OF PROPERTIES DURING
before the marriage is celebrated. (Art.
MARRIAGE 76)
VI. PROPERTY REGIME OF UNIONS WITHOUT  Exceptions:
MARRIAGE  Legal Separation (Art. 63 (2), FC)
o The property regime is
I. General Provisions dissolved.
 Revival of the former property
(asked in ’76, ’86, ’91, ’92, ’94, ’95, ’96, ’97 and regime upon reconciliation if the
’05 bar exams) spouses agree (Art. 66 (2))
 A spouse may petition the court for:
Order to be followed (Arts. 74, 75, FC)— o Receivership
1. Marriage settlements before marriage – o Judicial separation of property,
spouses can agree to whatever regime they or
want (ACP, CPG, complete separation or o The authority to be the sole
any other property regime to be agreed administrator of the conjugal
upon prior to the celebration of the partnership
marriage).  If the other spouse
2. Family Code – If there are no marriage abandons the other without
settlements, or if the regime agreed upon is just cause or fails to comply
void, the Absolute Community of Property with his or her obligations to
will be followed the family. (Art. 128)
3. Local Customs  Judicial Dissolution (Arts. 135 and
136)
General Rule (Art. 80, FC)—  Furthermore: Marriage settlements are
Property relations between Filipino spouses are considered ACCESSORY to the
governed by Philippine laws, regardless of the marriage
place of marriage and their residence  Stipulations in consideration of
(Nationality Rule- Art 15, NCC). future marriage and donations will
be void if the marriage does NOT
Hence— take place. (Art. 81, FC)
The rule that ACP is the default mode of
property relations absent any marriage

lOMoARcPSD|3291925
II. Donations by Reason of Marriage DONATIONS PROPTER ORDINARY

NUPTIAS DONATIONS
May be made by minors Cannot be made by 30
Requisites of donations propter nuptias: (Art. (Art. 78) minors
82, FC)—

May include future Cannot include future
a) Made before the celebration of marriage. property property
b) Made in consideration of the marriage. If present property is No limit to donation of
c) In favor of one or both spouses. donated and property is present property provided
d) The donor must be one of the betrothed or not absolute community, legitimes are not
any third person limited to 1/5 (Art. 84) impaired
Grounds for revocation - Grounds for revocation -
In Art. 86 in donation laws
Donations excluded—
1. Ordinary wedding gifts given after the
Rules—
celebration of the marriage
1. Before Marriage
2. Donations in favor of future spouses made
General Rule:
before marriage but not in consideration
thereof Future spouses cannot donate to each
3. Donations made in favor of persons other other more than 1/5 of their present
than the spouses even if founded on the property (excess shall be considered
intended marriage void) (Art. 84, FC)
Exception:
Who may donate— If they are governed by ACP
1. Spouses to each other
2. During Marriage
2. Parents of one or both spouses
rd General Rule:
3. 3 persons to either or both spouses
Spouses cannot donate to each other,
directly or indirectly (donations made by
 Moreover, in donations propter nuptias, the
spouses to each other during the
marriage is really a consideration but not in
the sense of giving birth to the obligation. marriage are void) (Art. 87, FC)
Exception:
There can be a valid donation even if the
marriage never took place. However, the Moderate gifts on the occasion of any
absence of marriage is a ground for the family rejoicing.
revocation of the donation. (Solis v. Barroso,
(1928))  Matabuena v Cervantes, (1971)
The donation between common-law
 Donations propter nuptias are without spouses falls within the provision prohibiting
onerous consideration, marriage being donations between spouses during
merely the occasion or motive for the marriage.
donation, not its cause. Being liberalities,
 Harding v. Commercial Union, (1918)
they remain subject to reduction for
inofficiousness upon the donor’s death, if The prohibition on donations can only be
they should infringe the legitime of a forced assailed by persons who bear such relation
heir. (Mateo v. Lagua, (1969)) to the parties or the property itself, that their
rights are being interfered with. Here, the
Rules to Follow in Donation Propter insurance company of the donated car
Nuptias— cannot assail the validity of the donation. In
1. Family Code provisions (Arts. 82-87) addition, the codal exception of “moderate
2. Ordinary Donation provisions (Art. 83, FC; gifts” depends on the income class of the
Title III of Book III of the NCC) spouses and a car could be considered a
“moderate gift” that does not infringe the
3. Provisions on testamentary succession and
prohibition of donation between spouses.
the formalities of wills for donations on future
property (Art. 84, par. 2)
 Sumbad v. CA, (1999)
Distinguished from Ordinary Donations— The donation made by a man to a woman
was held valid because no proof was shown
DONATIONS PROPTER ORDINARY that they were still living in a common-law
NUPTIAS DONATIONS relationship at the time of the donation.
Does not require express Express acceptance
acceptance necessary Donation of Property Subject to
Encumbrances—

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1. Are considered valid. c. When the marriage is dissolved (by

2. In case of foreclosure death of one of the spouses)
a. if property value < obligation, donee d. When the marriage is annulled 31
shall not be liable

b. if property value > obligation, donee Supplementary Rules to Follow—
shall be entitled to the excess (Art. 85, Co-ownership (Art. 90, FC)
FC)
Grounds for Revocation of Donation Propter

B. What Constitutes Community Property
Nuptias (Art. 86, FC) (CAVaLRI)— What it consists—
1. If the marriage is not celebrated or judicially All the property owned by the spouses at the
declared void ab initio, except donations time of the celebration of the marriage or
made in settlements. acquired thereafter. (Art. 91, FC)
2. When the marriage takes place without the
consent of the parents or guardians, as Under the ACP, spouses cannot exclude specific
required by law. properties from the regime.
3. When the marriage is annulled, and the
donee acted in bad faith. What is Excluded (BGM) (Art. 92, FC)—
4. Upon legal separation, if the donee is the 1. Properties acquired by a gratuitous title, i.e.
guilty spouse. donation, inheritance by testate and
5. If there is a resolutory condition, and it is not intestate succession, including the fruits of
complied with. such properties
6. When donee has committed an act of
ingratitude: (Art. 765, CC) (PCS) EXCEPT: When it was expressly provided
a. An offense against person or property of by the donor or testator that the property
donor, or his wife or children under shall form part of the ACP
parental authority.
b. An imputation to the donor of any 2. Properties for personal use
criminal offense, or any act involving
moral turpitude, even if proven, unless EXCEPT: Jewelry - they form part of the
the crime is committed against the ACP
donee, his wife or children under his
authority. 3. Properties acquired before the marriage, for
c. Refusing to support the donor, if he/she those with legitimate descendants with a
is legally required to do so. former marriage (to protect rights of children
by a former marriage)
*The action for filing for revocation of donation
prescribes. Presumption—
All properties acquired during the marriage form
part of the ACP, unless it be proven that they are
III. Absolute Community of Property excluded. (Art. 93, FC)
A. In General
C. Charges Upon the ACP (Art. 94, FC) (4
(Asked in ’98 and ’07 bar exams) debts, 2 taxes, 2 expenses, support,
donation)
When it commences—
At the precise moment of the celebration of the (asked in ’76 bar exam)
marriage (Art. 88, FC). However, if the marriage
is celebrated before the Family Code took effect 1. Support
(1988), the default property regime is the  Spouses
Conjugal Partnership of Gains (CPG).  Even if not living together except
when a spouse leaves conjugal
Waiver of Rights (Art. 89, FC)— home without just cause
 General Rule: NOT ALLOWED  Even during pendency of action for
 Exceptions legal separation or annulment of
a. When there is judicial separation of marriage
property  Common children
b. When there is legal separation  Legitimate children of previous marriage

lOMoARcPSD|3291925
 Illegitimate children - follow the presumed that she agreed with the husband’s
provisions on Support and (9) decision. (Art. 96, FC)
2. Debts and Obligations Contracted During 32
Marriage Except—

 Either by both spouses or one of them, When the other spouse is incapacitated, or
with the consent of the other. unable to participate in the administration (e.g.
 In (2) and (3), creditors need not prove when abroad). The powers refer solely to
that the debts benefited the family. administration; disposition or encumbrance
3. Debts Contracted by one Spouse Without requires consent of the absent or incapacitated
Consent of the other spouse.
 ACP liable only to the extent that the
debt benefited the family. Homeowners Savings & Loan Bank v. Dailo
4. Tax, Liens, Repairs on Community Property (2005)—
 Includes both major and minor repairs In the absence of (court) authority or written
5. Taxes and Expenses for Mere preservation consent of the other spouse, any disposition
of Separate properties or encumbrance of the conjugal property
 Applies only to separate properties by shall be void.
either spouse being used by the family,
not those that do not benefit the family. Disposition of Property—
 Expenses limited to minor repairs. Either spouse may, through a will, dispose
6. Expenses for professional, Vocational, or his/her interest in the community property. (Art.
Self-Improvement Course of Spouses 97, FC) However, the will should refer only to
7. Ante-nuptial Debts that Benefited the Family his/her own share in the community property
 If the ante-nuptial debt did not benefit
the family, applicable rule is (9). Donation of Property—
8. Donations by Both Spouses to Common  General Rule
Legitimate Children Donation of one spouse without the consent
 Purpose: professional, vocational of the other is not allowed (Art. 98, FC)
courses or activities for self-  Exceptions
improvement a. Moderate donations to charity due to
9. Ante-Nuptial Debts not under (7), Support of family rejoicing or distress;
Illegitimate Children, Liabilities of Either b. Moderate gifts by each spouse to the
Spouse Arising from Crime or Quasi-Delict other due to family rejoicing. (Note:
 Only ff the debtor-spouse has no What’s moderate depends on the socio-
exclusive property or his or her property economic status of the family)
is insufficient.
 The payments by the ACP are deemed
advances to be deducted from the share
E. Dissolution of ACP
of the guilty spouse upon the liquidation ACP terminates upon (Art. 99, FC)—
of the absolute community. 1. Death of either spouse – follow rules in Art.
10. Expenses of Litigation between Spouses 103
 Except when suit is groundless 2. Legal Separation – follow rules in Arts. 63
and 64
If community property is insufficient except in 3. Annulment or judicial declaration of nullity –
(9), spouses are solidarily liable for the unpaid follow rules in Arts. 50 to 52
balance from their separate properties. 4. Judicial separation of property during
marriage – follow rules in Arts. 134 to 138
Gambling losses shall be borne by the losing
spouse’s separate property, winnings shall Rules on De Facto Separation (ART. 100,
accrue to the community property. (Art. 95, FC) FC)—
De facto separation does not affect the ACP;
EXCEPT that:
D. Administration, Ownership and
1. Spouse who leaves the conjugal home
Disposition of ACP
without just cause shall not be entitled to
Administration of property— support. He/She, however, is still required to
Belongs to both spouses jointly. If they disagree support the other spouse and the family.
the husband’s decision prevails. However, the 2. If consent is necessary for transaction but is
wife has five years from the date of the decision withheld or otherwise unobtainable,
to go to court for recourse. Otherwise, it is

lOMoARcPSD|3291925
authorization may be obtained from the the provisions of law on forfeitures and
court. delivery of presumptive legitimes.
3. Support for family will be taken from the 33
ACP. 6. After covering all community obligations and

4. If ACP is insufficient, spouses shall be obligations of spouses, balance of separate
solidarily liable. properties shall be delivered to respective
5. If it is necessary to administer or encumber spouses or their heirs, and they will also
separate property of spouse who left, divide into two equal shares whatever is left
spouse present may ask for judicial authority of the community assets, without prejudice
to do this. to the provisions of law on forfeitures and
6. If ACP is not enough and one spouse has delivery of presumptive legitimes.
no separate property, spouse who has
property is liable for support, according to Rules in Case of Termination of Marriage by
provisions on support. Death of One of the Spouses (Art. 103, FC)—
1. The community property shall be liquidated
Abandonment (Art. 101, FC)— in the same proceeding for the settlement of
Present spouse may petition the court for: the estate of the deceased spouse.
1. receivership; 2. If no such judicial settlement proceeding is
2. judicial separation of property; or instituted, surviving spouse shall liquidate
3. authority to be the sole administrator of the the community property either judicially or
absolute community, subject to extra-judicially within one year from the
precautionary conditions that the court may death of the deceased spouse.
impose. a. If no liquidation is made within the
Spouse is prima facie considered to have period, any disposition or encumbrance
abandoned the other spouse and the family if: involving community property of the
1. he/she has left for a period of three months, terminated marriage shall be void.
2. he/she has failed to inform his/her b. Non-compliance with liquidation
whereabouts for a period of three months. procedures would mean that a
subsequently contracted marriage will
follow a regime of complete separation
F. Liquidation of Assets and Liabilities of property.
(asked in ’89 and ’99)
Procedure for Liquidation of Community
Process of liquidation of ACP (Art. 102, FC)— Properties of Two Marriages (Art. 104, FC)—
1. Inventory of assets of ACP and of spouses, 1. Determine the capital, fruits, and income of
with market values. each community upon such proof as may be
considered according to the rules of
2. Obligations are paid with community evidence.
property, and separate obligations not 2. In case of doubt as to which community the
charged to ACP paid by respective assets of existing properties belong, they shall be
spouses. divided between two communities in
a. If obligations exceed the assets of the proportion to the capital and duration of
ACP, nothing is divided. Creditors can each.
go after the separate properties of the  Onas v. Javillo, (1934)
spouses, which are solidarily liable for Javillo contracted 2 marriages. SC ruled that
the deficiency. each absolute community should be
considered owner of the parcels of land
3. Delivery of whatever remains in their acquired during its existence. Death
exclusive property. discontinues ACP.
 Vda. De Delizo v. Delizo, (1976
4. Balance, or net remainder is divided equally In case of doubt as to which community the
between the spouses, irrespective of how existing properties belong, the same shall be
much each brought into the community. divided between the different communities in
proportion to the capital and duration of
5. If personal obligations of a spouse exceed each.
his/her separate property, creditor can go
after the share of the spouse on the net
remainder of the ACP, without prejudice to

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IV. Conjugal Partnership of Gains

(Asked in ’79 bar exam) 34

CPG Ordinary partnership
1. Existence Exists with the mere fact of marriage Comes into existence according to
agreement between parties
2. Purpose, Predetermined by legislator, the law Determined by will of partners.
duration, and fixing its conditions.
rules
3. Profits Divided equally between spouses, Depends upon respective capitals of
irrespective of the amount of capital that partners, or upon their agreement
they bring into marriage
4. Equality No equality between spouses in control, General rule is that all partners have
management, and disposition, because equal rights in administration,
the law grants the husband some management, and control of
predominance. partnership.
5. Personality No juridical personality Considered a juridical person
6. Commencement At precise moment of celebration of At the time agreed upon by partners
marriage
7. Regulation By law By agreement of parties; subsidiarily,
by law
8. Purpose Not particularly for profit For profit
9. Causes for Death, legal separation, annulment, Death, insolvency, civil interdiction,
dissolution JDN, judicial separation of property termination of term, express will of any
partner, etc. (Arts 1830-1931)
10. Effect of death Dissolution of partnership Surviving partners may choose to
of a partner continue partnership
11. Division of Only upon dissolution There can be division of profits without
properties dissolution
12. Management Joint; in case of disagreement, the Same as individual partners, except
husband’s decision shall prevail, wife when one or more partners designated
has recourse to courts as managers.
CPG ACP
1. Property acquired Each spouse retains his/her property; Properties become part of community
before marriage. only fruits part of conjugal property property
2. Property acquired Part of conjugal property Becomes community property
during marriage
3. Upon dissolution Separate properties are returned; net Net remainder of ACP divided equally
of marriage profits divided between spouses or between spouses or heirs
heirs
4. Basis Capital and properties of spouses kept Mutual trust and confidence between
separate and distinct from benefits; spouses; fosters oneness of spouses
insurmountable obstacle to
presumption of solidarity
5. Liquidation Exclusive properties will have to be Easier to liquidate because net
identified and returned, and remainder of community properties are
sometimes, identification is difficult. simply divided between spouses or
heirs.
A. Where It Applies (Art. 105) Note: CPG begins at the precise moment the
marriage celebrated (Art 107)
1. For marriages before the implementation of
the Family Code.
2. For marriages after the Family Code, if
agreed to by the parties through a marriage
settlement.

lOMoARcPSD|3291925
B. Husband and Wife Place in Common 4. Share of either spouse in hidden treasure,
Fund (PIPF-EC) (Art. 106) whether as finder or owner of property
where treasure is found 35
1. The proceeds, products, fruits, and income 5. Acquired through occupation such as

of their separate properties; fishing or hunting
2. Everything acquired by them within marriage 6. Livestock existing at dissolution of
through their own efforts; partnership in excess of what is brought by
3. Everything acquired by them by chance either spouse to the marriage
7. Acquired by chance, such as winnings
C. Exclusive Properties of the Spouses from gambling or betting
1. Art 109 (OGRE)  Moral damages arising from a contract paid
from CPG are also awarded to the CPG
Directly (1) Property brought into marriage by (Zulueta v. Pan-Am, 1973).
acquired or each spouse as his/her own
 Loans contracted during the marriage are
originally (2) Property acquired by either spouse
exclusive during the marriage by gratuitous title
conjugal, and so is any property acquired
Property (3) Property acquired by right of therefrom (Mendoza v. Reyes, 1983).
by redemption, by barter, or by exchange
substitution with property belonging to either spouse E. Rules
(4) Property purchased with exclusive
money of either spouse 1. presumption that property is conjugal: all
property acquired during the marriage,
2. Other Separate Property: (CSI) whether made, contracted, or registered in
a. Collection of credits belonging to one the name of one spouse, are presumed
spouse exclusively but the interests conjugal unless the contrary is proven (Art.
shall belong to the CPG (Art 119) 116, FC).
b. Sale of separate property of a spouse  As a condition sine qua non for the
c. Indemnity paid in case of expropriation operation of the presumption in favor of
of separate property or under an the conjugal partnership the party who
insurance policy covering separate invokes the presumption must first prove
property. that the property was acquired during
the marriage. (Acabal v. Acabal, 2005)
 Spouses retain the ownership,  "X married to Y" as it appears in land
possession, administration and titles is not conclusive of the conjugal
enjoyment of their exclusive properties status of the property (Jocson v. CA,
(Art 110, par 1.) 1989).
 Possession by one spouse of the  Exclusive property brought into a
separate property the other spouse does second marriage remains exclusive
not affect ownership property of that spouse under CPG
 Transfer of administration of a spouse’s regime; ACP is not retroactive for
exclusive property to the other spouse marriages celebrated under the Civil
must be made in a public instrument Code (Francisco v. CA, 1998).
recorded in the registry of property of 2. property purchased by installment (paid
the place where the property is located partly with conjugal funds and partly with
(Art 110, FC) but ownership is not exclusive funds) – Art. 118:
conferred to the administrator – spouse  conjugal property if full ownership was
(Rodriguez v. de la Cruz, 1907). vested during the marriage – CPG shall
reimburse the owner-spouse
 exclusive property if full ownership was
D. What Constitutes the CPG (Art. 117)
vested before the marriage – owner-
(asked ’75, ’76, ’78, ‘85’, and ’87 bar exams) spouse shall reimburse the CPG
(OLF-N-HOLC) Exclusive property brought into a second
marriage remains exclusive property under
1. Acquired by Onerous Title during the CPG regime. ACP is not retroactive for
Marriage at Expense of Common Fund marriages celebrated under the Civil Code
2. Acquired through the Labor, Industry, Work, (Castillo v. Pasco, 1964).
Profession of Either or both Spouses
3. Fruits from common property and net Even if the installment is completed after the
fruits of exclusive property of each spouse marriage, the property is exclusive if

lOMoARcPSD|3291925
ownership was vested in one spouse before F. Charges upon CPG

the marriage (Lorenzo v. Nicolas, 1952).
(asked in ’87 and ‘04 bar exams) 36
3. rules on improvement on exclusive

Art. 121, Family Code. The conjugal partnership
property: (Art. 120)
shall be liable for:
 accession - if original value is greater (1) The support of the spouse, their common
than new value (value of land + value of children, and the legitimate children of either
improvements + net change in value), spouse; however, the support of illegitimate
then land remains exclusive property of children shall be governed by the provisions of
the owner-spouse; subject to this Code on Support;*
reimbursement of the cost of (2) All debts and obligations contracted during the
improvement marriage by the designated administrator-
 reverse accession - if original value is spouse for the benefit of the conjugal
partnership of gains, or by both spouses or by
less than new value, then land becomes
one of them with the consent of the other; *
conjugal property; subject to the (3) Debts and obligations contracted by either
reimbursement of the value of the spouse without the consent of the other to the
property of the owner-spouse at the extent that the family may have benefited;
dissolution of the CPG. (4) All taxes, liens, charges, and expenses,
including major or minor repairs upon the
Change of ownership takes place at the time conjugal partnership property; *
when the improvements are made (5) All taxes and expenses for mere preservation
(Calimlim-Canullas v. Fortun, 1984). made during the marriage upon the separate
property of either spouse;
(6) Expenses to enable either spouse to commence
4. If winning ticket is bought by conjugal or complete a professional, vocational, or other
funds, prize is conjugal; otherwise, it is activity for self-improvement; *
exclusive property of spouse who owns the (7) Ante-nuptial debts of either spouse insofar as
ticket. they have redounded to the benefit of the family;
5. Property belonging to one spouse (8) The value of what is donated or promised by
converted into another kind totally different both spouses in favor of their common
in nature from its original form during legitimate children for the exclusive purpose of
marriage becomes conjugal in the absence commencing or completing a professional or
vocational course or other activity for self-
of proof that the expenses of conversion
improvement;* and
were exclusively for the account of the (9) Expenses of litigation between the spouses
original owner-spouse, subject to unless the suit is found to groundless.:
reimbursement of the value of the original
property from the conjugal partnership If the conjugal partnership is insufficient to cover the
6. Money received under the Social Security foregoing liabilities, the spouses shall be solidarily
Act is not conjugal, although the liable for the unpaid balance with their separate
employee-spouse contributes to the SSS properties.
with his salaries, but belongs to the
designated beneficiary under the Social * Same as the rule governing ACP
Security Law.
7. Intellectual property, like copyright or Categorization of CPG Charges—
patent, should, according to Tolentino, citing (Pangalangan notes)
Planiol and Ripert, be considered separate Debts & Taxes & Support
property of the spouse who produces or Obligations Expenses
(2) Debts incurred: (4) (1) support of
invents or discovers it.
(a) by maintenance spouses and
8. Business property (e.g. trade-marks, trade administrator- of CPG common
names, service marks, business goodwill) spouse for the properties children
are merely accessories to some commercial benefit of the
establishment or product, so that if such family;
establishment or product is separate (b) by both
property of one spouse, then the business spouses;
property is separate property; but all benefits (c) by one spouse
or earnings derived from these different with the consent of
the other
kinds of property during the marriage should
(3) by one spouse (5) mere (6) education
belong to the conjugal property (Tolentino, without the consent preservation of spouses,
id., citing the same authority). of of all absolute
the other for the exclusive

lOMoARcPSD|3291925
benefit of the Properties  Homeowners Savings & Loan Bank v.

family Dailo (2005)
(7) antenuptial (9) litigation (8) education In the absence of (court) authority or 37
debts for the expenses, of common written consent of the other spouse,

benefit of the unless the children, only any disposition or encumbrance of
Family suit is for
groundless value of
the conjugal property shall be void.
donation
H. Dissolution of the CPG
 Debts incurred in the exercise of a spouse’s
profession are charged on the CPG (Javier 1. Termination of CPG Art. 126 (cf. Art. 99)
v. Osmeña, 34 PHIL 336). (DLAJ)
 Debts incurred during the marriage are a. Death
presumed to be conjugal and thus are b. Legal Separation
charged on the CPG (Cobb-Perez v. Lantin, c. Annulment or declaration of nullity
23 SCRA 637) d. Judicial separation of property
 Loan contracts signed by both spouses are
conjugal, and they are jointly liable for 2. CPG not affected by de facto Separation Art.
payment, even if only one spouse signs a 128 (cf. Art. 100)
subsequent promissory note (DBP v. Adil, 3. Abandonment and Absence (cf. Art. 101)
161 SCRA 307).  Ayala Investment v. Ching, (1998)
 Debts incurred for the benefit of third The Supreme Court ruled that indirect
persons are not charged on the CPG benefits that might accrue to a husband
(Luzon Surety Co. v. De Garcia, 30 SCRA in signing as a surety or guarantee
111). agreement not in favor of the family but
in favor of his employer corporation are
not benefits that can be considered as
G. Administration of the CPG giving a direct advantage accruing to the
(asked in ’75, ’77, ’02 and ’06 bar exams) family. Hence, the creditors cannot go
against the conjugal partnership
1. The administration and enjoyment of the property of the husband in satisfying the
conjugal partnership shall belong to both obligation subject of the surety
spouses jointly. In case of disagreement, agreement. A contrary view would put in
the husband's decision shall prevail, peril the conjugal partnership by
subject to recourse to the court by the wife allowing it to be given gratuitously as in
for proper remedy, which must be availed of cases of donation of conjugal
within 5 years from the date of the contract partnership property, which is prohibited.
implementing such decision (Art. 124,
par.1). I. Liquidation of Assets and Liabilities
 Sale by the husband of property
belonging to the conjugal partnership (asked in ’87 and ’89 bar exams)
without the consent of the wife when
there is no showing that the latter is 1. Procedure (Art. 129) IAR-DRIN-PC
incapacitated is void ab initio. (Abalos v. a. Prepare an inventory of all properties
Macatangay, Jr, 2004) b. Amounts advanced by CPG in payment
2. Disposition or encumbrance of conjugal of personal debts and obligations shall
property requires: (Art. 124, par. 2) be credited to CPG
a. The consent or approval by both c. Reimburse each spouse for the use of
spouses; OR his/her exclusive funds in the acquisition
b. Judicial authority secured in court of property or for the value of his or her
exclusive property, the ownership of
 Donation of CPG must be with the which has been vested by law in the
consent of the other spouse except conjugal partnership.
moderate donations for charity, on d. Debts and obligations of CPG shall be
occasions of family rejoicing, or family paid out of the conjugal assets,
distress (Art 125, cf. Art 98) otherwise both spouses are solidarily
 Mere awareness of a transaction is NOT liable with their exclusive property.
consent (Jader-Manalo v. Camaisa, e. Remains of the exclusive properties
2002) shall be delivered to respective owner-
spouses

lOMoARcPSD|3291925
f. Indemnify loss or deterioration of V. Separation of Properties During

movables belonging to either spouse, Marriage
even due to fortuitous event, used for 38
the benefit of the family

Art. 134, Family Code. In the absence of an express
g. Net remainder of CPG shall the
declaration in the marriage settlements, the
constitute the profits which shall be separation of property between spouses during the
divided equally between husband and marriage shall not take place except by judicial order.
wife except when: Such judicial separation of property may either be
o A different proportion or division was voluntary or for sufficient cause.
agreed upon in the marriage
settlements  Judicial separation of property may either be
o There has been a voluntary waiver (1) voluntary or (2) for sufficient cause.
or forfeiture of such share as
provided in the FC A. Sufficient Causes and Grounds for
h. Presumptive legitimes delivered to Return to Previous Regime
common children per Art. 51
i. Conjugal dwelling goes to: Sufficient Causes for Grounds for Return to
o Spouse with whom majority of Judicial Separation of Previous Regime
Property (Art. 135) (Art. 141)
common children choose to remain
(CALASA)
(below 7yrs deemed to have chosen (1) Spouse of petitioner (1) Termination of the civil
the mother) has been sentenced interdiction
o Whoever the court chooses in case to a penalty which
of lack of majority carries with it civil
interdiction
2. Rules (2) Spouse of petitioner (2) Reappearance of
 Property must be recorded in the is judicially declared absentee spouse
registry of property in order to affect an absentee
third persons dealing with registered (3) Loss of parental (5) Restoration of parental
property. authority of the authority to the spouse
spouse of petitioner previously deprived of
 Spouses are not co-owners of CPG has been decreed by it
during the marriage and cannot alienate the court
the supposed ½ interest of each in the
said properties. The interest of the (4) Spouse of petitioner (4) When the spouse who
spouses in the CPG is only inchoate or has abandoned the left the conjugal home
latter or failed to without legal
a mere expectancy and does not ripen
comply with his or separation resumes
into title until it appears after the her obligations to the common life with the
dissolution and liquidation of the family other
partnership that there are net assets. (5) The spouse granted (3) When the court, being
(De Ansaldo v. Sheriff of Manila, 1937) the power of satisfied that the
 Rules on liquidation upon death and administration in the spouse granted the
liquidation of CPG of 2 or more marriage settlements power of
marriages same as in ACP (Art. 103 & has abused that administration in will
104) power not again abuse that
 Support to surviving spouse & children power, authorizes the
resumption of said
during liquidation is charged against the administration
fruits or income of their shares in the (6) At the time of the (6) Reconciliation and
properties. (Art. 133) petition, the spouses resumption of common
 Personal debt acquired during marriage have been separated life of the spouse who
of either spouse is not chargeable in fact for at least 1 have separated in
against community property (Go v. year and facts for at least 1 year
Yamane, 2006) reconciliation is
highly improbable.
(7) When after voluntary
dissolution of the ACP
or CPG has been
judicially decreed upon
the joint petition of the
spouses, they agree to
the revival of the
former property

lOMoARcPSD|3291925
regime. No voluntary 4. rights previously acquired by creditors are

separation of property not prejudiced (Art. 140)
may thereafter be 39
granted.
D. Transfer of Administration to the Other

Spouse (Art. 142) (GACA)
B. Rules
When one spouse.
1. Each spouse shall contribute to the family 1. Becomes the guardian of the other.
expenses, in proportion to their income. In 2. Is judicially declared an absentee.
case of insufficiency, the market value of 3. Is sentenced to a penalty which carries with
their separate properties. (Art. 146 par. 1) it civil interdiction.
2. Liability of spouses to the creditors of the 4. Becomes a fugitive from justice or is in
family shall be SOLIDARY. (Art. 146, par. 2) hiding as an accused in a criminal case.
 Abandonment is defined as the lack of If the other spouse is not qualified by reason of
intention to return to the conjugal home, incompetence, conflict of interest, or any other
without justifiable cause (Dela Cruz v. Dela just cause, the court shall appoint a suitable
Cruz) person to be the administrator.
C. Effects of separation of property In Re: voluntary dissolution of CPG of spouses

between spouses Bernas, 14 SCRA 237
A voluntary separation of properties is not
1. ACP or CPG is dissolved and liquidated (Art. perfected by mere consent but upon the
137) decree of the court approving the same. The
2. Provisions on complete separation of petition for voluntary separation of property
property applies after dissolution of was denied because the children of the 1
st
ACP/CPG (Art. 138) nd

and 2 marriages were not informed; the
a. Liability spouses to creditors shall be separation of property may prejudice the
solidary with their separate properties rights and shares of the children.
b. mutual obligation to support each
continues except when there is legal Maquilan v. Maquilan, (2007)
separation A compromise agreement with judicial
3. Petition and final judgment of separation of recognition is valid, pending petition for
property must be filed in the appropriate declaration of nullity of marriage.
registries (Art. 139)
VI. Property regime of unions without marriage

(asked in ’79, ’87, ’98, ’00 and ’09 bar exams)
Art. 147 Art. 148
When a man and a woman who are capacitated to marry each other, live In cases of cohabitation not falling under the preceding
exclusively with each other as husband and wife without the benefit of
marriage or under a void marriage, their wages and salaries shall be
Article, only the properties acquired by both of the parties
owned by them in equal shares and the property acquired by both of through their actual joint contribution of money, property,
them through their work or industry shall be governed by the rules on co- or industry shall be owned by them in common in
ownership. proportion to their respective contributions. In the
In the absence of proof to the contrary, properties acquired while they absence of proof to the contrary, their contributions and
lived together shall be presumed to have been obtained by their joint corresponding shares are presumed to be equal. The
efforts, work or industry, and shall be owned by them in equal shares. For same rule and presumption shall apply to joint deposits
purposes of this Article, a party who did not participate in the acquisition
by the other party of any property shall be deemed to have contributed
of money and evidences of credit.
jointly in the acquisition thereof if the former's efforts consisted in the care
and maintenance of the family and of the household. If one of the parties is validly married to another, his or
her share in the co-ownership shall accrue to the
Neither party can encumber or dispose by acts inter vivos of his or her
share in the property acquired during cohabitation and owned in common, absolute community or conjugal partnership existing in
without the consent of the other, until after the termination of their such valid marriage. If the party who acted in bad faith is
cohabitation. not validly married to another, his or her shall be forfeited
When only one of the parties to a void marriage is in good faith, the share
in the manner provided in the last paragraph of the
of the party in bad faith in the co-ownership shall be forfeited in favor of preceding Article.
their common children. In case of default of or waiver by any or all of the
common children or their descendants, each vacant share shall belong to The foregoing rules on forfeiture shall likewise apply
the respective surviving descendants. In the absence of descendants,
such share shall belong to the innocent party. In all cases, the forfeiture even if both parties are in bad faith.
shall take place upon termination of the cohabitation. (144a)

lOMoARcPSD|3291925
Art.147 Art.148
1. man and woman
1. man and woman
2. living together as husband and wife
2. living together as husband and wife
40
3. with capacity to marry (Art.5 without any
3. NOT capacitated to marry (Art.35(1)

legal impediment)
under 18 years old)
a. at least 18 years old
4. adulterous relationship (e.g.
b. not Art. 37 (incestuous void
Applicability concubinage)
marriage)
5. bigamous/polygamous marriage
c. not Art. 38 (void marriage by reason
(Art.35(4))
of public policy)
6. incestuous marriages under Art.37
d. not bigamous
7. Void marriages by reason of public
4. other void marriages due to absence of
policy under Art.38
formal requisite
Salaries and wages Owned in equal shares Separately owned by parties
Properties acquired
through exclusive Remains exclusive provided there is proof Remains exclusive
funds
Properties acquired
Owned in common in proportion to
by both through Governed by rules on co-ownership
respective contribution
work or industry
 Owned in equal shares since it is
presumed to have been acquired through No presumption of joint acquisition. When
Properties acquired joint efforts there is evidence of joint acquisition but
while living  if one party did not participate in none as to the extent of actual
together acquisition, presumed to have contributed contribution, there is a presumption of
through care and maintenance of family equal sharing
and household
If one party is validly married to another
When only one of the parties is in good faith,
his/her share in the co-owned properties
the share of the party in bad faith shall be
will accrue to the ACP/CPG of his/her
forfeited:
existing valid marriage
1. In favor of their common children
2. In case of default of or waiver by any or all
If the party who acted in bad faith is not
Forfeiture of the common children or their
validly married to another, his/her share
descendants, each vacant share shall
shall be forfeited in the same manner as
belong to the respective surviving
that provided in Art 147
descendants
3. In the absence of such descendants, such
The same rules on forfeiture shall apply if
share belongs to the innocent party
both parties are in bad faith
 Yaptinchay v. Torres, (1969)  Joaquino v. Reyes (2004)

Application of Article 148; there was no Prohibitions against donations between
proof of actual contribution, while there was spouses must likewise apply to donations
a subsisting marriage apart from the union between persons living together in illicit
without marriage, therefore, the N. Forbes relations;
house goes to the CPG of subsisting
marriage
 Juaniza v. Jose, (1979)

Property acquired by a married party during
cohabitation with another not his spouse
belongs to the CPG of the marriage, and the
other party cannot be held jointly/severally
liable for it
 Villanueva v. CA, (2004)

Transfer of certificate and tax declarations
are not sufficient proof of joint contribution.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IX. The FAMILY and the FAMILY HOME
stranger takes the case out of the ambit of

Chapter IX. The Family and the Family FC 151.
Home 41

I. FAMILY II. Family Home
A. FAMILY RELATIONS
B. GENERAL RULE (asked in ’94 and ’07 bar exam)
C. EXCEPTIONS
II. FAMILY HOME Dwelling place of a person and his family
A. GENERAL RULE
B. EXCEPTIONS Guidelines—
C. BENEFICIARIES OF THE FAMILY HOME 1. It is deemed constituted from time of actual
D. REQUISITES FOR CREDITOR TO AVAIL
occupation as a family residence
OF THE RIGHT UNDER ARTICLE 160
2. It must be owned by person constituting it
3. It must be permanent
I. Family 4. Rule applies to valid and voidable and even
(asked in ’91 bar exam) to common-law marriages under Arts.147
and 148
Basic social institution which public policy 5. It continues despite death of one or more
cherishes and protects hence, no suit between spouses or unmarried head of family for 10
members of the family shall prosper unless years or as long as there is a minor
compromise between parties has failed. beneficiary (Art.159)
6. Can only constitute one family home
A. Family relations include:
A. General Rule
1. Between husband and wife
2. Between parents and children The family home is exempt from (EFA):
3. Among other ascendants and descendants 1. Execution
4. Among brothers and sisters, full or half 2. Forced sale
blood. 3. Attachment
B. General Rule B. Exceptions in the exemption of the

family home from execution (Art. 156)
For a suit between members of the same family
to prosper, the following are required: 1. Nonpayment of taxes.
1. Earnest efforts towards a compromise have 2. Debts incurred prior to the constitution of the
been made family home.
2. Such efforts have failed 3. Debts secured by mortgages on the
3. Such earnest efforts and the fact of failure premises before or after such constitution.
must be alleged 4. Debts due to laborers, mechanics,
Note: The case will be dismissed if it is shown architects, builders, materialmen and others
that no such efforts were made. who have rendered service or furnished
material for the construction of the building.
C. Exceptions to the general rule
(VJLAFF) C. Beneficiaries of the family home (Art.
154)
1. Civil status of persons,
2. Validity of marriage or a legal separation, 1. Husband and wife, or an unmarried person
3. Any ground for legal separation, who is the head of the family
4. Future support, 2. Parents (may include parent-in-laws),
5. Jurisdiction of courts, ascendants, descendants, brothers and
6. Future legitime sisters (legitimate/illegitimate), who are living
in the family home and who depend on the
 Hontiveros v. RTC, (1999) head of the family for support
Whenever a stranger is a party in a case
involving family members, the requisite Requisites to be a beneficiary (RLD)—
showing of earnest efforts to compromise is 1. The relationship is within those
no longer mandatory, as such inclusion of a enumerated
2. They live in the family home

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IX. The FAMILY and the FAMILY HOME
3. They are dependent for legal support on the  Versola v. Mandolaria, (2006)
head of the family The proof that the house is the family home
must be alleged against creditors; Applied 42
Requirements for the sale, alienation, the rule in Art. 160, FC.

donation, assignment, or encumbrance of
the family home—  Patricio v. Dario III, (2006)
1. the written consent of the person WON the grandson of the deceased is a
constituting it, beneficiary according to Art. 154 FC. The
2. his/her spouse, and beneficiary should satisfy all requisites; he
3. majority of the beneficiaries of legal age must be dependent on the head of the
family.
Note: If there is a conflict, the Court will decide.
 Arriola v. Arriola, (2008)
In case of death (ART. 159)— This case involves half brothers and a
- The family home shall continue despite the second wife; the family home includes the
death of one or both spouses or of the land it is built on. The rule in Art. 159 of the
unmarried head of the family for a period of FC regarding the 10 year period is applied,
ten years, or as long as there is a minor the parties involved must wait.
beneficiary.
- The heirs cannot partition the home unless
the court finds compelling reasons therefor.
D. Requisites for creditor to avail of the

right under Article 160
Requisites—
1. He must be a judgment creditor;
2. His claim is not among those excepted
under Article155, and
3. He has reasonable grounds to believe that
the family home is worth more than the
maximum amount fixed in Article 157
Procedure to avail of right under Article

160—
1. The creditor must file a motion in the court
proceeding where he obtained a favorable
for a writ of execution against the family
home.
2. There will be a hearing on the motion where
the creditor must prove that the actual value
of the family home exceeds the maximum
amount fixed by the FC either at the time of
its constitution or as a result of
improvements introduced thereafter its
constitution.
3. If the creditor proves that the actual value
exceeds the maximum amount the court will
order its sale in execution.
4. If the family home is sold for more than the
value allowed, the proceeds shall be applied
as follows:
a. First, the obligation enumerated in
Article 155 must be paid
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

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter X. PATERNITY and FILIATION
b. And under Art. 53 (the second marriage

Chapter X. Paternity and Filiation of a widow or widower who has not
delivered to his or her children by his or 43
I. KINDS OF FILIATION her first marriage the legitime of said

II. IMPUGNING LEGITIMACY children). (SEMPIO-DIY)
III. PROOF OF FILIATION
IV. LEGITIMATION
V. RIGHTS OF LEGITIMATE OR ILLEGITIMATE
 De Castro v. Assidao-De Castro, (2008)
CHILDREN Common children born before the
annulment are legitimate, and therefore
entitled to support from each of the spouses.
I. Kinds of Filiation
(Arts. 163, 164, 165 FC)
II. Impugning Legitimacy (Art. 166)
1. Natural
a. Legitimate A. Grounds
b. Illegitimate
Thus the grounds for impugning the legitimacy of
2. Legal Fiction (Adoption)
a child are:
Legitimate Children— 1. Physical impossibility for sexual
(asked in ’79, ’82, ’84, ’85, ’99 and ’03 bar intercourse within the first 120 days of the
exams) 300 days which immediately preceded the
Conceived or born during the marriage of child's birth due to:
parents 2. Other biological or scientific reasons,
except Artificial Insemination.
May be thru natural means or by artificial 3. And in case of Artificial Insemination, the
insemination. consent of either parent was vitiated
through fraud, violence, mistake,
1. Natural/Biological intimidation, or undue influence.
Liyao v. Liyao, (2002): A child conceived or
born during a valid marriage is presumed to Macadangdang v. CA, (1980)
belong to that marriage, regardless of the Only a proximate separation between the
existence of extramarital relationships. spouses is not sufficient physical separation
as grounds for impugning legitimacy.
2. Artificial Insemination (Art. 164)
Requisites for children conceived through Andal v. Macaraig, (1951)
artificial insemination to be considered Serious illness of the husband which
legitimate: absolutely prevented him from having sexual
a. Artificial insemination made on wife intercourse with his wife, like if the husband
b. Sperm comes any of the following: was already in comatose or a vegetable, or
 Husband sick with syphilis in the tertiary stage so that
 Donor copulation was not possible. But
 husband and donor tuberculosis, even in its most crucial stage,
c. In case of donor sperm, husband and does not preclude copulation between the
wife must authorize/ratify insemination in sick husband and his wife.
a written instrument
 Executed & signed by husband and Jao v. CA, (1987)
wife before the birth of the child. Blood-type matching is an acceptable
 Recorded in the civil registry means of impugning legitimacy, covered by
together with the birth certificate of Art. 166(2), under "biological or other
the child. scientific reasons." But this is only
conclusive of the fact of non-paternity.
Illegitimate Children—
(asked in ’80, ’82, ’83, ’84, ’90, ’93, ’99, ’00, ’07, B. Action for Impugning Legitimacy (Arts.
’08 and ’09 bar exams) 170 and 171)
 General Rule: Those conceived and born
outside of a valid marriage. The action for impugning the legitimacy of a
 Exceptions: child may be brought within 1, 2, or 3 years from
a. Children of marriages void under Art.36 the knowledge of the birth, or the knowledge
(psychological incapacity). of registration of birth.

lOMoARcPSD|3291925
1. Within 1 year  if husband or any heirs Mendoza v. Melia, 17 SCRA 788

reside in the same city or municipality where Baptismal certificates are given probative
the child was born or his birth was recorded. value only for births before 1930. Birth 44
2. Within 2 years  if the husband or all heirs certificates must be signed by the parents

live in the Philippines but do not reside in the and sworn for it to be admitted as evidence.
same city or municipality where the child's
birth took place or was recorded Baluyut v. Baluyut, (1990)
3. Within 3 years  if the husband or all heirs Unsigned birth certificates are not evidence
live outside the Philippines when the child's of recognized filiation.
birth took place or was recorded in the Acebedo v. Arquero, (2003)
Philippines Baptismal certificates are only conclusive of
the sacrament administered, and cannot be
If the birth of the child has been concealed or used as proof of filiation.
was unknown to the husband, the above periods
shall be counted: Lim v. CA, (1975)
1. from the discovery or knowledge of the Marriage certificates cannot be used as
birth of the child, or proof of filiation.
2. from the discovery or knowledge of its
registration, Jison v. CA, (1998)
3. whichever is earlier. Rule 130, Sec. 40 is limited to objects
commonly known as family possessions
Sayson v. CA reflective of a family's reputation or tradition
 Legitimacy can only be attacked directly regarding pedigree like inscriptions on
 General Rule: Only the husband can tombstones, monuments, or coffin plates.
impugn the legitimacy of a child. If he does
Eceta v. Eceta (2004)
not bring action within the prescribed
Signature of the father on the birth certificate
periods, he cannot file such action anymore
is considered as an acknowledgement of
thereafter, and this is also true with his heirs.
paternity and mere presentation of a duly
 Exception: That the heirs of the husband
authenticated copy of such certificate will
may file the action or continue the same if it
successfully establish filiations.
has already been filed
a. If the husband died before the Heirs of Rodolfo Bañas v. Heirs of Bibiano
expiration of the period fixed for bringing Bañas, (1985)
his action "Su padre [Your father]" ending in a letter is
b. If he should die after the filing of the only proof of paternal solicitude and not of
complaint without having desisted actual paternity. Signature on a report card
c. If the child was born after the death of under the entry of "Parent/Guardian" is
the husband. likewise inconclusive of open admission.
III. Proof of Filiation (Arts. 172 and 175 De Jesus v. Syquia, (1933)
By "open and continuous possession of the
(1))
status of a legitimate child" is meant the
(asked in ’85, ’95, ’05 and ’06 bar exams) enjoyment by the child of the position and
A. Rules privileges usually attached to the status of a
legitimate child, like bearing the paternal
Legitimate or illegitimate children may prove surname, treatment by the parents and
their filiation in the same way and on the same family of the child as legitimate, constant
evidence. attendance to the child's support and
education, and giving the child the
General Rule: They may only prove their status
reputation of being a child of his parents.
using the following pieces of evidence:
1. Their record of birth appearing in the civil registry. Agustin v. CA, (2005)
2. An admission of his filiation (legitimate or DNA evidence can be used as proof of
illegitimate) by his parent or parents in a public
paternity.
document or a private handwritten instrument and
signed by said parent or parents. (SEMPIO-DIY) De Jesus v. Estate of Decedent Juan Gamboa
3. Proof of open and continuous possession of
Dizon (2001)
status as legitimate or illegitimate child
4. Any other means stated by the rules of court or The due recognition of an illegitimate child in
special laws a record of birth, a will, a statement before a
court of record, or in any authentic writing, is

lOMoARcPSD|3291925
in itself a consummated act of because either or both of them were below

acknowledgement of the child, and no eighteen (18) years of age at the time of
further court action is required. child’s conception may be legitimated. 45

Gono-Javier vs. Court of Appeals, (1994) Grounds for impugning legitimation—
Mere possession of status as an illegitimate 1. The subsequent marriage of the child's parents is
child does not make a recognized void.
illegitimate child but is only a ground for 2. The child allegedly legitimated is not natural.
bringing an action to compel judicial 3. The child is not really the child of the alleged
recognition by the assumed parent. parents. (SEMPIO-DIY)
Herrera v. Alba, (2005)

In assessing the probative value of DNA V. Rights of Legitimate and Illegitimate
evidence, therefore, courts should consider,
Children (SSS)
among other things, the following data:
a. How the samples were collected, 1. Surname
b. How they were handled, a. Legitimate and legitimated: Surname of
father and mother
c. The possibility of contamination of the
b. Illegitimate: uses surname of mother but the
samples,
father’s surname may be used if father has
d. The procedure followed in analyzing the
explicitly recognized the child as his (RA
samples,
9255, Revilla Law)
e. Whether the proper standards and 2. Succession (asked in ’09 bar exams)
procedures were followed in conducting the
a. Legitimate and legitimated: those granted in
tests,
Civil Code
f. and the qualification of the analyst who b. Illegitimate: ½ the share of a legitimate child
conducted the tests.
3. Support
Estate of Rogelio Ong v. Diaz, (2007) a. Legitimate and legitimated: in accordance to
provisions in the family code
DNA evidence can still be used even after
b. Illegitimate: entitle to support but support will
the death of the parent. come from separate properties of parent.
 Republic v. Vicencio, (1998)

B. Action for Claiming Filiation (Arts. 173
A legitimate child's use of the father's
and 175 (2)) surname is mandatory.
 The child can bring the action during his or
her lifetime and even after the death of the  De Asis v. CA, (1999)
parents. The action does not prescribe as Obligation to support a legitimate child
long as he lives. cannot be waived or compromised.
 If the child is a minor, or is incapacitated or  David v. CA, (1995)
insane, his guardian can bring the action in Parental authority over an illegitimate child
his behalf. belongs to the mother.
IV. Legitimation (Arts. 177 and 182)  Tonog v. CA, (2002)

However, this may be temporarily denied to
(asked in ’82, ’90, ’92, ’04 ’08 and ’09 bar
the mother by reason of her incapacity.
exams)
 Mossesgeld v. CA, (1998)
"Legitimated" children are illegitimate children The father cannot force the use of his
who because of the subsequent marriage of surname without first establishing legitimacy.
their parents are, by legal fiction, considered
legitimate.  Under RA 9255, only an acknowledgment
by the father is necessary for the use of the
Requisites for legitimation— father's surname.
1. The child was conceived and born outside of
wedlock.  Capote v. CA, (2007)
2. General rule: The parents, at the time of the An illegitimate child already given the
child's conception, were not disqualified by any father's surname without the latter's
impediment to marry each other. acknowledgment, must revert to using the
mother's surname.
Exception: RA 9858 - Children born to
parents who were so disqualified only

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XI. ADOPTION
d. Has not been convicted of any crime

Chapter XI. Adoption involving moral turpitude
e. Emotionally and psychologically capable 46
I. R.A. 8552 of caring for children

A. WHO MAY ADOPT f. At least sixteen (16) years older than
B. WHO MAY BE ADOPTED
adoptee, except when adopter is
II. ADOPTION PROCEDURE UNDER RA 8552
IRR biological parent of the adoptee or is the
A. PRE-ADOPTION SERVICES spouse of the adoptee’s parent
B. EFFECTS OF ADOPTION g. In a position to support and care for
C. RESCISSION OF ADOPTION his/her children in keeping with the
D. EFFECTS OF RESCISSION means of the family
E. RECTIFICATION OF SIMULATED BIRTHS
III. R.A. 8043: INTER-COUNTRY ADOPTION ACT 2. Aliens
OF 1995 a. Possession of the same as the
A. WHO MAY ADOPT
qualifications for Filipinos
B. WHO MAY BE ADOPTED
C. WHERE TO FILE APPLICATION
b. His/her country has diplomatic relations
D. DOCUMENTS TO SUPPORT with the Philippines
APPLICATION c. Has been living continuously for 3 years
E. INTER-COUNTRY ADOPTION BOARD (provided that absences not exceeding
F. TRIAL CUSTODY 60 days per 1 year for professional,
business, or emergency reasons are
ADOPTION allowed) in RP prior to the filing of
(Asked in ‘76, ‘77, ‘85, ‘94, ‘95, ‘96, ‘00, ‘01, ‘03, application and maintains such
‘04, ‘05, ‘07, ’08 bar exams) residence until the decree is entered
d. Has been certified by his/her diplomatic
LEGITIMATION ADOPTION or consular office or any appropriate
The law merely The law merely government agency that he/she has the
makes legal what creates by legal capacity to adopt in his/her country
exists by nature fiction a e. His/her government allows the adoptee
relation which to enter his/her country as his/her
did not in fact adoptee
exist
f. Has submitted all the necessary
Persons Only natural Generally
affected children applies to clearances and such certifications as
strangers may be required
Procedure Extrajudicial acts of Always by
parents judicial decree **Items numbers c, d and e may be
Who Only by both Husband and waived under the following
applies parents wife adopt circumstances:
jointly with a. Adopter is a former Filipino Citizen who
exceptions th
seeks to adopt a relative within the 4
(RA8552) degree of consanguinity or affinity
Effect Same status and Creates a rel.
b. One who seeks to adopt the legitimate
rights with that of a only between
legitimate child not the child and
or illegitimate child of his/her Filipino
only in relation to the adopting spouse
the legitimizing parents c. One who is married to a Filipino Citizen
parents but also to and seeks to adopt jointly with his/her
th
other relatives spouse a relative within the 4 degree of
consanguinity or affinity of the Filipino
I. RA 8552: Domestic Adoption Act of spouse
1998
3. Guardians
A. Who May Adopt (Sec.7) With respect to theirs ward after the
termination of the guardianship and
1. Filipino Citizens
clearance of his/her accountabilities.
a. Of legal age
b. In possession of full civil capacity and
Husband and wife shall adopt jointly;
legal rights
Except—
c. Of good moral character
1. if one spouse seeks to adopt the legitimate
child of the other

lOMoARcPSD|3291925
2. if one of the spouse seeks to adopt his/her Missing Child in

illegitimate child provided that other spouse Tri-Media
has signified his/her consent (2) Declaration of 47
3. if spouses are legally separated from each Abandonment

(3) Declaration of
other
Availability for
** if spouses jointly adopt, parental authority Adoption
shall be exercised jointly Case Study Report Application for Adoption
Case Study Report
B. Who May Be Adopted (Sec. 8) Matching
Placement
1. Any person below 18 years old who has Supervised Trial Custody
been administratively or judicially declared Home Study Report
available for adoption Recommendation and
2. The legitimate child of one spouse by the Consent
other spouse Petition for Adoption
3. An illegitimate child by a qualified adopter to Adoption Decree
improve the child’s status to that of
legitimacy II. Adoption Procedure under RA 8552
4. A person of legal age if, prior to the IRR (Secs. 10-32)
adoption, said person has been consistently (as discussed in Prof. Elizabeth Pangalangan’s
considered and treated by the adopter(s) as class)
his/her child since minority
5. A child whose previous adoption has been A. Pre-Adoption Services
rescinded The DSWD shall provide for the following
6. A child whose biological or adoptive services:
parent(s) has died, provided that no 1. Counseling services for the biological
proceedings shall be initiated within 6 parents, prospective parents, and
months from the time of death of said prospective adoptee
parent(s) 2. Exhaust all efforts to locate the biological
parents, if unknown
Consent Necessary for Adoption (Sec. 9)—
1. The prospective adoptee if 10 years or older
2. The prospective adoptee’s biological B. Effects of Adoption (Secs. 16-18)
parents, legal guardian or the government
1. Parental Authority
instrumentality or institution that has custody
All legal ties between biological parents and
of the child
adoptee are severed, and the same shall be
3. The prospective adopters’ legitimate and
vested on the adopter, except if the
adopted children who are ten years or over
biological parent is the spouse of the
and, if any, illegitimate children living with
adopter.
them
4. The spouse, if any, of the person adopting
2. Legitimacy
or to be adopted.
The adoptee shall be considered legitimate
son/daughter of the adopter for all intents
Note: A decree of adoption shall be effective
and purposes and shall be entitled to all the
as of the date the original petition was filed.
rights and obligations provided by law to
It also applies in case the petitioner dies
legitimate children born to them without
before the issuance of the decree of
discrimination of any kind.
adoption to protect the interest of the
adoptee.
3. Succession
Adopter and adoptee shall have reciprocal
Child to be Adopted Adopter
Biological parent signs a Inquiry at DSWD
rights of succession without distinction from
Deed of Voluntary legitimate filiation, in legal and intestate
Commitment (Rescissible succession. If adoptee and his/her biological
within 6 months) parents had left a will, the law on
Voluntary Commitment: Attendance of DSWD testamentary succession shall govern.
Declaration of Availability Adoption Fora and
for Adoption Seminars (include
Involuntary Commitment: counseling)
(1) Announcement of

lOMoARcPSD|3291925
C. Rescission of Adoption (Sec. 19) rectification exist, and other requirements as

determined by the Department.
Adoption, being in the best interest of the child, 48
shall not be subject to rescission by the Tamargo v. CA (1992)

adopter(s). Where the petition for adoption was granted
after the child had shot and killed a girl, the
Adopted may request for rescission, with the Supreme Court did not consider that
assistance of DSWD, if a minor, or over 18 but retroactive effect may be given to the decree
incapacitated, based on the ff grounds: of adoption so as to impose a liability upon
1. repeated physical and verbal maltreatment the adopting parents accruing at a time
despite having undergone counseling when adopting parents had no actual or
2. attempt on life of adoptee physically custody over the adopted child.
3. sexual assault or violence Retroactive effect may perhaps be given to
4. abandonment or failure to comply with the granting of the petition for adoption
parental obligations where such is essential to permit the accrual
of some benefit or advantage in favor of the
However, the adopter(s) may disinherit the adopted child. In the instant case, however,
adopted based on causes as enumerated in Art. to hold that parental authority had been
919 of the NCC. retroactively lodged in the adopting parents
so as to burden them with liability for a
tortuous act that they could not have
D. Effects of Rescission (Sec. 20)
foreseen and which they could not have
1. The parental authority of the adoptee's prevented would be unfair and
biological parents, if known, OR the legal unconscionable.
custody of the DSWD shall be restored if the
adoptee is still a minor or incapacitated. Lazatin v. Campos, (1979)
2. The reciprocal rights and obligations of the Adoption is a juridical Act, proceeding in
adopters and the adoptee to each other rem. Because it is artificial, the statutory
shall be extinguished. requirements in order to prove it must be
3. The court shall order the Civil Registrar to strictly carried out. Petition must be
cancel the amended certificate of birth of the announced in publications and only those
adoptee and restore his/her original birth proclaimed by the court are valid. Adoption
certificate. is never presumed.
4. Successional rights shall revert to its status
Santos v. Aranzanso, (1966)
prior to adoption, but only as of the date of
Validity of facts behind a final adoption
judgment of judicial rescission. Vested rights
decree cannot be collaterally attacked
acquired prior to judicial rescission shall be
without impinging on that court’s jurisdiction.
respected.
DSWD v. Belen, (1997)
E. Rectification of Simulated Births (Sec. Participation of the appropriate government
22) instrumentality in performing the necessary
studies and precautions is important and is
A person who has, prior to the effectivity of this indispensable to assure the child’s welfare.
Act, simulated the birth of a child shall not be
punished for such act: Provided, Landingin v. Republic, (2006)
1. That the simulation of birth was made for the Consents for adoption must be written and
best interest of the child and that he/she has notarized.
been consistently considered and treated by
that person as his/her own son/daughter: Sayson v. CA. (1992)
2. That the application for correction of the Adopted children have a right to represent
birth registration and petition for adoption their adopters in successional interests. (I
shall be filed within five (5) years from the don’t know the basis for this doctrine but
effectivity of this Act and completed according to SCRA and my notes, the
thereafter: decision in this case was: “Although an
3. That such person complies with the adopted child shall be deemed to be a
procedure for Legal Adoption as specified in legitimate child and have the same rights as
this Act, which includes the Child and Home the latter, these rights do not include the
Study Report of DSWD to determine if right of representation. The relationship
alleged conditions in the application for created by the adoption is between only the

lOMoARcPSD|3291925
adopting parents and the adopted child. It B. Who May Be Adopted (Sec. 8)
does not extend to the blood relatives of
either party.”) 1. Only a legally-free child may be the subject 49
of inter-country adoption.

2. A legally-free child is one who has been
voluntarily or involuntarily committed to the
III. RA 8043: Inter-Country Adoption Act DSWD of the Philippines, in accordance with
of 1995 the Child and Youth Welfare Code.
3. No child shall be matched to a foreign
INTER-COUNTRY ADOPTION refers to the adoptive family unless it is satisfactorily
socio-legal process of adopting a Filipino child shown that the child cannot be adopted
by a foreigner or a Filipino citizen permanently locally.
residing abroad where the petition is filed, the 4. In order that such child may be considered
supervised trial custody is undertaken, and the for placement, the following documents must
decree of adoption is issued outside the be submitted to the Board:
Philippines. a. Child study
b. Birth Certificate / Foundling Certificate
c. Deed of Voluntary Commitment/ Decree
A. Who May Adopt (Sec. 9) of Abandonment/ Death Certificate of
Any foreign national or a Filipino citizen parents
permanently residing abroad who has the d. Medical Evaluation / History
qualifications and none of the disqualifications e. Psychological Evaluation, as necessary
under the Act may file an application if he/she: f. Recent photo of the child
1. Is at least 27 years of age and at least 16
years older than the child to be adopted, at C. Where to File Application (Sec.10)
the time of application unless the adopter is
the parent by nature of the child to be Application shall be filed with the Philippine
adopted or the spouse of such parent Regional Trial Court having jurisdiction over the
2. If married, his/her spouse must jointly file for child, or with the Inter-Country Adoption Board,
the adoption through an intermediate agency, whether
3. Has the capacity to act and assume all governmental or an authorized and accredited
rights and responsibilities of parental agency, in the country of the prospective
authority under his national laws, and has adoptive parents.
undergone the appropriate counseling from
an accredited counselor in his/her country
D. Application Should Be Supported By
4. Has not been convicted of a crime involving
The Following Documents Written And
moral turpitude
5. Is eligible to adopt under his/her national law Officially Translated In English (Sec.
6. Is in a position to provide the proper care 10)
and support and to give the necessary moral 1. Birth Certificate of applicants
values and example to all his children, 2. Marriage Contract and Divorce decree, if
including the child to be adopted applicable
7. Agrees to uphold the basic rights of the child 3. Written consent of their biological or
as embodied under Philippine laws, the U.N. adoptive children above 10 years of age in
Convention on the Rights of the Child, and the form of sworn statement,
to abide by the rules and regulations issued 4. Physical, medical and psychological
to implement the provisions of this Act evaluation by a duly licensed physician and
8. Comes from a country with whom the psychologist
Philippines has diplomatic relations and 5. Income Tax Returns or any document
whose government maintains a similarly showing the financial capability of the
authorized and accredited agency and that applicant
adoption is allowed under his/her national 6. Police Clearance
laws 7. Character reference from the local
church/minister, applicant’s employer and a
member of the immediate community who
have known the applicant for at least 5 years
8. Recent postcard-sized pictures of the
applicant and his immediate family

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E. Inter-Country Adoption Board

1. as the central authority in matters relating to 50
inter-country adoption

2. Ensures that all possibilities for adoption of
the child under the Family Code have been
exhausted and that inter-country adoption is
in the best interest of the child
F. Trial Custody (Sec. 14)

1. The governmental agency or the authorized
and accredited agency in the country of the
adoptive parents shall be responsible for the
trial custody and the care of the child. It shall
also provide for counseling and other related
services.
2. The trial custody shall be for a period of 6
months from the time of placement.
3. It starts upon actual physical transfer of the
child to the applicant who, as actual
custodian, shall exercise substitute parental
authority over the person of the child
4. The adopting parents shall submit to the
governmental agency or the authorized and
accredited agency, which shall in turn
transmit a copy to the Board, a progress
report of the child's adjustment. The
progress report shall be taken into
consideration in deciding whether or not to
issue the decree of adoption.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XII. SUPPORT
 Refusal to support children or descendants

Chapter XII. Support without justifiable cause is a sufficient
(asked in ‘84, ‘85, ‘05, ’08 bar exams) condition for the disinheritance of parents or 51
ascendants, whether legitimate or

I. GENERAL PROVISIONS illegitimate (Art. 920, CC).
A. KINDS
B. CHARACTERISTICS
C. HOW SUPPORT IS GIVEN  Unjustified refusal to support one’s children
II. WHO ARE OBLIGED TO SUPPORT EACH or spouse is a sufficient cause for
OTHER disinheriting a spouse (Art. 921, CC).
III. PROPERTIES ANSWERABLE FOR SUPPORT
IV. ORDER OF SUPPORT  Spouses are jointly responsible for the
A. IF THERE ARE MULTIPLE OBLIGORS family's support. Support expenses shall be
B. IF THERE ARE MULTIPLE RECIPIENTS paid from the CP, or in absence thereof, the
income/fruits of their separate properties, or
I. Support in insufficiency/absence of such, from the
 Consists of everything indispensable for separate properties (Art. 70).
sustenance, dwelling, clothing, medical ___________
attendance, education and transportation, in
keeping with the financial capacity of the A. Kinds of Support
family (Art. 194).
1. Legal – that which is required to be given by
 The right and duty to support, especially the law
right to education, subsists even beyond the 2. Judicial – that which is required to be given
age of majority (Art. 194). by court order whether pendente lite or in a
final judgment
 The amount of support is in proportion to the 3. Voluntary or Conventional – by agreement
means of the provider and the needs of the
receiver, and can be reduced or increased if B. Characteristics of Support (PREVIEW)
such circumstances change (Arts. 201 -
202). 1. Personal
2. Intransmissible
 The obligation to give support shall be 3. Not subject to waiver or compensation with
DEMANDABLE from the time the person regard to future support
who has a right to receive the same needs it 4. Exempt from attachment or execution,
for maintenance, but it shall not be except if support is contractual or given by
PAYABLE except from the date of judicial or will. In such cases, any excess legal support
extra-judicial demand (Art. 203). can be subject to levy on attachment or
execution.
 When, WITHOUT THE KNOWLEDGE of the 5. Reciprocal on the part of those who are by
person obliged to give support, it is given by law bound to support each other
a stranger, the stranger has the right to 6. Variable
claim the same from the person obliged,
unless it appears that he gave it without C. How Support is Given (Art. 204)
intention of being reimbursed (Art. 206).
1. Payment of the amount;
 When the person obliged to give support 2. Accepting the recipient in the home of the
UNJUSTLY REFUSES OR FAILS to give provider, unless there is a legal or moral
support when urgently needed, any third obstacle from doing so.
person may furnish support to the needy
individual, with right of reimbursement from
the person obliged to give support. This II. Who are Obliged to Support Each
particularly applies when the father or Other (Art. 195)
mother of a minor child unjustly refuses to
support or fails to give support to the child
1. Spouses;
when urgently needed (Art. 207).
2. Legitimate ascendants and descendants;
3. Parents and their children (legitimate and
 Future support cannot be the subject matter
illegitimate) and the children of the latter
of a compromise; such are void (Art. 2035,
(legitimate and illegitimate);
CC).

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XII. SUPPORT
4. Legitimate brothers and sisters, whether of B. Order of priority if there are multiple
full or half-blood; recipients (Sempio-Diy)
5. Illegitimate brothers and sisters, EXCEPT 52
when the need for support of one (of age) is 1. Observe order in Article 199 (SDAB);

due to a cause imputable to his/her fault or 2. But if the concurrent obligees are the
negligence (Art. 196). spouse and a child subject to parental
authority, the child shall be preferred.
[NOTE: Both legitimate and illegitimate children
are entitled to support.] [NOTE: Tolentino says that the above
preference given to a child under parental
authority over the spouse should prevail only if
the person obliged to support pays it out of his
III. Properties Answerable for Support own separate property. So if the support comes
(Art. 197-198) from ACP or CPG, the above rule of preference
for the child does not apply.]
1. From the separate property of the obligor. If
no separate property, the ACP/CPG (if  Pelayo v. Lauron, (1909)
financially capable) shall advance the Even if the parents-in-law were the ones
support, to be deducted from the obligor’s who called for the physician’s services for
share upon liquidation of such regime. the childbirth of their daughter-in-law, it is
2. Pending legal separation or annulment, the woman’s husband who is bound to pay
support (pendente lite) for spouses and the fees due to the physician.
children will come from the ACP/CPG. After
final judgment granting the petition, mutual  Lacson v. Lacson, (1968)
support obligation between spouses ceases. Man is still liable for support in arrears since
(But in legal separation court may order the mother advanced it from a stranger (the
guilty spouse to give support to innocent uncle of the daughters).
spouse.)
 Lacson v. Lacson, (2006)
[NOTE: De facto separation does not affect the Acknowledgment of and commitment to
ACP, except that the spouse who leaves the comply with support obligation through a
conjugal home without just cause shall not be note in his own handwriting is proof that a
entitled to support (Art. 100).] demand was made.
IV. Order of Support (SDAB)

A. Order of support if there are multiple
obligors (2 or more; Art. 199)
1. Spouses
2. Descendants, nearest in degree
3. Ascendants, nearest in degree
4. Brothers and Sisters
 When two or more are obliged to give

support, the payment shall be divided
between them IN PROPORTION to their
resources;
 Also, in case of URGENT NEED and by
special circumstances, judge may order only
one obligor to furnish support without
prejudice to reimbursement from other
obligors of the share due from them (Art.
200).

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CIVIL LAW REVIEWER Chapter XIII. PARENTAL AUTHORITY
4. It is purely personal and cannot be

Chapter XIII. Parental Authority exercised through agents
5. It is temporary 53
I. PARENTAL AUTHORITY – GENERAL ________________

PROVISIONS
A. CUSTODY A. Custody
B. OTHER RIGHTS AND DUTIES IN
EXERCISE OF PARENTAL AUTHORITY Parental Preference Rule—
II. SUBSTITUTE AND SPECIAL PARENTAL The natural parents, who are of good character
AUTHORITY and who can reasonably provide for the child,
III. SUSPENSION OR TERMINATION OF are ordinarily entitled to custody as against all
PARENTAL AUTHORITY persons (Santos v CA, 1995).
IV. RIGHTS AND DUTIES OF CHILDREN
Who exercises authority in cases of death,
I. Parental Authority absence, remarriage, or separation of
(asked in ’94, ‘03 and ’05 bar exams) parents—
 In case one parent is absent or already
(patria potestas): dead, the present or surviving parent (Art.
It’s the mass of rights and obligations which 212 FC)
parents have in relation to the person and  Remarriage shall not affect the parental
property of their children until their emancipation, authority over the children (Art. 212 FC)
and even after this under certain circumstances  In case of a void/annulled marriage, and
(Manresa). there is no agreement bet. spouses, the
parent designated by the court (Art. 43 FC
Parental authority includes (Art. 209 FC): par 1; Art. 49 FC).
1. The caring for and rearing of children for  Innocent spouse gets custody of minor
civic consciousness and efficiency; children in legal separation (Art. 63 FC par
2. The development of the moral, mental and 3).
physical character and well-being of said  The court shall take into account all relevant
children considerations, especially the choice of the
child over seven years of age, unless the
Rules as to the exercise of parental parent chosen is unfit (Art. 213 FC par 1).
authority:
1. The father and the mother shall jointly Tender Years Presumption—
exercise parental authority over the persons NO child under 7 years of age shall be
of their common children. In case of separated from the mother, unless the court
disagreement, the father's decision shall finds compelling reasons to order otherwise.
prevail, unless there is a judicial order to the (Art. 213 FC par 2; Gamboa v. CA, 2007)
contrary (Art. 211 FC) Examples of compelling reasons are:
2. If the child is illegitimate, parental authority  When the mother is insane;
is with the mother (Art.176 FC; see also  with a communicable disease that might
Chapter 10). endanger the life or health of the child;
 is maltreating the child; or
Cases when parental authority and  has another child by another man who lives
responsibility may be transferred or with her. (Cervantes v. Fajardo, 1989)
renounced: [NOTE: Prostitution or infidelity to husband does
 Adoption; not make a mother unfit as parent.]
 Guardianship; or
 Commitment of the child in an entity or B. Other Rights and Duties in Exercise of
institution engaged in child care or in a Parental Authority
children’s home
Rights of Parents upon their children—
Characteristics of parental authority:  To have them in their custody (Art. 220 FC
1. It is a natural right and duty of the parents par 1)
(Art. 209 FC)  To represent them in all matters affecting
2. It cannot be renounced, transferred or their interests (Art. 200 FC par 6)
waived, except in cases authorized by law  Demand respect and obedience and impose
(Art 210 FC) discipline on them (Art. 200 FC par 7&8; see
3. It is jointly exercised by the father and the also People v Silvano, 1999)
mother (Art. 211 FC)

lOMoARcPSD|3291925
 Administer the property of a child for her/his 3. Child’s actual custodian, over 21 years old,
support and education, unless title/transfer unless unfit or unqualified (Art. 216 FC par
provides otherwise (Art. 226 FC par 1) 3) 54
 Administer the fruits and income (ONLY) of

the children’s property primarily to support [NOTE: The same order applies to the
the child and secondarily to use for the daily appointment of judicial guardian]
needs of the family (Art. 226 FC par 2)
 To give or withhold consent on marriage, Special parental authority exercised by (Art.
pre-nuptial, donation propter nuptias, 218 FC)—
adoption, and employment 1. School, its administrators and teachers, or
 To disinherit them for just cause 2. The individual, entity or institution engaged
in child care.
Duties of Parents upon their children—
 Support and upbringing in accordance to Substitute Special Parental Authority
their means (Art. 220 par 1) Parental
 Educate, instruct, and provide them with Authority
moral and spiritual guidance, and love and It is exercised in It is exercised concurrently with the
understanding (Art. 220 par 3 case of death, parental authority of the parents
absence, or in and rests on the theory that while
 Defend them against unlawful aggression case of the child is in the custody of the
 Answer for damages caused by their fault or unsuitability of person exercising special parental
negligence, and for civil liability for crimes parents. authority, the parents temporarily
committed by them (Art. 221 FC) relinquish parental authority over
 Give their lawful inheritance the child to the latter.
Liability of parents for torts committed by  St. Mary’s Academy v. Carpitanos, (2002)
their minor children (Art. 221 FC; Art. 2180 The special parental authority and
CC)— responsibility applies to all authorized
 Parents and other persons exercising activities, whether inside or outside the
parental authority are civilly liable for the premises of the school, entity or institution.
torts of their unemancipated children:
 Provided they are living in their Liability of those exercising special parental
company, and authority over the child (Art. 219 FC)—
 Subject to the appropriate defenses 1. They are principally and solidarily liable
provided by law, like observing the for damages caused by the acts or missions
diligence of a good father of a family to of the minor child while under their
prevent the damage (Libi v. IAC, 1992) supervision, instruction or custody.
 If the minor child is, therefore, not living with HOWEVER, this liability is subject to the
the parents but has been entrusted to the defense that the person exercising parental
care of other persons, or is an intern in authority exercised proper diligence.
school, the liability does not apply. 2. The parents and judicial guardians of the
 This liability of the parents and those minor or those exercising substitute parental
exercising parental authority over the child is authority over the minor are subsidiarily
solidary and primary and direct, not liable for said acts and omissions of the
subsidiary minor.
Effects of Parental Authority Upon the

II. Substitute and Special Parental Property of the Child (Art. 225 FC)—
Authority  The Father and Mother shall jointly exercise
legal guardianship over the property of the
(Asked in 2003 bar exam) minor child without court appointment
 In case of disagreement, the father’s
Substitute parental authority exercised by (in decision shall prevail, unless there is judicial
order): order to the contrary
1. The surviving grandparent (Art. 214 FC)  If the market value of the property or the
2. Oldest brother or sister, over 21 years old, annual income of the child exceeds
unless unfit or unqualified (Art. 216 FC par P50,000, the parent is required to furnish a
2). bond of not less than 10% of the value of the
child’s property or income

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III. Suspension or Termination of  right to grow up as a free individual

Parental Authority
55
Duties of Children:

Grounds for Suspension of Parental Art. 357, NCC—
Authority (CLEBC; Art. 230-31 FC)—  obey and honor his parents or guardian
1. Conviction of parent for crime punished w/  respect old relatives and persons holding
civil interdiction substitute parental authority
2. Treats child with excessive harassment and  exert his utmost for his education and
cruelty training
3. Gives corrupting orders, counsel or example  cooperate with the family in matters for his
4. Compels child to beg own good
5. Subjects or allows acts of lasciviousness
Art. 4, PD603—
Parental Authority Permanently Terminates  strive to live an upright and virtuous life
(Art. 228 FC)—  love, obey, respect his parents and
1. Upon death of parents cooperate with them in strengthening the
2. Upon death of child family
3. Upon emancipation of child  extend his love to his brothers and sisters
4. If the parents exercising parental authority  exert his utmost to develop his potentials
has subjected the child or allowed him to be
subjected to sexual abuse (Art. 232 FC)
Termination of parental authority which can

be revived by final judgment (Art. 229 FC)—
1. Upon adoption of the child;
2. Upon the appointment of a general guardian
for the child;
3. Upon judicial declaration
IV. Rights and Duties of Children
Art. 356, NCC—

 parental care
 receive at least elementary education
 be given moral and civil training by parents
or guardian
 live in an atmosphere conducive to his
physical, moral, and intellectual
development
Art. 3, PD603—
 to be born well
 right to a wholesome family life
 right to a well-rounded development
 right to a balanced diet, adequate clothing,
shelter, proper medical attention, and all
basic physical requirements of a healthy life
 raised in an atmosphere of morality and
rectitude
 education commensurate to his abilities
 full opportunities for a safe and wholesome
recreation
 protection against exploitation and other bad
influences
 right to the care, assistance and protection
of the State
 right to an efficient and honest government

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XIV. FUNERALS
Guidelines in making funeral arrangements—

Chapter XIV. Funerals  The persons who preferred in the right to
make funeral arrangements may waive the 56
I. General Guidelines right expressly or impliedly in which case the

right and duty immediately descend to the
Art. 305, Civil Code. The duty and the right to make
person next in the order
arrangements for the funeral of a relative shall be in  It must be in keeping with the social position
accordance with the order established for support, of the deceased.
under Article 294. In case of descendants of the same  Law shall prevail over the will of the persons
degree, or of brothers and sisters, the oldest shall be who have the right to control the burial of
preferred. In case of ascendants, the paternal shall deceased – exhumation, evidential purpose,
have a better right. disposition of corpse by deceased,
mutilation of corpses and autopsies.
Art. 306, Civil Code. Every funeral shall be in
 Corpses which are to be buried at public
keeping with the social position of the deceased.
expenses may also be used for scientific
Art. 307, Civil Code. The funeral shall be in purposes under certain conditions.
accordance with the expressed wishes of the  Expressed wishes of the deceased is given
deceased. In the absence of such expression, his priority provided that it is not contrary to law
religious beliefs or affiliation shall determine the and must not violate the legal and
funeral rites. In case of doubt, the form of the funeral reglamentary provisions concerning funerals
shall be decided upon by the person obliged to make and disposition of the remains (time,
arrangements for the same, after consulting the other manner, place or ceremony)
members of the family.  In the absence of expressed wishes, his
Art. 308, Civil Code. No human remains shall be
religious beliefs or affiliation shall determine
retained, interred, disposed of or exhumed without the the funeral rights.
consent of the persons mentioned in articles 294 and  In case of doubt, the persons in Art. 199
305. shall decide.
 Any person who disrespects the dead or
Art. 309, Civil Code. Any person who shows interferes with the funeral shall be liable for
disrespect to the dead, or wrongfully interferes with a material and moral damages.
funeral shall be liable to the family of the deceased for
damages, material and moral.
Art. 310, Civil Code. The construction of a tombstone

or mausoleum shall be deemed a part of the funeral
expenses, and shall be chargeable to the conjugal
partnership property, if the deceased is one of the
spouses.
Duty and Right to make funeral

arrangements (in relation to Art. 199 FC)—
1. Spouse
2. Descendants in nearest degree
3. Ascendants in nearest degree
4. Brothers and sisters
5. Municipal authorities – if there are no
persons who are bound to support or if such
persons are without means
- end of Persons and Family Relations -

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SUCCESSION
Table of Contents
Chapter I. Concept of Succession................59 Chapter V. Partition and Distribution of 58

I. Definition of Succession (Art. 774, CC) Estate .............................................................. 83
SUCCESSION
59 I. Concept of Partition ............................ 83
II. Opening of Succession (Art. 777, CC) 59 II. Effects of Partition............................... 84
III. Kinds of Succession (Art. 778, CC) ....59 III. Nullification of Partition ....................... 84
IV. Heirs ....................................................60 IV. Important Periods in Partition ............. 85
Chapter II. Testamentary Succession ..........61 Chapter VI. Application of the Important
I. Concept ...............................................61 Concepts through Sample Computational
II. Testamentary Capacity .......................61 Problems......................................................... 86
III. Formalities of Wills ..............................61 I. Institution of Heirs ............................... 86
IV. Qualifications of Witnesses to a Notarial II. Legitimes............................................. 86
Will 62 III. Intestate Succession........................... 87
V. Qualifications of Witnesses to a Notarial IV. Accretion ............................................. 87
Will 63 V. Collation .............................................. 88
VI. Institution of Heirs ...............................63
VII. Applicable Principles of Private
International Law .........................................63
Reference ....................................................64
IX. Revocation of Wills and Testamentary
Dispositions..................................................64
X. Allowance and Disallowance of Wills..65
XI. Substitution of Heirs ............................66
XII. Legitimes.........................................67
XIII. Preterition........................................69
XIV. Reserva Troncal .............................69
XV. Disinheritance .................................70
XVI. Legacies and Devises.....................71
Chapter III. Intestate Succession..................74

I. Causes for Legal or Intestate
Succession...................................................74
II. The Intestate or Legal Heirs................74
III. Fundamental Underlying Principles in
Legal or Intestate Succession......................74
IV. Relationship (Arts. 963-969, CC) ........75
V. The Right of Representation (Art. 970,
CC) 75
76
VII. Concurrence in Legal or Intestate
Succession...................................................77
VIII. Outline of Intestate Shares .............77
IX. Order of Concurrence in the Case of an
Adopted Child (Art, 190, FC) .......................78
Chapter IV. Provisions Common to

Testamentary and Intestate Succession .....79
I. Accretion .............................................79
II. Capacity to Succeed ...........................80
III. Acceptance and Repudiation of
Inheritance ...................................................81
IV. Collation (Arts. 1061-1077, CC)..........81

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CIVIL LAW REVIEWER Chapter I. CONCEPT OF SUCCESSION
Chapter I. Concept of Succession

SUCCESSION TEAM
SUCCESSION
Kristine Bongcaron I. DEFINITION OF SUCCESSION
Emil Lunasco II. OPENING OF SUCCESSION
Lead Writers
III. KINDS OF SUCCESSION
Alex Lopez IV. KINDS OF HEIRS 59
Writer
SUCCESSION
CIVIL LAW I. Definition of Succession (Art. 774,
Kristine Bongcaron CC)
Patricia Tobias  It is a mode of acquisition
Subject Editors  by virtue of which the property, rights and
ACADEMICS COMMITTEE obligations
 to the extent of the value of the inheritance,
Kristine Bongcaron of a person
Michelle Dy  are transmitted through his death to another
Patrich Leccio
Editors-in-Chief or others
 either by his will, or by operation of law
PRINTING & DISTRIBUTION  a process of transmission of property,
Kae Guerrero rights, and obligations not extinguished by
death (Balane)
DESIGN & LAYOUT
Pat Hernandez
Viktor Fontanilla II. Opening of Succession (Art. 777, CC)
Rusell Aragones
Romualdo Menzon Jr.
Rania Joya  The rights to succession are transmitted
from the moment of the death of the
LECTURES COMMITTEE decedent.
Michelle Arias  However, a person may be “presumed”
Camille Maranan dead for the purpose of opening his
Angela Sandalo succession (Rules on presumptive death
Heads in Arts. 390-391, CC). In this case,
Katz Manzano Mary Rose Beley succession is only of provisional character
Sam Nuñez Krizel Malabanan because there is always a chance that the
Arianne Cerezo Marcrese Banaag
Volunteers absentee may still be alive.
MOCK BAR COMMITTEE

Lilibeth Perez III. Kinds of Succession (Art. 778, CC)
BAR CANDIDATES WELFARE  Testamentary (Art. 779, CC) - results from

Dahlia Salamat the designation of an heir made in a will
LOGISTICS  Legal or intestate (Art. 960, CC) - takes

Charisse Mendoza place by operation of law in the absence of a
valid will
SECRETARIAT COMMITTEE  If a person dies without a will or with a
Jill Hernandez void will or one which has subsequently
Head lost its validity;
Loraine Mendoza Faye Celso
 The suspensive condition attached to
Mary Mendoza Joie Bajo the institution of heir does not happen or
Members is not fulfilled or the heir dies before the
testator or repudiates the inheritance,
there being no substitution and no right
of accretion takes place
 When the heir instituted in incapable of
succeeding, except in cases provided in
this Code.
 Heir dies before the testator

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CIVIL LAW REVIEWER Chapter I. CONCEPT OF SUCCESSION
 Testator repudiates the inheritance
 Mixed (Art. 780, CC) - effected partly by will

and partly by operation of law
60
IV. Heirs
SUCCESSION
 Those who are called to the whole or to an
aliquot portion of the inheritance either by
will or by operation of law
 Compulsory Heirs – those who succeed by

force of law to some portion of the
inheritance, in an amount predetermined by
law known as the legitime, of which they
cannot be deprived by the testator, except
by a valid disinheritance. They succeed
regardless of a will.
 Voluntary or Testamentary Heirs – those

who are instituted by the testator in his will,
to succeed to the portion of the inheritance
of which the testator can freely dispose.
They succeed by reason of a will.
 Legal or Intestate Heirs – those who

succeed to the estate of the decedent who
dies without a valid will, or to the portion of
such estate not disposed of by will. They
succeed in the absence of a valid will,
although this is not the only ground for
intestacy, as can be seen in Chapter III.

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CIVIL LAW REVIEWER Chapter II. TESTAMENTARY SUCCESSION
disease, injury or other cause. (Art. 799,

Chapter II. Testamentary Succession CC)
 Soundness of mind is presumed (Art.
I. Concept of Testamentary Succession 800, CC)
II. Testamentary Capacity
III. Formalities of Wills
IV. Qualifications of Witnesses to a Notarial Will III. Formalities of Wills 61
V. Amending a Will
SUCCESSION
VI. Institution of Heirs Kinds of Wills—
VII. Applicable Principles of Private International 1. Notarial will- Ordinary or attested will (Arts.
Law
804-808, CC)
VIII. Codicils and Incorporation by Reference
IX. Revocation of wills and Testamentary 2. Holographic will (Arts. 804 and 810, CC)
disposition
X. Allowance and Disallowance of wills
XI. Substitution of Heirs Common Requirements for Both Kinds of
XII. Legitimes Wills (Art. 804, CC) —
XIII. Preterition 1. Every will must be in writing; and
XIV. Reserva Troncal 2. Executed in the language known to the
XV. Disinheritance testator.
XVI. Legacies and Devices
_____________
I. Concept Specific Requirements for Notarial Wills—

(Asked in ’75, ’86, ’90, ’93, ’07 and ’08)
Governing Law on Validity with Respect to
the Time of Execution 1. In writing (Art. 804, CC)
Aspect of the Governing Law
Will 2. In the language known to the testator (Art.
804, CC)
Law in force at the time the will
Formal Validity
was executed (Art. 795, CC) 3. SUBSCRIPTION: Subscribed to, at the
end (Art. 805, CC) -
Law of decedent’s nationality at a. By the testator himself; or
Intrinsic
the time of his death (Art. 16 b. By the testator’s name written by a
Validity
and 2263, CC) representative in his presence and
under his express direction.
4. ATTESTATION: Attested and subscribed

II. Testamentary Capacity by 3 or more credible witnesses in the
presence of the testator and of one
another (Art. 805, CC).
 Requirements (SAP)
 Testator is of Sound mind at the time of GENERAL RULE EXCEPTION
execution (Art. 798, CC) The law presumes that If within one month
 Not under 18 years of Age (Art. 797, every person is of sound before making a will the
CC) mind testator is known to be
 Not expressly Prohibited by law to make insane, the burden of
a will (Art. 796, CC) proof that he had a lucid
interval is on the one
 Soundness of mind—Rules to remember: alleging the validity of
the will.
 It is sufficient that the testator – (NPC)
o Knew the Nature of the estate to
 Supervening incapacity will not
be disposed of; (N)
invalidate the will. Supervening capacity
o The Proper objects of his bounty;
will also not validate the will. (Art. 801,
(P)
CC)
o Character of the testamentary act
 The attestation clause shall state the ff:
(C) (Art. 799, CC)
 Number of pages;
 It is not necessary that the testator be in
 The fact that the testator or his
full possession of all his reasoning
representative under his express
faculties, or that his mind be wholly
direction signed the will and every
unbroken, unimpaired, or unshattered by

lOMoARcPSD|3291925
page in the presence of instrumental would be in contravention of Arts. 805

witnesses and 806.
 That the witnesses signed the will _____________
and all its pages in the presence of
the testator and of one another. Special Requirements for Notarial Wills—
1. Deaf Mute (Art. 807, CC) 62
 Test of Presence: a. Testator must personally read the will; or
SUCCESSION
Jaboneta vs. Gustilo, (1906): Not b. Testator shall personally designate two
whether they actually saw each other persons to read the contents and
sign, but whether they might have seen communicate it to him in some
each other sign had they chosen to do practicable manner.
so considering their mental and physical 2. Blind (Art. 808, CC)
condition and position with relation to a. The will shall be read to the testator
each other at the moment of inscription twice - By one of the subscribing
of each signature. witnesses and by the notary public
acknowledging the will.
5. MARGINAL SIGNATURES: Testator or his b. In the case of Garcia vs. Vasquez
representative shall write his name, and the (1970), the court considered a testator
witnesses shall sign each and every page suffering from Glaucoma as legally
except the last page (Art. 805, CC) blind.
_____________
 Exceptions:
 When the will consists of only one Requisites for a Holographic Will—
page 1. In writing (Art. 804, CC)
 Abangan vs. Abangan, (1919): 2. In a language known to the testator (Art.
When the will consists of only two 804, CC)
pages, the first of which contains all 3. Entirely written, dated and signed in the
dispositions and is signed at the hand of the testator himself (Art. 810, CC)
bottom by the testator and the
witnesses, and the second page
contains only the attestation clause IV. Qualifications of Witnesses to a
duly signed at the bottom by the Notarial Will
witnesses.
 In the case of Matias vs. Salud (1957), Qualifications (Art. 820, CC)—
the use of thumbprint was allowed. 1. Of sound mind
2. Aged 18 years or over
 Icasiano vs. Icasiano, (1964): The 3. Not blind, deaf or dumb
inadvertent failure of one witness to affix 4. Able to read and write
his signature to one page of a
testament, due to the simultaneous Disqualifications (Art. 821, CC)—
lifting of two pages in the course of 1. Person not domiciled in the Philippines
signing, is not per se sufficient to justify 2. Those who have been convicted of
denial of probate. falsification, perjury, or false testimony.
6. PAGE NUMBERINGS: Numbered

correlatively (Art. 805, CC), i.e., Page One Interested witness (Art. 823, CC)—
of Five pages
General Rule Exception
Devises or legacies in If there are three other
7. Acknowledged before a notary public by favor of a spouse, parent competent witnesses, the
the testator and the witnesses (Art. 806, CC) or child who also attests device or legacy shall be
 In the case of Cruz vs. Villasor (1973) to the will as a witness valid and the interested
the court ruled that the Notary public shall be void witness shall be treated
cannot be considered a third witness. as a mere surplasage
He cannot acknowledge before himself
his having signed the will. To allow such  Creditors are not incompetent to be
would have the effect of having only two witnesses (Art. 824, CC)
attesting witnesses to the will which  Supervening incompetency shall not prevent
the allowance of the will (Art. 822, CC)

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V. Qualifications of Witnesses to a 6. Only the free portion can be disposed of

Notarial Will by institution.
Notarial Will v. Holographic Will—  A voluntary heir who dies before the testator
Notarial Will Holographic WIll
or proves to be incapacitated transmits 63
nothing to his heirs (Art. 851, CC)
SUCCESSION
NOTARIAL codicil ONLY Notarial Codicil; or
Holographic Codicil; or
Additional dispositions Three principles in institution of heirs—
below the signature, 1. Equality of heirs (Art. 846, CC)
dated and signed in the a. Heirs instituted without designation of
hand of the testator. shares shall inherit in equal parts
b. NOTE: This applies even to institution of
 Codicil (Art. 825, CC)- it is a supplement full and half-blood siblings.
or addition to a will, made AFTER the
execution and annexed to be taken as 2. Individuality of institution (Art. 847, CC)
part thereof, by which any disposition  Example: I designate A, B, and the
made in the original is explained, children of C. Unless otherwise stated, if
added to, or altered. C has two children, the estate will be
distributed in four equal parts.
Effect of insertion written by another person 3. Simultaneity of institution (Art. 849, CC)
on the validity of a holographic will)—  Example: I designate my brother A and
his children. A and his children will
When made Effect inherit at the same time, unless
After the execution, Insertion considered not otherwise expressly stated that they will
without consent of written. Validity cannot be inherit successively.
testator defeated by the malice or
caprice of a third person
Institution based on a false cause (Art. 850,
After execution, with Will is valid, insertion is
consent void.
CC)—
After execution, validated Insertion becomes part of GENERAL RULE EXCEPTION
by testator’s signature the will. Entire will False cause is If the testator would
becomes void because it considered not written not have made the
is not wholly written by and the institution will institution had he
the testator. take effect known the false cause,
Contemporaneous to the Will is void because it is the institution would
execution of the will not written entirely by the NOT take effect
testator
 Example: I designate A to half of the
estate ONLY because he is the husband
VI. Institution of Heirs of my daughter. Note that the reliance
(Asked in ’94, ’05, ’06, and ’08) on the false cause must be clear and
unmistakable.
Definition (Art. 841, CC) —
It is an act by virtue of which a testator
designates in his will the persons who VII. Applicable Principles of Private
are to succeed him. International Law
Requisites for a valid institution—
Governing Law As to Time of Execution of
1. Testator has capacity to make the
Will—
institution
2. The institution is made in a will
Aspect of the Will Governing Law
3. Institution is made personally by the Formal Validity Law in force at the time
testator and is not left to a third person the will was made
4. Persons instituted must be identified or Intrinsic Validity Law of decedent’s
identifiable nationality at the time of
5. There must be no preterition of compulsory his death (Art. 16, CC)
heirs

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Governing Law as to Place of Execution of made in consideration of each other.

Will— Such is prohibited under Art. 819, CC.
Prohibition is applicable only to joint
Place of wills executed by Filipinos.
Testator Execution of Will Governing Law
Philippines Philippine Law (Art. 64
16, CC)
SUCCESSION
Outside of the 1. Law of the country
Philippines in which it is executed Reference
Filipino (Art. 17, CC); or
2. Philippine Law (Art. Codicil (Arts. 825-826, CC)—
815, CC)
1. It is a supplement or addition to a will,
Alien Philippines 1. Philippine Law; or
2. Law of the country
2. made after the execution of a will,
of which testator is a 3. and annexed to be taken as a part of the
citizen or subject (Art. will,
817, CC) 4. by which any disposition made in the original
Outside of the 1. Law of the place will is explained, added to, or altered.
Philippines where the will is 5. in order that it may be effective, it shall be
executed (Art. 17, executed as in the case of a will.
CC); or
2. Law of the place Incorporation by Reference; Requisites (Art,
where the testator
827, CC)—
resides; or
3. Law of the 1. The document or paper referred to in the will
testator’s country; or must be in existence at the time of the
4. Philippine Law (Art. execution of the will.
816, CC) 2. The will must clearly describe and identify
the same, stating among other things the
Aspects of the Will Governed by the National number of pages thereof.
Law of the Decedent— 3. It must be identified by clear and
1. Order of succession; satisfactory proof as the document or paper
2. Amount of successional rights; referred to therein; and
3. Intrinsic validity of testamentary 4. It must be signed by the testator and the
provisions; and witnesses on each and every page,
4. Capacity to succeed. except in case of voluminous books of
account or inventories.
Joint Will—
1. A single testamentary instrument,
2. Which contains the wills of two or more IX. Revocation of Wills and
persons, Testamentary Dispositions
3. Jointly executed by them,
4. Either for their reciprocal benefit or for the
benefit of a third person. Modes of Revocation (Art. 830, CC)—
1. By implication of law; or
Mutual Wills— 2. By the execution of a will, codicil or other
1. Executed pursuant to an agreement writing executed as provided in the case of
between two or more persons, wills; or
2. Jointly executed by them, 3. By burning, tearing, canceling, or
3. Either for their reciprocal benefit or for the obliterating the will with the intention of
benefit of a third person. revoking it, by the testator himself, or by
some other person in his presence, and
Reciprocal Wills— by his express direction.
1. Testators name each other as beneficiaries
in their own wills, Note: The act contemplating revocation must be
2. under similar testamentary plans done at any time before the death of the
testator. The right of revocation cannot be
Note: A will that is both joint and mutual is one waived or restricted. (Art. 828, CC)
executed jointly by two or more persons,
the provisions of which are reciprocal and
which shows on its face the devises are

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Law Governing Revocation (Art. 829, CC)— extrinsic validity of such wills may be
examined.
Place of Testator’s Governing
Revocation Domicile Law Exceptions:
Philippines, or Philippine Law a. Acain vs Diongson (1987): When the will
Philippines some other is intrinsically void, on its face such that 65
country to rule on its formal validity would be a
SUCCESSION
Philippines Philippine Law futile exercise
1. Law of the b. Valera vs. Inserto, (1987): Claimants are
place where all heirs, and they consent, either,
the will was expressly or impliedly, to the submission
Foreign made; or of the question of intrinsic validity to the
Country 2. Law of the court.
Outside the place in which c. Pastor vs. CA, (1983): Probate court
Philippines the testator may pass upon the title thereto, but such
had his determination is provisional and not
domicile at the conclusive, and is subject to the final
time of decision in a separate action to resolve
revocation title.
Matters to be Proved in Probate—

Doctrine of Dependent Relative Revocation— 1. Whether the instrument which is offered for
Molo vs. Molo, (1951): The rule that where probate is the last will and testament of
the act of destruction is connected with the the decedent
making of another will so as to fairly raise 2. Whether the will has been executed in
the inference that the testator meant the accordance with the formalities
revocation of the old to depend upon the prescribed by law
efficacy of the new disposition intended to 3. Whether the testator had testamentary
be substituted, the revocation will be capacity at the time of execution of the will
conditional and dependent upon the
efficacy of the new disposition; and if for Grounds for Disallowance of Will (Art. 839,
any reason, the new will intended to be CC; Rule 76, Sec 9) (SUM IFF)—
made as a substitute is inoperative, the 1. If the Signature of the testator was procured
revocation fails and the original will by fraud;
remain in full force. 2. If it was procured by Undue and improper
pressure and influence, on the part of the
beneficiary or some other person;
X. Allowance and Disallowance of Wills 3. If the testator acted by Mistake or did not
intend that the instrument he signed should
be his will at the time affixing his signature
Probate— thereto;
 It is a Special Proceeding required to 4. If the testator was Insane or otherwise
establish the validity of a will and in order to mentally incapable of making a will at the
pass real or personal property (Art. 838, CC) time of its execution;
5. If the Formalities required by law have not
 Mercado vs. Santos (1938): The probate of been complied with; or
a will by the probate court having jurisdiction 6. If it was executed through Force or under
thereof is usually considered as conclusive duress, or the influence of fear, or threats.
as to its due execution and validity, and is
also conclusive that the testator was of Note: This list on the grounds for disallowance
sound and disposing mind at the time when of will is exclusive.
he executed the will, and was not acting
under duress, menace, fraud, or undue Revocation v. Disallowance—
influence, and that the will is genuine and
not a forgery. Revocation Disallowance
Voluntary Act of the Given by Judicial Decree
 General Rule: In probate proceedings, the Testator
probate court cannot inquire into the intrinsic With or Without Cause Must always be for a
validity of testamentary provisions. Only the legal cause

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May be partial or total Always total, except 4. Fideicommissary

when the ground of fraud  If the testator institutes an heir with an
of influence for example obligation to preserve and to deliver to
affects only certain another the property so inherited. The
portions of the will
heir instituted to such condition is called
the First Heir or the Fiduciary Heir; the 66
one to receive the property is the
SUCCESSION
XI. Substitution of Heirs fideicommissary of the second heir. (Art.
863, CC)
Definition of Substitution (Art. 857, CC)—
1. It is the appointment of another heir, Requisites of a Fideicommisary Substitution
2. So that he may enter into the inheritance in (Arts. 863-865, CC)—
default of the heir originally instituted. 1. A Fiduciary or First Heir instituted is
entrusted with the obligation to preserve
Classes of Substitution— and to transmit to a Fideicommissary
1. Simple or Common: The testator may Substitute or Second Heir the whole or part
designate one or more persons to substitute of the inheritance.
the heir/s instituted in case the heirs should: 2. The substitution must not go beyond one
a. die before him (predecease), degree from the heir originally instituted.
b. should not wish to accept the 3. The Fiduciary Heir and the
inheritance (repudiation), or Fideicommissary are living at the time of
c. should be incapacitated to accept the the death of the testator.
inheritance (incapacitated). (Art. 859, 4. The fideicommissary substitution must be
CC) expressly made.
2. Brief or Compendious (Art. 860, CC) 5. The fideicommissary substitution is imposed
a. Brief – Two or more persons were on the free portion of the estate and
designated by the testator to substitute never on the legitime
for only one heir
b. Compendious – One person is Note:
designated to take the place of two or a. Palacios vs. Ramirez (1982): “Degree”
more heirs refers to degree of relationship.
3. Reciprocal b. PCIB vs. Escolin (1974): In the absence
 If the heirs instituted in unequal shares of an obligation on the part of the first
should be reciprocally substituted, the heir to preserve the property for the
substitute shall acquire the share of the second heir, there is no fideicommissary
heir who dies, renounces, or is substitution.
incapacitated, unless it clearly appears
that the intention of the testator was Effects of predecease of the first
otherwise. If there is more than one heir/fiduciary or the second
substitute, they shall have the same heir/fideicommisary—
share in the substitution as the
institution.  Legend:
 Example (only 1 substitute): If two heirs  T – Testator
are reciprocally substituted, then if one  FH – First Heir / Fiduciary
of them dies before the testator dies,  SH – Second Heir / Fideicommissary
renounces, or turns out to be Substitute
incapacitated, the other will get his
share, regardless of whether or not their  Situation 1: If the following is the sequence
shares are equal. of death of the three parties: FH – SH – T,
 Example (more than 1 substitute): A is who will inherit? The legal heirs. There is
instituted to 1/3, B to 1/6, and C to ½. If no fideicommissary substitution because FH
C dies before the testator, renounces or and SH are not living at the time of the
turns out to be incapacitated, then the testator’s death. (Art 863, CC)
other two will get his shares in the same
proportion as in the institution. A will get  Situation 2: T – SH – FH, who will inherit?
twice as much as B (because his share The SH and his heirs under Art. 866, CC.
of 1/3 in the institution is twice the size This is because the SH passes his rights to
of B’s share of 1/6) his own heirs when he dies before FH.

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 Situation 3: FH – T – SH, who will inherit? Specific Rules on Legitimes—

No specific provision in law, but SH inherits 1. Direct Descending Line
because the T intended him to inherit. a. Rule of Preference between lines (Art
978 and 985, CC)
 Those in the direct descending line
XII. Legitimes shall exclude those in the direct 67
ascending and collateral lines; and
SUCCESSION
 Those in the direct ascending line
Definition of Legitime (Art. 886, CC)—
shall, in turn, exclude those in the
1. It is that part of the testator’s property which
collateral line.
he cannot dispose of,
b. Rule of Proximity (Art 926, CC)
2. Because the law has reserved it for his
 The relative nearest in degree
compulsory heirs.
excludes the farther one
c. Right or representation ad infinitum in
Classes of Compulsory Heirs (Art. 887, CC)—
case of predecease, incapacity, or
1. Primary: Those who have precedence
disinheritance (Art 972 and 992, CC)
over and exclude other compulsory heirs:
 For decedents who are Legitimate
 Legitimate Children and Legitimate
Children, only the Legitimate
Descendants with respect to their
Descendants are entitled to right of
Legitimate Parents and Ascendants
representation.
2. Secondary: Those who succeed only in
 For decedents who are Illegitimate
the absence of the Primary compulsory
Children, both the Legitimate and
heirs:
the Illegitimate Descendants can
a. Legitimate Parents and Legitimate
represent, only with respect to the
Ascendants, with respect to their
decedent’s illegitimate parents.
Legitimate Children and Descendants.
d. If all the Legitimate Children
(They will inherit only in default of
repudiate their legitime, the next
legitimate children and their
generation of Legitimate Descendants
descendants)
may succeed in their own right.
b. Illegitimate Parents with respect to their
Illegitimate Children. (They will inherit
2. Direct Ascending Line
only in default of the illegitimate and
a. Rule of division between lines
legitimate children and their respective
 The father and the mother shall
descendants). Note that other
illegitimate ascendants are not included. inherit equally if both living. One
3. Concurring: Those who succeed together succeeds to the entire estate of the
with the primary or the secondary child if the other is dead. (Art. 986,
compulsory heirs: CC)
a. Widow or Widower / Surviving Spouse  In default of the mother and the
(Legitimate) father, the ascendants nearest in
b. Illegitimate Children and Illegitimate
degree will inherit. (Art. 987)
Descendants
 If there are more than one relative of
If the testator is a If the testator is an the same degree but of different
LEGITIMATE CHILD: ILLEGITIMATE CHILD: lines, one half will go to the paternal
1. LC and descendants 1. LC and descendants ascendants and the other half to the
2. In default of No. 1, LP 2. ILC and descendants
and ascendants maternal ascendants. (Art. 987)
3. SS 3. In default of Nos. 1-2. b. Rule of equal division
ILP only  The relatives who are in the same
4. IC and descendants 4. SS degree shall inherit in equal shares.
(Art 987)
Legend:
LC – Legitimate Children
ILC – Illegitimate Children
SS – Surviving Spouse
LP – Legitimate Parents
ILP – Illegitimate Parents

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Summary of Legitimes of Compulsory Heirs—

(Asked in ’82, ’85, ’86, ’97, ’99, ’03, and ’05)
Surviving LC & SS ILC LP & ILP
Relatives Descendants Ascendants
1 LC alone ½ (divided by #
of children) 68
2 1 LC, SS ½ ¼
SUCCESSION
3 LC, SS ½ (divided by # Same as
of children) share of 1
LC
4 LC, ILC ½ ½ share of 1
LC
5 1 LC, SS, ILC ½ ¼ ½ share of 1
(preferred) LC
6 2 or more LC, SS, ½ (divided by # Same as ½ share of 1
ILC of children) share of 1 LC
LC
7 LP alone ½
8 LP, ILC ¼ ½
9 LP, SS ¼ ½
1/8
10 LP, SS, ILC ¼ ½
11 ILC alone ½ (divided
by # of
children)
1/3 1/3
12 ILC, SS (divided
by # of
children)
1/3
13 SS alone ½ or if
marriage in
articulo
mortis
14 ILP alone ½
15 ILP, SS ¼ ¼
1/3 1/3 1/3
16 Adopter, ILC, SS (adopter)
Steps in Determining the Legitime of Remedy of a Compulsory Heir in case of

Compulsory Heirs— Impairment of Legitime—
1. Determine the gross value of the estate at
the time of the death of the testator. Extent and Nature of Remedy
2. Determine all debts and charges which are Impairment
chargeable against the estate. Total omission of a Annulment of institution
3. Determine the net value of the estate by compulsory heir who is a and reduction of legacies
direct descendant or and devises (Art. 854, CC)
deducting all the debts and charges from the
ascendant (preterition)
gross value of the estate. Testamentary dispositions Reduction of the
4. Collate or add the value of all donations inter impairing or diminishing disposition insofar as they
vivos to the net value of the estate. the legitime may be inofficious or
5. Determine the amount of the legitime from excessive (Art. 907, CC)
the total thus found. Partial impairment Completion of the legitime
6. Impute the value of all donations inter vivos (Art. 906, CC)
made to strangers against the disposable Impairment by inofficious Collation – reduction of
free portion and restore it to the estate if the donations donations (Arts. 771 and
donation is inofficious. 911, CC)
7. Distribute the residue of the estate in
accordance with the will of the testator.
Note: Please see the Illustrative Integrative
Problems in Chapter VI for the application of
these steps.

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XIII. Preterition or from a brother or sister (Source) by

gratuitous title,
(Asked in ’88, ’99, ’00, ’01 and ’08)
2. That the Prepositus died without an issue,
3. That the property is inherited by another
A. Concept of Preterition (Art. 854, CC)
ascendant (Reservista) by operation of law,
1. There must be a total omission of one,
some or all of the heir/s in the will.
and
rd
69
4. That there are relatives within the 3 degree
2. 2. The omission must be that of a
SUCCESSION
(Reservatarios) belonging to the line from
compulsory heir.
which said property came.
3. 3. The compulsory heir omitted must be of
___________
the direct line.
4. The omitted compulsory heir must be living
C. Reserva Minima v. Reserva Maxima
at the time of the testator’s death or must
at least have been conceived before the
Situation—
testator’s death.
1. The prepositus acquired property
B. Effects of Preterition (Art. 854, CC) gratuitously from an ascendant or a brother
1. The institution of the heir is annulled. or sister
2. Devises and legacies shall remain valid as 2. In his will, he institutes as his heir his
long as they are not inofficious. ascendant (who is also a compulsory heir)
3. If the omitted compulsory heir should die such that the ascendant receives half of the
before the testator, the institution shall be estate by operation of law as legitime and
effective, without prejudice to the right of
representation. the other half by testamentary disposition
 Neri vs. Akutin (1941): When there are
no devises and legacies, preterition will Problem—
result in the annulment of the will and Will the property acquired gratuitiously by
give rise to intestate succession. the prepositus from the source be treated as
acquired by the ascendant-heir by operation
XIV. Reserva Troncal of law (legitime) and therefore reservable or
(Asked in ’79, ’82, ’85, and ’87) by testamentary disposition?
A. Concept of Reserva Troncal (Art. 891,
CC) Two Views—
1. Reserva Maxima: The entire property will be
Situation— considered acquired as legitime and
1. A descendant (prepositus) inherits or therefore wholly reservable
acquires property from an ascendant 2. Reserva Minima: One half is reservable, the
(source) by gratiutious title or from a brother
other half is not subject to reserva troncal
or sister
2. The same property is inherited by another (Tolentino, p. 284)
ascendant (reservista) or is otherwise ___________
acquired by him by operation of law from the
said descendant (prepositus) D. Extinguishment of the Reserva
(Tolentino, p. 300-305) (LDD-RRP)
Then an obligation arises— 1. Loss of the reservable property
The said ascendant (reservista) must 2. Death of the reservista
reserve the property for the benefit of the 3. Death of all the relatives within the third
relatives of the deceased descendant within degree belonging to the line from which the
the third civil degree and who belong to the
property came
line from which the said property came
(reservatorios). 4. Renunciation by the reservatorios
___________ 5. Registration of the reservable property
under the Torrens system as free
B. Requisites for Reserva Troncal 6. Prescription, when the reservista holds the
(Chua vs. CFI and Gonzales vs. CFI) property adversely against the reservatorios,
1. That the property was acquired by a as free from reservation
descendant (Prepositus) from an ascendant

lOMoARcPSD|3291925
XV. Disinheritance room for doubt as to who is intended to be

disinherited.
(Asked in ’82, ’84, ’99, ’00, and ’08)
2. It must be for a cause designated by law.
3. It must be made in a valid will.
A. Definition of Disinheritance (Art. 915, CC)
4. It must be made expressly, stating the cause
1. It is the act by which the testator
2. For just cause
in the will itself. 70
5. The cause must be certain and true, and
3. Deprives a compulsory heir of his right to the
SUCCESSION
must be proved by the interested heir if the
legitime.
person should deny it.
6. It must be unconditional.
B. Requisites of a Valid Disinheritance
7. It must be total.
1. Heir disinherited must be designated by
name or in such a manner as to leave no
_________________________________________________________________________________
C. Summary of Causes of Disinheritance
Grounds for Disinheritance 919 920 921 1032

1 Guilty or Convicted of Attempt Against the Life of the Testator, Spouse, * * * *
Ascendant or Descendant
2 Accused Testator or Decedent of Crime Punishable by Imprisonment of * * * *
6 years or more, and Found Groundless or False
3 Causes testator or decedent to Make a Will or Change one by Fraud, * * * *
Violence, Intimidation, or Undue Influence
4 Unjustified Refusal to Support Testator * * *
5 Convicted of Adultery or Concubinage with Spouse of Testator or * * *
Decedent
6 Maltreatment of testator by Word and Deed *
7 Leading a Dishonorable or Disgraceful Life *
8 Conviction of Crime which carries the penalty of Civil Interdiction *
9 Abandonment of Children or Inducing Children to Live Corrupt and * *
Immoral Life or Against Attempted Virtue
10 Loss of Parental Authority * *
11 Attempt by One Parent Against the Life of the Other UNLESS there is *
Reconciliation Between Parents
12 Spouse Has Given Cause for Legal Separation *
13 Failure to Report Violent Death of Decedent Within One Month UNLESS *
Authorities Have Already Taken Action
14 Force, Violence, Intimidation, or Undue Influence to Prevent Another *
from Making a Will or Revoking One Already Made or Who Supplants or
Alters the Latter’s Will
15 Falsifies or Forges Supposed Will of the Decedent *
 Art, 919, CC: Children and Descendants

 Art. 920, CC: Parents and Ascendants
 Art. 921, CC: Spouse
 Art. 1032, CC: Unworthiness
D. Modes of Revocation disinheritance, he thereby submits it to the

1. Reconciliation (Art 922, CC) rules on disinheritance. Thus,
2. Subsequent institution of the disinherited reconciliation renders the disinheritance
heir ineffective.
3. Nullity of the will which contains the
disinheritance.
Note: The moment that testator uses one of the

acts of unworthiness as a cause for

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XVI. Legacies and Devises belonged to him

The thing bequeathed Effective
Legacy and Devise Distinguished— afterwards becomes his by
whatever title
LEGACY DEVISE
A gift of personal A gift of real property  Legacy or devise of thing already belonging 71
property given in a will given in a will to the legatee or devisee
SUCCESSION
It is bequeathed It is devised
STATUS OF EFFECT ON THE
Persons Charged With the Duty to Give PROPERTY GIVEN LEGACY/DEVISE
Legacies and Devises in a Will— BY LEGACY/DEVISE
1. Compulsory heir, provided, their legitimes The thing already Ineffective
are not impaired (Art. 925, CC) belongs to the legatee
2. Voluntary heir or devisee at the time
3. Legatee or devisee can be charged with of the execution of the
the duty of giving a sub-legacy or sub- will (Art. 932, CC)
devisee but only to the extent of the value of The thing is subject to Valid only as to the
the legacy or devise given him (Art. 925, an encumbrance or interest or
CC) interest of another encumbrance
4. The estate represented by the executor person (Art. 932, CC)
or administrator, if no one is charged with Legatee or devisee Ineffective
this duty to pay or deliver the legacy or subsequently alienates
devise in the will the thing (Art. 933,CC)
a. If there is an administration proceeding, After alienating the Ineffective
it constitutes a charge upon the estate. thing, the legatee or
b. If there is no administration proceeding, devisee subsequently
it is a charge upon the heirs. reacquires it
gratuitously (Art. 933,
CC)
Validity and Effect of Legacy or Devise— After alienating the Legatee or devisee
 Legacy or devise of a thing belonging to thing, the legatee or can demand
another (Art. 930, CC) devisee acquires it by reimbursement from
onerous title (Art. 933, the heir or estate
STATUS OF PROPERTY EFFECT ON CC)
GIVEN BY THE LEGACY/
LEGACY/DEVISE DEVISE
Testator erroneously Void
believed that the property

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Different Objects of Legacies and Devises (Art. 934-944,CC)—

1. Legacy of a thing pledged or mortgaged to secure a debt (Art 934, CC)
2. Legacy of credit, or remission or release of a debt (Art 935 CC)
3. Legacy to the debtor of thing pledged by him (Art 936, CC)
4. Legacy or devise to a creditor if the testator orders the payment of a debt (Art 939, CC)
5. Alternative legacies and devises (Art 940, CC) 72
6. Legacy of generic personal property or indeterminate real property (Art 941, CC)
SUCCESSION
7. Legacy of education (Art 944, CC)
8. Legacy of support (Art 944, CC)
OBJECTS OF LEGACY OR EFFECT

DEVISE
Thing pledged or mortgaged to  Estate is obliged to pay the debt
secure a debt  Other charges pass to the legatee or devisee
Credit or remission or release of a  Effective only as regards the credit or debt existing at the
debt time of the testator’s death
 Legacy lapses if the testator later brings action against the
debtor
 If generic, comprises all credits/debts existing at time of
execution of will
Thing pledged by debtor  Only the pledge is extinguished; the debt remains
To a creditor  Shall not be applied to his credit unless the testator so
declares
Order of payment of a debt  If testator does not really owe the debt, the disposition is
void
 If the order is to pay more that the debt, the excess is not
due
 This is without prejudice to the payment of natural
obligations
Alternative legacies and devises  The choice is with the heir, or the executor or administrator
 If the heir, legatee or devisee dies the right passes to their
heirs
 Once made, the choice is irrevocable
Legacy of generic personal property  Legacy is valid even if there are no things of the same kind
or indeterminate real property in the estate
 Devise of indeterminate real property valid only if there are
immovable property of the same kind in the estate
 The choice belongs to the heir, legatee or devisee or the
executor or administrator
Legacy of education  Lasts until the legatee is of age or beyond the age of
majority in order that he may finish some professional,
vocational or general course provided he pursues his
course diligently
 If testator did not fix the amount it is fixed in accordance
with the social standing and circumstances of the legatee
and the value of the estate
Legacy of support  Lasts during lifetime of legatee
 If the testator used to give the legatee a sum of money for
support, give the same amount unless it is markedly
disproportionate to the estate
 If testator did not fix the amount it is fixed in accordance
with the social standing and circumstances of the legatee
and the value of the estate

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Order of Payment In Case the Estate Is Not Sufficient to Cover All the Legacies and Devises—
ART. 911 ART. 950

Order of Preference Order of Preference
(LIPO) (RPSESO)
 Legitime of compulsory heirs  Remuneratory legacy/devise 73
 Donations Inter vivos  Preferential legacy/devise
SUCCESSION
 Preferential legacies or devises  Legacy for Support
 All Other legacies or devises pro rata  Legacy for Education
 Legacy/devise of Specific, determinate thing
which forms a part of the estate
 All Others pro rata
Application: Application:
 When the reduction is necessary to  When there are no compulsory heirs and the
preserve the legitime of compulsory entire estate is distributed by the testator as
heirs from impairment whether there are legacies or devises; or
donations inter vivos or not; or  When there are compulsory heirs but their
 When, although, the legitime has been legitime has already been provided for by the
preserved by the testator himself there are testator and there are no donations inter
donations inter vivos. vivos.
NOTE: NOTE:
Art. 911, CC governs when there is a conflict Art. 950, CC governs when the question of
between compulsory heirs and the devisees reduction is exclusively among legatees and
and legatees. devisees themselves.
How Legacy or Devise Delivered (Art. 951,

CC)—
1. The very thing bequeathed shall be
delivered and not its value
2. With all its accessions and accessories
3. In the condition in which it may be upon
the death of the testator
4. Legacies of money must be paid in cash
Ground for Revocation of Legacies and

Devises (Art. 957, CC) (TALO)—
1. Testator Transforms the thing such that it
does not retain its original form or
denomination
2. Testator Alienates the thing by any title or
for any cause. Reacquisition of the thing by
the testator does not make the legacy or
devise valid, unless it is effected by right
of repurchase.
3. Thing is totally Lost during the lifetime or
after the death of the testator
4. Other causes: nullity of will, non-compliance
with suspensive condition, sale of the thing
to pay the debts of the deceased during the
settlement of his estate.

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CIVIL LAW REVIEWER Chapter III. INTESTATE SUCCESSION
Note: In all cases where there has been an

Chapter III. Intestate Succession institution of heirs, follow the I.S.R.A.I order:
a. If the Institution fails, Substitution
I. Causes for Legal or Intestate Succession occurs.
II. The Intestate or Legal Heirs b. If there is no substitute, the right of
III. Fundamental Underlying Principles in Legal
or Intestate Succession
Representation applies in the direct 74
IV. Relationship descending line to the legitime if the
SUCCESSION
V. The right of Representation vacancy is caused by predecease,
VI. Order of Legal or Intestate Succession incapacity, or disinheritance.
VII. Concurrence in Legal or Intestate Succession c. The right of Accretion applies to the
VIII. Outline of Intestate Shares free portion when the requisites in Art.
IX. Order of Concurrence in the case of an 1016 are present.
Adopted Child d. If there is no substitute, and the right of
Representation or Accretion are not
The Civil Code does not state a definition of proper, the rules on Intestate
legal or intestate succession. Art. 960 only succession shall apply.
enumerates the instances when legal
succession takes place. This enumeration is not
exclusive, as there are other instances where II. The Intestate or Legal Heirs
intestacy may occur, as listed below.
1. Relatives
a. Legitimate ascendants
b. Illegitimate parents
I. Causes for Legal or Intestate c. Legitimate children
Succession d. Illegitimate children
1. If a person dies without a will (Art 960[1]) e. Surviving Spouse
2. If a person dies with a void will (Art 960[1]) f. Brothers, sisters, nephews and nieces
3. If a person dies with a will which has (BSNN)
subsequently lost its validity (Art 960[1]) g. Other collateral relatives
4. When the will does not institute an heir (Art 2. Surviving spouse
960[2]) 3. State (through escheat proceedings)
5. When the will does not dispose of all the
property belonging to the testator. Legal
succession shall take place only with III. Fundamental Underlying Principles in
respect to the property which the testator Legal or Intestate Succession
has not disposed (Art 960[2])
6. If the suspensive condition attached to the
institution of the heir does not happen or is Rule of Preference between Lines—
not fulfilled (Art 960[3]) 1. Those in the direct descending line shall
7. If the heir dies before the testator (Art exclude those in the direct ascending and
960[3]) collateral lines;
8. If the heir repudiates the inheritance, there 2. Those in the direct ascending line shall, in
being no substitution, and no right of turn, exclude those in the collateral line.
accretion takes place (Art 960[3])
9. When the heir instituted is incapable of Rule of Proximity—
succeeding, except in cases provided in The relative nearest in degree excludes the
the Civil Code (Art 960[4]) farther one. (Art. 962, par.1 CC), saving the right
10. Preterition – Intestacy may be total or partial of representation when it properly takes place.
depending on whether or not there are
legacies or devises (Balane, p.426) Rule of Equal Division—
11. Upon the expiration of a resolutory term 1. The relatives who are in the same degree
attached to the institution of heir (Balane, shall inherit in equal shares. (Arts. 962
p.426) par.2, 987 and 1006, CC)
12. Upon fulfillment if a resolutory condition 2. Exceptions: (Balane pp.427-428)
attached to the institution of heir, rendering a. the rule of preference of lines
the will ineffective (Balane, p.426) b. the distinction between legitimate and
illegitimate filiation (the ratio under
present law is 2:1) (Art 983, in relation to
Article 895 as amended by Article 176
FC)

lOMoARcPSD|3291925
c. the rule of division by line in the  In adoption, the legal filiation is personal and
ascending line Article 987 par.2) exists only between the adopter and the
d. the distinction between full-blood and adopted. The adopted is deemed a
half-blood relationship among brothers legitimate child of the adopter, but still
and sisters, as well as nephews and remains as an intestate heir of his natural
nieces. (Art 1006 and 1008) parents and other blood relatives. (Art. 189, 75
e. representation FC)
SUCCESSION
Rule of Barrier between the legitimate family
and the illegitimate family (the iron-curtain V. The Right of Representation (Art. 970,
rule)— CC)
The illegitimate family cannot inherit by intestate
succession from the legitimate family and vice- (Asked in ’77, ’82, ’85, ’88, ’92, ’97, and ’07)
versa. (Art. 992, CC)
 It is a right created by fiction of law;
Rule of Double Share for full blood  By virtue of which the representative is
collaterals— raised to the place and degree of the person
When full and half-blood brothers or sisters, represented;
nephews or nieces, survive, the full blood shall  And acquires the rights which the latter
take a portion in the inheritance double that of would have if he were living or if he would
the half-blood. (Arts. 895 and 983, CC) have inherited.
Note: Important Concepts—

1. If one of the legitimate ascendants,  Representation is only allowed with respect
illegitimate parents, legitimate children or to inheritance conferred by law (i.e., as to
illegitimate children survives, the brother, legitimes and intestate shares [ Art 923,
sisters, nephews, and nieces (BSNN) are CC]), in cases of incapacity,
excluded disinheritance, and predecease of an
2. If one of the legitimate ascendants, heir.
illegitimate parents, legitimate children,
illegitimate children or surviving spouse  There is no representation in voluntary
survives, the other collateral relatives and succession (by will). (Art 856, CC)
the state are excluded.
3. If any of the heirs concur in legitimes, then  There is also no representation in
they also concur in intestacy. repudiation. Note, however that a
renouncer can represent, but cannot be
represented.
IV. Relationship (Arts. 963-969, CC)
 Representation takes place ad infinitum in
 Number of generations determines the direct descending line but never in the
proximity. (Art 963) direct ascending line. ( Art 972, CC)
 Each generation forms a degree. (Art 963)
 A series of degrees forms a line. (Art 964  In the collateral line, representation takes
par.1) place only in favor of the children of the
 A line may either be direct or collateral. (Art brothers or sisters (i.e., nephews and
964 par.1) nieces) whether of the full or half-blood (Art.
 A direct line is that constituted by the series 972, CC) and only if they concur with at
of degrees among ascendants and least one uncle or aunt. In this case, they
descendants (ascending and descending). share in the inheritance per stirpes. If the
(Art 964 par.2) children survive alone, they inherit in their
 A collateral line is that constituted by the own right and share in equal proportions or
series of degrees among persons who are per capita. (Art. 975)
not ascendants or descendants, but who
come from a common ancestor. (Art 964  Inheritance per stirpes means that the
par.3) representative/s shall not inherit more than
 Full blood – same father and mother. (Art what the person they represent would
967 par.1) inherit, if he were living or could inherit.
 Half-blood – only one of either parent is the (Art.975, CC)
same. (Art 967 par.2)

lOMoARcPSD|3291925
 The representative is called to the must be a legal heir of both the person he is
succession by the law and not by the person representing and the decedent.
represented. The representative does not
succeed the person represented but the one  Thus, illegitimate children can represent
whom the person represented would have illegitimate children parents in inheritance
succeeded. (Art. 971, CC) from illegitimate grandparents. (*Rationale: 76
Iron-curtain rule under Art. 992, CC)
SUCCESSION
 General Rule—
Grandchildren inherit from the  On the other hand, a legitimate child may
grandparents by right of represent either a legitimate or illegitimate
representation, if proper. parent in the inheritance of either a
legitimate or illegitimate grandparents. (Arts.
Exception— 902, 989,990)
Whenever all the children repudiate,
the grandchildren inherit in their own  Representation in Adoption (Asked in ’94,
right because representation is not ’04, and ’07)—
proper. (Art 969, CC) If the adopting parent should die before
the adopted child, the later cannot
 Right of representation in the collateral line represent the former in the inheritance
is only possible in INTESTATE succession. of the parents or ascendants of the
It cannot take place in testamentary adopter. The adopted child is not related
succession. to the deceased in that case, because
filiation created by fiction of law is
 In determining whether or not representation exclusively between the adopter and the
is proper, apply the DOUBLE HEIRSHIP adopted. (TOLENTINO pp. 448-449)
TEST (Art. 973, CC): the representative

(Asked in ’77, ’78, ’97, ’98, ’99, ’00, ’06, and ’08)
Decedent is a Legitimate Child Decedent is an Illegitimate Child Decedent is an Adopted Child
1 LC and LC and LC and

Legitimate descendants Legitimate descendants Legitimate descendants
2 LP and ILC and ILC and Illegitimate descendants
Legitimate ascendants Illegitimate descendants
3 ILC and ILP LP or ILP and
Illegitimate descendants Legitimate ascendants,
Adoptive parents
4 SS SS SS
5 Legitimate siblings, Illegitimate siblings, Siblings,
Nephews, Nephews, Nephews,
Nieces Nieces Nieces
6 Legitimate collateral relatives within State State
th
the 5 degree
7 State

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VII. Concurrence in Legal or Intestate Succession
INTESTATE HEIRS Excludes Excluded By Concurs With

LC and Ascendants, No one SS and
Legitimate descendants Collaterals and ILC
State 77
ILC ILP, No one SS
SUCCESSION
and Descendants Collaterals and LC and
State LP
LP and Collaterals and LC ILC and
Legitimate ascendants State SS
ILP Collaterals and LC and ILC SS
State
SS Collaterals other than No one LC, ILC, LP, ILP
siblings, nephews and nieces Siblings
Nephews
Nieces
Siblings, All other collaterals and LC, ILC, LP, ILP SS
Nephews State
Nieces
th
Other collaterals within 5 Collateral more remote in LC, ILC, LP, ILP and Collaterals in the same
degree degree and SS degree
State
State No one Everyone No one
VIII. Outline of Intestate Shares 5. Legitimate parents only

Divide the entire estate equally. (Art. 985,
(Asked in ’76, ’79, ’92, ’03, ’04, ’06, and ’08)
CC)
1. Legitimate children only
6. Legitimate ascendants only (excluding
a. Divide entire estate equally among all
parents)
legitimate children (Art. 979, CC)
Divide the entire estate equally but with the
b. Legitimate children include an adopted
observance of the rule of division by line
child.
(Art. 987, CC)
2. Legitimate children and Illegitimate
children
7. Legitimate parents and illegitimate
Divide entire estate such that each
children
illegitimate child gets ½ of what a legitimate
Legitimate parents get ½ of the estate,
child gets (Art. 983, CC and Art. 176, FC)
illegitimate children get the other ½ (Art.
991,CC)
3. Legitimate children and surviving spouse
a. Divide entire estate equally between the
8. Legitimate parents and surviving spouse
legitimate children and the surviving
Legitimate parents get ½ of the estate; The
spouse, the latter deemed as one child.
surviving spouse gets the other ½ (Art.
The same rule holds where there is only
997,CC)
one child.
b. “Children” as used in Art. 996 is
9. Legitimate parents, surviving spouse and
interpreted to include a situation where
illegitimate children
there is only one child.
Legitimate parents get ½ of the estate;
surviving spouse and the illegitimate child
4. Legitimate children. Surviving spouse,
each get ¼ each, the latter to share among
and Illegitimate children
themselves if more than one. (Art. 1000,
Divide the entire estate such that the
CC)
surviving spouse is deemed one legitimate
child and each illegitimate child getting ½ of
10. Illegitimate children only
what the legitimate child gets (Art. 996, CC
Divide the entire estate equally. (Art. 988,
and Art. 176, FC)
CC)

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11. Illegitimate children and surviving Divide the entire estate per capita, observing
spouse the 2 is to 1 ratio. (Arts. 975 and 1008, CC)
Illegitimate children get ½ of the estate; the
surviving spouse gets the other ½. (Art. 998, 21. Other collaterals (Arts. 1009 and 1010)
CC) a. Divide entire estate per capita.
th
b. Collateral relatives must be with the 5 78
12. Surviving spouse only degree of consanguinity.
SUCCESSION
Entire estate goes to the surviving spouse. c. Note: the nearer relative excludes the
(Art. 994/995, CC) more remote relatives.
13. Surviving spouse and illegitimate parents 22. State

Illegitimate parents get ½ and the spouse If there are no other intestate heirs, the
gets the other ½ (by analogy with Art. 997, State inherits the entire estate through
CC) escheat proceedings. (Art. 1011, CC)
14. Surviving spouse and legitimate brothers

and sisters, nephews and nieces IX. Order of Concurrence in the Case of
Surviving spouse gets ½ of the estate, while an Adopted Child (Art, 190, FC)
the rest gets the other ½ with the nephews
and nieces inheriting by representation if (Asked in ’79, ’86, ’04 and ’07)
proper. (Art. 1001, CC)
SURVIVORS SHARE
15. Surviving spouse and illegitimate
LC, ILC, SS As in the case of ordinary
brothers and sisters, nephews and intestate succession
nieces LP or ascendants or ILP ½
Surviving spouse gets ½ of the estate while Adopter ½
the rest gets the other ½ with the nephews LP or ascendants or ILP ½
and nieces inheriting by representation, if or Adopter
proper; Note that all the other relatives SS ½
should be “illegitimate” because of the iron- LP or ascendants ½
curtain rule. (Art. 994,CC) Adopter
ILC or descendants ½
16. Illegitimate parents only LP or ascendants 1/3
Adopter
Entire estate goes to the illegitimate parents.
SS 1/3
(Art 993, CC) ILC or descendants 1/3
Adopter alone Entire estate
17. Illegitimate parents and children of any Collateral blood relatives As in the case of ordinary
kind (whether legitimate or illegitimate intestate succession
child)
Illegitimate parents are excluded and do not
inherit; For the rule on the respective shares
of the children, see numbers 1, 2 or 10,
whichever is applicable.
18. Legitimate brothers and sisters only

Divide the entire estate such that full-blood
brothers/sisters gets a share double the
amount of a half-blood brother or sister. (Art.
1004 and 1006, CC)
19. Legitimate brothers and sisters, nephews

and nieces
Divide the entire estate observing the 2 is to
1 ratio for full and half blood relationships
with respect to the brothers and sisters, with
the nephews and nieces inheriting by
representation, if proper. (Art. 1005 & 1008,
CC)
20. Nephews and nieces only

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CIVIL LAW REVIEWER Chapter IV. PROVISIONS common to TESTAMENTARY and INTESTATE SUCCESSION
 There can only be accretion if there is an

Chapter IV. Provisions Common to institution of heirs with respect to specific
Testamentary and Intestate Succession properties. (Art 1016, CC)
I. Accretion  Among compulsory heirs, there can only be

II. Capacity to Succeed accretion with respect to the free portion. 79
III. Acceptance or Repudiation of Inheritance There can be no accretion with respect to
IV. Collation
SUCCESSION
the legitimes. (Arts. 1021 and 1018, CC)
 The heirs to whom the portion goes by the

I. Accretion right of accretion take it in the same
proportion that they inherit. (Art. 1019, CC)
A. Definition of Accretion (Art. 1015, CC)
 The heirs to whom the inheritance accrues
It is a right by virtue of which, when two or more shall succeed to all the rights and
persons are called to the same inheritance, obligations which the heir who renounced or
devise or legacy, the part assigned to one who could not receive it would have had. (Art.
renounces or cannot receive his share or who 1020, CC)
died before the testator is added or incorporated
to that of his co-heirs, co-devisees, or co-  In testamentary succession, when the right
legatees. of accretion does not take place, the vacant
portion of the instituted heirs, if no substitute
 Accretion happens when there is has been designated, shall pass to the legal
repudiation, incapacity, or predecease of heirs of the testator, who shall receive it with
an heir. the same charges and obligations. (Art
1022, CC)
 It is the mechanism where the share of an
heir is increased by vacant shares vacated  Accretion shall also take place among
by heirs who cannot inherit for various devisees, legatees and usufructuaries under
reasons. (RATIONALE: the decedent the same conditions established for heirs.
intended to give the property to nobody but (Art 1023, CC)
the co-heirs.)
____________________________________________________________________________________
Effect of Predecease, Incapacity, Disinheritance or Repudiation in Testamentary and Intestate

Succession—
CAUSE OF VACANCY TESTAMENTARY SUCCESSION INTESTATE

LEGITIME FREE PORTION SUCCESSION
Predecease Representa-tion Accretion Representation
Intestate Succession Intestate Succession Intestate
Succession
Incapacity Representa-tion Accretion Representation
Intestate Succession Intestate Succession Intestate
Succession
Disinheritance Representa-tion - -
Intestate Succession
Repudiation Intestate Succession Accretion Accretion

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II. Capacity to Succeed  BASED ON ACTS OF UNWORTHINESS

(Art. 1032, CC) –
The following are incapable of succeeding
A. Requisites for Capacity to Succeed by
by reason of unworthiness:
Will or by Intestacy (Art. 1024 – 1025,
a. Parents who have abandoned their
CC)
 The heir, legatee or devisee must be living
children or induced their daughters to 80
lead a corrupt or immoral life, or
or in existence at the moment the
SUCCESSION
attempted against their virtue;
succession opens; (Art 1025) and
b. Any person who has been convicted of
 He must not be incapacitated or disqualified
an attempt against the life of the
by law to succeed. (Art 1024, par.1)
testator, his or her spouse,
descendants, or ascendants;
B. Who Are Incapable of Succeeding
c. Any person who has accused the
testator of a crime for which the law
 BASED ON UNDUE INFLUENCE OR
prescribes imprisonment for six years or
INTEREST (Art. 1027, CC) – PIGRAP
more, if the accusation has been found
 Priest who heard the last confession of
groundless;
the testator during his last illness, or the
d. Any heir of full age who, having
minister of the gospel who extended
knowledge of the violent death of the
spiritual aid to him during the same
testator, should fail to report it to an
period;
officer of the law within a month, unless
 Individuals, associations and
the authorities have already taken
corporations not permitted by law to
action; this prohibition shall not apply to
inherit;
cases wherein, according to law, there is
 Guardian with respect to testamentary
no obligation to make an accusation;
dispositions given by a ward in his favor
e. Any person convicted of adultery or
before the final accounts of the
concubinage with the spouse of the
guardianship have been approved, even
testator;
if the testator should die after the
f. Any person who by fraud, violence,
approval thereof; except if the guardian
intimidation, or undue influence should
is his ascendant, descendant, brother,
cause the testator to make a will or to
sister, or spouse;
change one already made;
 Relatives of the priest or minister of the
g. Any person who by the same means
gospel within the fourth degree, the
prevents another from making a will, or
church, order, chapter, community,
from revoking one already made, or who
organization, or institution to which such
supplants, conceals, or alters the latter's
priest or minister may belong;
will;
 Attesting witness to the execution of a
h. Any person who falsifies or forges a
will, the spouse, parents, or children, or
supposed will of the decedent.
any one claiming under such witness,
spouse, parents, or children;
C. Pardon of Acts of Unworthiness
 Physician, surgeon, nurse, health officer
or druggist who took care of the testator
EXPRESS IMPLIED
during his last illness. Made by the execution of Effected when the
a document or any testator makes a will
 BASED ON MORALITY OR PUBLIC writing in which the instituting the unworthy
POLICY (Arts. 739 and 1028, CC) decedent condones the heir with knowledge of
 Those made in favor of a person with cause of incapacity the cause of incapacity
whom the testator was guilty of adultery Cannot be revoked Revoked when the
or concubinage at the time of the testator revokes the will
making of the will. or the institution
 Those made in consideration of a crime
of which both the testator and the
beneficiary have been found guilty.
 Those made in favor of a public officer
or his spouse, descendants and
ascendants, by reason of his public
office.

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III. Acceptance and Repudiation of 2. in an authentic document – equivalent of an

Inheritance indubitable writing or a writing whose
authenticity is admitted or proved; or
3. by petition presented to the court having
Characteristics (VIR) (Arts. 1041 – 1042, 1056, jurisdiction over the testamentary or
CC)— intestate proceeding 81
1. Voluntary and free (Art 1041, CC)
2. Irrevocable except if there is vitiation of
SUCCESSION
Heirs in Two Capacities (Art. 1055, CC)—
consent or an unknown will appears (Art 1. If a person is called to the same inheritance
1056, CC) as an heir by will and by law and he
3. Retroactive (Art 1042, CC) repudiates the inheritance in his capacity as
a testamentary heir, he will be considered to
Requisites (Art. 1043, CC)— have also repudiated the inheritance as a
1. Certainty of death of the decedent legal heir.
2. Certainty of the right to the inheritance 2. If he repudiates it as a legal heir, without his
being a testamentary heir, he may still
Acceptance vs. Repudiation— accept it in the latter capacity.
1. Acceptance involves the confirmation of
transmission of successional rights, while
repudiation renders such transmission
ineffective. IV. Collation (Arts. 1061-1077, CC)
2. Repudiation is equivalent to an act of (Asked in ’77, ’78, ’79, and ’93)
disposition and alienation.
3. The publicity required for repudiation is A. Concept of Collation
necessary for the protection of other heirs  To collate is to bring back or to return to the
and also of creditors. hereditary mass in fact or by fiction property
which came from the estate of the decedent,
Forms of Acceptance (Arts. 1049 – 1050, during his lifetime by donation or other
CC)— gratuitous title but which the law considers
1. Express Acceptance – one made in a as an advance from the inheritance. (Art
public or private document. (Art. 1049 par. 1061, CC)
1)  It is the act by virtue of which, the
2. Tacit Acceptance – one resulting from acts compulsory heir who concurs with other
by which the intention to accept is compulsory heirs in the inheritance bring
necessarily implied or from acts which one back to the common hereditary mass the
would have no right to do except in the property which they may have received from
capacity of an heir. the testator so that a division may be
effected according to law and the will of the
Examples: (Art. 1050, CC) testator.
a. when the heir sells, donates or assigns  In reducing inofficious donations, the last to
his right be donated should be the first to be
b. when the heir demands partition of the reduced.
inheritance  RATIONALE FOR COLLATION: If
c. when the heir alienates some objects of donations inter vivos will not be collated,
the inheritance, etc. then the rule on legitimes shall be
3. Implied acceptance - Within thirty days circumvented or disregarded.
after the court has issued an order for the
distribution of the estate in accordance with B. Operations Related to Collation
the Rules of Court, the heirs, devisees and  Collation – adding to the mass of the
legatees shall signify to the court having hereditary estate the value of the donation
jurisdiction whether they accept or repudiate or gratuitous disposition.
the inheritance; if they do not do so within  Imputing or Charging – crediting the
that time, they are deemed to have accepted donation as an advance on the legitime (if
the inheritance. (Art 1057, CC) the donee is a compulsory heir) or on the
free portion (if the donee is a stranger).
Forms of Repudiation (Art. 1051, CC)— (BALANE p 522)
1. in a public instrument acknowledged before  Reduction – determining to what extent the
a notary public; or donation will remain and to what extent it is
excessive or inofficious.

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 Restitution – returning or the act of  Expenses incurred by parents in giving

payment of the excess to the mass of their children professional, vocational or
hereditary estate. other career unless the parents so
provide, or unless they impair the
C. Persons Obliged to Collate legitime. (Art. 1067, CC)
 GENERAL RULE: Compulsory heirs  Wedding gifts by parents and 82
EXCEPTIONS: ascendants, consisting jewelry, clothing
SUCCESSION
 when the testator should have so and outfit, except when they exceed
expressly provided (Art. 1062, CC) 1/10 of the sum disposable by will. (Art.
 when the compulsory heir should have 1070, CC)
repudiated his inheritance (Art 1062,  Neither shall donations to the spouse of
CC) the child be brought to collation; but if
 Grandchildren who survive with their uncles, they have been given by the parent to
aunts, or first cousins and inherit by right of the spouses jointly, the child shall be
representation (Art 1064, CC) obliged to bring to collation one-half of
the thing donated. (Art. 1066, CC)
*Note: Grandchildren may inherit from their
grandparent in their own right, i.e., as heirs Note: Parents are not obliged to bring to
next in degree, and not by right of collation in the inheritance of their
representation if their parent repudiates the ascendants any property which may have
inheritance of the grandparent, as no living been donated by the latter to their children.
person can be represented except in cases (Art 1065, CC)
of disinheritance and incapacity. In this
case, the grandchildren are not obliged to
bring to collation what their parent has
received gratuitously from their grandparent.
D. What to Collate
 Any property or right received by gratuitous
title during the testator’s lifetime (Art 1061,
CC)
 All that they may have received from the
decedent during his lifetime. (Art 1061, CC)
 Expenses incurred by the parents in giving
their children a professional, vocational or
other career shall not be brought to collation
unless the parents so provide, or unless
they impair the legitime; but when their
collation is required, the sum which the child
would have spent if he had lived in the
house and company of his parents shall be
deducted therefrom. (Art 1068, CC)
 Any sums paid by a parent in satisfaction of
the debts of his children, election expenses,
fines, and similar expenses shall be brought
to collation. (Art 1069, CC)
E. Properties Not Subject to Collation

 Absolutely no collation
Expenses for support, education (only
elementary and secondary), medical
attendance, even in extraordinary illness,
apprenticeship, ordinary equipment, or
customary gifts. (Art. 1067, CC)
 Generally not imputable to legitime/

cannot be collected, subject to
exceptions

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CIVIL LAW REVIEWER Chapter V. PARTITION and DISTRIBUTION of ESTATE
Chapter V. Partition and Distribution of 2. The decedent’s heirs (Art.1083, CC)

Estate 3. A competent court (Art. 1083,CC)
4. A third person not an heir designated by the
I. The Concept of Partition decedent (Art.1081, CC)
II. The Effect of Partition
III. Nullification of Partition Who Can Demand Partition— 83
IV. Important Periods in Partition 1. Compulsory heir
SUCCESSION
2. Voluntary heir upon fulfillment of condition if
any (Art 1084, CC)
I. Concept of Partition 3. Legatee or devisee
4. Any person who has acquired interest in the
estate
 Separate, Divide, Assign. Partition is the
separation, division and assignment of a
When Partition Cannot Be Demanded—
thing held in common among those to whom
1. When expressly Prohibited by the testator
it may belong. The thing itself or its value
for a period not exceeding 20 years (Art
may be divided. (Art. 1079, CC)
1083, CC)
 Owned in common. Before partition, the
2. When the co-heirs Agreed that the estate
whole estate of the decedent is owned in
shall not be divided for a period not
common by the heirs. (Art 1078, CC)
exceeding 10 years, renewable for another
 Thing or value may be divided. (Art 1079)
10 years
 Acts deemed partition. Every act which is
3. When Prohibited by law
intended to put an end to indivision among
4. When to partition the estate would render it
heirs and legatees or devisees is deemed a
unserviceable for the use for which it is
parition, although it should purport to be a
intended
sale, an exchange, a compromise, or any
other transaction. (Art 1082, CC) Prohibition to Partition—
1. The prohibition to partition for a period not
A void partition may be valid if—
exceeding 20 years can be imposed on the
1. the will was in fact a partition
legitime.
2. the beneficiaries of the void will were legal
2. If the prohibition to the partition is for more
heirs
than 20 years, the excess is void.
3. Even if a prohibition is imposed, the heirs by
 The titles of acquisition or ownership of each
mutual agreement can still make the
property shall be delivered to the co-heir to
partition.
whom said property has been adjudicated.
(Art. 1089 CC)
Effects of Inclusion of Intruder in Partition
(Art 1108, CC)—
Kinds of Partition—
1. Between a true heir and several mistaken
1. Judicial v. Extrajudicial Partition
heirs – partition is void.
a. Judicial – Partition done by Court
2. Between several true heirs and a mistaken
pursuant to an Order of Distribution
heir – transmission to mistaken heir is void
which may or may not be based on a
3. Through error or mistake, share of true
project of partition.
heir is allotted to mistaken heir – partition
b. Extra-judicial – partition made by the
shall not be rescinded unless there is bad
decedent himself by an act inter vivos or
faith or fraud on the part of the other
by will or by a third person entrusted by
persons interested, but the latter shall be
the decedent or by the heirs themselves.
proportionately obliged to pay the true heir
(PARAS)
of his share. The partition with respect to the
2. Partition Inter Vivos (Asked in ‘85)
mistaken heir is void. (Sempio-Dy)
It is one that merely allocates specific
items or pieces of property on the basis
Right of Redemption in Partition—
of the pro-indiviso shares fixed by law or
 Should any of the heirs sell his hereditary
given under the will to heirs or
rights to a stranger before the partition, any
successors. (Art. 1080, cc)
or all of the co-heirs may be subrogated to
the rights of the purchaser by reimbursing
Who May Effect Partition—
him for the price of the sale, provided they
1. The Decedent, during his lifetime by an act
do so within the period of one month from
inter vivos or by will (Art.1080, CC)

lOMoARcPSD|3291925
the time they were notified in writing of the  When its has been so expressly stipulated in
sale by the vendor (Art. 1088, CC) the agreement of partition
 Strangers – those who are not heirs on the  Unless there has been bad faith
succession.  When the eviction is due to a cause
subsequent to the partition, or has been
caused by the fault of the distributee of the 84
II. Effects of Partition property. (Art. 1096, CC)
SUCCESSION
Effect—
A partition legally made confers upon each heir III. Nullification of Partition
the exclusive ownership of the property (Asked in ‘90)
adjudicated to him (Art 1091, CC)
Causes for Rescission or Annulment—
Warranty— 1. A partition may be rescinded or annulled for
 After the partition has been made, the co- the same causes as contracts. (Art 1097,
heirs shall be reciprocally bound to warrant CC)
the title to, and the quality of, each property 2. A partition, judicial or extra-judicial, may also
adjudicated (Art. 1092 CC) be rescinded on account of lesion, when any
 The reciprocal obligation of warranty one of the co-heirs received things whose
referred to in the preceding article shall be value is less by at least one-fourth, than the
proportionate to the respective share to which he is entitled, considering the
hereditary shares of the co-heirs; value of the things at the time they were
 But if any one of them should be adjudicated (Art. 1098, CC)
insolvent, the other co-heirs shall be  This article applies only to cases of
liable for his part in the same proportion, partition among-coheirs
deducting the part corresponding to the  Lesion is the injury suffered in
one who should be indemnified. consequence of inequality of situation by
 Those who pay for the insolvent heir one party who does not receive the full
shall have a right of action against him equivalent for what she gives in a sale
for reimbursement, should his financial or any commutative contract
condition improve (Art. 1093 CC) 3. The partition made by the testator cannot be
 An action to enforce the warranty among the impugned on the ground of lesion, except
co-heirs must be brought within ten years when the legitime of the compulsory heirs is
from the date the right of action accrues. thereby prejudiced, or when it appears or
(Art. 1094 CC) may be reasonably be presumed, that the
 If a credit should be assigned as collectible, intention of the testator was otherwise. (Art.
the co-heirs shall not be liable for the 1099, CC)
subsequent insolvency of the debtor of the 4. Preterition of a compulsory heir in the
estate, but only for his insolvency at the partition (Art 1104, CC):
time the partition is made. (Art 1095, CC)  Partition shall not be rescinded unless
 The warranty of the solvency of the debtor bad faith or fraud on the part of other
can only be enforced during the five years heirs is proved.
following the partition.  The culpable heirs shall share in the
 Co-heirs do not warrant bad debts, if so damages of the prejudiced compulsory
known to, and accepted by the distributee. heir proportionately.
 But if such debts are not assigned to a 5. A partition which includes a person believed
co-heir, and should be collected, in to be an heir, but who is not, shall be void
whole or in part, the amount collected only with respect to such person. (Art.
shall be distributed proportionately 1105 CC
among the heirs. (Art. 1095 CC) ___________
End of Warranty—  The action for rescission on account of

The obligation of warranty among co-heirs shall lesion shall prescribe after four years from
cease in the ff cases: the time the partition was made. (Art. 1100,
 The testator himself has made the partition CC)
 Unless it appears, or it may be
reasonably presumed, that his intention  The heir who is sued shall have the option of
was otherwise, but the legitime shall indemnifying the plaintiff for the loss, or
always remain unimpaired. consenting to a new partition

lOMoARcPSD|3291925
 Indemnity may be made: IV. Important Periods in Partition

 By payment in cash or
 By the delivery of a thing of the same 1 month or less Testator, if publicly known to be
kind and quality as that awarded to the before making a insane, burden of proof is on the
plaintiff. will one claiming validity of the will
20 years Maximum period testator can 85
 If a new partition is made, it shall affect prohibit alienation of dispositions
SUCCESSION
neither those who have not been prejudiced 5 years from To claim property escheated to
nor those who have not received more than delivery to the the State
their just share (Art. 1101, CC) State
1 month To report knowledge of violent
death of decedent lest he be
 An heir who has alienated the whole or a
considered unworthy
considerable part of the real property 5 years from the Action for declaration of
adjudicated to him cannot maintain an action time disqualified incapacity & for recovery of the
for rescission on the ground of lesion, but he person took inheritance, devise or legacy
shall have a right to be indemnified in cash possession
(Art. 1102, CC) 30 days from Must signify
issuance of order acceptance/repudiation
 The omission of one or more objects or of distribution otherwise, deemed accepted
securities of the inheritance shall not cause 1 month form Right to repurchase hereditary
the rescission of the partition on the ground written notice of rights sold to a stranger by a co-
sale heir
of lesion, but the partition shall be completed
10 years To enforce warranty of
by the distribution of the objects or securities title/quality of property
which have been omitted. (Art. 1103, CC) adjudicated to co-heir from the
time right of action accrues
Difference of Nullity from Rescission— 5 years from To enforce warranty of solvency
Nullity is not the same as Rescission: partition of debtor of the estate at the time
1. Nullity - the act is supposed to never have partition is made
existed 4 years form Action for rescission of partition
2. Rescission - the act is valid at the origin partition on account of lesion
though it afterwards became ineffective

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CIVIL LAW REVIEWER Chapter VI. APPLICATION
Chapter VI. Application of the Important property. How will you compute the proportional
Concepts through Sample increase in each heirs’ shares in order not to
Computational Problems exceed the total estate of Mickey (assuming no
legitimes were impaired)?
I. Institution of Heirs
II. Legitimes
Goofy’s 1/3 of 12,000 4,000 86
original share:
III. Intestate Succession
SUCCESSION
IV. Donald’s 1/4 of 12,000 3,000
II. The Effect of Partition original share:
III. Nullification of Partition Minnie’s 1/4 of 12,000 3,000
IV. Important Periods in Partition original share:
TOTAL: 10,000
 DEFICIENCY
(Based on the lectures of Prof. Danilo L. : 2,000
Concepcion)
Goofy’s increase = 4,000/10,000 x 2,000 = 800
Donald’s increase = 3,000/10,000 x 2,000 = 600
I. Institution of Heirs Minnie’s increase = 3,000/10,000 x 2,000 = 600
A. Excess Institution— Total Deficiency = P2000

P10,000 + P2,000 = P12,000 (the total estate)
Mickey died testate, leaving a total estate of
P12,000. According to his Will, Goofy gets ½, Goofy gets P4000 + 800 = P 4,800
Donald gets 1/3 and Minnie gets ¼ of the Donald gets P3,000 + 600 = P3, 600
property. How will you compute the proportional Minnie gets P3,000 + 600 = P 3, 600
reduction from each heirs’ shares in order not to
exceed the total estate of Mickey (assuming no
legitime is impaired)? II. Legitimes
Goofy’s original ½ of 12,000 6,000
A. Legitimes: Concurrence of Legitimate
share:
Donald’s 1/3 of 12,000 4,000 and Illegitimate Children—
original share:
Minnie’s original ¼ of 12,000 3,000 Homer died of heart attack. His wife, Marge,
share: predeceased him. He had only 1 legitimate child,
TOTAL: Bart, and 4 illegitimate children, Lisa, Maggie,
13,000 Wolverine and Cyclops. Homer has a total
EXCESS: estate of P120,000. How much is the legitime of
1,000 each heir?
Goofy’s reduction = 6,000/13,000 x 1,000 = The legitimate child should get ½ of the estate
461.53846 while the illegitimate children get ½ of what the
Donald’s reduction = 4,000/13,000 x 1,000 = legitimate child gets.
307.69231  Bart - P60,000
Minnie’s reduction = 3,000/13,000 x 1,000 =  Lisa - P30,000
230.76923  Maggie - P30,000
 Wolverine - P30,000
Total Deduction = P1000  Cyclops - P30,000
P13,000 – P1,000 = P12,000 (the total estate)
But this would amount to a total of P180,000.
Goofy gets P6000 – P461.53846 Thus, there must be a reduction of the shares of
Donald gets P4,000 – P307.69231 the illegitimate children.
Minnie gets P3,000 – P230.76923
___________ Reduction = excess / number of illegitimate
children
B. Deficiency in Institution— Reduction = (180,000 – 120,000) / 4 = 15,000
P30,000 (share) – 15,000 (reduction) =
Mickey died testate, leaving a total estate of P15,000
P12,000. According to his Will, Goofy gets 1/3,
Donald gets ¼ and Minnie gets ¼ of the

lOMoARcPSD|3291925
Final Answer: Reduction = (150,000 - 120,000)/2 =15,000

 Bart = P60,000 P30,000 (share) – 15,000 (reduction)
 Lisa = P15,000 =P15,000
 Maggie = P15,000
 Wolverine = P15,000 Final Answer:
 Cyclops = P15,000  Mushroom = P60,000 87
 TOTAL = P120,000  Kupa = P30,000
SUCCESSION
___________  Mario = P15,000
 Luigi = P15,000
B. Legitimes: Concurrence of Spouse and
Legitimate Children—
III. Intestate Succession
Anderson Silva died, leaving a total estate of
P120,000. He was survived by his wife,
Hulk Hogan died intestate, with a total estate of
Machida, and his three children: Chuck, Quinton,
P70,000. His wife, Sable, his legitimate son,
and George. How much legitime is allotted by
Ultimate Warrior, and his two illegitimate
law to each heir?
children, Stone Cold and Undertaker, survived
him. How will his estate be divided among these
Legitimate Children get ½
heirs?
The ½ is divided into as many legitimate
children.
Applying the law in intestate succession, each
Wife gets an amount equal to the share of a
heirs will receive the ff:
legitimate child.
 Ultimate Warrior – P35,000
 Stone Cold – P17,500
Final Answer:
 Undertaker – P17,500
 Chuck = P20,000
 Sable – P35,000
 Quinton = P20,000
 George = P20,000
Since the total shares will exceed P70,000,
 Machida = P20,000
reduction is in order. The share of those who will
 Free Portion = P40,000
receive more than their legitimes must be
___________
reduced. The spouse’s share should be reduced
first to the amount of her legitime (P17,500)
(note: the share of the others are equal to their
C. Legitimes: Concurrence of Spouse,
legitimes)
Legitimate and Illegitimate Children—
Further reductions shall be made since the
Princess toadstool died, survived by her
amount will still exceed the net estate. Following
husband, kupa, her legitimate child, mushroom,
the law of legitimes, namely that the legitime of
and by her two illegitimate children, mario and
the legitimate child and the surviving spouse
luigi. She has a total estate of p120,000. How
shall be preferred over the illegitimate children’s
much legitime is allotted by law to each heir?
shares, the reduction will be suffered by the
illegitimate children.
The legitimate child gets ½.
The wife gets ½ of the share of the legitimate
Final Answer:
child (because there is only one legitimate child)
 Ultimate Warrior – P35,000
The illegitimate children will each get ½ of the
 Stone Cold – P8750
share of the legitimate child.
 Undertaker – P8750
 Sable – P17,500
 Mushroom – P60,000
 Kupa – P30,000
 Mario – P30,000
 Luigi – P30,000 IV. Accretion
But this will yield a total of p150,000. Thus the Goku died testate, leaving an estate of P720. In
shares of the illegitimate children must be his will, he instituted his sons to his entire estate.
reduced. His sons are Vegeta, Napa, Raditz and Freeza.
Vegeta, who had two children (Trunks and
Reduction = excess / number of illegitimate Bulma), predeceased Goku. Napa, who hated
children

lOMoARcPSD|3291925
his father’s guts, repudiated his share in the P50,000 to Spiderman. In 1982, he made a
will. donation to Robinhood worth P100,000.
Compute for the shares of each heir.
Raditz, who likewise has two children Total Estate = Gross Estate – Liabilities +
(Tenshenhan and Chowzu), was found to be Donations Inter Vivos
incapacitated to inherit from his father. Total Estate = 90,000 – 0 + 150,000 = P240,000 88
SUCCESSION
Lastly, Freeza, the youngest and most beloved Determine the Legitimes:
son of Goku, has a son, Magneato. Legitimate Children = ½ of Total Estate
Therefore: Spiderman = P60,000
Determine Legitime and Free Portion: Robinhood = P60,000
Heir Will
Vegeta (predeceased) 180 = legitime:120 Surviving Spouse = amount equal to Legitimate
free: 60 Child
Napa (repudiated) 180 (automatically Therefore: Sandy = P60,000
becomes free portion)
Raditz (incapacitated) 180 = legitime:120
Determine their Intestate Shares
free: 60
Heir Final Answer
Freeza 180 = legitime:120
Spiderman 80, 000
free: 60
(60,000 = legitime)
Robinhood 80,000
Determine amount received by heirs through (60,000 = legitime)
representation for the legitimes Sandy 80,000
Heir Representation for (60,000 = legitime)
Legitime
Vegeta (predeceased) Legitime = 120 Determine Advances
Trunks: 60
Heir Advance
Bulma: 60
Spiderman 50,000
Napa (repudiated)
Robinhood 100,000
Raditz (incapacitated) Legitime = 120
Sandy
Tenshenhan: 60
Chowzu: 60
Freeza Compute:
Heir Computation
Determine if there is accretion: Spiderman Legitime: 60,000 – 50,000 = 10,000
Free Portion = 20,000
Heir Accretion
Robinhood Legitime: 60,000 – 60,000 = 0
Vegeta (predeceased) - 60
Free Portion: 20,000 – 20,000 = 0
Napa (repudiated) -180
(20,000 still unaccounted for)
Raditz (incapacitated) -60
Sandy
Freeza + (60 + 60 + 180) or +
300
Since Robinhood’s share has been exhausted
COMPUTE: but there is still a deficiency of 20,000, this
Heir Final Answer 20,000 will be deducted from the free portions
Vegeta (predeceased) Trunks: 60 of Spiderman and Sandy Pro Rata.
Bulma: 60
Napa (repudiated) 0 Heir Computation
Raditz (incapacitated) Tenshenhan: 60 Spiderman Legitime Left: 10,000
Chowzu: 60 Free Portion Left =
Freeza 480 20,000 – 10,000 = 10,000
Robinhood 0
Sandy Legitime: 60,000
Free Portion: 20,000 – 10,000 =
V. Collation 10,000
Sponge Bob died intestate on September 17, Therefore –

1985. He left an estate of P90,000. He was Heir Final Answer
survived by his wife, Sandy, and his two children Spiderman 20,000
Spiderman and Robinhood. During Mr. Bob’s Robinhood 0
lifetime, on January 1, 1980, he donated Sandy 70,000
- end of Succession -

lOMoARcPSD|3291925

lOMoARcPSD|3291925
OBLIGATIONS
Table of Contents
Chapter I. General Provisions.......................91

I. Obligations ..........................................91
II. Sources of Obligations ........................91
90
Chapter II. Nature and Effect of Obligations93
OBLIGATIONS
I. Kinds of Prestations ............................93
II. Breach of Obligation............................94
III. Fortuitous Event (Force Majeure) .......96
IV. Remedies to Creditors ........................96
V. Usurious Transactions and Rules on
Interest .........................................................97
Chapter III. Different Kinds of Obligations ..98

I. Pure and Conditional Obligations .......98
II. Reciprocal Obligations ......................100
III. Obligations with a Period ..................100
IV. Alternative and Facultative Obligations
101
V. Joint and Solidary Obligations ..........103
Effects of Prejudicial and Beneficial Acts
(Art.1212) ...................................................105
VI. Divisible and Indivisible Obligations..106
VII. Oblligations with a Penal Clause ..106
Chapter IV. Extinguishment of Obligations

.......................................................................107
I. Payment or Performance ..................107
II. Loss or Impossibility..........................109
III. Condonation or Remission of the Debt
109
IV. Confusion or Merger of Rights ..........110
V. Compensation ...................................110
VI. Novation ............................................111
Charts: Payment & Performance ................114

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CIVIL LAW REVIEWER Chapter I. GENERAL PROVISIONS
Chapter I. General Provisions

OBLIGATIONS & CONTRACTS TEAM
OBLIGATIONS & CONTRACTS

Prof. Solomon Lumba I. OBLIGATIONS
Faculty Editor
II. SOURCES OF OBLIGATIONS
Leo Ledesma A. LAW
Lead Writer B. CONTRACTS
Krizel Malabanan C. QUASI-CONTRACTS
Ivy Velasco D. DELICTS
Tin Reyes E. QUASI-DELICTS
Frances Domingo 91
Hazel Abenoja
OBLIGATIONS
Writers
Article 1156, Civil Code. An obligation is a juridical
CIVIL LAW necessity to give, to do or not to do.
Kristine Bongcaron
Patricia Tobias I. Obligations
Subject Editors
ACADEMICS COMMITTEE Elements of an Obligation (De Leon, 2003)—

Kristine Bongcaron 1. ACTIVE SUBJECT (Obligee/Creditor): the
Michelle Dy person who has the right or power to
Patrich Leccio demand the prestation.
Editors-in-Chief 2. PASSIVE SUBJECT (Obligor/Debtor): the
PRINTING & DISTRIBUTION person bound to the perform the prestation.
3. PRESTATION (Object): the conduct
Kae Guerrero required to be observed by the
DESIGN & LAYOUT debtor/obligor (to give, to do or not to do).
4. VINCULUM JURIS (Juridical or Legal Tie;
Pat Hernandez Efficient Cause): that which binds or
Viktor Fontanilla
connects the parties to the obligation.
Rusell Aragones
Romualdo Menzon Jr.
Rania Joya II. Sources of Obligations
LECTURES COMMITTEE
A. Law
Michelle Arias Art. 1158, Civil Code. Obligations derived from law
Camille Maranan
are not presumed. Only those expressly determined in
Angela Sandalo
Heads
this Code or in special laws are demandable, and
shall be regulated by the precepts of the law which
Katz Manzano Mary Rose Beley establishes them; and as to what has not been
Sam Nuñez Krizel Malabanan foreseen, by the provisions of this Book.
Volunteers
B. Contracts
MOCK BAR COMMITTEE Art. 1159. Has the Force of Law Between
Lilibeth Perez Parties. Obligations arising from contracts have
the force of law between the contracting parties
BAR CANDIDATES WELFARE and should be complied with in good faith
Dahlia Salamat
C. Quasi-Contracts
LOGISTICS Art. 2142, Civil Code. Certain lawful, voluntary and
Charisse Mendoza unilateral acts give rise to the juridical relation of
quasi-contract to the end that no one shall be unjustly
SECRETARIAT COMMITTEE enriched or benefited at the expense of another.
Jill Hernandez
Lawful Distinguished from crimes
Head
Voluntary Distinguished from quasi-delict,
Loraine Mendoza Faye Celso which are based on fault and
Mary Mendoza Joie Bajo negligence
Members
Unilateral Distinguished from contract which is
based on agreement

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Kinds of Quasi-Contracts action (res judicata)

 Negotiorum Gestio: officious or voluntary  if judgment of acquittal
management of the property or affairs of contained a declaration
another without the knowledge or consent of that no negligence can
be attributed to the
the latter.
accused and that the
 Solutio Indebiti: undue payment. The fact from which civil
juridical relation arises when: action might arise did
o a thing is received without any right; and not exist
o the thing delivered by mistake. 92
 Others: See Arts. 2164-2175 E. Quasi-Delicts (Voluntary acts or omissions
OBLIGATIONS
(De Leon, 2003) with fault or negligence causing damage to
another; not a crime nor a contract)
D. Delicts (Acts or omissions punished by law;
crimes) Quasi-Delict Crimes
Private, against Public, against the State
Extent of Civil Liability individual
Governed by the Revised Penal Code and the Criminal intent is not Criminal intent is
Civil Code, includes: necessary necessary for criminal
1. Restitution; liability
2. Reparation of damages caused; and Present in any act or An act can is only
3. Indemnity for consequential damages (Art. omission where fault or punishable when there is
104, Revised Penal Code). negligence intervenes a law penalizing it
(Tolentino, 1987)
Gives rise to liability for There are crimes from
Enforcement of Civil Liability damages to the injured which no civil liability
1. Independent: Criminal and civil action party arises
arising from the same offense may be Reparation, Fine or imprisonment or
instituted separately. compensation or both, to public treasury
2. Suspended: However, after criminal action indemnification of the
has been commenced prosecution for civil injury suffered by the
action is suspended in whatever stage it injured party
may be found, until final judgment in the Preponderance of Proof of guilt beyond
criminal proceeding is rendered; evidence reasonable doubt
3. Impliedly Instituted: Civil action is impliedly Can be compromised Can never be
instituted with the criminal action, when: compromised
offended party expressly waives the civil
action or reserves the right to institute a Requisites of Liability (DWD)
separate civil action; or 1. Wrongful act or omission by fault or
the law provides for an independent civil negligence
action 2. Damage or injury proven by the person
claiming recovery
Barredo v. Garcia, (1942): The same negligent act 3. Direct causal connection between the fault
may give rise to an action based on delict or quasi- or negligence and the damage or injury
delict and the injured party is free to choose which
remedy to enforce. Liability for Quasi- Liability for Crimes
Delict (Art. 2180, NCC) (Art. 103, RPC)
Mendoza vs. Arrieta, (1979): If the civil action is
based on quasi-delict, there is no need to reserve the Primary, can be directly Subsidiary, employee
right to file a civil action in the criminal case. sued by the injured must first be convicted
party and sentenced to pay
civil indemnity
Effect of Acquittal on Civil Actions
All employers, whether Employer is only liable
Barred No Effect engaged in some when he is engaged in
 if based on the very  an independent civil enterprise or not, are some kind of business
same facts on which action is allowed by law liable for acts of or industry
the criminal action  acquittal is due to lack employees, even
which ended in of proof beyond household helpers
acquittal was based reasonable doubt Avoid civil liability by Subsidiary liability is
 if the facts alleged in proving exercise of absolute and cannot be
the civil case has been diligence of a good avoided by any proof of
found to be non- father of a family diligence
existent in the criminal

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CIVIL LAW REVIEWER Chapter II. NATURE and EFFECT of OBLIGATIONS
Chapter II. Nature and Effect of OBLIGATION TO GIVE

Obligations
Specific Thing Generic Thing Limited
I. KINDS OF PRESTATIONS Generic Thing
II. BREACH OF OBLIGATIONS Particularly Object is When the
III. FORTUITOUS EVENTS designated or designated only generic objects
IV. REMEDIES physically by its class/ are confined to
V. USURIOUS TRANSACTIONS segregated genus/ species. a particular
from all other of Debtor can give class. 93
the same class; anything of the
OBLIGATIONS
identified by same class as
I. Kinds of Prestations individuality. long as it is of
the same kind.
KINDS OF PRESTATION Cannot be Can be
1. TO GIVE: real obligation; to deliver either substituted. substituted by
(1) a specific or determinate thing, or (2) a any of the same
generic or indeterminate thing. class and same
2. TO DO: positive personal obligation; kind.
includes all kinds of work or services.
3. NOT TO DO: negative personal Personal Right Real Right
obligation; to abstain from doing an act; Vested before delivery Vested after delivery
A right enforceable only A right enforceable
includes the obligation not to give.
against the debtor against the world
Right of the creditor to Right pertaining to a
Accessories: those joined to or included with demand from the debtor, person over a specific
the principal for the latter’s completion, better the fulfillment of a thing, without a passive
use, perfection or enjoyment prestation to give, to do subject individually
or not to do determined against
Accessions: additions to or improvement upon whom such right may be
a thing, either naturally or artificially personally enforced
Duties of the Debtor Rights of the creditor

To Give  To preserve or take care of the thing  To compel specific performance
Specific due  To recover damages in case of breach of
Thing  To deliver the thing itself the obligation, exclusive or in addition to
(Asked  To deliver the fruits of the thing specific performance
in ’83,  To deliver the accessions and  Entitlement to fruits and interests from the
’84, ’85 accessories time the obligation to deliver arises
and  To pay for damages in case of breach
’86)
To Give  To deliver a thing of the quality intended  To ask for performance of the obligation
Generic by the parties taking into consideration  To ask that the obligation be complied with
Thing the purpose of the obligation and other by a third person at the expense of the
circumstances debtor
 Creditor cannot demand a thing of  To recover damages in case of breach of
superior quality neither can the debtor obligation
deliver a thing of inferior quality
 To be liable for damages in case of
breach
To Do  To do it  To compel performance
 To shoulder the cost of having someone  To recover damages where personal
else do it qualifications of the debtor are involved
 To undo what has been poorly done
 To pay for damages in case of breach

lOMoARcPSD|3291925
Not To  Not to do what should not be done  To ask to undo what should not be done
Do  To shoulder the cost of undoing what  To recover damages, where it would be
should not have been done physically or legally impossible to undo
 To pay for damages in case of breach what has been undone, because of :
o the very nature of the act itself;
o rights acquired by third persons who
acted in good faith;
o when the effects of the acts prohibited
are definite in character and will not 94
cease even if the thing prohibited be
OBLIGATIONS
undone.
II. Breach of Obligation  Effect of Contributory Negligence

Reduces or mitigates the recoverable
damages, UNLESS, the negligent act or
A. Voluntary – fraud, negligence, delay or
omission of the creditor is the
contravention of tenor of the obligation
proximate cause of the event which led
B. Involuntary – fortuitous event
to the damage or injury complained of.
In this case, he cannot recover.
TYPES OF BREACH
 Diligence Required (De Leon, 2003)
Substantial Breach Slight or Casual Breach
Total breach Partial breach
a. By stipulation: that agreed upon by
Amounts to Non- Obligation is partially the parties.
Performance; performed; b. By law: in the absence of
Basis for rescission Gives rise to liability for stipulation, that required by law in
under Art. 1191 and damages only the particular case.
payment of damages c. Diligence of a good father of a
family: if both the contract and law
1. FRAUD (DOLO): deliberate or intentional are silent.
evasion of the normal fulfillment of an  Future Negligence: may be waived
obligation (De Leon, 2003). except in cases where the nature of the
obligation or the public requires another
 Future Fraud: Any waiver of action for standard of care (i.e. extraordinary
future fraud is void (Art. 1171). diligence as for a common carrier)
 Past Fraud: can be subject of a valid
waiver by the aggrieved party (De Leon, Fraud Negligence
2003). There is deliberate There is no deliberate
 Woodhouse vs. Halili, (1953): In order intention to cause intention to cause damage
that fraud may vitiate consent, it must be damage
the dolo causante and not merely the Liability cannot be Liability may be mitigated
dolo incidente, inducement to the mitigated
Waiver for future fraud Waiver for future
making of the contract. The false
is void negligence may be
representation was used by plaintiff to allowed in certain cases:
get from defendant a bigger share of net  gross – can NEVER
profits. This is just incidental to the be excused in
matter in agreement. Because despite advance; amounts to
plaintiff’s deceit, respondent would have wanton attitude; rules
still entered into the contract. on fraud shall apply
 simple – may be
2. NEGLIGENCE or FAULT (CULPA): excused in certain
cases
omission of that diligence which is required
by the nature of the obligation and
Mandarin Villa Inc. v. CA (1996): Test of Negligence:
corresponds with the circumstances of the
Did the defendant in doing the alleged negligent act
person, of the time and of the place (Art. use the reasonable care and caution which an
1173). ordinary and prudent person would have used in the
same situation? If not, then he is guilty of negligence.

lOMoARcPSD|3291925
 Extent of Damages to be Awarded Mora Solvendi Mora Accipiendi

Requisites Requisites
Bad Faith Good Faith 1. Obligation must be 1. Debtor offers of
Debtor is liable for all Debtor is liable only for liquidated, due and performance
damages which can be the natural and demandable 2. Offer must be in
reasonably attributed to probable 2. Non-performance by compliance with the
the non-performance of consequences of the the debtor on period prestation
the obligation. Any waiver breach of obligation and agreed upon 3. Creditor refuses the
or renunciation made in fortuitous events 3. Demand, judicial or performance
anticipation of such extra-judicial, by the without just cause 95
liability is null and void creditor
OBLIGATIONS
Effects Effects
Culpa Contractual Culpa Aquiliana Asked 1. The debtor is liable 1. The responsibility of
in ’83, ’84, and ’86) for damages the debtor is
Negligence is merely Negligence is substantive 2. The debtor is liable reduced to fraud
incidental in the and independent even if the loss is due and gross
performance of an to fortuitous events negligence
obligation 3. For determinate 2. The debtor is
objects, the debtor exempted from risk
There is always a pre- There may or may not be
shall bear the risk of of loss of the thing
existing contractual a pre-existing contractual
loss which is borne by
relation obligation
the creditor
The source of obligation The source of obligation
3. The expenses
of defendant to pay is the defendant’s
incurred by the
damages is the breach or negligence itself
debtor for the
non-fulfillment of the
preservation of the
contract
thing after the mora
Proof of the existence of The negligence of the shall be chargeable
the contract and of its defendant must be to the creditor
breach or non-fulfillment proved 4. If the obligation
is sufficient prima facie to bears interest, the
warrant recovery debtor does not
Proof of diligence in the Proof of diligence in the have to pay from
selection and supervision selection and supervision the time of delay
of the employees is NOT of the employee is a 5. The creditor is liable
available as defense defense for damages
6. The debtor may
 Culpa Criminal: wrong or negligence in relieve himself of
the commission of a crime obligation by
consigning the thing
3. DELAY or DEFAULT (MORA): failure to Rules on Mora, Delay or Default

perform an obligation on time which
constitutes breach of the obligation (De Unilateral Obligations Reciprocal Obligations
Leon, 2003). General Rule: General Rule:
 Mora Solvendi: delay on the part of the Delay occurs from the
debtor to fulfill his obligation either to “No demand no delay”. moment one party fulfills
his undertaking, while the
give (Ex re) or to do (Ex persona),
The mere expiration of other does not comply or
(Asked in ’83, ’84, ’85, and ’86); the period fixed by the is not ready to comply in
parties is not enough in a proper manner with
No Mora Solvendi in: order that the debtor may what is incumbent upon
 Negative Obligations because delay incur in delay. him.
is impossible (De Leon, 2003); No delay if neither party
 Natural Obligations (Tolentino, performs his undertaking
1987). (Art. 1169, par. 2).
Exceptions Exception:
 Mora Accipiendi: delay on the part of 1. the obligation or law different dates for the
provides performance of
the creditor to accept the performance of 2. time is of the respective obligations are
the obligation essence fixed by the parties
 Compensatio Morae: delay of the 3. demand useless
parties in reciprocal obligations; effect: 4. debtor
as if there is no default. acknowledges that
he is in default

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4. CONTRAVENTION OF THE TENOR: 2. The event must be unforeseeable or

violation of the terms and conditions inevitable
stipulated in the obligation, which must not 3. The event renders it impossible for debtor to
be due to a fortuitous event or force majeure fulfill his obligation in a normal manner
(De Leon, 2003). 4. The debtor must be free from any
 “In any manner contravenes the participation in the aggravation of the injury
tenor” means any illicit act, which to the creditor (Tolentino, 1987; De Leon,
impairs the strict and faithful fulfillment 2003)
of the obligation, or every kind of 5. It must be the only and sole cause, not 96
defective performance (Tolentino, 1987). merely a proximate cause.
OBLIGATIONS
III. Fortuitous Event (Force Majeure)
IV. Remedies to Creditors
Any event which could not be foreseen, or which
though foreseen are inevitable (Art. 1174) Art. 1170, Civil Code. Those who in the performance
of their obligations are guilty of fraud, negligence, or
A happening independent of the will of the delay and those who in any manner contravene the
debtor and which makes the normal fulfillment of tenor thereof, are liable for damages.
the obligation impossible (De Leon, 2003).
Transmissibility of Rights
A. Act of God: an accident, due directly or Art. 1178: Rights acquired by virtue of an
exclusively to natural causes without human obligation are transmissible in character,
intervention, which by no amount of UNLESS prohibited:
foresight, pains or care, reasonably to have 1. by their very nature (i.e. personal
been expected, cold have been prevented. obligations)
B. Act of Man: force majeure is a superior or 2. by stipulation of the parties
irresistible force, which is essentially an act 3. by operation of law
of man; Includes unavoidable accidents, (De Leon, 2003)
even if there has been an intervention of
human element, provided that no fault or Primary Remedies
negligence can be imputed to the debtor Arts. 1165-1168: PRESS
(Asked in ’81, ’87 and ’88) 1. Specific Performance – performance
by the debtor of the prestation itself
Liability in case of Fortuitous Event 2. Substituted Performance – someone
No person shall be responsible for fortuitous else performs or something else is
events, UNLESS: performed at the debtor’s expense
1. expressly specified by law (Arts. 552(2), 3. Equivalent Performance – right to
1942, 2147, 2148, 2159) claim damages (in either performance or
2. liability specified by stipulation rescission)
3. the nature of the obligations requires 4. Rescission – right to rescind or cancel
assumption of risk (Art. 1174) the contract
4. when debtor is guilty of concurrent or 5. Pursue the Leviable – to attach the
contributory negligence properties of the debtor, except those
5. debtor has promised to deliver the same exempt by law from execution
thing to two or more persons who do not
have the same interests (Art. 1165 par. 3) Subsidiary Remedies of Creditor
6. the thing is lost due to the obligor’s fraud,
negligence, delay or contravention of the General Rule: Contracts are binding only
tenor of the obligation (Art. 1170) between the parties thereto, and their heirs,
7. the obligation to deliver a specific thing assignees, and the estate, UNLESS: Accion
arises from a crime (Art. 1268) Subrogatoria and Accion Pauliana
8. the object is a generic thing, i.e. the genus 1. Accion Subrogatoria: right of creditor to
never perishes exercise all of the rights and bring all of the
actions which his debtor may have against
Requisites for Exemption third persons; Novation by change of debtor
1. The event must be independent of the (Art. 1291, par.3).
debtor’s will (fraud or negligence)

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Requisites
a. Debtor to whom the right of action Siguan v. Lim, (1999): Petitioner cannot invoke the
properly pertains must be indebted to credit of a different creditor to justify the rescission of
the creditor the subject deed of donation, because the only
b. The debt is due and demandable creditor who may benefit from the rescission is the
creditor who brought the action; those who are
c. The creditor must be prejudiced by the
strangers to the action cannot benefit from its effects.
failure of the debtor to collect his own
rd
debt from 3 persons either through
malice or negligence 97
d. The debtor’s assets are insufficient V. Usurious Transactions and Rules on
Interest
OBLIGATIONS
(debtor is insolvent)
e. The right of action is not purely personal
to the debtor USURY: stipulation of interest rates higher than
the ceiling provided by law.
2. Accion Pauliana: Rescission, which
involves the right of the creditor to attack or Note: Usury Law (Act No. 2655, as amended)
impugn by means of a rescissory action any was repealed by Central Bank Circular No. 905,
act of the debtor which is in fraud and to the Dec. 10, 1982.
prejudice of his rights as creditor.
INTEREST
Requisites: CASAL
a. There is a credit in favor of plaintiff Art. 1176, Civil Code. Receipt of the principal without
prior to alienation reservation as to the interest shall give rise to a
b. The debtor has performed a disputable presumption that the interest has been
subsequent contract conveying a paid. Receipt of the latter installment without
patrimonial benefit to third persons reservation as to prior installments shall likewise give
rise to a disputable presumption that such prior
c. The creditor has no other legal remedy
installments have been paid.
to satisfy his claim
d. The debtor’s acts are fraudulent to the
Determination of Interests
prejudice of the creditor
Eastern Shipping Lines v. CA (1961)
e. The third person who received the
property is an accomplice in the fraud
Stage 1
For loan or forbearance NOT for loan or
Accion Subrogatoria Accion Pauliana of money, goods or forbearance of money,
Not necessary that Credit must exist before credit, the interest rate goods or credit, the
creditor’s claim is prior to the fraudulent act is 12% interest rate is 6%
the acquisition of the right
by the debtor a) Interest = interest a) If date of demand is
No need for fraudulent Fraudulent intent is rate stipulated in certain, compute from
intent required if the contract writing + 12% legal the date when demand
rescinded is onerous interest, computed is made (judicial or
No period for prescription Prescribes in 4 years from date of judicial extra-judicial)
from the discovery of the demand (filing of
fraud complaint)
b) If there is no b) If date of demand is
stipulated interest rate, NOT certain, compute
3. Accion Directa (Art. 1729, 1652, 1608, the interest rate is 12% from the date of trial
1893): the right of lessor to go directly to a computed from date of court decision (judicial
sublessee for unpaid rents of the lessee default or demand demand)
(judicial or extra-
4. The right of laborers or persons who furnish judicial)
materials for a piece of work undertaken by Stage 2
a contractor to go directly to the owner for Add 12% interest from finality of SC decision until
any unpaid claim due to the contractor fully paid (equivalent to a forbearance of credit)
5. The right of vendor against every possessor

whose right is derived from the vendee
6. The right of a principal against a substitution

appropriated by an agent

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CIVIL LAW REVIEWER Chapter III. DIFFERENT KINDS of OBLIGATIONS
 The mere intention of the debtor to

Chapter III. Different Kinds of Obligations prevent, without actually preventing
fulfillment is not sufficient.
I. PURE AND CONDITIONAL OBLIGATIONS Constructive fulfillment will not hold
II. RECIPROCAL OBLIGATIONS when the debtor acts pursuant to a
III. OBLIGATIONS WITH A PERIOD
right. There is constructive
IV. ALTERNATIVE AND FACULTATIVE
OBLIGATIONS fulfilment:
V. JOINT AND SOLIDARY OBLIGATIONS a. Intent of the obligor to prevent
VI. DIVISIBLE AND INDIVISIBLE OBLIGATIONS fulfilment; and 98
VII. OBLIGATIONS WITH A PENAL CLAUSE b. Actual prevention of compliance
OBLIGATIONS
 Principle of Retroactivity in
I. Pure and Conditional Obligations Suspensive Conditions
Art.1187, par.1: once the condition is
(Asked in ’79, ’88, ’00, ’03) fulfilled its effects must logically retroact
to the moment when the essential
Pure Obligation (Art.1179): Effectivity or elements, which gave birth to the
extinguishment does not depend upon the obligation have taken place. The
fulfillment or non-fulfillment of a condition or condition which is imposed is only
upon the expiration of a term or period and accidental, not an essential element of
characterized by the quality of its being the obligation.
IMMEDIATELY DEMANDABLE.  Applied only to consensual
contracts. No application to real
Conditional Obligation (Art.1181): Effectivity is contracts which can only be
subject to the fulfillment or non-fulfillment of a perfected by delivery.
condition, which is characterized to be a
FUTURE and UNCERTAIN event. To Give To Do/Not To Do
If reciprocal, the fruits In obligations to do or not
Effects of Conditions and interests shall be to do, the court shall
1. Suspensive Condition: Obligation shall deemed to have been determine the retroactive
only be effective upon the fulfillment of the mutually compensated effect of the condition
condition (Art.1181). What is acquired by the as a matter of justice and that has been complied
obligee upon the constitution of the convenience with.
obligation is mere hope or expectancy, but is (Art. 1187, par. 1) (Art. 1187, par. 2)
If unilateral, the debtor The power of the court
protected by law.
shall appropriate the includes the
fruits and interests determination whether or
Before Fulfillment After Fulfillment received, unless from the not there will be any
The demandability and The obligation arises or nature and circumstance retroactive effects. This
acquisition or effectivity becomes effective. it should be inferred that rule shall likewise apply
of the rights arising from The obligor can be the intention of the in obligations with a
the obligation is compelled to comply with persons constituting the resolutory condition (Art.
suspended. Anything what is incumbent upon same was different. 1190 par. 3)
paid by mistake during him.
such time may be
recovered.
 Preservation of Creditor’s Rights
Art.1188, par.1: The creditor may,
 Doctrine of Constructive Fulfillment before the fulfillment of the condition,
of Suspensive Conditions bring the appropriate action for the
Art. 1186: the condition shall be deemed preservation of his rights. However, this
fulfilled when the obligor actually does not grant any preference of credit
prevented the obligee from complying but only allows the bringing of the proper
with the condition, and that such action for the preservation of the
prevention must have been voluntary or creditor’s rights.
willful in character.
 Applicable to suspensive conditions 2. Resolutory Condition: Obligation becomes
and not to resolutory conditions. demandable immediately after its
 The article can have no application establishment or constitution. The rights are
to an external contingency which is immediately vested to the creditor, but
lawfully within the control of the always subject to the threat or danger of
obligor. extinction by the happening of the resolutory
condition (Tolentino, 1987).

lOMoARcPSD|3291925
needed to make the obligation demandable is that the

Before Fulfillment After Fulfillment sale be consummated and the price thereof remitted
Preservation of creditor’s Whatever may have to the islands. There were still other conditions that
rights (Art. 1188, par. 1) been paid or delivered by had to concur to effect the sale, mainly that of the
also applies to one or both of the parties presence of a buyer, ready, able and willing to
obligations with a upon the constitution of purchase the property under the conditions set by the
resolutory condition the obligation shall have intestate.
to be returned upon the
fulfillment of the 6. Impossible Condition: conditions which
condition. There is no are impossible, contrary to good customs, or 99
return to the status quo. public policy and those prohibited by law
OBLIGATIONS
However, when condition shall annul the obligations which depend
is not fulfilled, rights are
consolidated and they
upon them (Art. 1183).
become absolute in  If pre-existing obligation, only the
character impossible condition is void, but not the
obligation.
3. Potestative Condition  If divisible obligation, that part which is
not affected by the impossible or
Exclusively Exclusively Exclusively unlawful condition shall be valid.
upon the upon the upon the  If the condition is not to do an
Creditor’s Will Debtor’s Will Debtor’s Will impossible thing, it shall be considered
in case of a in case of a as not having been agreed upon (Art
Suspensive Resolutory 1183, par. 2). Consequently, it becomes
Condition Condition pure and immediately demandable.
(Art. 1182) (Art. 1179, par
 If attached to a simple or remuneratory
2)
donation (Art. 727), or testamentary
Condition and Condition and Condition and
obligation is obligation are obligation is disposition (Art. 873), condition is
valid void because to valid because in considered as not imposed while the
allow such such situation, obligation is valid.
condition would the position of
be equivalent to the debtor is 7. Positive Condition: Obligation shall be
sanctioning exactly the extinguished as soon as the time expires or
obligations same as the if it becomes indubitable that the event will
which are position of the not take place (Art.1184)
illusory. It also creditor when
constitutes a the condition is
direct suspensive. It 8. Negative Condition: Obligation shall be
contravention of does not render rendered effective from the moment the time
the principle of the obligation indicated has lapsed, or if it has become
mutuality of illusory. evident that the event will not occur
contracts. (Art.1185)
 When no period has been fixed, the
4. Casual Condition: The fulfillment of the intention of the parties is controlling,
condition depends upon chance and/or upon and the time shall be that which the
the will of a third person (Art. 1182) parties may have contemplated, taking
into account the nature of the obligation
5. Mixed Condition: The fulfillment of the (Art 1185, par. 2).
condition depends partly upon the will of a
party to the obligation and partly upon
chance and/or will of a third person Effects of Loss, Deterioration, and
Improvement in Real Obligations Pending the
Osmena v. Rama: Defendant executed an Condition (Art. 1189)
endorsement saying that she’ll pay her debt if the
house in which she lives is sold. Such condition Without With Debtor’s
depended upon her exclusive will thus it is void. Debtor’s Fault/Act
Fault/Act
Hermosa v. Longara: The condition that payment Loss Obligation is Obligation is
should be made by Hermosa as soon as he receives extinguished converted into
funds from the sale of his property in Spain is a mixed one of
condition. The condition implies that the obligor indemnity for
already decided to sell the house and all that was damages

lOMoARcPSD|3291925
Deterioration Impairment to be Creditor may shouldered by the first infractor. This shall
borne by the choose be determined by the courts. However, if it
creditor between cannot be determined who was the first
bringing an infractor, the contract shall be deemed
action for
extinguished and each shall bear his own
rescission of
the obligation damages (Art.1192).
OR bringing an
action for UP v. Delos Angeles (1970): The injured party may
specific extra-judicially rescind the contract on account of the 100
performance breach of the other party. However, this is without
OBLIGATIONS
with damages prejudice to the option of the other party to resort to
in either case. the courts in order to determine if the rescission made
is valid, if not, the party who rescinded the contract
Improvement Improvement at Improvement will be sentenced to pay damages.
the debtor’s by the thing’s
expense, the nature or by  Where the other party does not oppose the
debtor shall time shall inure extra-judicial declaration of rescission, such
ONLY have to the benefit of declaration shall produce legal effect.
usufructuary the creditor  Effect is retroactive therefore invalidating
rights and unmaking the juridical tie between the
contracting parties, leaving things in their
Loss, defined: when the thing perishes; goes status before the celebration of the contract.
out of commerce; disappears in such a way that
its existence is unknown or it cannot be
recovered
III. Obligations with a Period
II. Reciprocal Obligations Period or Term (Asked in ’84, ’86 and ’91):
Interval of time, which either suspends
demandability or produces extinguishment.
Obligations which are established from same The period must be: future, certain, and possible
cause, such that one obligation is correlative to (Tolentino, 1987).
the other. It results in mutual relationship
between the creditor and the debtor. It is  Fortuitous event does not interrupt the
performed simultaneously, so that the running of the period. It only relieves the
performance of one is conditioned upon the contracting parties from the fulfillment of
simultaneous fulfillment of the other. their respective obligations during the
period.
Tacit Resolutory Condition: if one of the  Kinds of Period (Art. 1193):
parties fail to comply with what is incumbent 1. Ex die - period with a suspensive effect.
upon him, there is a right on the part of the other Obligation becomes demandable after
to rescind the obligation. The power to rescind is the lapse of the period.
given to the injured party (Tolentino, 1987). 2. In diem - period with a resolutory effect.
Obligation is demandable at once but is
Rescission of Reciprocal Obligations (Art. extinguished upon the lapse of the
1191, CC) period.
 Right to rescind is implied in reciprocal
obligations thus where one party fails to Art. 1180, Civil Code. When the debtor binds himself
comply with this obligation under a contact, to pay when his means permit him to do so, the
the other party has the right to either obligation shall be deemed to be one with a period,
demand the performance or ask for the subject to the provisions of Article 1197.
resolution of the contract.
 Based on the breach of faith committed by Term/Period and Condition Distinguished
the person who is supposed to comply with
the obligation as compared to the rescission Term/Period Condition
referred to in Art. 1308 which involves the Interval of time which is Fact or event which is
damage or lesion, or injury to the economic future and certain future and uncertain
interest of a person.
Must necessarily come, May or may not happen
 Where both parties have committed a although it may not be
breach of obligation, the liability will be known when

lOMoARcPSD|3291925
Exerts an influence upon Exerts an influence upon  Art. 1197 does not apply to contract of
the time of demandability the very existence of the services and to pure obligations.
or extinguishment of an obligation itself  The court, however, to prevent
obligation unreasonable interpretations of the
No retroactive effect Has retroactive effect immediate demandability of pure obligations,
unless there is an
agreement to the contrary
may fix a reasonable time in which the
When it is left exclusively When it is left exclusively debtor may pay.
to the will of the debtor, to the will of the debtor, (Tolentino, 1987)
the existence of the the very existence of the 101
obligation is not affected obligation is affected When Debtor Loses Right to Use Period
OBLIGATIONS
Art.1198: I GIV A LA
Benefit of the Period 1. Debtor becomes Insolvent, unless he gives
Presumption: Period in an obligation is a guaranty or security for his debt, after
presumed to be established for the benefit of obligation is contracted
both the creditor and debtor, UNLESS: If from 2. Debtor fails to furnish the Guaranties or
the tenor of the obligation or other securities promised
circumstances, it shall appear that the period 3. Debtor by his own acts Impaired said
has been established in favor of either the guaranties or securities after their
creditor or debtor (Art. 1196). establishment, and when through a
fortuitous event they disappear, unless he
Period for the Benefit of either Creditor or immediately gives new one equally
Debtor satisfactory
4. Debtor Violates any undertaking, in
Creditor Debtor consideration of which the creditor agreed to
Creditor may demand Debtor may oppose any the period
the fulfillment or premature demand on 5. Debtor attempts to Abscond
performance of the the part of the oblige for 6. By Law or stipulation
obligation at any time the performance of the 7. Parties stipulate an Acceleration Clause
but the obligor cannot obligation, of if he so
compel him to accept desires, he may
payment before the renounce the benefit of In the cases provided, the obligation becomes
expiration of the period the period by performing immediately due and demandable even if the
his obligation in advance period has not yet expired. The obligation is thus
converted into a pure obligation (Tolentino,
1987).
When court may fix period
Art. 1197: as general rule, the court is not
authorized to fix a period for the parties (De IV. Alternative and Facultative
Leon, 2003). Obligations
Araneta v. Phil. Sugar Estates, provides:
Alternative Obligations Facultative Obligations
First, the Court shall determine:
 If the obligation does not fix a period, but from Several objects are due Only one object is due
its nature and circumstances, it can be inferred May be complied with by May be complied with by
that a period was intended delivery of one of the the delivery of another
 If the period is void, such as when it depends objects or by performance object or by the
upon the will of the debtor of one of the prestations performance of another
 If the debtor binds himself when his means which are alternatively prestation in substitution
permit him to do so. due of that which is due
Second, it must decide what period was “probably Choice may pertain to Choice pertains only to
contemplated by the parties”. debtor, creditor, or third the debtor
person
 The only action that can be maintained
Loss/impossibility of all Loss/impossibility of the
under Art. 1197 is the action to ask the objects/prestations due to object/prestation due to
courts to fix the term within which the debtor fortuitous event shall fortuitous event is
must comply with his obligation. The extinguish the obligation. sufficient to extinguish
fulfillment of the obligation itself cannot be The loss/impossibility of the obligation
demanded until after the court has fixed the one of the things does not
period for compliance, therewith, and such extinguish the obligation.
period has arrived. Culpable loss of any of Culpable loss of the
the objects alternatively object which the debtor

lOMoARcPSD|3291925
due before the choice is may deliver in Effect of Loss of Objects

made may give rise to substitution before the
liability on the part of the substitution is effected Art. 1204: Debtor’s Choice
debtor does not give rise to any Fortuitous Debtor’s Fault
liability on the part of the Event
debtor All Lost Debtor is Creditor shall have
released from the a right to indemnity
A. Alternative Obligations obligation for damages based
on the value of the
Several prestations are due but the performance last thing which 102
of one is sufficient (De Leon, 2003). disappeared or
OBLIGATIONS
service which
Right of Choice become impossible
Some Debtor to deliver Debtor to deliver
Art. 1200: to the debtor, UNLESS:
that which he that which the
1. when it is expressly granted to the shall choose creditor shall
creditor from among the choose from among
2. when it is expressly granted to a third remainder the remainder
person without damages
One Debtor to deliver Debtor to deliver
Limitations to the right of choice Remains that which that which remains
1. impossible prestations remains
2. unlawful prestations
3. those which could not have been the Art. 1205: Creditor’s Choice
object of the obligation Fortuitous Debtor’s Fault
4. only one prestation practicable (Art. Event
1202) All Lost Debtor is Creditor may claim
released from the the price/value of
(De Leon, 2003)
obligation any of them with
indemnity for
When choice shall produce effect damages
Art. 1201: Choice shall produce no effect except Some Debtor to deliver creditor may claim
from the time it has been communicated. The that which he any of those
effect of the notice is to limit the obligation of the shall choose subsisting without a
object or prestation selected. Notice of selection from among the right to damages
or choice may be in any form provided it is remainder OR price/value of
sufficient to make the other party know that the the thing lost with
right to damages
selection has been made. It can be:
One Creditor may Creditor may claim
o oral Remains claim any of the remaining thing
o in writing those subsisting without a right to
o tacit without a right to damages OR the
o any other equivocal means damages OR price/value of the
 Choice of the debtor when communicated to price/value of the thing lost with right
the creditor does not require the latter’s thing lost with to damages
concurrence. right to damages
 When the choice is rendered impossible
through the creditor’s fault, the debtor may
bring an action to rescind the contract with B. Facultative Obligation
damages (Art.1203).
 Obligation is converted into a simple Only one prestation has been agreed upon but
obligation when: the debtor may render another in substitution
o When the person who has the right of (De Leon, 2003)
choice has communicated his choice
(Art. 1201) Effect of Loss of Substitute
o When only one prestation is practicable
(Art. 1202) Before Substitution is After Substitution is
Made Made
If due to bad faith or The loss or
fraud of obligor: obligor deterioration of the
is liable substitute on account
of the obligor’s delay,
negligence or fraud

lOMoARcPSD|3291925
If due to the negligence obligor is liable authorize a creditor to demand anything

of the obligor: obligor is because once from his co-debtors
not liable substitution is made, 5. Defense of res judicata is not extended from
the obligation is one debtor to another
converted into a simple
one with the substituted
thing as the object of Joint Divisible Obligation
the obligation. Art. 1208: Each creditor can demand only for the
payment of his proportionate share of the
credit, while each debtor can be liable only for 103
the payment of his proportionate share of the
V. Joint and Solidary Obligations
OBLIGATIONS
debit
A. Joint Obligations Presumption: Credit or debt shall be presumed

to be divided into as many equal shares as there
One where a concurrence of several creditors, are creditors or debtors.
or of several debtors, or of several creditors and  Joint creditor cannot act in representation of
debtors, by virtue of which, each of the creditors the others, neither can a joint debtor be
has a right to demand, and each of the debtors compelled to answer for the liability of
is bound to render compliance with his others.
proportionate part of the prestation which
constitute the object of the obligation (Obligacion Joint Indivisible Obligation
Mancomunada). Art. 1209: no creditor can act in representation
of the other; no debtor can be compelled to
Presumption: Obligation is presumed joint if answer for the liability of the others.
there is a concurrence of several creditors, of  If there are two or more debtors, the
several debtors, or of several creditors and fulfillment of or compliance with the
debtors in one and the same obligation (Art. obligation requires the concurrence of all the
1207). debtors, although each for his own share
and for the enforcement of the obligation
Exceptions:  In case of breach where one of the joint
1. When the obligation expressly stated that debtors fails to comply with his undertaking,
there is solidarity the obligation can no longer be fulfilled or
2. When the law requires the solidarity performed. Consequently, it is converted
3. When the nature of the obligation requires into one of indemnity for damages.
solidarity  In case of insolvency of one of the
4. When the nature or condition is imposed debtors, the others shall not be liable for his
upon heirs or legatees, and the testament shares. To hold otherwise would destroy the
expressly makes the charge or condition in joint character of the obligation.
solidum
5. When the solidary responsibility is imputed Joint Divisible Joint Indivisible
by a final judgment upon several defendants Obligations Obligations
In case of breach of In case of breach where
Principal Effects of Joint Liability obligation by one of the one of the joint debtors
1. Demand by one creditor upon the debtor, debtors, damages due fails to comply with his
produces the effects of default only with must be borne by him undertaking, the
alone obligation can no longer
respect to the creditor who demanded and
be fulfilled or performed.
the debtor on whom the demand was made, Thus action must be
but not with respect to others converted into indemnity
2. Interruption of prescription by the judicial for damages.
demand of one creditor upon a debtor, does
not benefit the other creditors nor interrupt  Plurality of Creditors: If one or some of
the prescription as to other debtors the creditors demands the prestation,
3. Vices of each obligation arising from the the debtor may legally refuse to deliver
personal defect of a particular debtor or to them, he can insist that all the
creditor does not affect the obligation or right creditors together receive the thing, and
of the others if any of them refuses to join the others,
4. Insolvency of a debtor does not increase the the debtor may deposit the thing in court
responsibility of his co-debtors, nor does it by way of consignation (Tolentino,
1987).

lOMoARcPSD|3291925
B. Solidary Obligation A solidary creditor cannot assign his

rights without the consent of the others.
An obligation where there is concurrence of (Art. 1213)
several creditors, or of several debtors, or of  Each debtor may pay to any solidary
several creditors and several debtors, by virtue creditor, but if any demand, judicial or
of which, each of the creditors has the right to extrajudicial, has been made by one of
demand, and each of the debtors is bound to them, payment must be made to him.
render, entire compliance with the prestation (Art. 1214)
which constitutes the object of the obligation 2. Passive (solidarity among debtors): Each 104
(Obligacion Solidaria). debtor can be made to answer for the
OBLIGATIONS
others, with the right on the part of the
Indivisibility Solidarity debtor-payor to recover from the others their
Refers to the prestation Refers to the legal tie or respective shares.
which constitutes the vinculum, and  Creation of a relationship of mutual
object of the obligation consequently to the guaranty among co-debtors
subjects or parties of  The total remission of the debt in favor
the obligation
of a debtor releases all the debtors
Plurality of subjects is not Plurality of subjects is
required indispensable  All the debtors are liable for the loss of
In case of breach, When there is liability the thing due, even if such loss is
obligation is converted into on the part of the caused by the fault of only one of them
indemnity for damages debtors because of the and for delay, even if it is caused by just
because the indivisibility of breach, the solidarity one of them
the obligation is terminated among the debtors  The interruption of prescription as to
remains one debtor affects all the others; but the
renunciation by one debtor of
 The indivisibility of an obligation does not prescription already had does not
necessarily give rise to solidarity. Nor does prejudice the others
solidarity itself imply indivisibility. (Art. 1211) 3. Mixed: Solidarity among creditors and
debtors
Kinds of Solidary Obligations  Solidarity is not destroyed by the fact
1. Active (solidarity among creditors): Each that the obligation of each debtor is
creditor has the authority to claim and subject to different conditions or periods.
enforce the rights of all, with the resulting The creditor can commence an action
obligation of paying everyone of what against anyone of the debtors for the
belongs to him. compliance with the entire obligation
 Creation of a relationship of mutual minus the portion or share which
agency among co-creditors. corresponds to the debtor affected by
the condition or period.
____________________________________________________________________________________
Effects of Modes of Extinguishment
Assignment of Loss or
Compensation &
Rights in Solidary Novation Remission Impossibility
Confusion
Obligations
 The solidary  If prejudicial, the  If it is partial, the  If entire  If not debtors’
creditor cannot solidary creditor rules regarding obligation, fault, the
assign his right who effected the application of obligation is totally obligation is
because it is novation shall payment shall extinguished. extinguished
predicated upon reimburse the apply (w/o)  If for the benefit  If thru debtors’
mutual others for prejudice to the of one of the OR fortuitous
confidence, damages incurred right of other debtors covering event after delay,
UNLESS, the (1) by them; creditors who his entire share, the obligation is
the assignment is  If beneficial and have not caused he is completely converted into
to a co-creditor; secured by one, the confusion or released from the indemnity for
(2) assignment is he shall be liable compensation to creditor/s. damages but the
with consent of to the others for be reimbursed to  If for the benefit solidary character
co-creditor the share the extent that of one of the of the obligation
(obligation & their rights are debtors and it remains.
benefits) which diminished or covers only part

lOMoARcPSD|3291925
corresponds to affected of his share, his

them  If total, the character as a
 If by substituting obligation is solidary debtor is
the debtor, the extinguished, not affected.
solidary creditor what is left is the
who effected the ensuing liability
novation is liable for reimbursement
for the acts of the
new debtor in
deficiency or 105
damages
OBLIGATIONS
 If by subrogating
a third person in
creditor’s rights,
the obligation is
not in reality
extinguished as
the relation
between the other
creditors and the
debtor/s is
maintained.
Effects of Prejudicial and Beneficial Acts The creditor may proceed If two or more solidary
(Art.1212) against any one of the debtors offer to pay, the
solidary debtors or all creditor may choose
1. Each one of the solidary creditors may do simultaneously (Art. which offer to accept.
whatever may be useful or beneficial to the 1216) (Art. 1217)
others, but not anything which may be A creditor’s right to The solidary debtor who
prejudicial to the latter. proceed against the made the payment shall
2. As far as the debtors are concerned, a surety exists have the right to claim
prejudicial act performed by a solidary independently of his right from his co-debtors the
creditor is binding. to proceed against the share which corresponds
3. As between the solidary creditors, the principal to them with interest,
UNLESS barred by
creditor who performed such act shall incur prescription or illegality.
the obligation of indemnifying the others for (Art. 1218)
damages.
 When a solidary debtor pays the entire
Defenses Available to a Solidary Debtor (Art. obligation, the resulting obligation of the co-
1222) debtors to reimburse him becomes joint.
1. Those derived from the nature of the  If payment was made before the debt
obligation became due, no interest during the
2. Those personal to him intervening period may be demanded. (Art.
3. Those pertaining to his own share 1217 par. 2)
4. Those personally belonging to other co-  When one of the solidary debtors cannot
debtors but only as regards that part of the reimburse his share to the debtor paying the
debt for which the latter are responsible. obligation due to insolvency, such share
shall be borne by all his co-debtors, in
Effects proportion to the debt of each. (Art. 1217,
par. 2)
Demand Upon a Payment by a Debtor
Solidary Debtor
Inchausti v. Yulo, (1914): Debtors obligated
The demand made Full payment made by
themselves solidarily, so creditor can bring its action
against one of them shall one of the solidary
against any of them. Remission of any part o fthe
not be an obstacle to debtors extinguishes the
debt, made by the creditor in favor of one of the
those which may obligation. (Art. 1217)
solidary debtors, inures to the benefit of the rest of
subsequently be directed
them.
against the others so
long as the debt has not
been fully collected. (Art.
1216)

lOMoARcPSD|3291925
VI. Divisible and Indivisible Obligations  If the principal obligation is void, penal
clause shall also be void. However, the
nullity of the penal clause does not carry
A. Divisible Obligations
with it the nullity of the principal
obligation (Art.1230).
One which is susceptible of partial performance;
that is, the debtor can legally perform the
Purposes of Penalty
obligation by parts and the creditor cannot 1. Funcion coercitiva de garantia - to insure the
demand a single performance of the entire performance of the obligation.
obligation (Tolentino, 1987). 2. Funcion liquidatoria - to liquidate the amount of
106
damages to be awarded to the injured party in
OBLIGATIONS
B. Indivisible Obligations case of breach of the principal obligation
(compensatory).
One which cannot be validly performed in parts 3. Function estrictamente penal - to punish the
(Tolentino, 1987). obligor in case of breach of the principal
 Divisibility/indivisibility refers to the obligation (punitive).
performance of the prestation and not to the
thing which is the object thereof. The thing Effects of Penalty
may be divisible, yet the obligation may be 1. The penalty shall substitute the indemnity for
indivisible. damages and payment of interest in case of
 When the obligation has for its object the non-compliance (Art. 1226), UNLESS:
a. There is a stipulation to the contrary
execution of a certain number of days of b. The obligor refuses to pay the penalty
work, the accomplishment of work by c. The obligor is guilty of fraud
metrical units, or analogous things which by 2. Debtor cannot exempt himself from the
their nature are susceptible of partial performance of the principal obligation by
performance, it shall be divisible (Art.1225, paying the stipulated penalty unless this
par. 2). right has been expressly reserved for him
 When there is plurality of debtors and (Art. 1227).
creditors, the effect of divisibility/indivisibility 3. Creditor cannot demand the fulfillment of the
of the obligation depend upon whether the principal obligation and demanding the
obligation is joint or solidary. satisfaction of the penalty at the same time
 A joint indivisible obligation give rise to unless the right has been clearly granted to
indemnity for damages from the time anyone him (Art. 1227). Tacit or implied grant is
of the debtors does not comply with is admissible.
undertaking. a. If creditor has chosen fulfillment of the
(Art. 1224) principal obligation and performance thereof
become impossible without his fault, he may
Effect still demand the satisfaction of the penalty.
Creditor cannot be compelled partially to receive b. If there was fault on the part of the debtor,
the prestation in which the obligation consists; creditor may demand not only satisfaction of
neither may the debtor be required to make the penalty but also the payment of damages.
c. If creditor chooses to demand the
partial payment (Art. 1248), UNLESS:
satisfaction of the penalty, he cannot
 The obligation expressly stipulates the afterwards demand the fulfillment of the
contrary obligation.
 The different prestations constituting the
objects of the obligation are subject to Proof of Actual Damage
different terms and conditions Art. 1228: Proof of actual damages is not
The obligation is in part liquidated and in part necessary is applicable only to the general rule
unliquidated stated in Art. 1226 and not to the exceptions.
The penalty is exactly identical with what is
known as “liquidated damages” in Art. 2226.
VII. Oblligations with a Penal Clause
When Penalty may be Reduced
Penal Clause: An accessory undertaking to Art. 1229:
assume greater liability in case of breach (De 1. If the principal obligation has been partly
Leon, 2003). It is attached to an obligation in complied with.
order to ensure performance. The enforcement 2. If the principal obligation has been irregularly
of the penalty can be demanded by the creditor complied with.
only when the non-performance is due to the 3. If the penalty is iniquitous or unsconscionable
fault or fraud of the debtor. even if there has been no performance.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IV. EXTINGUISHMENT of OBLIGATIONS
singular. There must be full and faithful compliance

Chapter IV. Extinguishment of with the terms of the contract.
Obligations
B. Payment by Cession (Art. 1255)
I. PAYMENT OR PERFORMANCE
II. LOSS OF THE THING DUE OR IMPOSSIBILITY Act whereby a debtor abandons all his property
OF PERFORMANCE to his creditors, so that the latter may apply the
III. CONDONATION OR REMISSION OF THE proceeds (of its sale) to their credits.
DEBT
IV. CONFUSION OR MERGER OF RIGHTS 107
V. COMPENSATION
C. Dation in payment (Art. 1245)
OBLIGATIONS
VI. NOVATION
Delivery and transmission of ownership of a
thing by the debtor to the creditor as an
accepted equivalent of the performance of the
I. Payment or Performance obligation (dacion en pago).
Art. 1232, Civil Code. Payment means not only Dation in payment Payment by cession
delivery of money but also performance, in any
manner, of the obligation. In favor of only one There are various
creditor creditors
See Diagrams of Prof. Labitag at the end Payment extinguishes the Extinguishes credits
obligation to the extent of only up to the extent of
section of Obligations.
the value of the thing proceeds from sale of
delivered, unless the assigned property,
SPECIAL FORMS OF PAYMENT parties agree that the unless otherwise
obligation be totally agreed upon
A. Application of Payment (Art. 1252) extinguished
Transfer of ownership of Only possession and
Designation of the debt to which should be thing alienated to creditor administration with
applied a payment made by a debtor who owes authorization to convert
several debts to the same creditor property to cash with
which the debts shall
be paid
Rules on Application— Not necessarily in state of Assignment
1. Preferential right of debtor - debtor has the financial difficulty presupposes
right to select which of his debts he is insolvency of debtor.
paying. Assignment of only some Assignment involves all
2. The debtor makes the designation at the specific thing the property of the
time he makes the payment debtor.
3. If not, the creditor makes the application, by
so stating in the receipt that he issues, D. Tender of payment and consignation
unless there is cause for invalidating the
contract. 1. Tender of payment: Manifestation made by
4. If neither the creditor nor debtor exercises debtor to creditor of his desire to comply
the right to apply, or if the application is not with his obligation, with offer of immediate
valid, the application is made by operation of performance
law.  Preparatory act to consignation
5. If debt produces interest - payment not  Extrajudicial in character
deemed applied to the principal unless
interests are covered. 2. Consignation: Deposit of the object of
6. When no application can be inferred from obligation in a competent court in
the circumstances of payment, it is applied accordance to the rules prescribed by law,
to: to the most onerous debt of the debtor; or whenever the creditor unjustly refuses
if debts due are of the same nature and payment or because of some circumstances
burden, to all the debts in proportion which render direct payment to the creditor
7. Rules of application of payment may not be impossible or inadvisable.
invoked by a surety or solidary guarantor.  Principal act which constitutes a form of
payment.
Reparations Commission vs. Universal Deep Sea  Judicial in character.
Fishing Corp. (1978): Rules on application of payment
cannot be made applicable to a person whose
obligation as a mere surety is both contingent and

lOMoARcPSD|3291925
When Tender and Refusal Not Required (Art. 2. After approval of the court or acceptance by
1259)— the creditor, with the consent of the latter -
1. Creditor is absent or unknown, or does not Obligation remains in force, but guarantors
appear at the place of payment and co-debtors are liberated. Preference of
2. Creditor is incapacitated to receive the thing the creditor over the thing is lost.
due at time of payment 3. After approval of the court or acceptance by
3. Without just cause, creditor refuses to give the creditor, and without creditor’s consent -
receipt Obligation subsists, without change in the
4. Two or more persons claim the same right to liability of guarantors and co-debtors, or the 108
collect creditor’s right of preference.
OBLIGATIONS
5. Title of the obligation has been lost
Art. 1259, Civil Code. Expenses of consignation,
Effects of Withdrawal by Debtor when properly made, shall be charged against the
Arts. 1260- 1261 creditor.
1. Before approval of the court - Obligation
remains in force.
Requisites and Effects
Application of
Cession Dation Tender and Consignation
Payment
Requisites Requisites Requisites Requisites
1. Plurality of 1. Plurality of debts 1. Should not be 1. There is a debt due
debts 2. Plurality of prejudicial to 2. consignation is made because
2. Debts are of creditors other creditors of some legal cause
the same kind 3. Partial insolvency 2. Should not 3. previous notice of consignation
3. Debts are owed of the debtor constitute a was given to those persons
to the same 4. Abandonment of pactum interested in the performance
creditor and by the totality of the commissorium of the obligation
the same debtor’s 4. amount or thing due was
debtor properties for the placed at the disposal of the
4. All debts must benefit of the court
be due creditors 5. after the consignation has been
5. Payment made 5. Acceptance by made, the persons interested
is not sufficient the creditors were notified thereof
to cover all
debts
Effects Effects Effects Effects
Payment of debt Assignment liberates Extinguishment of If accepted by the creditor or
designated as to debtor up to the debt from as an declared properly made by the
corresponding amount of the net equivalent of the Court:
amount proceeds of the sale performance of the 1. Debtor is released in same
of his assets obligation manner as if he had performed
Assignment does not the obligation at the time of
vets title to the consignation
property in the 2. Accrual of interest is
creditors, suspended from the moment of
who are only consignation.
authorized to sell it. 3. Deterioration or loss of the
thing or amount consigned,
occurring without the fault of
debtor, must be borne by
creditor from the moment of
deposit
4. Any increment or increase in
the value of the thing after
consignation inures to the
benefit of the creditor

lOMoARcPSD|3291925
II. Loss or Impossibility Loss of the thing when in possession of the

(Asked in ’83, ’84, ’85, and ’94) debtor: Loss was due to the debtor’s fault.
Burden of explaining the loss of the thing falls
A. Loss upon him, UNLESS, due to a natural calamity:
earthquake, flood, storm, etc.
A thing is lost when it perishes, goes out of
commerce or disappears in such a way that its Subjective impossibility: Where there is no physical
or legal loss, but the thing belongs to another, the 109
existence is unknown or it cannot be recovered
performance by the debtor becomes impossible. The
(Art. 1189, par. 2)
OBLIGATIONS
debtor must indemnify the creditor for damages.
Effects of Loss
B. Impossibility of Performance (Arts. 1266-
Obligation to Deliver a Obligation to Deliver a
1267, CC)
Specific Thing Generic Thing
Extinguishment of the Loss of a generic thing
obligation if the thing was does not extinguish an When prestation becomes legally or physically
destroyed w/o fault of the obligation, UNLESS, impossible (by fortuitous event or force
debtor and before he has Delimited generic majeure), the debtor is released.Impossibility
incurred delay. things: kind or class is must have occurred without fault of debtor, and
limited itself, and the after the obligation has been constituted.
whole class perishes
PARTIAL IMPOSSIBILITY
rd
1. Courts shall determine whether it is so
Action against 3 persons - creditor shall have important as to extinguish the obligation.
all the rights of action the debtor may have 2. If debtor has performed part of the obligation
rd
against 3 persons by reason of the loss. when impossibility occurred, creditor must
pay the part done as long as he benefits
Presumption: The loss was due to the debtor’s from it.
fault, UNLESS: 3. If debtor received full payment from creditor,
1. Law provides that the debtor shall be liable he must return excess amount
even if the loss is due to fortuitous events corresponding to part which was impossible
(Arts. 1942, 1979, 2147, 2159) to perform.
2. Obligor is made liable by express stipulation
3. Nature of the obligation requires an Doctrine of Unforeseen Events
assumption of risk When the service has become so difficult as to
4. Fault or negligence concurs with the be manifestly beyond the contemplation of all
fortuitous event the parties, the obligor may be released in whole
5. Loss occurs after delay or in part (De Leon, 2003).
6. Debtor has promised to deliver the same
thing to two or more different parties Requisites:
7. Obligation arises from a criminal act 1. Event could not have been foreseen at the
8. Borrower in commodatum: saves his own time of the constitution of the contract.
things and not the thing of the creditor 2. Event makes performance extremely difficult
during a fortuitous event but not impossible.
3. Event not due to any act of the parties.
In Reciprocal Obligations 4. Contract is for future prestation.
Extinguishment of the obligation due to loss of
the thing or impossibility of performance affects
both the creditor and debtor; the entire juridical
relation is extinguished.
III. Condonation or Remission of the
Debt
Partial loss
Art. 1264: Partial loss due to a fortuitous event CONDONATION: An act of liberality, by virtue of
does not extinguish the obligation; thing due which, without receiving any equivalent, creditor
shall be delivered in its present condition, renounces the enforcement of the obligation.
without any liability on the part of the debtor, The obligation is extinguished either in whole or
UNLESS, the obligation is extinguished when in such part of the same which to remission
the part lost was of such extent as to make the refers.
thing useless.

lOMoARcPSD|3291925
Requisites Effects
1. Debt must be existing and demandable Arts. 1275- 1277:
2. Renunciation must be gratuitous; without 1. The obligation is extinguished from the time
any consideration the characters of the debtor and creditor are
3. Debtor must accept the remission merged in the same person.
2. In joint obligations, confusion does not
Effect extinguish the obligation except as regards
Art. 1273: Renunciation of the principal debt the corresponding share of the creditor or
shall extinguish the accessory obligations, but debtor in whom the two characters concur. 110
remission of the latter leaves the principal 3. In solidary obligations, confusion in one of
OBLIGATIONS
obligation in force. the solidary debtors extinguishes the entire
obligation.
Presumptions 4. Obligation is not extinguished when
Arts. 1271, 1272, 1274: confusion takes place in the person of
 Whenever the private document in which the subsidiary debtor (e.g. guarantor), but
debt is found in the possession of the merger in the person of the principal debtor
debtor, it shall be presumed that the creditor shall benefit the former.
delivered it voluntarily, unless contrary is
proved.
 Delivery of a private document evidencing V. Compensation
credit, made voluntarily by the creditor to the
debtor, implies the renunciation of the action
COMPENSATION: Offsetting of two obligations
of creditor against the latter.
which are reciprocally extinguished if they are of
the same value, or extinguished to the
Kinds
concurrent amount if of different values. (Asked
1. As to form (Art. 1270)
in ’80, ’81, ’98, and ’02)
 Express: made formally; in accordance
with forms of ordinary donations
Compensation Confusion
 Implied: inferred from the act of the
parties There must always be 2 Involves only one
2. As to extent obligations obligation
 Total: entire obligation
 Partial: may refer only to amount of There are 2 persons who are There is only one
indebtedness, or to an accessory mutually debtors and person whom the
obligation, or to some other aspect of creditors of each other in 2 characters of the
the obligation separate obligations, each creditor and debtor
3. As to constitution arising from the same cause. meet
 Inter vivos: effective during the lifetime
of the creditor Kinds
 Mortis causa: effective upon death of the 1. As to extent
creditor; must be contained in a will or  Total: Debts are of the same amount
testament  Partial: Amounts are not equal
2. As to origin
 Legal: takes place by operation of law
 Conventional: parties agree to
IV. Confusion or Merger of Rights compensate their mutual obligations
even when some requisite in Art. 1279 is
CONFUSION: The meeting in one person of the lacking (Art. 1282).
qualities of creditor and debtor of the same  Judicial: decreed by court when there is
obligation. counterclaim; effective upon final
judgment (Art. 1283).
Requisites  Facultative: when it can be claimed by
1. It should take place between principal debtor one of the parties who, however, has the
and creditor right to object to it.
2. It must be complete and definite- Parties
must meet all the qualities of creditor and
debtor in the obligation/ in the part affected.

lOMoARcPSD|3291925
Requisites Effects VI. Novation

1. Each obligor is 1. Effects rise from the
bound principally, moment all the
and at the same time requisites concur. NOVATION: Extinguishment of an obligation by
a principal creditor of 2. Debtor claiming its the substitution or change of the obligation by a
the other benefits must prove subsequent one which extinguishes or modifies
2. Both debts must compensation; once the first either by changing the object or principal
consist in a sum of proven, effects conditions, or by substituting the person of the
money, or if the retroact from the debtor, or by subrogating a third person in the
things due are moment when the rights of the creditor. A juridical act of dual 111
FUNGIBLE, of the requisites concurred.
function—it extinguishes an obligation, and at
OBLIGATIONS
same kind & quality 3. Both debts are
3. Both debts are due extinguished to the the same time, it creates a new one in lieu of the
4. Debts are liquidated concurrent amount, old. (Asked in ’78, ’88, ’94 and ’01)
and demandable eventhough the
5. There must be no creditors and debtors Requisites
retention or are not aware of the 1. A previous valid obligation
controversy over compensation. 2. Agreement of all the parties to the new
either of the debts, 4. Accessory obligation
rd
commenced by 3 obligations are also 3. Extinguishment of the old obligation
persons and extinguished.
communicated in
4. Validity of the new obligation
due time to the
debtor Novation is not presumed.
6. Compensation is not  Express novation: Parties must expressly
prohibited by law disclose their intent to extinguish the old
obligation by creating a new one.
Compensation is prohibited in:  Implied novation: No specific form is
1. Contracts of depositum required. There must be incompatibility
2. Contracts of commodatum between the old and new obligation or
3. Future support due by gratuitous title contract.
4. Civil liability arising from a penal offense (Asked in ’79, ’82, ’88, and ’94)
5. Obligations due to the government
6. Damage caused to the partnership by a California Bus Line v. State Investment (2003): In the
partner absence of an unequivocal declaration of
extinguishment of the pre-existing obligation, only
ASSIGNMENT OF CREDIT (Art. 1285): proof of incompatibility between the old and new
No effect and does not bind the debtor unless obligation would warrant a novation by implication.
and until the latter is notified of the assignment The restructuring agreement merely provided for a
or learns of it. new schedule of payments and authority giving Delta
to take over management and operations of CBLI in
Without case it fails to pay installments. There was no change
With Debtor’s With Debtor’s
Debtor’s in the object of prior obligations.
Consent Knowledge
Knowlege
Debtor’s Debtor may set Debtor may Test of Incompatibility
consent to up setup Whether or not the old and new obligation can
assignment of compensation compensation
stand together, each one having an independent
credit of debts of all credits
constitutes a (maturing) (maturing) prior existence. No incompatibility exists when they
waiver of before the to the can stand together. Hence, there is no novation.
compensation, assignment of assignment and Incompatibility exists when they cannot stand
unless he credit but not of also latter ones together. Hence, there is novation.
reserved his subsequent until he had
right to ones knowledge of Effects
compensation. the assignment.
In General If Original If New
Facultative compensation: Compensation which Obligation is Obligation is
can only be set up at the option of a creditor, when Void Void
legal compensation cannot take place because some 1. Old Novation is void if New obligation is
legal requisites in favor of the creditor are lacking. obligation is the original void, the old
Creditor may renounce his right to compensation, and extinguished obligation was obligation
he himself may set it up.As opposed to conventional and replaced void, except subsists, unless
compensation, facultative compensation is unilateral by the new when annulment the parties
one may be claimed intended that the
and does not depend upon the agreement of the stipulated. only by the former realations
parties.

lOMoARcPSD|3291925
debtor, or when shall be Expromision Delegacion

ratification extinguished in Initiative for change does Debtor (delegante) offers
validates acts any event. (Art. not emanate from the or initiates the change,
that are voidable. 1297)
(Art. 1298) 1. New obligation
debtor, and may and the creditor
rd
1. Original void: No novation Even be made without (delegatorio) accepts 3
obligation is void: 2. New obligation his knowledge. person (delegado) as
No novation voidable: consenting to the
2. Original Novation is substitution
obligation effective Requisites Requisites
voidable: 1. Consent of the 1. Consent of old 112
Effective if
creditor and the new debtor, new debtor,
contract is ratified
OBLIGATIONS
before novation debtor and creditor
2. Knowledge or
consent of the old
 Accessory obligations are also extinguished, debtor is not
but may subsist only insofar as they may required
rd
benefit 3 persons who did not give their Effects Effects
consent to the novation OR may not be 1. Old debtor is 1. Insolvency of the
affected upon agreement between the released new debtor revives
parties. 2. Insolvency of the the obligation of the
new debtor does not old debtor if it was
Original or new obligation with suspensive or revive the old anterior and public,
resolutory condition obligation in case the and known to the old
old debtor did not debtor.
Art. 1299: If original obligation was subject to a agree to expromision 2. New debtor can
suspensive or resolutory condition, the new 3. If with knowledge demand
obligation shall be under the same condition, and consent of old reimbursement of
unless it is otherwise stipulated. debtor, new debtor the entire amount he
can demand has paid, from the
Compatible Conditions Incompatible reimbursement the original debtor. He
Conditions entire amount paid may compel creditor
 Fulfillment of both  Original obligation is and w/ subrogation to subrogate him to
conditions: new extinguished, while of creditor’s rights all of his rights.
obligation becomes new obligation exists 4. If without knowledge
demandable  Demandability shall of the old debtor,
 Fulfillment of be subject to new debtor can
condition concerning fulfillment/ demand
the original nonfulfillment of the reimbursement only
obligation: old condition affecting it up to the extent that
obligation is revived; the latter has been
new obligation loses benefited w/o
force subrogation of
 Fulfillment of creditor’s rights
condition concerning
rd
the new obligation: 2. Subrogation of a 3 person in the rights
no novation; of the creditor
requisite of a a. Conventional subrogation: by
previous valid and
agreement of the parties;
effective obligation
lacking rd
Requisites: the consent of the 3
person, and of the original parties (Art.
OBJECTIVE NOVATION 1301).
1. Change of the subject matter
Conventional Assignment of credit
2. Change of causa or consideration
subrogation
3. Change of the principal conditions or terms Debtor’s consent is Debtor’s consent is not
necessary required
SUBJECTIVE NOVATION Extinguishes an Refers to the same right
1. Substitution of the Debtor: Consent of obligation and gives which passes from one
creditor is an indispensable requirement rise to a new one person to another, without
both in expromision and delegacion. modifying or extinguishing
the obligation

lOMoARcPSD|3291925
Defects/ vices in the Defects/ vices in the old

old obligation are obligation are not cured
cured
b. Legal subrogation: by operation of law
Legal subrogation is not presumed,

except in the following circumstances:
1. When creditor pays another creditor
113
who is preferred, even without the
OBLIGATIONS
debtor’s knowledge
rd
2. When a 3 person not interested in
the obligation pays with the express
or tacit approval of the debtor
3. When, even without the knowledge
of the debtor, a person interested in
the fulfillment of the obligation
without prejudice to the effects of
confusion as to the latter’s share
effects of confusion as to the latter’s
share
Effects
Total Partial
1. Transfers to the 1. A creditor, to whom
person subrogated partial payment has
the credit with all the been made, may
rights thereto exercise his right for
appertaining, either the remainder, and
against the debtor or shall be preferred to
rd
3 persons. the person
2. Obligation is not subrogated in his
extinguished, even if place in virtue of the
the intention is to partial payment.
pay it.
3. Defenses against the
old creditor are
retained, unless
waived by the debtor

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Charts: PAYMENT & PERFORMANCE
Charts: Payment & Performance

by Professor Eduardo A. Labitag
UP College of Law
(Asked in ’75, ’84, ’88, ’95, and ’98)
WHO CAN PAY? Legend:

G = General Rule 114
In GENERAL  = Exception
OBLIGATIONS
1. Debtor or his: C = Creditor
2. Authorized Agent D = Debtor
3. Heir
4. Successor-in- interest
3rd PERSON
Interested in obligation Not interested in obligation 3rd person (whether or not

(creditor cannot refuse (creditor may refuse to accept interested in obligation) does not
to accept valid payment) payment [1236]) intend to be reimbursed (1238)
Payment w/ or Payment with Payment without Debtor must give

w/o debtor’s debtor’s consent debtor’s knowledge consent
knowledge (express/tacit) or against the will of D
Effects: Effects: Effects: Effects:

1. Valid payment; 1. 3rd person is entitled 3rd person can only be 1. Payment is deemed
obligation extinguished to full reimbursement reimbursed only insofar as as a donation/offer of
2. Debtor to reimburse 2. Legal subrogation payment has been beneficial to donation
fully 3rd person interested (novation) – 3rd person debtor(1236, 2nd. par.) 2. Donation must be in
in obligation is subrogated/step into burden of proof on 3rd person proper form (if above
3. 3rd person subrogated the shoes of creditor cannot compel C to subrogate P5Th must be in
to rights of creditor him (1237) writing
No free disposal & no Effects: Payment is invalid  w/o prejudice to

In Obligation to Give, if capacity to alienate natural obligations
PAYOR has
Minor who entered Effects: No right to recover fungible
contract w/o consent of thing delivered to creditor who spent 114
parent or guardian or consumed it in good faith

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TO WHOM PAYMENT MAY BE MADE
In GENERAL
• Creditor /person in whose favor obligation was
constituted, or
• His successor in interest, or
• Any person authorized to received payment (1240) 115
OBLIGATIONS
G – NOT valid
Payment to Incapacitated
Creditor (1241)
 1) If C has kept the thing delivered
2) Insofar as payment benefited C
 Exception to proof of benefit:

Payment to 3rd G VALID if 3rd .3rd person acquires C’s rights after payment
PERSON (1241, person proves .C ratifies payment
2nd par.) that it .C’s conduct leads D to believe that 3rd
redounded to person had authority to receive payment
C’s benefit .Assignment of credit without notice to D
If no demand is made, D may pay to ANY of

solidary creditors
In Case of
ACTIVE
SOLIDARITY
If any judicial/extrajudicial demand is made by any
one of the creditors who made the demand (1214) 115
Effect:  Extinguishment if fault or

No extinguishment negligence can be imputed
If payment is made to creditor
to a WRONG
PARTY  Payment in good faith to person in
possession of credit = debtor released
(1242)
If debtor pays creditor after being

judicially ordered to retain debt =
payment not valid (1243)
Payment made in good faith to any

person in possession of credit
Effect: D released (1242)

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WHAT IS TO BE PAID?  IDENTITY
In GENERAL
The very prestation (thing or service
Give: Debtor cannot compel C

1. Specific thing itself
2. Accessions & accessories
to receive a different 116
Obligation to give a specific thing even latter
3. If with loss, improvements, has same value or more
OBLIGATIONS
SPECIFIC thing
deterioration  Apply Art. valuable than that due
1189 (1244)
G:
C cannot demand a thing of superior quality;
can demand inferior
D cannot deliver a thing of inferior quality
 Unless quality & circumstances have been

Obligation to give a stated (1246) purpose and other circumstances
GENERIC thing of obligation considered
Obligation to pay sum of money, if D alienates

property to C = DACION EN PAGO governed by
law on SALES (1245)
Identity: The very same act promised to be done

Obligation to DO or or not to be done
NOT to DO  Substitution cannot be done against C’s will
(1244, 2nd par.)
1. Payment of domestic obligations in Phil.

Currency
 Exceptions under R.A. 4100; R.A. 8183 –
Payment of
Foreign currency if agreed to by parties
MONEY
2. In case of extraordinary inflation/deflation,
basis
of payment is value of currency at the time of
obligation was established (1250)
Payment of No interest (i.e., for the use of someone’s money)

INTEREST shall be due unless expressly stipulated in writing

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HOW IS PAYMENT TO BE MADE  INTEGRITY
In GENERAL  Effect if C accepts incomplete

performance (1235): WAIVER
1233 – Complete delivery or rendering
1248 – C cannot be compelled to - May be express or implied
received partial prestations; D cannot If C knows the incompleteness/
be compelled to give partial payments irregularity of the payment, and he
still accepts it w/o objection, then
obligation is deemed extinguished
 Exceptions: (estoppel) 117
1. Contrary stipulation * There must be intent to waive
OBLIGATIONS
2. When debt is in part liquidated & in part  Except if C has no knowledge of
unliquidated the incompleteness
3. When there are several subjects/parties
are bound under different terms/conditions
In Case of SUBSTANTIAL D may recover as if there had

PERFORMANCE IN been complete fulfillment
GOOD FAITH (1234) - Less damages suffered by C
INTEREST – If principal amount is

received w/o reservation as to
interest  interest is presumed to
PRESUMPTIONS have been paid (1176; 1253)
in payment of
INTERESTS &
INSTALLMENTS INSTALLMENTS  If a latter
installment of a debt is received
w/o reservation to prior
installments
 Prior installments are
presumed paid (1176, 2nd par.)

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WHERE PAYMENT IS TO BE MADE (ART. 1251)
In GENERAL
In the place designated in the obligation
If obligation is to deliver a Expenses of Making 118

SPECIFIC thing Payment
 Place of performance is
OBLIGATIONS
wherever the thing was at
the moment obligation was
In GENERAL
constituted
Extrajudicial expenses
If no place is designated  Unless there is a required by the payment
contrary express shall be borne by DEBTOR
stipulation
In any other case  Unless otherwise

 Domicile of debtor stipulated
If D changes his domicile

in bad faith or after he has As to JUDICIAL expenses
incurred in delay  Rules of Court shall
 Additional expenses govern
shall be borne by D

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WHEN PAYMENT IS TO BE MADE?
When obligation is due and

demandable but D may pay before
due date if period is for benefit of D
119
In GENERAL
OBLIGATIONS
Payment to be made when the creditor
makes a demand
(judicially/extrajudicially)
 Exceptions wherein demand of creditor is not

necessary for delay to exist:
1. When obligation/law expressly declares
2. Nature & circumstances of the obligation
designation of time is controlling motive or
establishment of contract
3. When demand would be useless
WHY SHOULD PAYMENT BE MADE?
Because C may compel D to pay, and

failure to pay will allow C to satisfy credit
from properties of D that are not exempt
from execution
- end of Obligations -

lOMoARcPSD|3291925

lOMoARcPSD|3291925
CONTRACTS
Table of Contents
Chapter I. General Provisions.....................122

I. Classification of Contracts.................122
II. Elements of Contracts.......................123
III. Stages of Contracts...........................123
IV. Charactertics of Contracts (MARCO) 123
Chapter II. Essential Requisites .................125 121

I. Consent .............................................125
CONTRACTS
II. Object ................................................127
III. Cause ................................................127
Chapter III. Forms of Contracts ..................129

I. Rules .................................................129
II. Kinds of Formalities...........................129
Chapter IV. Reformation of Contracts........130
Chapter V. Interpretation of Contracts.......130
Chapter VI. Defective Contracts .................131

131
132
III. Unenforceable Contracts (Arts. 1403-
1408) ..........................................................133
IV. Void or Inexistent Contracts (Arts. 1409-
1422) ..........................................................134

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Chapter I. General Provisions

OBLIGATIONS & CONTRACTS TEAM
OBLIGATIONS & CONTRACTS

Prof. Solomon Lumba I. CLASSIFICATION
Faculty Editor
II. ELEMENTS
Leo Ledesma III. STAGES
Lead Writer IV. CHARACTERISTICS
Krizel Malabanan
Ivy Velasco Article 1305, Civil Code. A contract is a meeting of
Tin Reyes minds, between two persons whereby one binds
Frances Domingo
himself, with respect to the other, to give something
Hazel Abenoja
Writers or to render some service.
CIVIL LAW 122

I. Classification of Contracts
CONTRACTS
Kristine Bongcaron
Patricia Tobias
Subject Editors
A. To formation:
1. Consensual: consent is enough; e.g.
ACADEMICS COMMITTEE sale
Kristine Bongcaron 2. Real: consent and delivery is required;
Michelle Dy e.g. deposit, pledge
Patrich Leccio 3. Solemn or formal: special formalities are
Editors-in-Chief required for perfection e.g. donation of
realty
PRINTING & DISTRIBUTION
Kae Guerrero B. To relation to other contracts:
1. Principal: may exist alone; e.g. lease
DESIGN & LAYOUT
2. Accessory: depends on another contract
Pat Hernandez for its existence; e.g. guaranty
Viktor Fontanilla 3. Preparatory: a preliminary step towards
Rusell Aragones
the celebration of a subsequent
Romualdo Menzon Jr.
Rania Joya contract; e.g. agency
LECTURES COMMITTEE C. To nature of vinculum

Michelle Arias 1. Unilateral: only one party is bound by
Camille Maranan the prestation; e.g. commodatum
Angela Sandalo 2. Bilateral (synallagmatic): where both
Heads parties are bound by reciprocal
Katz Manzano Mary Rose Beley prestations; e.g. sale
Sam Nuñez Krizel Malabanan
Arianne Cerezo Marcrese Banaag D. To fulfillment of prestations
Volunteers
1. Commutative: fulfillment is determined in
MOCK BAR COMMITTEE advance
2. Aleatory: fulfillment is determined by
Lilibeth Perez chance
E. By equivalence of prestations
Dahlia Salamat 1. Gratuitous: no correlative prestation is
LOGISTICS received by a party
2. Onerous: there is an exchange of
Charisse Mendoza correlative prestations
3. Remuneratory: the prestation is based
SECRETARIAT COMMITTEE
on services or benefits already received
Jill Hernandez
Head F. By the time of fulfillment
Loraine Mendoza Faye Celso 1. Executed: obligation is fulfilled at the
Mary Mendoza Joie Bajo time contract is entered into
Members 2. Executory: fulfillment does not take
place at the time the contract is made
G. To their purpose

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1. Transfer of ownership, e.g. sale III. Stages of Contracts

2. Conveyance of Use, e.g. Commodatum
3. Rendition of Service, e.g. agency
A. Preparation, conception or generation:
period of negotiation and bargaining, ending
H. To their subject matter
at the moment of agreement
1. Things, e.g. sale, deposit
2. Services, e.g. agency
B. Perfection or birth: the moment when the
parties come to agree on the terms of the
I. To their designation
contract
1. Nominate: the law gives the contract a
special designation or particular name
C. Consummation or death: the fulfillment or
e.g. deposit 123
performance of the terms agreed upon
2. Innominate: the contract has no special
CONTRACTS
name
Article 1305, Civil Code. INNOMINATE IV. Charactertics of Contracts (MARCO)

CONTRACTS shall be regulated by the stipulations
of the parties, by the general provisions of Titles I A. MUTUALITY
and II of [the Civil Code], by the rules governing the The contract must bind both contracting parties;
most analogous nominate contracts, and by the
its validity or compliance cannot be left to the will
customs of the place.
of one of them (Art.1308).
Classes of Innominate Contracts
Taylor v. Uy Teng Piao, 1922: [BUT] a contract may
1. Do ut des: I give so that you may give expressly confer upon one party the right to cancel
2. Do ut facias: I give so that you may do the contract because the exercise of that right is a
3. Facio ut facias: I do so that you may do fulfillment of the provisions of the contract itself
4. Facio ut des: I do so that you may give
 The release must be binding on both parties.
 The determination of the performance may
II. Elements of Contracts rd
be left to a 3 person, whose decision shall
NOT be binding if:
A. Essential: Those without which the contract  It is evidently inequitable (the courts will
would not exist (consent, object, causa). decide)
 The decision had not been made known
B. Natural: Those which are derived from the to both parties (Art.1309)
nature of the contract and ordinarily
accompany the same-they are presumed to B. AUTONOMY
exist unless the contrary is stipulated e.g. The contracting parties may establish such
warranty in sales stipulations, clauses, terms and conditions as
they may deem convenient, provided they are
C. Accidental: Those which exist only if not contrary to law, morals, good customs,
stipulated public order, or public policy (Art. 1306).
Solemn Real Consensual

Common Consent, subject matter, causa C. RELATIVITY
Elements Contracts take effect only between parties, their
Special Formality Delivery None assigns and heirs UNLESS, obligations arising
Elements from the contract are not transmissible by their
Example Donationo Loan, Others (1) nature, (2) by stipulation or (3) by provision of
f personal pledge law. The heir is not liable beyond the value of
property the property he received from the decedent. (Art.
more than
1311)
P5K
Exception: Strangers may enforce the contract
in their favor in the ff. cases:
1. Stipulations Pour Autrui—
If a contract should contain some stipulation
in favor of a third person, he may demand its
fulfilment provided he communicated his

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acceptance to the obligor before its Requisites:

revocation. A mere incidental benefit or a. Existence of a valid contract
interest of a person is not sufficient. The b. Knowledge of the third person of the
contracting parties must have clearly and existence of the contract; and
deliberately conferred a favour upon a third c. Interference by third person without
person (Art.1311). legal justification or excuse
Requisites: D. CONSENSUALITY
a. There must be a stipulation in favor of a Contracts are perfected by mere consent and
third person from that moment, the parties are bound not only
b. The stipulation must be part, not the to the fulfillment of what has been expressly
whole of the contract stipulated but also to all consequences which, 124
c. The contracting parties must have according to their nature, may be in keeping with
CONTRACTS
clearly and deliberately conferred a good faith, usage and law, (Art.1315) EXCEPT
favor upon a third person, NOT a mere real contracts, such as deposit, pledge and
incidental benefit or interest. commodatum, are not perfected until the
d. The third person must have delivery of the object of the obligation.
communicated his acceptance to the (Tolentino)
obligor before its revocation
e. No relation of agency exists between E. OBLIGATORY FORCE
any of the parties and the third person
favored Art. 1159, Civil Code. Obligations arising from
contracts have the force of law between the
Florentino v. Encarnacion, 1977: contracting parties and should be complied with in
a. Contracts to perform personal acts good faith.
which cannot be as well performed by
others are discharged by the death of Art. 1308, Civil Code. The contract must bind both
contracting parties; its validity or compliance cannot
the promissor. Conversely, where the
be left to the will of one of them.
service or act is of such a character that
it may as well be performed by another, Art. 1315, Civil Code. Contracts are perfected by
or where the contract, by its terms, mere consent, and from that moment the parties are
shows that performance by others bound not only to the fulfillment of what has been
was contemplated, death does not expressly stipulated but also to all the consequences
terminate the contract or excuse which, according to their nature, may be in keeping
nonperformance. with good faith, usage and law.
b. In this case the stipulation is a
stipulation pour atrui because the true Art. 1356, Civil Code. Contracts shall be obligatory,
intent of the parties is to confer a direct in whatever form they may have been entered into,
and material benefit upon a third party. provided all the essential requisites for their validity
are present. However, when the law requires that a
contract be in some form in order that it may be valid
Accion Directa: Where the statute
or enforceable, or that a contract be proved in a
authorizes the creditor to sue on his certain way, that requirement is absolute and
debtor’s contract, e.g. lessor v. sub- indispensable. In such cases, the right of the parties
lessee (Art. 1651,1652) (J.B.L. Reyes) stated in the following article cannot be exercised.
2. Third Person In Possession—

When the third person comes into
possession of the object of a contract
creating real rights (Art 1312)
3. Fraud—
Where the contract is entered into in order to
defraud a person (Art. 1313)
4. Tortuous Interference—
Where the third person induces a
contracting party to violate his contract
(Art.1314).

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CIVIL LAW REVIEWER Chapter II. ESSENTIAL REQUISITES
OFFER TERMINATES upon:

Chapter II. Essential Requisites a. Rejection by the offeree
b. Incapacity (death, civil interdiction,
I. CONSENT insanity, or insolvency) of the offeror or
II. OBJECT
offeree before acceptance is conveyed
III. CAUSE
c. Counter-offer
d. Lapse of the time stated in the offer
without acceptance being conveyed
I. Consent e. Revocation of the offer before learning
of acceptance
Conformity of the parties to the terms of the f. Supervening illegality before acceptance
contract; the acceptance by one of the offer (J.B.L. Reyes) 125
made by the other. (Manresa)
2. Acceptance
CONTRACTS
Requisites: Requisites:
1. It must be manifested by the concurrence of a. Unqualified and Unconditional, i.e. it
the offer and acceptance (Arts. 1319-1326) must conform with all the terms of the
2. The contracting parties must possess the offer, otherwise it is a counter-offer (Art.
necessary legal capacity (Arts. 1327-1329) 1319)
3. It must be intelligent, free, spontaneous, and b. Communicated to the offeror and
real (not vitiated) (Arts. 1330-1346) learned by him (Arts. 1319, 1322). If
made through an agent, the offer is
A. Concurrence accepted from the time the acceptance
1. Offer: a unilateral proposition which one is communicated to such agent.
party makes to the other for the celebration c. Express/Implied, but is not presumed
of the contract. (Tolentino)
OPTION CONTRACT: A preparatory
Requisites: contract in which one party grants to the
a. Definite other, for a fixed period, the option to decide
b. Intentional whether or not to enter into a principal
c. Complete contract. (Art. 1324)
Invitations to make offers With consideration Without consideration

(advertisements) Offeror cannot Offeror may withdraw by
 Business advertisements of things for unilaterally withdraw his communicating withdrawal
sale, are NOT definite offers, just offer to the offeree before
acceptance
invitations to make an offer, UNLESS
the contrary appears (Art. 1325)
 Advertisements for bidders are
B. Capacity
invitations to make proposals, advertiser
1. Incapacitated to Give Consent
is NOT bound to accept lowest or
a. Minors, UNLESS, the minor’s consent
highest bid, UNLESS contrary appears;
is operative in contracts:
the bidder is the offeror (Art. 1326).
 Statements of intention: no contract  For necessaries (Art.1427)
results even if accepted  Where the minor actively
misrepresents his age (estoppel)
Rosenstock v. Burke, 1924:
FACTS: Elser, in a letter, informed Burke that he was  Mercado v. Espiritu, 1917:
‘in a position and is willing to entertain’ the purchase Minors held in estoppel through
of the yacht under some terms. active misrepresentation
HELD: The word “entertain” applied to an act does not  Bambalan v. Maramba, 1928:
mean the resolution to perform said act, but simply a There is no estoppel if the minority
position to deliberate for deciding to perform or not to was known.
perform said act. It was merely a position to deliberate b. Insane or demented persons,
whether or not he would purchase the yacht and
UNLESS, they contract during a lucid
invitation to a proposal being made to him, which
might be accepted by him or not.
interval
c. Deaf-mutes who do not know how to
read and write.

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2. Disqualified to Contract (Art. 1329): 2. Intimidation

a. Those under Civil interdiction for When one of the contracting parties is
transactions inter vivos (RPC Art. 34) compelled by a reasonable and well-
b. Undischarged insolvents (Insolvency grounded fear of an imminent and grave evil
Law, Sec.24) upon his person or property, or upon the
c. Husband and wife: cannot donate (Art. person or property of his spouse,
123 FC) to each other, nor sell if the descendants or ascendants, to give his
marriage is under ACP (Art.1490) consent (Art. 1335).
d. The ff. cannot purchase (Art. 1491):
 The guardian: his ward’s property Martinez v. HSBC, 1910: The conveyance of several
 The agent: the principal’s property properties by to her husband’s creditors, though
126
 Executors and administrators: reluctant is still consent. She assented to the
requirements of the defendants, the civil and criminal
CONTRACTS
property under administration
actions against them would be dropped. A contract is
 Public officers-state property under
valid even though one of the parties entered into it
their administration against his wishes and desires, or even against his
 Justices, judges, prosecutors, clerks better judgment. Contracts are also valid even though
of court, lawyers-property attached they are entered into by one of the parties without
in litigation. hope of advantage or profit.
e. Members of Ethnic Minorities: their
contracts (excluding sale of personal 3. Violence
property or personal service contracts) Irresistible force used to extort consent
must be approved by the Governor or (J.B.L. Reyes)
his representative. (Public Land Act)
4. Undue Influence
Incapacity to Give Disqualification to When a person takes improper advantage of
Consent (Art. 1327) Contract (Art.1329) his power over the will of another, depriving
Restrains the exercise of Restrains the very right the latter of a reasonable freedom of choice
the right to contract itself (Art. 1337).
Based on subjective Based on public policy
circumstances of certain and morality
persons Circumstances:
a. Relationship of the parties (family,
Voidable Void spiritual, confidential etc.)
b. That the person unduly influenced was
suffering from infirmity (mental
C. Vices of Consent (Art. 1330, CC) (MIVUF) weakness, ignorance etc.) (Art.1337)
1. Mistake
Inadvertent and excusable disregard of a 5. Fraud
circumstance material to the contract. (J.B.L. When through insidious words or
Reyes) machinations of one of the contracting
 In order that mistake may invalidate parties, the other is induced to enter into a
consent, it should refer to the contract which, without them, he would not
substance of the thing which is the have agreed to (Art. 1338).
object of the contract, or to those
conditions which have principally moved Art. 1339, Civil Code. Failure to disclose facts, when
one or both parties to enter into the there is a duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.
contract (Art.1331)
Art. 1340, Civil Code. The usual exaggerations in
Mistake of Fact Mistake of Law Mutual Mistake
trade, when the other party had an opportunity to
When one or When one or  Must be as know the facts, are not in themselves fraudulent.
both contracting both parties to the legal
parties believe arrive at an effect of an
Art. 1341, Civil Code. A mere expression of an
that a fact exists erroneous agreement
opinion does not signify fraud, unless made by an
when in reality it conclusion on  Must be
expert and the other party has relied on the former's
does not, or vice the mutual
special knowledge.
versa interpretation of  Real purpose
a question of of the parties
law or the legal must have Art. 1342, Civil Code. Misrepresentation by a third
effects been person does not vitiate consent, unless, such
frustrated misrepresentation has created substantial mistake

lOMoARcPSD|3291925
and the same is mutual. Aleatory contract: where one of the contracting
parties assumes the risk that the thing will never
Art. 1343, Civil Code. Misrepresentation made in come into existence, e.g. insurance
good faith is not fraudulent but may constitute error.
III. Cause
SIMULATION OF CONTRACTS (Art. 1345-
1346): Declaration of a non-existent will made
deliberately for the purpose of producing the It is the impelling reason for which a party
appearance of a transaction that does not exist, assumes an obligation under a contract.
or which is different from the one which actually
arose. (J.B.L. Reyes) Requisites:
a. Existing
Absolute Relative b. Licit or Lawful 127
No real transaction is Real transaction is hidden c. True
CONTRACTS
intended
Fictitious contract Disguised contract Cause in:
Void Bound as to hidden
agreement, so long as it Onerous Renumeratory Pure
does not prejudice a third Contracts Contracts Beneficence
person and is not contrary As to each of The service or Mere
to law, morals, good the contracting benefit which is liberality of
customs, public order or parties is remunerated the
public policy understood to benefactor
be the
undertaking or
II. Object the promise of
the thing or
service by the
The thing right or service which is the subject other party
matter of the obligation arising from the contract.
In Villaroel v. Estrada (1940), where a moral
Requisites: obligation is based upon a previous civil obligation,
a. Lawful: Not contrary to law, morals, good which has already been barred by the statute of
customs, public order or public policy. limitations at the time the contract is entered into, it
b. Actual or possible constitutes a sufficient cause or consideration to
support a contract (Natural Obligation).
c. Transmissible: Within the commerce of man BUT,
d. Determinate or determinable In Fisher v. Robb (1939), if the moral obligation arises
wholly from ethical consideration, it cannot constitute
All things or services may be the object of a sufficient cause to support an onerous contract, as
contracts, EXCEPT: when the promise is made on the erroneous belief
 Things which are outside the commerce of that one was morally responsible for the failure of an
men enterprise (Moral Obligation).
 Intransmissible rights
 Future inheritance except in cases Cause Defined Effect
authorized by law Lack of Absence or total The contract
 Impossible things or services Cause lack of cause confers no right
and has no legal
 Objects which are indeterminable as to their
effect
kind, the genus should be expressed Illegality of Contrary to law, Null and Void
Cause morals, good
In order that a thing, right or service may be the customs, public
object of a contract, it should be in existence at policy and
the moment of the celebration of the contract, or public order
at least, it can exist subsequently or in the Falsity of Cause is stated Void if it should
future. cause but is untrue not be proved that
it was founded
A FUTURE THING may be the object of a upon another
cause which was
contract, such contract may be interpreted as a: true and lawful
 Conditional contract: where its efficacy Lesion or Cause is not Shall not invalidate
should depend upon the future existence of inadequacy proportionate to the contract
the thing of cause object except when

lOMoARcPSD|3291925
a)there is fraud,
mistake, undue
influence
b)when parties
intended a
donation
Liguez v. CA (1957): In making the donation in

question, Lopez was not moved exclusively by the
desire to benefit Liguez, but also to secure her
cohabiting with him, so that he could gratify his sexual
impulses. The donation was an onerous transaction
and clearly predicated upon an illicit causa.
128
CONTRACTS

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CIVIL LAW REVIEWER Chapter III. FORMS OF CONTRACTS
d. The cession of actions or rights

Chapter III. Forms of Contracts proceeding from an act appearing in
a public document.
I. RULES e. All other contracts where the
II. KINDS OF FORMALITIES amount involved exceeds five
hundred pesos must appear in
writing, even a private one. But
I. Rules sales of goods, chattels or things in
action are governed by Articles,
1403, No. 2 and 1405.
Contracts shall be obligatory, in whatever form
they may have been entered into, provided all
2. Donation of immovable properties (Art. 129
the essential requisites for their validity are
749)
present. (Art. 1356)
CONTRACTS
Spiritual System of the Spanish Code: The law looks
3. Partnership where immovable property
more on the spirit rather than the form of contracts. or real rights are contributed to the
common fund (Arts.1771 and 1773)
Exceptions:
 When the law requires that a contract be in BF Corporation v. CA, 1998: A contract may be
encompassed in several instruments even though
some form for validity (Arts. 1357-1358) every instrument is not signed by the parties since it is
 When the law requires that contract be in sufficient if the unsigned instruments are clearly
some form to be enforceable (Statute of identified or referred to and made part of the signed
Frauds) instruments.
II. Kinds of Formalities
A. Contracts Which Must Appear in Writing:

1. Donation of personal property whose
value exceeds five hundred pesos (Art
748)
2. Sale of a piece of land or any interest
therein through an agent (Art 1874)
3. Antichresis (Art 2134)
4. Agreements regarding payment of
interests in contracts of loans (Art. 2314)
B. Contracts Which Must Appear in a Public

Document
1. Art. 1358:
a. Acts and contracts which have for
their object the creation,
transmission, modification or
extinguishment of real rights over
immovable property; sales of real
property or of an interest therein a
governed by Articles 1403, No. 2,
and 1405;
b. The cession, repudiation or
renunciation of hereditary rights or
of those of the conjugal partnership
of gains;
c. The power to administer property, or
any other power which has for its
object an act appearing or which
should appear in a public document,
or should prejudice a third person;

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CIVIL LAW REVIEWER Chapter IV. REFORMATION OF CONTRACTS

Chapter V. INTERPRETATION OF CONTRACTS
Chapter IV. Reformation of Contracts Chapter V. Interpretation of Contracts
Reformation of Contracts (Art 1359-1369) RULES ON DOUBTS (Art. 1378)

REFORMATION: is that remedy in equity by
means of which a written instrument is made or Principal Gratuitous Onerous
construed so as to express or conform to the Objects Contracts Contracts
real intention of the parties when some error or Doubts where Absolutely Absolutely
mistake has been committed. (J.B.L. Reyes) it cannot be impossible to impossible to
known what settle doubts by settle doubts by
Requisites (Art 1359): may have the rules and the rules and
1. There must be a meeting of the minds of the been the only refer to only refer to
contracting parties; intention or incidental incidental 130
will of the circumstances circumstances
2. Their true intention is not expressed in the
CONTRACTS
parties, the the least the doubt shall
instrument; contract shall transmission be settled in
3. Such failure to express their true intention is be null and of rights and favor of the
due to mistake, fraud, inequitable conduct, void. interests shall greatest
or accident; and prevail. reciprocity of
4. There is clear and convincing proof of interests.
mistake, fraud, inequitable conduct, or
accident.
If the mistake, fraud, inequitable conduct, or accident

has prevented the meeting of the minds of the parties,
the proper remedy is not reformation but annulment of
the contract. (See also Art 1390)
Who May Ask for Reformation (Art. 1368):

1. Either party or his successors in interest, if
the mistake was mutual; otherwise,
2. Upon petition of the injured party, or his
heirs and assigns.
NO REFORMATION in (Art. 1366):

1. Simple donations inter vivos wherein no
condition is imposed;
2. Wills;
3. When the real agreement is void.
Implied Ratification (Art. 1367): The action to

enforce the instrument bars subsequent action
to reform.

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CIVIL LAW REVIEWER Chapter VI. DEFECTIVE CONTRACTS
Chapter VI. Defective Contracts
I. RESCISSIBLE
II. VOIDABLE
III. UNENFORCEABLE
IV. VOID OR INEXISTENT
What are the 131

Contracts are
rescissible Contracts in Contracts refer
Contracts of entered into to
CONTRACTS
contracts? (Art representation to things in
guardians defraud existing
1381; see also Art of absentees litigation
creditors
1382)
What makes it When the acts of When the acts When the creditors If entered into by
defective? administration of administration cannot in any other the defendant
cause LESION or cause LESION manner collect the without the
damage to the or damage to claims due them knowledge &
WARD they the ABSENTEE approval of the
represent by more they represent litigants or
than 25% of the by more than competent judicial
value of the thing 25% of the value authority
of the thin
Effect on the Valid until rescinded (Art 1380)
Contract
How to rescind? Direct Action (different from action for Accion Pauliana for Contracts in Fraud of
rescission under Art 1191) Creditors
NO rescission if: NO rescission if:

1. Injured party has other legal 1. Injured party has other legal means to
means to obtain reparation (Art obtain reparation (Art 1383)
1383). 2. Plaintiff cannot return his part of the
2. Plaintiff cannot return his part of obligation (Art 1385 par 1)
the obligation (Art 1385 par 1) 3. Object of the contract is in the hands of
3. Object of the contract is in the third person, onerously acquired by
hands of third person, onerously him in good faith (Art 1385 par 2)
acquired by him in good faith (Art
1385 par 2)
4. If the court approves the
contracts under Art 1381 par 1
and 2 (Art 1386)
Who can rescind? In general, by By absentee By creditor(s) By party litigant
injured party
By ward, or by
guardian ad litem
of ward during
incapacity of ward
in an action
against the
original guardian
When to rescind Within four years Within 4 years Within 4 years from Within 4 years
(Art 1389) from [re-] gaining from knowledge knowledge of from knowledge of
capacity of domicile of fraudulent contract fraudulent contract
absentee

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What makes it
Incapacity of one party to the Consent vitiated by mistake, violence,
defective? (Art
contract intimidation, undue influence or fraud
1390)
Effect on the Valid until annulled by competent court (Art 1390 last par)
Contract
How to annul? 1. Directly, by an action for annulment
2. Indirectly, by counterclaim asking for positive action of the court to set aside the
contract
Annulment cannot proceed when: 132

1. the object of the contract is lost through fraud or deceit of the person with right to
CONTRACTS
institute proceedings (art 1401 par 1);
2. the right of action is based upon the incapacity of any one of the contracting
parties and the thing is lost through the fault or fraud of the plaintiff (Art 1401 par
2)
Who can/cannot 1. Parties who are obliged principally or subsidiarily
annul? 2. Persons who are capable cannot allege the incapacity of those with whom they
(Art 1397) contracted
3. Persons who exerted intimidation, violence, or undue intimidation, or employed
fraud, or caused mistake, cannot base their action upon these flaws of the
contract
When? (Art 1391) Within four years after guardianship of Within four years
minors or incapacitated persons 1. After intimidation, violence or undue
ceases influence ceases
2. From the time of discovery of mistake
or fraud
Effect of 1. Mutual restitution of the things delivered, along with fruits and price paid with
Annulment interest (Art 1398)
2. Damages to be paid by party who caused defect of the contract, by virtue of
Article 20 and 21 of the Civil Code
How to Cure 1. Express (written or oral manifestation) or tacit ratification (acts or conduct) by
Defect? (Arts injured party, or guardian of incapacitated person.
1392 - 1396) - Ratification does not require the conformity of the contracting party
who has no right to bring the action for annulment (Art 1395)

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III. Unenforceable Contracts (Arts. 1403-1408)
What are the Contracts covered by

unenforceable Statute of Frauds which
Contract entered into Contract where both
contracts? (Art did not comply with the
without authority of, or parties are incapable
1403) written memorandum
in excess of authority of giving consent to
requirement
given by owner contract
(See Art 1403 par 2)
Effect on the No effect unless ratified. Cannot be enforced by a proper action in court.
Contract
How to assail? Not by direct action. Not by direct action. Not by direct action. 133
1. As a defense, by 1. As a defense, by motion 1. As a defense, by
CONTRACTS
motion to dismiss the to dismiss the complaint motion to dismiss the
complaint on the on the ground that the complaint on the
ground that the contract contract is unenforceable; ground that the
is unenforceable 2. Objection to the contract is
presentation of oral unenforceable
evidence to prove an oral
contract (See Art 1405)
Who can assail? By person whose name By party against whom the By party against whom
*an the contract was entered contract is being enforced; the contract is being
unenforceable into; By owner of property. or his privies. enforced; or his privies;
contract cannot or parents or guardians
be assailed by persons, as it is a
third persons (Art personal defense
1408)
When? When a party asks the court to enforce the contract
How to Cure 1. Ratification by person 1. Ratification by party 1. By ratification of

Defect? (Art whose name the against whom the party against whom
1403) contract was entered the contract is being
into
contract is being enforced; or his
enforced privies; or parents or
2. By failure to object to the guardians
presentation of oral  The ratification by
evidence to prove an oral one party converts
contract or by the the contract into a
acceptance of benefits voidable contract (Art
under the contract (Art 1407)
1405)

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IV. Void or Inexistent Contracts (Arts. 1409-1422)
What makes it Contract’s Cause, Object Inexistent contracts, or Contracts expressly

defective? of Purpose is contrary to contracts whose essential prohibited or declared
morals, good customs, elements are absent void by law (Art 1409
public order or public (Art Art 1409 par 2, 3, 4,5) par 7); contracts
policy which are direct
(Art 1409 par 1) results of a previous
illegal contract (art
1422)
Contracts which 1.Those whose Cause, Object of Purpose is contrary to morals, good customs,
are inconsistent public order or public policy 134
and void from the 2.Those which are absolutely simulated or fictitious
CONTRACTS
beginning (Art 3.Those whose cause or object did not exist at the time of the transaction
1409) 4.Those whose object is outside the commerce of men
5.Those which contemplate an impossible service
6.Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained
7.Those expressly prohibited or declared void by law
How to assail? 1. File for action for declaration of inexistence or nullity of contract
2.As a defense during trial (Art 1409 last par). Such defense not available to third
persons not directly affected by contract (Art 1421)
3.In pari delicto applies when cause or object of contract constitutes a criminal
offense (Art 1411)
Who can assail? 1. Innocent party Art 1. Any of the parties 1. Any person whose
1411 par 2; Art 1412 2. Any person whose interests are
par2) interests are directly directly affected by
2. Less-guilty party, upon affected by the contract the contract Art
court discretion (Art 1421) (1421)
3. Incapacitated person 2. By party for whose
who is a party to an protection the
illegal contract, upon prohibition of the
court discretion (Art law is designed (Art
1415) 1416)
4. Any person whose
interests are directly
affected by the
contract (Art 1421)
When? The action or defense does not prescribe (Art 1410)
- end of Contracts -

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PROPERTY
Table of Contents
Chapter I. Definition and Classification of Chapter VII. Usufruct ................................... 181

Property.........................................................137 I. Concept............................................. 181
I. Definition ...........................................137 II. Characteristics .................................. 181
II. Classification .....................................137 III. Usufruct Distiguished from Lease and
Chapter II. Ownership ..................................144 Servitude.................................................... 181
I. Definition ...........................................144 IV. Classes of Usufruct........................... 182
III. Specific Rights under the Civil Code.144 V. Rights of Usufructuary ...................... 184
IV. Limitations on Real Right of Ownership VI. Rights of the Naked Owner............... 186
146 VII. Obligations of the Usufructuary .... 187
Chapter III. Accession..................................147 VIII. Special Cases of Usufruct ............ 190 136
I. Definition ...........................................147 IX. Extinguishment of Usufruct............... 192
PROPERTY
II. General Principles of Accession .......147 X. Conditions Not Affecting Usufruct..... 194
III. Kinds of Accession............................147 Chapter VIII. Easement ................................ 196
IV. Principles Governing Each Kind of I. Concept............................................. 196
Accession...................................................147 II. Essential Features ............................ 196
Chapter IV. Quieting of Title........................152 III. Classification of Servitudes............... 197
I. In General .........................................152 IV. General Rules Relating to Servitudes
II. Purpose .............................................152 198
III. Nature: Quasi in Rem........................152 V. Modes of Acquiring Easements ........ 198
IV. Requisites .........................................152 VI. Rights and Obligations of Owners of
V. Prescription of Action ........................153 Dominant and Servient Estates ................. 199
Chapter V. Co-Ownership............................154 VII. Modes of Extinguishment of
I. Definition ...........................................154 Easements................................................. 200
II. Characteristics ..................................154 VIII. Legal Easements .......................... 202
III. Difference between Co-ownership and Chapter IX. Nuisance ................................... 212
Joint Tenancy.............................................155 I. Definition ........................................... 212
IV. Difference between Co-ownership and II. Classes ............................................. 212
Partnership.................................................155 III. Liability in Case of Nuisance............. 213
V. Sources of Co-Ownership .................155 IV. Regulation of Nuisances ................... 214
VI. Rights of Each Co-owner over the Thing Chapter X. Modes of Acquiring Ownership
or Property Owned in Common .................157 ....................................................................... 217
VII. Implication of Co-owner’s Right over I. Mode v. Title ..................................... 217
His Ideal Share ..........................................161 II. Mode ................................................. 217
VIII. Rules on Co-Ownership Not Chapter XI. Donation ................................... 222
Applicable to CPG or ACP.........................161 I. Nature ............................................... 222
IX. Special Rules on Ownership of Different II. Requisites ......................................... 222
Stories of a House as Differentiated from III. Kinds ................................................. 222
Provisions of the Condominium Act...........162 IV. Who May Give or Receive Donations
X. Extinguishment of Co-Ownership .....166 223
Chapter VI. Possession ...............................168 V. Who May Not Give or Receive
I. Definition ...........................................168 Donations................................................... 224
II. Degrees of Possession .....................169 VI. Acceptance ....................................... 225
III. Classes of Possession ......................169 VII. Form ............................................. 225
IV. Cases of Possession.........................169 VIII. What May Be Donated ................. 225
V. What Things May be Possessed ......170 IX. Effect ................................................. 226
VI. What May Not Be Possessed by Private X. Revocation and Reduction................ 227
Persons......................................................171 Chapter XII. Lease........................................ 232
VII. Acquisition of Possession .............171 I. General Characteristics .................... 232
VIII. Effects of Possession ...................173 II. Kinds ................................................. 232
IX. Effects of Possession in the Concept of III. Lease of Things ................................ 232
Owner ........................................................177
X. Presumption in Favor of the
Possessor—for Acquisitive Prescription ....178
XI. Possesion May Be Lost By ...............179

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CIVIL LAW REVIEWER Chapter I. DEFINITION and CLASSIFICATION of PROPERTY
PROPERTY TEAM
Chapter I. Definition and Classification of
PROPERTY
Property
Prof. Solomon Lumba
Faculty Editor
Michelle Go I. DEFINITION
Lead Writer
II. CLASSIFICATION
Erika Esperas A. UNDER THE CIVIL CODE
Katrina Michelle Mancao
Celie Mari Santos
B. BY OWNERSHIP
Writers C. OTHER CLASSIFICATIONS
CIVIL LAW
I. Definition
Kristine Bongcaron
Patricia Tobias
Subject Editors PROPERTY: Mass of things or objects
characterized by
ACADEMICS COMMITTEE 1. Utility – capacity to satisfy human wants 137
Kristine Bongcaron 2. Individualityand substantivity – separate and
PROPERTY
Michelle Dy autonomous existence
Patrich Leccio 3. Susceptibility of being appropriated – those
Editors-in-Chief which cannot be appropriated because of
PRINTING & DISTRIBUTION their distance, depth or immensity cannot be
considered as things (i.e. stars, ocean)
Kae Guerrero
DESIGN & LAYOUT II. Classification

Pat Hernandez
Viktor Fontanilla A. UNDER THE CIVIL CODE
Rusell Aragones
Romualdo Menzon Jr. Article 414, Civil Code. All things which are or may
Rania Joya be the object of appropriation are considered either:
1. Immovable or real property; or
LECTURES COMMITTEE 2. Movable or personal property.
Michelle Arias
Camille Maranan
IMMOVABLES OR REAL PROPERTY
Angela Sandalo
Heads Article 415—
The following are immovable property:
Katz Manzano Mary Rose Beley
Sam Nuñez Krizel Malabanan 1. Land, buildings, roads and constructions of
Arianne Cerezo Marcrese Banaag all kinds adhered to the soil;
Volunteers 2. Trees, plants, and growing fruits, while they
are attached to the land or form an integral
MOCK BAR COMMITTEE part of an immovable;
Lilibeth Perez 3. Everything attached to an immovable in a
fixed manner, in such a way that it cannot be
BAR CANDIDATES WELFARE separated therefrom without breaking the
Dahlia Salamat material or deterioration of the object;
4. Statues, reliefs, paintings or other objects for
LOGISTICS use or ornamentation, placed in buildings or
Charisse Mendoza on lands by the owner of the immovable in
such a manner that it reveals the intention to
SECRETARIAT COMMITTEE attach them permanently to the tenements;
Jill Hernandez 5. Machinery, receptacles, instruments or
Head implements intended by the owner of the
tenement for an industry or works which
Mary Mendoza Joie Bajo may be carried on in a building or on a piece
Members of land, and which tend directly to meet the
needs of the said industry or works;
6. Animal houses, pigeon-houses, beehives,
fish ponds or breeding places of similar
nature, in case their owner has placed them
or preserves them with the intention to have

lOMoARcPSD|3291925
them permanently attached to the land, and b. However, by special treatment of Act
forming a permanent part of it; the animals 1508 (Sec. 7, Chattel Mortgage Law),
in these places are included; growing crops may be subject of a
7. Fertilizer actually used on a piece of land; Chattel Mortgage.
8. Mines, quarries, and slag dumps, while the c. For the purpose of attachment: growing
matter thereof forms part of the bed, and crops are to be attached in the same
waters either running or stagnant; manner as realty. (Rule 59, Sec. 7)
9. Docks and structures which, though floating,
are intended by their nature and object to 2. Par. 3: Things incorporated
remain at a fixed place on a river, lake, or a. Res vinta in Roman Law
coast; b. “Attachment in a fixed manner”:
10. Contracts for public works, and servitudes breakage or injury in case of separation
and other real rights over immovable will be substantial e.g. wells, sewers,
property. aqueducts and railways
 Whether attached by the owner
Immovables by Nature— himself or some other person 138
Those which cannot be moved from place to 3. Par. 7: Fertilizer
PROPERTY
place; their intrinsic quality have no utility except Actually used” means it has been spread
in a fixed place (Par. 1 & 8) over the land.
1. Par. 1: Lands, building, roads and
constructions
a. Buildings Immovables by Destination—
 To be considered a building, their Those which are essentially movables but by the
adherence to the land must be purpose for which they have been placed in an
permanent and substantial. immovable, partake of the nature of an
 Buildings have been considered as immovable because of the added utility derived
immovables, despite: therefrom (Par. 4, 5, 6 & 9)
 Treatment by the parties e.g. 1. Par. 4: Fixtures and ornaments
they constitute a separate Requisites:
mortgage on the building and a. Placed by the owner or by the tenant as
the land (Punzalan v. agent of the owner;
Lacsamana) b. With intention of attaching them
 Separate Ownership i.e. a permanently even if adherence will not
building on rented land is still involve breakage or injury.
considered an immovable.
(Tolentino) Where the improvement or ornaments
2. Par. 8: Mineral deposits and waters placed by the lessee are not to pass to the
a. Mineral Deposits owner at the expiration of the lease, they
 Minerals still deposited in the soil remain movables for chattel mortgage
 When minerals have been purposes. (Davao Sawmill v. Castillo)
extracted, they become chattel.
b. Slag Dump: dirt and soil taken from a 2. Par. 3 v. Par. 4
mine and piled upon the surface of the Par. 3 Par. 4
ground. Inside the dump can be found Cannot be separated from Can be separated from
the minerals. immovable without immovable without
c. Waters: those still attached to or running breaking or deterioration breaking or deterioration
thru the soil or the ground. Must be placed by the
Need not be placed by the
owner, or by his agent,
owner
expressed or implied
Immovables by Incorporation— Real property by
Those which are essentially movables but are Real property by
incorporation and
attached to an immovable in such a way as to be incorporation
destination
an integral part thereof (Par. 2, 3, 4, 6 & 7)
1. Par. 2: Trees and plants 3. Par. 5: Machinery and equipment
a. Trees and plants: only immovables a. Immovable characteristic depends upon
when they are attached to the land or their being destined for use in the
form an integral part of an immovable industry or work in the tenement;
 When they have been cut or  The moment they are separated,
uprooted, they become movables. (from the immovable or from the
industry or work in which they are

lOMoARcPSD|3291925
utilized) they recover their usufruct and lease of real property for a
condition as movables. period of 1 year and registered
 If it is still needed for the industry
but separated from the tenement Effect of Enumeration: Art. 415 not
temporarily, the property continues absolute—
to be immovable. 1. Parties may by agreement treat as movable
b. Requisites for Immovability in Par. 5: that which is enumerated by law as
 Placed by the owner or the tenant immovable, but effective only as to them.
as agent of the owner;
 Adapted to the needs of the industry The view that parties to a deed of chattel
or work carried on mortgage may agree to consider a house as
 EXCEPT: When estoppel operates personal property for the purposes of said
contract, "is good only insofar as the
Parties to a contract may by agreement contracting parties are concerned. It is
treat as personal property that which by based, partly, upon the principle of estoppel"
nature would be real property, as long (Evangelista vs. Alto Surety) 139
as no interest of third parties would be
PROPERTY
prejudiced. That characterization is 2. For purposes of taxation, improvements on
effective as between the parties. land are commonly taxed as realty, even
(Makati Leasing v. Wearever) though for some purposes, they might be
considered as personalty.
c. EFFECT of Attachment
 Machinery become part of the It is a familiar phenomenon to see things
immovable. classified as real property for purposes of
 The installation of machinery and taxation, which on general principle, might
equipment in a mortgaged sugar be considered personal property. (Manila
central for the purpose of carrying Electric v. Central Bank)
out the industrial functions of the
latter and increasing production,
constitutes a permanent MOVABLES OR PERSONAL PROPERTY
improvement on said sugar central
and subjects said machinery and Article 416, Civil Code. The following things are
equipment to the mortgage deemed to be personal property:
constituted thereon. (Berkenkotter 1. Those movables susceptible of
v. Cu Unjieng) appropriation which are not included in the
preceding article;
2. Real property which by any special
4. Par. 6: Animal houses and animals therein provision of law is considered as personal
a. Requisites: property;
 Placed by the owner or the tenant 3. Forces of nature which are brought under
as agent of the owner, with the control by science; and
intention of permanent attachment; 4. In general, all things which can be
 Forming a permanent part of the transported from place to place without
immovable. impairment of the real property to which
they are fixed.
5. Par. 9: Docks and fixed floating structures
a. A floating house tied to a shore or bank Article 417, Civil Code. The following are also
considered as personal property:
post and used as a residence is
1. Obligations and actions which have for their
considered real property, considering object movables or demandable sums; and
that the waters on which it floats are 2. Shares of stock of agricultural, commercial
considered immovables. and industrial entities, although they may
b. But if the floating house makes it a point have real estate.
to journey from place to place, it
assumes the category of a vessel, and
is considered immovable property Tests to Determine Movable Character—
1. By exclusion – everything NOT included in
Immovables by Analogy (Par. 10)— Article 415
Contracts for public works, servitudes, other
real rights over immovable property e.g. Parties cannot by agreement treat as
immovable that which is legally movable.

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If the value of the gain cannot be

2. By description – an object is immovable if it ascertained, a fine of from 200 to 500
possesses: pesos shall be imposed.
a. Ability to change location – whether it
can be carried from place to place; 2. Robbery and theft can be committed only
b. Without substantial injury to the against personal property.
immovable to which it is attached. Art. 293. Who are guilty of robbery.
Any person who, with intent to gain,
The steel towers built by MERALCO are not shall take any personal property
buildings or constructions since they are belonging to another, by means of
removable and merely attached to a square violence or intimidation of any person, or
metal frame by means of bolts, which when using force upon anything shall be guilty
unscrewed could easily be dismantled and of robbery.
moved from place to place, without breaking
the material or causing deterioration to the Art. 308. Who are liable for theft.
object they are attached. (Board of Theft is committed by any person who, 140
Assessment Appeals v. Meralco) with intent to gain but without violence
PROPERTY
against or intimidation of persons nor
3. By special provision of law – real property is force upon things, shall take personal
considered as personal property property of another without the latter's
a. Growing crops under the Chattel consent.
Mortgage Law
b. Machinery installed by a lessee not Form of Contracts Involving Movables and
acting as agent of the owner (Davao Immovables—
Sawmill v. Castillo) 1. Subject matter of specific contracts: only
c. Intellectual property – considered real property can be the subject of real
personal property; it consists in the mortgage (Art. 2124) and antichresis (Art
pecuniary benefit which the owner can 2132); only personal property can be the
get by the reproduction or manufacture subject of voluntary deposit (Art. 1966),
of his work. pledge (Art. 2094) and chattel mortgage (Act
1508)
4. By forces of nature – e.g. electricity, gas, 2. Donations of real property are required to
heat, oxygen be in a public instrument (Art. 749) but a
donation of a movable mat be made orally or
in writing (Art. 748)
IMPORTANCE AND SIGNIFICANCE OF
CLASSIFICATION UNDER THE CIVIL CODE Acquisitive Prescription—
1. Real Property can be acquired by
Criminal Law— prescription in 30 years (bad faith) and 10
1. Usurpation of property can take place only years (good faith).
with respect to real property. 2. Movables can be acquired by prescription in
8 years (bad faith) and 4 years (good faith).
Art. 312. Occupation of real property
or usurpation of real rights in Venue—
property. 1. Rule 4, Sec. 1: Venue of real actions.
Actions affecting title to or possession of
Any person who, by means of violence real property, or interest therein, shall be
against or intimidation of persons, shall commenced and tried in the proper court
take possession of any real property or which has jurisdiction over the area
shall usurp any real rights in property wherein the real property involved, or a
belonging to another, in addition to the portion thereof, is situated. Forcible
penalty incurred for the acts of violence entry and detainer actions shall be
executed by him, shall be punished by a commenced and tried in the municipal
fine from 50 to 100 per centum of the trial court of the municipality or city
gain which he shall have obtained, but wherein the real property involved, or a
not less than 75 pesos. portion thereof, is situated.

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2. Rule 4, Sec. 2: Venue of personal actions. Classifications—

All other actions may be commenced 1. Administered by the State
and tried where the plaintiff or any of the a. For public use—may be used by
principal plaintiffs resides, or where the everybody, even by strangers or aliens,
defendant or any of the principal in accordance with its nature but nobody
defendants resides, or in the case of a can exercise over it the rights of a
non-resident defendant where he may private owner.
be found, at the election of the plaintiff. b. For public service—may be used only by
authorized persons but exists for the
Governing Law— benefit of all e.g. fortresses, unleased
1. Immovables are governed by the law of the mines and civil buildings
country wherein they are located c. For development and national wealth—
2. Movables are governed by the personal includes natural resources such as
laws of the owner which in some cases is minerals, coal, oil and forest
the law of his nationality and in other cases,
the law of his domicile. 2. Administered by Municipal Corporations 141
PROPERTY
Action for Recovery of Possession— Article 424, Civil Code. Property for public use, in
1. Possession of real property may be the provinces, cities, and municipalities, consist of
recovered through accion reivindicatoria, the provincial roads, city streets, municipal streets,
accion publiciana, forcible entry and the squares, fountains, public waters, promenades,
and public works for public service paid for by said
unlawful detainer.
provinces, cities, or municipalities.
2. Possession of movable property may be
recovered through replevin.
Property of public dominion is outside the
commerce of man—
B. CLASSIFICATION BY OWNERSHIP
They cannot be the subject matter of private
contracts, cannot be acquired by
Article 419, Civil Code. Property is either of public
dominion or of private ownership. prescription and they are not subject to
attachment and execution nor burdened with
a voluntary easement.
PROPERTY OF PUBLIC DOMINION
Article 420, Civil Code. The following things are PRIVATE OWNERSHIP
property of public dominion: Can be exercised by the State in its private
1. Those intended for public use, such as capacity or by private persons
roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks, Patrimonal Property of the State—
shores, roadsteads, and others of similar Article 421, Civil Code. All other property of the
character; State, which is not of the character stated in the
2. Those which belong to the State, without preceding article, is patrimonial property.
being for public use, and are intended for 1. Owned by the State over which it has the
some public service or for the development same rights as private individuals in relation
of the national wealth.
to their own property
2. Subject to the administrative laws and
Public Dominion As defined by Art. 420, CC
regulations on the procedure of exercising
Public Domain Used in Article XII, Section 2, of such rights.
the 1987 Constitution 3. Examples: friar lands, escheated properties
Public Lands Public Land Act
and commercial buildings
4. Purpose of Patrimonial Property
Characteristics of Public Dominion— a. Enables the State to attain its economic
1. Not owned by the State and its subdivisions ends
but pertains to it as territorial sovereign, to b. Serves as a means for the State’s
hold in trust for the interest of the subsistence and preservation
community. c. Enables the State to fulfill its primary
2. Intended for public use, and not for use by mission
the State as a juridical person 5. Conversion of Property of Public
3. Cannot be the subject of appropriation either Dominion to Patrimonial Property—
by the State or by private persons

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Property of public dominion, when no individually or collectively (co-owned

longer intended for public use or for property)
public service, shall form part of the
patrimonial property of the State [Art. CONVERSION
422, Civil Code] Alienable Public Land converted to Private
6. Requires a Declaration by the Property through Prescription—
Government through its executive or Alienable public land held by a possessor –
legislative departments to the effect that it is personally/through predecessors-in-interest,
no longer needed for public use or service. openly, continuously and exclusively – for 30
years is CONVERTED to private property by
the mere lapse or completion of the period.
Patrimonial Property of Municipal The application for confirmation is mere
Corporations— formality, because land had already been
Article 424(2), Civil Code. All other property converted, giving rise to a registrable title.
possessed by any of them [the provinces, cities, and (Director of Lands v. IAC)
municipalities] is patrimonial and shall be governed 142
by this Code, without prejudice to the provisions of See New Law
PROPERTY
special laws.
Private Land converted to Property of Public
1. The province or municipality, as a juridical Dominion through abandonment and
entity, also possesses private property to reclamation—
answer for its economic necessities. Through the gradual encroachment or
2. Classification of Properties of provinces, erosion by the ebb and flow of the tide,
cities and municipalities (Salas v. private property may become public IF the
Jarencio) owner appears to have ABANDONED the
a. Properties acquired with their own land, and permitted it to be totally destroyed
funds in their private or corporate so as to become part of the shore. The land
capacity over which the political having disappeared on account of the
subdivision has ownership and control gradual erosion, and having remained
b. Properties of public dominion held in submerged until they were reclaimed by the
trust for the State’s inhabitants are government, they are public land.
subject to the control and supervision of (Government v. Cabangis)
the State
3. A municipal corporation must prove that
they acquired the land with their own C. OTHER CLASSIFICATIONS
corporate funds—
The presumption is that land comes from the By their physical existence—
State upon the creation of the municipality. 1. Corporeal
All lands in the possession of the All property the existence of which can be
municipality, EXCEPT for those acquired determined by the senses (res qui tangi
with its private funds, are deemed to be possunt)
property of public dominion, held in trust for 2. Incorporeal
the State for the benefit of its inhabitants. a. Things having abstract existence,
created by man and representing value.
Congress has paramount power to dispose b. Includes rights over incorporeal things,
of lands of public dominion in a municipality, credits, and real rights other than
the latter being a subdivision only for ownership over corporeal things.
purposes of local administration. (Salas v.
Jarencio) By their autonomy or dependence—
1. Principal
Private Property of Private Persons— Those to which other things are considered
Article 425, Civil Code. Property of private
dependent or subordinated, such as the land
ownership, besides the patrimonial property of the
State, provinces, cities, and municipalities, consists on which a house is built.
of all property belonging to private persons, either 2. Accessory
individually or collectively. Those which are dependent upon or
subordinated to the principal. They are
Refers to all property belonging to private destined to complete, enhance or ornament
persons, natural or juridical, either another property.

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By their subsistence after use— 2. Specific

Article 418, Civil Code. Movable property is either That which indicates the specie or its nature
consumable or nonconsumable. To the first class and the individual, such as “the white horse
belong those movables which cannot be used in a of X”.
manner appropriate to their nature without their
being consumed; to the second class belong all the
Existence in point of time—
others.
1. Present
Those which exist in actuality, either
1. Consumable
physical or legal, such as, the erected
a. Those whose use according to their
building.
nature destroys the substance of the
2. Future
thing or causes their loss to the owner.
Those which do not exist in actuality, but
(ex: food)
whose existence can reasonably be
b. Consumable goods cannot be the
expected with more or less probability, such
subject matter of a contract of
as ungathered fruits.
commodatum unless the purpose of 143
the contract is not the consumption of
PROPERTY
the object, as when it is merely for
exhibition.
2. Non-consumable— e.g. money in coin
Susceptibility to substitution—
1. Fungibles
Things which because of their nature or the
will of the parties, are capable of being
substituted by others of the same kind, not
having a distinct individuality.
2. Non-Fungibles
Things which cannot be substituted for
another
Consumable v. Fungible: It is the intention

of the parties to a contract which determines
whether the object is fungible or non-
fungible and not the consumable or non-
consumable nature of the thing.
By susceptibility to deterioration—
1. Deteriorable that deteriorate through use or
by time
2. Non-deteriorable
By reason of their susceptibility to division—

1. Divisible
Those which can be divided physically or
juridically without injury to their nature. E.g.:
piece of land or an inheritance.
2. Indivisible
Those which cannot be divided without
destroying their nature or rendering
impossible the fulfillment of the juridical
relation of which they are object.
By reason of designation—
1. Generic
That which indicates its homogenous nature,
but not the individual such as a horse,
house, dress, without indicating it.

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CIVIL LAW REVIEWER Chapter II. OWNERSHIP
Right to Self Help—

Chapter II. Ownership Article 429, Civil Code. The owner or lawful
possessor of a thing has the right to exclude any
I. DEFINITION person from the enjoyment and disposal therof. For
II. BUNDLE OF RIGHTS IN OWNERSHIP this purpose, he may use such force as may be
III. SPECIFIC RIGHTS OF THE OWNER reasonably necessary to repel or prevent an actual
IV. LIMITATIONS ON THE RIGHTS OF or threatened unlawful physical invasion or
OWNERSHIP usurpation of his property.
I. Definition 1. Authorizes the lawful possessor to use

 Independent right of exclusive force, to prevent a threatened lawful
enjoyment and control of a thing invasion or usurpation
 For the purpose of deriving all 2. Requisites
advantages required by the reasonable a. Lawful possession
needs of the owner/holder of right and b. Actual or threatened unlawful physical
promotion of general welfare invasion or usurpation of his property 144
 A thing pertaining to one person  Must not be a valid exercise of right
PROPERTY
 Completely subjected to his will or public function
 In everything not prohibited by public c. Force used is reasonably necessary to
law or the rights of another repel or prevent the aggression (least
damage rule)
d. Physical invasion must not have
succeeded yet, and possession has not
been lost
II. Rights Included in Ownership  Once property is lost, the owner can
no longer use force, but must file
Art. 428, Civil Code— action to recover
1. The owner has the right to enjoy and
dispose of a thing, without other limitations Right to Enclose or Fence—
than those established by law. Article 430, Civil Code. Every owner may enclose
2. The owner has also a right of action against or fence his land or tenements by means of walls,
ditches, live or dead hedges, or by any other means
the holder and possessor of the thing in
without detriment to servitudes constituted thereon.
order to recover it.
 But right is limited by servitudes existing
5 + 1 BUNDLE OF RIGHTS thereon—
1. Jus Utendi: Right to enjoy and receive what The owner of lower lands cannot erect
the property produces works that will impede or prevent such an
2. Jus Fruendi: Right to receive fruits easement or charge, constituted and
3. Jus Abutendi: Right to consume a thing by imposed by the law upon his estate for the
use benefit of higher lands belonging to different
1. Jus Disponendi: Right to to alienate, owners; neither can the latter do anything to
encumber, transform or even increase or extend the easement. It is true
destroy the thing owned that the Code authorizes every owner to
2. Jus Vindicandi: Right to recover enclose his estate by means of walls,
possession of property based on a ditches, fences or other device, but this right
claim of ownership is limited by the easement imposed upon his
4. Jus Possidendi: Right to possess the estate. (Lunod v. Meneses)
property (Implied from all the other rights)
Right to Receive Just Compensation (in case
III. Specific Rights under the Civil Code of expropriation)—
Article 435, Civil Code. No person shall be
Specific Rights— deprived of his property except by competent
1. Right to Self Help authority and for public use and always upon
payment of just compensation.
2. Right to Enclose of Fence
3. Right to Receive Just Compensation Should this requirement be not first complied with,
4. Right to Accession the courts shall protect and, in a proper case,
5. Right to Space and Subsoil restore the owner in his possession.
6. Right to Hidden Treasure
7. Right to Recover Possession

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a. Right of a finder by chance who is not a

 Requisites of a Valid Expropriation trespasser/intruder: ½ of treasure
a. For public use or utility b. Right of a usufructuary who finds
b. Necessity of expropriation: reasonable treasure: ½ of treasure
in view of purpose of the taking c. Right of State to acquire things of
c. Just compensation: Market value + interest to science or the arts
consequential damages
Right to Recover Possession—
Right to Accession— 1. Movable Property: Replevin
Article 440, Civil Code. The ownership of property  for manual delivery of property
gives the right by accession to everything which is  Prescription of Right: 4 years (GF) or 8
produced thereby, or which is incorporated or years (BF)
attached thereto, either naturally or artificially.
2. Immovable Property
Right to Space and Subsoil— a. Accion Reinvindicatoria: Recovery of
1. Ownership of surface and everything under ownership of real property 145
the property  Including but not limited to possession
PROPERTY
a. Can construct works, make plantings  Prescription of Action: 30 years
and excavations b. Accion Publiciana: Recovery of a better
b. Respecting servitudes and reasonable right to possess (de jure)
requirements of aerial navigation  Judgment as to who has the better
c. Easement of lateral and subjacent right of possession
support  Also, actions for ejectment not filed
2. Subject to laws and ordinances— within 1 year must be filed as accion
The doctrine that ownership of the land publiciana
extends to the periphery of the universe  Prescription: 10 years
(Cujus est solum ejus est usque ad c. Accion Interdictal: Recovery of
coelum, usque ad infernos) is no longer actual/physical possession (de facto)
applied in the modern world, in view of the  FORCIBLE ENTRY: Lawful possessor
doctrine that the air is a public highway. (US deprived through FISTS:
v. Causby) o FISTS (Force, Intimidation,
Strategy, Threats, Stealth)
Right to Hidden Treasure— o Prescription: 1 year from
Article 438, Civil Code. Hidden treasure belongs to dispossession (force,
the owner of the land, building, or other property on
intimidation, threats) or from
which it is found.
knowledge of dispossession
Nevertheless, when the discovery is made on the (strategy, stealth)
property of another, or of the State or any of its  UNLAWFUL DETAINER: Possessor
subdivisions, and by chance, one-half thereof shall refused to vacate upon demand by
be allowed to the finder. If the finder is a trespasser, owner
he shall not be entitled to any share of the treasure. o Legal possession (by
permission/tolerance) becomes
If the things found be of interest to science or the unlawful upon failure to vacate
arts, the State may acquire them at their just price,
o Prescription of action: 1 year
which shall be divided in conformity with the rule
stated. from last notice to vacate
Article 439, Civil Code. By treasure is understood, In case of leases of residential units, the
for legal purposes, any hidden and unknown deposit grounds for judicial ejectment are limited to
of money, jewelry or other precious objects, the those enumerated in, RA 9653: Rent
lawful ownership of which does not appear Control Law of 2009 (See Section on
Special Laws)
1. Legal concept of hidden treasure
a. Consist of money jewels or other 3. Requisites for Recovery [Art. 434, Civil
precious objects Code]
b. Hidden and unknown, such that the a. Property must be identified
finding is a real discovery  Through a relocation survey and a title
2. Owner also owns hidden treasure found in properly identifying boundaries and
the land subject to: location

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b. Plaintiff must rely on the strength of his 2. Specific Limitations

title and not on weakness of defendant’s a. Legal Servitudes: once requisites are
title satisfied, the servient owner may ask
 Right must be founded on positive title the Court to declare the existence of an
and not on lack or insufficiency of easement
defendant’s  Art. 644 & 678: Aqueduct
 Ei incumbit probatio qui dicit, non  Art. 679: Planting of trees
qui negat: He who asserts, not he  Art. 670: Light and View
who denied must prove  Art. 649 & 652: Right of Way
 Art. 637: Passage of water from upper
to lower tenements
IV. Limitations on Real Right of  Art. 676: Drainage of buildings
Ownership  Art. 684-687: Lateral and subjacent
support
b. Must not injure the rights of a third
Limitations Provided by Law— person 146
1. In General  Sic Utere Tuo Ut Alienum Non
PROPERTY
a. Police Power: Property taken with no Laedas
compensation for general welfare  The owner of a thing cannot make use
 When any property is condemned or thereof in such manner as to injure the
seized by competent authority in the rights of a third person. [Art. 431, Civil
interest of health, safety or security, Code]
the owner thereof shall not be entitled c. Act in State of Necessity—
to compensation, unless he can show The owner of a thing has no right to
that such condemnation or seizure is prohibit the interference of another with
unjustified. [Art. 436, Civil Code] the same, if the interference is
 Requisites: To justify the exercise of necessary to avert an imminent danger
police power, the following must and the threatened damage, compared
appear: to the damage arising to the owner from
o The interests of the public the interference, is much greater. The
generally, require such owner may demand from the person
interference (as distinguished benefited, indemnity for the damage to
from those of a particular class) him. [Art. 432, Civil Code]
o The means are reasonably
necessary for the
accomplishment of a purpose,
and not unduly oppressive
b. Taxation: Forced contribution to the
operation of government
c. Eminent Domain: Property taken for
public use/purpose, but subject to due
process and payment of just
compensation
 Requisites – To justify the exercise of
the right of eminent domain, the
following requisites must all be
present:
o Private property as the object of
the expropriation;
o The property is taken by the
State or by competent authority;
o The purpose of the taking is for
public use;
o The taking must be attended
with due process of law;
o There is payment of just
compensation

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CIVIL LAW REVIEWER Chapter III. ACCESSION
Industrial fruits are those produced by lands of any

Chapter III. Accession kind through cultivation or labor.
I. DEFINITION Civil fruits are the rents of buildings, the price of

II. GENERAL PRINCIPLES OF ACCESSION leases of lands and other property and the amount
III. KINDS OF ACCESSION of perpetual or life annuities or other similar income.
IV. PRINCIPLES APPLICABLE TO EACH
A. PRINCIPLES APPLICABLE TO
1. Accession Discreta Natural
ACCESSION DISCRETA
Article 444, Civil Code. Only such as are manifest
B. PRINICPLES APPLICABLE TO
or born are considered as natural or industrial fruits..
ACCESSION CONTINUA
V. ACCESSION OVER MOVABLES a. Spontaneous products of the soil
without the intervention of man
b. The young of animals
I. Definition  Products of animals which can be
ACCESSION: Owner of a thing becomes the removed without killing the principal
owner of everything that it may produce or which (e.g. fleece, wool, milk, etc. but not 147
may be inseparably united or incorporated meat, fur, hide)
PROPERTY
thereto, either naturally or artificially  Time of Accrual depending on kind:
II. General Principles of Accession 2. Accession Discreta Industrial: Refers to

1. Accessory follows the principal: presumption fruits produced by the land through labor
and cultivation
of ownership of both principal and accessory
3. Accession Discreta Civil: Refers to rentals
2. No one shall be unjustly enriched at the
expense of another: right to acquire but with of a movable or an immovable
duty to reimburse
Principles Applicable to Accession
Discreta—
III. Kinds of Accession 1. Time of Accrual depending on kind:
1. Accession Discreta a. Annuals: from the time seedlings
a. Natural appear on the ground
b. Industrial b. Perennials: from the time fruits actually
c. Civil appear on the plants
2. Accession Continua c. Young of animals: from the time they
a. Over Immovables are in the womb, although unborn –
 Industrial beginning of maximum ordinary period
 Natural of gestation
o Alluvion d. Fowls: from the time of incubation
o Avulsion
o Change of Course of River 2. A receiver of fruits has the obligation to pay
o Formation of Islands the expenses incurred by a third person in
b. Over Movables the production, gathering and preservation.
 Conjunction and Adjunction (Art. 443, Civil Code)
 Commixtion and Confusion  Exception: Receiver does not have to
 Specification pay if fruits are recovered before
gathering from a possessor in bad
faith, receiver does NOT have to pay
IV. Principles Governing Each Kind of indemnity
Accession  But if recovered after fruits have been
gathered, receiver must pay since the
A. Accession Discreta fruits have been separated from
immovable, hence accession principles
Accession Discreta: Accession of Fruits— will not apply
Article 441, Civil Code. To the owner belongs:
1. The natural fruits;
Accession Continua over Immovables:
2. The industrial fruits;
Accession by Attachment/Incorporation—
3. The civil fruits.
1. Accession Continua Artificial or
Article 442, Civil Code. Natural fruits are the Industrial: Building, planting or sowing on
spontaneous products of the soil, and the young and land owned by another (over immovables)
other products of animals. a. GENERAL RULE: Whatever is built,
planted or sown on the land of another +

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improvements or repairs made thereon, or sowing was done with the

belong to the owner of the land subject knowledge and without
to the rules on BPS. opposition on his part
b. PRESUMPTIONS: o On the part of owner of
 All works, sowing and planting are materials: Allows the use of his
presumed made by the owner materials without protest
 All works are presumed made at the o On the part of the builder,
owner’s expense, unless the contrary planter and sower: Knows that
is proved he does not have title to the
 The owner of the principal thing owns land, nor the right to build
the natural, industrial and civil fruits, thereon OR no permission of
except when the following persons the owner of the materials to
exist: pay their value
o Possessor in Good Faith  Bad faith leads to liability for
o Usufructuary damages and the loss of the works or
o Lessee the improvement without 148
o Antichretic creditor reimbursement
PROPERTY
c. Meaning of BAD FAITH  Bad faith of one party neutralizes the
 Bad faith bad faith of the other
o On the part of the landowner:
Whenever the building, planting
SUMMARY OF BUILDER, PLANTER AND SOWER PROVISIONS

ART. 447-455
Case 1: Landowner is BPS using material of another
Landowner and BPS Owner of Material

Good faith Good faith
 Right to acquire the improvements after paying the  Limited right of removal if there would be no injury
value of materials. to work constructed, or without plantings or
constructions being destroyed. (Article 447)
 Right to receive payment for value of materials
Bad faith Good faith
 Acquire BPS after paying its value and paying  Right to receive payment for value of materials
indemnity for damages (Article 447) but subject to  Absolute right of removal of the work constructed in
OM’s right to remove any event
 Right to be indemnified for damages
Good faith Bad faith
 Right to acquire the improvements without paying  Lose materials without right to indemnity
indemnity
 Right to acquire indemnity for damages if there are
hidden defects known to OM
Bad faith Bad faith
 Same as though acted in good faith under Article 453  Same as though acted in good faith under Article
453
Case 2: BPS builds, plants, or sows on another’s ;and using his own materials
Landowner BPS and Owner of Material
Good faith Good faith
 Landowner has option to:  BPS has right to retain (right of retention) the land
a. Acquire the improvement after paying until the payment of indemnity
indemnity which may be the original cost of
improvement OR increase in value of the whole NOTE: During this period BPS is not required to pay
brought about by the improvement rent.
b. Sell the land to the BP or collect rent from
sower UNLESS value of land is more than the
thing built, planted or sown or BP shall pay rent
fixed by parties or by the court in case of

lOMoARcPSD|3291925
disagreement.
NOTE: Landowner can be forced to choose under pain
of direct contempt or court can choose for him.
Good faith Bad faith
 Landowner has right to collect damages in any case  Pay damages to landowner
and option to:  BPS lose materials without right to indemnity
a. Acquire improvements without paying  No right to refuse to buy the land
indemnity if the improvements are still standing  Recover necessary expenses for preservation of
on the land land
b. Sell the land to BP or collect rent from the
sower unless value of the improvements in
which case there will be a forced lease
c. Order demolition of improvements or
restoration o0f land to its former condition at
the expense of the BPS
 Landowner must pay for necessary expenses for 149

preservation
PROPERTY
Bad faith Good faith
 Landowner must indemnify BPS for the  BPS has right to :
improvements and pay damages as if he himself did a. Be indemnified for damages
the BPS b. Remove all improvements in any event
 Landowner has no option to sell the land and
cannot compel BPS to buy the land unless BPS
agrees to
Bad faith Bad faith
 Same as though acted in bad faith under Article 453  Same as though acted in bad faith under Article 453
Case 3: BPS builds, plants or sows on another’s land with materials owned by third persons
Landowner BPS Owner of Material
Good faith Good faith Good faith
 Right to acquire improvements  Right of retention until  Collect value of material
and pay indemnity to BPS; necessary and useful expenses primarily from BPS and
subsdiarily liable to OM are paid subsidiarily liable for landowner
 Has option to:  Pay value of materials to OM if BPS is insolvent
a. Sell land to BP except if the  Limited right of removal
value of the land is
considerably more
b. Rent to sower
Good faith Good faith Bad faith
 Right to acquire improvements  Right of retention until  Lose the material without right
and pay indemnity to BPS necessary and useful expenses to indemnity
 Has option to: are paid.  Must pay for damages to BPS
a. Sell land to BP except if the  Keep BPS without indemnity to
value of the land is OM and collect damages from
considerably more him
b. Rent to sower
 Without subsidiarily liability for
cost of materials
Good faith Bad faith Bad faith
 Landowner has right to collect  Recover necessary expenses  Recover value from BPS (as if
damages in any case and for preservation of land from both are in good faith)
option to: landowner unless landowner  If BPS acquires improvement,
a. Acquire improvements w/o sells land remove materials if feasible w/o
paying for indemnity; or injury
b. Demolition or restoration;  No action against landowner but
or liable to landowner for damages
c. Sell to BP, or to rent to
sower
 Pay necessary expenses to
BPS
Bad faith Bad faith Bad faith
 Same as when all acted in good  Same as when all acted in good  Same as when all acted in good
faith under Article 453 faith under Article 453 faith under Article 453

lOMoARcPSD|3291925
Bad faith Good faith Good faith

 Acquire improvement after  May remove improvements  Remove materials if possible
paying indemnity and damages  Be indemnified for damages in w/o injury
to BPS unless latter decides to any event  Collect value of materials from
remove BPS; subsidiarily from
 Subsidiarily liable to OM for landowner
value of materials
Bad faith Bad faith Good faith
 Acquire improvements after  Right of retention until  Collect value of materials
indemnity; subsidiarily liable to necessary expenses are paid primarily from BPS and
OM for value of materials  Pay value of materials to OM subsidiarily from landowner
 Has option to: and pay him damages  Collect damages from BPS
a. Sell the land to BP except if  If BPS acquires improvements,
the value of the land is remove materials in any event
considerably more
b. Rent to sower 150
Good faith Bad faith Good faith
PROPERTY
 Acquire imrovement after  Right of retention until  Collect value of materials
paying indemnity; subsidiarily necessary expenses are paid primarily from BPS and
liable to OM  Pay value of materials to OM subsidiarily from landowner
 Landowner has option to:  Pay damages to OM  Collect damages from BPS
a. Sell land to BP except if  If BPS acquires improvements,
value of land is absolute right of removal in any
considerably more event
b. Rent to sower
Bad faith Good faith Bad faith
 Acquire improvements and pay  Receive indemnity for damages  No right to indemnity
indemnity and damages to BPS  Absolute right of removal of  Loses right to mnaterial
unless latter decides to remove improvements in any event
materials
2. Accession Continua Natural: Land o Compensate for the subjection

deposits, etc. of the land to encumbrances
a. ALLUVIUM: Soil is gradually deposited and legal easements
on banks adjoining the river b. AVULSION: A portion of land is
 REQUISITES segregated from one estate by the
o Deposit of soil or sediment is forceful current of a river, creek or
gradual and imperceptible torrent and transferred to another
o As a result of the action of the  REQUISITES
currents of the waters of the o Segregation and transfer of land
river is sudden and abrupt
o Land where the accretion takes o Caused by the current of the
place is adhacent to the banks water
of the rivers o Portion of land transported must
o Deemed to Exist: When the be known and identifiable
deposit of the sediment has OR
reached a level higher than the o Can also apply to sudden
highest level of the water during transfer by other forces of
the year nature such as land transferred
 EFFECT from a mountain slope because
o Land automatically owned by of an earthquake
the riparian owner  RESULT: The ownership of the
o BUT does not automatically detached property is retained by the
become registered property owner subject to removal within 2
 RATIONALE years from the detachment
o To offset the owner’s loss from
possible erosion due to the
current of the river

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c. CHANGE OF COURSE OF RIVER

 REQUISITES
o Change in the natural course of
the waters of the river
o Such change causes the
abandonment of the river beds
 Natural Bed: ground
covered by its waters
during ordinary floods
o Such change is sudden or
abrupt
 RESULTS:
o Owners whose lands are
occupied by the new course
automatically become owners of 151
the old bed, in proportion to the
PROPERTY
area they lost
o Owners of the lands adjoining
the old bed are given the right to
acquire the same by paying the
value of the land
 Not exceeding the value
of the land invaded by
the new bed (the old
property of the owner)
o The new bed opened by the
river on a private estate shall
become of public dominion
d. FORMATION OF ISLANDS
 Belong to the State if:
o Formed on the SEAS within the
jurisdiction of the Philippines
o Formed on LAKES
o Formed on NAVIGABLE or
FLOATABLE RIVERS
 Capable of affording a
channel or passage for
ships and vessels
 Must be sufficient not only
to float bancas and light
boats, but also bigger
watercraft
 Deep enough to allow
unobstructed movements of
ships and vessels
 TEST: can be used as a
highway of commerce, trade
and travel
 Belong to the Owners of the nearest
margins or banks if
o Formed through successive
accumulation of alluvial deposits
o On NON-NAVIGABLE and
NON-FLOATABLE RIVERS
 If island is in the middle:
divided longitudinally in half.

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CIVIL LAW REVIEWER Chapter IV. QUIETING OF TITLE
as defendant. However, unlike suits in rem,

Chapter IV. Quieting of Title a quasi in rem judgment is conclusive only
between the parties. (Spouses Portic v.
I. IN GENERAL
II. PURPOSE
Cristobal)
III. NATURE
IV. REQUISITES Justifications for quieting of title—
A. THERE IS A CLOUD ON TITLE TO REAL 1. To prevent future or further litigation on the
PROPERTY ownership of the property
B. THE PLAINTIFF MUST HAVE LEGAL OR 2. To protect the true title and possession
EQUITABLE TITLE TO OR INTEREST IN 3. To protect the real interest of both parties
THE PROPERTY 4. To determine and make known the precise
C. PLAINTIFF MUST RETURN THE
state of the title for the guidance of all
BENEFITS RECEIVED FROM THE
DEFENDANT
V. PRESCRIPTION The action to quiet title does not apply—
1. To questions involving interpretation of
documents 152
2. To mere written or oral assertions of claims
PROPERTY
Article 476, Civil Code. Whenever there is a cloud a. Unless made in a legal proceeding
on title to real property or any interest therein, by b. Or asserting that an instrument or entry
reason of any instrument, record, claim, in plaintiff’s favor is not what it purports
encumbrance or proceeding which is apparently
valid or effective but is in truth and in fact invalid,
to be
ineffective, voidable, or unenforceable, and may be 3. To boundary disputes
prejudicial to said title, an action may be brought to 4. To deeds by strangers to the title unless
remove such cloud or to quiet the title. purporting to convey the property of the
plaintiff
An action may also be brought to prevent a cloud 5. To instruments invalid on their face
from being cast upon title to real property or any 6. Where the validity of the instrument involves
interest therein. a pure question of law
Article 478, Civil Code. There may also be an
action to quiet title or remove a cloud therefrom IV. Requisites
when the contract, instrument or other obligation has
been extinguished or has terminated, or has been REQUISITES OF AN ACTION TO QUIET
barred by extinctive prescription.
TITLE—
1. There is a CLOUD on title to real property or
I. In General any interest to real property.
1. Applicable to real property 2. The plaintiff must have legal or equitable title
2. Basis: Equity comes to the aid of the plaintiff to, or interest in the real property.
who would suffer if the instrument (which 3. Plaintiff must return the benefits received
appear to be valid but is in reality void, from the defendant.
ineffective, voidable or unenforceable) was
to be enforced. A. There is a CLOUD on title to real property
or any interest to real property—
II. Purpose 1. “Cloud on title” means a semblance of title,
either legal or equitable, or a claim or a right
1. To declare: in real property, appearing in some legal
a. The invalidity of a claim on a title form but which is, in fact, invalid or which
b. The invalidity of an interest in property would be inequitable to enforce.
2. To free the plaintiff and all those claiming 2. A cloud exists if:
under him any hostile claim on the property. a. There is a claim emerging by reason of:
 Any instrument e.g. a contract, or
III. Nature: Quasi in Rem any deed of conveyance, mortgage,
1. A suit against a particular person or persons assignment, waiver, etc. covering the
in respect to the res and the judgment will property concerned
apply only to the property in dispute.  Any record, claim, encumbrance
2. The action to quiet title are characterized as e.g. an attachment, lien, inscription,
proceedings quasi in rem. Technically, they adverse claim, lis pendens, on a title
are neither in rem nor in personam. In an  Any proceeding e.g. an extrajudicial
action quasi in rem, an individual is named partition of property

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IV. QUIETING OF TITLE
b. The claim should appear valid or assailed before taking steps to vindicate
effective and extraneous evidence is his right.
needed to prove their validity or b. An action to quiet title to property in
invalidity. one’s possession is imprescriptible.
 Test: Would the owner of the property The rationale for this rule has been
in an action for ejectment brought by aptly stated thus: “The owner of real
the adverse party be required to offer property who is in possession thereof
evidence to defeat a recovery? may wait until his possession is invaded
 As a general rule, a cloud is not or his title is attacked before taking
created by mere verbal or parole steps to vindicate his right. A person
assertion of ownership or an interest claiming title to real property, but not in
in property. possession thereof, must act
c. Such instrument, etc. is, in truth and in affirmatively and within the time
fact, invalid, ineffective, voidable, or provided by the statute. Possession is a
unenforceable, or has been continuing right as is the right to defend
extinguished or terminated, or has been such possession. So it has been 153
barred by extinctive prescription. determined that an owner of real
PROPERTY
d. Such instrument, etc. may be prejudicial property in possession has a continuing
to the true owner or possessor. right to invoke a court of equity to
remove a cloud that is a continuing
B. The plaintiff must have legal or equitable menace to his title. Such a menace is
title to, or interest in the real property— compared to a continuing nuisance or
trespass which is treated as successive
Article 477, Civil Code. The plaintiff must have nuisances or trespasses, not barred by
legal or equitable title to, or interest in the real statute until continued without
property which is the subject matter of the action. He interruption for a length of time sufficient
need not be in possession of said property. to affect a change of title as a matter of
1. Legal title: the party is the registered owner law." (Pingol v. CA)
of the property.
2. Equitable title: the person has the 2. When the plaintiff is not in possession of
beneficial ownership of the property. the property, the action to quiet title may
prescribe.
C. Plaintiff must return the benefits received a. 10 yrs. – ordinary prescription
from the defendant— b. 30 yrs. – extraordinary prescription
Article 479, Civil Code. The plaintiff must return to Article 480, Civil Code. The principles of the
the defendant all benefits he may have received general law on the quieting of title are hereby
from the latter, or reimburse him for expenses that adopted insofar as they are not in conflict with this
may have redounded to the plaintiff’s benefit. Code.
NOTE: REQUISITES OF AN ACTION TO Article 481, Civil Code. The procedure for the
PREVENT A CLOUD— quieting of title or the removal of a cloud therefrom
1. Plaintiff has a title to a real property or shall be governed by such rules of court as the
interest therein Supreme Court shall promulgate.
2. Defendant is bent on creating a cloud on the
title or interest therein. The danger must not
be merely speculative or imaginary but
imminent.
3. Unless the defendant is restrained or
stopped, the title or interest of the plaintiff
will be prejudiced or adversely affected.
V. Prescription of Action
1. When plaintiff is in possession of the
property – the action to quiet title does not
prescribe.
a. The reason is that the owner of the
property or right may wait until his
possession is disturbed or his title is

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. CO-OWNERSHIP
APPLICABLE TO CPG OR ACP

Chapter V. Co-Ownership IX. SPECIAL RULES ON OWNERSHIP OF
DIFFERENT STORIES OF A HOUSE AS
I. DEFINITION DIFFERENTIATED FROM THE PROVISIONS
II. CHARACTERTISTICS OF THE CONDOMINIUM ACT
A. THERE IS A PLURALITY OF OWNERS X. EXTINGUISHMENT OF CO-OWNERSHIP
BUT ONLY ONE REAL RIGHT OR A. TOTAL DESTRUCTION OF THE THING OR
OBJECT OF OWNERSHIP. LOSS OF THE PROPERTY CO-OWNED
B. THE RECOGNITION OF IDEAL SHARES B. MERGER OF ALL INTERESTS IN ONE
OR ALIQUOT DEFINED BUT NOT PERSON
PHYSICALLY IDENTIFIED C. ACQUISITIVE PRESCRIPTION
C. EACH CO-OWNER HAS ABSOLUTE D. PARTITION OR DIVISION
CONTROL OVER HIS IDEAL SHARE
D. MUTUAL RESPECT AMONG CO-OWNERS
IN REGARD TO USE, ENJOYMENT AND I. Definition
PRESERVATION OF THE THINGS AS A Article 484, Civil Code. There is co-ownership
WHOLE. whenever the ownership of an undivided thing or
III. DIFFERENCE BETWEEN CO-OWNERSHIP
154
right belongs to different persons.
AND JOINT TENANCY
PROPERTY
IV. DIFFERENCE BETWEEN CO-OWNERSHIP In default of contracts, or of special provisions, co-
AND PARTNERSHIP ownership shall be governed by the provisions of
V. SOURCES OF CO-OWNERSHIP this Title.
A. LAW
1. COHABITATION
2. PURCHASE II. Characteristics
3. INTESTATE SUCCESSION A. There is a plurality of owners but only
4. DONATION one real right or object of ownership
5. CHANCE—COMMIXTION IN GOOD 1. There are at least 2 persons
FAITH 2. There is unity or material indivision of a
6. HIDDEN TREASURES
single object.
7. EASEMENT OF PARTY WALL
8. OCCUPATION—HARVESTING AND
FISHING B. There are ideal shares defined but not
9. CONDOMINIUM LAW physically identified
B. CONTRACTS
1. BY AGREEMENT OF 2 OR MORE Article 485, Civil Code. The share of the co-
PERSONS owners, in the benefits as well as in the charges,
2. BY UNIVERSAL PARTNERSHIP shall be proportional to their respective interests.
3. BY ASSOCIATION AND SOCIETIES Any stipulation in a contract to the contrary shall be
WITH SECRET ARTICLES void.
VI. RIGHTS OF EACH CO-OWNER OVER THE
THING OR PROPERTY OWNED IN COMMON The portions belonging to the co-owners in the co-
A. TO USE THE THING ACCORDING TO THE ownership shall be presumed equal, unless the
PURPOSE INTENDED contrary is proved.
B. TO SHARE IN THE BENEFITS IN
PROPORTION TO HIS INTEREST, C. Each co-owner has absolute control over
PROVIDED THE CHARGES ARE BORNE his ideal share
BY EACH IN THE SAME PROPORTION
Every co-owner has absolute ownership
C. TO BRING AN ACTION IN EJECTMENT
D. TO COMPEL THE OTHER CO-OWNERS of his undivided interest in the co-owned
TO CONTRIBUTE TO THE EXPENSES property and is free to alienate, assign
FOR THE PRESERVATION OF THE or mortgage his interest except as to
PROPERTY OWNED IN COMMON AND TO purely personal rights. While a co-
THE PAYMENT OF TAXES owner has the right to freely sell and
E. TO OPPOSE ANY ACT OF ALTERATION dispose of his undivided interest,
F. TO PROTEST AGAINST ACTS OF nevertheless, as a co-owner, he cannot
MAJORITY WHICH ARE SERIOUSLY alienate the shares of his other co-
PREJUDICIAL TO THE MINORITY
owners – nemo dat qui non habet.
G. TO EXERCISE LEGAL REDEMPTION
H. TO ASK FOR PARTITION (Acabal v. Acabal)
VII. IMPLICATIONS OF CO-OWNER’S RIGHT
OVER HIS IDEAL SHARE
A. RIGHTS OF A CO-OWNER
B. EFFECT OF TRANSACTION BY EACH CO-
OWNER
VIII. RULES ON CO-OWNERSHIP NOT

lOMoARcPSD|3291925
D. Mutual respect among co-owners in prescription

regard to use, enjoyment and
preservation of the things as a whole IV. Difference between Co-ownership
1. The property or thing held pro-indiviso is and Partnership
impressed with a fiduciary character:
Co-ownership Partnership
each co-owner becomes a trustee for
Creation
the benefit of his co-owners and he may
By law, fortuitous event,
not do any act prejudicial to the interest occupancy, succession
of his co-owners. Only by contract
or contract (no formalities
2. Until a judicial division is made, the of a contract necessary)
respective part of each holder cannot be Legal personality
determined. The effects of this would be: Partnership has a distinct
Co-ownership has no
a. Each co-owner exercises together legal personality
personality from the
with the others joint ownership partners
over the pro indiviso property, in Purpose
addition to his use and enjoyment of Collective enjoyment of Profit or advancement of 155
the same the property pecuniary interest
PROPERTY
Disposal of share
b. Each co-owner may enjoy the whole
A partner may not
property and use it.
Each co-owner may dispose of his
Only limitation: a co-owner cannot use dispose of his undivided share/interest or transfer
or enjoy the property in a manner that share without the consent
rd
the same to a 3 person
shall injure the interest of his other co- of others without the consent of
owners. (Pardell v. Bartolome) others
Mutual representation
III. Difference between Co-ownership No mutual representation Generally, a partner
(except if there is a binds other partners
and Joint Tenancy special authority for such (there is mutual
representation) representation)
Co-Ownership Joint Tenancy Effect of legal disability/ incapacity/ death
Origin Does not dissolve the co-
Dissolves partnership
Civil Law Common Law ownership
Other names Profit distribution
Tenancy in Common, Must be proportional to
Joint ownership, Depends upon the
ownership in common, the interest of each co-
“all for one, one for all” stipulation in their
Co-dominium owner (not subject to
contract
Extent of ownership stipulation)
Every joint tenant owns Duration
Each co-owner owns General rule: an
the whole property
undivided thing + own agreement to keep the
because their rights are No term limit set by law
ideal part/share of each ownership for more than
inseparable
Right to dispose of share 10 years is void
A joint tenant may not Attachment
dispose of his Creditors of a partner
Each co-owner may Creditors of a co-owner cannot attach and sell on
share/interest without the
dispose of his undivided can attach on the shares execution the shares of
consent of others
share without the consent of others other partners in the
(rationale: he may
of others. partnership
prejudice the others by
alienating his share)
Effect of death V. Sources of Co-Ownership
The ownership of a joint
tenant dies with him, and A. Law
his surviving joint tenants 1. Cohabitation: co-ownership between
The share of a co-owner
are subrogated to his common law spouses—
descends to his heirs
rights by virtue of jus The Family Code, in the following
accrescendi provisions, made the rules on co-
(survivorship) ownership apply
Effect of legal disability/incapacity  Article 147: between a man and a
Defense of one can be
Defense against woman capacitated to marry each
used by all, as
prescription is exclusive
disability/incapacity
other
to the co-owner with
inures to the benefit of
disability/incapacity
the others for purposes of

lOMoARcPSD|3291925
 Article 148: between a man and a Nevertheless, when the discovery is

woman not capacitated to marry each made on the property of another, or
other of the State or any of its
 Article 90: if matter is not provided in subdivisions, and by chance, one-half
the FC Chapter on ACP, then rules on thereof shall be allowed to the finder. If
co-ownership will apply the finder is a trespasser, he shall not be
entitled to any share of the treasure.
2. Purchase creating implied trust: co-
ownership between persons who agree to If the things found be of interest to
purchase property— science or the arts, the State may
Article 1452, Civil Code. If two or more acquire them at their just price, which
persons agree to purchase property and shall be divided in conformity with the
by common consent the legal title is rule stated.
taken in the name of one of them for the
benefit of all, a trust is created by force 7. Easement of Party Wall – co-ownership
of law in favor of the others in proportion of part-owners of a party wall 156
to the interest of each. Article 658, Civil Code. The easement
PROPERTY
3. Intestate succession: co-ownership of party wall shall be governed by the
between the heirs before partition of the provisions of this Title, by the local
estate ordinances and customs insofar as they
a. Article 1078, Civil Code. Where there do not conflict with the same, and by the
are two or more heirs, the whole estate rules of co-ownership.
of the decedent is, before its partition,
owned in common by such heirs, subject 8. Occupation: Harvesting and Fishing: co-
to the payment of debts of the ownership by two or more persons who
deceased. have seized a res nullius thing
b. Intestate Succession (without will)
c. For as long as the estate is left 9. Condominium Law: co-ownership of the
undivided the heirs will be considered common areas by holders of units
co-owners of the inheritance. If one of Sec. 6, RA 4726. The Condominium
the heirs dies, his heirs will in turn be co- Act. Unless otherwise expressly
owners of the surviving original heirs.
provided in the enabling or master deed
4. Donation: Co-ownership between donees
or the declaration of restrictions, the
Article 753, Civil Code. When a
incidents of a condominium grant are as
donation is made to several persons
follows:
jointly, it is understood to be in equal
(c) Unless otherwise, provided,
shares, and there shall be no right of
the common areas are held in
accretion among them, unless the donor
common by the holders of units,
has otherwise provided.
in equal shares, one for each
5. Chance/Commixtion in Good Faith: Co-
unit.
ownership between owners of 2 things that
are mixed by chance or by will of the owners
B. Contracts
Article 472, Civil Code. If by the will of
1. By Agreement of Two or More Persons
their owners two things of the same or
a. Article 494, Civil Code. No co-owner
different kinds are mixed, or if the
shall be obliged to remain in the co-
mixture occurs by chance, and in the
ownership. Each co-owner may demand
latter case the things are not separable
at any time the partition of the thing
without injury, each owner shall acquire
owned in common, insofar as his share
a right proportional to the part belonging
is concerned.
to him, bearing in mind the value of the
things mixed or confused.
Nevertheless, an agreement to keep the
6. Hidden Treasure – co-ownership between
thing undivided for a certain period of
finder and owner of the land
time, not exceeding ten years, shall be
Article 438, Civil Code. Hidden
valid. This term may be extended by a
treasure belongs to the owner of the
new agreement.
land, building, or other property on
which it is found.

lOMoARcPSD|3291925
A donor or testator may prohibit partition each, only the usufruct passing to the
for a period which shall not exceed partnership.
twenty years.
3. By Associations and Societies with
Neither shall there be any partition when Secret Articles
it is prohibited by law. Article 1775, Civil Code. Associations
and societies, whose articles are kept
No prescription shall run in favor of a co- secret among the members, and
owner or co-heir against his co-owners wherein any one of the members may
or co-heirs so long as he expressly or contract in his own name with third
impliedly recognizes the co-ownership. persons, shall have no juridical
personality, and shall be governed by
b. Two or more persons may agree to the provisions relating to co-ownership.
create a co-ownership
c. Note: there is a 10-year term limit for VI. Rights of Each Co-owner over the
ownership by agreement; BUT: Term 157
may be extended by a new agreement
Thing or Property Owned in Common
PROPERTY
2. By the creation of a Universal Rights of Each Co-owner over the Thing or
Partnership Property Owned in Common
a. Of all present property 1. To use the thing according to the purpose
 Article 1778, Civil Code. A intended (Jus Utendi)
partnership of all present property is 2. To share in the benefits in proportion to his
that in which the partners contribute all interest provided the charges are borne by
the property which actually belongs to each in the same proportion
them to a common fund, with the 3. To bring an action in ejectment
intention of dividing the same among 4. To compel the other co-owners to contribute
themselves, as well as all the profits to expense for preservation of the property
which they may acquire therewith. owned in common and to the payment of
taxes
 Article 1779, Civil Code. In a 5. To oppose any act of Alteration
universal partnership of all present 6. To protest against acts of majority which are
property, the property which belonged seriously prejudicial to the minority
to each of the partners at the time of 7. To exercise legal redemption
the constitution of the partnership, 8. To ask for partition
becomes the common property of all
the partners, as well as all the profits Right use the thing according to the purpose
which they may acquire therewith. intended (Jus Utendi)—
Article 486, Civil Code. Each co-owner may use
A stipulation for the common the thing owned in common, provided he does so in
accordance with the purpose for which it is intended
enjoyment of any other profits may
and in such a way as not to injure the interest of the
also be made; but the property which co-ownership or prevent the other co-owners from
the partners may acquire using it according to their rights. The purpose of the
subsequently by inheritance, legacy, co-ownership may be changed by agreement,
or donation cannot be included in such express or implied.
stipulation, except the fruits thereof.
1. Limitations on co-owner’s right:
b. Of profits a. Use must be to the purpose for which it
Article 1780, Civil Code. A universal is intended.
partnership of profits comprises all that  As stipulated in the agreement
the partners may acquire by their  In the absence of agreement, the
industry or work during the existence of purpose for which it was ordinarily
the partnership. adapted according to its nature.
 In the absence of the above, the use
Movable or immovable property which for which it was previously or formerly
each of the partners may possess at the devoted.
time of the celebration of the contract b. Use must be without prejudice to the
shall continue to pertain exclusively to interest of the co-ownership.

lOMoARcPSD|3291925
c. Use must not prevent the other co- property owned in common and to the
owners from making use of the property payment of taxes—
according to their own rights.
Article 488, Civil Code. Each co-owner shall have a
2. Changing the purpose of the thing— right to compel the other co-owners to contribute to
The purpose of the thing may be changed the expenses of preservation of the thing or right
by an agreement, express or implied, owned in common and to the taxes. Any one of the
latter may exempt himself from this obligation by
provided that the following will be observed:
renouncing so much of his undivided interest as may
 It does not cause injury or prejudice to be equivalent to his share of the expenses and
the interest of the co-ownership taxes. No such waiver shall be made if it is
 Any act against the collective interest prejudicial to the co-ownership.
is an act against ownership.
 A co-owner cannot devote the 1. This provision includes only necessary
community property to his exclusive expenses and taxes, and NOT those for
use mere luxury, embellishment or pleasure
 It does not prevent the use by other 158
a. Expenses for preservation: those which,
co-owners
PROPERTY
if not made, would endanger the
existence of the thing or reduce its value
Right to share in the benefits in proportion to or productivity
his interest provided the charges are borne b. Not used for the improvement of the
by each in the same proportion— thing (what is intended is the
preservation of the thing, not gaining
Article 485, Civil Code. The share of the co- profit from it)
owners, in the benefits as well as in the charges, 2. Renunciation
shall be proportional to their respective interests.
a. Other co-owners have the option not to
Any stipulation in a contract to the contrary shall be
void. contribute by renouncing so much of his
undivided interest as may be equivalent
The portions belonging to the co-owners in the co- to his share of the necessary expenses
ownership shall be presumed equal, unless the and taxes
contrary is proved.  Must be express; thus, failure to pay
is not a renunciation
Right to bring an action in ejectment—  Requires the consent of other co-
owners because it is a case of dacion
Article 487, Civil Code. Any one of the co-owners en pago (cessation of rights) involving
may bring an action in ejectment. expenses and taxes already paid
1. Action in Ejectment covers all kinds of action (J.B.L. Reyes)
for recovery of possession (reivindicatoria, b. A co-owner cannot renounce his share if
publiciana, forcible entry, unlawful detainer) it will be prejudicial to another co-owner
2. There is no need to include all the co-
owners as co-plaintiffs because the suit is 3. Procedure: Repairs for preservation
deemed to be instituted for the benefit of all
3. But the action will not prosper if the action is Article 489, Civil Code. Repairs for preservation
brought for the benefit of the plaintiff alone may be made at the will of one of the co-owners, but
and not for the co-ownership he must, if practicable, first notify his co-owners of
4. Article 487 of the Civil Code, which provides the necessity for such repairs. Expenses to improve
simply that “any one of the co-owners may or embellish the thing shall be decided upon by a
majority as determined in article 492.
bring an action in ejectment,” is a categorical
and an unqualified authority in favor of a. Notify other co-owners, as far as
owner to evict the petitioners from the practicable
portions of lot. The rule is a co-owner may b. However, a co-owner can advance
bring an action to exercise and protect the expenses for preservation of the
rights of all. When the action is brought by property even without prior consent of
one co-owner for the benefit of all, a others. He is entitled to reimbursement
favorable decision will benefit them; but an for the amount spent for necessary
adverse decision cannot prejudice their expenses.
rights. (Resuena v. CA)
Right to compel the other co-owners to

contribute to expense for preservation of the

lOMoARcPSD|3291925
4. Procedure: Embellishment or 4. Alteration v. Administration

improvements
a. Notify co-owners of improvements and Alteration Administration
embellishments to be made More permanent result Refers to the
 If no notification is made, the co-owner and relate to the enjoyment of the thing
who advanced the expenses still has substance or form of and is of transitory
the right to be reimbursed if he proves the thing character
the necessity of such repairs and the Nature: if the thing
reasonableness of the expense does not require any When the thing in its
 EXCEPTION: If the others can prove modification for its nature requires
that had he notified them, they could enjoyment, any changes, modifications
have hired the services of another modification that is can be considered as
who would charge less than the made will be acts of simple
people with whom the one who considered an administration
advanced contracted or that they alteration
know of a store that sells the needed 159
Consent: Unanimous Consent: mere majority
material at a cheaper price
PROPERTY
consent of all is sufficient
o Co-owner only entitled to be
reimbursed for the amount that a. Alteration without consent of all is illegal
should have been spent had he  The one who did the alteration will
notified the others, and lose whatever he spent in case he is
difference shall be borne by him made to demolish the work he has
alone done (no right to reimbursement)
b. Decision by majority must be followed  Damages to the non-consenting co-
owner can also be granted by the
Right to oppose any act of Alteration— court
b. Note: This is subject to ratification – if
Article 491, Civil Code. None of the co-owners co-owners decide to contribute to the
shall, without the consent of the others, make expenses by reimbursing the co-owner
alterations in the thing owned in common, even
who made the alteration (effect: benefit
though benefits for all would result therefrom.
However, if the withholding of the consent by one or of alteration will inure to the co-
more of the co-owners is clearly prejudicial to the ownership)
common interest, the courts may afford adequate
relief. Right to protest against acts of majority
1. Alteration: a change which more or less which are seriously prejudicial to the
permanently changes the use of a thing and minority—
adversely affecting the condition of the thing
or its enjoyment by the others. Article 492(3), Civil Code. Should there be no
2. It involves: majority, or should the resolution of the majority be
a. Change of the thing from the state or seriously prejudicial to those interested in the
property owned in common, the court, at the
essence in which the others believe it
instance of an interested party, shall order such
should remain, or measures as it may deem proper, including the
b. Withdrawal of the thing from the use to appointment of an administrator.
which they wish to be intended, or 1. Acts of administration
c. Any other transformation which a. Acts of management that do not involve
prejudices the condition or substance of alteration of the property
the thing or its enjoyment by the others b. Acts which are temporary in character
3. Rule: Any act of alteration requires so much so that they do not bind the
UNANIMOUS CONSENT OF ALL CO- property for a long time
WORKERS c. Acts that do not create real rights over
a. BUT when there is unreasonable the common property
withholding of consent: the co-owner
may go to court to seek adequate relief. 2. Rule:
b. Note: consent may be express or tacit If there is a disagreement or conflict of
c. Reason for the rule: alteration is an act opinions by and among the co-owners
of ownership, not of mere on the matter of administration and
administration. better enjoyment of the common
property, the resolution of the co-owners

lOMoARcPSD|3291925
representing the controlling interest (not a. The vendor is in a better position to

majority in number) shall be binding know things involving the property and
upon all co-owners. the sale
3. Who can be the administrator? b. Redemption of the property by a co-
He or she may or may not be a co- owner does not vest him sole
owner, PROVIDED that the co-owners ownership over said property.
delegated him or her. Redemption will inure to the benefit of all
4. What can an administrator do? co-owners. Redemption is not a mode of
a. PROVIDED there is a unanimous termination of relationship. (Mariano v.
consent of all co-owners, an CA)
administrator may compromise on,
donate, cede, alienate, mortgage, or 5. Other cases where right of redemption is
encumber the common property given
b. If the amount of individual contribution is a. Rural land
undetermined, the law presumes that Article 1621, Civil Code. The
they all contributed proportionately owners of adjoining lands shall also 160
(Lavadia v. Cosme) have the right of redemption when a
PROPERTY
piece of rural land, the area of which
Right to exercise legal redemption— does not exceed one hectare, is
alienated, unless the grantee does
Article 1620, Civil Code. A co-owner of a thing may not own any rural land.
exercise the right of redemption in case the shares
of all the other co-owners or of any of them, are sold This right is not applicable to
to a third person. If the price of the alienation is adjacent lands which are separated
grossly excessive, the redemptioner shall pay only a
by brooks, drains, ravines, roads
reasonable one.
and other apparent servitudes for
Should two or more co-owners desire to exercise the the benefit of other estates.
right of redemption, they may only do so in
proportion to the share they may respectively have If two or more adjoining owners
in the thing owned in common. desire to exercise the right of
redemption at the same time, the
Article 1623, Civil Code. The right of legal pre- owner of the adjoining land of
emption or redemption shall not be exercised except smaller area shall be preferred; and
within thirty days from the notice in writing by the
should both lands have the same
prospective vendor, or by the vendor, as the case
may be. The deed of sale shall not be recorded in area, the one who first requested
the Registry of Property, unless accompanied by an the redemption.
affidavit of the vendor that he has given written
notice thereof to all possible redemptioners. b. Urban land
 Article 1622, Civil Code. Whenever a
The right of redemption of co-owners excludes that piece of urban land which is so small
of adjoining owners. and so situated that a major portion
thereof cannot be used for any
1. Redemption: Act of reclaiming possession practical purpose within a reasonable
of something by payment of a specific price time, having been bought merely for
2. The 30-day redemption period starts from speculation, is about to be re-sold, the
the date of written notification of the sale owner of any adjoining land has a right
made by the co-owner. of pre-emption at a reasonable price.
Without such written notice, the 30-day
period does not start to run If the re-sale has been perfected, the
3. Exceptions: owner of the adjoining land shall have
a. Estoppel by laches (inaction) a right of redemption, also at a
If there is oral notification and reasonable price.
several years have passed (implied
waiver) and there is reliance on the  When two or more owners of adjoining
non-action of co-owners lands wish to exercise the right of pre-
b. Estoppel by silence emption or redemption, the owner
When there is duty to speak whose intended use of the land in
4. Note: The written notification must come question appears best justified shall
from the prospective vendor be preferred.

lOMoARcPSD|3291925
Right to ask for partition— 30 days from notification of prospective co-

owner vendor)
Article 494, Civil Code. No co-owner shall be 3. To substitute another person in the
obliged to remain in the co-ownership. Each co- enjoyment of thing
owner may demand at any time the partition of the 4. To renounce part of his interest to reimburse
thing owned in common, insofar as his share is necessary expenses incurred by another co-
concerned.
owner (Article 488)
Nevertheless, an agreement to keep the thing
undivided for a certain period of time, not exceeding Article 488, Civil Code. Each co-owner shall have a
ten years, shall be valid. This term may be extended right to compel the other co-owners to contribute to
by a new agreement. the expenses of preservation of the thing or right
owned in common and to the taxes. Any one of the
A donor or testator may prohibit partition for a period latter may exempt himself from this obligation by
which shall not exceed twenty years. renouncing so much of his undivided interest as may
be equivalent to his share of the expenses and
Neither shall there be any partition when it is taxes. No such waiver shall be made if it is 161
prohibited by law. prejudicial to the co-ownership.
PROPERTY
No prescription shall run in favor of a co-owner or B. Effect of Transaction by Each Owner
co-heir against his co-owners or co-heirs so long as 1. Limited to his share in the partition
he expressly or impliedly recognizes the co- 2. Transferee does not acquire any specific
ownership. portion of the whole property until partition
3. Creditors of co-owners may intervene in the
1. Partition: segregation or division of a partition to attack the same if it is prejudicial
property in common to those to whom it (Art. 499)
belongs
2. Rule: Right to demand partition does not Article 499, Civil Code. The partition of a thing
prescribe owned in common shall not prejudice third persons,
3. Exceptions to the rule: who shall retain the rights of mortgage, servitude or
a. When indivision within 10 years is any other real rights belonging to them before the
stipulated by the co-owners division was made. Personal rights pertaining to
b. When co-ownership is imposed as a third persons against the co-ownership shall also
remain in force, notwithstanding the partition.
condition in a donation or in a last will
and testament by the
transferor/donor/testator Note: Creditors cannot ask for rescission even if
c. When from the nature of the property in not notified in the absence of fraud (Art. 497,
common, it cannot be divided (i.e. party Civil Code)
wall)
Article 497, Civil Code. The creditors or assignees
d. When partition is generally prohibited by
of the co-owners may take part in the division of the
law (i.e. ACP, party wall) thing owned in common and object to its being
e. When the partition would render the effected without their concurrence. But they cannot
thing unserviceable or the thing held in impugn any partition already executed, unless there
common is essentially indivisible— has been fraud, or in case it was made
If the thing cannot be physically notwithstanding a formal opposition presented to
partitioned, they may sell the thing prevent it, without prejudice to the right of the debtor
and the co-owners may divide the or assignor to maintain its validity.
proceeds)
f. When acquisitive prescription has set in VIII. Rules on Co-Ownership Not
favor of a stranger to con-ownership or Applicable to CPG or ACP
in favor of a co-owner
 These two regimes are governed by the
VII. Implication of Co-owner’s Right over provisions on the Family Code
His Ideal Share  Even void marriages and cohabitation of
incapacitated persons are governed by
A. Rights of a Co-owner Article 50, 147, and 148 of the Family Code
1. To share in fruits and benefits
2. To alienate, mortgage, or encumber and
dispose his ideal share (but other co-owners
may exercise right of legal redemption within

lOMoARcPSD|3291925
IX. Special Rules on Ownership of master deed which shall contain, among others, the
following:
Different Stories of a House as
Differentiated from Provisions of the a. Description of the land on which the building
Condominium Act or buildings and improvements are to be
located;
RA 4726. THE CONDOMINIUM ACT
b. Description of the building or buildings,
Sec. 2. A Condominium is an interest in real stating the number of storeys and basement,
the number of units and their accessories, if
property consisting of a separate interests in a unit
in a residential, industrial or commercial building or any;
in an industrial estate and an undivided interests in
c. Description of the common areas and
common, directly and indirectly, in the land, or the
facilities;
appurtenant interest of their respective units in the
common areas.
d. A statement of the exact nature of the
The real right in condominium may be ownership or
interest acquired or to be acquired by the 162
purchased in the separate units and the
any interest in real property recognized by law on
PROPERTY
property in the Civil Code and other pertinent laws. common areas of the condominium projects.
Where title to or to appurtenant interests in
Sec. 3. As used in this Act, unless the context the common areas is to be held by a
condominium corporation, a statement to
otherwise requires:
b. Unit" means a part of the condominium this effect shall be included;
project intended for any type of independent
use or ownership, including one or more e. A certificate of the registered owner of the
property, if he is other than those executing
rooms or spaces located in one or more
the master deed, as well as of all registered
floors (or parts of floors) in a building or
buildings and such accessories as may be holders of any lien or encumbrances on the
appended thereto: Provided, that in the case property, that they consent to the
registration of the deed;
of an industrial estate wherein the
condominium project consists of several
buildings, plants and factories may, by f. The following plans shall be appended to the
themselves, be considered separately as deed as integral parts thereof:
individual units as herein defined.
1. A survey plan of the land included in the
c. "Project" means the entire parcel of real project, unless a survey plan of the same
property divided or to be divided in property had previously been filed in said
office.
condominiums, including all structures
thereon.
2. A diagrammatic floor plan of the building
d. "Industrial Estate or Estate" means a certain or buildings each unit, its relative
location and approximate dimensions.
tract of land which is subdivided and
developed primarily for industrial purposes
and which usually includes provisions for g. Any reasonable restriction not contrary to
basic infrastructure facilities and common law, morals, or public policy regarding the
right of any condominium owner to alienate
services such as roads, water, electricity,
or dispose off his condominium.
drainage and waste disposal system.
e. "Common areas" means the entire project h. The enabling or master deed may be
amended or revoked upon registration of an
except all units separately granted or held or
instrument executed by a simple majority of
reserved.
the registered owners of the property:
f. "To divide" real property means to divide the Provided, That in a condominium project
exclusively for either residential or
ownership thereof or other interests therein
commercial use, simple majority shall be on
by conveying one or more condominium
therein but less than the whole thereof. a per unit of ownership basis and that in the
case of mixed use, simple majority shall be
Sec. 4. The provisions of this Act shall apply to on a floor area of ownership basis:
Provided, further, That prior notifications to
property divided or to be divided into condominium
all registered owners shall be submitted to
only if there shall be recorded in the Register of
Deeds of the province or city in which the property the Housing and Land Use Regulatory
lies, and duly annotated in the corresponding Board and the city/municipal engineer for
approval before it can be registered. Until
certificate of title of the land, if the latter had been
registration of a revocation, the provisions of
patented or registered under either the Land
Registration or Cadastral Acts, an enabling or this Act shall continue to apply to such

lOMoARcPSD|3291925
property.
d. A non-exclusive easement for ingress,
Sec. 5. Any transfer or conveyance of a unit or an egress and support through the common
apartment, office or store or other space therein, areas in appurtenant to each unit and the
shall include the transfer or conveyance of the common areas are subject to such
undivided interest in the common areas or in a easement.
proper case, the membership or share holdings in
the condominium corporation: Provided, however, e. Each condominium owner shall have the
That where the common areas in the condominium exclusive right to paint, repaint, tile, wax,
project are held by the owners of separate units as paper or otherwise refinish and decorate the
co-owners hereof, no condominium unit therein shall inner surfaces of the walls, ceilings, floors,
be conveyed or transferred to persons other than windows and doors hounding his own unit:
Filipino citizens or corporation at least 60% of the provided, that in the case of an industrial
capital stock of which belong to Filipino citizens, estate condominium unit, such right may be
except in cases of hereditary succession. Where the exercised over the external surfaces of the
common areas in a condominium project are held by said unit.
a corporation, no transfer or conveyance of a unit 163
shall be valid if the concomitant transfer of the f. Each condominium owner shall have the
PROPERTY
appurtenant membership or stockholding in the exclusive right to mortgage, pledge or
corporation will cause the alien interest in such encumber his condominium and to have the
corporation to exceed the limits imposed by existing same appraised independently of the other
laws. condominium owner.
Sec. 6. Unless otherwise expressly provided in the g. Each condominium owner has also the
enabling or master deed or the declaration of absolute right to sell or dispose of his
restrictions, the incidents of a condominium grant condominium unless the master deed
are as follows: contains a requirements that the property be
first offered to the condominium owners
a. the boundary of the unit granted are the within a reasonable period of time before
interior surfaces of the perimeter walls, the same is offered to outside parties;
floors, ceiling, windows and doors thereof:
Provided, that in the case of an industrial Sec. 7. Except as provided in the following section,
estate condominium projects, wherein whole the common areas shall remain undivided, and there
buildings, plants or factories may be shall be no judicial partition thereof.
considered as unit defined under section 3
(b) hereof, the boundary of a unit shall Sec. 8. Where several persons own condominium
include the outer surfaces of the perimeter in a condominium project, an action may be brought
walls of said buildings, plants or factories. by one or more such person for partition thereof, by
The following are not part of the unit: sale of the entire project, as if the owners of all the
bearing walls, columns, floors, roofs, condominium in such project were co-owners of the
foundations, and other common structural entire project in the same proportion as their
elements of the buildings; lobbies, interests in the common areas: Provided, however,
stairways, hall ways and other areas of that a partition shall be made only upon a showing:
common use, elevator equipment and
shafts, central heating, central refrigeration a. That three years after damage or
and central air conditioning equipment, destruction to the project which renders a
reservoir, tanks, pumps and other central material part thereof unfit for its use prior
services and facilities, pipes, ducts, flues, thereto, the project had not been rebuilt or
chutes, conduits wires and other utility repaired substantially to its state prior to its
installations, wherever located, except the damage or destruction; or
outlets thereof when located within the unit.
b. That damage or destruction to the project
b. There shall pass with the unit, as an has rendered one half or more of the units
appurtenant thereof, an exclusive casement therein untenantable and that condominium
for the use of the air space encompasses by owners holding in aggregate more than 30
the boundaries of the unit as it exists at any percent interest in the common areas are
particular time and as the unit may lawfully opposed to the repair or restoration of the
be altered or reconstructed from time to projects; or
time. Such easement shall be automatically
terminated in any air space upon destruction c. That project has been in existence in excess
of the units as to render it untenantable. of 50 years, that it is obsolete and
uneconomical, and that condominium
c. Unless otherwise provided, the common owners holding in aggregate more than 50
areas are held in common by the holders of percent interest in the common areas are
units, in equal share one for each unit. opposed to repair or restoration or

lOMoARcPSD|3291925
remodeling or modernizing of the project; or 5. For payment of taxes and special

assessments which would be a lien
d. That the project or a material part thereof upon the entire project or common
has been condemned or expropriated and areas, and for discharge of any lien or
that the project is no longer viable, or that encumbrance levied against the entire
the condominium owners holding in project or the common areas;
aggregate more than 70 percent interest in 6. For reconstruction of any portion or
the common areas are opposed to the portions of any damage to or
continuation of the condominium regime destruction of the project;
after expropriation or condemnation of a 7. The manner for delegation of its
material proportion thereof; or powers;
8. For entry by its officers and agents into
e. That the condition for such partition by sale any unit when necessary in connection
set forth in the declaration of restrictions with the maintenance or construction
duly registered in accordance with the terms for which such body is responsible;
of this Act, have been met. 9. For a power of attorney to the
management body to sell the entire 164
Sec. 9. The owner of a project shall, prior to the project for the benefit of all of the
PROPERTY
conveyance of any condominium therein, register a owners thereof when partition of the
declaration of restrictions relating to such project, project may be authorized under
which restrictions shall constitute a lien upon each Section 8 of this Act, which said power
condominium in the project, and shall insure to and shall be binding upon all of the
bind all condominium owners in the project. Such condominium owners regardless of
liens, unless otherwise provided, may be enforced whether they assume the obligations of
by any condominium owner in the project or by the the restrictions or not.
management body of such project. The Register of b. The manner and procedure for amending
Deeds shall enter and annotate the declaration of such restrictions: Provided, That the vote of
restrictions upon the certificate of title covering the not less than a majority in interest of the
land included within the project, if the land is owners is obtained.
patented or registered under the Land Registration
or Cadastral Acts. c. For independent audit of the accounts of
the management body;
The declaration of restrictions shall provide for the
management of the project by anyone of the d. For reasonable assessments to meet
following management bodies: a condominium authorized expenditures, each
corporation, an association of the condominium condominium unit to be assessed
owners, a board of governors elected by separately for its share of such expenses in
condominium owners, or a management agent proportion (unless otherwise provided) to
elected by the owners or by the board named in the its owners fractional interest in any
declaration. It shall also provide for voting majorities common areas;
quorums, notices, meeting date, and other rules
governing such body or bodies. e. For the subordination of the liens securing
such assessments to other liens either
Such declaration of restrictions, among other things, generally or specifically described;
may also provide:
f. For conditions, other than those provided
for in Sections eight and thirteen of this Act,
a. As to any such management body; upon which partition of the project and
1. For the powers thereof, including power dissolution of the condominium corporation
to enforce the provisions of the may be made. Such right to partition or
declarations of restrictions; dissolution may be conditioned upon failure
2. For maintenance of insurance policies, of the condominium owners to rebuild
insuring condominium owners against within a certain period or upon specified
loss by fire, casualty, liability, inadequacy of insurance proceeds, or upon
workmen's compensation and other specified percentage of damage to the
insurable risks, and for bonding of the building, or upon a decision of an arbitrator,
members of any management body; or upon any other reasonable condition.
3. Provisions for maintenance, utility,
gardening and other services benefiting
the common areas, for the employment Sec. 10. Whenever the common areas in a
of personnel necessary for the condominium project are held by a condominium
operation of the building, and legal, corporation, such corporation shall constitute the
accounting and other professional and management body of the project. The corporate
technical services; purposes of such a corporation shall be limited to
4. For purchase of materials, supplies and the holding of the common areas, either in
the like needed by the common areas; ownership or any other interest in real property

lOMoARcPSD|3291925
recognized by law, to the management of the d. That project or material part thereof has
project, and to such other purposes as may be been condemned or expropriated and that
necessary, incidental or convenient to the the project is no longer viable or that the
accomplishment of said purposes. The articles of members holding in aggregate more than
incorporation or by-laws of the corporation shall not 70 percent interest in the corporation if non-
contain any provision contrary to or inconsistent with stock, or the stockholders representing
the provisions of this Act, the enabling or master more than 70 percent of the capital stock
deed, or the declaration of restrictions of the project. entitled to vote, if a stock corporation, are
Membership in a condominium corporation, opposed to the continuation of the
regardless of whether it is a stock or non-stock condominium regime after expropriation or
corporation, shall not be transferable separately condemnation of a material portion thereof;
from the condominium unit of which it is an or
appurtenance. When a member or stockholder
ceases to own a unit in the project in which the e. That the conditions for such a dissolution
condominium corporation owns or holds the set forth in the declaration of restrictions of
common areas, he shall automatically cease to be a the project in which the corporation, are
member or stockholder of the condominium opposed to the continuation of the 165
corporation. condominium regime after expropriation or
PROPERTY
condemnation of a material portion thereof.
Sec. 11. The registration and regulation of a
condominium corporation shall be vested with the Sec. 14. The condominium corporation may also be
Housing And Land Use Regulatory Board (HLURB) dissolved by the affirmative vote of all the
and the term of the said corporation shall be stockholders or members thereof at a general or
coterminous with the duration of the subdivision special meeting duly called for such purpose:
projects, the provision of the corporation law to the Provided, that all the requirements of Section 62 of
contrary notwithstanding. the Corporation Law are complied with.
Sec. 12. The dissolution of the condominium xxx

corporation in any manner and any of the causes
provided by law shall be governed by the provisions Sec. 16. A condominium corporation shall not,
of the Title XIV of the Corporation Code. during its existence, sell, exchange, lease or
otherwise dispose of the common areas owned or
Sec. 13. Until the enabling or the master deed of held by it in the condominium project unless
the project in which the condominium corporation authorized by the affirmative vote of a simple
owns or holds the common areas is revoked the majority of the registered owners: provided, that
corporation shall not be voluntarily dissolved through prior notification to all registered owners are done
an action for dissolution under Rule 104 of the Rules and provided further, that the condominium
of Court except upon a showing: corporation may expand or integrate the project with
another upon the affirmative vote of a simple
a. The three years after damage or majority of the registered owners, subject only to the
destruction to the project in which damage final approval of the HLURB.
or destruction renders a materials part
thereof unfit for its use prior thereto, the xxx
project has not been rebuilt or repaired
substantially to its state prior to its damage Sec. 19. Where the enabling or master deed
or destruction; or provides that the land included within a
condominium project are to be owned in common by
b. The damage or destruction to the project the condominium owners therein the Register of
has rendered one half or more of the units Deeds may at the request of all the condominium
therein untenantable and that more than 30 owner and upon surrender of all their condominium
percent of the member of the corporation owner's copies, cancel the certificate of title of the
entitled to vote, if a stock corporation, are property and issue a new one in the name of said
opposed to the repair or reconstruction of condominium owners as pro-indiviso co-owners
the project; or thereof.
c. That the project has been in existence xxx

excess of 50 years, that it is obsolete and
uneconomical and that more than 50 Sec. 23. Where, in an action for partition of a
percent of the members of the corporation condominium corporation on the ground that the
if non-stock or stockholders representing project or a material part thereof has been
more than 50 percent of the capital stock condemned or expropriated, the court finds that the
entitled to vote, if a stock corporation, are condition provided in this Act or in the declaration
opposed to the repair or restoration or have not been met, the court may decree a
remodeling or modernizing of the project; or reorganization of the project declaring which portion
or portions of the project shall continue as a

lOMoARcPSD|3291925
condominium project, the owners thereof, and the

respective rights of the remaining owners and the What Does the Housing and Land Use
just compensation, if any, that a condominium owner Regulatory Board Do?—
may be entitled to due to deprivation of his property. They hear the complaints of buyers.
Upon receipt of a copy of the decree, the Register of
Deeds shall enter and annotate the same on the
pertinent certificate of title. Important Documents in Condo Ownership
1. Deed of sale
Sec. 24. Any deed declaration or plan for a 2. Master deed (Sec. 4)
condominium project shall be liberally construed to 3. Declaration of restrictions (Sec. 9): pertains
facilitate the operation of the project, and its to how common areas will be governed and
provisions shall be presumed to be independent and who will do the governing
several. a. i.e. how to contribute to common area
expenses: contribution to maintenance,
Sec. 25. The building and design standards for
upkeep, repair of common areas
condominium projects to be promulgated by HLURB
included
shall provide for, among others, accessibility
b. there is an “Assessment”, which is a lien 166
features for disabled persons pursuant to Batas
upon the condo unit
PROPERTY
Pambansa Bilang 344 of 1994.
Sec. 26. Whenever real property has been divided X. Extinguishment of Co-Ownership
into condominiums, each condominium separately
owned shall be separately assessed, for purposes of
real property taxation and other tax purposes, to the A. Total destruction of thing or loss of the
owners thereof and tax on each such condominium property co-owned
shall constitute a lien solely thereon.
Is there still co-ownership if a building is
Sec. 27. All acts or parts of Acts in conflict on destroyed?—Yes, over the land and the
inconsistent with this Act are hereby amended debris.
insofar as condominium and its incidents are
concerned.
B. Merger of all interests in one person
Concept of Condominium—
C. Acquisitive Presciption
It is an interest in real property consisting of a:
By whom—
1. SEPARATE INTEREST in a unit in a
1. A third person (Art. 1106)
a. residential, or
2. A co-owner against the other co-owners
b. industrial, or
c. commercial building
Requisites—
2. UNDIVIDED INTEREST in common directly
1. Unequivocal acts of repudiation of the rights
or indirectly,
of the other co-owners (you oust the other
a. in the land on which it is located
co-owners)
b. in other common areas of the building
a. Must be shown by clear and convincing
evidence
When Ownership of the Unit is Acquired—
b. Must be within the knowledge of the
1. Ownership is acquired only after the buyer
other co-owners
had fully paid the purchase price.
c. Must not be a mere refusal to recognize
2. The ownership of the unit is what makes the
the others as co-owners
buyer a shareholder in the condominium.
2. Open and adverse possession - Not mere
silent possession
Note: The condominium law effectively
separates the building from the land (by a
Note: there is a presumption that
master deed)
possession of a co-owner is NOT adverse
 Prescription only arises and produces all
3. Building is deemed an accessory
effects when the acts are clearly meant
to oust the rights of the other co-owners
Amendments—
Co-ownership in common areas means shared
D. Partition or Division
expenses in these areas
Effects of Partition—
1. Sec 4: simple majority of the property
1. Confers upon each heir the exclusive
2. Sec 16: common areas may be disposed by
ownership of the property adjudicated to him
affirmative vote of a simple majority of the
registered owners

lOMoARcPSD|3291925
2. Co-heirs shall be reciprocally bound to  Form: Oral or Written (Statute of Frauds

warrant the title to and the quality of each does not operate here because it is not a
property adjudicated conveyance of property but a mere
3. Reciprocal obligation of warranty shall be segregation or designation of which parts
proportionate to the respective hereditary belong to whom)
shares of co-heirs  Rules of Court does not preclude
4. An action to enforce warranty must be agreements or settlements.
brought within 10 years from the date the  Action for Partition:
right accrues a. WON the plaintiff is indeed a co-owner
5. The co-heirs shall not be liable for the of the property
subsequent insolvency of the debtor of the b. HOW will the property be divided
estate between the plaintiff and defendant.
 Intervention of creditors and assignees:
Note: Unless partition is effected, each heir a. The law does not expressly require that
cannot claim sole ownership over a there should be a previous notice to the
definite portion of the land and cannot creditors and assignees before a 167
dispose of the same. Heirs become the partition can be validly made, but the
PROPERTY
undivided owner of the whole estate – right of creditors and assignees to take
each co-owner shall have full ownership part in the division presupposes the duty
if his part even as to fruits and benefits. to notify them.
He may alienate, assign or mortgage his b. If notice is not given, the partition will not
share. The effect of such act shall be be binding on them.
limited to the portion allotted to him c. Once notice has been given, it is the
during partition. Until said partition duty of creditors and assignees to
though, he cannot alienate a specific intervene and make known their stand.
part of the estate. A co-owner cannot i. If they fail to do this, they cannot
adjudicate to himself a definite portion question the division made,
owned in common until partition by except in case of fraud.
agreement or by a judicial decree. Until ii. If they formulate a formal
then, they can only sell their question to its being made, they
successional rights. (Carvaria v. CA) can contest such partition mad
in spite of their opposition.
Rights of Creditors of Individual Co-
Owners—
Article 497, Civil Code. The creditors or assignees

of the co-owners may take part in the division of the
thing owned in common and object to its being
effected without their concurrence. But they cannot
impugn any partition already executed, unless there
has been fraud, or in case it was made
notwithstanding a formal opposition presented to
prevent it, without prejudice to the right of the debtor
or assignor to maintain its validity.
 Creditors referred to in the provision: All

creditors, whether ordinary or preferred, who
became such during the subsistence of the
co-ownership.
 Rule: The creditors are allowed to take part
in the partition.
 Reason for the rule: They own part of the
interest of the o-owners who made the
assignment or alienation.
Procedure for Partition—

 Governing rule: Rule 69 of the Rules of
Court
 How: By agreement by parties or by judicial
decree

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CIVIL LAW REVIEWER Chapter VI. POSSESSION
2. It is the holding of a thing or a right, whether

Chapter VI. Possession by material occupation or by the fact that the
thing or the right is subjected to the action of
I. DEFINITION AND CONCEPT
II. DEGREES OF POSSESSION
our will. (Manresa)
A. MERE HOLDING WITHOUT TITLE 3. It is an independent right apart from
WHATSOEVER, AND IN VIOLATION OF ownership.
THE RIGHT OF THE OWNER
B. POSSESSION WITH JURIDICAL TITLE Right of Possession Right to possess
BUT NOT THAT OF OWNERSHIP (jus possessionis) (jus possidendi)
C. POSSESSION WITH JUST TITLE, BUT Independent right Incident to ownership
NOT FROM THE TRUE OWNER
D. POSSESSION WITH JUST TITLE FROM 4. Possession includes the idea of occupation.
THE TRUE OWNER It cannot exist without it. (Exceptions: Art.
III. CLASSES OF POSSESSION
537)
A. NATURAL POSSESSION
B. CIVIL POSSESSION
IV. CASES OF POSSESSION Essential Requisites of Possession— 168
A. POSSESSION IN ONE’S OWN NAME AND 1. Corpus possessionis: Holding (actual or
PROPERTY
POSSESSION IN THE NAME OF constructive) of a thing or exercise of a right,
ANOTHER if right is involved.
B. POSSESSION IN THE CONCEPT OF AN a. General Rule: Possession and
OWNER AND POSSESSION IN THE cultivation of a portion of a tract under
CONCEPT OF A HOLDER claim of ownership of all is a
C. POSSESSION IN GOOD FAITH AND
constructive possession of all, if the
POSSESSION IN BAD FAITH
V. WHAT THINGS OR RIGHTS MAY BE remainder is not in adverse possession
POSSESSED of another.
VI. WHAT MAY NOT BE POSSESSED BY b. Doctrine of constructive possession
PRIVATE PERSONS applies when the possession is under
VII. ACQUISITION OF POSSESSION title calling for the whole. It does not
A. WAYS OF ACQUIRING POSSESSION apply where possession is without title.
B. BY WHOM MAY POSSESSION BE
ACQUIRED Note: Possession in the eyes of law does
C. WHAT DO NOT AFFECT POSSESSION
not mean that a man has to have his
D. RULES TO SOLVE CONFLICTS OF
POSSESSION feet on every square meter of the
VIII. EFFECTS OF POSSESSION ground before it can be said that he is in
A. RIGHT TO BE PROTECTED IN HIS possession. The general rule is that the
POSSESSION possession and cultivation of a tract of
B. ENTITLEMENT TO FRUITS land under a claim of ownership of all, is
C. REIMBURSEMENT FOR EXPENSES a constructive possession of all, if the
D. GOOD FAITH (IN CONCEPT OF OWNER) remainder is not in adverse possession
IS EQUIVALENT TO TITLE of another. (Ramos v. Director of
IX. EFFECT OF POSSESSION IN THE CONCEPT
Lands)
OF OWNER
X. LOSS OF POSSESSION
A. ABANDONMENT 2. Animus possidendi: Intention to possess
B. ASSIGNMENT a. Animus possidendi is essential in
C. DESTRUCTION OR TOTAL LOSS OF possession. There is no possession if
THING OR THING GOES OUT OF the holder does not want to exercise the
COMMERCE rights of a possessor. Animus
D. POSSESSION BY ANOTHER FOR MORE possidendi is implied from the acts of
THAN 1 YEAR the possessor.
b. Animus possidendi may be contradicted
I. Definition and rebutted by evidence – to prove that
Article 523, Civil Code. Possession is the holding the person who is in possession, does
of a thing or the enjoyment of a right. not in fact exercise power or control and
does not intend to do so
Concept of Possession—
1. To possess, in a grammatical sense, means .
to have, to physically and actually occupy a
thing, with or without right. (Sanchez
Roman)

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II. Degrees of Possession Code, cannot and should not become

owners.
A. Mere holding or possession without title
whatsoever and in violation of the right
of the owner IV. Cases of Possession
 e.g. possession of a thief or usurper of
land A. Possession for Oneself, or Possession
 Here, both the possessor and the public Exercised in One’s Own Name and
know that the possession is wrongful. Possession in the Name of Another.
B. Possession with juridical title but not that Article 524, Civil Code. Possession may be
of ownership exercised in one's own name or in that of another.
 e.g. possession of a tenant, depository
agent, bailee trustee, lessee, antichretic Name under which possession may be
creditor. exercised—
 This possession is peaceably acquired. 1. In one’s own name – the fact of possession 169
 This degree of possession will never and the right to such possession is found in
PROPERTY
ripen into full ownership as long as there the same person.
is no repudiation of concept under which 2. In the name of another – the one in actual
property is held. possession is without any right of his own,
but is merely an instrument of another in the
C. Possession with just title or title exercise of the latter’s possession.
sufficient to transfer ownership, but not
from the true owner Kinds of possession in the name of
 e.g. possession of a vendee from a another—
vendor who pretends to be the owner. 1. Necessary – arises by operation of law
 This degree of possession ripens into  e.g. representatives who exercise
full ownership by lapse of time. possession in behalf of a conceived
child, juridical persons, persons not sui
D. Possession with a just title from the true juris and the conjugal partnership
owner. 2. Voluntary – effected through the mutual
 This is possession that springs from consent of the parties
ownership.  e.g. agents or administrators appointed
by the owner or possessor.
III. Classes of Possession  Third person may also voluntary
exercise possession in the name of
The Old Civil Code had a distinction between another, but it does not become
natural possession and civil possession. This effective unless ratified by the person in
distinction has been abolished by the present whose name it is exercise.
Code.
B. Possession in the Concept of an Owner,
A. Natural Possession and Possession in the Concept of a
Physical holding of a thing (detention); all Holder with the Ownership Belonging to
retention or enjoyment of a thing or right. Another
B. Civil Possession
Article 525, Civil Code. The possession of things
Natural possession coupled with the
or rights may be had in one of two concepts:
intention of acquiring ownership of the thing
either in the concept of owner, or in that of the
or right.
holder of the thing or right to keep or enjoy it,
the ownership pertaining to another person.
The following may be said to have civil
possession:
1. Possession in Concept of Holder:
a. The owner himself, who holds and
 One who possesses as a mere holder,
enjoys the things belonging to him.
not in the concept of owner,
b. The possessor who is not the owner but
acknowledges in another a superior right
has the intention to act as such, and is
which he believes to be ownership,
considered as such by others.
whether his belief be right or wrong.
c. The thief and the usurper who, in spite
 e.g. tenant, usufructuary, borrower in
of their intention and the fact that they
commodatum.
are civil possessors according to the

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2. Possession in Concept of Owner:  It implies freedom from knowledge and

 May be exercised by the owner himself circumstances which ought to put a
or one who claims to be so. person on inquiry.
 When a person claims to be the owner  The belief of a possessor that he is the
of a thing, whether he believes so or not, owner of the thing must be based upon
acting as an owner, and performing acts the title or mode of acquisition, such as
of ownership, and he is or may be a sale, a donation, inheritance or other
considered as the owner by those who means of transmitting ownership; for
witness his exercise of proprietary without this, there can be no real, well-
rights, then he is in the possession of an grounded belief of one’s ownership.
owner. This is the kind of possession  Error in the application of the law, in the
that ripens into ownership under Article legal solutions that arise from such
540, when such possession is public, application, in the appreciation of legal
peaceful and uninterrupted (see Art. consequence of certain acts, and in the
1118). interpretation of doubtful provisions or
doctrines, may properly serve as basis 170
Effects of Possession in Concept of an for good faith.
PROPERTY
Owner—  A misconception of the law, no matter
a. Converted into ownership by the lapse how honest cannot have the effect of
of time necessary for prescription making one a possessor in good faith,
b. Possessor can bring all actions when he does not hold a title valid in
necessary to protect his possession, form or a deed sufficient in terms to
availing himself of any action which an transfer property.
owner can bring, except accion
revindicatoria which is substituted by 2. Possessor in bad faith – one who knows
accion publiciana. his title is defective
c. He can ask for the inscription of  Only personal knowledge of the flaw in
possession in the registry of property the title or mode of acquisition can make
d. Upon recovering possession from one him a possessor in bad faith for bad faith
who has unlawfully deprived him of it, he is not transmissible from one person to
can demand fruits and damages another.
e. He can do on the thing possessed  Mistake upon a doubtful or difficult
everything that the law authorizes an question of law as a basis of good faith
owner to do; he can exercise the right of  Mistake or ignorance of the law, by
pre-emption and is entitled to the itself, cannot become the basis of good
indemnity in case of appropriation. faith. What makes the error or ignorance
a basis of good faith is the presence of
C. Possession in Good Faith and an apparent “doubt” or “difficulty” in the
Possession in Bad Faith law. In other words, the law is complex,
ambiguous, or vague such that it is open
Article 526, Civil Code. He is deemed a possessor to two or more interpretations.
in good faith who is not aware that there exists in his  When the ignorance of the law is gross
title or mode of acquisition any flaw which and inexcusable, as when a person of
invalidates it. average intelligence would know the
law, such ignorance cannot be the basis
He is deemed a possessor in bad faith who
possesses in any case contrary to the foregoing. of good faith. Otherwise, the intendment
of Article 3 which states that, “Ignorance
Mistake upon a doubtful or difficult question of law of the law excuses no one from
may be the basis of good faith. compliance therewith,” will be defeated.
1. Possessor in good faith – one who is V. What Things May be Possessed

unaware that there exists a flaw which
invalidates his acquisition of the thing. Article 530, Civil Code. Only things and rights
 Good faith – consists in the possessor’s which are susceptible of being appropriated may be
belief that the person from whom he the object of possession.
received a thing was the owner of the
same and could convey his title. Not all things susceptible of appropriation can be
the object of prescription (See Art. 1113)

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VI. What May Not Be Possessed by tranferee the things which are being
Private Persons transferred
1. Res Communes 3. By execution of proper acts under legal
2. Property of Public Dominion formalities
3. Right under discontinuous and/or non-  This mode of acquiring possession
apparent easement refers to juridical acts or the acquisition
of possession by sufficient title
VII. Acquisition of Possession evidenced by the performance of
required formalities.
A. Ways of Acquiring Possession  Examples:
 Donations
Article 531, Civil Code. Possession is acquired by  Succession
the material occupation of a thing or the exercise of  Contracts (like a sale with right to
a right, or by the fact that it is subject to the action of repurchase)
our will, or by the proper acts and legal formalities  Judicial possession 171
established for acquiring such right.  Execution of judgments
PROPERTY
 Execution and registration of public
1. By material occupation of the thing instruments
 “Material occupation” – occupation,  Inscription of possessory information
under this provision, is used in its titles
ordinary meaning or general sense and  The execution of the required formalities
not in its technical meaning under Article is equivalent to delivery of the property
712, which defines occupation as a subject thereof.
mode of acquiring ownership.
Possession acquired by material B. By Whom May Possession Be Acquired
occupation is only possession as a fact,
not the legal right of possession. Article 532, Civil Code. Possession may be
 Constructive delivery is considered as acquired by the same person who is to enjoy it, by
an equivalent of material occupation in his legal representative, by his agent, or by any
two situations where such occupation is person without any power whatever: but in the last
essential to the acquisition of case, the possession shall not be considered as
possession: acquired until the person in whose name the act of
 Tradicion brevi manu – takes place possession was executed has ratified the same,
without prejudice to the juridical consequences of
when one who possess a thing by
negotiorum gestio in a proper case.
title other than ownership, continues
to possess the same under a new
Possession may be acquired by—
title, that of ownership.
1. by the same person
 Tradicion constitutum possessorium
2. by his legal representative
– takes place when the owner
3. by his agent
alienates the thing, but continues to
4. by any person without any power
posses the same under a different
whatsoever but subject to ratification,
title.
without prejudice to proper case or
negotiorum gestio (Arts. 2144, 2149, 2150)
2. By subjection to the action of one’s will
5. qualifiedly, minors and incapacitated
 This mode of acquiring possession
persons
refers more to the right of possession
than to possession as a fact. The “action
By the same person—
of our will” must be juridical, in the sense
Elements of personal acquisition:
that it must be according to law.
1. Must have the capacity to acquire
 This includes the following kinds of
possession
constructive delivery:
2. Must have the intent to possess
 Tradicion symbolica – effected by
3. The possibility to acquire possession must
delivering some object or symbol
be present.
placing the thing under the control of
the transferee
 Tradicion longa manu – effected by
the transferor pointing out to the

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By his legal representative— the advantages of the same shall be liable for
Requisites of acquisition through another: obligations incurred in his interest, and shall
1. That the representative or agent has the reimburse the officious manager for the necessary
intention to acquire the thing or exercise the and useful expenses and for the damages which the
latter may have suffered in the performance of his
right for another, and not for himself
duties.
2. That the person for whom the thing has
been acquired or the right exercised, has the The same obligation shall be incumbent upon him
intention of possessing such thing or when the management had for its purpose the
exercising such right prevention of an imminent and manifest loss,
although no benefit may have been derived.
Note:
 Bad faith is personal and Qualifiedly, minors and incapacitated
intransmissible. Its effects must be persons—
therefore, be suffered only by the person Article 535, Civil Code. Minors and incapacitated
who acted in bad faith; his heir should persons may acquire the possession of things; but
not be saddled with the consequences they need the assistance of their legal 172
 Good faith can only benefit the person representatives in order to exercise the rights which
PROPERTY
from the possession arise in their favor.
who has it; and the good faith of the heir
cannot erase the effects of bad faith of
 Incapacitated – all those who do not have
his predecessor.
the capacity to act (insane, lunatic, deaf-
Article 534, Civil Code. On who succeeds by mutes who cannot read and write,
hereditary title shall not suffer the consequences of spendthrifts and those under civil
the wrongful possession of the decedent, if it is not interdiction)
shown that he was aware of the flaws affecting it;  Object of possession – things only, not
but the effects of possession in good faith shall not rights.
benefit him except from the date of the death of the  Method of acquisition – material occupation;
decedent. acquisition by means for which the
incapacitated person has the capacity, such
By any person without any power as acquisition by succession, testate or
whatsoever but subject to ratification, intestate, or by donations propter nuptias,
without prejudice to proper case or pure and simple donations
negotiorum gestio (Arts. 2144, 2149, 2150)—
Article 2144, Civil Code. Whoever voluntarily takes C. What Do Not Affect Possession
charge of the agency or management of the
business or property of another, without any power Article 537, Civil Code. Acts merely tolerated, and
from the latter, is obliged to continue the same until those executed clandestinely and without the
the termination of the affair and its incidents, or to
knowledge of the possessor of a thing, or by
require the person concerned to substitute him, if the violence, do not affect possession.
owner is in a position to do so. This juridical relation
does not arise in either of these instances:
1. When the property or business is not 1. Acts merely tolerated
neglected or abandoned;  Those which by reason of
2. If in fact the manager has been tacitly neighborliness or familiarity, the owner
authorized by the owner. of property allows his neighbor or
another person to do on the property;
In the first case, the provisions of Articles 1317,  Those particular services or benefits
1403, No. 1, and 1404 regarding unauthorized which one’s property can give to another
contracts shall govern.
without material injury or prejudice to the
In the second case, the rules on agency in Title X of
owner, who permits them out of
this Book shall be applicable. friendship or courtesy
 Acts of little disturbances which a
Article 2149, Civil Code. The ratification of the person, in the interest of neighborliness
management by the owner of the business produces or friendly relations permits others to do
the effects of an express agency, even if the on his property, although continued for a
business may not have been successful. long time, no right will be acquired by
prescription
Article 2150, Civil Code. Although the officious
management may not have been expressly ratified,
the owner of the property or business who enjoys
Note: Permissive use merely tolerated by
the possessor cannot affect possession

lOMoARcPSD|3291925
and cannot be the basis of acquisitive General Rule—

prescription. Possession to constitute Possession cannot be recognized in two
the foundation of prescriptive right, must different personalities, except in cases of co-
be possession under claim of title, it possession by co-possessors without conflict of
must be adverse. (Cuaycong v. claims of interest.
Benedicto)
In case of conflicting possession –
2. Acts executed clandestinely and without preference is given to—
the knowledge of the possessor 1. Present possessor or actual possessor
2. If there are two or more possessors, the one
Article 1108, Civil Code. Possession has to be in longer in possession
the concept of an owner, public, peaceful and 3. If the dates of possession are the same, the
uninterrupted. one who presents a title
4. If all conditions are equal, the thing shall be
3. Acts of violence as long as the placed in judicial deposit pending
possessor objects thereto (i.e. he files a determination of possession or ownership 173
case) through proper proceedings
PROPERTY
Article 536, Civil Code. In no case may possession
be acquired through force or intimidation as long as
there is a possessor who objects thereto. He who VIII. Effects of Possession
believes that he has an action or a right to deprive
another of the holding of a thing, must invoke the aid A. Right to be Protected in His Possession
of the competent court, if the holder should refuse to
deliver the thing. In general, every possessor has a right to be
respected in his possession; if disturbed therein,
 Possession acquired by force, not only possessor has a right to be protected in or
when one forcibly takes away the restored to said possession.
property from another, but also when
one occupied the property in the Article 539, Civil Code. Every possessor has a
property in the absence of another, and right to be respected in his possession; and should
repels the latter upon his return. he be disturbed therein he shall be protected in or
 Force may be actual or threatened; and restored to said possession by the means
may be employed by the possessor established by the laws and the Rules of Court.
himself, or by another for him, and
against any possessor. A possessor deprived of his possession through
 Effect on Possession: Acts mentioned forcible entry may within ten days from the filing of
the complaint present a motion to secure from the
do not constitute true possession. They
competent court, in the action for forcible entry, a
do not interrupt the period of prescription writ of preliminary mandatory injunction to restore
nor affect the rights to the fruits. him in his possession. The court shall decide the
 For all purposes that may be favorable motion within thirty (30) days from the filing thereof.
to the true possessor, his possession is
not considered interrupted. “Every possessor” – includes all kinds of
possession, from that of an owner to that of a
D. Rules to Solve Conflicts of Possession mere holder, except that which constitutes a
crime.
Article 538, Civil Code. Possession as a fact
cannot be recognized at the same time in two Reason for the rule: To prevent anyone from
different personalities except in the cases of co- taking the administration of justice into his own
possession. Should a question arise regarding the
fact of possession, the present possessor shall be
hands. Even the owner cannot forcibly eject the
preferred; if there are two possessors, the one possessor, but must resort to the courts.
longer in possession; if the dates of the possession
are the same, the one who presents a title; and if all Actions to Recover Possession—
these conditions are equal, the thing shall be placed 1. Summary proceedings – Forcible entry and
in judicial deposit pending determination of its Unlawful detainer
possession or ownership through proper
proceedings. Article 1674, Civil Code. In ejectment cases where
an appeal is taken the remedy granted in Article
539, second paragraph, shall also apply, if the
higher court is satisfied that the lessee's appeal is

lOMoARcPSD|3291925
frivolous or dilatory, or that the lessor's appeal is It is only the conviction of ownership externally
prima facie meritorious. The period of ten days manifested, which generates ownership.
referred to in said article shall be counted from the
time the appeal is perfected. Acts of possessory character done by virtue of a
license or mere tolerance on the part of the real
 Plaintiff may ask for writ of preliminary owner are not sufficient and will not confer title
mandatory injunction within 10 days by prescription or adverse possession.
from filing of complaint in forcible entry
(Art. 539). The same writ is available in The following cannot acquire title by prescription:
unlawful detainer actions upon appeal. 1. Lessees, trustees, pledges, tenants on
(Art. 1674) shares or planters and all those who hold in
Forcible entry and Unlawful the name or representation of another;
Detainer 2. Mere holders placed in possession of the
 Rule 70, Rules of Court gives any property by the owner, such as agents,
person deprived of the possession of employees;
any land or building by force, 3. Those holding in a fiduciary character, like 174
intimidation, strategy, or stealth at any receivers, attorneys, depositaries and
PROPERTY
time within one year after such unlawful antichretic creditors
deprivation, the action of forcible entry. 4. Co-owner, with regard to common property;
 “by force, intimidation, strategy, or Except: When he holds the same adversely
stealth” – includes every situation or against all of them with notice to them the
condition under which one person can exclusive claim of ownership
wrongfully enter upon real property and
exclude another, who has had prior Article 542, Civil Code. The possession of real
possession therefrom. property presumes that of the movables therein, so
long as it is not shown or proved that they should be
2. Accion Publiciana (based on superior right excluded.
of possession, no ownership)
 Action for the recovery of possession of Refers to all kinds of possession, whether in
real property upon mere allegation and concept of owner or not, in good faith or in bad
proof of a better title thereto faith, and in one’s own name or another’s –in
reference to things only, NOT rights.
3. Accion Reinvindicatoria (recovery of
possession based on a claim of ownership) Article 543, Civil Code. Each one of the
 An action setting up title and right to participants of a thing possessed in common shall
possession be deemed to have exclusively possessed the part
 Not barred by a judgment in an action which may be allotted to him upon the division
thereof, for the entire period during which the co-
for forcible entry and unlawful detainer
possession lasted. Interruption in the possession of
the whole or a part of a thing possessed in common
4. Action for Replevin (possession or shall be to the prejudice of all the possessors.
ownership for movable property) However, in case of civil interruption, the Rules of
Court shall apply.
Lawful Possessor Can Employ Self-help—
Article 429, Civil Code. The owner or lawful

possessor of a thing has the right to exclude any B. Entitlement to fruits – possessor in good
person from the enjoyment and disposal thereof. For faith/bad faith (Art. 544, 549)
this purpose, he may use such force as may be
reasonably necessary to repel or prevent an actual
Article 544, Civil Code. A possessor in good faith is
or threatened unlawful physical invasion or
entitled to the fruits received before the possession
usurpation of his property
is legally interrupted.
Article 540, Civil Code. Only the possession
Natural and industrial fruits are considered received
acquired and enjoyed in the concept of owner can
from the time they are gathered or severed.
serve as a title for acquiring dominion.
Civil fruits are deemed to accrue daily and belong to
To consolidate title by prescription, the the possessor in good faith in that proportion.
possession must be under claim of ownership,
and it must be peaceful, public and uninterrupted

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Provision is based on the following reasons  It includes every presentation required

of equity— of the possessor by reason of
1. The fruits received are generally used for possession of the thing, whether it
the consumption and livelihood of the constitutes a real right or not.
possessor, and his life and expenses may  e.g. Taxes, contributions in favor of the
have been regulated in view of such fruits government
2. The owner has been negligent in not
discovering or contesting the possession of When fruits are insufficient—
the possessor; it would be unjust after the There should only be reimbursement of
possessor has been thus allowed to rely on expenses; but each possessor should suffer a
the efficacy of the title, to require him to proportionate reduction due to the insufficiency
return the fruits he has received on the basis of the harvest.
of that title.
3. Between the owner, who has abandoned his
property and left it unproductive, and the C. Reimbursement for Expenses—
possessor, who has contributed to the social Possessor in Good Faith/Bad Faith 175
wealth, by the fruits he has produced, the
PROPERTY
law leans toward the latter Article 546, Civil Code. Necessary expenses shall
be refunded to every possessor; but only the
Right of the possessor in good faith— possessor in good faith may retain the thing until he
Only limited to the fruits of the thing. He must has been reimbursed therefor.
restore the fruits received from the time such
Useful expenses shall be refunded only to the
good faith ceased. He has no rights to the possessor in good faith with the same right of
objects which do not constitute fruits. retention, the person who has defeated him in the
possession having the option of refunding the
Legal interruption of possession in good amount of the expenses or of paying the increase in
faith— value which the thing may have acquired by reason
Takes place when an action is filed against thereof.
him—from the time he learns of the complaint,
from the time he is summoned to the trial. Necessary Expenses—
1. Imposed by the thing itself and have no
Article 545, Civil Code. If at the time the good faith relation to the desire or purpose of the
ceases, there should be any natural or industrial possessor; hence they are reimbursed,
fruits, the possessor shall have a right to a part of whatever may be the juridical character of
the expenses of cultivation, and to a part of the net the person who advanced them.
harvest, both in proportion to the time of the 2. They are the “cost of living” for the thing and
possession.
must be reimbursed to the one who paid
The charges shall be divided on the same basis by them, irrespective of GF or BF. Only a
the two possessors. possessor in GF is entitled to retain the thing
until he is reimbursed
The owner of the thing may, should he so desire, 3. Those imposed for the preservation of the
give the possessor in good faith the right to finish the thing. They are not considered
cultivation and gathering of the growing fruits, as an improvements; they do not increase the
indemnity for his part of the expenses of cultivation value of the thing, but merely prevent them
and the net proceeds; the possessor in good faith from becoming useless.
who for any reason whatever should refuse to
accept this concession, shall lose the right to be
indemnified in any other manner.
Useful Expenses—
1. Incurred to give greater utility or productivity
Old Civil Code New Civil Code to the thing
Possessor in GF was 2. e.g. Wall surrounding an estate, an irrigation
reimbursed the entire Proportionate division of system, planting in an uncultivated land, a
expense of cultivation expenses of production fishpond, an elevator in the building, electric
incurred by him lighting system
3. They are reimbursed only to the possessor
 “Charges” – Those which are incurred, in GF as a compensation or reward for him.
not on the thing itself but because of it. Possessor in BF cannot recover such
 It is borne by the two possessors in expenses
proportion to their respective
possession.

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Article 547, Civil Code. If the useful improvements

can be removed without damage to the principal Article 549, Civil Code. The possessor in bad faith
thing, the possessor in good faith may remove them, shall reimburse the fruits received and those which
unless the person who recovers the possession the legitimate possessor could have received, and
exercises the option under paragraph 2 of the shall have a right only to the expenses mentioned in
preceding article. paragraph 1 of Article 546 and in Article 443. The
expenses incurred in improvements for pure luxury
Article 548, Civil Code. Expenses for pure luxury or or mere pleasure shall not be refunded to the
mere pleasure shall not be refunded to the possessor in bad faith, but he may remove the
possessor in good faith; but he may remove the objects for which such expenses have been
ornaments with which he has embellished the incurred, provided that the thing suffers no injury
principal thing if it suffers no injury thereby, and if his thereby, and that the lawful possessor does not
successor in the possession does not prefer to prefer to retain them by paying the value they may
refund the amount expended. have at the time he enters into possession..
Article 550, Civil Code. The costs of litigation over

Expenses for Luxury— the property shall be borne by every possessor. 176
1. They do not affect the existence or the
PROPERTY
Article 550, Civil Code. Improvements caused by
substance of the thing itself, but only the nature or time shall always inure to the benefit of the
comfort, convenience or enjoyment of the person who has succeeded in recovering
possessor. They are not the subject of possession
reimbursement, because the law does not
compensate personal whims or caprices.  Includes all the natural accessions
2. e.g. Opening of a garden, placing fountains referred to by articles 457-465, and all
and statues in it, adorning the ceilings those which do not depend upon the will
paintings, and the walls with reliefs of the possessor.
 e.g. widening of the streets, rising of
Useful Expenses Expenses for Luxury fountains of fresh or mineral water,
Those which increase the increase of foliage of trees
Those which merely
income derived from the
embellished the thing
thing
Result: Increase in the
products, either Liability for loss or deterioration of property
absolutely, or because of by possessor in bad faith—
Result: Benefit or
greater facilities for
advantage is only for the Article 552, Civil Code. A possessor in good faith
producing them
convenience of definite shall not be liable for the deterioration or loss of the
possessors thing possessed, except in cases in which it is
Includes expenses
resulting in real benefit or proved that he has acted with fraudulent intent or
advantage to the thing negligence, after the judicial summons.
The resulting utility is The utility is for the
essential and absolute, to possessor or particular A possessor in bad faith shall be liable for
all who may have the persons alone and is deterioration or loss in every case, even if caused by
thing. therefore accidental. a fortuitous event.
Possessor in GF Possessor in BF
Entitled to the fruits while possession is in GF Must reimburse the legitimate possessor
Fruits Received
and before legal interruption (544) (549)
Entitled to part of the expenses of cultivation,
and to a part of the net harvest, in proportion
to the time of the possession.
Must reimburse the legitimate possessor
Pending Fruits
Indemnity may be, at the owner’s option, (549)
1. In money, OR
2. By allowing full cultivation and gathering
of the fruits (545)
Must share with the legitimate possessor, in
Charges proportion to the time of the possession (545) Same as with GF (545)
Right to reimbursement and retention in the

Necessary
meantime (546) Reimbursement only (546)
Expenses

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Right of retention until reimbursed; Owner’s

option to reimburse him either for expenses
or for increase in value which the thing may
have acquired (546)
No right to reimbursement and no right of
Useful Expenses
removal (547)
Limited right of removal – should not damage
principal and owner does not exercise option
of paying the expenses or increase in value
(547)
Ornamental
Limited right of removal (548) Limited right of removal (549)
Expenses
Deterioration of No liability unless due to fraud or negligence
Liable in every case (552)
Loss after becoming in BF (552)
Costs of Litigation Bears cost (550) Bears cost (550)
D. Possession of Movable Acquired in Good  Basis: Possession is presumed

177
Faith (in concept of owner) is Equivalent ownership, unless the contrary is
PROPERTY
to Title (Art. 559) proved. This presumption is prima facie
and it prevails until contrary is proved.
Article 559, Civil Code. The possession of movable
property acquired in good faith is equivalent to a  Just title – that which is legally sufficient
title. Nevertheless, one who has lost any movable or to transfer the ownership or the real right
has been unlawfully deprived thereof may recover it to which it relates.
from the person in possession of the same.
If the possessor of a movable lost or which the  For the purposes of prescription, there is
owner has been unlawfully deprived, has acquired it just title when the adverse claimant
in good faith at a public sale, the owner cannot came into possession of the property
obtain its return without reimbursing the price paid through one of the modes recognized by
therefor law for the acquisition of ownership or
other real rights, but the grantor was not
Possessor has actual title which is defeasible the owner or could not transmit any
only by true owner. right. (Art. 1129)
Requisites of Title—  Exception

1. Possession in GF
2. The owner has voluntarily parted with the Article 1131, Civil Code. For the purposes of
possession of the thing prescription, just title must be proved; it is never
3. The possession is in the concept of an presumed.
owner
3. Possessor may bring all actions necessary
When the owner can recover— to protect his possession except
1. Has lost the thing revindicatoria
2. Has been unlawfully deprived thereof
4. May employ self help under Art. 429
5. Possessor may ask for inscription of such

IX. Effects of Possession in the Concept
real right of possession in the registry of
of Owner property
1. Possession may be lapsed of time ripen into 6. Has right to the fruits and reimbursement of
full ownership, subject to certain exceptions. expenses (assuming he is possessor in
good faith)
2. Presumption of just title and cannot be
obliged to show or prove it (Art. 541); 7. Upon recovery of possession which has
exception (Art. 1131) unlawfully deprived may demand fruits and
damages
Article 541, Civil Code. A possessor in the concept
of owner has in his favor the legal presumption that 8. Generally, he can do on the things
he possesses with a just title and he cannot be
possessed everything that the law
obliged to show or prove it.

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authorizes the owner to do until he is ousted Of non-interruption of possession in favor of

by one who had a better right. present possessor who proves possession
at a previous time until the contrary is
9. Possession in good faith and possession in proved—
bad faith (Art. 528)
 Mistake upon doubtful or difficult Article 554, Civil Code. A present possessor who
question of law as a basis of good faith shows his possession at some previous time, is
(Art. 526, par 3) presumed to have held possession also during the
intermediate period, in the absence of proof to the
contrary.
X. Presumption in Favor of the Article 1120, Civil Code. Possession is interrupted

Possessor—for Acquisitive for the purposes of prescription, naturally or civilly.
Prescription
Article 1121, Civil Code. Possession is naturally
interrupted when through any cause it should cease
Of good faith until contrary is proved— for more than one year. 178
PROPERTY
Article 527, Civil Code. Good faith is always The old possession is not revived if a new
presumed, and upon him who alleges bad faith on possession should be exercised by the same
the part of a possessor rests the burden of proof. adverse claimant.
 Presumption is only juris tantum because Article 1122, Civil Code. If the natural interruption
possession is the outward sign of is for only one year or less, the time elapsed shall be
counted in favor of the prescription.
ownership. Unless such proof of bad faith is
presented, the possessor will be held to be Article 1123, Civil Code. Civil interruption is
in good faith. produced by judicial summons to the possessor.
 So long as the possessor is not actually
aware of any defect invalidating his title, he Article 1124, Civil Code. Judicial summons shall be
is deemed a possessor in good faith. deemed not to have been issued and shall not give
rise to interruption:
Of continuity of initial good faith in which 1. If it should be void for lack of legal
possession was commenced of possession solemnities;
2. If the plaintiff should desist from the
in good faith does not lose this character
complaint or should allow the proceedings
except in case and from the moment to lapse;
possessor became aware or is not unaware 3. If the possessor should be absolved from
of improper or wrongful possession— the complaint.
Article 528, Civil Code. Possession acquired in In all these cases, the period of the interruption shall
good faith does not lose this character except in the be counted for the prescription
case and from the moment facts exist which show
that the possessor is not unaware that he possesses Other presumptions with respect to specific
the thing improperly or wrongfully. properties of property rights—
1. Of extension of possession of real property
 Good faith ceases from the date of the to all movables contained therein so long as
summons to appear at the trial in is not shown that they should be
 Good faith ceases when there is: excluded; exceptions.
a. Extraneous evidence
b. Suit for recovery of the property by the Article 426, Civil Code. Whenever by provision of
true owner the law, or an individual declaration, the expression
"immovable things or property," or "movable things
Of enjoyment of possession in the same or property," is used, it shall be deemed to include,
character in which possession was required respectively, the things enumerated in Chapter 1
until contrary is proved— and Chapter 2.
Whenever the word "muebles," or "furniture," is used

Article 529, Civil Code. It is presumed that
alone, it shall not be deemed to include money,
possession continues to be enjoyed in the same
credits, commercial securities, stocks and bonds,
character in which it was acquired, until the contrary
jewelry, scientific or artistic collections, books,
is proved.
medals, arms, clothing, horses or carriages and their
accessories, grains, liquids and merchandise, or
other things which do not have as their principal

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object the furnishing or ornamenting of a building,  It is the opposite occupation. It consists

except where from the context of the law, or the of the voluntary renunciation of all the
individual declaration, the contrary clearly appears. rights which the person may have in a
thing, with intent to lose such a thing. To
2. Non-interruption of possession of hereditary be effective, it must be necessary that it
property be made by a possessor in the concept
of an owner.
Article 553, Civil Code. The possession of  It must be clearly appear that the spes
hereditary property is deemed transmitted to the heir recuperandi is gone and the animus
without interruption and from the moment of the
revertendi is finally given up.
death of the decedent, in case the inheritance is
accepted.
B. Assignment, either onerous or gratuitous
One who validly renounces an inheritance is  Complete transmission of ownership
deemed never to have possessed the same. rights to another person, gratuitously or
onerously
Article 1078, Civil Code. Where there are two or 179
more heirs, the whole estate of the decedent is, C. Possession by another; if possession
PROPERTY
before its partition, owned in common by such heirs, has lasted longer than one year; real
subject to the payment of debts of the deceased.
right of possession not lost after 10
years - (Subject to Article 537)
3. Of just title in favor of possessor in concept Article 537, Civil Code. Acts merely tolerated, and
of owner those executed clandestinely and without the
knowledge of the possessor of a thing, or by
Article 541, Civil Code. A possessor in the concept violence, do not affect possession.
of owner has in his favor the legal presumption that
he possesses with a just title and he cannot be  Possession that is lost here refers only
obliged to show or prove it.
to possession as a fact (de facto), not
Article 1141, Civil Code. Real actions over the legal right of possession (de jure). It
immovables prescribe after thirty years. is the possession that the new
possessor acquires.
This provision is without prejudice to what is  Real right of possession is lost only after
established for the acquisition of ownership and 10 years.
other real rights by prescription.  After one year, the actions for forcible
entry and unlawful detainer can no
longer be brought. But accion publiciana
XI. Possesion May Be Lost By may still be instituted to recover
possession de jure
Article 555, Civil Code. A possessor may lose his
possession: Article 553, Civil Code. One who recovers
1. By the abandonment of the thing; possession shall not be obliged to pay for
improvements which have ceased to exist at the
2. By an assignment made to another either by time he takes possession of the thing.
onerous or gratuitous title;
 The improvements, having ceased to
3. By the destruction or total loss of the thing, or exist, the lawful possessor or owner
because it goes out of commerce; cannot benefit from them; hence he
should not pay for them.
4. By the possession of another, subject to the  Necessary expenses are not considered
provisions of Article 537, if the new possession
improvements, and even if the object for
has lasted longer than one year. But the real
right of possession is not lost till after the lapse
which they were incurred no longer
of ten years. exists at the time of entry upon
possession, the lawful possessor or
A. Abandonment owner has to pay for them.
 Includes the giving up possession, and
not necessarily of ownership by every
possessor. Article 557, Civil Code. The possession of
immovables and of real rights is not deemed lost, or
transferred for purposes of prescription to the
prejudice of third persons, except in accordance with

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the provisions of the Mortgage Law and the Land

Registration laws.
 Third parties relying on the Registry of

Property are privileged to consider the
registered possessors or owners as still
such in spite of loss
Article 558, Civil Code. Acts relating to possession,

executed or agreed to by one who possesses a
thing belonging to another as a mere holder to enjoy
or keep it, in any character, do not bind or prejudice
the owner, unless he gave said holder express
authority to do such acts, or ratifies them
subsequently.
180
Rules for Loss of Movables:
PROPERTY
Article 556, Civil Code. The possession of
movables is not deemed lost so long as they remain
under the control of the possessor, even though for
the time being he may not know their whereabouts.
 “Control” – judicial control or right, or

that the thing remains in one’s patrimony
Article 560, Civil Code. Wild animals are

possessed only while they are under one's control;
domesticated or tamed animals are considered
domestic or tame if they retain the habit of returning
to the premises of the possessor.
Kinds of Animals:
1. Wild—those which live naturally
independent of man
2. Domesticated—those which, being wild by
nature, have become accustomed to
recognize the authority of man. When they
observe this custom, they are placed in the
same category as domestic and when they
lose it, they are considered as wild.
3. Domestic or Tame—those which are
bornand reared ordinarily under the control
and care of man; they are under the
ownership of man, and do not become res
nullius unless they are abandoned.

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CIVIL LAW REVIEWER Chapter VII. USUFRUCT
 To prevent abuse, which is frequent;

Chapter VII. Usufruct  To prevent impairment.
I. CONCEPT
II. CHARACTERISTICS
c. Exception: In an abnormal usufruct,
III. DISTINGUISHED FROM LEASE AND alteration is allowed
SERVITUDE 3. Usufruct is extinguished by the death of the
IV. CLASSIFICATION usufructuary
V. RIGHTS OF USUFRUCTUARY a. Natural because a contrary intention
VI. OBLIGATIONS OF USUFRUCTUARY may prevail
A. AT THE BEGINNING OF THE USUFRUCT
B. DURING THE USUFRUCT
C. AT THE TIME OF THE TERMINATION OF III. Usufruct Distiguished from Lease
THE USUFRUCT and Servitude
VII. SPECIAL CASES
VIII. EXTINGUISHMENT Usufruct vs. Lease—
181
I. Concept Basis Usufruct Lease
PROPERTY
Article 562, Civil Code. Usufruct gives a right to By the nature of Always a real Quasi-real or
enjoy the property of another with the obligation of the right right personal right
preserving its form and substance, unless the title By the creator Need not be an
Owner
constituting it or the law otherwise provides. of the right owner
Active owner or
Passive owner
lessor who
Objects of Usufruct— who allows the
By the cause makes the
1. Independent Rights usufructuary to
lessee enjoy
 A servitude which is dependent on the enjoy the thing
the thing
tenement to which it attaches cannot be Generally
the object of usufruct covers all the Generally
By the extent of
2. Things utility of which covers a
enjoyment
 Non-consumable things the thing is particular utility
 Consumable things, but only as to their capable
value if appraised, or on an equal May be created May only be
quantity and quality if they were not by law, by will of created by the
By the origin
the parties, or will of the
appraised
by prescription parties
3. Unproductive things e.g. sterile or absolutely Pays for
unproductive land, or things for mere As regards Generally not
ordinary repairs
pleasure, such as promenades, statues or repairs and borne by a
and taxes on
paintings, even if they do not produce any taxes lessee
the fruits
utility.
Usufruct vs. Servitude—
II. Characteristics
Basis Usufruct Servitudes
May involve May only
Characteristics— As to the object real or personal involve real
1. It is a real right property property
2. Of temporary duration Covers all the
3. To derive all advantages from the thing due By the extent or Limited to a
uses of the
enjoyment particular use
to normal exploitation thing
Natural Characteristics— Similarities between Usufruct and

1. Includes only the right to use (jus utendi) Servitude—
and the right to the fruits (jus fruendi) Both are real rights, whether registered or not.
2. Usufructuary must preserve the form or 1. Both rights may be registered, provided that
substance of the thing the usufruct involves real property. All
a. Preservation is a natural requisite, not easements of course concerns real property.
essential because the title constituting it 2. Both may ordinarily be alienated or
or the law may provide otherwise transmitted in accordance with the
b. Reason for preserving form and formalities set by law.
substance –
 To prevent extraordinary
exploitation;

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IV. Classes of Usufruct determines the question of

necessity.
A. By Origin
B. By Person Enjoying Right of Usufruct
Article 563, Civil Code. Usufruct is constituted by
Article 564, Civil Code. Usufruct may be
law, by the will of private persons expressed in acts
inter vivos or in a last will and testament, and by constituted on the whole or a part of the fruits of the
prescription. thing, in favor of one more persons, simultaneously
or successively, and in every case from or to a
certain day, purely or conditionally. It may also be
1. Voluntary: created by the will of private constituted on a right, provided it is not strictly
persons personal or intransmissible.
a. By act inter vivos – such as contracts
and donations 1. Simple: only one usufructuary enjoys the
 By alienation of the usufruct property
 By retention of the usufruct 2. Multiple: several usufructuaries enjoy the 182
 Where a usufruct is constituted inter property
PROPERTY
vivos and for valuable consideration, a. Simultaneous: at the same time
the contract is unenforceable unless b. Successive: one after the other
in writing
b. By act mortis causa – such as testament Limitations on successive usufruct—
1. If usufruct is by donation, ALL donees must
2. Legal: as provided by law be alive.
Usufruct of parents over the property of Article 756, Civil Code. The ownership of property
unemancipated children (now limited to the may also be donated to one person and the usufruct
collectively daily needs of the family as per to another or others, provided all the donees are
the Family Code) living at the time of the donation.
Article 226, Family Code. The property of the 2. Fiduciary or first heir and the second heir
unemancipated child earned or acquired with his must be alive at the time of the death of the
work or industry or by onerous or gratuitous title testator.
shall belong to the child in ownership and shall be
devoted exclusively to the latter's support and Article 863, Civil Code. A fideicommissary
education, unless the title or transfer provides substitution by virtue of which the fiduciary or first
otherwise. heir instituted is entrusted with the obligation to
preserve and to transmit to a second heir the whole
The right of the parents over the fruits and income of or part of the inheritance, shall be valid and shall
the child's property shall be limited primarily to the take effect, provided such substitution does not go
child's support and secondarily to the collective daily beyond one degree from the heir originally instituted,
needs of the family. and provided further, that the fiduciary or first heir
and the second heir are living at the time of the
3. Mixed: created both by law and the acts of death of the testator.
persons
3. If by testamentary succession, there must
Article 565, Civil Code. The rights and obligations be only 2 successive usufructuaries, and
of the usufructuary shall be those provided in the both must be alive or at least already
title constituting the usufruct; in default of such title, conceived at the time of the testator’s death.
or in case it is deficient, the provisions contained in
the two following Chapters shall be observed.
Article 869, Civil Code. A provision whereby the
testator leaves to a person the whole or part of the
 The rights and duties of the usufructuary inheritance, and to another the usufruct, shall be
provided by law may be modified or valid. If he gives the usufruct to various persons, not
eliminated by the parties. simultaneously, but successively, the provisions of
 The title constituting the usufruct may Article 863 shall apply
validly authorize the usufructuary to
alienate the thing itself held in usufruct. C. By Object of Usufruct
 If the usufructuary is authorized to
alienate the thing in case of Article 564, Civil Code. Usufruct may be
necessity, it is the usufructuary who constituted on the whole or a part of the fruits of the
thing, in favor of one more persons, simultaneously

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certain day, purely or conditionally. It may also be 2. As to object

constituted on a right, provided it is not strictly a. Singular: only on particular property of
personal or intransmissible. the owner
b. Universal: pertains to the whole
1. Rights property;
a. Must not be strictly personal or
intransmissible. Article 598, Civil Code. If the usufruct be
b. Usufruct over a real right is by itself a constituted on the whole of a patrimony, and if at the
real right. time of its constitution the owner has debts, the
c. Right to receive present or future provisions of Articles 758 and 759 relating to
support cannot be the object of the donations shall be applied, both with respect to the
usufruct. maintenance of the usufruct and to the obligation of
the usufructuary to pay such debts.
2. Things The same rule shall be applied in case the owner is
a. Normal: involves non-consummable obliged, at the time the usufruct is constituted, to
things where the form and substance make periodical payments, even if there should be 183
are preserved no known capital.
PROPERTY
b. Abnormal or irregular
Article 595, Civil Code. The owner may construct
Article 574, Civil Code. Whenever the usufruct any works and make any improvements of which the
includes things which cannot be used without being immovable in usufruct is susceptible, or make new
consumed, the usufructuary shall have the right to plantings thereon if it be rural, provided that such
make use of them under the obligation of paying acts do not cause a diminution in the value of the
their appraised value at the termination of the usufruct or prejudice the right of the usufructuary.
usufruct, if they were appraised when delivered. In
case they were not appraised, he shall have the  A universal usufructuary must pay the
right to return at the same quantity and quality, or debts of the naked owner, if stipulated.
pay their current price at the time the usufruct  If there are no stipulations, the
ceases. usufructuary only has to pay when the
usufruct has been made in fraud of
 In reality, the usufruct is not upon creditors.
the consumable things themselves
which are delivered to the Article 758, Civil Code. When the donation
usufructuary, but upon the sum imposes upon the donee the obligation to pay the
representing their value or upon a debts of the donor, if the clause does not contain
quantity of things of the same kind any declaration to the contrary, the former is
and quality. understood to be liable to pay only the debts which
 The usufructuary, in effect, becomes appear to have been previously contracted. In no
the owner of the things in usufruct, case shall the donee be responsible for the debts
exceeding the value of the property donated, unless
while the grantor becomes a mere
a contrary intention clearly appears.
creditor entitled to the return of the
value or of the things of the same Article 759, Civil Code. There being no stipulation
quantity and quality (as if converted regarding the payment of debts, the donee shall be
into a simple loan) responsible therefor only when the donation has
been made in fraud of creditors.
D. By the Extent of the Usufruct The donation is always presumed to be in fraud of

creditors, when at the time thereof the donor did not
Article 564, Civil Code. Usufruct may be reserve sufficient property to pay his debts prior to
constituted on the whole or a part of the fruits of the the donation.
thing, in favor of one more persons, simultaneously
certain day, purely or conditionally. It may also be E. By the Terms of the Usufruct
constituted on a right, provided it is not strictly
personal or intransmissible. 1. Pure: no terms or conditions
2. Conditional: either suspensive or resolutory
1. As to the fruits 3. With a term or period
a. Total: all consumed by the usufruct a. Ex die: from a certain day
b. Partial: only on certain aspects of the b. In diem: up to a certain day
usufruct’s fruits c. Ex die in diem: from a certain day up to
a certain day

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V. Rights of Usufructuary which it is found.
Nevertheless, when the discovery is made on the

A. As to Thing and Its Fruits property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall
1. Right to enjoy the property to the same be allowed to the finder. If the finder is a trespasser,
extent as the owner, but only with respect to he shall not be entitled to any share of the treasure.
its use and the receipt of its fruits.
If the things found be of interest to science of the
Article 566, Civil Code. The usufructuary shall be arts, the State may acquire them at their just price,
entitled to all the natural, industrial and civil fruits of which shall be divided in conformity with the rule
the property in usufruct. With respect to hidden stated.
treasure which may be found on the land or
tenement, he shall be considered a stranger. Fruits pending at the Fruits pending at the
beginning of the time of termination of
usufruct the usufruct
 Usufructuary cannot extract products
which do not constitute fruits because
Belong to the Belong to the naked 184
usufructuary owner
PROPERTY
he is bound to preserve the form and Without need to The owner shall
substance of the thing. reimburse the expenses reimburse to the
 Usufructuary rights may be transferred, to the owners usufructuary ordinary
assigned or otherwise disposed of by cultivation expenses
the usufructuary. from the proceeds of the
 Not exempt from execution and can be fruits (not to exceed the
sold at public auction. value of the fruits)
rd
Without prejudice to the Rights of innocent 3
rd
2. As to hidden treasure, usufructuary is right of 3 persons e.g. if parties should not be
the fruits had been prejudiced.
considered a stranger without a right to a planted by a possessor
share, unless he is also the finder of the in good faith, the
treasure pending crop expenses
and charges shall be
Article 566, Civil Code. The usufructuary shall be prorated between said
entitled to all the natural, industrial and civil fruits of possessor and the
the property in usufruct. With respect to hidden usufructuary
treasure which may be found on the land or
tenement, he shall be considered a stranger.  Fruits already matured at the time of the
termination of the usufruct, which
Article 438, Civil Code. Hidden treasure belongs to
ordinarily would have already been
the owner of the land, building, or other property on
which it is found. gathered by the usufructuary, may
remain ungathered for no fault imputable
Nevertheless, when the discovery is made on the to him, but because of malice or an act
rd
property of another, or of the State or any of its imputable to the naked owner or a 3
subdivisions, and by chance, one-half thereof shall person, or even due to force majeure or
be allowed to the finder. If the finder is a trespasser, fortuitous event.
he shall not be entitled to any share of the treasure.
4. Right to civil fruits
If the things found be of interest to science of the
arts, the State may acquire them at their just price,
Article 569, Civil Code. Civil fruits are deemed to
which shall be divided in conformity with the rule
stated. accrue daily, and belong to the usufructuary in
proportion to the time the usufruct may last.
Article 570, Civil Code. Whenever a usufruct is

3. Right to fruits pending at the beginning of constituted on the right to receive a rent or periodical
usufruct pension, whether in money or in fruits, or in the
interest on bonds or securities payable to bearer,
Article 567, Civil Code. The usufructuary shall be each payment due shall be considered as the
entitled to all the natural, industrial and civil fruits of proceeds or fruits of such right.
the property in usufruct. With respect to hidden
treasure which may be found on the land or Whenever it consists in the enjoyment of benefits
tenement, he shall be considered a stranger. accruing from a participation in any industrial or
commercial enterprise, the date of the distribution of
Article 438, Civil Code. Hidden treasure belongs to which is not fixed, such benefits shall have the same
the owner of the land, building, or other property on character.

lOMoARcPSD|3291925
expire before the

In either case they shall be distributed as civil fruits, termination of the lease, he
and shall be applied in the manner prescribed in the or his heirs and successors
preceding article. shall receive only the
proportionate share of the
5. Right to enjoy any increase through rent that must be paid by
accessions and servitudes, including the lessee. (Art. 568, Civil
products of hunting and fishing Code)
 It is the usufructuary and not the
Article 571, Civil Code. The usufructuary shall have naked owner who has the right
the right to enjoy any increase which the thing in
to choose the tenant.
usufruct may acquire through accession, the
servitudes established in its favor, and, in general, o As corollary to the right of
all the benefits inherent therein the usufructuary to all the
rent, to choose the tenant,
6. Right to lease the thing and to fix the amount of the
rent, she necessarily has 185
the right to choose herself
PROPERTY
Article 572, Civil Code. The usufructuary may
personally enjoy the thing in usufruct, lease it to as the tenant thereof; and,
another, or alienate his right of usufruct, even by a as long as the obligations
gratuitous title; but all the contracts he may enter she had assumed towards
into as such usufructuary shall terminate upon the the owner are fulfilled.
expiration of the usufruct, saving leases of rural (Fabie v. Gutierrez David)
lands, which shall be considered as subsisting  A lease executed by the owner
during the agricultural year.
before the creation of the
usufruct is not extinguished by
a. Exceptions:
such usufruct.
 Legal usufructs cannot be leased.
 Caucion juratoria (lease would
d. Limitations on the Right to Lease the
show that the usufructuary does not Property
need the property badly)
 Usufructuary cannot alienate a thing
b. Effect of the transfer of right:
in usufruct
 The transfer or lease of the usufruct
 Cannot alienate or dispose of
does NOT terminate the relation of
the objects included in the
the usufructuary with the owner
usufruct
 Death of the transferee does not
 Cannot renounce a servitude
terminate the usufruct but it
 Cannot mortgage or pledge a
terminates upon the death of the
thing
usufructuary who made the transfer.
 EXCEPT: When the right of
c. Rules as to Lease
usufruct is converted into the
 The property in usufruct may be
right of ownership
leased even without the consent of
o When the things are
the owner.
consumable (574);
 The lease should be for the same
o When the things by their
period as the usufruct.
nature are intended for sale,
 EXCEPT: leases of rural lands
such as the merchandise in
continues for the remainder of
a commercial
the agricultural year
establishment; and
 A lease executed by the
o When the things, whatever
usufructuary before the
their nature, are delivered
termination of the usufruct and
under appraisal as
subsisting after the termination
equivalent to their sale
of the usufruct must be
respected, but the rents for the
 Future crops may be sold but such
remaining period will belong to
sale would be void if not ratified by
the owner.
the owner.
o If the usufructuary has
 The buyer’s remedy is to
leased the lands or
recover from the usufructuary.
tenements given in usufruct,
 Only voluntary usufruct can be
and the usufruct should
alienated.

lOMoARcPSD|3291925
 The usufructuary-lessor is liable for  If the increase in value exceeds the

the act of the substitute. damages, and the improvements
 A usufructuary who alienates or are of such nature that they can be
leases his right of usufruct shall removed without injury to the thing
answer for any damage which in usufruct, the settlement of the
the things in usufruct may suffer difference must be agreed upon by
through the fault or negligence the parties.
of the person who substitutes  If the improvements cannot be
him. (Art. 590, Civil Code) removed without injury, the excess
in value accrues to the owner.
7. Right to improve the thing, but improvement  Registration of improvements – to

rd
inures for the benefit of the naked owner protect usufructuary against 3 persons

make on the property held in usufruct such useful B. As to the Legal Right of Usufruct Itself 186
improvements or expenses for mere pleasure as he
PROPERTY
may deem proper, provided he does not alter its 1. Right to mortgage right of usufruct
form or substance; but he shall have no right to be
indemnified therefor. He may, however, remove
such improvements, should it be possible to do so
personally enjoy the thing in usufruct, lease it to
without damage to the property.
another, or alienate his right of usufruct, even by a
gratuitous title; but all the contracts he may enter
 Usufructuary is not entitled to into as such usufructuary shall terminate upon the
reimbursement. expiration of the usufruct, saving leases of rural
 Whenever the usufructuary can remove lands, which shall be considered as subsisting
the improvements without injury to the during the agricultural year.
property in usufruct, he has the right to
do so, and the owner cannot prevent  Does not include parental usufruct
him from doing so even upon payment because of personal and family
of their value. considerations.
 This right does not involve an obligation
– if the usufructuary does not wish to 2. Right to alienate the usufruct except in
exercise it, he cannot be compelled by purely personal usufructs or when title
the owner to remove the improvements. constituting it prohibits the same
 This right to remove improvements can  Parental usufruct is inalienable
be enforced only against the owner, not
against a purchaser in good faith to
whom a clean title has been issued. VI. Rights of the Naked Owner
 Usufructuary may set off the
improvements against any damage to
1. At the beginning of the usufruct (see
the property
obligations of usufructuary at the beginning
Article 580, Civil Code. The usufructuary may set
of the usufruct)
off the improvements he may have made on the 2. During the usufruct
property against any damage to the same. a. Retains title to the thing or property
b. He may alienate the property: he may
 It is necessary that the not alter the form or substance of the
improvements should have thing; nor do anything prejudicial to the
increased the value of the property, usufructuary
and that the damages are imputable
to the usufructuary. Article 581, Civil Code. The owner of property the
 Increase in value and the amount of usufruct of which is held by another, may alienate it,
but he cannot alter its form or substance, or do
damages are set off against each anything thereon which may be prejudicial to the
other. usufructuary.
 If the damages exceed the increase
in value, the difference should be c. He may construct buildings, make
paid by the usufructuary as improvements and plantings, provided:
indemnity.  Value of the usufruct is not impaired

lOMoARcPSD|3291925
 Rights of the usufructuary are not  Title constituting usufruct excused the
prejudiced making of inventory
 Title constituting usufruct already makes an
inventory
VII. Obligations of the Usufructuary
To give a bond for the faithful performance of
A. At the Beginning of Usufruct or Before
duties as usufructuary—
Exercising the Usufruct
 Any kind of sufficient security is allowed, e.g.
cash, personal bond, mortgage
Article 583, Civil Code. The usufructuary, before
entering upon the enjoyment of the property, is
 No bond is required in the following
obliged: a. No prejudice would result (Art. 585)
1. To make, after notice to the owner or his b. Usufruct is reserved by a donor (Art.
legitimate representative, an inventory of all the 584)
property, which shall contain an appraisal of the  Gratitude on the donee’s part
movables and a description of the condition of demands that the donor be excused 187
the immovables; from filing the bond
PROPERTY
2. To give security, binding himself to fulfill the c. Title constituting usufruct excused
obligations imposed upon him in accordance
usufructuary
with this Chapter.
d. If usufructuary takes possession under a
caucion juratoria (Art. 587)
[NOTE: These requirements are NOT conditions  The security given may be by a
precedent to the commencement of the right of personal bond, a pledge, or a
the usufructuary but merely to the entry upon the mortgage.
possession and enjoyment of the property.]  It is only by way of exception that a
caucion juratoria is allowed, and
To make an inventory— only under the special
 Requisites circumstances:
a. Immovables must be described o Proper court petition
b. Movables appraised because they are o Necessity for delivery of
easily lost or deteriorated. furniture, implements or house
 Concurrence of the owner in the making of included in the usufruct
the inventory o Approval of the court
 Expenses for the making of the inventory o Sworn promise
are borne by the usufructuary  A usufructuary under this can
 Inventory may be in a private document, neither alienate his right nor lease
except when immovables are involved (a the property, for that would mean
rd
public instrument is prescribed to affect 3 that he does not need the dwelling
persons) or the implements and furniture.
 Failure to make an inventory failure does not
affect the rights of the usufructuary to enjoy Article 585, Civil Code. The share of the co-
the property and its fruits. owners, in the benefits as well as in the charges,
a. A prima facie presumption arises that shall be proportional to their respective interests.
the property was received by the Any stipulation in a contract to the contrary shall be
usfructuary in good condition void.
b. Even if he is already in possession, he
may still be required to make an The portions belonging to the co-owners in the co-
inventory. ownership shall be presumed equal, unless the
contrary is proved.
 Exceptions to the requirement of
inventory Article 584, Civil Code. The provisions of No. 2 of
a. No one will be injured thereby the preceding article shall not apply to the donor
b. Title of the usufruct excuses the making who has reserved the usufruct of the property
of the inventory donated, or to the parents who are usufructuaries of
their children's property, except when the parents
Article 585, Civil Code. The usufructuary, whatever contract a second marriage.
may be the title of the usufruct, may be excused
from the obligation of making an inventory or of Article 587, Civil Code. If the usufructuary who has
giving security, when no one will be injured thereby. not given security claims, by virtue of a promise
under oath, the delivery of the furniture necessary
for his use, and that he and his family be allowed to

lOMoARcPSD|3291925
live in a house included in the usufruct, the court o He shall have the ff. options:
may grant this petition, after due consideration of the 1. Receivership of realty, sale of
facts of the case. movables, deposit of securities,
or investment of money; or
The same rule shall be observed with respect to
2. Retention of the property as
implements, tools and other movable property
necessary for an industry or vocation in which he is administrator.
engaged. o Net products less administration
expenses fixed by agreement or by
If the owner does not wish that certain articles be the Court, shall be delivered to the
sold because of their artistic worth or because they usufructuary.
have a sentimental value, he may demand their
delivery to him upon his giving security for the  Right of the usufructuary
payment of the legal interest on their appraised o He may alienate his right over the
value.
property which he does not possess
in the same form as he holds it,
without prejudice to the right of the 188
 Effect of filing a bond transferee to give the required
PROPERTY
security.
Article 588, Civil Code. After the security has been
given by the usufructuary, he shall have a right to all
the proceeds and benefits from the day on which, in
accordance with the title constituting the usufruct, he B. During the Usufruct
should have commenced to receive them
To take care of the thing like a good father of
 Retroactivity: upon giving the security, a family—
the usufructuary will be entitled to all the
benefits accruing since the time when Article 589, Civil Code. The usufructuary shall take
he should have begun to receive them. care of the things given in usufruct as a good father
of a family.
 Effect of failure to give bond Article 610, Civil Code. A usufruct is not
extinguished by bad use of the thing in usufruct; but
Article 586, Civil Code. Should the usufructuary fail if the abuse should cause considerable injury to the
to give security in the cases in which he is bound to owner, the latter may demand that the thing be
give it, the owner may demand that the immovables delivered to him, binding himself to pay annually to
be placed under administration, that the movables the usufructuary the net proceeds of the same, after
be sold, that the public bonds, instruments of credit deducting the expenses and the compensation
payable to order or to bearer be converted into which may be allowed him for its administration.
registered certificates or deposited in a bank or
public institution, and that the capital or sums in
1. When damages are caused to the property
cash and the proceeds of the sale of the movable
property be invested in safe securities. by the fault or negligence of the
usufructuary, the naked owner need not wait
The interest on the proceeds of the sale of the for the termination of the usufruct before
movables and that on public securities and bonds, bringing the action to recover proper
and the proceeds of the property placed under indemnity.
administration, shall belong to the usufructuary. 2. The bad use of a thing, which causes
considerable injury, entitles the owner to
Furthermore, the owner may, if he so prefers, until demand the delivery and administration of
the usufructuary gives security or is excused from so
the thing.
doing, retain in his possession the property in
usufruct as administrator, subject to the obligation to 3. The exercise of this remedy does NOT
deliver to the usufructuary the net proceeds thereof, extinguish the usufruct.
after deducting the sums which may be agreed upon
or judicially allowed him for such administration. To undertake ordinary repairs—
 Right of the naked owner Article 592, Civil Code. The usufructuary is obliged
o Potestative right; if he does not wish to make the ordinary repairs needed by the thing
to exercise it, he may deliver the given in usufruct.
property to the usufructuary.
By ordinary repairs are understood such as are
o Delivery, however, does not mean a required by the wear and tear due to the natural use
renunciation of the right to demand of the thing and are indispensable for its
security. preservation. Should the usufructuary fail to make

lOMoARcPSD|3291925
them after demand by the owner, the latter may 2. General Rule: Naked owner must make the
make them at the expense of the usufructuary. extraordinary repairs
 Usufructuary obliged to pay legal
1. Ordinary repairs: interest on the amount while usufruct
a. Deteriorations or defects arise from the lasts
natural use of the thing;
b. Repairs are necessary for the 3. If the extraordinary repairs are
preservation of the thing. indispensable, and the naked owner fails to
2. The usufructuary is bound to pay only for the undertake them, the usufructuary may make
repairs made during the existence of the such repairs
usufruct.  Requisites:
 If the defects existed already at the time a. There must be due notification to
the usufruct began, the obligation to the naked owner of the urgency – if
defray the ordinary repairs falls upon the it is not urgent, there is no obligation
owner. to give notice.
3. If the defects are caused by the ordinary use b. The naked owner failed to make 189
of the thing, the usufructuary may exempt them
PROPERTY
himself from making the repairs by returning c. The repair is needed for
to the owner the fruits received during the preservation
time that the defects took place.  The usufructuary who has made the
 EXCEPT: When the ordinary repairs are extraordinary repairs necessary for
due to defects caused by the fault of the preservation, is entitled to recover from
usufructuary the owner the increase in value which
4. If the usufructuary fails to make the repairs the tenement acquired by reason of
even after demand, the owner may make such works.
them at the expense of the usufructuary  Usufructuary may retain until he is paid.
To notify owner of need to undertake To pay for annual charges and taxes on the
extraordinary repairs— fruits—
Article 593, Civil Code. Extraordinary repairs shall Article 596, Civil Code. The payment of annual
be at the expense of the owner. The usufructuary is charges and taxes and of those considered as a lien
obliged to notify the owner when the need for such on the fruits, shall be at the expense of the
repairs is urgent. usufructuary for all the time that the usufruct lasts.
Article 594, Civil Code. If the owner should make Article 597, Civil Code. The taxes which, during the
the extraordinary repairs, he shall have a right to usufruct, may be imposed directly on the capital,
demand of the usufructuary the legal interest on the shall be at the expense of the owner.
amount expended for the time that the usufruct lasts.
If the latter has paid them, the usufructuary shall pay
Should he not make them when they are him the proper interest on the sums which may have
indispensable for the preservation of the thing, the been paid in that character; and, if the said sums
usufructuary may make them; but he shall have a have been advanced by the usufructuary, he shall
right to demand of the owner, at the termination of recover the amount thereof at the termination of the
the usufruct, the increase in value which the usufruct.
immovable may have acquired by reason of the
repairs. Article 612, Civil Code. Upon the termination of the
usufruct, the thing in usufruct shall be delivered to
the owner, without prejudice to the right of retention
1. Extraordinary repairs pertaining to the usufructuary or his heirs for taxes
and extraordinary expenses which should be
a. Those caused by exceptional
reimbursed. After the delivery has been made, the
circumstances, whether or not they are security or mortgage shall be cancelled.
necessary for the preservation of the
thing;  It is well settled that a real tax, being a
b. Those caused by the natural use of the burden upon the capital, should be paid
thing, but are not necessary for its by the owner of the land and not by a
preservation. usufructuary. There is no merit in the
contention of distinguishing public lands
into alienable and indisposable. All

lOMoARcPSD|3291925
properties owned by the government, interest on bonds or securities payable to bearer,

without any distinction, are exempt from each payment due shall be considered as the
taxation. (Board of Assessment proceeds or fruits of such right.
Appeals of Zamboanga del Sur v.
Whenever it consists in the enjoyment of benefits
Samar Mining Company, Inc.)
accruing from a participation in any industrial or
commercial enterprise, the date of the distribution of
To notify owner of any act detrimental to which is not fixed, such benefits shall have the same
ownership— character.
Article 601, Civil Code. The usufructuary shall be In either case they shall be distributed as civil fruits,
obliged to notify the owner of any act of a third and shall be applied in the manner prescribed in the
person, of which he may have knowledge, that may preceding article.
be prejudicial to the rights of ownership, and he shall
be liable should he not do so, for damages, as if B. Usufruct of property owned in common
they had been caused through his own fault.
Article 582, Civil Code. The usufructuary of a part 190
of a thing held in common shall exercise all the
PROPERTY
To shoulder the costs of litigation re rights pertaining to the owner thereof with respect to
usufruct— the administration and the collection of fruits or
interest. Should the co-ownership cease by reason
Article 602, Civil Code. The expenses, costs and of the division of the thing held in common, the
liabilities in suits brought with regard to the usufruct usufruct of the part allotted to the co-owner shall
shall be borne by the usufructuary. belong to the usufructuary.
1. The usufructuary takes the place of the

To answer for fault or negligence of alienee, owner as to:
lessee or agent of usufructuary— a. Management;
b. Fruits; and
Article 590, Civil Code. A usufructuary who c. Interest
alienates or leases his right of usufruct shall answer 2. Effect of partition:
for any damage which the things in usufruct may a. The right of the usufructuary is not
suffer through the fault or negligence of the person affected by the division of the property in
who substitutes him. (498) usufruct among the co-owners.
b. After partition, the usufruct is transferred
 The usufructuary is made liable for the to the part allotted to the co-owner
acts of the substitute. While the
substitute answers to the usufructuary,
the usufructuary answers to the naked C. Usufruct constituted on a flock or herd of
owner. livestock
C. At the Time of the Termination of the Article 591, Civil Code. If the usufruct be
Usufruct constituted on a flock or herd of livestock, the
 To deliver the thing in usufruct to the usufructuary shall be obliged to replace with the
owner in the condition in which he has young thereof the animals that die each year from
received it, after undertaking ordinary natural causes, or are lost due to the rapacity of
repairs beasts of prey.
 Exception: abnormal usufruct – return
If the animals on which the usufruct is constituted
the thing of same kind, quantity and should all perish, without the fault of the
quality; if with appraised value, must usufructuary, on account of some contagious
return value appraised disease or any other uncommon event, the
usufructuary shall fulfill his obligation by delivering to
the owner the remains which may have been saved
VIII. Special Cases of Usufruct from the misfortune.
Should the herd or flock perish in part, also by

A. Usufruct over a pension or periodical accident and without the fault of the usufructuary,
income the usufruct shall continue on the part saved.
Article 570, Civil Code. Whenever a usufruct is Should the usufruct be on sterile animals, it shall be
constituted on the right to receive a rent or periodical considered, with respect to its effects, as though
pension, whether in money or in fruits, or in the constituted on fungible things.

lOMoARcPSD|3291925
1. On sterile stock: same rules on the enforcement of the action he acquires the thing
consumable property govern (i.e. claimed, the usufruct shall be limited to the fruits, the
replacement upon termination) dominion remaining with the owner.
2. On fruitful stock
a. Must replace ordinary losses of the 1. The action may be instituted in the
stock with the young if: usufructuary’s name. As the owner of the
 Some animals die from natural usufruct, he is properly deemed a proper
causes party in interest.
 Some animals are lost due to 2. If the purpose is the recovery of the property
rapacity of beasts of prey or right, he is still required under 578 to
obtain the naked owner’s authority.
b. There is no obligation to replace if: 3. If the purpose is to object to or prevent
 There is a total loss of animals disturbances over the property, no special
because of some unexpected or authority from the naked owner is needed.
unnatural loss (like contagious
disease or any other uncommon 191
event, provided the usufructuary has F. Usufruct on mortgaged property
PROPERTY
no fault);
 If all perish, the usufructuary Article 600, Civil Code. The usufructuary of a
should deliver the remains to mortgaged immovable shall not be obliged to pay
the debt for the security of which the mortgage was
the owner.
constituted.
 There is a partial loss
 If a part of the stock perishes, Should the immovable be attached or sold judicially
the usufruct subsists on the for the payment of the debt, the owner shall be liable
remainder. to the usufructuary for whatever the latter may lose
by reason thereof.
D. Usufruct over fruit bearing trees and 1. When the usufruct is universal and some
sprout and woodlands objects are mortgaged, apply Art. 598.
2. If the usufructuary mortgaged the usufruct
Article 575, Civil Code. The usufructuary of fruit- himself, he is liable to pay his own debt.
bearing trees and shrubs may make use of the dead
trunks, and even of those cut off or uprooted by
accident, under the obligation to replace them with G. Usufruct over an entire patrimony
new plants.
Article 598, Civil Code. If the usufruct be
Article 576, Civil Code. If the owner should make
constituted on the whole of a patrimony, and if at the
the extraordinary repairs, If in consequence of a
time of its constitution the owner has debts, the
calamity or extraordinary event, the trees or shrubs
provisions of Articles 758 and 759 relating to
shall have disappeared in such considerable number
donations shall be applied, both with respect to the
that it would not be possible or it would be too
maintenance of the usufruct and to the obligation of
burdensome to replace them, the usufructuary may
the usufructuary to pay such debts
leave the dead, fallen or uprooted trunks at the
disposal of the owner, and demand that the latter
The same rule shall be applied in case the owner is
remove them and clear the land.
obliged, at the time the usufruct is constituted, to
make periodical payments, even if there should be
The usufructuary can: no known capital.
1. Use dead trunks and those cut off or
uprooted by accident. 1. Applies when:
2. Make usual cuttings that owner used to do. a. If the usufruct is a universal one
3. Cut the trees that are not useful b. And the naked owner – Has debts or is
obliged to make periodical payments
(whether or not there be known capital)
E. Usufruct on a right of action 2. General rule: the usufructuary is not liable
for the owner’s debts.
Article 578, Civil Code. The usufructuary of an 3. Exceptions:
action to recover real property or a real right, or any
a. When it is so stipulated; in which case
movable property, has the right to bring the action
and to oblige the owner thereof to give him the
 The usufructuary shall be liable for
authority for this purpose and to furnish him the debt specified.
whatever proof he may have. If in consequence of

lOMoARcPSD|3291925
 If there is no specification, he is IX. Extinguishment of Usufruct

liable only for debts incurred by the
owner before the usufruct was
Article 603, Civil Code. Usufruct is extinguished:
constituted. 1. By the death of the usufructuary, unless a
contrary intention clearly appears;
b. When the usufruct is constituted in fraud 2. By the expiration of the period for which it was
of creditors constituted, or by the fulfillment of any
4. In no case shall the usufructuary be resolutory condition provided in the title creating
responsible for debts exceeding the benefits the usufruct;
under the usufruct. (except when the 3. By merger of the usufruct and ownership in the
contrary intention appears) same person;
4. By renunciation of the usufructuary;
5. By the total loss of the thing in usufruct;
H. Usufruct over deteriorable property 6. By the termination of the right of the person
constituting the usufruct;
Article 573, Civil Code. Whenever the usufruct 7. By prescription.
includes things which, without being consumed, 192
gradually deteriorate through wear and tear, the
PROPERTY
usufructuary shall have the right to make use thereof
in accordance with the purpose for which they are
A. Death of usufructuary
intended, and shall not be obliged to return them at
the termination of the usufruct except in their Exceptions—
condition at that time; but he shall be obliged to 1. In multiple usufructs: it ends at the death of
indemnify the owner for any deterioration they may the last survivor
have suffered by reason of his fraud or negligence.
Article 611, Civil Code. A usufruct constituted in
1. It is sufficient if the usufructuary returns the favor of several persons living at the time of its
things in the condition in which they may constitution shall not be extinguished until death of
have been found at the time of the expiration the last survivor.
of the usufruct despite ordinary defects
caused by use and deterioration produced a. If simultaneously constituted: all the
by age and time. usufructuaries must be alive (or at least
 EXCEPT when caused by the conceived) at the time of constitution.
usufructuary’s fraud and negligence. b. If successively constituted:
2. If usufructuary does not return the things  If by virtue of donation – all the
upon the expiration of the usufruct, he donees-usufructuaries must be
should pay an indemnity equivalent to the living at the time of the donation;
value of the things at the time of such  If by will – there should only be 2
expiration. successive usufructuaries and both
must have been alive at the time of
testator’s death.
I. Usufruct over consumable property
2. If the period is fixed by reference to the life
Article 574, Civil Code. Whenever the usufruct of another or there is a resolutory condition
includes things which cannot be used without being  Death does not affect the usufruct and
consumed, the usufructuary shall have the right to the right is transmitted to the heirs of the
make use of them under the obligation of paying usfructuary until the expiration of the
their appraised value at the termination of the term or the fulfillment of the condition.
usufruct, if they were appraised when delivered. In
case they were not appraised, he shall have the Article 606, Civil Code. A usufruct granted for the
right to return at the same quantity and quality, or time that may elapse before a third person attains a
pay their current price at the time the usufruct certain age, shall subsist for the number of years
ceases. specified, even if the third person should die before
the period expires, unless such usufruct has been
 Abnormal Usufruct expressly granted only in consideration of the
 If the thing is appraised at delivery, the existence of such person.
usufructuary must pay their appraised
value at the termination of the usufruct.
 If they were not appraised, he must 3. When a contrary intention clearly appears
return the same kind and quality or pay  If the usufructuary dies before the
the current price at the expiration of the happening of a resolutory condition, the
usufruct. usufruct is extinguished.

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st
 1 view: usufruct is personal and it Article 607, Civil Code. If the usufruct is constituted
CANNOT be extended beyond the on immovable property of which a building forms
lifetime of the usufructuary. (Sanchez part, and the latter should be destroyed in any
Roman and SC) manner whatsoever, the usufructuary shall have a
right to make use of the land and the materials.
B. Expiration of period or fulfillment of The same rule shall be applied if the usufruct is
resolutory condition imposed on constituted on a building only and the same should
usufruct by person constituting the be destroyed. But in such a case, if the owner
usufruct should wish to construct another building, he shall
have a right to occupy the land and to make use of
1. In favor of juridical persons: period cannot the materials, being obliged to pay to the
exceed 50yrs. usufructuary, during the continuance of the usufruct,
the interest upon the sum equivalent to the value of
Article 605, Civil Code. Usufruct cannot be the land and of the materials.
constituted in favor of a town, corporation, or
Article 608, Civil Code. If the usufructuary shares 193
association for more than fifty years. If it has been
with the owner the insurance of the tenement given
constituted, and before the expiration of such period
PROPERTY
in usufruct, the former shall, in case of loss, continue
the town is abandoned, or the corporation or
in the enjoyment of the new building, should one be
association is dissolved, the usufruct shall be
constructed, or shall receive the interest on the
extinguished by reason thereof.
insurance indemnity if the owner does not wish to
rd rebuild.
2. Time that may elapse before a 3 person
attains a certain age, even if the latter dies Should the usufructuary have refused to contribute
before period expires, unless granted only in to the insurance, the owner insuring the tenement
consideration of his existence alone, the latter shall receive the full amount of the
insurance indemnity in case of loss, saving always
Article 606, Civil Code. A usufruct granted for the the right granted to the usufructuary in the preceding
time that may elapse before a third person attains a article.
certain age, shall subsist for the number of years
specified, even if the third person should die before See Summary of Arts. 607 and 608
the period expires, unless such usufruct has been
expressly granted only in consideration of the F. Termination of right of person
existence of such person. constituting the usufruct
 Example: usufructs constituted by a
vendee a retro terminate upon
C. Merger of rights of usufruct and naked redemption
ownership in one person
 Illustration: H was the usufructuary of G. Prescription
land owned by X. x dies, leaving in his  Adverse possession against the owner
will, the naked ownership of the land to or the usfructuary.
H. the usufruct is extinguished because  It is not the non-use which extinguishes
now H is both the naked owner and the the usufruct by prescription, but the use
usufructuary. rd
by a 3 person.
 There can be no prescription as long as
D. Renunciation of usufruct the usfructuary receives the rents from
1. Waiver: voluntary surrender of the rights of the lease of the property, or he enjoys
the usufructuary, made by him with intent to the price of the sale of his right.
surrender them
2. Limitations
a. Must be express: tacit renunciation is
not sufficient
b. Does not need the consent of naked
owner
c. If made in fraud of creditors, waiver may
be rescinded by them through action
under Article 1381 (accion pauliana)
E. Extinction or loss of property

 If destroyed property is not insured

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SUMMARY (ARTS. 607 AND 708)
SITUATION EFFECT
Art. 607
If destroyed property is not insured
If the building forms part of an immovable under Usufruct continues over the land and the remaining
usufruct materials
If usufruct is on the building only Usufruct continues over the land and materials (plus
interests), if owner does not rebuild
If owner rebuilds, usufructuary must allow owner to
occupy the land and to make use of materials; but the
owner must pay interest on the value of both the land
and the materials.
Art. 608 194
If destroyed property is insured before termination of the usufruct
PROPERTY
When insurance premium paid by owner and If owner rebuilds, usufruct subsists on new building
usufructuary (par. 1) If owner does not rebuild interest upon insurance
proceeds paid to usufructuary
When the insurance taken by the naked owner Owner entitled to insurance money (no interest paid to
only because usufructuary refuses to contribute to usufructuary)
the premium (par. 2) If he does not rebuild, usufruct continues over
remaining land and/or owner may pay interest on
value of both materials and land (607)
If owner rebuilds, usufruct does not continue on new
building, but owner must pay interest on value of land
and old materials
When insurance taken by usufructuary only Insurance proceeds goes to the usufructuary
depends on value of usufructuary’s insurable No obligation to rebuild
interest Usufruct continues on the land
Owner has not share in insurance proceeds
indemnity, each owns the indemnity given to

X. Conditions Not Affecting Usufruct him, the usufruct being totally extinguished.
3. If usufructuary alone was given the

A. Expropriation of thing in usufruct
indemnity, he must give it to the naked
owner and compel the latter to return either
Article 609, Civil Code. Should the thing in usufruct
be expropriated for public use, the owner shall be
the interest or to replace the property. He
obliged either to replace it with another thing of the may even deduct the interest himself, if the
same value and of similar conditions, or to pay the naked owner fails to object.
usufructuary the legal interest on the amount of the
indemnity for the whole period of the usufruct. If the B. Bad use of thing in usufruct
owner chooses the latter alternative, he shall give
security for the payment of the interest. Article 610, Civil Code. A usufruct is not
extinguished by bad use of the thing in usufruct; but
3 SITUATIONS— if the abuse should cause considerable injury to the
1. If naked owner alone was given the owner, the latter may demand that the thing be
indemnity, he has the option: delivered to him, binding himself to pay annually to
a. To replace with equivalent thing the usufructuary the net proceeds of the same, after
deducting the expenses and the compensation
b. Or to pay to the usufructuary legal
which may be allowed him for its administration.
interest on the indemnity – requires
security given by the naked owner for
Does not extinguish the usufruct but—
the payment of the interest
1. Entitles the owner to demand delivery and
administration of the thing.
2. If both the naked owner and the
usufructuary were separately given

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2. The bad use must cause considerable injury

not to the thing, but to the owner.
C. Destruction if a building over which the

usufruct is constituted (Arts. 607 and
608)
195
PROPERTY

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CIVIL LAW REVIEWER Chapter VIII. EASEMENT
3. It is a right constituted over an

Chapter VIII. Easement immovable by nature (land and
buildings), not over movables. (Article
I. CONCEPT
II. ESSENTIAL FEATURES OF
613)
EASEMENTS/REAL o Immovable: used in its common and
III. CLASSIFICATION OF SERVITUDES not in the legal sense, meaning only
IV. GENERAL RULES ON SERVITUDE property immovable BY NATURE can
V. MODES OF ACQUIRING EASEMENTS have easements.
A. BY TITLE
B. BY PRESCRIPTION 4. It limits the servient owner’s right of
VI. RIGHTS AND OBLIGATIONS OF OWNERS ownership for the benefit of the dominant
A. OF DOMINANT ESTATE
estate.
B. OF SERVIENT ESTATE
VII. MODES OF EXTINGUISHMENT OF
o Right of limited use but no right to
EASEMENTS possess servient estate.
VIII. LEGAL EASEMENTS o There exists a limitation on ownership:
the dominant owner is allowed to enjoy 196
or use part of the servient estate, or
PROPERTY
I. Concept
imposes on the owner a restriction as to
his enjoyment of his own property.
Art. 613, Civil Code. An easement or servitude is an o Being an abnormal limitation of
encumbrance imposed upon an immovable for the ownership, it cannot be
benefit of another immovable belonging to a different
presumed.
owner.
The immovable in favor of which the easement is 5. It creates a relation between tenements
established is called the dominant estate; that which o No transfer of ownership, but a
is subject thereto, the servient estate. (530) relationship is created, depending on the
easement.
 A real right which burdens a thing with a
prestation of determinate servitudes for the 6. Generally, it may consist in the owner of
exclusive enjoyment of one who is NOT an the dominant estate demanding that the
owner of a tenement owner of the servient estate refrain from
doing something (servitus in non
 A real right by virtue of which the owner has faciendo) or that the latter permit that
to ABSTAIN from doing or ALLOW something be done over the servient
somebody else to do something to his property (servitus in patendo), but not in
property for the benefit of another the right to demand that the owner of the
servient right to demand that the owner
II. Essential Features of the servient estate do something
(servitus in faciendo) except if such act
is an accessory obligation to a preadial
1. It is a real right – it gives an action in rem servitude (obligation propter rem)
or real action against any possessor of o Servient owner merely allows something
the servient estate to be done to his estate.
o Owner of the dominant estate can file a o EXCEPTIONS: Praedial servitudes
real action for enforcement of right to an a. Right to place beams in an adjoining
easement wall to support a structure
o Action in rem: an action against the b. Right to use another’s wall to
thing itself, instead of against the support a building
person.
7. It is inherent or inseparable from estate
2. It is a right enjoyed over another property to which they actively or passively
(jus in re aliena) – it cannot exist in one’s belong
property (nulli res sua servit)
o When a dominant and servient estate Art. 617, Civil Code. Easements are inseparable
have the same owner, an easement is from the estate to which they actively or passively
extinguished. Separate ownership is a belong.
prerequisite to an easement.

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o Easements are merely accessory to the

tenements, and a “quality thereof.” They b. Voluntary: Created by the will of the
cannot exist without tenements. owners of the estate through contract
o Easements exist even if they are not
expressly stated or annotated as an *** There is no such thing as a JUDICIAL
encumbrance of the titles. EASEMENT. The Courts cannot create
easements, they can only declare the existence
8. It is intransmissible – it cannot be of one, if it exists by virtue of the law or will of
alienated separately from the tenement the parties.
affected or benefited
o Any alienation of the property covered 3. As to its exercise (Article 615)
carries with it the servitudes affecting
said property. But this affects only the Art. 615, Civil Code. Easements may be continuous
portion of the tenement with the or discontinuous, apparent or nonapparent.
easement, meaning the portions
unaffected can be alienated without the Continuous easements are those the use of which is 197
or may be incessant, without the intervention of any
servitude.
PROPERTY
act of man.
9. It is indivisible Discontinuous easements are those which are used at
intervals and depend upon the acts of man.
Art. 618, Civil Code. Easements are indivisible. If the
servient estate is divided between two or more Apparent easements are those which are made
persons, the easement is not modified, and each of known and are continually kept in view by external
them must bear it on the part which corresponds to signs that reveal the use and enjoyment of the same.
him.
If it is the dominant estate that is divided between two Nonapparent easements are those which show no
or more persons, each of them may use the easement external indication of their existence. (532)
in its entirety, without changing the place of its use, or
making it more burdensome in any other way.
This classification is important in
10. It has permanence – once it attaches, determining prescription: only continuous
whether used or not, it continues and and apparent easements can be created by
may be used at anytime prescription
o Perpetual: exists as long as property  Continuous: Use is or may be incessant,
exists, unless it is extinguished. without the intervention of any man
 Discontinuous: Used at intervals, and
dependent upon the acts of man.
III. Classification of Servitudes
4. As indication of its existence
1. As to recipient of benefits Also important for purposes of prescription
a. Real or Praedial: exists for the benefit of  Apparent: Made known and continually
a particular tenement. kept in view by external signs that reveal
b. Personal: exists for the benefit of the use and enjoyment of the same
persons without a dominant tenement  Non-apparent: No external indication of
e.g. usus habitatio (right to reside in a their existence
house) and operae servorum (right to
the labor of slaves) in Roman Law 5. By the object or obligation imposed
(Article 616)
2. As to cause or origin a. Positive: Imposes upon the owner of the
a. Legal: created by law, whether for public servient estate the obligation of allowing
use or for the interest of private persons something to be done, or doing it himself
o Once requisites are satisfied, the b. Negative: Prohibits the owner of the
owner of the dominant estate may servient estate from doing something
ask the Court to declare that an which he could lawfully do if the
easement is created. easement did not exist.
o Example: Natural drainage of o Prescription starts to run from
waters, Abutment of land, Aqueduct, service of notarial prohibition)
etc. o e.g. Negative Easement of Light
and View: An opening is made on

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the wall of the dominant estate, and

the easement consists of imposing The defect may be cured by:
upon the servient estate the a. Deed of recognition by owner of servient
obligation to not build anything that estate: By affidavit or a formal deed
would obstruct the light acknowledging the servitude
b. By final judgment: Owner of the
dominant estate must file a case in
IV. General Rules Relating to Servitudes Court to have the easement declared by
proving its existence through other
evidence
1. Nulli res sua servi: No one can have a
servitude over one’s own property
2. Existence of an apparent sign considered as
title
2. Servitus in faciendo consistere nequit: A
servitude cannot consist in doing Article 624, Civil Code. The existence of an apparent
o Although some easements seem to sign of easement between two estates, established or 198
impose a positive prestation upon the maintained by the owner of both, shall be considered,
PROPERTY
owner of the servient estate, in reality, should either of them be alienated, as a title in order
the primary obligation is still negative. that the easement may continue actively and
o Illustration: Under Article 680: the owner passively, unless, at the time the ownership of the two
of a tree whose branches extend over to estates is divided, the contrary should be provided in
a neighboring property is required to cut the title of conveyance of either of them, or the sign
off the extended branches, but the real aforesaid should be removed before the execution of
the deed. This provision shall also apply in case of the
essence of the easement is the
division of a thing owned in common by two or more
obligation NOT TO ALLOW the persons.
branches of the tree to extend beyond
the land o Illustration: The presence of 4 windows
3. Servitus servitutes esse non potes: There was considered an apparent sign which
can be no servitude over another servitude created a negative easement of light
and view (altius non tollendi) i.e. not to
4. A servitude must be exercised civiliter – build a structure that will cover the
in a way least burdensome to the owner of windows. (Amor v. Florentino)
the land
5. A servitude must have a perpetual cause B. By Prescription
Requisites—
V. Modes of Acquiring Easements 1. Easement must be continuous and
apparent.
A. By Title – juridical act which gives rise  Although the road had been used for
to the servitude (e.g. law, donations, more than 20 years, since an easement
contracts or wills) of right of way is a discontinuous
easement, it CANNOT be acquired by
Because the road was voluntarily created as a prescription because of the requirement
servitude by the owner, he may close it at his of continuous or uninterrupted
pleasure. But while the road is open, he may not possession. Since the dominant owner
capriciously exclude the owner of the tuba saloon cannot be continually and
from its use. (North Negros Sugar v. Hidalgo) uninterruptedly crossing the servient
estate, but can do so only at intervals,
1. If easement has been acquired but no proof the easement is necessarily of an
of existence of easement available, and intermittent or discontinuous nature.
easement is one that cannot be acquired by (Ronquillo v. Roco)Sasa
prescription
2. Easement must have existed for 10 years.
Article 623, Civil Code. The absence of a document 3. NO NEED for good faith or just title.
or proof showing the origin of an easement which
cannot be acquired by prescription may be cured by a
deed of recognition by the owner of the servient
estate or by a final judgment.

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VI. Rights and Obligations of Owners of Encarnacion v. Court of Appeals: The Court
granted the modification of the easement stating that
Dominant and Servient Estates under the law, the needs of the dominant property
ultimately determine the width of the passage. And
A. Of Dominant Estate these needs may vary from time to time. When
petitioner started out as a plant nursery operator, he
1. Right of owner of dominant estate and his family could easily make do with a few
(Limited Jus Utendi: limited by the nature of pushcarts to tow the plants to the national highway.
But the business grew and with it the need for the use
the easement itself)
of modern means of conveyance or transport.
Petitioner should not be denied a passageway wide
a. To use the easement and exercise all enough to accomodate his jeepney since that is a
rights necessary for it reasonable and necessary aspect of the plant nursery
business.
Article 625, Civil Code. Upon the establishment of
an easement, all the rights necessary for its use are 2. Obligations of the owner of dominant
considered granted. estate 199
Article 626, Civil Code. The owner of the dominant
PROPERTY
estate cannot use the easement except for the benefit a. To use the easement for benefit of
of the immovable originally contemplated. Neither can immovable and in the manner
he exercise the easement in any other manner than originally established
that previously established. o Article 626 (supra): Right to use
the easement for the benefit of the
o Owner of the dominant estate is immovable originally contemplated,
granted the right to use the principal and in the manner originally
easement, and all accessory established.
servitudes o If established for a particular
o Example: Easement of drawing purpose, the easement cannot be
water carries with it the easement of used for a different one. However, if
right of way to the place where established in a general way,
water is drawn. without specific purpose, the
o Limitation: Only for the original easement can be used for all the
immovable and the original purpose needs of the dominant estate.
b. To notify owner of servient before

b. To do at his expense, all necessary making repairs and to make repairs in
works for the use and preservation of a manner least inconvenient to
the easement servient estate
o Article 627(2) (supra): Notify the
Article 627, Civil Code. The owner of the dominant owner of the servient estate before
estate may make, at his own expense, on the servient making repairs and choosing the
state any works necessary for the use and most convenient time and manner
preservation of the servitude, but without altering it or so as to cause the least
rendering it more burdensome. inconvenience to the owner of the
servient estate.
For this purpose he shall notify the owner of the
servient estate, and shall choose the most convenient
time and manner so as to cause the least c. Not to alter easement or render it more
inconvenience to the owner of the servient estate. burdensome
o Article 627 (supra): Owner of
o Necessity of the works determine dominant estate may make repairs
extent of such works. at his expense, but cannot alter the
easement or make it more
c. In a right of way, to ask for change in burdensome.
width of easement sufficient for o Court allowed Central to use the
needs right of way to transport the
additional sugar. This did not make
Article 651, Civil Code. The width of the easement of the easement more burdensome nor
right of way shall be that which is sufficient for the did it alter it. What is prohibited is
needs of the dominant estate, and may accordingly be extending the road or repairing it or
changed from time to time. depositing excavations outside the

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area. But the additional use o REQUISITES if change will cause

produced no such effects. prejudice to the dominant owner nor
(Valderama v. North Negros) impair the use of the servitude:
 By reason of the place/manner
d. To contribute to expenses of works originally assigned, the use of
necessary for use and preservation such easement has become
of servitude, if there are several VERY INCONVENIENT to the
dominant estates, unless he owner
renounces his interest  The easement should prevent
him from making any important
Article 628, Civil Code. Should there be several works, repairs or improvements
dominant estates, the owners of all of them shall be thereon
obliged to contribute to the expenses referred to in the  Change must be done at his
preceding article, in proportion to the benefits which expense
each may derive from the work. Any one who does
 He offers another place or
not wish to contribute may exempt himself by
manner equally convenient 200
renouncing the easement for the benefit of the others.
 In such a way that no injury is
PROPERTY
If the owner of the servient estate should make use of caused by the change to the
the easement in any manner whatsoever, he shall owner of the dominant estate or
also be obliged to contribute to the expenses in the to those who may have a right
proportion stated, saving an agreement to the to use the easement
contrary.
c. To use the easement
B. Of Servient Estate o May use the easement but must
also contribute proportionately to the
1. Rights of owner of servient estate expenses
a. To retain ownership and use of his 2. Obligations of the servient estate

property a. Not to impair the use of the easement
o The owner of the servient estate o The owner of the servient estate
retains the ownership of the portion cannot impair, in any manner
on which the easement is whatsoever, the use of the
established, and may use the same servitude. (Art. 629(1), Civil Code)
in such a manner as not to affect the b. To contribute proportionately to
exercise of the easement. (Art. 630, expenses if he uses the easement
Civil Code) o If the owner of the servient estate
o Servient owner must respect the use should make use of the easement in
of the servitude, but retains any manner whatsoever, he shall
ownership and use of the same, in a also be obliged to contribute to the
manner not affecting the easement. expenses in the proportion stated,
saving an agreement to the contrary
b. To change the place and manner of (Art. 628(2), Civil Code)
the use of the easement
Article 629, Civil Code. The owner of the servient

estate cannot impair, in any manner whatsoever, the
VII. Modes of Extinguishment of
use of the servitude Easements
Nevertheless, if by reason of the place originally Article 631, Civil Code. Easements are extinguished:
assigned, or of the manner established for the use of 1. By merger in the same person of the ownership
the easement, the same should become very of the dominant and servient estates;
inconvenient to the owner of the servient estate, or 2. By nonuser for ten years; with respect to
should prevent him from making any important works, discontinuous easements, this period shall be
repairs or improvements thereon, it may be changed computed from the day on which they ceased to
at his expense, provided he offers another place or be used; and, with respect to continuous
manner equally convenient and in such a way that no easements, from the day on which an act
injury is caused thereby to the owner of the dominant contrary to the same took place;
estate or to those who may have a right to the use of 3. When either or both of the estates fall into such
the easement. condition that the easement cannot be used; but
it shall revive if the subsequent condition of the
estates or either of them should again permit its

lOMoARcPSD|3291925
use, unless when the use becomes possible, o EXCEPT: If the suspension exceeds 10
sufficient time for prescription has elapsed, in years, the easement is deemed
accordance with the provisions of the preceding extinguished by non-user
number;
4. By the expiration of the term or the fulfillment of
4. Expiration of the term or fulfillment of
the condition, if the easement is temporary or
conditional; resolutory condition
5. By the renunciation of the owner of the dominant o Applicable only to voluntary easements
estate;
6. By the redemption agreed upon between the 5. Renunciation of the owner of the
owners of the dominant and servient estates. dominant estate
(546a) o Must be specific, clear, express
(distinguished from non-user)
Modes of Extinguishment—
1. Merger: must be absolute, perfect and 6. Redemption agreed upon between the
definite, not merely temporary owners
o Absolute: Ownership of the property 201
must be absolute, thus not applicable to 7. Other causes not mentioned in Article
PROPERTY
lease, usufruct, etc. 631
o Perfect: Merger must not be subject to o Annulment and rescission of the title
a condition constituting the voluntary easement
o If the merger is temporary, there is at o Termination of the right of grantor of the
most a suspension of the easement, but voluntary easement
no extinguishment. o Abandonment of the servient estate
 Owner of the servient estate gives
2. By non-user for 10 years up ownership of the easement (e.g.
o Owner of dominant estate does not the strip of land where the right of
exercise right over easement. way is constituted) in favor of the
o Inaction, not outright renunciation. dominant estate.
o Due to voluntary abstention by the  The easement is extinguished
dominant owner, and not to a fortuitous because ownership is transferred to
event the dominant owner, who now owns
o Computation of the period both properties.
 Discontinuous easements: counted o Eminent domain
from the day they ceased to be used  The government’s power to
 Continuous easements: counted expropriate property for public use,
from the day an act adverse to the subject to the payment of just
exercise of the easement took place compensation.
 E.g. in an easement of light and o Special cause for extinction of legal
view, the erection of works rights of way; if right of way no longer
obstructing the servitude would necessary
commence the period of  Art. 655, Civil Code
prescription  If the right of way granted to a
o Use by a co-owner of the dominant surrounded estate ceases to be
estate bars prescription with respect to necessary because its owner
the others has joined it to another abutting
o Servitudes not yet exercised cannot be on a public road, the owner of
extinguished by non-user the servient estate may demand
 An easement must have first been that the easement be
used, before it can be extinguished extinguished, returning what he
by inaction. may have received by way of
indemnity. The interest on the
3. Extinguishment by impossibility of use indemnity shall be deemed to be
o Impossibility referred to must render the in payment of rent for the use of
entire easement unusable for all time. the easement.
o Impossibility of using the easement due  The same rule shall be applied
to the condition of the tenements (e.g. in case a new road is opened
flooding) only suspends the servitude giving access to the isolated
until it can be used again. estate.

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 In both cases, the public a. REQUISITE: Waters must flow naturally,

highway must substantially meet without the intervention of man
the needs of the dominant b. DUTIES:
estate in order that the o DOMINANT OWNER (Higher
easement may be extinguished. Estate)
 Right of way ceases to be  Cannot construct works to
necessary: increase the burden e.g. canals
 Owner of the of the dominant draining other lands into the
estate has joined to another lower estate, works which
abutting on a public road prevent absorption of water like
 A new road is opened giving pavements which make the
access to the isolated estate ground more impervious than it
 Requisite: the public highway must is.
substantially meet the needs of the  May demand that the servient
dominant estate in order that the owner allow him to make works
easement may be extinguished necessary to remove 202
 Owner of the servient estate may obstructions impeding natural
PROPERTY
demand that the easement be passage
extinguished. o SERVIENT OWNER (Lower Estate)
 Owner of the servient estate must  Cannot make works which
return indemnity he received (value would impede the servitude e.g.
of the land) dams which would block the
natural flow, walls, ditches that
VIII. Legal Easements enclose the tenements.
 Can construct works that he
may deem necessary to prevent
A. Law governing legal easements
damage to himself, so long as
he does not cause damage to
1. For public easements
inferior tenements
a. Special laws and regulations relating
thereto (ex: PD 1067 and PD 705)
2. Easements on lands along riverbanks
b. By the provisions of Chapter 2, Title VII,
Book II, NCC Article 638, Civil Code. The banks of rivers and
streams, even in case they are of private ownership,
2. For private legal easements are subject throughout their entire length and within a
a. By agreement of the interested parties zone of three meters along their margins, to the
whenever the law does not prohibit it easement of public use in the general interest of
rd
and no injury is suffered by a 3 person navigation, floatage, fishing and salvage.
b. By the provisions of Chapter 2, title VII,
Book II Estates adjoining the banks of navigable or floatable
rivers are, furthermore, subject to the easement of
towpath for the exclusive service of river navigation
B. Private legal easements provided for by
and floatage.
the NCC
If it be necessary for such purpose to occupy lands of
THOSE ESTABLISHED FOR THE USE OF private ownership, the proper indemnity shall first be
WATER OR EASEMENTS RELATING TO paid.
WATERS—
3. Abutment of a dam
1. Natural drainage of waters
Article 639, Civil Code. Whenever for the diversion
Article 637, Civil Code. Lower estates are obliged to or taking of water from a river or brook, or for the use
receive the waters which naturally and without the of any other continuous or discontinuous stream, it
intervention of man descend from the higher estates, should be necessary to build a dam, and the person
as well as the stones or earth which they carry with who is to construct it is not the owner of the banks, or
them. lands which must support it, he may establish the
easement of abutment of a dam, after payment of the
The owner of the lower estate cannot construct works proper indemnity. (554)
which will impede this easement; neither can the
owner of the higher estate make works which will
increase the burden.

lOMoARcPSD|3291925
o Easement of abutment of a dam may be o REQUISITES:

established after payment of proper 1) Dominant owner must prove that:
indemnity a) He can dispose of the water
o REQUISITES: b) Water is sufficient for the use for
1) Construction of dam mecessary for which it is intended
the use of any other continuous or c) The proposed right of way is the
discontinuous stream most convenient and the least
2) Person who is to construct the dam onerous to third persons
is NOT the owner of the banks or 2) Dominant owner must also
lands which must support the dam indemnify the servient estate in the
manner determined by laws and
4. Aqueduct regulations
3) Dominant owner cannot impose the
Article 642, Civil Code. Any person who may wish to easement of aqueduct on buildings,
use upon his own estate any water of which he can courtyards, annexes, outhouses,
dispose shall have the right to make it flow through orchards or gardens already existing 203
the intervening estates, with the obligation to
PROPERTY
indemnify their owners, as well as the owners of the
Existing structures cannot be injured to
lower estates upon which the waters may filter or
descend. establish the easement.
 RIGHT OF SERVIENT OWNER:
Article 643, Civil Code. One desiring to make use of May fence or build over the
the right granted in the preceding article is obliged: aqueduct in such a manner as not to
1. To prove that he can dispose of the water and cause any damage, or render
that it is sufficient for the use for which it is impossible any necessary repairs
intended; and cleanings
2. To show that the proposed right of way is the
most convenient and the least onerous to third
5. Stop lock and sluice gate
persons;
3. To indemnify the owner of the servient estate in
the manner determined by the laws and Article 647, Civil Code. One who for the purpose of
regulations. irrigating or improving his estate, has to construct a
stop lock or sluice gate in the bed of the stream from
Article 644, Civil Code. The easement of aqueduct which the water is to be taken, may demand that the
for private interest cannot be imposed on buildings, owners of the banks permit its construction, after
courtyards, annexes, or outhouses, or on orchards or payment of damages, including those caused by the
gardens already existing. new easement to such owners and to the other
irrigators.
Article 645, Civil Code. The easement of aqueduct
does not prevent the owner of the servient estate from 6. Stop lock and sluice gate
closing or fencing it, or from building over the 1. REQUISITES:
aqueduct in such manner as not to cause the latter 1) Can be imposed only for reasons of
any damage, or render necessary repairs and public use in favor of a town or
cleanings impossible. village
2) After payment of proper indemnity
Article 645, Civil Code. For legal purposes, the
easement of aqueduct shall be considered as
continuous and apparent, even though the flow of the
water may not be continuous, or its use depends upon THE EASEMENT OF RIGHT OF WAY—
the needs of the dominant estate, or upon a schedule
of alternate days or hours. Article 649, Civil Code. The owner, or any person
who by virtue of a real right may cultivate or use any
o Any person wishing to use upon his own immovable, which is surrounded by other immovables
estate any water can make it flow pertaining to other persons and without adequate
outlet to a public highway, is entitled to demand a
through intervening estates with
right of way through the neighboring estates, after
obligation to indemnify owners of such payment of the proper indemnity.
estates
o Considered as a continuous and Should this easement be established in such a
apparent easement, even though the manner that its use may be continuous for all the
flow of water may not be continuous needs of the dominant estate, establishing a
permanent passage, the indemnity shall consist of the
value of the land occupied and the amount of the
damage caused to the servient estate.

lOMoARcPSD|3291925
7. RULES FOR ESTABLISHING THE

In case the right of way is limited to the necessary RIGHT OF WAY
passage for the cultivation of the estate surrounded 1) Must be established at the point
by others and for the gathering of its crops through LEAST prejudicial to the servient
the servient estate without a permanent way, the
estate
indemnity shall consist in the payment of the damage
caused by such encumbrance.
This easement is not compulsory if the isolation of the Art. 650, Civil Code. The easement of right of way
immovable is due to the proprietor's own acts. (564a) shall be established at the point least prejudicial to
the servient estate, and, insofar as consistent with
this rule, where the distance from the dominant estate
2. Who may demand: to a public highway may be the shortest.
(1) The owner of the dominant estate
(2) Any person with the real right to a. Insofar as consistent with the
cultivate or use the immovable e.g. first rule, where the distance
a usufructuary from the dominant estate to a
public highway is shortest 204
BUT a lessee cannot demand such
PROPERTY
easement, because the lessor is the one E.g. as between a longer way
bound to maintain him in the enjoyment without injury to the servient
of the property estate’s constructions, etc. and
a shorter way that would cause
3. REQUISITES: injury
(1) Dominant estate is surrounded by
other immovables owned by other b. The criterion of least prejudice
persons to the servient estate must
(2) There must absolutely be no access prevail over the criterion of
to a public highway shortest distance although this
(3) Even if there is access, it is difficult is a matter of judicial
or dangerous to use, or grossly appreciation. While shortest
insufficient distance may ordinarily imply
4. Mere inconvenience in the use least prejudice, it is not always
of an outlet does not render the so as when there are permanent
easement a necessity. structures obstructing the
5. An adequate outlet is one that shortest distance; while on the
is sufficient for the purpose and other hand, the longest distance
needs of the dominant owner, may be free of obstructions and
and can be established at a the easiest or most convenient
reasonable expense. to pass through. (Quimen v.
6. Does not necessarily have to be CA)
by land – an outlet through a
navigable river if suitable to the c. The fact that LGV had other
needs of the tenement is means of egress to the public
sufficient. highway cannot extinguish the
said easement, being voluntary
(4) Isolation of the immovable is NOT and not compulsory. The free
due to the dominant owner’s own ingress and egress along
acts e.g. if he constructs building to Mangyan Road created by the
others obstructing the old way voluntary agreement between
(5) Payment of indemnity the parties is thus legally
o If right of way is permanent and demandable with the
continuous for the needs of the corresponding duty on the
dominant estate = value of the servient estate not to obstruct
land + amount of damage the same. (La Vista
caused to the servient estate Association v. CA)
o If right of way is limited to
necessary passage for 2) Width of the easement shall be that
cultivation of the estate and for which is sufficient for the needs of
gathering crops, without the dominant estate
permanent way = damage
caused by encumbrance.

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a. Easement may be changed to grant a right of way

from time to time depending without indemnity. In case of
upon the needs of the dominant a simple donation, the donor
tenement shall be indemnified by the
b. The width of the easement of donee for the establishment
right of way shall be that which of the right of way. (Art.
is sufficient for the needs of the 652, CC)
dominant estate, and may
accordingly be changed from 8. EXTINGUISHMENT
time to time. (Art. 651, CC) Extinguished in the following
circumstances because easement
3) Necessary repairs for a permanent ceases to be necessary:
right of way shall be made by the 1) Owner has joined the dominant
DOMINANT OWNER. estate to another abutting the public
4) A proportionate share of taxes shall road
be reimbursed by the dominant 2) A new road is opened giving access 205
owner to the proprietor of the to the isolated estate
PROPERTY
servient estate
 If the right of way is permanent, 3) Extinguishment is NOT automatic.
the necessary repairs shall be The owner of the servient estate
made by the owner of the must ask for such extinguishment
dominant estate. A
proportionate share of the taxes 4) Indemnity paid to the servient owner
shall be reimbursed by said must be returned:
owner to the proprietor of the a. If easement is permanent: value
servient estate (Art. 654, CC) of the land must be returned
b. If easement is temporary:
5) In cases where the dominant estate nothing to be returned
needing the right of way is acquired
by sale, exchange or partition and 9. SPECIAL RIGHTS OF WAY
the Estate is surrounded by other  Right of way to carry materials for
estates owned by the vendor, the construction, repair,
exchanger of co-owner improvement, alteration or
beautification of a building through
a. Vendor, exchanger or co-owner the estate of another
shall grant the right of way  Right of way to raise on another’s
WITHOUT INDEMNITY land scaffolding or other objects
 Granting the servitude necessary for the work
without indemnity is a tacit  If it be indispensable for the
condition of the sale, construction, repair,
exchange or partition: each improvement, alteration or
party receives something beautification of a building, to
b. Donor (simple donation) must carry materials through the
still be indemnified for right of estate of another, or to raise
way therein scaffolding or other
 Grantor receives nothing objects necessary for the work,
from the grantee, therefore the owner of such estate shall
no implied condition as to a be obliged to permit the act,
right of way is constituted after receiving payment of the
c. If the land of the grantor is the proper indemnity for the
one which becomes isolated, he damage caused him. (Art. 656)
may demand right of way after  Right of way for the passage of
paying an indemnity livestock known as animal path,
 Whenever a piece of land animal trail, watering places, resting
acquired by sale, exchange places, animal folds (Art. 657)
or partition, is surrounded  Easements of the right of way
by other estates of the for the passage of livestock
vendor, exchanger, or co- known as animal path, animal
owner, he shall be obliged trail or any other, and those for

lOMoARcPSD|3291925
watering places, resting places (ii) In dividing walls of gardens or yards,

and animal folds, shall be situated in cities, towns or rural
governed by the ordinances and communities
regulations relating thereto, and, (iii) In fences, walls and live hedges
in the absence thereof, by the dividing rural lands
usages and customs of the (iv) Ditches or drains between two
place. estates
 Without prejudice to rights
legally acquired, the animal path b. EXTERIOR SIGNS CONTRARY TO
shall not exceed in any case the THE EASEMENT OF PARTY WALL
width of 75 meters, and the (merely illustrative and not exclusive)
animal trail that of 37 meters (i) A window or opening in the dividing
and 50 centimeters. wall of buildings
 Whenever it is necessary to (ii) A lower part of the wall slants or
establish a compulsory projects outward on one side of the
easement of the right of way or wall, while the other side is straight 206
for a watering place for animals, and plumb on its facement
PROPERTY
the provisions of this Section (iii) Entire wall is built WITHIN the
and those of Articles 640 and boundaries of one of the estates
641 shall be observed. In this (iv) Dividing wall bears the burden of
case the width shall not exceed beams, floors and roof frame of only
10 meters one of the buildings
(v) Dividing wall between courtyards,
THE EASEMENT OF PARTY WALL— garden or tenements is constructed
in such a way that the it sheds water
Article 659, Civil Code. The existence of an upon only one of the estates
easement of party wall is presumed, unless there is a (vi) Dividing wall has stepping stones
title, or exterior sign, or proof to the contrary: which project from the surface of
1. In dividing walls of adjoining buildings up to the one side only, but not on the other
point of common elevation;
(vii) Lands enclosed by fences or live
2. In dividing walls of gardens or yards situated in
cities, towns, or in rural communities; hedges adjoin others which are not
3. In fences, walls and live hedges dividing rural enclosed
lands.
WALL OWNED IN 2. OTHERS NOT ENUMERATED in ARTICLE

PARTY WALL
COMMON 659
Built by common Owned by adjoining a. Two adjoining tenements surrounded by
agreement by getting owners from its live hedges of different kinds = the
land from the adjoining construction or by hedge must belong to the owner of the
tenements in equal parts subsequent act tenement using the same kind of plants
Owner may use the wall Co-owner cannot use the b. For ditches or drains between two
for his own exclusive wall for his own exclusive
estates, whenever the earth or dirt
benefit benefit, because he
would be impairing the removed to open or clean the ditch is
rights of his co-owners only on one side thereof
Each owner may insert Each owner can insert
beams but only to the beams in the wall to the 3. CONTRADICTORY SIGNS
extent of ½ of its extent of entire thickness a. Contradictory external signs are left to
thickness the determination of the Court, but the
quality instead of the number of signs
1. DETERMINING THE EXISTENCE OF A must prevail. Also, a presumption arising
PARTY WALL from the object or purpose of the wall is
a. PRESUMED in the following situations of more force than that arising from a
unless there is a TITLE or EXTERIOR doubtful external sign.
SIGN or PROOF to the contrary b. Title, as an express proof of ownership
(i) In dividing walls of adjoining prevails over an external sign, which
buildings, up to the point of common merely gives rise to a presumption
elevation

lOMoARcPSD|3291925
4. RULES E.g. A ½ interest in the wall = ½

a. Cost of repairs and construction, payment for expenses = ½ use as in
maintenance of fences, hedges, ditches one can insert beams in the wall up to ½
and drains shall be borne by ALL the thickness
owners of the lands or tenements
EXCEPT: if the defects were occasioned THE EASEMENT OF LIGHT AND VIEW—
only by one owner 1. NATURE OF THE EASEMENT
b. An owner may exempt himself from a. POSITIVE: Opening a window through a

contributing to the expenses by party wall
renouncing his part-ownership,
UNLESS the party wall supports a When a part owner of a party wall opens
building he owns a window therein, such act implies the
exercise of the right of ownership by the
Renunciation refers not only to the wall, use of the entire thickness of the wall = 207
but also to the land on which it is invasion of the right of the other part
PROPERTY
constructed. owners / violation of the right to
proportional use of the party wall.
c. An owner of a building supported by a
party wall who desires to demolish his b. NEGATIVE: Formal prohibition upon the
building, may also renounce his part owner of the adjoining land or tenement
ownership of the wall.
When a person opens a window on his
BUT he must still bear the cost of all the own building, he does nothing more than
repairs and work necessary to prevent exercise an act of ownership on his
any damage to the party wall. property.
 Does not establish an easement
d. Every owner may increase the height
of the wall, at his own expense and Coexistent is the right of the owner of
paying for damages caused by the work. the adjacent property to build on his own
He must also pay for: land, even if such structures cover the
 Expenses of maintaining the wall in window
the part newly raised, or deepened
foundation If the adjacent owner does not build
 Indemnity for increased expenses structures to obstruct the window, such
necessary for the preservation of is considered mere tolerance and NOT a
the wall by reason of the greater waiver of the right to build.
height or depth which has been
given it An easement is created only when the
 Reconstruction expenses in case owner opens up a window prohibits or
the party wall cannot bear the restrains the adjacent owner from doing
increased height. anything, which may tend to cut off or
 If increased thickness is needed, the interrupt the light + prescriptive period
owner shall give the space required
from his own land 2. EASEMENT vs. DIRECT VIEW
 Other owners may acquire part o Acquired by the person who opens the
ownership of the increased height, window
depth or thickness of the wall, by o The following structures cannot be built
paying proportionately the value of without following the prescribed
the work at the time of the distances
acquisition, and of the land for its  Window, apertures, balconies and
increased thickness other projections with a direct view
upon or towards an adjoining land
e. Part-owners may use the party wall IN must have a distance of 2 METERS
PROPORTION to the right he may have between the wall and the contiguous
in the co-ownership, without interfering property.
with the common and respective uses of
the others.

lOMoARcPSD|3291925
 For structures with a side or oblique  With iron grating imbedded in the
view (at an angle from the boundary wall
line), there should be a distance of  With a wire screen
60 centimeters. o But owner of the adjoining estate can
close the opening if:
 Measured from:  He acquires part ownership of the
 The outer line of the wall if the party wall
openings do not project  He constructs a building or raises a
 The outer line of the openings if wall on his land, unless an
they project easement of light has been acquired
 The dividing line between the o If requirements are not complied with,
two properties in cases of the owner of the adjoining estate may
oblique view compel the closure of the opening.
 If distances are not complied o The action to compel the closing of the
with: opening may prescribe, if the opening is
 Windows are considered permitted without protest. 208
unlawful openings  BUT prescription of the action to
PROPERTY
 Owner may be ordered by the compel the closure of the opening
Court to close them DOES NOT MEAN that the
 Even if the adjoining owner servitude of light and view has been
does not object to the acquired.
construction of such structures  Period of acquisitive prescription will
at first, he cannot be held to be only start to run from the time the
in estoppel, except if 10-year owner asserting the servitude has
period of acquisitive prescription forbidden the owner of the adjoining
has passed. tenement from doing something he
 Does not give rise to could lawfully do.
prescription  THUS, although the action to
 Mere opening of the window in compel the closure might have
violation of the distances does prescribed, the owner of the
not give rise to the easement of adjoining estate may still build on
light and view by prescription his own land a structure which might
obstruct the view.
o In buildings separated by a public way
or alley, not less than 3 meters wide, the THE EASEMENT OF DRAINAGE OF
distances required (2 m, 60 cm) do not BUILDINGS
apply.
o If an easement is acquired to have direct Article 674, Civil Code. The owner of a building shall
views, balconies or belvederes, the be obliged to construct its roof or covering in such
owner of the servient estate must not manner that the rain water shall fall on his own land or
build at less than 3 meters from the on a street or public place, and not on the land of his
neighbor, even though the adjacent land may belong
boundary line of the two tenements.
to two or more persons, one of whom is the owner of
 The distances may be stipulated by the roof.
the parties, but should not be less
than what is prescribed by the law Even if it should fall on his own land, the owner shall
(2 meters and 60 cm) be obliged to collect the water in such a way as not to
cause damage to the adjacent land or tenement.
3. EXCEPTION TO EASEMENT vs. DIRECT
VIEW Article 675, Civil Code. The owner of a tenement or
o Owners of a wall (not a party wall) a piece of land, subject to the easement of receiving
water falling from roofs, may build in such manner as
adjoining a tenement of another can
to receive the water upon his own roof or give it
make openings to admit light without another outlet in accordance with local ordinances or
complying with the distance customs, and in such a way as not to cause any
requirements SO LONG AS: nuisance or damage whatever to the dominant estate.
 Openings are made at the height of
the ceiling joists (horizontal beams) Article 676, Civil Code. Whenever the yard or court
or immediately under the ceiling of a house is surrounded by other houses, and it is
 Size: 30 cm square not possible to give an outlet through the house itself
to the rain water collected thereon, the establishment

lOMoARcPSD|3291925
of an easement of drainage can be demanded, giving renounced by stipulation on the part of the adjoining
an outlet to the water at the point of the contiguous proprietors.
lands or tenements where its egress may be easiest,
and establishing a conduit for the drainage in such In the absence of regulations, such precautions shall
manner as to cause the least damage to the servient be taken as may be considered necessary, in order to
estate, after payment of the property indemnity. avoid any damage to the neighboring lands or
tenements.
1. Regulating the disposal of rain water
a. Owner of a building is obliged to Article 679, Civil Code. No trees shall be planted
near a tenement or piece of land belonging to another
construct a roof or covering so as to
except at the distance authorized by the ordinances or
ensure that the rain water shall fall on customs of the place, and, in the absence thereof, at
his own land, or on a street or public a distance of at least two meters from the dividing line
place, and NOT on the land of his of the estates if tall trees are planted and at a distance
neighbor. of at least fifty centimeters if shrubs or small trees are
b. Owner is also obliged to collect the war planted.
falling on his own land so as not to 209
cause damage to adjacent tenements Every landowner shall have the right to demand that
PROPERTY
2. Rain water is res nullius, and has no owner. trees hereafter planted at a shorter distance from his
land or tenement be uprooted.
This article merely imposes a limitation on
the use of one’s property, so that rain water The provisions of this article also apply to trees which
falling thereon may not cause damage. have grown spontaneously.
3. Obligation to collect water (#2) is an
exception to the rule requiring lower Article 680, Civil Code. If the branches of any tree
tenements to receive water flowing from should extend over a neighboring estate, tenement,
higher tenements. garden or yard, the owner of the latter shall have the
right to demand that they be cut off insofar as they
EASEMENT GIVING AN OUTLET TO THE may spread over his property, and, if it be the roots of
a neighboring tree which should penetrate into the
WATER THROUGH CONTIGUOUS
land of another, the latter may cut them off himself
ESTATES— within his property.
o Requisites:
a. Yard or court of a house is surrounded Art. 681, Civil Code. Fruits naturally falling upon
by other houses adjacent land belong to the owner of said land.
b. Water is collected thereon
c. Not possible to give an outlet through 1. SUMMARY
the house itself CONSTRUCTIONS may be built only after
d. Establishment of conduit for drainage complying with prescribed regulations
must be at a point where egress is (special laws, ordinances, regulations):
easiest and where it will cause the least a. Constructions or plantings near fortified
damage to the servient estate places or fortresses
e. After payment of proper indemnity b. Aqueduct, well, sewer, furnace, forge,
chimney, stable, depository of corrosive
INTERMEDIATE DISTANCES AND WORKS substances, machinery, factory (with
FOR CERTAIN CONSTRUCTIONS AND dangerous and noxious substances)
PLANTINGS—  Distances must be observed and
protective works necessary for the
Article 677, Civil Code. No constructions can be built conditions must be made
or plantings made near fortified places or fortresses c. Trees planted near a tenement or piece
without compliance with the conditions required in
of land
special laws, ordinances, and regulations relating
thereto  In the absence of ordinances or
customs of the place:
Article 675, Civil Code. No person shall build any (1) TALL TREES: At a distance of
aqueduct, well, sewer, furnace, forge, chimney, at least 2 meters from the
stable, depository of corrosive substances, dividing line of the estates
machinery, or factory which by reason of its nature or
products is dangerous or noxious, without observing (2) SHRUBS/SMALL TREES: At
the distances prescribed by the regulations and least 50 cm from the dividing
customs of the place, and without making the
line
necessary protective works, subject, in regard to the
manner thereof, to the conditions prescribed by such
regulations. These prohibitions cannot be altered or

lOMoARcPSD|3291925
 If trees are planted at a shorter o Material impairment depends on the

distance, landowner may demand nature and purpose of the tenement e.g.
that it be uprooted dwelling house vs. factory
o Degree of annoyance to be tolerated
2. Plantings Encroaching on Adjoining depends on what is usual for a specific
Estates locality.
a. Branches of any tree extending over a
neighboring estate, garden, etc. Article 683, Civil Code. Subject to zoning, health,
police and other laws and regulations, factories and
Owner of the adjoining estate has the shops may be maintained provided the least possible
right to demand that they be cut off annoyance is caused to the neighborhood.
insofar as they may spread over his
property.
EASEMENT OF LATERAL AND SUBJACENT
b. Roots of a neighboring tree which SUPPORT—
should penetrate into the land of another 210
o Owner may cut the roots off himself Article 684, Civil Code. No proprietor shall make
PROPERTY
within his property, even without such excavations upon his land as to deprive any
notice to the owner of the trees adjacent land or building of sufficient lateral or
subjacent support.
o Roots, by accession are converted
into the property of the owner of the
land into which they penetrate. 1. An owner cannot make such excavations as
o Also, cutting off the roots will not to deprive any adjacent land or building of
give the cutter any benefit, in sufficient lateral or subjacent support
contrast to cutting off the branches
of a tree. 2. LATERAL SUPPORT
o PRESCRIPTION OF ACTION TO a. Limitation on the right to excavate on his
CUT: Period only starts to run after own land: one cannot excavate so close
the owner of the estate has to an adjoining estate as to deprive it of
demanded that the owner of the natural support and cause it to crumble.
trees cut off the branches or roots, b. Not necessary that the excavation is
and the latter refuses. made on the lot immediately adjoining. It
 The fact that the owner does not is sufficient if the excavation results in a
cut off the trees only constituted slide in the plaintiff’s property
mere tolerance. c. An owner who makes excavations can
either:
c. Fruits naturally falling upon adjacent  Observe a sufficient distance to
land belong to the owner of the land permit the necessary lateral support
o Not by right of occupation but by of adjoining land
principle of accession.  Support the latter artificially through
o Owner of the tree retains ownership: walls, etc.
 If he picks the fruits from the
branches which invade the 3. SUBJACENT SUPPORT
neighboring tenement a. Exists when there is severance of
 If fruits fall on immovables for ownership (surface owner vs. substrata
public use (not considered as owner) as in mines and tunnels.
fruits of these b. The owners of the rights below the
surface are burdened with the easement
to refrain from removing such sufficient
THE EASEMENT AGAINST NUISANCES— support which will protect the surface
from subsidence or sinking, and keep it
Article 682, Civil Code. Every building or piece of securely at its original level.
land is subject to the easement which prohibits the
proprietor or possessor from committing nuisance 4. REMEDIES FOR VIOLATION
through noise, jarring, offensive odor, smoke, heat, a. Action for Damages against the one who
dust, water, glare and other causes. made the excavation, whether owner or
contractor, etc.

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b. Injunction
 Restraining the owner from
excavating so as to deprive the land
of natural support
 Will prohibit merely any excavation
which shall cause the plaintiff’s land
to fall away due to withdrawal of
support
5. OTHER RULES:
a. Stipulations or testamentary provisions
allowing excavations that cause danger
to adjacent land or building is VOID.
b. Also applicable to future constructions
c. Any proprietor intending to make any
excavation shall notify all owners of 211
adjacent lands.
PROPERTY
 Notice must sufficiently inform the
adjoining owner of the nature and
extent of the proposed excavation,
so as to enable the owner to take
the necessary precautions to protect
his property.
 No formal notice is necessary if the
adjoining owner already has actual
knowledge of such excavation.
 But giving notice does not absolve
the excavator from the duty to
exercise reasonable care to avoid
injury to neighbors.

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CIVIL LAW REVIEWER Chapter IX. NUISANCE
Examples as enumerated under CC—

Chapter IX. Nuisance 1) Injury to health – Any business,
although itself lawful, which necessarily
I. DEFINITION
II. CLASSES
impregnates large volumes of the
III. LIABILITY IN CASE OF NUISANCE atmosphere with disagreeable,
IV. REGULATION OF NUISANCE unwholesome or offensive matter, may
become a nuisance to those occupying
adjacent property, in case it is so near,
I. Definition
and the atmosphere is contaminated to
Article 694, Civil Code. A nuisance is any act, such an extent as substantially to impair
omission, establishment, business, condition of the comfort and enjoyment of adjacent
property, or anything else which:
1. Injures or endangers the health or safety of
occupants.
others; or 2) Dangerous to safety – manufacture,
2. Annoys or offends the senses; or storing or keeping of explosives in large
3. Shocks, defies or disregards decency or morality; quantities in the vicinity of dwelling
or houses or excavation adjoining a public 212
4. Obstructs or interferes with the free passage of highway
PROPERTY
any public highway or street, or any body of 3) Annoyance to senses –
water; or slaughterhouses and cowhide storage
5. Hinders or impairs the use of property. vats from which emanated vile and
offensive odors; noise of animals kept in
To constitute a nuisance there must be an residential neighborhood
arbitrary or abusive use of property or disregard o To be judged by the effect they are
of commonly accepted standards set by society. calculated to produce upon
ordinary people under normal
Nuisance v. Trespass— circumstances, not by their effect
upon the oversensitive, the
Nuisance Trespass
fastidious or the sick, nor, on the
Use of one’s own
other hand, by their effect upon
property in such a
manner as to cause injury those who are abnormally
to the property or right or Direct infringement of indifferent to such things, or who by
interest of another, and another’s right of long experience have learned to
generally results from the property. endure them without
commission of an act inconvenience.
beyond the limits of the o Inconvenience must be materially
property affected. interfering with the ordinary
Injury is consequential Injury is immediate comfort, physically, of human
existence.
Nuisance v. Negligence— 4) Shocking to decency – bawdy or
disorderly house; building used for either
Nuisance Negligence lewdness or of assignation or
Whether it was prostitution
unreasonable for the Whether the defendant’s
5) Hinders or impairs the use of
defendant to act as he use of his property was
did in view of the unreasonable as to property – illegal construction on
threatened danger or plaintiff, without regard to another’s land
harm to one in plaintiff’s foreseeability of injury.
position.
Liability for the resulting II. Classes
injury to others
Liability is based on a Art. 695, Civil Code. Nuisance is either public or
regardless of the degree
want of proper care private. A public nuisance affects a community or
of care or skill exercised
to avoid such injury. neighborhood or any considerable number of persons,
Principles ordinarily apply although the extent of the annoyance, danger or
where the cause of action Principles ordinarily apply damage upon individuals may be unequal. A private
is for continuing harm where the cause of action nuisance is one that is not included in the foregoing
caused by continuing or is for harm resulting from definition.
recurrent acts which one act which created an
cause discomfort or unreasonable risk of 1. According to Nature (old classification)
annoyance to plaintiff in injury. a. Nuisance per se or at law
the use of his property.

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o An act, occupation or structure 3. Doctrine of Attractive Nuisance

which is a nuisance at all times and o One who maintains on his premises
under any circumstances, dangerous instrumentalities or
regardless of location or appliances of a character likely to attract
surroundings. children in play, and who fails to
exercise ordinary care to prevent
b. Nuisance per accidens or in fact children from playing therewith or
o One that becomes a nuisance by resorting thereto, is liable to a child of
reason of circumstances and tender years who is injured thereby,
surroundings. even if the child is technically a
o It is not a nuisance by its nature but trespasser in the premises.
it may become so by reason of the o Basis of liability – The attractiveness is
locality, surrounding, or the manner an invitation to children. Safeguards to
in which it is conducted, managed, prevent danger must therefore be set
etc. up.
213
Per se Per accidens
PROPERTY
A swimming pool or water tank is not an attractive
The wrong is established nuisance, for while it is attractive, it cannot be a
by proof of the mere act. Proof of the act and its nuisance, being merely an imitation of the work of
It becomes a nuisance consequences. nature. (Hidalgo Enterprises v. Balandan)
as a matter of law.
III. Liability in Case of Nuisance

2. According to Scope of Injurious Effects
o Test: not the number of persons o Who are liable
annoyed but the possibility of
annoyance to the public by the invasion Art. 696, Civil Code. Every successive
of its rights – the fact that it is in a public owner or possessor of property who fails or
refuses to abate a nuisance in that property
place and annoying to all who come started by a former owner or possessor is
within its sphere. liable therefor in the same manner as the
one who created it.
a. Public
o The doing of or the failure to do o Liability of creator of nuisance: He who
something that injuriously affects the creates a nuisance is liable for the resulting
safety, health or morals of the damages and his liability continues as long
public. as the nuisance continues.
o It causes hurt, inconvenience or  There must be a breach of some duty on
injury to the public, generally, or to the part of the person sought to be held
such part of the public as liable for damages resulting from a
necessarily comes in contact with it. nuisance before an action will lie against
b. Private him.
o One which violates only private  No one is to be held liable for a
rights and produces damages to but nuisance which he cannot himself
one or a few persons. physically abate without legal action
against another for that purpose.
Public Private  Where several persons, acting
Affects the individual or a
independently, cause damage by acts
Affects the public at large limited number of
individuals only which constitute a nuisance, each is
Need not affect the whole liable for the damage which he has
community or hurt and caused or for his proportionate share of
injure all the public. It is the entire damage.
sufficient if it affects the o Liability of transferees: The grantee of
surrounding community land upon which there exists a nuisance
generally or if the injury is created by his predecessors in title is NOT
occasioned to such part responsible therefore merely because he
of the public as come in becomes the owner of the premises, or
contact with it.
merely because he permits it to remain.
 He shall be liable if he knowingly
c. Mixed
continues the nuisance. Generally, he is

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not liable for continuing it in its original a. Criminal prosecution: Only for a public
form, unless he has been notified of its nuisance, not for a private one.
existence and requested to remove it, or  Public nuisances are offenses
has actual knowledge that it is a against the State, and since early
nuisance and injurious to the rights of times it has been held that one who
others. is responsible for this may be
o Nature of liability: All persons who proceeded against criminally by
participate in the creation or maintenance of indictment.
a nuisance are jointly and severally liable for  Question of intent is immaterial.
the injury done.  Persons liable – person is liable for
 If 2 or more persons who create or the consequence which his act
maintain the nuisance act entirely produced
independent of one another, and without
any community of interest, concert of b. Civil action:
action, or common design, each is liable 1) Judgment with abatement –
only so far as his acts contribute to the defendant convicted of maintain a 214
injury. nuisance may also be ordered to
PROPERTY
 For joint liability, there must be some abate the nuisance
joint or concurrent act or community of 2) Injunction – where the injury
action or duty, or the several wrongful occasioned by an indictable
acts done at several times must have nuisance is pressing or imminent, so
concurred in their effects as one single that the public safety is menaced or
act to produce the injury complained of. public rights are obstructed or
interfered with, and the special
o Right to recover damages circumstances are such that the
ordinary process of the court is not
Art. 697, Civil Code. The abatement of a sufficiently prompt or effective to
nuisance does not preclude the right of any prevent the injury or obstruction, the
person injured to recover damages for its remedy can be injunction provided
past existence. the right is clear and the wrong has
not been acquiesced in by the
 Abatement and damages are plaintiff.
cumulative remedies.
c. Extrajudicial abatement: This right is
o No Prescription based upon necessity which must be
present to justify its exercise.
Art. 698, Civil Code. Lapse of time cannot  It must be reasonably and efficiently
legalize any nuisance, whether public or
exercised, means employed must
private.
not be unduly oppressive on
individuals, and no more injury must
 The action to abate a public or private
be done to the property or rights of
nuisance is NOT extinguished by
individuals than is necessary to
prescription. (Art. 1143[2])
accomplish the abatement.
 No right to compensation if property
taken or destroyed is a nuisance.
IV. Regulation of Nuisances
2. Who can file an action for abatement
A. PUBLIC NUISANCE
Article 700, Civil Code. The district health officer
1. Remedies to abate a nuisance shall take care that one or all of the remedies against
a public nuisance are availed of.
Article 699, Civil Code. The remedies against a
public nuisance are: Article 701, Civil Code. If a civil action is brought by
1. A prosecution under the Penal Code or any local reason of the maintenance of a public nuisance, such
ordinance: or action shall be commenced by the city or municipal
2. A civil action; or mayor.
2. (3) Abatement, without judicial proceedings.
Article 702, Civil Code. The district health officer
shall determine whether or not abatement, without
judicial proceedings, is the best remedy against a

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public nuisance. only so much of the objectionable thing

as actually causes the nuisance.
Article 703, Civil Code. A private person may file an e. Abatement must be approved by the
action on account of a public nuisance, if it is specially district health officer.
injurious to himself.
f. Property must not be destroyed unless it
is absolutely necessary to do so.
a. General rule: Individual has no right of g. Right must always be exercised with the
action against a public nuisance. The assistance of local police so as not to
abatement proceedings must be disturb the public peace.
instituted in the name of the State or its
representatives. B. PRIVATE NUISANCE
b. Except: An individual who has suffered
some special damage different from that
sustained by the general public, may Article 705, Civil Code. The remedies against a
maintain a suit in equity for an injunction private nuisance are:
to abate it, or an action for damages 1. A civil action; or 215
which he has sustained. 2. Abatement, without judicial proceedings.
PROPERTY
 Action becomes a tort if an
individual has suffered particular Article 706, Civil Code. Any person injured by a
harm, in which case the nuisance is private nuisance may abate it by removing, or if
treated as a private nuisance with necessary, by destroying the thing which constitutes
the nuisance, without committing a breach of the
respect to such person.
peace or doing unnecessary injury. However, it is
indispensable that the procedure for extrajudicial
3. Requisites of the right of a private abatement of a public nuisance by a private person be
individual to abate a public nuisance followed.
Article 704, Civil Code. Any private person may Article 707, Civil Code. A private person or a public
abate a public nuisance which is specially injurious to official extrajudicially abating a nuisance shall be
him by removing, or if necessary, by destroying the liable for damages:
thing which constitutes the same, without committing 1. If he causes unnecessary injury; or
a breach of the peace, or doing unnecessary injury. 2. If an alleged nuisance is later declared by the
But it is necessary: courts to be not a real nuisance.
1. That demand be first made upon the owner or
possessor of the property to abate the nuisance; a. Action for damages: Recovery is
2. That such demand has been rejected; limited to the damage occasioned up to
3. That the abatement be approved by the district
the time of the commencement of the
health officer and executed with the assistance of
the local police; and action.
4. That the value of the destruction does not exceed  If nuisance continues to the time of
three thousand pesos. trial, then damages shall be
computed from that time.
a. The right must be exercised only in  If nuisance is permanent, a single
cases of urgent or extreme necessity. action is enough to cover both past
The thing alleged to be a nuisance must and prospective damages. If
be existing at the time that it was alleged temporary or recurrent, each
to be a nuisance. repetition of it gives rise to a new
b. Summary abatement must be resorted cause of action and successive
to within a reasonable time after actions will lie.
knowledge of the nuisance is acquired
or should have been acquired by the b. Defenses to action:
person entitled to abate. 1) Public necessity – private interest
c. Person who has the right to abate must must yield to the public good;
give a reasonable notice of his intention creation of nuisance amounts to
to do so, and allow thereafter a taking of property therefore just
reasonable time to enable the other to compensation must be made.
abate the nuisance himself. 2) Estoppel – one who voluntarily
d. Means employed must reasonable and places himself in a situation
for any unnecessary damage or force, whereby he suffers an injury will not
the actor will be liable. Right to abate is be heard to say that his damage is
not greater than the necessity of the due to a nuisance maintained by
case and is limited to the removal of another.

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3) Non-existence of the nuisance

4) Impossibility of abatement
c. Liability of person abating: Whoever

abates an alleged nuisance and thus
destroys or injures private property, or
interferes with private rights, whether a
public officer or private person, unless
he acts under the order of a court having
jurisdiction, does so at his peril.
d. Remedies of property owner: A

person whose property is seized or
destroyed as a nuisance may resort to
the courts to determine w/n it was in fact
a nuisance. 216
1) Action for replevin
PROPERTY
2) Enjoin the sale or destruction of the
property
3) Action for the proceeds of its sale
and damages if it has been sold
4) Enjoin private parties from
proceeding to abate a supposed
nuisance

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CIVIL LAW REVIEWER Chapter X. MODES of ACQUIRING OWNERSHIP
Chapter X. Modes of Acquiring II. Mode

Ownership
A. ORIGINAL
I. MODE V. TITLE
II. MODES Original modes of acquisition are those which
A. ORIGINAL MODES produce the acquisition of ownership
1. OCCUPATION
independent of any preexisting right of another
2. INTELLECTUAL CREATION
B. DERIVATIVE MODES person, hence, free from burdens or
1. LAW encumbrances.
2. DONATION
3. SUCCESSION 1. OCCUPATION
4. ACQUISITIVE PRESCRIPTION
5. TRADITION Article 713, Civil Code. Things appropriable by
nature which are without an owner, such as animals
that are the object of hunting and fishing, hidden 217
treasure and abandoned movables, are acquired by
I. Mode v. Title
PROPERTY
occupation.
Article 712, Civil Code. Ownership is acquired by  Requisites:

occupation and by intellectual creation. o Corporeal personal property
Ownership and other real rights over property are
acquired and transmitted by law, by donation, by
o Property susceptible of
testate and intestate succession, and in consequence appropriation – not res communes
of certain contracts, by tradition. o Seizure with intent to appropriate
o Res nullius (no owner) or res
They may also be acquired by means of prescription. derelict (abandoned property)
o Observance of conditions
 Mode is a specific cause which produces prescribed by law
dominion and other real rights as a result of
the co-existence of special status of things,  Kinds:
capacity and intention of persons and o Of Animals
fulfillment of the requisites of law.  Wild or feral animals – seizure
(hunting/fishing) in open season
 Title is every juridical right which gives a by means NOT prohibited
means to the acquisition of real rights but in  Tamed/domesticated animals –
itself is insufficient to produce them. general rule: belong to the
tamer but upon recovering
 Ownership is not transferred by contract freedom are susceptible to
merely but by tradition or delivery. Contracts occupation UNLESS claimed
only constitute titles or rights to transfer or within 20days from seizure by
acquisition of ownership, while delivery is another (ART. 716)
the mode accomplishing the same.  Tame/domestic animals – not
acquired by occupation
 Distinctions: EXCEPT when ABANDONED
Mode Title o Of Other Personal Property

Directly and immediately
Serves merely to give the  Abandoned – may be acquired
produces a real right
occasion for its  Lost – not known to be
acquisition or existence abandoned (ART. 719)
Cause Means  Hidden treasure – finder gets ½
Proximate cause Remote cause
by occupation; landowner gets
Essence of the right
Means whereby that ½ by accession; EXCEPT in
which is to be created or
“essence” is transmitted CPG system, share goes to the
transmitted
partnership

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 Specific rules property shall have the right

o Not applicable to ownership of a granted him in article 438 of this
piece of land Code.
 The ownership of a piece of o Lost movables; procedure after
land cannot be acquired by finding lost movables
occupation. (Article 714, Civil  Art. 719, CC
Code)  Whoever finds a movable,
 State owns a piece of land which is not treasure, must
which has no owner therefore it return it to its previous
cannot be acquired by possessor. If the latter is
occupation. unknown, the finder shall
immediately deposit it with
o Privilege to hunt and fish regulated the mayor of the city or
by special law municipality where the
 Article 715, Civil Code. The finding has taken place.
right to hunt and to fish is  The finding shall be publicly 218
regulated by special laws. announced by the mayor for
PROPERTY
two consecutive weeks in
o Occupation of a swarm of bees or the way he deems best.
domesticated animals  If the movable cannot be
 Article 716, Civil Code. The kept without deterioration, or
owner of a swarm of bees shall without expenses which
have a right to pursue them to considerably diminish its
another’s land, indemnifying the value, it shall be sold at
possessor of the latter for the public auction eight days
damage. If the owner has not after the publication.
pursued the swarm, or ceases  Six months from the
to do so within two consecutive publication having elapsed
days, the possessor of the land without the owner having
may occupy or retain the same. appeared, the thing found,
The twenty days to be counted or its value, shall be
from their occupation by another awarded to the finder. The
person. This period having finder and the owner shall
expired, they shall pertain to him be obliged, as the case may
who has caught and kept them. be, to reimburse the
expenses.
 Article 560, Civil Code. Wild  Article 720, CC. If the owner
animals are possessed only should appear in time, he shall
while they are under one's be obliged to pay, as a reward
control; domesticated or tamed to the finder, one-tenth of the
animals are considered sum or of the price of the thing
domestic or tame if they retain found.
the habit of returning to the
premises of the possessor. 2. INTELLECTUAL CREATION
o Pigeons and fish Article 721, Civil Code. By intellectual creation, the
 Article 717, Civil Code. following persons acquire ownership:
Pigeons and fish which from 1. The author with regard to his literary, dramatic,
historical, legal, philosophical, scientific or other
their respective breeding places work
pass to another pertaining to a 2. The composer; as to his musical composition;
different owner shall belong to 3. The painter, sculptor, or other artist, with respect
the latter, provided they have to the product of his art;
not been enticed by some 4. The scientist or technologist or any other person
artifice or fraud. with regard to his discovery or invention.
o Hidden treasure Article 722, Civil Code. The author and the
 Article 718, Civil Code. He composer, mentioned in Nos. 1 and 2 of the
preceding article, shall have the ownership of their
who by chance discovers creations even before the publication of the same.
hidden treasure in another’s Once their works are published, their rights are

lOMoARcPSD|3291925
governed by the Copyright laws. o Statutory copyright
The painter, sculptor or other artist shall have 2. TRADEMARKS, TRADE NAMES and
dominion over the product of his art even before it is SERVICE MARKS
copyrighted.
 Definitions under the Trademark Law
The scientist or technologist has the ownership of his (RA 166):
discovery or invention even before it is patented. o Trademark - any word, name,
symbol, emblem, sign or device or
Article 723, Civil Code. Letters and other private any combination thereof adopted
communications in writing are owned by the person to and used by a manufacturer or
whom they are addressed and delivered, but they merchant to identify his goods and
cannot be published or disseminated without the distinguish them from those
consent of the writer or his heirs. However, the court
manufactured, sold or dealt in by
may authorize their publication or dissemination if the
public good or the interest of justice so requires.
others.
o Trade-name - individual names and
surnames, firm names, trade-
219
Article 724, Civil Code. Special laws govern
names, devices or words used by
PROPERTY
copyright and patent.
manufacturers, industrialists,
 Dual interest in letters (ART. 723): merchants, agriculturists, and others
o From the viewpoint of the to identify their business, vocations
SENDER/WRITER – the intellectual or occupations
property consists in the ideas and o Service mark - mark used in the
thoughts expressed therein. sale or advertising of services to
o From the viewpoint of the identify the services of one person
RECIPIENT – the paper or material and distinguish them from the
used where the writing was services of others
impressed or done, pertains in
ownership to the recipient. 3. GEOGRAPHIC INDICATIONS of ORIGIN
 False designation of origin is punishable
 Intellectual Property Code of 1997 under ART. 189 of RPC
(RA 8293) is the special law which
governs copyright and patent 4. INDUSTRIAL DESIGNS
 Any composition of lines and colors or
INTELLECTUAL PROPERTY RIGHTS any 3-dimensional form, w/n associated
with lines and colors
1. COPYRIGHT and RELATED RIGHTS 5. PATENTS
 Copyright  An exclusive right to invention granted to
o an intangible, incorporeal right a patentee, his heirs or assigns for the
o granted by statute term thereof
o to the author or originator of certain  Essential elements of an invention to
literary or artistic productions, be patentable:
o whereby he is invested, for a o Novelty
specific period, o Prior art
 30 YRS. renewable for another  Requisites:
30 YRS. o There must be an invention
 40 YRS for SERIAL publications o Of a new and useful machine,
st
from the publication of the 1 product/substance of possible
volume renewable for 30 YRS. advantage to the public
o with the sole and exclusive privilege o Not previously known or used or
of multiplying copies of the same described in printed publications or
and publishing and selling them. in public use or on sale in the Phils.
 Purpose of the law: protect and control or covered by prior patent
the visible thing created and the o Includes new and original industrial
intangible estate arising from the designs
privilege of publishing and selling to o NOT patentable if:
others copies of the thing produced  Contrary to public order, morals,
public health or welfare
 Kinds  Abstract idea/principle/theorem
o Common law copyright

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6. TOPOGRAPHIES of INTEGRATED o Public

CIRCUITS o Peaceful
7. RIGHTS of PERFORMERS, PRODUCERS o Uninterrupted
of SOUND RECORDINGS and o Adverse
BROADCASTING ORGANIZATIONS
8. PROTECTION of UNDISCLOSED  ACQUISITIVE v. EXTINCTIVE
INFORMATION
_______________ Acquisitive
Extinctive Prescription
Prescription
vests the property and
B. DERIVATIVE raise a new title in the Statute of limitation
occupant
Derivative modes of acquiring ownership are Positive action of the Inaction or neglect of the
possessor owner
based on a right previously held by another
person, and therefore, subject to the same
characteristics, powers, burdens, etc. as when  Requisites common to ordinary and 220
held by previous owner. extraordinary acquisitive
PROPERTY
prescription:
1. LAW – should be interpreted to apply only to o Capacity of the acquirer
situations where ownership is vested o Capacity of the loser to lose by
independently of the other modes prescription
o Object susceptible to prescription
2. DONATION – see next chapter o Lapse of required time
 Ordinary acquisitive
3. SUCCESSION MORTIS CAUSA - Movable property – 4yrs
- Immovable – 10yrs
Article 774, Civil Code. Succession is a mode of  Extraordinary acquisitive
acquisition by virtue of which the property, rights and - Movable – 8yrs
obligations to the extent of the value of the - Immovable – 30yrs
inheritance, of a person are transmitted through his
death to another or others either by his will or by  Additional requirements for ordinary
operation of law. acquisitive prescription:
o Good faith
Article 776, Civil Code. The inheritance includes all
the property, rights and obligations of a person which o Just title
are not extinguished by his death
5. TRADITION
Article 777, Civil Code. The rights to the succession  Requisites:
are transmitted from the moment of the death of the o Pre-existence of right in estate of
decedent. grantor
o Just cause or title for the
 Elements of Succession: transmission
o Transmission of property, rights and o Intention
obligations to another o Capacity
o Cause of transmission is the DEATH o Act of giving it outward form,
of the decedent physically, symbolically or legally
o Procedure of transmission is by
WILL or OPERATION of LAW  Kinds:
o ACCEPTANCE of the inheritance by o Real tradition – PHYSICALY
the heir DELIVERY of the thing; actual
 Rights to the succession are vested as transfer of control and possession
of the MOMENT of DEATH of the with intent to pass ownership or real
decedent right over the property
 Movable – hand to hand transfer
4. (ACQUISITIVE) PRESCRIPTION of the thing
 Mode of acquiring ownership through  Immovable – material acts
the lapse of time in the manner and performed by grantee
under the conditions laid down by law
 Possession should be:
o In the concept of an owner

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o Constructive tradition – NOT the real

or material delivery of the thing that
may take place in any of the ff:
 Symbolic delivery – delivery of
signs or things which represent
that which is being transmitted
 Delivery of public instrument
– substitution of the real delivery
of possession by a public writing
with delivery of document
 Traditio longa manu – pointing
of the thing within sight by
grantor to grantee
 Traditio brevi manu –
grantee’s continuous
possession over the thing 221
delivered but now under the title
PROPERTY
of ownership
 Traditio constitutum
possessorium – owner
remains in possession of the
thing but in another concept
 Quasi-tradition – delivery of
incorporeal things or rights by
the grantee of his right with the
owner’s consent
 Tradition by operation of law

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CIVIL LAW REVIEWER Chapter XI. DONATION
 Irrevocable EXCEPT for the ff grounds:

Chapter XI. Donation o Subsequent birth of the donor’s
I. NATURE
children
II. REQUISITES o Donor’s failure to comply with
III. KINDS imposed conditions
IV. WHO MAY GIVE OR RECEIVE DONATIONS o Donee’s ingratitude
V. WHO MAY NOT GIVE OR RECEIVE o Reduction of donation by reason of
DONATIONS inofficiousness
VI. ACCEPTANCE  NO OPTION to revoke AT WILL before
VII. FORM the donor dies
VIII. WHAT MAY BE DONATED
IX. EFFECT
X. REVOCATION AND REDUCTION 2. MORTIS CAUSA
Article 728, Civil Code. Donations which are to take

I. Nature effect upon the death of the donor partake of the
 BILATERAL contract creating nature of testamentary provisions, and shall be 222
UNILATERAL obligations on the donor’s governed by the rules established in the Title on
PROPERTY
part Succession.
 Requires CONSENT of BOTH donor
and donee though it produces  Becomes effective upon the death of
obligations only on the side of the donor
DONOR  Donor’s death ahead of the donee is a
SUSPENSIVE CONDITION for the
existence of the donation
II. Requisites
 Characteristics:
 CONSENT and CAPACITY of the o Transferor retains ownership and
parties control of the property while alive
 ANIMUS DONANDI (intent to donate) o Transfer is revocable at will before
 DELIVERY of thing donated his death
 FORM as prescribed by law o Transfer will be VOID if the
 IMPOVERISHMENT of donor’s transferor should survive the
patrimony and ENRICHMENT on part of transferee
done
 INTER VIVOS v. MORTIS CAUSA
III. Kinds
Inter vivos Mortis causa
A. As to its taking effect Must be in the
form of a will, with
Executed and all the formalities
1. INTER VIVOS accepted with for the validity of
As to
formalities wills
Article 729, Civil Code. When the donor intends formalities
prescribed by CC Otherwise, it’s
that the donation shall take effect during the lifetime of 748 & 749 void and cannot
the donor, though the property shall not be delivered transfer
till after the donor's death, this shall be a donation ownership.
inter vivos. The fruits of the property from the time of Effective during Effective after the
the acceptance of the donation, shall pertain to the As to
the lifetime of the death of the
donee, unless the donor provides otherwise. effectivity
donor donor
Acceptance must
Article 730, Civil Code. The fixing of an event or the be made after the
imposition of a suspensive condition, which may take death of the
place beyond the natural expectation of life of the donor, the
donor, does not destroy the nature of the act as a donation being
donation inter vivos, unless a contrary intention Acceptance must effective only
appears. As to be made during after the death of
acceptance the lifetime of the donor.
Article 731, Civil Code. When a person donates donor Acceptance
something, subject to the resolutory condition of the during the donor’s
donor's survival, there is a donation inter vivos. lifetime is
premature and
 Take effect independently of the donor’s ineffective
death because there

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can be no
contract regarding  ORDINARY v. PROPTER NUPTIAS
future inheritance
Ownership is Ordinary Propter nuptias
As to immediately Express
transfer of transferred. Ownership is Necessary Not required
acceptance
ownership Delivery of transferred after
As to Can’t be made by May be made by
for right of possession is death
minors minors minors (FC 78)
disposition allowed after
May include
death
As to future Cannot include future property
Irrevocable – may
property future property (same rule as
be revoked only Revocable upon
As to wills)
for the reasons the exclusive will
revocation No limit to If present property
provided in CC of the donor Limit as to
donation of is donated and
760, 764, 765 donation of
present property property regime is
When it is present
provided legitimes ACP, limited to
excessive or property
are not impaired 1/5 223
inofficious, being When it is
Grounds
PROPERTY
As to preferred, it is excessive or
for Law on donations FC 86
reduction or reduced only after inofficious, it is
revocation
suppression the donations reduced first, or
mortis causa had even suppressed
been reduced or ______________
exhausted
B. As to cause or consideration
NATURE of the act, whether it’s one of disposition or
of execution, is CONTROLLING to determine whether 1. SIMPLE – made out of PURE LIBERALITY
the donation is mortis causa or inter vivos. or because of the MERITS of the done
2. REMUNERATORY – made for SERVICES
What is important is the TIME of TRANSFER of already rendered to the donor
ownership even if transfer of property donated may be 3. ONEROUS – imposes a BURDEN inferior in
subject to a condition or a term.
value to property donated
a. Improper – burden EQUAL in value to
Whether the donation is inter vivos or mortis causa
depends on whether the donor intended to transfer
property donated
ownership over the properties upon the execution of b. Sub-modo or modal – imposes a
the deed. (Gestopa v. CA; Austria-Magat v. CA) prestation upon donee as to how
property donated will be applied
3. PROPTER NUPTIAS c. Mixed donations – ex: sale for price
lower than value of property
Article 82, Family Code. W hen the donor intends
that the donation shall take effect during the lifetime of A simple or pure donation is one whose cause is pure
the donor, though the property shall not be delivered liberality, while an onerous donation is one subject to
till after the donor's death, this shall be a donation burdens, charges, or future services equal to or more
inter vivos. The fruits of the property from the time of in value than the thing donated. (Lagazo v. CA)
the acceptance of the donation, shall pertain to the
donee, unless the donor provides otherwise. C. As to effectivity or extinguishment
Article 87, Family Code. Every donation or grant of 1. PURE – donation is without conditions or
gratuitous advantage, direct or indirect, between the
periods
spouses during the marriage shall be void, except
moderate gifts which the spouses may give each
2. CONDITIONAL – donation is subject to
other on the occasion of any family rejoicing. The suspensive or resolutory conditions
prohibition shall also apply to persons living together 3. WITH A TERM
as husband and wife without a valid marriage.
IV. Who May Give or Receive Donations
 Requisites
o Must be made BEFORE the Article 735, Civil Code. All persons who may
celebration of marriage contract and dispose of their property may make a
o Made in CONSIDERATION of the donation.
marriage
o Made in FAVOR of ONE or BOTH of Article 737, Civil Code. The donor's capacity shall be
the future spouses determined as of the time of the making of the
donation.

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Article 738, Civil Code. All those who are not sister, or spouse, shall be valid;
specially disqualified by law therefor may accept 4. Any attesting witness to the execution of a will,
donations. the spouse, parents, or children, or any one
claiming under such witness, spouse, parents, or
Article 741, Civil Code. Minors and others who children;
cannot enter into a contract may become donees but 5. Any physician, surgeon, nurse, health officer or
acceptance shall be done through their parents or druggist who took care of the testator during his
legal representatives. last illness;
6. Individuals, associations and corporations not
Article 737, Civil Code. Donations made to permitted by law to inherit.
conceived and unborn children may be accepted by
those persons who would legally represent them if Article 1032, Civil Code. The following are incapable
they were already born. of succeeding by reason of unworthiness:
1. Parents who have abandoned their children or
 Capacity to donate is required for donations induced their daughters to lead a corrupt or
inter vivos and NOT mortis causa immoral life, or attempted against their virtue;
o Donor’s capacity determined as of the
2. Any person who has been convicted of an 224
attempt against the life of the testator, his or her
TIME of the DONATION. Subsequent
PROPERTY
spouse, descendants, or ascendants;
incapacity is immaterial 3. Any person who has accused the testator of a
 Capacity to accept donations – ALL persons crime for which the law prescribes imprisonment
NOT disqualified by law may be donees for six years or more, if the accusation has been
found groundless;
4. Any heir of full age who, having knowledge of the
violent death of the testator, should fail to report it
V. Who May Not Give or Receive to an officer of the law within a month, unless the
Donations authorities have already taken action; this
prohibition shall not apply to cases wherein,
Article 736, Civil Code. All persons who may according to law, there is no obligation to make
contract and dispose of their property may make a an accusation;
donation.
Article 740, Civil Code. Incapacity to succeed by will
Article 739, Civil Code. The following donations shall shall be applicable to donations inter vivos.
be void:
1. Those made between persons who were guilty of Article 743, Civil Code. Donations made to
adultery or concubinage at the time of the incapacitated persons shall be void, though simulated
donation; under the guise of another contract or through a
2. Those made between persons found guilty of the person who is interposed.
same criminal offense, in consideration thereof;
3. Those made to a public officer or his wife, Article 744, Civil Code. Donations of the same thing
descedants and ascendants, by reason of his to two or more different donees shall be governed by
office.In the case referred to in No. 1, the action the provisions concerning the sale of the same thing
for declaration of nullity may be brought by the to two or more different persons.
spouse of the donor or donee; and the guilt of the
donor and donee may be proved by A. By reason of public policy (ART. 739)
preponderance of evidence in the same action. 1. Those made between persons guilty of
adultery or concubinage at the time of
Article 1027, Civil Code. The following are incapable donation
of succeeding: 2. Those made between persons guilty of the
1. The priest who heard the confession of the same criminal offense if the donation is
testator during his last illness, or the minister of
the gospel who extended spiritual aid to him
made in consideration thereof
during the same period; 3. Those made to a public officer, his spouse,
2. The relatives of such priest or minister of the descendants, and/or ascendants by reason
gospel within the fourth degree, the church, of the office
order, chapter, community, organization, or
institution to which such priest or minister may B. By reason of donee’s unworthiness
belong; (ART. 1032 and 1027 [except (4)])
3. A guardian with respect to testamentary C. By reason of prejudice to creditors or
dispositions given by a ward in his favor before heirs (voidable)
the final accounts of the guardianship have been
approved, even if the testator should die after the
approval thereof; nevertheless, any provision
made by the ward in favor of the guardian when
the latter is his ascendant, descendant, brother,

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VI. Acceptance
B. REAL PROPERTY
 Donation is perfected upon the
DONOR’S LEARNING of the Article 749, Civil Code. In order that the donation of
acceptance an immovable may be valid, it must be made in a
 Acceptance may be made during the public document, specifying therein the property
LIFETIME of BOTH donor and donee donated and the value of the charges which the
donee must satisfy.
A. WHO MAY ACCEPT
The acceptance may be made in the same deed of
Article 745, Civil Code. The donee must accept the donation or in a separate public document, but it shall
donation personally, or through an authorized person not take effect unless it is done during the lifetime of
with a special power for the purpose, or with a general the donor.
and sufficient power; otherwise, the donation shall be
void. If the acceptance is made in a separate instrument,
the donor shall be notified thereof in an authentic
Article 747, Civil Code. Persons who accept form, and this step shall be noted in both instruments. 225
donations in representation of others who may not do
PROPERTY
so by themselves, shall be obliged to make the  Must be in PUBLIC INSTRUMENT
notification and notation of which Article 749 speaks. specifying donated property and
burdens assumed by the donee
 Acceptance or consent must be regardless of value
PERSONAL or through a person  Acceptance must be EITHER:
AUTHORIZED generally or specifically o In the SAME INSTRUMENT OR
o In ANOTHER PUBLIC
B. TIME of ACCEPTANCE INSTRUMENT notified to the donor
in authentic form and noted in both
Article 746, Civil Code. Acceptance must be made deeds
during the lifetime of the donor and of the donee.
Title to immovable property does not pass from donor
The donation is perfected only upon the moment to donee by virtue of a deed of donation until and
the donor knows of the donee’s acceptance. If the unless it has been accepted in a public instrument
acceptance is made in a separate instrument, the and the donor duly notified thereof. Where the deed
donor shall be notified thereof in an authentic form, fails to show the acceptance, or where the formal
and this step shall be noted in both instruments. notice of the acceptance made in a separate
(Lagazo v CA) instrument is not given to the donor or else not noted
in the deed of donation and in the separate
acceptance, the donation is null and void. (Sumipat v
Banga)
VII. Form
 Exceptions:
A. PERSONAL PROPERTY o Donations propter nuptias – need
NO express acceptance
Article 748 , The donation of a movable may be o Onerous donations – form governed
made orally or in writing. by the rules of contracts
An oral donation requires the simultaneous delivery of
the thing or of the document representing the right VIII. What May Be Donated
donated.
A. ALL PRESENT PROPERTY or PART
If the value of the personal property donated exceeds
THEREOF of THE DONOR
five thousand pesos, the donation and the acceptance
shall be made in writing, otherwise, the donation shall
be void. 1. Provided he RESERVES, in full ownership
or usufruct, sufficient means for support of
 WITH simultaneous delivery of donated himself and all relatives entitled to be
property – may be oral UNLESS it supported by donor at the time of
exceeds P5k in which case it’s VOID if acceptance
NOT in writing
Article 750, Civil Code. The donations may
 WITHOUT simultaneous delivery – must
comprehend all the present property of the donor, or
be in WRITING including the part thereof, provided he reserves, in full ownership or
ACCEPTANCE regardless of value in usufruct, sufficient means for the support of himself,

lOMoARcPSD|3291925
and of all relatives who, at the time of the acceptance Donations of future property shall be governed by the
of the donation, are by law entitled to be supported by provisions on testamentary succession and the
the donor. Without such reservation, the donation formalities of wills.
shall be reduced in petition of any person affected.
CC Article 130. The future spouses may give each
2. Provided that NO PERSON may give or other in their marriage settlements as much as one-
receive by way of donation, more than he fifth of their present property, and with respect to their
may give or receive by will (ART. 752); also, future property, only in the event of death, to the
reserves property sufficient to pay donor’s extent laid down by the provisions of this Code
referring to testamentary succession.
debts contracted before donation, otherwise,
donation is in FRAUD of creditors (ARTS.
759, 1387) b. Donation propter nuptias by an
ascendant consisting of jewelry,
Article 752, Civil Code. The provisions of Article 750 furniture or clothing not to exceed 1/10
notwithstanding, no person may give or receive, by of disposable portion
way of donation, more than he may give or receive by 226
will. Article 1070, Civil Code. Wedding gifts by parents
PROPERTY
and ascendants consisting of jewelry, clothing, and
The donation shall be inofficious in all that it may outfit, shall not be reduced as inofficious except
exceed this limitation. insofar as they may exceed one-tenth of the sum
which is disposable by will.
Article 759, Civil Code. There being no stipulation
regarding the payment of debts, the donee shall be B. WHAT MAY NOT BE DONATED –
responsible therefor only when the donation has been FUTURE PROPERTY
made in fraud of creditors
. Article 751, Civil Code. Donations cannot
The donation is always presumed to be in fraud of comprehend future property.
creditors, when at the time thereof the donor did not
reserve sufficient property to pay his debts prior to the By future property is understood anything which the
donation. donor cannot dispose of at the time of the donation.
Article 1387, Civil Code. All contracts by virtue of  Includes ALL property that belongs to
which the debtor alienates property by gratuitous title
others at the time the donation is made
are presumed to have been entered into in fraud of
creditors, when the donor did not reserve sufficient although it may or may not later belong
property to pay all debts contracted before the to the donor
donation.
IX. Effect
Alienations by onerous title are also presumed
fraudulent when made by persons against whom
some judgment has been issued. The decision or A. IN GENERAL
attachment need not refer to the property alienated,
and need not have been obtained by the party 1. Donee may demand actual delivery of thing
seeking the rescission. donated
2. Donee is SUBROGATED to rights of donor
In addition to these presumptions, the design to in the property donated
defraud creditors may be proved in any other manner
recognized by the law of evidence.
Article 754, Civil Code. The donee is subrogated to
all the rights and actions which in case of eviction
3. If donation EXCEEDS the disposable or free would pertain to the donor. The latter, on the other
portion of his estate, donation is inofficious hand, is not obliged to warrant the things donated,
4. EXCEPTIONS save when the donation is onerous, in which case the
a. Donations provided for in marriage donor shall be liable for eviction to the concurrence of
settlements between future spouses – the burden.
not more than 1/5 of present property
The donor shall also be liable for eviction or hidden
defects in case of bad faith on his part.
FC Article 84. If the future spouses agree upon a
regime other than the absolute community of
property, they cannot donate to each other in their 3. Donor NOT obliged to warrant things
marriage settlements more than one-fifth of their donated EXCEPT in onerous donations in
present property. Any excess shall be considered which case donor is liable for eviction up to
void. extent of burden (ART. 754)

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4. Donor is liable for EVICTION or HIDDEN third person in violation of what is provided in the
DEFECTS in case of BF on his part (ART. preceding paragraph shall be void, but shall not nullify
754) the donation.
5. In donation propter nuptias, donor must
RELEASE property donated from mortgages 4. Payment of donor’s debt
and other encumbrances UNLESS the
contrary has been stipulated Article 758, Civil Code. When the donation imposes
upon the donee the obligation to pay the debts of the
donor, if the clause does not contain any declaration
Article 131, Civil Code. The donor by reason of
to the contrary, the former is understood to be liable
marriage shall release the property donated from
to pay only the debts which appear to have been
mortgages and all other encumbrances upon the
previously contracted. In no case shall the donee be
same, with the exception of easements, unless in the
responsible for the debts exceeding the value of the
marriage settlements or in the contracts the contrary
property donated, unless a contrary intention clearly
has been stipulated.
appears.
 If expressly stipulated – donee to pay
6. Donations to several donees jointly – NO
only debts contracted BEFORE the
227
right of accretion EXCEPT:
donation UNLESS specified otherwise.
PROPERTY
a. Donor provides otherwise
But in no case shall donee be
b. Donation to husband and wife jointly
responsible for debts exceeding value of
with right of accretion UNLESS donor
property donated unless clearly intended
provides otherwise
 If there’s NO stipulation – donee
Article 753, Civil Code. When a donation is made to answerable only for donor’s debt ONLY
several persons jointly, it is understood to be in equal in case donation is in fraud of creditors
shares, and there shall be no right of accretion among
them, unless the donor has otherwise provided. 5. Illegal or impossible conditions
The preceding paragraph shall not be applicable to Article 272, Civil Code. Children who are legitimated
donations made to the husband and wife jointly, by subsequent marriage shall enjoy the same rights
between whom there shall be a right of accretion, if as legitimate children.
the contrary has not been provided by the donor.
Article 1183, Civil Code. Impossible conditions,
B. SPECIAL PROVISIONS those contrary to good customs or public policy and
those prohibited by law shall annul the obligation
1. Reservation by donor of power to dispose which depends upon them. If the obligation is
divisible, that part thereof which is not affected by the
(in whole or in part) or to encumber property
impossible or unlawful condition shall be valid.
donated The condition not to do an impossible thing shall be
considered as not having been agreed upon.
Article 755, Civil Code. The right to dispose of some
of the things donated, or of some amount which shall
be a charge thereon, may be reserved by the donor; X. Revocation and Reduction
but if he should die without having made use of this
right, the property or amount reserved shall belong to A. DISTINCTIONS
the donee.
Revocation Reduction
2. Donation of naked ownership to one donee Total, whether the Made insofar as the
and usufruct to another legitime is impaired or not legitime is prejudiced
Benefits the donor’s heirs
Article 756, Civil Code. The ownership of property (except when made on
may also be donated to one person and the usufruct Benefits the donor
the ground of the
to another or others, provided all the donees are living appearance of a child)
at the time of the donation.
B. CAUSES of REVOCATION OR
3. Conventional reversion in favor of donor or REDUCTION
other person
1. Inofficiousness
Article 757, Civil Code. Reversion may be validly
established in favor of only the donor for any case
Article 752, Civil Code. The provisions of Article 750
and circumstances, but not in favor of other persons
notwithstanding, no person may give or receive, by
unless they are all living at the time of the donation.
way of donation, more than he may give or receive by
will.
Any reversion stipulated by the donor in favor of a

lOMoARcPSD|3291925
The donation shall be inofficious in all that it may birth, adoption or reappearance of
exceed this limitation. the child
o Donee must return the property or
Article 771, Civil Code. Donations which in its value at the time of the donation
accordance with the provisions of Article 752, are
inofficious, bearing in mind the estimated net value of
o Fruits to be returned from the filing
the donor's property at the time of his death, shall be of the action
reduced with regard to the excess; but this reduction o Mortgages by the donee are valid
shall not prevent the donations from taking effect but may be discharged subject to
during the life of the donor, nor shall it bar the donee reimbursement from the donee
from appropriating the fruits.
 Extent of revocation – only to the
For the reduction of donations the provisions of this extent of the presumptive legitime of the
Chapter and of Articles 911 and 912 of this Code shall
child
govern.
 Prescription – 4yrs
Article 773, Civil Code. If, there being two or more 228
donations, the disposable portion is not sufficient to C. REVOCATION ONLY
PROPERTY
cover all of them, those of the more recent date shall
be suppressed or reduced with regard to the excess. 1. Ingratitude
Article 765, Civil Code. The donation may also be

 Who may ask for reduction revoked at the instance of the donor, by reason of
ingratitude in the following cases:
Article 772, Civil Code.Only those who at the time of 1. If the donee should commit some offense against
the donor's death have a right to the legitime and their the person, the honor or the property of the
heirs and successors in interest may ask for the donor, or of his wife or children under his parental
reduction or inofficious donations. authority;
2. If the donee imputes to the donor any criminal
Those referred to in the preceding paragraph cannot offense, or any act involving moral turpitude,
renounce their right during the lifetime of the donor, even though he should prove it, unless the crime
either by express declaration, or by consenting to the or the act has been committed against the donee
donation. himself, his wife or children under his authority;
2. If he unduly refuses him support when the donee
The donees, devisees and legatees, who are not is legally or morally bound to give support to the
entitled to the legitime and the creditors of the donor.
deceased can neither ask for the reduction nor avail
themselves thereof.  Applies to all donations EXCEPT:
o Mortis causa
 Rule applied – if disposable portion not o Propter nuptias
sufficient to cover 2 or more donations o Onerous
(ART. 773)  Founded on moral duty – one who
received a donation must be grateful to
2. Subsequent birth, reappearance of child his benefactor
or adoption of minor by donor  Conviction NOT necessary
 Time to file action for revocation – within
Article 760, Civil Code. Every donation inter vivos, 1yr from knowledge of the offense
made by a person having no children or descendants,
legitimate or legitimated by subsequent marriage, or Article 769, Civil Code. The action granted to the
illegitimate, may be revoked or reduced as provided in donor by reason of ingratitude cannot be renounced
the next article, by the happening of any of these in advance. This action prescribes within one year, to
events: be counted from the time the donor had knowledge of
1. If the donor, after the donation, should have the fact and it was possible for him to bring the action.
legitimate or legitimated or illegitimate children,
even though they be posthumous;
2. If the child of the donor, whom the latter believed  Who may file – donor must bring action
to be dead when he made the donation, should himself; NOT transmissible to his heirs
turn out to be living;
3. If the donor subsequently adopt a minor child. Article 770, Civil Code. This action shall not be
transmitted to the heirs of the donor, if the latter did
 Effects: not institute the same, although he could have done
so, and even if he should die before the expiration of
o Donation is VALID if not exceeding
one year.
the free part computed as of the

lOMoARcPSD|3291925
Neither can this action be brought against the heir of When the property cannot be returned, it shall be
the donee, unless upon the latter's death the estimated at what it was worth at the time of the
complaint has been filed. donation.
 Effect of revocation on alienations and Article 764, par. 2, Civil Code. In this case, the
property donated shall be returned to the donor, the
encumbrances
alienations made by the donee and the mortgages
imposed thereon by him being void, with the
Article 766, Civil Code. Although the donation is limitations established, with regard to third persons,
revoked on account of ingratitude, nevertheless, the by the Mortgage Law and the Land Registration Laws.
alienations and mortgages effected before the
notation of the complaint for revocation in the Registry Article 767, Civil Code. In the case referred to in the
of Property shall subsist. first paragraph of the preceding article, the donor shall
have a right to demand from the donee the value of
Later ones shall be void. property alienated which he cannot recover from third
persons, or the sum for which the same has been
Article 767, , Civil Code.In the case referred to in the mortgaged.
first paragraph of the preceding article, the donor shall
229
have a right to demand from the donee the value of
PROPERTY
property alienated which he cannot recover from third
persons, or the sum for which the same has been
 Effect as to fruits
mortgaged.
Article 768, Civil Code. When the donation is
The value of said property shall be fixed as of the time revoked for any of the causes stated in Article 760, or
of the donation. by reason of ingratitude, or when it is reduced
because it is inofficious, the donee shall not return the
fruits except from the filing of the complaint.
2. Violation of condition If the revocation is based upon noncompliance with
any of the conditions imposed in the donation, the
donee shall return not only the property but also the
D. Effect of revocation or reduction fruits thereof which he may have received after having
failed to fulfill the condition.
Article 762, Civil Code. Upon the revocation or
reduction of the donation by the birth, appearance or
adoption of a child, the property affected shall be
returned or its value if the donee has sold the same.
If the property is mortgaged, the donor may redeem

the mortgage, by paying the amount guaranteed, with
a right to recover the same from the donee.
SUMMARY—
Limitation:
1) He reserves in full ownership or
in usufruct, sufficient means for
his support and all relatives who
are at the time of the acceptance
of the donation are, by law,
entitled to be supported
Effect of non-reservation: reduction

All present property of the donor or of the donation
What may be donated (Article 750)
part thereof
2) He reserves sufficient property
at the time of the donation for
the full settlement of his debts
Effect of non-reservation: considered

to be a donation in fraud of creditors,
and donee may be liable for
damages

lOMoARcPSD|3291925
1) Future property; those which the

donor cannot dispose of at the
time of the donation (Article 751)
What may not be donated
2) More than what he may give or
receive by will (Article 752)
If exceeds: inofficious
No accretion – one donee does not Exception: those given to husband
Donations made to several
get the share of the other donees and wife, except when the donor
persons jointly
who did not accept (Article 753) otherwise provides
Who are not allowed:
1) Guardians and trustees with
respect to the property entrusted
Who are allowed: All persons who
to them (Article 736)
may contract (of legal age) and
2) Made between person who are
dispose of their property (Article 735)
Donor guilty of adultery and
Donor’s capacity is determined at the
concubinage (Article 739)
time of the making of donation
(Article 737)
3) Made between persons found 230
guilty of the same criminal
PROPERTY
offense, in consideration thereof
(Article 739)
Who are allowed to accept Who are not allowed:
donations: Those who are not 1) Made between person who are
specifically disqualified by law guilty of adultery and
(Article 738) concubinage (Article 739)
2) Made between persons found
Those who are allowed, with guilty of the same criminal
qualifications: offense, in consideration thereof
1) Minors and others who are (Article 739)
incapacitated (see Article 38), 3) Made to a public officer or his
Donee
provided that their acceptance is wife, descendant and
done through their parents or ascendants, by reason of his
legal representatives (Article office (Article 739)
741) 4) Those who cannot succeed by
2) Conceived and unborn children, will (Article 740)
provided that the donation is 5) Those made to incapacitated
accepted by those who would persons, although simulated
legally represent them if they under the guise of another
were already born contract (Article 743)
Who may accept (Article 745):
1) Donee personally
When to accept: during the lifetime of
Acceptance of the donation 2) Authorized person with a special
the donor or donee (Article 746)
power for the purpose or with a
general sufficient power
He shall be subrogated to all the
What the donee acquires with the rights and actions that would pertain
thing to the donor in case of eviction
(Article 754)
Exception: when the donation is
Obligation of the donor No obligation to warrant (Article 754)
onerous
If the donation so states, the donee
may be obliged to pay the debts
previously contracted by the donor
Exception: when contrary intention
Obligation of the donee and in no case shall he be
appears
responsible for the debts exceeding
the value of the thing donated (Article
758)
Right to dispose of some of the If the donor dies without exercising
What may be reserved by the
things donated, or of dome amount this right, the portion reserved shall
donor
which shall be a charge thereon belong to the donee
The property donated may be
Limitation to (2): the third person
restored or returned to
Reversion whoul be living at the time of the
1) Donor or his estate; or
donation
2) Another person

lOMoARcPSD|3291925
REVOCATION/REDUCTION
Basis Time of Action Transmissibility Effect Liability (Fruits)

Transmitted to Property returned/
Within 4 years from Fruits returned from
Birth, appearance, children and value (if sold)/
birth, legitimation the filing of the
adoption descendants upon redeem mortgage
and adoption complaint
the death of donor with right to recover
Property returned,
May be transmitted to alienations and
Fruits received after
Non-compliance Within 4 years from donor’s heirs and mortgages void
having failed to fulfill
with condition non-compliance may be exercised subject to rights of
condition returned
against donee’s heirs third persons in
good faith
Property returned,
but alienations and
mortgages effected
Within 1 year after Generally not Fruits received from 231
before the notation
Ingratitude knowledge of the transmitted to heirs of the filing of the
of the complaint for
PROPERTY
fact donor/ donee complaint returned
revocation in the
registry of property
subsist
Failure to reserve At any time, by the Reduced to the
sufficient means for donor or relatives Not transmissible extent necessary to Donee entitled
support entitled o support provide support
Donation takes
Inofficiousness for effect on the lifetime
Within 5 years from
being in excess of Transmitted to of donor. Reduction
the death of the Donee entitled
what the donor can donor’s heirs only upon his death
donor
give by will with regard to the
excess
Rescission within 4
Returned for the Fruits returned/ if
years from the Transmitted to
Fraud against benefit of the impossible,
perfection of creditor’s heirs or
creditors creditor who brought indemnify creditor
donation/ knowledge successors-in-interest
the action for damages
of the donation

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XII. LEASE
o Lease of consumables which

Chapter XII. Lease are ACCESSORIES in the lease
of an industrial management
I. GENERAL CHARACTERISTICS
II. KINDS
A. LEASE OF THINGS B. SPECIAL CHARACTERISTICS of LEASE
B. LEASE OF WORK of THINGS
C. LEASE OF SERVICES
III. LEASE OF THINGS  Essential purpose is to TRANSMIT the
USE or ENJOYMENT of a thing
I. General Characteristics  Consensual
a. Temporary duration  Onerous
b. Onerous  Price is FIXED in relation to the period
c. Price is fixed according to contract of use/enjoyment
duration  Temporary
232
C. LEASE DISTINGUISHED FROM SALE,
II. Kinds
PROPERTY
USUFRUCT, COMMODATUM
A. Lease of things – Involves an obligation on Lease Sale

the part of the lessor to deliver the thing Only the use or Permanent transmission
which is the object thereof and the enjoyment of the thing is of ownership of the thing
correlative right of the lessee to peaceful transferred and only for a sold, unless subject to a
and adequate enjoyment thereof for a price determinate period resolutory condition
certain Seller must be the owner
or at least authorized by
Lessor need not be the
the owner to transfer
B. Lease of work or contract of labor (Arts. owner of the thing leased
ownership of the thing at
1700-1712) the time it is derived
C. Lease of services Lease Usufruct

1. Household service A real right only by
2. Contract for a piece of work (ARTS. exception (When
1713-1731) Always a real right
registered and for more
3. Lease of services of common carriers than 1 year)
(ARTS. 1732-1763) To constitute usufruct,
To constitute a usufruct,
ownership is not required
one must be the owner of
in order to lease an
the thing.
object
III. Lease of Things Lessor places and Owner allows the
maintains the lessee in usufructuary to use and
A. CONCEPT enjoymentof the thing. enjoy the property
Usufruct includes all
Lease may be limited to
Article 1643, Civil Code. In the lease of things, one possible uses and
particular uses by the
of the parties binds himself to give to another the manner of enjoyment of
contract
enjoyment or use of a thing for a price certain, and for the property
a period which may be definite or indefinite. However, Contract of lease must be
no lease for more than ninety-nine years shall be for a definite period,
Usufruct may be for an
valid. absent stipulation of
indefinite period of time
such, court must fix such
period.
 Subject matter must be WITHIN THE
COMMERCE OF MAN
Lease Commodatum
 General rule: CONSUMMABLE things Onerous Gratuitous
CANNOT be the subject matter of lease; Purely personal in
EXCEPTIONS – Not essentially personal character and
o Lease of consumable property in character, therefore, consequently, the death
NOT for purpose of consuming the right may be of either the bailor or
it but for purpose of DISPLAY or transmitted to the heirs bailee extinguishes the
ADVERTISING it (lease ad contract
pompam et ostentationem) Real contract – perfected
Consensual contract by the delivery of the
object therefor

lOMoARcPSD|3291925
D. PERIOD of LEASE F. SUBLEASE
 MAXIMUM period is 99yrs Article 1650

 When period is INDEFINITE: When in the contract of lease of things there is
o RURAL land no express prohibition, the lessee may sublet
the thing leased, in whole or in part, without
Article 1682, Civil Code. The lease of a piece of prejudice to his responsibility for the
rural land, when its duration has not been fixed, is performance of the contract toward the lessor.
understood to have been for all the time necessary for
the gathering of the fruits which the whole estate  There are 2 leases and 2 distinct
leased may yield in one year, or which it may yield
juridical relations:
once, although two or more years have to elapse for
the purpose. o Between the LESSOR and
LESSEE
o URBAN land o Between the SUBLESSOR
(lessee) and the SUBLESSEE
233
Article 1687, Civil Code. If the period for the lease  Sublessee generally does not have any
PROPERTY
has not been fixed, it is understood to be from year to direct action against the lessor to require
year, if the rent agreed upon is annual; from month to compliance with his or the lessee’s
month, if it is monthly; from week to week, if the rent obligations or vice versa
is weekly; and from day to day, if the rent is to be paid  Sublessee is NOT a party to the contract
daily. However, even though a monthly rent is paid, between the lessor and lessee
and no period for the lease has been set, the courts
 Obligation of sublessee to lessor
may fix a longer term for the lease after the lessee
has occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine a Article 1651, Civil Code. Without prejudice to his
longer period after the lessee has been in possession obligation toward the sublessor, the sublessee is
for over six months. In case of daily rent, the courts bound to the lessor for all acts which refer to the use
may also fix a longer period after the lessee has and preservation of the thing leased in the manner
stayed in the place for over one month. stipulated between the lessor and the lessee.
E. ASSIGNMENT of LEASE  For RENTS
Article 1649, Civil Code. The lessee cannot assign Article 1652, Civil Code. The sublessee is
the lease without the consent of the lessor, unless subsidiarily liable to the lessor for any rent due from
there is a stipulation to the contrary. the lessee. However, the sublessee shall not be
responsible beyond the amount of rent due from him,
in accordance with the terms of the sublease, at the
 General Rule: lessee CANNOT assign the time of the extrajudicial demand by the lessor.
lease WITHOUT the CONSENT of the
lessor Payments of rent in advance by the sublessee shall
 UNLESS there’s a stipulation to the be deemed not to have been made, so far as the
contrary lessor's claim is concerned, unless said payments
 ASSIGNMENT v. SUBLEASE were effected in virtue of the custom of the place.
Assignment of Lease Sublease G. RIGHTS and OBLIGATIONS of LESSOR

Transfer to a third person and LESSEE
of the rights and
obligations arising from
Merely another contract 1. Obligations of LESSOR
the lease contract. It is in Article 1654, Civil Code. The lessor is obliged:
of lease, where the
fact a sale of the lessee’s (1) To deliver the thing which is the object of the
original lessee becomes
rights, and when the contract in such a condition as to render it fit for the
in turn a lessor. Even
lessor gives his consent use intended;
when the lessor consents
to it, the original lessee is
to the sublease, the
released from his (2) To make on the same during the lease all the
original lease contract
obligations under the necessary repairs in order to keep it suitable for the
still subsists and is
contract. The Express of use to which it has been devoted, unless there is a
binding on the lessee.
the lessor is either stipulation to the contrary;
There is a juxtaposition of
express or implied. There
two leases.
is a succession by (3) To maintain the lessee in the peaceful and
particular title to one adequate enjoyment of the lease for the entire
contract of lease. duration of the contract.

lOMoARcPSD|3291925
Article 1661, Civil Code. The lessor cannot alter the Article 1667, Civil Code. The lessee is responsible
form of the thing leased in such a way as to impair the for the deterioration or loss of the thing leased, unless
use to which the thing is devoted under the terms of he proves that it took place without his fault. This
the lease. burden of proof on the lessee does not apply when
the destruction is due to earthquake, flood, storm or
2. Obligations of LESSEE other natural calamity.
Article 1657, Civil Code. The lessee is obliged: SUMMARY of OBLIGATIONS

(1) To pay the price of the lease according to the
terms stipulated; Lessor’s Obigations Lessee’s Obligations
(2) To use the thing leased as a diligent father of a Deliver the thing which is
Pay the price of the lease
family, devoting it to the use stipulated; and in the the object of the contract
according to the terms
absence of stipulation, to that which may be in a condition fit for the
stipulated
inferred from the nature of the thing leased, use intended
according to the custom of the place; Use the thing leased as a
Make on the thing all the
(3) To pay expenses for the deed of lease. diligent father of a family,
necessary repairs in
devoting it to the use 234
order to keep it suitable
Article 1662, Civil Code. If during the lease it should stipulated, and in the
PROPERTY
for the use to which it has
become necessary to make some urgent repairs upon absence of stipulation
been devoted, unless
the thing leased, which cannot be deferred until the according to the nature of
there is a stipulation to
termination of the lease, the lessee is obliged to the thing leased and
the contrary
tolerate the work, although it may be very annoying to custom of the place.
him, and although during the same, he may be Maintain the lessee in the
deprived of a part of the premises. peaceful and adequate
Pay for the expenses for
enjoyment of the lease
the deed of lease.
If the repairs last more than forty days the rent shall for the entire duration of
be reduced in proportion to the time - including the the contract.
first forty days - and the part of the property of which
the lessee has been deprived. 3. Right of LESSEE to suspend payment of
rentals
When the work is of such a nature that the portion
which the lessee and his family need for their dwelling
Article 1658, Civil Code. The lessee may suspend
becomes uninhabitable, he may rescind the contract if
the payment of the rent in case the lessor fails to
the main purpose of the lease is to provide a dwelling
make the necessary repairs or to maintain the lessee
place for the lessee.
in peaceful and adequate enjoyment of the property
leased.
Article 1663, Civil Code. The lessee is obliged to
bring to the knowledge of the proprietor, within the
shortest possible time, every usurpation or untoward 4. Right to ask for RESCISSION
act which any third person may have committed or
may be openly preparing to carry out upon the thing Article 1659, Civil Code. If the lessor or the lessee
leased. should not comply with the obligations set forth in
Articles 1654 and 1657, the aggrieved party may ask
He is also obliged to advise the owner, with the same for the rescission of the contract and indemnification
urgency, of the need of all repairs included in No. 2 of for damages, or only the latter, allowing the contract
Article 1654. to remain in force.
In both cases the lessee shall be liable for the Article 1660, Civil Code. If a dwelling place or any
damages which, through his negligence, may be other building intended for human habitation is in such
suffered by the proprietor. a condition that its use brings imminent and serious
danger to life or health, the lessee may terminate the
If the lessor fails to make urgent repairs, the lessee, in lease at once by notifying the lessor, even if at the
order to avoid an imminent danger, may order the time the contract was perfected the former knew of
repairs at the lessor's cost. the dangerous condition or waived the right to rescind
the lease on account of this condition.
Article 1665, Civil Code. The lessee shall return the
thing leased, upon the termination of the lease, as he 5. LESSOR not obliged to answer for mere
rd
received it, save what has been lost or impaired by act of trespass by a 3 person
the lapse of time, or by ordinary wear and tear, or
from an inevitable cause. Article 1664, Civil Code. The lessor is not obliged to
answer for a mere act of trespass which a third
Article 1668, Civil Code. The lessee is liable for any
person may cause on the use of the thing leased; but
deterioration caused by members of his household
the lessee shall have a direct action against the
and by guests and visitors.
intruder.

lOMoARcPSD|3291925
daily. However, even though a monthly rent is paid,

H. GROUNDS for EJECTMENT of LESSEE and no period for the lease has been set, the courts
by LESSOR may fix a longer term for the lease after the lessee
has occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine a
Article 1673
longer period after the lessee has been in possession
The lessor may judicially eject the lessee for any of
for over six months. In case of daily rent, the courts
the following causes:
may also fix a longer period after the lessee has
(1) When the period agreed upon, or that which is
stayed in the place for over one month.
fixed for the duration of leases under Articles
1682 and 1687, has expired;
Article 1675, Civil Code. Except in cases stated in
(2) Lack of payment of the price stipulated;
Article 1673, the lessee shall have a right to make use
(3) Violation of any of the conditions agreed upon in
of the periods established in Articles 1682 and 1687.
the contract;
(4) When the lessee devotes the thing leased to any
use or service not stipulated which causes the
deterioration thereof; or if he does not observe K. RIGHT of PURCHASER of LEASED LAND
the requirement in No. 2 of Article 1657, as 235
regards the use thereof. Article 1676, Civil Code. The purchaser of a piece of
PROPERTY
The ejectment of tenants of agricultural lands is land which is under a lease that is not recorded in the
governed by special laws Registry of Property may terminate the lease, save
when there is a stipulation to the contrary in the
I. RIGHT to ASK for PRELIMINARY contract of sale, or when the purchaser knows of the
MANDATORY INJUNCTION in existence of the lease.
UNLAWFUL DETAINER CASES If the buyer makes use of this right, the lessee may
demand that he be allowed to gather the fruits of the
Article 1674, Civil Code. In ejectment cases where harvest which corresponds to the current agricultural
an appeal is taken the remedy granted in Article 539, year and that the vendor indemnify him for damages
second paragraph, shall also apply, if the higher court suffered.
is satisfied that the lessee's appeal is frivolous or
dilatory, or that the lessor's appeal is prima facie If the sale is fictitious, for the purpose of extinguishing
meritorious. The period of ten days referred to in said the lease, the supposed vendee cannot make use of
article shall be counted from the time the appeal is the right granted in the first paragraph of this article.
perfected. The sale is presumed to be fictitious if at the time the
supposed vendee demands the termination of the
Article 539 (2), Civil Code. A possessor deprived of lease, the sale is not recorded in the Registry of
his possession through forcible entry may within ten Property.
days from the filing of the complaint present a motion
to secure from the competent court, in the action for Article 1677, Civil Code. The purchaser in a sale
forcible entry, a writ of preliminary mandatory with the right of redemption cannot make use of the
injunction to restore him in his possession. The court power to eject the lessee until the end of the period
shall decide the motion within thirty (30) days from the for the redemption.
filing thereof.
L. USEFUL IMPROVEMENTS in GF MADE
J. IMPLIED EXTENSION of LEASE by LESSEE
Article 1679, Civil Code. If nothing has been Article 1678, Civil Code. If the lessee makes, in
stipulated concerning the place and the time for the good faith, useful improvements which are suitable to
payment of the lease, the provisions or Article 1251 the use for which the lease is intended, without
shall be observed as regards the place; and with altering the form or substance of the property leased,
respect to the time, the custom of the place shall be the lessor upon the termination of the lease shall pay
followed. the lessee one-half of the value of the improvements
at that time. Should the lessor refuse to reimburse
Article 1682, Civil Code. The lease of a piece of said amount, the lessee may remove the
rural land, when its duration has not been fixed, is improvements, even though the principal thing may
understood to have been for all the time necessary for suffer damage thereby. He shall not, however, cause
the gathering of the fruits which the whole estate any more impairment upon the property leased than is
leased may yield in one year, or which it may yield necessary.
once, although two or more years have to elapse for
the purpose. With regard to ornamental expenses, the lessee shall
Article 1687, Civil Code. If the period for the lease not be entitled to any reimbursement, but he may
has not been fixed, it is understood to be from year to remove the ornamental objects, provided no damage
year, if the rent agreed upon is annual; from month to is caused to the principal thing, and the lessor does
month, if it is monthly; from week to week, if the rent not choose to retain them by paying their value at the
is weekly; and from day to day, if the rent is to be paid time the lease is extinguished.

lOMoARcPSD|3291925
M. SPECIAL PROVISIONS for LEASES of N. SPECIAL PROVISIONS for LEASES of

RURAL LANDS URBAN LANDS
Article 1680, Civil Code. The lessee shall have no Article 1686, Civil Code. In default of a special
right to a reduction of the rent on account of the stipulation, the custom of the place shall be observed
sterility of the land leased, or by reason of the loss of with regard to the kind of repairs on urban property for
fruits due to ordinary fortuitous events; but he shall which the lessor shall be liable. In case of doubt it is
have such right in case of the loss of more than one- understood that the repairs are chargeable against
half of the fruits through extraordinary and unforeseen him.
fortuitous events, save always when there is a
specific stipulation to the contrary. Article 1687, Civil Code. If the period for the lease
has not been fixed, it is understood to be from year to
Extraordinary fortuitous events are understood to be: year, if the rent agreed upon is annual; from month to
fire, war, pestilence, unusual flood, locusts, month, if it is monthly; from week to week, if the rent
earthquake, or others which are uncommon, and is weekly; and from day to day, if the rent is to be paid
which the contracting parties could not have daily. However, even though a monthly rent is paid, 236
reasonably foreseen. and no period for the lease has been set, the courts
PROPERTY
may fix a longer term for the lease after the lessee
Article 1681, Civil Code. Neither does the lessee has occupied the premises for over one year. If the
have any right to a reduction of the rent if the fruits rent is weekly, the courts may likewise determine a
are lost after they have been separated from their longer period after the lessee has been in possession
stalk, root or trunk. for over six months. In case of daily rent, the courts
may also fix a longer period after the lessee has
Article 1682, Civil Code. The lease of a piece of stayed in the place for over one month.
rural land, when its duration has not been fixed, is
understood to have been for all the time necessary for Article 1688, Civil Code. When the lessor of a
the gathering of the fruits which the whole estate house, or part thereof, used as a dwelling for a family,
leased may yield in one year, or which it may yield or when the lessor of a store, or industrial
once, although two or more years have to elapse for establishment, also leases the furniture, the lease of
the purpose. the latter shall be deemed to be for the duration of the
lease of the premises.
Article 1683, Civil Code. The outgoing lessee shall
allow the incoming lessee or the lessor the use of the
premises and other means necessary for the
preparatory labor for the following year; and,
reciprocally, the incoming lessee or the lessor is
under obligation to permit the outgoing lessee to do
whatever may be necessary for the gathering or
harvesting and utilization of the fruits, all in
accordance with the custom of the place.
Article 1684, Civil Code. Land tenancy on shares

shall be governed by special laws, the stipulations of
the parties, the provisions on partnership and by the
customs of the place.
Article 1685, Civil Code. The tenant on shares

cannot be ejected except in cases specified by law.
- end of Property-

lOMoARcPSD|3291925

lOMoARcPSD|3291925

Table of Contents
Chapter I: Background, Basic Concepts and Chapter 6: System of Registration of

General Principles........................................239 Unregistered Lands ..................................... 261
I. Definitions and Basic Concepts ........239 I. Key Points......................................... 261
II. Nature and stages.............................240 II. Procedure ......................................... 261
III. Purpose of Registration.....................240
IV. Modes of Acquiring Land Titles.........240 Chapter 7: Registration of Public Lands ... 262
V. Jurisdiction ........................................240 I. Classification of Land of the Public
Domain ...................................................... 262
Chapter 2: Torrens Certificate of Title .......241 II. Nature of Title to Public Lands
I. Original Certificate of Title or OCT....241 Conveyed .................................................. 262
II. Transfer Certificate of Title................241 III. Procedure of Conveying Public Land to
III. Patents ..............................................241 a Private Person ........................................ 262
IV. Director of Lands: Quasi-judicial officer 238
Chapter 3: Original Registration.................242 263

I. Laws Governing Land Registration...242 V. Modes of Alienating Public Lands:.... 263
II. Effect of Registration.........................242 VI. Patents ......................................... 263
III. Original Registration Proceeding ......242
IV. Attributes of and Limitation In Certificate Chapter 8: Remedies of the Aggrieved Party
of Title and Registered Land (FIIC) ...........247 ....................................................................... 264
V. Judicial Confirmation of Imperfect or
Incomplete Titles............................249 Chapter 9: Reconstitution 0f Titles ........... 266
I. Grounds ............................................ 266
Chapter 4: Cadastral Registration II. Petitions for Reconstitution ............... 266
Proceedings..................................................251 III. Duties of the Land Registration Authority
I. Steps in Cadastral Registration 266
Proceedings ...............................................252 IV. Effects of Fraud, Deceit and
Machination in the Reconstitution of Titles 266
Chapter 5: Subsequent Registration..........253
I. Two Types of Dealings......................253
II. Necessity and Effects of Registration
253
III. Voluntary vs. Involuntary Dealings..253
IV. Registration of Voluntary Instruments in
General ......................................................254
Transfers....................................................255
VI. Mortgages and Leases......................256
VII. Powers of Attorney; Trusts ...........257
VIII. Involuntary Dealings .....................257

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 1: BACKGROUND, BASIC CONCEPTS and GENERAL PRINCIPLES
Chapter I: Background, Basic Concepts

LAND TITLES and DEEDS TEAM

and General Principles
* This reviewer is a reproduction of the
2009 edition and was not updated by the st
This 1 Chapter will give an overview of the definitions of
2010 Academics Committee.
concepts relating to Land, Titles and Deeds. It also includes
Kat Aglibot a short discussion of what exactly is land registration.
Lead Writer
There are FIVE MAJOR LESSONS in this section:
CIVIL LAW
Kristine Bongcaron I. Definitions of the Basic Concepts
Patricia Tobias II. Nature of Land Registration
Subject Editors III. Purpose of Registration
IV. Modes of Acquiring Land Titles
ACADEMICS COMMITTEE V. Jurisdiction
Kristine Bongcaron
Michelle Dy I. Definitions and Basic Concepts
Patrich Leccio
Editors-in-Chief A. THE TORRENS SYSTEM
 A system for registration of land under
PRINTING & DISTRIBUTION which, upon landowner’s application, the 239
Kae Guerrero court may, after appropriate proceedings,

direct the issuance of a certificate of title.
DESIGN & LAYOUT
(Black’s Law Dictionary)
Pat Hernandez
Viktor Fontanilla B. LAND TITLE
Rusell Aragones  Evidence of the right of the owner or the
Romualdo Menzon Jr.
extent of his interest, and by which means
Rania Joya
he can maintain control, and as a rule assert
LECTURES COMMITTEE right to exclusive possession and enjoyment
of property.
Michelle Arias
Camille Maranan
Angela Sandalo C. DEED
Heads  An instrument in writing which any real
Katz Manzano Mary Rose Beley estate or interest therein is created,
Sam Nuñez Krizel Malabanan alienated, mortgaged or assigned or by
Arianne Cerezo Marcrese Banaag which title to any real estate may be affected
Volunteers
in law or equity. Necessarily includes:
1. The name of the Grantor
MOCK BAR COMMITTEE 2. The name of the Grantee
Lilibeth Perez 3. Words of grant
4. Description of property
BAR CANDIDATES WELFARE 5. Signatue of grantor
6. Witnesses
Dahlia Salamat
LOGISTICS D. FEE SIMPLE

 Absolute title; absolute estate in perpetuity.
Charisse Mendoza
Land is conferred upon a man and his heirs
SECRETARIAT COMMITTEE absolutely and without any limitation
imposed upon the state.
Jill Hernandez
Head
E. REGISTRATION
Loraine Mendoza Faye Celso  Process whereby the State provides a public
Mary Mendoza Joie Bajo
record of the title itself upon which a
Members
prospective purchaser or someone else
interested may rely. It is a means to
guarantee the title
F. RECORDING
 It is the process whereby Register of Deeds
writes information in his Registry Book. This
does not guarantee the title

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 1: BACKGROUND, BASIC CONCEPTS and GENERAL PRINCIPLES
II. Nature and stages farmers; not transferable except by hereditary

succession.
 Land registration is a proceeding in rem.

 Roxas vs. Enriquez, (1914): A proceeding in rem, V. Jurisdiction
dealing with a tangible res, may be instituted and (Asked in ’83)
carried to judgment, without personal service.
PD 1529
PD 1529
Sec. 2
Sec. 2 Nature of registration proceedings; jurisdiction
Nature of registration proceedings; jurisdiction of
of courts. Judicial proceedings for the registration of
courts. xxx (Courts of First Instance) Regional Trial
lands throughout the Philippines shall be in rem and
Courts shall have exclusive jurisdiction over all
shall be based on the generally accepted principles
applications for original registration of title to lands,
underlying the Torrens system. xxx
including improvements and interests therein, and
over all petitions filed after original registration of title,
 3 Stages:
with power to hear and determine all questions arising
1. Production & delivery of deed by grantor to
upon such applications or petitions. xxx
grantee without registration
2. Deed of conveyance is recorded to bind 3rd
persons BP 129
Sec. 34
3. Registration of title
Delegated jurisdiction in cadastral and land
240
registration cases. Metropolitan Trial Courts,

III. Purpose of Registration Municipal Trial Courts, and Municipal Circuit Trial
1. Serve as constructive notice Courts may be assigned by the Supreme Court to
2. Prevent fraudulent claims hear and determine cadastral or land registration
3. Protect interest of strangers to transaction cases covering lots where there is no controversy or
opposition, or contested lots the where the value of
4. Grey Alba vs. CA, (1910): To establish and
which does not exceed One hundred thousand pesos
certify to the ownership of an absolute and (P100,000.00), such value to be ascertained by the
indefeasible title to realty, and to simplify its affidavit of the claimant or by agreement of the
transfer. respective claimants if there are more than one, or
5. SM Prime Holdings vs. Angela Madayag from the corresponding tax declaration of the real
(2009, Nachura): The fundamental purpose property. Their decisions in these cases shall be
of the Land Registration Law (Presidential appealable in the same manner as decisions of the
Decree No. 1529) is to finally settle title to Regional Trial Courts. (as amended by R.A. No.
real property in order to preempt any 7691)
question on the legality of the title – except
claims that were noted on the certificate  GENERAL RULE:
itself at the time of registration or those that  Land registration proceedings and all
arose subsequent thereto. Consequently, petitions after original registration of
once the title is registered under the said titles are filed with the RTC’s of the
law, owners can rest secure on their province or city where the land or a
ownership and possession. portion or it lies.
 SM Prime Holdings vs. Angela Madayag
(2009, Nachura):
IV. Modes of Acquiring Land Titles  Presidential Decree (P.D.) No. 1529
1. Title by public grant – conveyance of public eliminated the distinction between the
land by government to a private individual general jurisdiction vested in the RTC and
2. Title by acquisitive prescription – open, the latter’s limited jurisdiction when acting
continuous, exclusive, notorious possession of a merely as a land registration court. Land
property registration courts, as such, can now hear
3. Title by accretion – alluvion and decide even controversial and
4. Title by reclamation – filling of submerged land contentious cases, as well as those involving
by deliberate act and reclaiming title thereto; substantial issues. It may, therefore, hear
government and determine all questions that arise from a
5. Title by voluntary transfer – private grant; petition for registration.
voluntary execution of deed of conveyance
6. Title by involuntary alienation – no consent  EXCEPTIONS:
from owner of land; forcible acquisition by state
 When the case involves -
(expropriation)
o lots without controversy or opposition
7. Title by descent or devise – hereditary
o contested lots where the value does not
succession to the estate of deceased owner
8. Title by emancipation patent or grant – for exceed P100,000.00, in which case, the
MTC’s have jurisdiction.
purpose of ameliorating sad plight of tenant-

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 2: TORRENS CERTIFICATE of TITLE
such instrument to be filed with the Register of

Chapter 2: Torrens Certificate of Title Deeds of the province or city where the land lies,
and to be there registered like other deeds and
nd
This 2 Chapter will explore the three major kinds of conveyance, whereupon a certificate of title shall be
Torrens certificate of title. These are: entered as in other cases of registered land, and an
owner's duplicate issued to the grantee.
I. Original Certificate of Title
II. Transfer Certificate of Title The deed, grant, patent or instrument of
III. Patents conveyance from the Government to the grantee
shall not take effect as a conveyance or bind the
land but shall operate only as a contract between
the Government and the grantee and as evidence
I. Original Certificate of Title or OCT of authority to the Register of Deeds to make
 It is the first certificate of title issued in the registration.
name of a registered owner by the
It is the act of registration that shall be the operative
Register of Deeds covering a parcel of land act to affect and convey the land, and in all cases
which had been registered under the under this Decree, registration shall be made in the
Torrens System, by virtue of judicial or office of the Register of Deeds of the province or
administrative proceedings. city where the land lies. The fees for registration
shall be paid by the grantee. After due registration 241
and issuance of the certificate of title, such land

shall be deemed to be registered land to all intents
II. Transfer Certificate of Title and purposes under this Decree.
 The subsequent certificate of title
pursuant to any deed of transfer or NOTE:
conveyance to another person. The  Patents only involve public lands which
Register of Deeds shall make a new are alienated by the Government,
certificate of title and given him an owner’s pursuant to the Public Land Act.
duplicate certificate. The previous certificate  The patent (even if denominated as deed of
(need not be an OCT) shall be stamped conveyance) is not really a conveyance but
“cancelled”. a contract between the grantee and the
Government and evidence of authority to
PD 1529 the Register of Deeds to make registration.
Sec. 43  The act of registration is the operative act
Transfer Certificate of Title. The subsequent to affect and convey the land.
certificate of title that may be issued by the Register
of Deeds pursuant to any voluntary or involuntary
instrument relating to the same land shall be in like (Patents will be discussed more thoroughly in
form, entitled "Transfer Certificate of Title", and Chapter 7.)
likewise issued in duplicate. The certificate shall show
the number of the next previous certificate covering  GENERAL RULE:
the same land and also the fact that it was originally  A Torrens Certificate of Title is valid
registered, giving the record number, the number of and enforceable against the whole
the original certificate of title, and the volume and world. (Asked in ’08)
page of the registration book in which the latter is
found.
 Egao vs. CA, (1989): A Torrens title, once
registered, cannot be defeated, even by
adverse, open and notorious possession. A
registered title under the Torrens system
III. Patents cannot be defeated by prescription. The
title, once registered, is notice to the whole
PD 1529
world. All persons must take notice. No one
Sec. 103 can plead ignorance of the registration.
Certificates of title pursuant to patents. Whenever
public land is by the Government alienated, granted
or conveyed to any person, the same shall be
brought forthwith under the operation of this
Decree.
It shall be the duty of the official issuing the

instrument of alienation, grant, patent or
conveyance in behalf of the Government to cause

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 3: ORIGINAL REGISTRATION
Chapter 3: Original Registration II. Effect of Registration
rd
This 3 Chapter will first give you everything you need
 Registration does not vest or give title to the
to know about original land registration: a summary of land, but merely confirms and thereafter
pertinent laws, steps in original registration protects the title already possessed by the
proceedings, among others. owner, making it imprescriptible by
occupation of third parties. It does not give
The chapter discusses FIVE MAJOR LESSONS: the owner any better title than he has.
(Asked in ’98)
I. Laws Governing Land Registration  Vagalidad vs. Vagalidad, (2006):
II.Effect of Registration
Registration is not a mode of acquiring
III.
Original Registration Proceedings
IV.Attributes of and Limitations on ownership. A certificate of title cannot be
Certificates of Title and used to protect a usurper from the true
Registration owner or as a shield for the commission of
V. Judicial Confirmation of Imperfect fraud.
or Incomplete Titles  Camitan and Lopez vs. Fidelity Investment
Corp.: (2008,Nachura):Possession of an
I. Laws Governing Land Registration owner’s duplicate copy of a certificate of 242
title is not necessarily equivalent to

ownership the land covered by it. The
A. PD NO. 1529 certificate by itself does not vest ownership.
 The Property Registration Decree covers It is merely an evidence of title over the
both ordinary and cadastral registration property.
proceedings. It supersedes the Land
Registration Act and the Cadastral Act.
 Application of the Land Registration Act, as
amended by the Property Registration III. Original Registration Proceeding
Decree: (Asked in ’89 and ’07)
 Steps in Original Registration
B. CA 141 Proceedings:
 The Public Land Act governs the procedure 1. Determine if the land is registrable
for the judicial confirmation of imperfect or 2. Determine if you are qualified to apply
incomplete titles. 3. Survey the land
 It applies to lands of the public domain 4. File the application (survey attached) for land
which have been declared open to registration with the appropriate court
disposition or concession and officially 5. Court sets initial hearing
delimited and classified. 6. Publication of the initial hearing
7. File an opposition to the application
C. RA NO. 8371 8. Hearing
 The Indigenous Peoples Rights Act 9. Judgment
recognizes the rights of ownership and 10. Issuance of decree
possession of indigenous cultural
communities to their ancestral domains and A. WHAT LANDS ARE REGISTRABLE?
lands on the basis of native title, and defines
the extent of these lands and domains. It 1. Registrable lands
expressly converts ancestral lands into a. Private Lands
public agricultural lands, and individuals b. Agricultural Lands
members of the cultural communicates shall 1987 CONSTITUTION
have the option to secure title to their Art. XII
ancestral lands under the CA 141 or PD Sec. 2
1529. xxx With the exception of agricultural lands, all other natural
resources shall not be alienated. xxx
NOTE: The IPRA still refers to the Land
Registration Act and not the Property Sec 3. Lands of the public domain are classified into
agricultural, forest or timber, mineral lands and national
Registration Decree, which bolsters the
parks. Agricultural lands of the public domain may be further
argument that the former was not repealed by classified by law according to the uses to which they may
the latter. be devoted. Alienable lands of the public domain shall be
limited to agricultural lands. xxx

lOMoARcPSD|3291925
 Republic vs. CA and Naguit, (2005): If in the alienable lands of the public domain except by lease,
public domain, the land must be classified for a period not exceeding twenty-five years,
as alienable and disposable. It must be renewable for not more than twenty-five years, and
classified as such at the time of filing the not to exceed one thousand hectares in area. xxx
application for registration.
 Private lands may be owned for as long as
2. Non- registrable lands: (Asked in ’07) the corporation is at least 60% Filipino. :
1987, CONSTITUTION
Art. XII 1987, CONSTITUTION
Sec. 2 Art. XII
All lands of the public domain, waters, minerals, coal, Sec. 2
petroleum, and other mineral oils, all forces of potential xxx The State may directly undertake such activities,
energy, fisheries, forests or timber, wildlife, flora and fauna, or it may enter into co-production, joint venture, or
and other natural resources are owned by the State. xxx production-sharing agreements with Filipino citizens,
or corporations or associations at least sixty per
Civil Code centum of whose capital is owned by such citizens.
Art. 420 Such agreements may be for a period not exceeding
The following things are property of public dominion: twenty-five years, and under such terms and
1. Those intended for public use, such as roads, conditions as may be provided by law. xxx
canals, rivers, torrents, ports and bridges constructed 243
by the State, banks, shores, roadsteads, and others  Additional Requirements: (OCEN-PAAL)

of similar character;
2. Those which belong to the State, without being for PD 1529
public use, and are intended for some public service Sec. 14
or for the development of the national wealth. Who may apply. The following persons may file in the
proper (Court of First Instance) Regional Trial Court
 The following lands cannot be registered: an application for registration of title to land, whether
 Forest or timberlands personally or through their duly authorized
representatives:
 Lands for public use: roads, ports and
bridges, etc. (1) Those who by themselves or through their
 Lands which are owned by the State for predecessors-in-interest have been in Open,
public service or development of continuous, exclusive and notorious possession and
national wealth. occupation of alienable and disposable lands of the
public domain under a bona fide claim of ownership
B. WHO MAY APPLY? since June 12, 1945, or earlier.
 Constitutional Requirements and
(2) Those who have acquired ownership of private
Limitations:
lands by Prescription under the provision of existing
laws.
 Only Filipino Citizens:
1987, CONSTITUTION (3) Those who have acquired ownership of private
Art. XII lands or abandoned river beds by right of Accession
Sec. 3 or accretion under the existing laws.
xxx Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve hectares (4) Those who have acquired ownership of land in
thereof by purchase, homestead, or grant. Xxx any other manner provided for by Law.
 Exceptions: Where the land is Owned in common, all the co-

1. Aliens by way of hereditary succession owners shall file the application jointly.
2. Natural born citizens who have
3. lost their citizenship- limited to Where the land has been sold under Pacto de retro,
the vendor a retro may file an application for the
4. 5,000 sq. m. for urban land and 3
original registration of the land, provided, however,
hectares for rural land (RA No. 7042 as that should the period for redemption expire during
amended by RA No. 8179) the pendency of the registration proceedings and
ownership to the property consolidated in the vendee
 Private corporations may not hold alienable a retro, the latter shall be substituted for the applicant
lands of the public domain except by lease: and may continue the proceedings.
1987, CONSTITUTION A trustee on behalf of his principal may apply for

Art. XII original registration of any land held in trust by him,
Sec. 3 unless prohibited by the instrument creating the trust.
xxx Private corporations or associations may not hold

lOMoARcPSD|3291925
 Judicial Confirmation of Title: CA 141 vs.  signed and sworn to by the

PD 1529 applicant/duly authorized person, and if
Republic vs. Tsai, (2009): CA 141 has been more than one applicant, it shall be
amended many times…As the law now stands, signed and sworn to by and in behalf of
a mere showing of possession and occupation each
for 30 years or more is not sufficient. Therefore,  It shall contain:
since the effectivity of PD 1073 on 25 January  a description of the land
1977, it must now be shown that possession and  citizenship and civil status of the
occupation of a piece of land by the applicant, applicant
by himself or through his predecessors-in-  if married, the name of the wife or
interest, started on 12 June 1945 or earlier. husband
This provision is in total conformity with Section  if the marriage has been legally dissolved,
14(1) of PD 1529. when and how
 full names and addresses of all
 BUT take note: occupants and those of the adjoining
 There are still some cases that use CA owners, if known
141 for judicial confirmation of imperfect  if not known, it shall state the extent of
title: the search made to find them. 244
Republic vs. Fabio, (2008): CA 141, also known

Note: It must be accompanied by the original
as the Public Land Act, remains to this day the tracing cloth plan, white or blue copies thereof,
existing general law governing the classification the original and copies of the technical
and disposition of lands of the public domain, description and geodetic engineer’s certification.
other than timber and mineral lands.
Special Cases:
C. SURVEY
 The survey may be done by a public or PD 1529
private surveyor. When done by a private Sec. 20
surveyor it has to be approved by the Land When land applied for borders on road. If the
Management Bureau. PD 239 withdrew application describes the land as bounded by a public
the authority of the Land Registration or private way or road, it shall state whether or not the
Authority to approve original survey applicant claims any and what portion of the land
plans. within the limits of the way or road, and whether the
applicant desires to have the line of the way or road
determined.
D. APPLICATION
PD 1529
PD 1529
Sec. 16
Sec. 15
Non-resident applicant. If the applicant is not a
Form and contents. The application for land
resident of the Philippines, he shall file with his
registration shall be in writing, signed by the
application an instrument in due form appointing an
application or the person duly authorized in his behalf,
agent or representative residing in the Philippines,
and sworn to before any officer authorized to
giving his full name and postal address, and shall
administer oaths for the province or city where the
therein agree that the service of any legal process in
application was actually signed. If there is more than
the proceedings under or growing out of the
one applicant, the application shall be signed and
application made upon his agent or representative
sworn to by and in behalf of each.
shall be of the same legal effect as if made upon the
applicant within the Philippines. If the agent or
The application shall contain a description of the land
representative dies, or leaves the Philippines, the
and shall state the citizenship and civil status of the
applicant shall forthwith make another appointment
applicant, whether single or married, and, if married,
for the substitute, and, if he fails to do so the court
the name of the wife or husband, and, if the marriage
may dismiss the application.
has been legally dissolved, when and how the
marriage relation terminated. It shall also state the full
names and addresses of all occupants of the land and  If the land bounded by a road, the applicant
those of the adjoining owners, if known, and, if not must state in his application if he claims any
known, it shall state the extent of the search made to portion of the land within the limits of the
find them. road, or if he likes to have the boundaries
determined.
 The application for land registration shall be:  If the applicant is a non-resident, he shall
 in writing appoint an agent or representative who is a
Philippine resident.

lOMoARcPSD|3291925
 Intestate Estate of Don Mariano San Pedro 2. By mailing.

vs. CA, (1996): A person claiming ownership (a) Mailing of notice to persons named in the
of real property must clearly identify the land application. The Commissioner of Land Registration
claimed by him. shall also, within seven days after publication of said
notice in the Official Gazette, as hereinbefore
 In re: Application for Land Registration vs.
provided, cause a copy of the notice of initial hearing
Republic, (2008, Nachura): An applicant in a to be mailed to every person named in the notice
land registration case must prove the facts whose address is known.
and circumstances evidencing the alleged
ownership of the land applied for. General (b) Mailing of notice to the Secretary of Public
statements which are mere conclusions of Highways, the Provincial Governor and the Mayor. If
law and not factual proof of possession are the applicant requests to have the line of a public way
unavailing. The deeds in its favor only or road determined, the Commissioner of Land
proved possession of its predecessors-in- Registration shall cause a copy of said notice of initial
hearing to be mailed to the Secretary of Public
interest as early as 1948. (The law now
Highways, to the Provincial Governor, and to the
stands that a mere showing of possession Mayor of the municipality or city, as the case may be,
for 30 years is not sufficient. OCEN in which the land lies.
possession must be shown to have stated
on June 12, 1945 or earlier.) (c) Mailing of notice to the Secretary of Agrarian
Reform, the Solicitor General, the Director of Lands, 245
E. INITIAL HEARING the Director of Public Works, the Director of Forest

Development, the Director of Mines and the Director
PD 1529 of Fisheries and Aquatic Resources. If the land
Sec. 23 borders on a river, navigable stream or shore, or on
Notice of initial hearing, publication, etc. The court an arm of the sea where a river or harbor line has
shall, within five days from filing of the application, been established, or on a lake, or if it otherwise
issue an order setting the date and hour of the initial appears from the application or the proceedings that a
hearing which shall not be earlier than forty-five days tenant-farmer or the national government may have a
nor later than ninety days from the date of the order. claim adverse to that of the applicant, notice of the
xxx initial hearing shall be given in the same manner to
the Secretary of Agrarian Reform, the Solicitor
General, the Director of Lands, the Director of Mines
 The court shall issue an order setting the and/or the Director of Fisheries and Aquatic
date and hour of the initial hearing within Resources, as may be appropriate.
five days from filing of the application.
The initial hearing shall be 45-90 days from 3. By posting.
the date of the order. The Commissioner of Land Registration shall also
cause a duly attested copy of the notice of initial
F. PUBLICATION hearing to be posted by the sheriff of the province or
city, as the case may be, or by his deputy, in a
PD 1529 conspicuous place on each parcel of land included in
Sec. 23 the application and also in a conspicuous place on the
xxx The public shall be given notice of the initial bulletin board of the municipal building of the
hearing of the application for land registration by municipality or city in which the land or portion thereof
means of (1) publication; (2) mailing; and (3) posting. is situated, fourteen days at least before the date of
initial hearing.
1. By publication. The court may also cause notice to be served to such
Upon receipt of the order of the court setting the time other persons and in such manner as it may deem
for initial hearing, the Commissioner of Land proper.
Registration shall cause notice of initial hearing to be
published once in the Official Gazette and once in a 1. By Publication
newspaper of general circulation in the Philippines:  The Commissioner of Land Registration
shall cause it to be published: once in the
Provided, however, that the publication in the Official Official Gazette (sufficient to confer
Gazette shall be sufficient to confer jurisdiction upon jurisdiction) and once in a newspaper of
the court. Said notice shall be addressed to all general circulation in the Philippines
persons appearing to have an interest in the land
 The notice is addressed to:
involved including the adjoining owners so far as
known, and "to all whom it may concern".  all persons appearing to have an
interest in the land the adjoining owners
Said notice shall also require all persons concerned to so far as known "to all whom it may
appear in court at a certain date and time to show concern"
cause why the prayer of said application shall not be
granted.

lOMoARcPSD|3291925
2. By Mailing upon motion of the applicant, no reason to the

 Within 7 days from publication in the OG, contrary appearing, order a default to be recorded
the Commissioner of Land Registration shall and require the applicant to present evidence. By the
mail a copy of the notice to: description in the notice "To all Whom It May
Concern", all the world are made parties defendant
a. every person named in the notice whose
and shall be concluded by the default order.
address is known. Where an appearance has been entered and an
b. the Secretary of Public Highways, to the answer filed, a default order shall be entered against
Provincial Governor, and to the Mayor of persons who did not appear and answer.
the municipality or city, in which the land
lies, if the applicant requests to have the  Who may file? Any person claiming an
line of a public way or road determined interest.
c. Secretary of Agrarian Reform, the  When to file? On or before the date of initial
Solicitor General, the Director of Lands, hearing, or within such further time as may
the Director of Mines and/or the Director be allowed by the court.
of Fisheries and Aquatic Resources, (as  What shall it contain? It shall state all the
appropriate) if the land borders on a objections and the interest claimed by the
river, navigable stream or shore, or on party the remedy desired.
an arm of the sea where a river or  How shall it be made? It shall be signed
harbor line has been established, or on and sworn to by him or by some other duly 246
a lake, or if it otherwise appears from authorized person.

the application or the proceedings that a
tenant-farmer or the national NOTE:
government may have a claim adverse  If no one appears/files an answer, upon
to that of the applicant motion, the court shall order a default to be
recorded.
3. By Posting  By the description in the notice "To all
 CLR shall cause the sheriff or his deputy to Whom It May Concern", all the world are
post the notice at least 14 days before the made parties defendant and shall be
hearing: in a conspicuous place on each concluded by the default order.
parcel of land included in the application and  Where an appearance has been entered
in a conspicuous place on the bulletin and an answer filed, a default order shall be
board of the municipal building of the entered against persons who did not appear
municipality or city in which the land or and answer.
portion thereof is situated.  Director of Lands vs. Agustin, (1921):
Absence of opposition does not justify
G. OPPOSITION (ASKED IN ’89) outright registration.
PD 1529 H. HEARING
Sec. 23 Opposition to application in ordinary  Proof of Ownership:
proceedings. Any person claiming an interest,
1. Municipality of Santiago vs. CA, (1983):
whether named in the notice or not, may appear and
file an opposition on or before the date of initial Tax declaration and receipts are not
hearing, or within such further time as may be allowed conclusive but have strong probative value
by the court. The opposition shall state all the when accompanied by proof of actual
objections to the application and shall set forth the possession.
interest claimed by the party filing the same and apply 2. Republic vs. Tayag, (1984): Payment in
for the remedy desired, and shall be signed and one lump sum to cover all past taxes is
sworn to by him or by some other duly authorized “irregular” and affects the validity of the
person. applicant’s claim of ownership
If the opposition or the adverse claim of any person
3. Spanish titles are no longer admissible.
covers only a portion of the lot and said portion is not
properly delimited on the plan attached to the
application, or in case of undivided co-ownership, I. JUDGMENT
conflicting claims of ownership or possession, or
overlapping of boundaries, the court may require the PD 1529
parties to submit a subdivision plan duly approved by Sec 30. When judgment becomes final; duty to cause
the Director of Lands. issuance of decree. The judgment rendered in a land
registration proceedings becomes final upon the
PD 1529 expiration of thirty days to be counted from the data of
Sec 26. Order of default; effect. If no person appears receipt of notice of the judgment. An appeal may be
and answers within the time allowed, the court shall, taken from the judgment of the court as in ordinary
civil cases.

lOMoARcPSD|3291925
After judgment has become final and executory, it PD 1529

shall devolve upon the court to forthwith issue an Sec 40. Entry of Original Certificate of Title. Upon
order in accordance with Section 39 of this Decree to receipt by the Register of Deeds of the original and
the Commissioner for the issuance of the decree of duplicate copies of the original certificate of title the
registration and the corresponding certificate of title in same shall be entered in his record book and shall be
favor of the person adjudged entitled to registration. numbered, dated, signed and sealed by the Register
of Deeds with the seal of his office. Said certificate of
 Judgment becomes final upon expiration of title shall take effect upon the date of entry thereof.
30 days from receipt of notice of judgment. The Register of Deeds shall forthwith send notice by
mail to the registered owner that his owner's duplicate
is ready for delivery to him upon payment of legal
 Forms of Judgment: fees.
1. Writ of possession
 Vencilao vs. Vano, (1990): The writ may  Preparation of the Decree:
be issued not only against the person  Court directs the Land Registration
defeated in the registration case but Authority to issue a decree of
also against any one adversely registration and certificate of Title within
occupying the land during the 15 days from entry of judgment.
proceedings.
 Bernas vs. Nuevo, (1984): The writ does
o Appeal reckoned from the
247
not lie against a person who entered the Solicitor General’s receipt of

land after the issuance of the decree the decision
and who was not a party in the case. o Becomes final 15 days from
He can only be proceeded against in a receipt
separate action for ejectment or  Commissioner signs the decree
reinvindicatory action.
 Decree is entered and filed with the LRC
 OCT and owner’s duplicate certificate
2. Writ of demolition
are sent to the Register of Deeds where
 Gawaran vs. IAC, (1988): This writ is a
property is situated.
complement of the writ of possession.
 Register of Deeds enters the information
in his registration book.
J. ISSUANCE OF DECREE
 Register of Deeds sends notice by mail
PD 1529 to owner that his duplicate is ready for
Sec 39. Preparation of decree and Certificate of Title. delivery upon payment of legal fees.
After the judgment directing the registration of title to
land has become final, the court shall, within fifteen  Gomez vs. CA, (1988): Court retains
days from entry of judgment, issue an order directing jurisdiction over the case until after the
the Commissioner to issue the corresponding decree expiration of 1 year from the issuance of the
of registration and certificate of title. The clerk of court decree of registration.
shall send, within fifteen days from entry of judgment,
certified copies of the judgment and of the order of the
court directing the Commissioner to issue the
corresponding decree of registration and certificate of IV. Attributes of and Limitation In
title, and a certificate stating that the decision has not Certificate of Title and Registered
been amended, reconsidered, nor appealed, and has Land (FIIC)
become final.
Thereupon, the Commissioner shall cause to be PD 1529

prepared the decree of registration as well as the Sec 44. Statutory liens affecting title. Every registered
original and duplicate of the corresponding original owner receiving a certificate of title in pursuance of a
certificate of title. decree of registration, and every subsequent
purchaser of registered land taking a certificate of title
The original certificate of title shall be a true copy of for value and in good faith, shall hold the same free
the decree of registration. The decree of registration from all encumbrances except those noted in said
shall be signed by the Commissioner, entered and certificate and any of the following encumbrances
filed in the Land Registration Commission. The which may be subsisting, namely:
original of the original certificate of title shall also be
signed by the Commissioner and shall be sent, First. Liens, claims or rights arising or existing under
together with the owner's duplicate certificate, to the the laws and Constitution of the Philippines which are
Register of Deeds of the city or province where the not by law required to appear of record in the Registry
property is situated for entry in his registration book. of Deeds in order to be valid against subsequent
purchasers or encumbrancers of record.

lOMoARcPSD|3291925
Second. Unpaid real estate taxes levied and or an equivalent phrase occurs in this Decree, it shall
assessed within two years immediately preceding the be deemed to include an innocent lessee, mortgagee,
acquisition of any right over the land by an innocent or other encumbrancer for value.
purchaser for value, without prejudice to the right of
the government to collect taxes payable before that Upon the expiration of said period of one year, the
period from the delinquent taxpayer alone. decree of registration and the certificate of title issued
shall become incontrovertible. Any person aggrieved
Third. Any public highway or private way established by such decree of registration in any case may pursue
or recognized by law, or any government irrigation his remedy by action for damages against the
canal or lateral thereof, if the certificate of title does applicant or any other persons responsible for the
not state that the boundaries of such highway or fraud.
irrigation canal or lateral thereof have been
determined.  Ground for reopening and reviewing the
decree of registration: actual fraud (Asked
Fourth. Any disposition of the property or limitation on
in ’92)
the use thereof by virtue of, or pursuant to,
Presidential Decree No. 27 or any other law or  Periods:
regulations on agrarian reform.  Must be reopened not later than 1 yr
from and after the date of the entry of
A. FREE FROM LIENS AND such decree. (Asked in ’90 and ’03)
ENCUMBRANCES  Upon the expiration of said period of 248
one year, the decree of registration and

 EXCEPT those noted in the certificate and the certificate of title issued shall
CATH: become incontrovertible. The only
1. Liens, claims or rights existing under the remedy left is an action for damages.
laws and Constitution which are not required
to appear of record in the Registry of Deeds  Prohibitions:
2. Unpaid real estate Taxes levied and  Cannot be reopened because of
assessed within 2 yrs preceding the absence, minority, or other disability of
acquisition of any right over the land any person adversely affected thereby
3. Any public Highway or private way  Cannot be reopened where an innocent
established or recognized by law, or any purchaser for value may be prejudiced
government irrigation canal or lateral (includes an innocent lessee,
thereof, if the certificate of title does not mortgagee, or other encumbrancer for
state that the boundaries of such have been value.)
determined.
4. Any disposition of the property or limitation  Arguelles vs. Timbancaya, (1976): The rule
on the use thereof by virtue of, or pursuant on the incontrovertible nature of a certificate
to, Presidential Decree No. 27 or any other of title applies when what is involved is the
laws on Agrarian reform. validity of the OCT, not when it concerns
that of the TCT.
B. INDEFEASIBLE (ASKED IN’08)
C. IMPRESCRIPTIBLE
PD 1529
Sec 32. Review of decree of registration; Innocent PD 1529
purchaser for value. The decree of registration shall Sec 47. Registered land not subject to prescriptions.
not be reopened or revised by reason of absence, No title to registered land in derogation of the title of
minority, or other disability of any person adversely the registered owner shall be acquired by prescription
affected thereby, nor by any proceeding in any court or adverse possession.
for reversing judgments, subject, however, to the right
of any person, including the government and the  Barcelona vs. Barcelona, (1956):
branches thereof, deprived of land or of any estate or Prescription is unavailing not only against
interest therein by such adjudication or confirmation of
the registered owner but also against his
title obtained by actual fraud, to file in the proper
Court of First Instance a petition for reopening and hereditary successors because the latter
review of the decree of registration not later than one merely step into the shoes of the decedent
year from and after the date of the entry of such by operation of law and are merely the
decree of registration, but in no case shall such continuation of the personality of their
petition be entertained by the court where an innocent predecessor-in-interest.
purchaser for value has acquired the land or an
interest therein, whose rights may be prejudiced.
Whenever the phrase "innocent purchaser for value"

lOMoARcPSD|3291925
D. NOT SUBJECT TO COLLATERAL V. Judicial Confirmation of Imperfect or

ATTACK Incomplete Titles
PD 1529
Sec 48. Certificate not subject to collateral attack. A CA 141
certificate of title shall not be subject to collateral Sec 57
attack. It cannot be altered, modified, or canceled No title or right to, or equity in, any lands of the public
except in a direct proceeding in accordance with law. domain may hereafter be acquired by prescription or
by adverse possession or occupancy, or under or by
virtue of any law in effect prior to American
 Spouses Padilla vs. Velasco, et. al, G.R. No. occupation, except as expressly provided by laws
169956 (2009, Nachura) enacted after said occupation of the Philippines by the
Facts: Velasco et al (respondents) are the heirs United States.
of Artemio who died, leaving a parcel of land.
He acquired it by virtue of a deed of sale in his  General Rule: No title or right to, or equity in,
favor. The Padilla sps (petitioners) entered the any lands of the public domain may be
land as trustees by virtue of a deed of sale acquired by prescription or by adverse
executed by a bank in favor of the Solomon sps. possession or occupancy except as
Velascos demanded that the Padillas vacate the expressly provided by law. The Public Land
property. Act recognizes the concept of ownership 249
Padillas cut trees, built a house and harvested under the civil law. This ownership is based

crops. Velascos filed a complaint for accion on adverse possession and the right of
publiciana before the RTC. Velascos presented acquisition is governed by the Chapter on
deed of sale in favor of Artemio, while Padillas judicial confirmation of imperfect or
presented deed of sale between bank and incomplete titles.
Solomons.  This applies only to alienable and
The Padillas also argue that the Solomon sps disposable agricultural lands of the public
acquired the land in good faith and for value and domain. Under Sec. 6 of CA 141, the
that they argue that Lot 2161 (the one they are classification of public lands into alienable
occupying) and Lot 76-pt (the lot the Solomon and disposable forest lands, or mineral
spouses bought) are one and the same. lands is the prerogative of the Executive
Department.
Held: The Velascos have a better right to the  Bracewell vs. CA, (2000): The rule on
land. The instant case is for accion publiciana, confirmation of imperfect title does not apply
or for recovery of the right to possess. unless and until the land classified as, say,
Accion publiciana is also used to refer to an forest land, is released in an official
ejectment suit where the cause of dispossession proclamation to that effect so that if may
is not among the grounds for forcible entry and form part of the disposable agricultural lands
unlawful detainer, or when possession has been of the public domain.
lost for more than one year and can no longer
be maintained under Rule 70 of the Rules of A. PERIOD OF FILING
Court.
The objective of the plaintiffs in accion  RA No. 9176 extended the period to file an
publiciana is to recover possession only, not application for judicial confirmation of
ownership. The Velascos were able to establish imperfect or incomplete title to December
lawful possession of the land when the Padillas 31, 2020. It further limited the area applied
occupied the property. The OCT was issued to for to 12 hectares.
the original owners who then sold the land to
Artemio. B. REQUISITES:
From then on, he was in continuous possession
of the land until his death. It was only in 1987,  Filipino citizen
when the Padillas occupied the property. The  He must have, by himself, or thru his
argument that the lots are one and the same predecessors – in - interest, possessed and
is a collateral attack on the title over the occupied an alienable and disposable
property which is registered in the name of agricultural portion of the public domain
Artemio, which cannot be countenanced.  Such possession and occupation must have
been OCEN and in the concept of owner
since June 12, 1945
 Application filed with proper court

lOMoARcPSD|3291925
C. PRIVATE CORPORATIONS
 Director Of Lands vs. IAC and Acme

Plywood and Veneer Co., (1986): Where at
the time the corporation acquired the land,
its predecessor-in-interest had been in
possession and occupation thereof in the
manner and for the period prescribed by law
as to entitle him to registration in his name,
then the proscription against corporation
acquiring alienable lands of the public
domain does not apply for the land was no
longer public land but private property. Since
the land is private, the corporation can
institute confirmation proceedings.
NOTE:
 MAXIMUM LAND THAT CAN BE APPLIED
FOR: 144 hectares 250
 In case of foreigner, it sufficient that he is

already Filipino citizen at the time of his
application.
 Corporation who has less than 60% Filipino
ownership cannot apply confirmation of
imperfect title; can only lease
 PERSONS COMPETENT TO QUESTION
LAND GRANT: Persons who obtained title
from State or thru persons who obtained title
from State.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 4: CADASTRAL REGISTRATION PROCEEDINGS
by a licensed Geodetic Engineer duly authorized to

Chapter 4: Cadastral Registration conduct the survey under this Section, or shall
Proceedings maliciously interfere with the placing of any
monument or remove such monument, or shall
th destroy or remove any notice of survey posted on the
This 4 Chapter deals with processes involved in land pursuant to law, shall be punished by a fine of
Cadastral Registration. not more than one thousand pesos or by
imprisonment for not more than one year, or both.
Only one lesson is discussed in this Chapter.
I. Steps in Cadastral Registration Proceedings
PD 1529
Sec 36. Petition for registration. When the lands have
 Unlike other kinds of registration, this is been surveyed or plotted, the Director of Lands,
compulsory as it is initiated by the represented by the Solicitor General, shall institute
government. original registration proceedings by filing the
necessary petition in the Court of First Instance of the
PD 1529 place where the land is situated against the holders,
Sec 35. Cadastral Survey preparatory to filing of claimants, possessors, or occupants of such lands or
petition. any part thereof, stating in substance that public
interest requires that the title to such lands be settled
(a) When in the opinion of the President of the and adjudicated and praying that such titles be so
settled and adjudicated: 251
Philippines public interest so requires that title to any

unregistered lands be settled and adjudicated, he
may to this end direct and order the Director of Lands The petition shall contain a description of the lands
to cause to be made a cadastral survey of the lands and shall be accompanied by a plan thereof, and may
involved and the plans and technical description contain such other data as may serve to furnish full
thereof prepared in due form. notice to the occupants of the lands and to all persons
who may claim any right or interest therein.
(b) Thereupon, the Director of Lands shall give notice
to persons claiming any interest in the lands as well Where the land consists of two or more parcels held
as to the general public, of the day on which such or occupied by different persons, the plan shall
survey will begin, giving as fully and accurately as indicate the boundaries or limits of the various parcels
possible the description of the lands to be surveyed. as accurately as possible. The parcels shall be known
Such notice shall be punished once in the Official as "lots" and shall on the plan filed in the case be
Gazette, and a copy of the notice in English or the given separate numbers by the Director of Lands,
national language shall be posted in a conspicuous which numbers shall be known as "cadastral lot
place on the bulletin board of the municipal building of numbers".
the municipality in which the lands or any portion
thereof is situated. A copy of the notice shall also be The lots situated within each municipality shall, as far
sent to the mayor of such municipality as well as to as practicable, be numbered consecutively beginning
the barangay captain and likewise to the with number "one", and only one series of numbers
Sangguniang Panlalawigan and the Sangguniang shall be used for that purpose in each municipality.
Bayan concerned. However in cities or townsites, a designation of the
landholdings by blocks and lot numbers may be
(c) The Geodetic Engineers or other employees of the employed instead of the designation by cadastral lot
Bureau of Lands in charge of the survey shall give numbers.
notice reasonably in advance of the date on which the
survey of any portion of such lands is to begin, which The cadastral number of a lot shall not be changed
notice shall be posted in the bulletin board of the after final decision has been entered decreasing the
municipal building of the municipality or barrio in registration thereof, except by order of court. Future
which the lands are situated, and shall mark the subdivisions of any lot shall be designated by a letter
boundaries of the lands by monuments set up in or letters of the alphabet added to the cadastral
proper places thereon. It shall be lawful for such number of the lot to which the respective subdivisions
Geodetic Engineers and other employees to enter pertain. The letter with which a subdivision is
upon the lands whenever necessary for the purposes designated shall be known as its "cadastral letter":
of such survey or the placing of monuments. Provided, however, that the subdivisions of cities or
(d) It shall be the duty of every person claiming an townsites may be designated by blocks and lot
interest in the lands to be surveyed, or in any parcel numbers.
thereof, to communicate with the Geodetic Engineer
upon his request therefor all information possessed
by such person concerning the boundary lines of any
lands to which he claims title or in which he claims
any interest.
(e) Any person who shall willfully obstruct the making

of any survey undertaken by the Bureau of Lands or

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 4: CADASTRAL REGISTRATION PROCEEDINGS
I. Steps in Cadastral Registration 8. Actual survey/ plotting of the land

Proceedings 9. Director of Lands represented by Solicitor
General shall institute original registration
proceedings
1. Determination of the President that public 10. Publication, mailing posting
interest requires title to unregistered lands 11. Hearing
be settled 12. Decision
2. Director of lands shall make a cadastral 13. Issuance of the decree and certificate of title
survey
3. Director of Lands gives notice to interested NOTE: In voluntary registration proceedings,
persons there is no res judicata when the applicant fails
4. Publication of notice to prove his title. In cadastral registration, if the
5. A copy of the notice shall also be sent to the applicant cannot prove that he is entitled to the
mayor and the sanggunian land, the land becomes public land. There is res
6. Geodetic engineers/ Bureau of Land judicata.
employees shall notify (re: survey) by
posting at the municipal building
7. Interested persons should communicate with
the geodetic engineer if he requests for any 252
information about the land

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 5: SUBSEQUENT REGISTRATION
NOTE: The deed, mortgage, lease, or other

Chapter 5: Subsequent Registration voluntary instrument, except a will shall ONLY
operate as:
th
This 5 Chapter tackles the subsequent registration 1. A contract between the parties and
pursuant to dealings such as conveyances or 2. Evidence of authority to the Register of
transfers. These dealings may be voluntary (sale, Deeds to make registration.
lease etc.) or involuntary (writs, orders etc.)
 The act of registration shall be the
There are EIGHT MAJOR LESSONS in this chapter:
operative act to convey or affect the land
insofar as third persons are concerned.
I. Two Types of Dealings  A forged deed is an absolute nullity and
II. The Necessity and Effects of conveys no title. (Asked in ’85, ’89, ’00 and
Registration ’05)
III. Voluntary vs. Involuntary  EXCEPTION: If there is good faith, a
Dealings TCT has already been issued to the
IV. Registration of Voluntary purchaser, the latter being an innocent
Instruments in General
purchaser for value according to Sec.
Transfers 39, PD 1529, then the title is good.
VI. Mortgages and Leases
VII. Powers of Attorney, Trusts PD 1529 253
VIII. Involuntary Dealings Sec 52. Constructive notice upon registration. Every

conveyance, mortgage, lease, lien, attachment, order,
judgment, instrument or entry affecting registered land
I. Two Types of Dealings shall, if registered, filed or entered in the office of the
Register of Deeds for the province or city where the
A. VOLUNTARY DEALINGS land to which it relates lies, be constructive notice to
all persons from the time of such registering, filing or
 Deeds, instruments, documents which are
entering.
the results of free and voluntary acts of
parties thereto.
 Every entry affecting registered land shall, if
registered, filed or entered in the office of
B. INVOLUNTARY DEALINGS
the Register of Deeds be constructive notice
 Writ, order, or process issued by the court of
to all persons from the time of registering.
record affecting registered land, also other
instruments which are not willful acts of the
registered owner, executed without his
knowledge or consent. III. Voluntary vs. Involuntary Dealings
II. Necessity and Effects of Registration VOLUNTARY INVOLUNTARY

DEALINGS DEALINGS
Sale, mortgage, lease, Attachment, injunction,
PD 1529 patent, powers of mandamus, levy on
Sec 51. Conveyance and other dealings by registered attorney, trusts execution, notice of lis
owner. An owner of registered land may convey, pendens
mortgage, lease, charge or otherwise deal with the Presentation of the Entry in the day book is
same in accordance with existing laws. He may use owner’s duplicate sufficient notice to all
such forms of deeds, mortgages, leases or other certificate of title is persons
voluntary instruments as are sufficient in law. required to notify;
mere entry insufficient
But no deed, mortgage, lease, or other voluntary An innocent purchaser Lenin vs. Bass, (1952):
instrument, except a will purporting to convey or affect for value of registered Entry thereof in the day
registered land shall take effect as a conveyance or land becomes the book of the ROD is
bind the land, but shall operate only as a contract registered owner the sufficient
between the parties and as evidence of authority to moment he presents notice to all persons even if
the Register of Deeds to make registration. and files a duly the owner’s duplicate
notarized and valid certificate of title is not
The act of registration shall be the operative act to deed of sale and the presented to the ROD.
convey or affect the land insofar as third persons are same is entered in the
concerned, and in all cases under this Decree, the day book and at the
registration shall be made in the office of the Register same time he
of Deeds for the province or city where the land lies. surrenders or presents
the owner’s duplicate
certificate of title

lOMoARcPSD|3291925
VOLUNTARY INVOLUNTARY  Quiniano vs. CA, (1971): When a

DEALINGS DEALINGS person buys land from one whose rights
covering the land sold over the land is evidenced only by a
and pays deed of sale and an annotation in the
the registration fees.
certificate of title but no TCT.
(Asked in ’98)
Villasor vs. Camon, Dir. Of Lands vs. Reyes,
(1951): (1976):
It is necessary to Entry in the day book is IV. Registration of Voluntary Instruments
register the deed or sufficient notice to all in General
instrument in the entry persons of an adverse
book and a claim without the same
memorandum thereof being annotated at the back PD 1529
shall also be made in of the certificate of title Sec 54. Dealings less than ownership, how
the owner’s duplicate registered. No new certificate shall be entered or
certificate and its issued pursuant to any instrument which does not
original divest the ownership or title from the owner or from
Spouses Labayen vs. AFP Mutual Benefit the transferee of the registered owners.
Leonardo Serafica, Association vs. Santiago,
(2008, Nachura): At (2008, Nachura): Entry of All interests in registered land less than ownership
the time of the filing of the attachment in the books shall be registered by filing with the Register of Deeds 254
the petition for is sufficient notice to all the instrument which creates or transfers or claims

cancellation of persons. Hence, the fact such interests and by a brief memorandum thereof
encumbrance, the that the deed of sale was made by the Register of Deeds upon the certificate of
lease contract already already annotated is of no title, and signed by him.
lost its efficacy. Thus, moment with regard to third
there is no basis to persons. The preference A similar memorandum shall also be made on the
save its annotation on created by the levy on owner's duplicate. The cancellation or extinguishment
defendant’s title. The attachment is not of such interests shall be registered in the same
fact that the diminished by the manner.
cancellation of the subsequent registration of
lease contract was the deed of sale. PD 1529
forged is of no Sec 55. Grantee's name, nationality, etc., to be
moment, for there was stated. Every deed or other voluntary instrument
no violation of a right. presented for registration shall contain or have
endorsed upon it the full name, nationality, residence
General Rule: and postal address of the grantee or other person
acquiring or claiming an interest under such
 Campillo vs. PNB. (1969): A person dealing
instrument, and every deed shall also state whether
with registered property need not go the grantee is married or unmarried, and if married,
beyond, but only has to rely on, the title. the name in full of the husband or wife.
(Asked in ’86 and ’04)
 He is charged with notice only of such If the grantee is a corporation or association, the
burdens and claims which are annotated on instrument must contain a recital to show that such
the title, for registration is the operative act corporation or association is legally qualified to
that binds the property. (Asked in ’84 and acquire private lands. Any change in the residence or
’04) postal address of such person shall be endorsed by
the Register of Deeds on the original copy of the
corresponding certificate of title, upon receiving a
 When should a purchaser investigate? sworn statement of such change. All names and
 Banks are required to exercise more addresses shall also be entered on all certificates.
care and prudence in dealing with
registered lands for their business is one Notices and processed issued in relation to registered
affected with public interest. The general land in pursuance of this Decree may be served upon
rule does not apply. any person in interest by mailing the same to the
 Leung Yee vs. Strong Machinery, addresses given, and shall be binding, whether such
person resides within or without the Philippines, but
(1918): When party concerned has the court may, in its discretion, require further or other
actual knowledge of facts and notice to be given in any case, if in its opinion the
circumstances that would impel a interest of justice so requires.
reasonably cautious man to make
inquiry. PD 1529
 Jamoc vs. CA, (1991): When purchaser Sec 56. Primary Entry Book; fees; certified copies.
is in bad faith; e.g. he had full Each Register of Deeds shall keep a primary entry
knowledge of a previous sale. book in which, upon payment of the entry fee, he shall

lOMoARcPSD|3291925
enter, in the order of their reception, all instruments unwarranted and confers no right on the
including copies of writs and processes filed with him purchaser
relating to registered land.  RA 456 prohibits registration of documents
affecting real property which is delinquent in
He shall, as a preliminary process in registration, note
the payment of real estate taxes. Further, if
in such book the date, hour and minute of reception of
all instruments, in the order in which they were evidence of such payment is not presented
received. They shall be regarded as registered from with 15 days form the date of entry of said
the time so noted, and the memorandum of each document in the primary entry book of the
instrument, when made on the certificate of title to register of deeds the entry shall be deemed
which it refers, shall bear the same date: cancelled.
 Pay fees and DST (government is exempt)
Provided, that the national government as well as the  The instruments are regarded as registered
provincial and city governments shall be exempt from from the time ROD enters them in his book.
the payment of such fees in advance in order to be
entitled to entry and registration.
Every deed or other instrument, whether voluntary or V. Registration of Deeds of Sale and
involuntary, so filed with the Register of Deeds shall Transfers
be numbered and indexed and endorsed with a
reference to the proper certificate of title. All records 255
and papers relative to registered land in the office of PD 1529

the Register of Deeds shall be open to the public in Sec 57. Procedure in registration of conveyances. An
the same manner as court records, subject to such owner desiring to convey his registered land in fee
reasonable regulations as the Register of Deeds, simple shall execute and register a deed of
under the direction of the Commissioner of Land conveyance in a form sufficient in law.
Registration, may prescribe.
The Register of Deeds shall thereafter make out in
All deeds and voluntary instruments shall be the registration book a new certificate of title to the
presented with their respective copies and shall be grantee and shall prepare and deliver to him an
attested and sealed by the Register of Deeds, owner's duplicate certificate.
endorsed with the file number, and copies may be
delivered to the person presenting them. The Register of Deeds shall note upon the original
and duplicate certificate the date of transfer, the
Certified copies of all instruments filed and registered volume and page of the registration book in which the
may also be obtained from the Register of Deeds new certificate is registered and a reference by
upon payment of the prescribed fees number to the last preceding certificate. The original
and the owner's duplicate of the grantor's certificate
shall be stamped "canceled".
A. PROCESS OF REGISTRATION:
The deed of conveyance shall be filled and indorsed
1. File instrument creating or transferring with the number and the place of registration of the
interest and certificate of title with certificate of title of the land conveyed.
Register of Deeds together with:
a. Owner’s duplicate PD 1529
b. Payment of fees & documentary stamp Sec 58. Procedure where conveyance involves
tax portion of land. If a deed or conveyance is for a part
c. Evidence of full payment of real estate only of the land described in a certificate of title, the
tax Register of Deeds shall not enter any transfer
certificate to the grantee until a plan of such land
d. Document of transfer – 1 copy additional
showing all the portions or lots into which it has been
for city/provincial assessor subdivided and the corresponding technical
2. Register of Deeds shall make a descriptions shall have been verified and approved
memorandum on the certificate of title, pursuant to Section 50 of this Decree.
signed by him
3. TCT shall then be issued. Meanwhile, such deed may only be annotated by way
of memorandum upon the grantor's certificate of title,
NOTE: original and duplicate, said memorandum to serve as
 If the grantee is a corporation or association, a notice to third persons of the fact that certain
unsegregated portion of the land described therein
it must show that it is qualified to acquire
has been conveyed, and every certificate with such
private lands. memorandum shall be effectual for the purpose of
 PNB vs. Fernandez, (1935): The issuance of showing the grantee's title to the portion conveyed to
a new transfer certificate without him, pending the actual issuance of the corresponding
presentation of an owner’s duplicate is certificate in his name.

lOMoARcPSD|3291925
Upon the approval of the plan and technical  That plan with the certified copy of the
descriptions, the original of the plan, together with a technical descriptions shall be filed with the
certified copy of the technical descriptions shall be Register of Deeds for annotation in the TCT.
filed with the Register of Deeds for annotation in the  Register of Deeds hall issue a TCT and
corresponding certificate of title and thereupon said
cancel the grantor's certificate partially OR
officer shall issue a new certificate of title to the
grantee for the portion conveyed, and at the same it may be canceled totally and a new one
time cancel the grantor's certificate partially with issued describing therein the remaining
respect only to said portion conveyed, or, if the portion
grantor so desires, his certificate may be canceled
totally and a new one issued to him describing therein C. IF THERE ARE SUBSISTING
the remaining portion: Provided, however, that ENCUMBRANCES AND ANNOTATIONS
pending approval of said plan, no further registration
or annotation of any subsequent deed or other  They shall be carried over in the new
voluntary instrument involving the unsegregated
certificate or certificates; except when they
portion conveyed shall be effected by the Register of
Deeds, except where such unsegregated portion was have been simultaneously discharged.
purchased from the Government or any of its
instrumentalities.
VI. Mortgages and Leases
If the land has been subdivided into several lots, 256
designated by numbers or letters, the Register of

Deeds may, if desired by the grantor, instead of PD 1529
canceling the latter's certificate and issuing a new one Sec 60. Mortgage or lease of registered land.
to the same for the remaining unconveyed lots, enter Mortgage and leases shall be registered in the
on said certificate and on its owner's duplicate a manner provided in Section 54 of this Decree.
memorandum of such deed of conveyance and of the
issuance of the transfer certificate to the grantee for The owner of registered land may mortgage or lease
the lot or lots thus conveyed, and that the grantor's it by executing the deed in a form sufficient in law.
certificate is canceled as to such lot or lots. Such deed of mortgage or lease and all instruments
which assign, extend, discharge or otherwise deal
with the mortgage or lease shall be registered, and
PD 1529
shall take effect upon the title only from time of
Sec 59. Carry over of encumbrances. If, at the time of
registration.
any transfer, subsisting encumbrances or annotations
appear in the registration book, they shall be carried
No mortgagee's or lessee's duplicate certificate of title
over and stated in the new certificate or certificates;
shall hereafter be issued by the Registers of Deeds,
except so far as they may be simultaneously released
and those issued prior to the effectivity of this Decree
or discharged.
are hereby deemed canceled and the holders thereof
shall immediately surrender the same to the Register
A. IF ENTIRE PROPERTY IS SUBJECT of Deeds concerned.
 Owner executes and registers the deed
which must be sufficient in form. PD 1529
 A new certificate of title is issued and Sec 61. Registration. Upon presentation for
Register of Deeds prepares and delivers to registration of the deed of mortgage or lease together
grantee his owner's duplicate certificate with the owner's duplicate, the Register of Deeds shall
 Register of Deeds notes upon the OCT and enter upon the original of the certificate of title and
the duplicate certificate the date of transfer, also upon the owner's duplicate certificate a
memorandum thereof, the date and time of filing and
the volume and page of the registration the file number assigned to the deed, and shall sign
book where the new certificate is registered the said memorandum.
 The original and the owner's duplicate of the
grantor's certificate shall be stamped He shall also note on the deed the date and time of
"canceled". filing and a reference to the volume and page of the
 The deed of conveyance shall be filed and registration book in which it is registered
indorsed with the number and the place of
registration of the certificate of title of the  Mortgage and leases shall be registered in
land conveyed. the manner provided for in Section 54.
 When a deed of mortgage or lease is
B. IF ONLY A PORTION OF PROPERTY IS presented, ROD will enter upon the OCT
SUBJECT and upon the owner’s duplicate a
 Include a plan which shows all the portions memorandum thereof and shall sign.
already subdivided with verified and
approved technical descriptions.

lOMoARcPSD|3291925
VII. Powers of Attorney; Trusts
PD 1529
Sec 64. Power of attorney. Any person may, by power
of attorney, convey or otherwise deal with registered
land and the same shall be registered with the
Register of Deeds of the province or city where the
land lies. Any instrument revoking such power of
attorney shall be registered in like manner.
PD 1529
Sec 65. Trusts in registered land. If a deed or other
instrument is filed in order to transfer registered land
in trust, or upon any equitable condition or limitation
expressed therein, or to create or declare a trust or
other equitable interests in such land without transfer,
the particulars of the trust, condition, limitation or
other equitable interest shall not be entered on the
certificate; but only a memorandum thereof shall be
entered by the words "in trust", or "upon condition", or 257
other apt words, and by a reference by number to the

instrument authorizing or creating the same.
A similar memorandum shall be made upon the

original instrument creating or declaring the trust or
other equitable interest with a reference by number to

lOMoARcPSD|3291925
 Register of Deeds shall within 36 hours b. In personam (all persons interested

send notice to registered owner by mail shall be notified so that they are given
stating that there has been registration opportunity to be heard)
& requesting him to produce duplicate c. Notice to be given to delinquent tax
so that memorandum be made payer at last known address
 If owner neglects or refuses – Register d. Publication of notice must also be made
of Deeds shall report matter to court. in English, Spanish & local dialect &
 Court after notice shall enter an order to posted in a public & conspicuous place
owner to surrender certificate at time & in place wherein property is situated &
place to be named therein. at main entrance of provincial building
d. Although notice of attachment is not noted in e. Sale cannot affect rights of other lien
duplicate, notation in book of entry of holders unless given right to defend
Register of Deeds produces effect of their rights: due process must be strictly
registration already observed
f. Tax lien superior to attachment
2. EFFECT OF REGISTRATION OF g. No need to register tax lien because it is
ATTACHMENT: automatically registered once the tax
a. Creates real right accrues
b. Has priority over execution sale h. But sale of registered land to foreclose a 258
c. But between 2 attachments – tax lien need to be registered.

d. one that is earlier in registration is
preferred PD 1529
Sec 74. Enforcement of liens on registered land.
Whenever registered land is solved on execution, or
3. DUTY OF REGISTER OF DEEDS
taken or sold for taxes or for any assessment or to
enforce a lien of any character, or for any costs and
 Ministerial but may refuse registration in charges incident to such liens, any execution or copy
following circumstances: of execution, any officer's return, or any deed,
1. Title to land is not in the name of demand, certificate, or affidavit, or other instrument
defendant made in the course of the proceedings to enforce
2. No evidence is submitted to show that such liens and required by law to be recorded, shall
he has present or possible future be filed with the Register of Deeds of the province or
interest in land city where the land lies and registered in the
registration book, and a memorandum made upon the
proper certificate of title in each case as lien or
 Exception: If petitioner is an heir encumbrance.
B. EXECUTION AND TAX DELINQUENCY 3. PROCEDURE OF REGISTRATION OF

SALES TAX SALE
a. Officer’s return shall be submitted to
1. EXECUTION SALE Register of Deeds together with
a. To enforce a lien of any description on duplicate title
registered land, any execution or b. Register in registration book
affidavit to enforce such lien shall be c. Memorandum shall be entered in
filed with Register of Deeds where land certificate as an adverse claim or
lies encumbrance
b. Register in registration book & d. After period of redemption has expired
memorandum upon proper certificate of & no redemption (2 years from
title as adverse claim or as an registration of auction sale) cancellation
encumbrance of title & issuance of new one
c. To determine preferential rights between e. Before cancellation, notice shall be sent
2 liens: priority of registration of to registered owner: to surrender title &
attachment f. show cause why it shall not be
cancelled
2. TAX SALE
a. Sale of land for collection of delinquent NOTE: Actual knowledge is equivalent to
taxes and penalties due the registration.
Government

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C. NOTICE OF LIS PENDENS 1. PURPOSE: Keep subject matter within the

power of the court until the entry of final
PD 1529 judgment. It therefore creates merely a
Sec 76. Notice of lis pendens. No action to recover contingency & not a lien.
possession of real estate, or to quiet title thereto, or to
remove clouds upon the title thereof, or for partition, 2. EFFECT OF REGISTRATION
or other proceedings of any kind in court directly
a. Impossibility of alienating the property in
affecting the title to land or the use or occupation
thereof or the buildings thereon, and no judgment, dispute during the pendency of the suit
and no proceeding to vacate or reverse any judgment, – may be alienated but purchaser is
shall have any effect upon registered land as against subject to final outcome of pending suit
persons other than the parties thereto, unless a b. Register of Deeds duty bound to carry
memorandum or notice stating the institution of such over notice of lis pendens on all new
action or proceeding and the court wherein the same titles to be issued
is pending, as well as the date of the institution
thereof, together with a reference to the number of the 3. CANCELLATION OF LIS PENDENS
certificate of title, and an adequate description of the
a. Before final judgment – court may order
land affected and the registered owner thereof, shall
have been filed and registered. cancellation after showing that notice if
only for purpose of molesting an
Section 77. Cancellation of lis pendens. Before final adverse party or it is not necessary to 259
judgment, a notice of lis pendens may be canceled protect rights of party who caused it to

upon order of the court, after proper showing that the be registered
notice is for the purpose of molesting the adverse b. Register of Deeds may also cancel by
party, or that it is not necessary to protect the rights of verified petition of party who caused
the party who caused it to be registered. It may also such registration
be canceled by the Register of Deeds upon verified
c. Deemed cancelled when certificate of
petition of the party who caused the registration
thereof. clerk of court stating manner of disposal
of proceeding is registered
At any time after final judgment in favor of the
defendant, or other disposition of the action such as 3. OTHER PARTIES WHO NEED TO
to terminate finally all rights of the plaintiff in and to REGISTER
the land and/or buildings involved, in any case in a. Assignee in involuntary proceeding for
which a memorandum or notice of lis pendens has insolvency
been registered as provided in the preceding section, o Duty of the officer serving notice to
the notice of lis pendens shall be deemed canceled
file copy of notice to Register of
upon the registration of a certificate of the clerk of
court in which the action or proceeding was pending Deeds where the property of debtor
stating the manner of disposal thereof. lies
o Assignee elected or appointed by
PD 1529 court shall be entitled to entry of
Sec 77. Cancellation of lis pendens. Before final new certificate of registered land
judgment, a notice of lis pendens may be canceled upon presentment of copy of
upon order of the court, after proper showing that the assignment with bankrupt’s
notice is for the purpose of molesting the adverse certificate of title (duplicate)
party, or that it is not necessary to protect the rights of o New certificate shall not that it is
the party who caused it to be registered. It may also
entered to him as assignee or
be canceled by the Register of Deeds upon verified
petition of the party who caused the registration trustee in insolvency proceedings
thereof. b. Government in eminent domain
o Copy of judgment file in Register of
At any time after final judgment in favor of the Deeds which states description of
defendant, or other disposition of the action such as property, certificate number, interest
to terminate finally all rights of the plaintiff in and to expropriated, nature of public use
the land and/or buildings involved, in any case in o Memorandum shall be made or new
which a memorandum or notice of lis pendens has certificate of title shall be issued
been registered as provided in the preceding section,
the notice of lis pendens shall be deemed canceled
upon the registration of a certificate of the clerk of D. ADVERSE CLAIM
court in which the action or proceeding was pending
stating the manner of disposal thereof. Section 70. Adverse claim. Whoever claims any part
or interest in registered land adverse to the registered
owner, arising subsequent to the date of the original
registration, may, if no other provision is made in this

lOMoARcPSD|3291925
Decree for registering the same, make a statement in e. his residence or the place to which all
writing setting forth fully his alleged right or interest, notices may be served upon him.
and how or under whom acquired, a reference to the
number of the certificate of title of the registered NOTE: Non-compliance with the above
owner, the name of the registered owner, and a
requisites renders the adverse claim non-
description of the land in which the right or interest is
claimed. registrable and ineffective.
The statement shall be signed and sworn to, and shall

state the adverse claimant's residence, and a place at
which all notices may be served upon him. This
statement shall be entitled to registration as an
adverse claim on the certificate of title. The adverse
claim shall be effective for a period of thirty days from
the date of registration. After the lapse of said period,
the annotation of adverse claim may be canceled
upon filing of a verified petition therefor by the party in
interest: Provided, however, that after cancellation, no
second adverse claim based on the same ground
shall be registered by the same claimant.
Before the lapse of thirty days aforesaid, any party in 260
interest may file a petition in the Court of First

Instance where the land is situated for the
cancellation of the adverse claim, and the court shall
grant a speedy hearing upon the question of the
validity of such adverse claim, and shall render
judgment as may be just and equitable. If the adverse
claim is adjudged to be invalid, the registration thereof
shall be ordered canceled.
If, in any case, the court, after notice and hearing,
shall find that the adverse claim thus registered was
frivolous, it may fine the claimant in an amount not
less than one thousand pesos nor more than five
thousand pesos, in its discretion. Before the lapse of
thirty days, the claimant may withdraw his adverse
claim by filing with the Register of Deeds a sworn
petition to that effect.
1. WHEN IS A CLAIM ADVERSE?

 When a person claims any part or interest in
registered land adverse to the registered
owner, after date of the original registration.
2. DURATION OF AN ADVERSE CLAIM

 30 days from the date of registration. After
that the annotation of adverse claim may be
cancelled upon filing of a verified petition by
the party in interest. When cancelled no
second adverse claim based on the same
ground may be registered by the same
claimant. (Asked in ’98)
3. REQUISITES
 The adverse claimant must give a statement
signed and sworn before a notary public, the
ff in writing:
a. his alleged right or interest
b. how and under whom such alleged right
or interest is acquired
c. the description of the land in which the
right or interest is claimed and
d. the number of the certificate of title

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 6: SYSTEM of REGISTRATION of UNREGISTERED LANDS
Chapter 6: System of Registration of I. Key Points

Unregistered Lands
A. The system of registration for unregistered
th
This 6 chapter will discuss the process of registration land is under the torrens system.
of unregistered lands. B. Before: covers voluntary dealings, now
includes involuntary dealings
There are TWO MAJOR LESSON is included in this
C. Effect if prospective; binds 3rd persons after
Chapter.
registration but yields to better rights of 3rd
I. Key Points in the Registration of Unregistered person prior to registration (limited effect to
Lands 3rd parties) reason: no strict investigation
II. Procedure in the Registration of Unregistered involved
Lands D. Subsequent dealings – also valid if recorded
PD 1529
E. Register of deeds keeps day book & a
Sec 113. Recording of instruments relating to unregistered register; index system is also kept
lands. No deed, conveyance, mortgage, lease, or other
voluntary instrument affecting land not registered under the
Torrens system shall be valid, except as between the parties
thereto, unless such instrument shall have been recorded in II. Procedure
the manner herein prescribed in the office of the Register of 261
Deeds for the province or city where the land lies.
A. Presentment of instrument dealing in

(a) The Register of Deeds for each province or city shall unregistered land
keep a Primary Entry Book and a Registration Book. The B. If found in order – registered
Primary Entry Book shall contain, among other particulars,
C. If found defective – registration is refused
the entry number, the names of the parties, the nature of the
document, the date, hour and minute it was presented and writing his reason for refusal
received. The recording of the deed and other instruments
relating to unregistered lands shall be effected by any of
annotation on the space provided therefor in the Registration
Book, after the same shall have been entered in the Primary
Entry Book.
(b) If, on the face of the instrument, it appears that it is

sufficient in law, the Register of Deeds shall forthwith record
the instrument in the manner provided herein. In case the
Register of Deeds refuses its administration to record, said
official shall advise the party in interest in writing of the
ground or grounds for his refusal, and the latter may appeal
the matter to the Commissioner of Land Registration in
accordance with the provisions of Section 117 of this
Decree. It shall be understood that any recording made
under this section shall be without prejudice to a third party
with a better right.
(c) After recording on the Record Book, the Register of

Deeds shall endorse among other things, upon the original
of the recorded instruments, the file number and the date as
well as the hour and minute when the document was
received for recording as shown in the Primary Entry Book,
returning to the registrant or person in interest the duplicate
of the instrument, with appropriate annotation, certifying that
he has recorded the instrument after reserving one copy
thereof to be furnished the provincial or city assessor as
required by existing law.
(d) Tax sale, attachment and levy, notice of lis pendens,

adverse claim and other instruments in the nature of
involuntary dealings with respect to unregistered lands, if
made in the form sufficient in law, shall likewise be
admissible to record under this section.
(e) For the services to be rendered by the Register of Deeds

under this section, he shall collect the same amount of fees
prescribed for similar services for the registration of deeds or
instruments concerning registered lands.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 7: REGISTRATION of PUBLIC LANDS
agricultural land to fishponds does not

Chapter 7: Registration of Public Lands change character of land.
th
 Now: restricted meaning; fishponds
This 7 Chapter will discuss the process of has distinct category; cannot be
registration of public lands. It includes also the alienated but maybe leased from
different modes of alienating public lands. government
There are SIX MAJOR LESSONS in this chapter:  Republic vs. Imperial, (2000): The
classification of public lands is a function
I. Classification of Land of the Public of the executive branch of government.
Domain
II. Nature of Public Lands
III. Procedure
IV. Role of Director of Lands PUBLIC
V. Modes of Alienating Public Lands LANDS
VI. Patents
Inalienable Alienable
I. Classification of Land of the Public
Domain 262

Public
Lands of the
A. UNDER THE CONSTITUTION Public Domain
Agricultural
Land
1. Agricultural- only type of land that is
alienable
2. Forest or timber
3. Mineral lands II. Nature of Title to Public Lands
4. National Park Conveyed
B. UNDER THE PUBLIC LAND ACT
 Indefeasible and Conclusive
1. Alienable/disposable
 In absence of registration, title to public
a. Agricultural land is not perfected and therefore not
b. Residential, commercial, industrial  Indefeasible
c. Educational, charitable  In case of 2 titles obtained on same date,
d. Town sites and for public and quasi- the one procured through the decree of
public uses registration is superior than patent issued
2. Timber lands – inalienable by director of lands
3. Mineral lands – inalienable  2 titles procured by one person – one from
homestead patent, one from judicial
NOTE: decree & sold to 2 different persons, the
 If patent of title is issued for inalienable one who bought it for value and in good
lands, such patent or title is void ab initio faith & one who register first shall have
 Not subject to acquisitive prescription; even preference
if in possession for long time, will not ripen
into ownership.
 EXCEPT: mineral lands and forest lands III. Procedure of Conveying Public Land
acquired before inauguration of to a Private Person
Commonwealth in November 15, 1935;
vested rights which are protected
A. Official issuing instrument of conveyance to
 is exclusive prerogative of executive & issue instrument
not by judiciary B. File instrument with Register of Deeds
 Anyone who applies for confirmation of C. Instrument to be entered in books and owner’s
imperfect title has burden of proof to duplicate to be issued
overcome the presumption that the land D. Instrument – only contract between
sought to be registered forms part of Government and private person and does not
public domain (Regalian doctrine) take effect as conveyance if unregistered, it is
 Before, fishponds are included in the registration which is operative act of conveying
definition of agriculture, conversion of land; evidence of authority for Register of
Deeds to register
E. Fees to be paid by grantee

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 7: REGISTRATION of PUBLIC LANDS
F. After issuance of certificate of title, land is government system, of distribution of public

deemed registered land within the purview of lands may arise & this must be avoided
the Torrens system EXCEPT: Annullable on ground of fraud,
may be reopened even after 1 year because
registration does not shield bad faith
IV. Director of Lands: Quasi-judicial 3. Court in exercise of equity jurisdiction may
direct reconveyance even without ordering
officer cancellation of title
A. Findings of fact conclusive on higher court with
absence of fraud, mistake other than error of
C. AIM OF HOMESTEAD PATENT
judgment; but not with regards to finding of law. 1. Benevolent intention of government to
B. Empowered to alienate and dispose lands. distribute disposable agricultural land to
destitute citizens for their home and cultivation
2. As a matter of public policy, may be
V. Modes of Alienating Public Lands: repurchased even if after 5 years provided not
for profit
3. Right of repurchase not allowed if sold within
A. Homestead settlement family & not for cultivating or living but for
B. Sale speculation purpose
C. Confirmation of Imperfect or incomplete title, 263
supra. D. RESTRICTIONS

1. Judicial legalization 1. Cannot be alienated within 5 years after
2. Administrative legalization approval of application for patent
2. Cannot be liable for satisfaction of debt within
NOTE: 5 years after approval of patent application
 Lease is not included since lease does not 3. Subject to repurchase of heirs within 5 years
transfer ownership after alienation when allowed already
 Free-title grant: free distribution of public 4. No corporation, partnership, association may
lands to encourage people to cultivate: acquire unless solely for commercial,
government furnishes the applicant with tolls industrial, educational, religious or charitable
plus cash allowance to enable him to cultivate purpose or right of way subject to consent of
grantee & approval of Secretary of Natural
resources
VI. Patents
EXCEPTIONS:
A. WHEN IS GOVERNMENT GRANT 1. Action for partition because it is not a
conveyance
DEEMED ACQUIRED BY OPERATION OF
2. Alienations or encumbrances made in favor of
LAW
the government
1. Deed of conveyance issued by government
patent/grant
NOTE:
2. Registered with Register of Deeds –
 Erring homesteader not barred by pari delicto
mandatory: operative act to convey & transfer
 Pari delicto rule does not apply in void contract
title
 Violation of prohibitions results in void contract
3. Actual physical possession, open & continuous
 Action to recover does not prescribe
 If the homesteader dies, heirs succeed him in
NOTE:
this application
 Land ceased to be part of public domain &
 Legal restriction in disposition by non-
now ownership vests to the grantee
Christians (Cultural Minorities)
 Any further grant by Government on same
 Conveyance is valid if able to read and can
land is null & void
understand language where deed is written
 Upon registration, title is indefeasible
 Otherwise, not valid unless approved by
Commission on National Integration
B. TITLE ISSUED PURSUANT TO  Safeguard is to protect them against
REGISTRATION OF PATENT fraud/deceit
1. Indefeasible – when registered, deemed
incorporated with Torrens system; 1 year after
issuance of patent
2. May not be opened one year after entry by
Land Registration Authority; otherwise,
confusion, uncertainty & confusion on

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 8: REMEDIES of the AGGRIEVED PARTY
Chapter 8: Remedies of the Aggrieved

Party
The remedies listed here are:
I. Motion For New Trial

II. Appeal
III. Relief from Judgment
IV. Petition for Review
V. Action for Reconveyance
VI. Damages
VII. Action for Compensation from the Assurance
Fund
VIII. Annulment of Judgment
IX. Reversion
X. Criminal Action
Motion for New Trial  15 days from notice of judgment

 Grounds: 264
 Fraud, accident, mistake, excusable negligence

 Newly discovered evidence
 Awarded excessive damages, or insufficiency of evidence, or that the decision is
against law
Appeal  15 days from notice
 appealable to the CA or to the SC in the same manner as in ordinary actions
Relief from Judgment  60 days after petitioner learns of judgment, but not more than 6 months after
judgment was entered
 Grounds: Fraud, accident, mistake, excusable negligence
Petition for Review  Requisites:
 Walstrom vs. Mapa,, (1990):
 petitioner must have an estate or interest in the land
 he must show actual fraud
 petition must be filed within one year form the issuance of the decree by LRA
 property has not yet passed to an innocent purchaser for value.
 Grounds:
 extrinsic fraud,
 void decision for want of due process
 lack of jurisdiction
 Calalang vs. Register of Deeds (1992): Under the Torrens system of registration,
the Torrens still becomes indefeasible and incontrovertible one year form the
issuance of the final decree and is generally conclusive evidence of the ownership
 Iglesia ni Cristo vs. CFI, (1983):
 This applies as well to title acquired through homestead or free patents
Action for  before issuance of decree, or within/after 1 year from entry
Reconveyance  if based on implied trust, 10 years;
 if based on expressed trust and void contract, imprescriptible
 if based on fraud, 4 years from the discovery
 it is not available if the property has already been transferred to an innocent
purchaser for value.
 Esconde vs. Barlongay, (1987): It does not reopen proceedings but a mere
transfer of the land from registered owner to the rightful owner
 Huang vs. CA,1994:
 It is available in case of fraud thereby creating a constructive trust between parties
Damages  Ching vs. CA, 1990:
 It can be availed of when reconveyance is no longer possible as when the land
has been transferred to an innocent purchaser for value

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 8: REMEDIES of the AGGRIEVED PARTY
Action for Compensation  Requisites:

from the Assurance  A person sustains loss or damage or is deprived by any estate or interest in land
1
Fund  On account of bringing of land under the Torrens system
 Through (FEMOM) fraud, error, mistake, omission, or misdescription in the
certificate of entry in the registration book
 Without negligence on his part
 And is barred from bringing an action for recovery of the land.
 The action has not prescribed. It must be instituted within 6 years from the time
the right to bring such action first occurred--> date of issue of the certificate of title
 Against whom filed: against the Register of Deeds and the National Treasurer if
FEMOM is caused by court personnel, Register of Deeds, his deputy or other
employees of the Registry
 If other those above mentioned: the Register of Deeds, the National Treasurer
and other person or persons, as co-defendants.
Annulment of Judgment  Grounds: extrinsic fraud and lack of jurisdiction.
 Galicia vs. Marquez (2007): Ordinary remedies of appeal, motion for new trial etc
should no longer be available. If based on extrinsic fraud, file 4 within years from
discovery.
 If based on lack of jurisdiction, before it is barred by laches or estoppel
Reversion  Instituted by the government, thru Solgen in all cases where lands of public 265
domain are held in violation of the Constitution or were fraudulently conveyed.

 Indefeasibility of title, prescription, laches, and estoppel do not bar reversion suits.
Criminal Action Perjury, Forgery, Others involving fraud
1 Upon registration, there shall be paid to the Register of Deeds ¼ of 1% of the assessed value of the real estate on the
basis of the last assessment for taxation purposes, as contribution to the Assurance Fund.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter 9: RECONSTITUTION of TITLES
RECONSTITUTED CERTIFICATE OF
Chapter 9: Reconstitution 0f Titles TITLE HAS BEEN ISSUED?
(Asked in ’96)  The ROD or party concerned should notify the
proper RTC. After which, shall order the
I. Grounds cancellation of the reconstituted certificate of
II. Petitions For Reconstitution title and render, with respect to the
III. Duties of the Land Registration
memoranda of new liens and encumbrances, if
Authority
any, made in the reconstituted certificate of
IV. Effects of Fraud in the
Reconstitution
title, after its reconstitution, such judgment as
justice and equity may require:
 Provided, however, That if the reconstituted
I. Grounds certificate of title has been cancelled by virtue
of any deed or instrument, whether voluntary
A. LOSS or involuntary, or by an order of the court, and
B. DESTRUCTION a new certificate of title has been issued, the
procedure prescribed above, with respect to
II. Petitions for Reconstitution the memorandum of new liens and
encumbrances made on the reconstituted
A. WHO MAY FILE? certificate of title, after its reconstitution, shall
1. Registered owner be followed with respect to the new certificate 266
2. His assigns of title, and to such new liens and

3. Other persons, both natural and juridical, encumbrances, if any, as may have been on
having an interest in the property the latter, after the issuance thereof.
B. WHAT DOES IT CONTAIN?
 A statement, among other things:
1. That no deed or other instrument affecting the III. Duties of the Land Registration
property had been presented for registration. Authority
If there is, include its particulars.
2. That the owner's duplicate certificate or co- A. Keep a true, complete and faithful inventory of
owner's duplicate is in due form; all books, titles, cash and property of the
3. That the certificate of title is not the subject of Register of Deeds.
litigation or investigation, administrative or B. Produce three image copies in whatever
judicial, regarding its genuineness or due means the original can be produced.
execution or issuance; C. Surrender the owner’s duplicate to ROD and
4. That the certificate of title was in full force and prepare and deliver a new owner’s duplicate to
effect at the time it was lost or destroyed; the registered owner.
5. That the certificate of title is covered by a tax D. Issue rules and regulations
declaration regularly issued by the Assessor's E. Review, revise decisions of the reconstituting
Office; and officer of the Register of Deeds.
6. That real estate taxes have been fully paid up
to at least two (2) years prior to the filing of the
petition for reconstitution. IV. Effects of Fraud, Deceit and
NOTE: Machination in the Reconstitution of
 The procedure relative to administrative Titles
reconstitution of lost or destroyed certificate
prescribed in said Act may be availed of only in A. A reconstituted title obtained by means of
case of substantial loss or destruction of land fraud, deceit or other machination is void ab
titles due to fire, flood or other force majeure initio as against the party obtaining the same
as determined by the Administrator of the Land and all persons having knowledge thereof.
Registration Authority: B. Any person who by means of fraud, deceit or
 Provided, that the number of certificates of other machination obtains or attempts to obtain
titles lost/damaged should be at least 10 % of a reconstituted title shall be subject to criminal
the total number in the possession of the prosecution
Office of the Register of Deeds, and that the C. Any public officer or employee who knowingly
number of certificates of titles lost or damaged approves or assists in securing a decision
be less than 500. allowing reconstitution in favor of any person
not entitled thereto shall be subject to criminal
C. WHAT IF IT IS SUBSEQUENTLY FOUND prosecution.
BUT IT IS NOT IN THE NAME OF THE
SAME PERSON IN WHOSE FAVOR THE
- end of Land titles and Deeds -

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SALES
Table of Contents
Chapter I. The Contract of Sale ..................269

I. Definition (Art 1458, CC) ...................269
II. Elements ...........................................269
III. Stages ...............................................274
IV. Kinds of Sale .....................................275
V. Form ..................................................276
VI. Sale Distinguished From Other
Contracts....................................................276

Buyer .............................................................278
I. Obligations of the Seller ....................278
II. Obligations of the Buyer....................284
Chapter III. Double Sales .............................286

I. General Rule .....................................286
II. Requisites .........................................286
268
III. Rules Governing Sale of Movables,
SALES
Immovables and Unregistered Lands ........286
Chapter IV. Risk of Loss..............................288

I. General Rule .....................................288
II. Exceptions.........................................288
Chapter V. Documents of Title....................289

I. In General .........................................289
II. Negotiable Documents of Title..........289
III. Non-Negotiable Documents of Title ..289
Chapter VI. Remedies of the Seller and Buyer

.......................................................................291
I. General Remedies (Art. 1191, CC) ...291
II. Remedies of the Seller......................291
III. Remedies of the Buyer......................295
Chapter VII. Extinguishment of Sale ..........298

I. In General .........................................298
II. Conventional Redemption.................298
III. Equitable Mortgage ...........................299
IV. Legal Redemption .............................300
Chapter VIII. Philippine Bulk Sales Law (Act

3952) ..............................................................303
I. Purpose .............................................303
II. Coverage...........................................303
III. Duty of Seller.....................................303
IV. Effect of non-compliance...................304

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. The CONTRACT of SALE
Chapter I. The Contract of Sale

SALES TEAM
SALES
Prof. Roberto N. Dio I. DEFINITION
Faculty Editor
II. ELEMENTS
Jaim Mari M. Crisostomo A. CONSENT
Lead Writer B. SUBJECT MATTER
Jessa Mary Ann C. Cedeño C. PRICE
Eva Marie Guttierez III. STAGES
Kristoffer Gabriel L. Madrid A. PREPARATION/NEGOTIATION
Ros Jean Nonato B. PERFECTION
Writers C. CONSUMMATION
IV. KINDS
CIVIL LAW A. ABSOLUTE
Kristine Bongcaron B. CONDITIONAL
Patricia Tobias V. FORM
Subject Editors VI. SALE DISTINGUISHED FROM OTHER
CONTRACTS
ACADEMICS COMMITTEE A. DONATION
Kristine Bongcaron B. BARTER
Michelle Dy C. CONTRACT FOR A PIECE OF WORK
Patrich Leccio D. LEASE OF THINGS
Editors-in-Chief E. AGENCY TO BUY AND SELL
F. DACION EN PAGO
PRINTING & DISTRIBUTION G. CONTRACT TO SELL 269
Kae Guerrero H. BILATERAL PROMISE TO BUY AND SELL
SALES
DESIGN & LAYOUT
Pat Hernandez I. Definition (Art 1458, CC)
Viktor Fontanilla
Rusell Aragones
Romualdo Menzon Jr. Contract where one of the parties (Seller)
Rania Joya obligates himself to:
LECTURES COMMITTEE  Transfer ownership of and

Michelle Arias  to deliver a determinate thing;
Camille Maranan
and the other (Buyer) to pay a price certain in
Angela Sandalo
Heads money or its equivalent.
Arianne Cerezo Marcrese Banaag II. Elements
Volunteers
MOCK BAR COMMITTEE The case of (Coronel v CA, 1996) enumerates

the 3 elements of a valid contract of sale
Lilibeth Perez
namely:
BAR CANDIDATES WELFARE  Consent
 Subject matter
Dahlia Salamat
 Price
LOGISTICS _______
Charisse Mendoza A. CONSENT
SECRETARIAT COMMITTEE Meeting of minds upon the thing which is the
object of the contract and the price. (Art 1475,
Jill Hernandez CC)
Head
Loraine Mendoza Faye Celso Requisites—
Mary Mendoza Joie Bajo 1. Capacity
Members
2. Offer and acceptance
3. No vitiation

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CAPACITY Rationale: Guardianship is a trust of the

highest order, and the trustee can not be
All persons who have capacity to enter into allowed to have any inducement o
obligations may enter into a contract of sale (Art neglect his ward’s interest. (Phil Trust
1489, CC) Co v Roldan, 1956)
Kinds of Incapacity— c. Executors and Administrators—

1. Absolute Incapacity (MInD-CI) (Art. 1327, Property of estate under their
CC) administration
a. Minors
b. Insane or Demented d. Public Officers and Employees—
c. Deaf-mutes who do not know how to Property of State/any of its
write subdivisions/GOCC, the administration
d. Civil Interdiction of which was entrusted to them.
e. Judicially-declared Incompetents(Art.
39) e. Lawyers—
 Prodigals Property or rights in litigation in which
 Imbeciles they take part because of their
 Absence & presumption of death profession
 Persons not of unsound mind but by
reason of age, disease, weak mind, Rationale: Lawyer may have undue
and other similar causes, cannot influence over client. Greed may get the 270
take care of themselves and better of the sentiments of loyalty and
SALES
manage their property without disinterestedness. (Valencia v
outside aid (Easy prey for deceit Cabanting, 1991)
and exploitation)
Prohibition is definite and permanent,
2. Relative Incapacity cannot be cured by ratification. (Rubias
a. Husband and Wife (Art 1490, CC)— v Batiller, 1973)
(Asked in 75, 76, 00, 02, 06)
Exceptions: An assignment to a lawyer
General Rule: Cannot sell property to by his client of an interest in the property
each other does not violate Art 1491, where
Exceptions:  A judgment has been rendered and
1. Separation of property in marriage has become final; and
settlement, OR  In case of contingency fee
2. Judicial separation of property. arrangements. The interest of the
lawyer maybe annotated as an
b. Alienage (Art. 39, CC)— adverse claim on the property
Aliens disqualified to purchase or awarded to his client (Director of
acquire property. Lands v Ababa, 1979)
Exception: if acquisition is through f. Justices, Judges, prosecuting attorneys,

hereditary succession clerks—
Property or rights in litigation or levied
c. Trusteeship (Art. 39) upon on execution
3. Specific Incapacity (Art. 1491, CC) (AGE- Rationale: to prevent fraud and to
PLJ) surround their profession with prestige
a. Agents—
Property whose administration or sale Prohibition applies only on sales or
was entrusted to them assignment during the pendency of
litigation involving the property.
Exception: principal gives consent. (Macariola v Asuncion, 1963)
b. Guardian— Effects of Incapacity—

Cannot purchase property of person 1. Absolute Incapacity
under his guardianship  If both parties are incapacitated:
UNENFORCABLE (Art. 1403 (3))

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If only 1 party is incapacitated: the provisions of law governing the form of

VOIDABLE contracts. (Art. 1475, CC)
 -If necessaries are sold and delivered to  A private instrument signed by the
an incapacitated person: must pay a defendant reciting that he bought from the
reasonable price therefore. (Art 1489, plaintiff a property at a specific address for a
CC) specific price to be paid as soon as a bill of
 “Necessaries” – those which are sale is signed is not a mere draft but a
indispensable for sustenance, dwelling, perfected agreement and hence, obligatory,
clothing, medical attendance, education even if there was no statement as to area or
and transportation. (Art 194, Family price per meter. (Goyena v. Tambunting,
Code) 1902)
2. Relative Incapacity Form and Offer—

 Sale between spouses is VOID.  Offer must be certain as to the object and
 Rationale: (as provided in the case of price (Art. 1319, CC)
Medina v CIR, 1961)  Business advertisements of things for sale
rd
 To protect 3 persons who may are not offers but mere invitations to make
have contracted with the spouse an offer
 To avoid undue advantage of the  Exception: If otherwise provided (Art.
dominant spouse over the weaker 1325, CC)
spouse.  Advertisements for bidders are simply
 To avoid indirect prohibition against invitations to make proposals (Asked in 80) 271
donations between spouses.  Advertiser not bound to accept the
SALES
 Such prohibition shall likewise apply to highest or lowest bid
common law spouses. (Calimlim-  Exception: Unless the contrary appears
Canulas v Fortun, 1984) BUT if (Art. 1326, CC)
already sold to a third person who relied
on the title of his immediate seller, Form of Acceptance—
reconveyance to the seller spouse is no  unconditional
longer available (Cruz v CA, 1997)  Qualified acceptance = counter-offer (Art.
1319, CC)
3. Specific Incapacity  May be express or implied (Art. 1320, CC)
 Contracts expressly prohibited by law  Acceptance must be in accordance with the
are void and cannot be ratified. Neither terms and conditions of the offer. There is
can the right to set-up the defense of no meeting of the minds if the offer lapsed
illegality be waived. (Art. 1409 (7), CC) even though the offeree later on was willing
 Sales entered into by guardians, to accept the terms and conditions of the
administrators, and agents (specific offer. (Beaumont vs. Prieto, 1916)
incapacities) in violation of Art. 1491
may be ratified by means of and in the
form of a new contract when the cause MUST NOT BE VITIATED
of nullity has ceased to exist. Ratification  A contract where consent is given through
is valid only from date of execution of mistake, violence, intimidation, undue
the new contract and does not retroact. influence, or fraud is voidable. (Art. 1330,
 Those entered into by public 1390 (2), CC)
officer/employees, justices and judges,  There is fraud where through insidious
and lawyers also in violation of Art. 1491 words or machinations of one of contracting
are inexistent and void from the parties, the other is induced to enter into a
beginning. (Rubias v Batiller, 1973). contract which, without them, he would not
have agreed to. (Art. 1338, CC)
OFFER AND ACCEPTANCE
_______
In General—
 The contract of sale is perfected at the B. SUBJECT MATTER
moment there is meeting of the minds upon
the thing which is the object of the contract Requisites—
and upon the price. 1. Licit
 From that moment, the parties may 2. Existing, future or contingent
reciprocally demand performance, subject to 3. Determinate or determinable

lOMoARcPSD|3291925
MUST BE LICIT (ART. 1459) come into existence: the price even if the
contract is considered as thing does not actually
The thing is licit when— not made and there is no came into existence
1. Within the commerce of man (Art 1347, CC) obligation to pay the
price
Example of properties that are not within the
In case of doubt the presumption is in favor of
commerce of man: emptio rei speratae since it is more in keeping with
a. Those belonging to the State or its the commutative character of the contract.
political subdivisions intended for public
use or public service. (Art 420, CC). DETERMINATE OR DETERMINABLE
b. Church  A thing is determinate when it is particularly
c. Narcotics or dangerous drugs except designated or physically segregated from all
upon prescription (RA 6425, the others of the same class. (Art 1460, CC)
dangerous drugs act of 1972)  A thing is determinable when it is capable
2. Rights are also licit when not intransmissible of being made determinate at the time
(Art 1347, CC) the contract was entered into without the
necessity of a new or further agreement
Sale of future inheritance is void. (Art. 1347, between the parties. (Art 1460, CC)
CC)—  Failure to state the exact location of the land
1. The rights to succession are transmitted does not make the subject matter
from the moment of the death of the indeterminate, so long as it can be located.
decedent (Art. 777, CC). Thus, one cannot (Camacho v C,A 2007)
sell or promise to sell what he expects to  The fact that the exact area of subject land 272
inherit from a living person. (Rivero v. in the contract of sale is subject to the result
SALES
Serrano, 1950) of a survey does not render the subject
2. -Heir may sell his hereditary rights (which matter indeterminate. (Heirs of Juan San
have accrued). Andres v. Rodriguez (2000))
When the subject matter is illicit, the contract of Particular Kinds—
sale is void (Art. 1409 (7)) 1. Future Goods
Sale of future goods or those goods which
EXISTING, FUTURE, CONTINGENT are to be manufactured, raised, or acquired
by seller after the perfection of the sale is
The goods which form the subject of a valid (Art 1462, CC). “Future goods” are
contract of sale may be either— those capable of future existence.
1. existing goods owned or possessed by the
seller; 2. Sale of Undivided Interest or Share
2. goods to be manufactured, raised, acquired a. Sole owner of a thing may sell an
by the seller, also called “future goods”; undivided interest therein. (Art
3. whose acquisition of the seller depends 1463,CC) Ex., a fraction (½ or half) or
upon a contingency which may or may not percentage (50%), or “my share in the
happen. (Art 1462, CC) property.”
4. Things having potential existence may be b. The sale of an undivided share in a
the object of a contract of sale. (Art 1461, specific mass of fungible goods makes
CC) the buyer a co-owner of the entire mass
in proportion to the amount he bought.
Sale of MERE hope or Sale of VAIN hope or (Art 1464,CC)
expectancy expectancy
c. Co-owner cannot sell more than his
Valid BUT subject to Void
condition that the thing
share (Yturralde v CA, 1972) (Asked
will come into existence Example: Sale of a in 01, 02)
falsified raffle ticket
Example: “Next catch” of which will never win. 3. Sale of Things in Litigation
a fisherman. a. Sale of things under litigation entered
into by defendant, without the approval
Emptio Rei Speratei Emptio Spei of the litigants or the court is
Valid Void rescissible. (Art 1381 (4))
Parties make the Parties intend the b. NO RESCISSION where the thing is
contract depend upon contract to exist at all rd
legally in the possession of 3 persons
the existence of a thing, events who did not act in bad faith (Art 1385
 If the thing does not  Buyer will have to pay
(2))

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4. Things Subject to Resolutory Condition 2. But if thing or part thereof has been
Sale of things subject to a resolutory delivered and appropriated by the buyer, he
condition, i.e. things acquired under legal or must pay a reasonable price therefore.
conventional right of redemption, or subject a. What is reasonable price? A question
to reserva troncal, may be the object of a of fact dependent on circumstances.
contract of sale. (Asked in 99) (Art 1465, (Art 1474, CC)
CC) b. In the case of Philippine Free Press v
CA (2005), the court held that the price
5. Quantity of Subject Matter not determinate was reasonable based on factual
The fact that the quantity is not determinate determination predicated on offered
shall not be an obstacle to the existence of evidence (Company’s Balance
the contract provided it is possible to Sheet showed the book value or fair
determine the same, without the need of market value of its shares)
new contract. (Art. 1349, CC)
_______ IN MONEY OR ITS EQUIVALENT
 Example of “equivalent”: Letters of credit

C. PRICE  If price is partly in money and partly in
another thing: Determine manifest intention
Requisites (Ce-MoRe)— of the parties to see whether it was barter or
1. Certain or ascertainable at the time of sale. (Art 1468,CC) 273
perfection  If intention does not clearly appear, it shall
SALES
2. In Money or its equivalent be considered a barter if the value of the
3. Real thing exceed the amount of money or its
equivalent.(Art 1468,CC)
CERTAIN OR ASCERTAINABLE AT THE TIME
OF PERFECTION REAL
Price considered certain in the following Meaning of Real—

cases— When buyer has an intention to pay and the
1. Fixed by agreement of the parties seller has an expectation to receive the price
a. Fixing of price cannot be left to 1. If simulated: Sale is VOID; BUT act may be
discretion of one of the parties shown to have been a donation or some
b. BUT if such is accepted by the other, other act or contract. (Art 1471, CC)
sale is perfected. (Art 1473, CC) 2. In Labagala vs. Santiago (2001), Petitioner
admittedly did not pay any centavo for the
2. Determination is left to the judgment of a property. Hence, the sale is void.
specified person
a. If unable or unwilling: Sale is If Price is false (real consideration is not the
inefficacious UNLESS parties same as that stated in the contract)—
subsequently agree about the price. 1. Sale is void
b. If in bad faith/by mistake: Courts may fix 2. UNLESS proved to be founded on another
price true and lawful price (Art 1353, CC)
rd
c. If 3 person is prevented from fixing _______
price by fault of seller or buyer: Innocent
party may avail of remedies. Gross Inadequacy of Price—
1. General Rule: Does not affect a contract of
3. It be so in reference to another thing, or sale. (Art 1470,CC)
when the price fixed is that which the thing  The stipulation in a contract of sale
have on a definite day, or in a particular which states that the consideration is
exchange or market, OR when the amount “P1 and other valuable considerations”
fixed is above or below the price on such does not make the contract void. Gross
day, exchange or market. (Art 1472, CC) inadequacy of price does not affect the
contract of sale except that it may
If price cannot be determined (Asked in 76)— indicate a defect in consent. (Bagnas v.
1. Sale is inefficacious (Art. 1474, CC) C.A., 1989)

lOMoARcPSD|3291925
2. Exceptions: agreed period, at a fixed price. (De

a. It may indicate a defect in consent such la Cavada vs. Diaz, 1918)
as fraud, mistake, or undue influence  An option is not of itself a purchase,
b. It may indicate that the contract was in but merely secures the privilege to
reality a donation or some other act or buy.
contract  A consideration for an optional
c. Inadequacy would make the contract of contract is just as important as the
sale rescissible where a contract was consideration for any other kind of
entered into by the guardian of a ward or contract. If there was no
a representative of an absentee, without consideration for the option, then it
the court’s approval, and the owner cannot be enforced any more that
suffers lesion by more than ¼ of the any other contract where no
value of the thing sold. (Art 1381 (1) (2), consideration exists. (Baviera)
CC)
b. Difference from Sale:
Manner of Payment—
Disagreement on the manner of payment is SALE OPTION CONTRACT
tantamount to a failure to agree on the price. Bilateral Unilateral: gives a right to buy
(Toyota Shaw vs. CA, 1995) or to sell, but imposes no
obligation on the part of the
option-holder, aside from the
consideration for the offer
III. Stages Sale of property Sale of right to purchase
274
SALES
A. Negotiation/Preparation c. Right of first refusal (Asked in 93, 96,
98, 02, 08)
From the time the parties indicate interest in the  As to enforceability
contract up to the time said contract is perfected  Equatorial Realty Development
vs. Mayfair, (1996): If the right to
1. Offer the first offer is embodied in the
a. General Rule: Offer may be withdrawn contract, it should be executed
at any time without even communicating according to the terms
such withdrawal to the interested buyer. stipulated. The right should be
b. Exception: When the offerer has enforced according to the law
allowed the offeree a certain period to on contracts and not on the
accept, the offer may be withdrawn at panoramic and indefinite rule on
any time before acceptance by human relations. This juridical
communicating such withdrawal. (Art relation is not amorphous nor is
1324, CC) it merely preparatory.
c. Exception to the exception: Cannot be  When the grantee fails to exercise
withdrawn within the period if offer is the right
founded upon a consideration. (Art 1324  Paranaque Kings vs. CA,
and 1479, CC) (1997): Only after the grantee
st
fails to exercise its right of 1
2. Option Contract (Asked in 75, 77, 80, 93, priority under the same terms
02) and conditions within the period
a. Definition agreed upon, could the grantor
 An accepted unilateral promise to validly offer to sell the property
rd
buy or sell supported by a to a 3 person under the same
consideration distinct from the price terms as offered to the grantee.
(Art 1479, CC)  As to the effects of the violation
 An optional contract is a privilege of the right
existing in one person, for which he  Rosencor Devt. Corp. Vs.
had paid a consideration, which Inquing (2001): A sale made in
gives him the right to buy, for violation of a right of first refusal
example, certain merchandise or is valid but rescissible, and
certain specified property, if he may be the subject of an action
chooses, at any time within the for specific performance.
 However, before the sale to the
rd
3 person may be rescinded, he

lOMoARcPSD|3291925
must have been actually or Option Money vs. Earnest Money (Limson vs.
constructively aware of the Ca, 2001)—
st
right of 1 refusal at the time
he bought it. OPTION MONEY EARNEST MONEY
 The sanction for the Separate and distinct Part of purchase price
enforcement of the right of first consideration from the (Art 1482, CC)
refusal against third persons is purchase price
based on Art. 19 of NCC, as no Given when sale is not Given only when there
yet perfected is already a sale
real right was created on the
When given, the would- When given, the buyer
property. be-buyer is not required is bound to pay the
to buy, but may even balance
 Difference from sale: forfeit it depending on
the terms of the option
ST
SALE RIGHT OF 1 REFUSAL Grantee of option is still Buyer manifests his
Bilateral Unilateral undecided whether or earnest desire to buy
Price and other Price and other terms are yet to not to buy or sell the the property
terms of payment be agreed upon property (Baviera)
are certain _______
the thing to be sold must be determinate
C. Consummation
 Distinction from Option Contract
ST
Begins when the parties perform their respective 275
OPTION RIGHT OF 1 REFUSAL undertakings under the sale. It culminates in the
CONTRACT
SALES
extinguishment of the sale. (See obligations of
Separate No need for a separate seller and buyer, Chapter II)
consideration is consideration
necessary
Grantee has the No right to buy or sell, only a
right to buy or sell
st
right to match the 1 offer to IV. Kinds of Sale
buy should the grantor decide (Asked in 97, 00)
to sell
A. Absolute Sale
_______
Sale is not subject to any condition
B. Perfection
whatsoever; title passes to the buyer upon
(Asked in ’88 and ’91)
delivery of thing sold
When Perfected—
B. Conditional Sale
1. Contract of sale is a consensual contract,
Contract is subject to certain conditions
hence perfected at the moment of the
(usually the payment of the purchase price);
meeting of the minds of the parties as to the
title will only pass once the conditions have
object of the contract and the price. (Art
been fulfilled
1475,CC)
2. It is the proof of all the essential elements of
In some cases, the Court makes finer
the contract of sale, and not the mere giving
distinctions between a conditional sale and a
of earnest money, which establishes the
contract to sell:
existence of a perfected sale. (Platinum
a. Contract to sell- The fulfilment of the
Plans Phils. vs. Cucueco, 2006)
suspensive condition, which is the full
payment of the price, will not
Effect of Perfection—
automatically transfer ownership to the
From the moment of the perfection of the
buyer although the property may have
contract of sale, the parties may reciprocally
been previously delivered to him.
demand performance, subject to the provisions
b. Conditional Sale: The fulfilment of the
of the Statute of Frauds. (Art 1475,CC)
suspensive condition renders the sale
absolute and affects the seller’s title
Earnest Money—
thereto such that if there was previous
Definition- paid in advance of the purchase
delivery of the property, the seller’s
price agreed upon by the parties in a contract of
ownership or title the property is
sale, given by the buyer to the seller, to bind the
automatically transferred to the buyer.
latter to the bargain. (Asked in 93, 02)
(Ursal vs. CA, 2005)

lOMoARcPSD|3291925
V. Form VI. Sale Distinguished From Other

Contracts
General rule: No form required as to validity
since sale is perfected by consent of the parties. A. DONATION
The sale may be (Art.1483,CC): SALE DONATION

1. Written Onerous Gratuitous
2. Oral Perfected by mere Must comply with the
3. Partly written and partly oral consent formalities required by
4. Inferred from the conduct of the parties law. (Art 745, CC)
Exceptions: When the price of the contract of sale is

1. Statute of Frauds (Art,1403 (2),CC) simulated, the sale may be void but the act may
a. Contract or some memorandum thereof be shown to have been in reality a donation or
must be in writing and subscribed by some other contract. (Art.1471.CC)
the party or his agent, otherwise
contract is unenforceable. Unless B. BARTER
ratified by failure to object to oral
evidence or acceptance of benefits SALE BARTER
under the contract Consideration is price Consideration is
in money or its another thing
b. What are under the Statute of Frauds:
equivalent 276
 Sale of goods, chattels, or things in
SALES
action at a price not less than P500
Barter is a contract where one of the parties
 Sale not to be performed within 1
binds himself to give one thing in consideration
year
of the other’s promise to give another thing
 Sale of real property or an interest
(Art.1638, CC)
therein (Art 1358, CC)
c. Applies only to executory contracts, not
If consideration consists partly in money and
to contracts either totally or partially
partly in another thing, the intention of the
performed. (Iñigo v. Estate of Maloto,
parties determines whether the contract is one of
1967)
sale or barter:
 If manifest intention is not clear: Barter
2. Sale of realty by an agent
when the value of thing is more than the
Agent’s authority must be in writing,
amount of money or its equivalent,
otherwise the sale is void (Art.1874, CC)
otherwise, sale. (Art.1468)
3. Sale of large cattle
C. CONTRACT FOR A PIECE OF WORK
To be valid, transfer of large cattle must be
registered with the municipal treasurer
SALE CONTRACT FOR A
(Sec.529, Revised Administrative Code) PIECE OF WORK
Goods are manufactured Goods are manufactured
Electronic Commerce Act (RA 8792) or procured in the for customer upon his
1. Electronic documents have the legal effect, ordinary course of special order
validity or enforceability of any other business
document or legal writing For the general market, Specifically for customer
2. As long as electronic document maintains its whether on hand or not
integrity and reliability and is capable of
being displayed to the person to whom it is The fact that the object were made by the seller
to be presented, containing the electronic only when customers placed their orders, does
signature of the person sending it. (Sec 7, 8 not alter the nature of the contract of sale, for it
of RA 8792) only accepted such orders as called for the
employment of such materials as it ordinarily
manufactured or was in a position habitually to
manufacture such. (Celestino Co & Co vs.
Collector, 1956)
When each product or system executed is

always UNIQUE and could not mass-produce
the product because of its very nature, such is a

lOMoARcPSD|3291925
contract for a piece of work. (Commissioner vs. SALE BILATERAL PROMISE TO BUY
Engineering Equipment and Supply Co., AND SELL
1975) Consideration Consideration is the promise
Buyer: thing made by the other (Baviera)
D. LEASE OF THINGS Seller: price
Title passes to No transfer of title
the buyer
SALE DACION EN PAGO
No pre-existing debt Pre-existing debt
Creates an obligation Extinguishes the
obligation (mode of
payment)
Price is more freely Price is value of the thing
agreed upon, fixed by the given
parties
There is a novation of the contract of loan into a

contract of sale when the creditor agrees to
accept a thing in payment of the debt. Hence, if
the thing given in payment turns out to belong to
another, the creditor’s remedy should be
governed by the law on sales, not loan.
(Baviera)
277
E. CONTRACT TO SELL
SALES
(Asked in 97, 01, 03)
Contract of Sale Contract to Sell

Ownership is transferred Ownership is only
upon delivery transferred upon full
payment of price
Non-payment is a Full payment is a positive
resolutory condition suspensive condition,
hence non payment
would not give rise to the
obligation to transfer
ownership
Conditional Contract of Contract to sell
Sale
Sale is already perfected No perfected sale yet
A subsequent buyer is A subsequent buyer is
presumed to be a buyer presumed to be a buyer
in bad faith in good faith
NOTE: Contract to Sell is an executory contract,

while a Contract of Sale is a consummated
contract.
F. BILATERAL PROMISE TO BUY AND

SELL
(Asked in 80, 91)
A promise to buy and sell a determinate thing for

a price certain is reciprocally demandable. (Art
479, CC)
Like a sale, the thing must be determinate and

the price certain.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. OBLIGATIONS of the SELLER and BUYER
 Seller’s residence
Buyer b. In case of specific goods, which the
parties knew to be at some other place
I. OBLIGATIONS OF THE SELLER when the contract was perfected, that
A. TO TRANSFER OWNERSHIP place is the place of delivery
B. TO WARRANT AGAINST EVICTION AND
HIDDEN DEFECTS
C. TO PRESERVE THE THING c. If goods are at the time of sale
D. TO PAY FOR THE EXPENSES FOR THE possessed by a third person, then there
EXECUTION AND REGISTRATION OF is no delivery until he acknowledges to
THE DEED OF SALE the buyer that he holds the goods for
II. OBLIGATIONS OF THE BUYER buyer.
A. TO ACCEPT DELIVERY
B. TO PAY THE PRICE OF THE THING SOLD 4. When to Deliver
Absent a stipulation as to time, delivery must
be made within a reasonable time; demand
I. Obligations of the Seller or tender of delivery shall be made at a
reasonable hour.
Obligations of the Seller (TWPP)—
1. Transfer ownership Ways of Effecting Delivery—
2. Warrant against eviction and hidden defects 1. Actual Delivery
3. Preserve the thing a. When deemed made: when the thing 278
4. Pay for the expensed for the execution and sold is placed in the control and
SALES
registration of the deed of sale possession of the vendee (Art. 1497)
b. Not always essential to passing of title
A. To transfer ownership (Art. 1475)
(Asked in 84, 98, 99, 03) c. Parties may agree when and on what
conditions the ownership in the subject
Obligation to transfer ownership and to deliver is of the contract shall pass to the buyer
really implied in every contract of sale (Arts. (example: Art 1478 where ownership will
1458-1459) only pass after full payment of the price)
Transfer of ownership requires delivery (Art. 2. Constructive Delivery

1495) a. Execution of public instrument (Art
1498, par. 1)
General Concepts—  General rule: produces the same
1. Delivery comprises 2 obligations in Art. legal effects of actual delivery.
1495:  Exceptions:
a. Actual duty to deliver  The intention of the parties is
b. Transfer of ownership – can only be otherwise.
accomplished via delivery  At the time of execution, the
subject matter was not subject
2. What to Deliver to the control of the seller which
a. Thing sold (Art. 1495) must subsist for a reasonable
b. Fruits (Art. 1164 & 1537) length of time after execution.
c. Accessions and accessories (Art. 1166 (Pasagui v Villablanca, 68
& 1537) SCRA 18)
 Improvements by seller at his  “Control” over thing sold must be
expense grants him a usufructuary such that seller is capable of
right. physically transferring it to buyer
 No indemnification
 But he may remove it to the extent b. Symbolic Delivery
that there is no damage (Art. 1538)  Delivery of keys of the place or
depositary where the movable is
3. Where to Deliver stored or kept. (Art 1498, CC)
a. A hierarchy is followed (STOR):  Unless otherwise agreed, when
 Stipulation symbolic delivery has been made,
 Usage of trade the seller is not obliged to remove
 Seller’s place of business (office) tenants to place the buyer in actual

lOMoARcPSD|3291925
possession of the property as he  F.A.S.: “Free Alongside”

has already complied with his Seller bears the expenses of
obligation to transfer ownership of transportation until he delivers
and deliver the thing sold. (Power the goods alongside a vessel at
Commercial and Industrial Corp. a named port.
v. CA, 1997; Sabio v. The
International Corporate Bank,
Inc., 2001) Completeness of Delivery—
1. When may the seller refuse to deliver:
c. Tradition Longa Manu (Long Hand) a. No payment yet or no period for
 Delivery of thing by mere payment has been fixed in the contract
agreement. (Art.1524);
 Example: Seller points to the b. The buyer loses the right to make use
property without actually transferring of the term, as when:
physical possession thereof.  He becomes insolvent UNLESS he
 When an employer assigned all its gives a guaranty or security for the
rights and title to all surplus property debt;
salvaged by the contractor, tradition  He does not does not furnish the
longa manu takes place. Delivery is seller the guaranties or securities he
upon the moment a thing is promised;
salvaged. (Board of Liquidators v.  He impairs the guaranties or
Floro, 1960) securities or they disappear 279
fortuitously UNLESS he immediately
SALES
d. Tradition Brevi Manu (Short Hand) gives new ones equally satisfactory;
MOVABLE is delivered when the buyer  He violates any undertaking, in
had the thing already in his possession consideration of which the seller
before the sale took place, not as owner agreed to the period;
but as lessee, borrower, or depositary.  He attempts to abscond. (Art.1536)
e. Tradition Constitutum Possessorium 2. Rules on Sales of Goods

Seller continues to be in possession of a. When Quantity less than expected
the property sold, by virtue of a lease  Buyer may reject all
contract agreement with the vendee.  Buyer accepts with knowledge of
seller’s inability to deliver the rest –
f. Delivery to a Common Carrier buyer pays at contract price
 General Rule: Delivery to the  Buyer has used or disposed prior to
courier or carrier tantamount to knowing seller’s inability to deliver
delivery to buyer. the rest – buyer pays fair value
 Exceptions b. Quantity more than expected
 Seller reserved title by the form  If divisible, buyer may reject excess
of the bill of lading, with intent to  If indivisible, buyer may reject all
remain the owner, not merely for c. Quality different or different goods
the purpose of securing  If divisible, buyer may accept the
payment, OR goods compliant with contract and
 Contrary intent appears in the reject those that are not
contract (i.e. seller is required to  If indivisible, buyer may reject all
deliver goods to buyer at the (Art. 1522)
point of destination) d. Sale of specific mass of goods
 F.O.B.: “Free on Board” In the sale of fungibles where the
When seller bears the expenses measure or weight has not been
of transportation up to the agreed upon nor is there a fixed rate
F.O.B. point. based upon a measurement, the
subject matter of the sale is a
 C.I.F.: “Cost, Insurance, determinate object – the specific
Freight” mass; seller is merely required to
Price quoted includes the costs deliver such mass even if actual
of the goods, insurance, and quantity falls short of parties’
freight charges on the goods up estimate (Art. 1480)
to the point of destination.

lOMoARcPSD|3291925
e. Delivery by installments Effect of Delivery—

 By default, buyer is not bound to 1. Delivery, generally, results in transfer of
accept delivery of goods by ownership from seller to buyer.
instalments 2. As such, it also transfers the risk of loss of
 In a contract of delivery by the thing sold to the buyer.
installment to be paid for via 3. Acceptance is not a condition for the
installment as well, delay or breach completeness of delivery; even with such
may not necessarily mean breach of refusal of acceptance, delivery will be
the entire contract; depending on deemed completed and produce its legal
the circumstances, breach may be effects.
severable and the aggrieved party 4. By default, expenses of and incidental to
is entitled to damages and not putting the goods into a deliverable state
rescission. (Art. 1583) must be borne by seller. (Art. 1521)
3. Rules on Sales of Immovables

a. Sale at a fixed rate per unit of measure When delivery does not transfer title—
 Seller bound to deliver entire land 1. Sale on approval, trial, or satisfaction
 If the area is less than that stated, General Rule: Title remains with the seller
buyer may rescind or demand a
proportionate reduction in price Exceptions:
 If a part of the land is not of the a. Buyer signifies his approval or
quality stated in the contract, buyer acceptance to the seller or does any 280
may rescind or demand a other act adopting the transaction
SALES
proportionate reduction in price b. Retains the goods without giving notice
 Buyer may only avail of rescission if of rejection after the time fixed has
the area deficiency is 10% or more expired, if no time has been fixed, after
of total area or if the inferior value of the expiration of a reasonable time (Art
the part of the land exceeds 10% of 1502, CC)
the price agreed upon. (Art. 1539)
 If the area turns out to be greater Difference between sale on approval and
than that stated, buyer may accept sale on return
area included and reject the excess
or accept all and pay a Sale on Approval Sale on Return
proportionate increase in price (Art. Ownership does not pass Ownership passes upon
1540) upon delivery delivery, but buyer may revest
ownership in the seller by
b. Sale for lump sum returning or tendering the
goods within the time fixed in
 Follows the same rule as the sale of the contract
a specific mass which is explained Depends on the character Depends on the will of the
above or quality of goods buyer
 There is no change in price even if Subject to a suspensive Subject to a resolutory
area or number turns out to be condition condition
greater or lesser than that stated Risk of loss remains with Risk of loss remains with the
(Art. 1542) the seller buyer
 Exception: when the excess or
deficiency is no longer reasonable;
in Asian v Jalandoni, 1923, 644 sq 2. Express Reservation
m was found to be unreasonable. If it was stipulated that ownership in the
 Exception to the exception: when thing shall not pass to the purchaser until he
buyer expressly assumes risk on has fully paid the price. (Art 1478, CC)
actual area of the land. (Garcia v
Veloso, 1941) 3. Implied Reservation
 If the price per unit or measure is The following are instances when there is an
not provided for in the contract, then implied reservation of ownership
the rules of lump sum sale should a. Goods are shipped, but by the bill of
prevail. (Sta. Ana v Hernandez, lading goods are deliverable to the seller
1966) or his agent, or to the order of the seller
or his agent

lOMoARcPSD|3291925
b. Bill of lading is retained by the seller or 6. Sale by person having a voidable title
his agent. a. True owner may recover the thing when
c. When the seller of the goods draws on provided the ff. requisites concur:
the buyer for the price and transmits the  Subject matter is movable
bill of exchange and bill of lading to the  Owner has either lost the thing or
buyer, and the latter does not honor the has been unlawfully deprived. (Art
bill of exchange by returning the bill of 559, CC)
lading to the seller. b. Reimbursement is necessary before
owner can recover when:
4. When sale not valid  Buyer acted in good faith
eg. When the thing sold is a public property  Acquired at a public auction (Art
559, CC)
5. When Seller is not the owner c. Recovery no longer possible when:
(Asked in 77, 78, 86, 87)  Buyer in good faith
 Acquired it at a merchant’s store,
General Rule: Ownership is not acquired by fair or market. (Art 1506, CC)
the buyer. One cannot give what one does __________
not have. (Art 1505, CC)
B. To warrant against eviction & hidden
Exceptions: (RE-ROM) defects (Art. 1495; 1547)
a. Seller has a Right to transfer ownership
 Seller need not be the owner of the Warranties— 281
thing at the time of perfection of the A statement or representation made by the seller
SALES
contract It is sufficient that seller has contemporaneously and as part of the contract
a right to transfer ownership thereof of sale, having reference to the character,
at the time it is delivered (Art. 1459) quality, or title of the goods, and by which he
 One who sells something he does promises or undertakes to ensure that certain
not own yet is bound by the sale facts are or shall be as he then represents.
when he acquires the thing later
(Bucton vs Gabar, 55 SCRA 469) Effects of Warranties—
b. Estoppel: Owner is by his conduct 1. Natural tendency is to induce buyer to
precluded from denying the seller’s purchase the subject matter
authority to sell. (Art. 1434) 2. Buyer purchases subject matter relying
c. Registered land bought in good faith thereon
 General rule: Buyer need not go 3. Seller liable for damages in case of breach
beyond the Torrens title
 Exception: When he has actual Effects of Waivers—
knowledge of facts and Only applicable to waiver of warranty against
circumstances that would impel a eviction (see the following section) – parties may
reasonably cautious man to make increase or decrease warranty against eviction
further inquiry but the effect depends on good/bad faith of the
d. Order of courts Statutory Sale seller
In execution sale, the buyer merely 1. Seller in bad faith and there is warranty
steps into the shoes of the judgment against eviction – null and void
debtor (Rule 39, sec. 33, ROC) 2. buyer without knowledge of a particular risk,
e. When goods are purchased in made general renunciation of warranty – not
Merchant’s store, Fair, or Market (Art waiver but merely limits liability of seller in
1505, CC) case of eviction (pay value of subject matter
The policy of the law has always at time of eviction)
been that where the rights and 3. buyer with knowledge of risk of eviction
interest of the vendor clash with that assumed its consequences and made a
of an innocent buyer for value, the waiver – vendor not liable
latter must be protected. (Sun 4. waiver to a specific case of eviction – wipes
Brothers and Co. V. Velasco, out warranty as to that specific risk but not
(1958) as to eviction caused by other reasons

lOMoARcPSD|3291925
Condition v. Warranty— Express Warranty False Representation

Concealment of facts  When concealment of
Condition Warranty does not necessarily facts comes with an
Pertains to and affects Goes into the amount to false active misstatement of
the existence of the performance of an representation fact or a partial
obligation obligation and may, in statement of fact such
itself, be an obligation that withholding of that
Non-happening does not Non-fulfillment unsaid portion makes
amount to breach of constitutes breach of that which is stated
contract contract absolutely false
Must be stipulated Stipulation or operation  However, buyer who
of law fails to inspect condition
May attach to either to Always relates to the of property despite
the seller’s duty to subject matter or the ample opportunity to do
deliver thing or some seller’s obligations as to so and no opposition on
other circumstance the subject matter the part of seller cannot
later on allege false
representation. (Phil
 If seller has promised that the condition
Mftg Co. v Go Jucco,
should happen or be performed, the 1926) This is because
buyer may treat the nonperformance of buyer’s duty to inspect
the condition as a breach of warranty. remains despite false
(Art.1545) representation by the
seller. Buyer has the 282
Form— duty to exercise due
SALES
1. Express Warranty (APIR) diligence.
For there to be express warranty, the
following requisites must concur:
a. An affirmation of fact or any promise 2. Implied Warranty
relating to the thing sold; a. Implied Warranty of Title
b. The natural tendency of such affirmation b. Implied Warranty against Encumbrance
or promise is to induce the buyer to buy; / Non-Apparent Servitudes
c. The buyer buys the thing relying c. Implied Warranty against Hidden
thereon. (Art. 1546) Defects (Art. 1547)
d. Made before the sale not upon delivery  Implied warranty as to
or any other point Merchantable Quality and Fitness
of Goods
An express warranty can be made by and  Implied warranty against
also be binding on the seller even in the sale Redhibitory Defect in the Sale of
of a second hand article. (Moles v. IAC, Animals (Art. 1572)
1989)  Quality and Fitness of Goods in
Sale by Sample or Description
Express Warranty Dealer’s or Trader’s d. Other Warranties
Talk
What is specifically  Affirmation of the Implied Warranty of Title—
represented as true in value of the thing or 1. Implied warranty arises by operation of law
said document cannot be statement of the and need not be stipulated in the contract of
considered as mere seller’s opinion only sale.
dealer's talk. (Moles v. is not a warranty 2. Warranty of Seller’s Right to Sell: seller
IAC, 1989) unless:
warrants his right to sell at the time the
- The seller made
it as an expert; ownership is to pass.
- It was relied upon  Inapplicable to a sheriff, auctioneer,
by the buyer. mortgagee, pledgee, or other person
(Art.1546) professing to sell by virtue of authority in
 Ordinarily, what does fact or law. (Art. 1547)
not appear on the face 3. Warranty against Eviction: seller warrants
of the written that buyer, from the time ownership passes,
instrument (Moles v. shall have and enjoy legal and peaceful
IAC, 1989) possession of the thing. Its requisites are:
a. Buyer is deprived of the whole or a part
of the thing sold;

lOMoARcPSD|3291925
b. Eviction is by final judgment relies on the seller’s skill or judgment

c. Final judgment based on a right prior to (Art.1562(1))
the sale or an act imputable to the
vendor Implied warranty against Redhibitory Defect
d. Seller is summoned and made coin the Sale of Animals (Art. 1572)—
defendant in the suit for eviction at the  Redhibitory defect- a hidden defect of
instance of the buyer. (Power animals of such nature that expert
Commercial and Industrial Corp. v. knowledge is not sufficient to discover it,
CA, 1997) even in case a professional inspection has
been made
Implied Warranty against Encumbrance /  No warranty in case of (Art. 1574):
Non-Apparent Servitudes— a. Animals sold at fairs or public auctions
Requisites for breach: b. Livestock sold as condemned
1. Thing sold is an immovable  The following sales are void (Art. 1575):
2. Burden or servitude encumbering the thing a. Sale of animals suffering from
sold is contagious diseases
a. Non-apparent to the naked eye b. Sale of animals unfit for the purpose for
b. Not mentioned in the agreement which they are acquired as stated in the
c. Of such nature that it must be presumed contract
that the buyer would not have bought it  Veterinarian liable if he fails to discover or
had he been aware thereof disclose the hidden defect through
d. Not recorded in the Registry of Property ignorance or bad faith (Art 1576) 283
unless there is an express warranty that  Seller liable if animal dies within 3 days after
SALES
the thing is free from all burdens and its purchase due to a disease that existed at
encumbrances (Art.1560) the time of sale. (Art 1578)
Implied warranty against Hidden Defects— Other Warranties—

Requisites for breach: 1. Warranty in Sale of Consumer Goods
1. The defect renders the thing sold unfit for Consumer goods – goods primarily for
the use for which it was intended OR personal, family, household or agricultural
diminishes its fitness for such use to such an purposes, which shall include but not limited
extent that had the buyer been aware to food, drugs, cosmetics, and devices
:
thereof, he would not have bought it or (Sec.4(q), RA 7493 Consumer Act of the
would have paid a lower price; Phil)
2. The defect is not patent or visible;
3. The buyer is not an expert who, by reason of Kinds:
his trade or profession, should have known a. “Full warranty”- if the written warranty
the defect meets the minimum standards
4. The seller is aware of the hidden fault or b. “Limited warranty- if the written warranty
defect, OR even he is not aware thereof, if does not meet the minimum standards
there is no stipulation to the contrary (Sec.6(c), RA7394)
(Arts.1561 &1566)
Minimum standard for warranties that the
Implied warranty as to Merchantable Quality warrantor shall:
and Fitness of Goods— a. Remedy such consumer product within
Merchantable Quality: a reasonable time and without charge in
1. Where the goods are brought by description case of a defect, malfunction or failure to
from a seller who deals in goods of that conform to such written warranty;
description (Art.1562) b. Permit the consumer to elect whether to
2. In a sale by sample, if the seller is a dealer ask for a refund or replacement without
in goods of that kind and the defect is not charge of such product or part, as the
apparent on reasonable examination of the case may be, where after reasonable
sample (Art.1566) number of attempts to remedy the defect
or malfunction, the product continues to
Fitness for a particular purpose: Where the have the defect or to malfunction
buyer expressly or impliedly makes known to the
seller the particular purpose for which the goods The warrantor will not be required to perform
are acquired AND it appears that the buyer the above duties if he can show that the
defect, malfunction or failure to conform to a

lOMoARcPSD|3291925
written warranty was caused by damage due Exception: if there is a stipulation to the
to unreasonable use thereof. (Sec.68(d), RA contrary (Art. 1487)
7394)
Expenses incurred subsequent to the transfer of
2. Warranty in sale of Subdivision Lot or title are to be borne by the buyer, unless caused
Condominium Units by the fault of the seller
The owner or developer shall be answerable
and liable for the facilities, improvements,
infrastructures or other forms of II. Obligations of the Buyer
development represented or promised in
brochures, advertisements and other sales
Obligations of the Buyer—
propaganda disseminated by the owner or
1. To Accept delivery
developer or his agents and the same shall
2. To Pay the price of the thing sold
form part of the sales warranties enforceable
against said owner or developer, jointly and
Pertinent Rules—
severally. (Sec.19, PD 957: The
1. In a contract of sale, the seller is not
Subdivision and Condominium Buyers’
required to deliver the thing sold until the
Protective Decree)
price is paid nor is the buyer required to pay
the price before the thing is delivered in the
__________
absence of an agreement to the contrary
(Art 1524) 284
C. To preserve the thing, pending delivery,
2. If stipulated, then the buyer is bound to
with proper diligence (Art. 1163)
SALES
accept delivery and to pay the price at the
time and place designated
Duration: From the perfection of sale until
3. If there is no stipulation as to the time and
delivery (Art 1480)
place of payment and delivery, the buyer is
bound to pay at the time and place of
Default standard of care: Diligence of a good
delivery
father of a family
4. In the absence also of stipulation, as to the
place of delivery, it shall be made wherever
General rule: seller is liable for loss or
the thing might be at the moment the
deterioration (Art. 1174)
contract was perfected (Art. 1521)
5. If only the time for delivery of the thing sold
Exception: fortuitous event (Art. 1174)
has been fixed in the contract, the vendee is
required to pay even before the thing is
Exception to exception: seller is still liable for
delivered to him.
fortuitous event if
1. Law provides for it (e.g. delay or promising
First Obligation: accept delivery—
to deliver the same thing to 2 or more
1. Form
persons with different interests – Art. 1165)
a. Express: buyer intimates acceptance
2. By stipulation
b. Implied:
3. Nature of obligation requires assumption of
 Goods delivered to the buyer and he
risk
does any act in relation to them that
is inconsistent with the ownership of
Fungibles sold for a price fixed according to
the seller.
weight, number or measure: duty to preserve
 After the lapse of a reasonable time,
begins only after the things are weighed,
the buyer retains the goods without
counted or measured except when seller is
intimating to the seller that he has
already in delay.
rejected them. (Art.1585)
__________
2. Manner
Right of Inspection: reasonable
D. To pay for the expenses for the execution
opportunity to examine the goods upon
and registration of the deed of sale (Art.
delivery. If there is a stipulation that delivery
1487)
is preconditioned on payment, then buyer
has no right of inspection until he has paid.
General rule: The seller has the duty to pay for
(Art.1584) Exception: in case such right of
the expenses for the execution and registration
inspection is permitted by agreement or
of the deed of sale
usage trade.

lOMoARcPSD|3291925
3. Effect of Refusal to accept new term (Heirs of Escanlar, et.al. v.

a. If buyer refuses to accept goods, having CA, 1997)
the right to do so, he is not bound to  R.A. 6552 (Maceda Law) – applies to
return them to the seller; it being sale or financing of real estate on
sufficient that he notifies the seller of his installment (Rillo v. Court of
refusal to accept Appeals,1997)
 If he voluntarily constitutes himself a  Buyer is awarded a grace period of
depositary of the goods, he shall be 1 month per year of installments
liable as such. (Art.1587) paid or 60 days, whichever is
b. Unjust refusal to accept still results to higher, within which he may pay
transfer of ownership; title to the goods without additional interest
passes to the buyer from the moment o may be used once every 5
they are placed at his disposal, except if years of the life of the contract
ownership has been reserved by the or any of its extensions
seller (Art.1588)  If contract is to be cancelled, seller
must first:
Second Obligation: pay the price of the thing o 30 day notice of cancellation,
sold (Art. 1582)— and
1. Payment of interest o refund cash surrender value to
Buyer is liable for interest when: (SFD) buyer; amount is equivalent to
a. Interest is stipulated; 50% of total payments made
b. Thing sold produces fruits or income; including deposits, options and 285
c. Buyer is in default - interest accrues down-payments plus 5% for
SALES
from the time of judicial or extrajudicial every year in excess of 5 years
demand for payment of the life of the contract or any
of its extensions
2. Suspension of payments
Buyer may suspend payment when:
a. his ownership or possession of the thing
is disturbed or
b. he has reasonable grounds to fear such
disturbance by a vindicatory action or a
foreclosure of mortgage
Exceptions: buyer cannot suspend

payment when:
a. seller gives security for the return of the
price in a proper case
b. it has been stipulated that,
notwithstanding any such contingency,
the buyer shall be bound to pay (Art.
1590)
Suspension may continue until the seller has

caused the disturbance or danger to cease
 A mere act of trespass shall not
authorize the suspension of the
payment. (Art.1590)
3. Sale of real property

 In the sale of immovable property, buyer
may pay even beyond the expiration of
the period agreed upon, as long as no
demand for rescission of the contract
has been made upon him either
judicially or by a notarial act, despite a
stipulation providing for ipso jure
rescission (Art.1592) (Asked in 88, 00)
After demand, court may not grant him a

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter III. DOUBLE SALES
both registration in its ordinary and strict

Chapter III. Double Sales sense and cancellation, annotation, and
(Asked in 77, 87, 89, 98, 01, 04) even marginal notes. (Cheng v. Genato,
1998)
I. General Rule
II. Requisites
NOTE: Pencilled entries on the title are not
III. Rules governing sale of movables,
immovables and unregistered lands
considered registration (AFPMBAI v.
IV. Purchaser in good faith Court of Appeals, 1999).
C. Sale by Virtue of Execution and

I. General Rule Attachment
Art. 1544 does NOT apply to the sale of
Prior tempore, potior jure (“he who is first in time unregistered land at an execution sale
is preferred in right”) applies. because a buyer of unregistered land at a
execution sale only steps into the shoes of
the judgment debtor, and merely acquires
II. Requisites the latter's interest in the property sold as of
the time the property was levied upon.
Requisites (Cheng v Genato, 1998) (Carumba v. CA, 1970)
1. 2 or more valid sales;
2. Same subject matter;
3. 2 or more buyers with conflicting interests at D. Sale of Unregistered Land 286
odds over the rightful ownership of the thing 1. Instrument or deeds establishing,
SALES
sold; transmitting, acknowledging, modifying or
4. Same seller extinguishing rights with respect to lands not
registered under the Land Registration Act
or the Spanish Mortgage Law, are required
to be registered in the Registry of Property
III. Rules Governing Sale of Movables, rd
to prejudice 3 persons, although such
Immovables and Unregistered Lands registration is understood to be “w/o
rd
prejudice to a 3 party with a better right”.
A. Sale of Movables (PD 1528 Sec 113)
Ownership shall be transferred to the person 2. Art. 1544 applies to unregistered land
who may have first taken possession in subject to a conventional sale (because of
good faith. Art. 1358) but NOT to unregistered land
subject to judicial sale.
B. Immovables
1. Ownership belongs to the person who: E. Purchaser in good faith
a. In good faith first recorded in the (Asked in 76, 86, 08)
Registry of Property; OR 1. General Characteristics
b. If there is no inscription, ownership a. One who buys the property of another,
passes to the person who in good faith without notice that some other person
was first in possession; OR has a right to or interest in such
c. In the absence thereof, to the person property, and who pays a full and fair
who presents the oldest title, price for the sale, at the time of the
PROVIDED there is good faith. NOTE: purchase or before he has notice of the
good faith is required all the time. claim/interest of some other person in
the property. (Agricultural and Home
NOTE: Extension Development Group v CA,
a. “Oldest Title” – any public document 1992)
showing acquisition of the land in good b. A buyer could not have failed to know or
faith. To constitute “title,” the discover that the land sold to him was in
transmission of ownership must appear adverse possession; hence he is
in a public document [Art. 1358 (1)] deemed to have acted in bad faith.
b. Examples: Deed of Sale, Deed of (Heirs of Ramon Duran v Uy, 344
Donation, Deed of Trust SCRA 238)
2. Registration includes any entry made in the

Primary Entry Book of the registry, including

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CIVIL LAW REVIEWER Chapter III. DOUBLE SALES
2. Presumption
Gen Rule: As a rule, he who asserts the
status of a purchaser in good faith and for
value, has the burden of proving such
assertion. This onus probandi cannot be
discharged by mere invocation of the legal
presumption of good faith, i.e., that everyone
is presumed to act in good faith (Mathay v
CA, 295 SCRA 556)
When buyer is presumed to be in bad

faith:
a. Annotation of adverse claim: Places
any subsequent buyer of the registered
land in bad faith. (Balatbat v CA, 261
SCRA 128)
b. Annotation of Lis Pendens: Buyer
cannot be considered an innocent
purchaser for value where it ignored the
lis pendens on the title.
Lis Pendens Annotation of Adverse 287

Claim
SALES
maybe cancelled even may be cancelled only in
before the action is one instance, i.e., after the
finally terminated for claim is adjudged invalid
causes which may not or unmeritorious by the
be attributable to the Court
claimant
Both are intended to protect the interest of a
claimant by posing as notices and caution to those
said with the property that same is subject to a
claim.
NOTE: The two are not contradictory or

repugnant to one another; nor does the
existence of one automatically nullify the
other, and if any of the registrations should
be considered unnecessary or superfluous,
it would be the notice of lis pendens (A.
Doronila Resources Development Inc v CA,
1988)

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CIVIL LAW REVIEWER Chapter IV. RISK of LOSS
Chapter IV. Risk of Loss
I. GENERAL RULE
II. EXCEPTION
I. General Rule
 Res perit domino: Owner bears risk of

loss
 Ownership is not transferred until delivery
II. Exceptions
1. Contrary stipulation
2. An obligation to deliver a generic thing is
not extinguished by loss. (Art 1263, CC)
3. Risk of loss of specific things is subject to
the ff: 288
a. When loss occurs before perfection,
SALES
such loss is borne by seller
b. When loss occurs at time of perfection,
loss must have occurred before the
contract was entered into, without the
knowledge of both parties
TOTAL LOSS PARTIAL LOSS (Or loss

which results in
substantial change in
character)
Contract is Buyer may withdraw from
ineffective. the contract
OR
 Because there Buy the remainder at a
can be no contract proportionate price
without an object
c. When loss occurs after perfection but

before delivery
 Seller bears risk of loss
 Buyer does not bear risk of loss until
goods are delivered to him

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CIVIL LAW REVIEWER Chapter V. DOCUMENTS of TITLE
Who may negotiate it? (Art.1512,CC)—

Chapter V. Documents of Title 1. Owner
2. Person to whom the possession or custody
I. IN GENERAL of the document has been entrusted by the
II. NEGOTIABLE DOCUMENTS OF TITLE
owner
III. NON-NEGOTIABLE DOCUMENTS OF TITLE
a. If bailee undertakes to deliver the goods
to such person
b. If document is in such form that it may
I. In General be negotiated by delivery
Definition— A person to whom a document has been

A document used in the ordinary course of negotiated acquires—
business in the sale or transfer of goods, as 1. Rights of the vendor
proof of the possession or control of the goods, 2. Rights of the original consignee
or authorizing or purporting to authorize the
possessor of the document to transfer or A person who negotiates a document of title
receive, either by endorsement or by delivery, warrants—
goods represented by such document. (Art. 1. Genuineness of document
1636) 2. Legal right to negotiate or transfer
3. No knowledge of fact which would impair the
Examples: bill of lading, quedan, warehouse validity or worth of the document
receipts, trust receipts 4. Right to transfer the title to the goods and 289
merchantability or fitness for a particular
SALES
Purpose— purpose, whenever such warranties would
1. Evidence of possession or control of goods have been implied had the contract been
described therein transfer the goods without a document
2. Medium of transferring title and possession
over the goods described therein without He does not warrant that—
having to effect actual delivery thereof 1. Common carrier will fulfill its obligation to
(Villanueva) deliver the gods
3. The custody of a negotiable warehouse 2. Previous indorsers will fulfill their obligation
receipts issued to the order of the owner, or (Art. 1516-1517, CC)
to bearer, is a representation of title upon
which bona fide purchasers for value are Goods in the hands of the carrier covered by
entitled to rely, despite breaches of trust or a negotiable document cannot be attached or
violations of agreement on the part of the levied upon, UNLESS—
apparent owner. (Siy Cong Bieng vs. 1. Document is first surrendered to the carrier;
HSBC, 56 Phil 598) or
2. Impounded by the court; or
3. Its negotiation is enjoined. (Art. 1519-
II. Negotiable Documents of Title 1520,CC)
Definition—
Document of title which states that the goods III. Non-Negotiable Documents of Title
referred to therein will be delivered to the bearer,
or to the order of any person named in such  Goods described in a non-negotiable
document (Art. 1508, CC). document of title are deliverable only to a
specified person
TERMS OF THE HOW NEGOTIATED  Carrier will not deliver the goods to any
DOCUMENT holder of the document or to whom such
Goods are deliverable to By delivery of the document may have been endorsed by the
bearer document to another consignee
 Must present the deed of sale or donation in
Endorsed in blank by the
his favor
person to whose order the
goods were deliverable
Goods are deliverable to By indorsement of
the order of a specified such person (Art.
person 1509,CC)

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CIVIL LAW REVIEWER Chapter V. DOCUMENTS of TITLE
 “Negotiation” [negotiable document of

title] VS. “Transfer” [non-negotiable
document of title]:
Negotiation (Art. 1508) Transfer

Delivery of a negotiable The assignment of rights
document of title to of the consignee of a
another if by the terms non-negotiable document
thereof, the goods are of title to another; or
deliverable to bearer, or
when the document was Document of title was
endorsed in blank by ordered sold or assigned,
the person to whose without indorsement.
order the goods are
deliverable.
Transferee does not
In a negotiable acquire a better title than
document of title, the his transferor
buyer may acquire a
better title.
290
SALES

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CIVIL LAW REVIEWER Chapter VI. REMEDIES of the SELLER and BUYER
a. Possessory lien over the goods—

Chapter VI. Remedies of the Seller and
Buyer Right to retain possession of goods until
payment or tender of the whole price, or
I. GENERAL REMEDIES unless he agrees to sell on credit (1526-
A. SPECIFIC PERFORMANCE 1529, 1503, 1535)
B. RESCISSION
C. DAMAGES
II. REMEDIES OF THE SELLER
When available:
A. IN THE SALE OF MOVABLES  Goods are sold without stipulation
1. EXTRAJUDICIAL REMEDIES as to credit
2. JUDICIAL REMEDIES  Goods are sold on credit, but term
B. IN THE SALE OF IMMOVABLES of credit has expired
1. RESCISSION FOR ANTICIPATORY  Buyer becomes INSOLVENT
BREACH
2. SPECIFIC PERFORMANCE WITH When lost:
DAMAGES
 Seller delivers goods to carrier or
3. RESCISSION WITH DAMAGES
4. MACEDA LAW other bailee for transmission to the
III. REMEDIES OF THE BUYER buyer under a straight or non-
A. FOR BREACH OF OBLIGATION TO negotiable bill of lading
PRESERVE  Buyer/his agent lawfully obtains
B. FOR BREACH OF OBLIGATION TO possession of goods
DELIVER  Seller waives it 291
C. FOR BREACH OF WARRANTY  Not lost in remainder of goods
SALES
when only partial delivery is
made (unless such is symbolic
I. General Remedies (Art. 1191, CC) delivery of the whole)
 Not lost by mere fact that seller
The following remedies arise from the bilateral obtained a judgment for the
nature of the contract of sale: price
1. Specific performance (Asked in 02)
2. Rescission (Asked in 03, 08) When revived: Goods are returned by
 General rule is that rescission of a the buyer in a wrongful repudiation of
contract will not be permitted for a slight the contract
or casual breach, but only for such
substantial and fundamental breach b. Right of stoppage in transitu—
as would defeat the very object of the
parties in making the agreement. (Song An extension of the lien for the price;
Fo & Co. vs. Hawaiian-Philippine Co., entitles unpaid seller to resume
(1925)) possession of the goods while they are
3. Damages in transit before the goods come in
possession of the vendee (1530-1532,
Neither party incurs in delay if the other does not 1535, 1636[2])
comply or is not ready to comply in a proper
manner with what is incumbent upon him (Art Available when: Vendee becomes
1169, CC) INSOLVENT
Prescriptive periods— When are goods in transit?

1. 10 years if based on written contract  From time of delivery to the
2. 6 years if based on oral contract carrier or other bailee by the seller,
for the purpose of transmission to
the buyer, until the buyer or his
II. Remedies of the Seller agent takes such delivery from the
carrier.
A. In the Sale of Movables  Even when goods have reached
1. Extrajudicial or Self-Help Remedies their ultimate destination, if buyer
[NOTE: No need to resort to the courts; as rejects them and carrier retains
long as possession of the goods has not yet possession
passed to the buyer]

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 To terminate transit by delivery Effects:

to a middleman, delivery must  Seller is no longer liable to the
be to keep, not to transport. original buyer upon the contract of
sale or for any profit made by the
When are goods no longer in transit? resale
 Buyer obtained delivery of the  Buyer at resale acquires good title
goods before such have reached as against the original owner
their ultimate destination  In case resale is at a loss, seller
 Goods have arrived at ultimate entitled to recover the difference
destination, but carrier refuses to from the original buyer
deliver  Seller may recover damages from
 Carrier enters into a new contract original buyer for breach of contract
with the buyer upon arrival of the
goods at their ultimate destination d. Special right to rescind:
How exercised? RETURN of the title over the

 By obtaining actual possession of undelivered goods to the seller, and
the goods right to recover DAMAGES for breach of
 By giving notice of his claim to the contract (1534)
carrier/other bailee who has
possession of the goods Available to unpaid seller who has a
 Carrier must redeliver goods to right of lien or who has stopped the 292
seller, or according to his goods in transitu
SALES
instructions
 Carrier not obliged to redeliver When available:
until the negotiable document of  Seller expressly reserved right to
title, if any, has been rescind in case buyer defaults
surrendered for cancellation  Buyer has been in default in
payment for an unreasonable time
Seller’s right to stoppage in transitu not
affected even if buyer has sold or Transfer of title shall not be held to have
disposed of the goods; Unless the seller been rescinded by the unpaid seller until
assented he manifests by notice to the buyer or
some other overt act an intention to
c. Special right of resale— rescind.
Available to unpaid seller who has a 2. Judicial Remedies of an unpaid seller

right of lien or who has stopped the a. Action for the price or specific
goods in transitu (1533) performance (1595)—
Purpose: For seller to liquidate his Conditions:

damages  the goods has passed to the buyer
 He must do so within a reasonable  Price is payable on a certain day,
time and in such manner as to irrespective of delivery of the goods
obtain the best price possible.  Buyer can set up the defense that
 Resale = fair sale if in accordance seller could not or did not intend to
with established business practices, deliver the goods
with no attempt to take advantage of  Seller was notified by the buyer of
the original buyer. his repudiation of the contract after
 Resale may be in a private or public the seller has completed the
sale, but seller cannot buy indirectly manufacture of the goods/had
or directly. procured the goods to be delivered
 For resale to be valid, buyer need and the goods could not readily be
not be notified of an intention to resold for a reasonable price
resell or the time and place of the
resale. b. Action for damages for non-
acceptance, if buyer wrongfully neglects
or refuses to accept and pay for the
goods (1596)

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Measure of damages: Estimated loss  Also applies when seller assigns

directly and naturally resulting in the his credit to someone else
ordinary course of events from the
buyer’s breach Alternative Remedies of the unpaid
 Where there is available market for seller under Recto Law
goods: Difference between the  Specific Performance
contract price and the market price  Cancellation of sale: If vendee fails
at the time the goods ought to have to pay 2 or more installments
been accepted or if no time was  When the seller cancels the sale
fixed, at the time of refusal to accept by repossessing the property
 If the resale was made with sold, he is barred from exacting
diligence, resale price is evidence of payment for its price.
market value, taking into account  Foreclosure of Chattel Mortgage: If
whether or not the goods could be vendee fails to pay 2 or more
readily sold installments
 Where labor/expense was  If seller chooses this remedy, he
necessary for seller to fulfill his shall have no further action to
obligation: Labor performed and recover any unpaid balance,
expenses made by seller before and any stipulation to the
receiving notice of buyer’s contrary shall be void
repudiation or countermand  Motors vs. Sapinoso, (1970):
 Profit that the seller would have What Art 1484 (3) prohibits is 293
made if sale had been fully “further action against the
SALES
performed purchaser to recover any unpaid
balance of the price;” and
c. Rescission by giving the buyer notice of although this Court has
the election to rescind (1597) construed the word “action” to
mean “any judicial or
Under this rule, rescission would bar an extrajudicial proceeding by
action on the contract because it means virtue of which the vendor may
cancellation of the contractual lawfully be enabled to exact
obligations between the parties. recovery of the supposed
(Baviera) unsatisfied balance of the
purchase price from the
d. Special rule for sale of movables by purchaser or his privy,” there is
instalments – Recto Law (1484, 1485) no occasion at this stage to
(Asked in ‘99) apply the restrictive provision of
the said article because there
Applies in cases of: has not yet been a foreclosure
 Sale of movables in installment sale resulting in a deficiency.
 Levy Hermanos vs. Gervacio, The payment of the sum of
(1939): The rule is intended to P1,250 of Sapinoso was a
apply to sales of movables, the voluntary act on his part and did
price of which is payable in 2 or not result from a “further action”
more installments, but not to instituted by Northern Motors.
straight-term sales where the  Bachrach Motor Co., Inc. v.
price is payable in full, after Millan, (1935): Purpose of the
making a down payment law is to remedy the abuses
because the law aims to protect committed in foreclosure of
improvident buyers who may be chattel mortgages. It prevents
tempted to buy beyond their mortgagees from seizing the
means. mortgaged property, buying it at
 Lease of personal property with foreclosure sale for a low price
option to buy and then bringing the suit
 When lessor has deprived the against the mortgagor for a
lessee of the possession or deficiency judgment. The
enjoyment of the thing (Ex. almost invariable result of this
When lessor files a complaint procedure was that the
for replevin against lessee) mortgagor found himself minus

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the property and still owing 4. Maceda Law: Sale of Residential Realty
practically the full amount of his on Installments
original indebtedness. (Asked in 77, 89, 99, 00)
Nonato vs. IAC (1985): Remedies are RA 6552: An Act To Provide Protection for
ALTERNATIVE, not cumulative, i.e. Buyers of Real Estate on Installment
exercise of one bars exercise of the Payments
others
DOES not apply to:
NOTE: “Unpaid Seller” (1525): a. Industrial lots
e. When the whole of the price has not b. Commercial buildings
been paid or tendered; c. Sale to tenants under Agricultural
f. When a bill of exchange or other Reform Code (RA 3844)
negotiable instrument has been received
as conditional payment, and the Imposes ADDITIONAL REQUIREMENTS
condition on which it was received has FOR A VALID RESCISSION:
been broken by reason of the dishonor a. If buyer has paid at least 2 years of
of the instrument, the insolvency of the installments: GRN
buyer, or otherwise.  Grace period: 1 month per year of
_________ installment payments made. BUT
buyer may only avail of it only once
B. In the Sale of Immovables in every 5 years 294
 Refund of Cash Surrender Value
SALES
1. Rescission for Anticipatory Breach (CSV): 50% of total amount paid +
st
(1591) 5% for every year after the 1 5
a. Available when seller has reasonable years of installments
grounds to fear the loss of the  BUT not greater than 90% of
immovable property sold and its price total amount paid
b. Example: Buyer destroys the building  Notice of cancellation of demand for
sold, there being no security therefor, rescission by notarial act, effective
and buyer becomes insolvent 30 days from the buyer’s receipt
c. Court has no discretion to compel the thereof and upon full payment of
seller to wait for the expiration of the CSV
period to pay, or to grant the buyer more
time to pay b. If buyer has paid less than 2 years: GN
 Grace period: at least 60 days
2. Specific Performance + Damages (1191)  Notice of cancellation or demand for
a. Seller may choose between specific rescission by notarial act, effective
performance and rescission, with 30 days upon receipt thereof
damages in either case
b. Court has discretion, for a just cause, to c. Down payments, deposits, or options on
give the buyer more time to pay even if the contract shall be included in the total
the seller chooses rescission number of installments made
3. Rescission + Damages (1191) d. Seller may go to court for judicial

a. If seller chose specific performance, and rescission in lieu of a notarial act of
such becomes impossible, he may still rescission
avail of rescission
b. If absolute sale, seller must make a e. During the grace period, buyer shall
demand for rescission have the right:
 Judicially, OR  To sell or assign his rights, to be
 By a notarial act evidenced in a notarial instrument
c. Necessary even if automatic rescission  To update his account
is stipulated  To pay in advance any installment,
d. Effect of lack of demand: Buyer can still or the full unpaid balance of the
pay price, without any interest
e. Effect of demand: Court may not grant
buyer a new term

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III. Remedies of the Buyer deficiency from goods of the same kind and quality,
UNLESS a contrary intent appears.
 General rule: Courts will refuse to decree

Real Estate (1539-1543)—
specific performance with respect to
1. If at the rate of a certain price per unit of
chattels, because damages are a sufficient
measure or number:
remedy
 Exception: Buyer is entitled to the specific Less (in area or quality) than More
thing which to him has special value and what was agreed upon:
which he cannot readily obtain in the market Proportional reduction of price Reject the excess
OR where damages would not furnish a OR OR
complete and adequate remedy (Baviera) Rescission, if: Accept the whole
_________  Lack in area is at least 1/10 and pay at contract
of what is stated, or inferior rate
A. Remedy for breach of obligation to value of thing sold exceeds
preserve 1/10 of price
 Buyer would not have
bought the property has he
If thing is lost— been aware of the inferior
1. Without fault of seller: No breach; Obligation quality or smaller area
is extinguished
2. Through fault of seller (or through fortuitous
event, if seller is liable): Damages [NOTE: Also applies to judicial sales (1541)] 295
A thing is lost when it—
SALES
2. If for a lump sum:
1. Perishes
2. Goes out of commerce Everything is within Not everything is
3. Disappears in such a way that its existence boundaries, even if less or within boundaries
is unknown or it cannot be recovered more than stated area
No remedy Proportional
If thing deteriorates— Rudolf Lietz, Inc. v. CA, reduction in price
(2005): Where both the area OR
Without fault of seller Through fault of seller and the boundaries of the Rescission
immovable are declared, the
No breach Rescission + damages
area covered within the
 Impairment shall be Or
boundaries of the immovable
borne by buyer Specific performance +
prevails over the stated area.
damages
_________
Prescriptive period: 6 months, counted from
B. Remedy for breach of obligation to
date of delivery
deliver
_________
Delivery of wrong quantity (1522)—
C. Remedy for breach of warranty
Goods are less than what More
was contracted
Express Warranty—
Reject the goods Reject the excess (Or 1. Prescriptive period: Period specified in
OR the whole, if express warranty OR 4 years, if no period is
Accept and pay indivisible) specified (following the general rule on
 At contract rate if buyer OR rescission of contracts)
accepts knowing that seller Accept the whole and 2. Remedies:
won’t perform in full pay at contract rate a. Accept goods + demand
 At fair value: If goods were diminution/extinction of price
used before knowing that b. Accept goods + damages
seller won’t be able to
c. Refuse to accept goods + damages
perform in full
d. Rescind (Refuse to accept or return or
offer to return) + recover price paid
Art. 1464. Civil Code. In the sale of an undivided
share of a specific mass of fungible goods, if the
3. Rescission not available when buyer:
mass contains less than the number, weight, or a. Knew of breach of warranty when he
measure bought, the buyer becomes the owner of the accepted the goods without protest
whole mass and the seller is bound to make good the

lOMoARcPSD|3291925
b. Fails to notify the seller about election to c. If property sold for nonpayment of taxes
rescind within a reasonable period of due and not made known to the buyer
time before the sale: seller liable
c. Fails to return or offer to return the d. Judgment debtor also responsible for
goods to the seller in substantially a eviction in judicial sales, unless it is
good condition as they were when otherwise decreed in the judgment
delivered, unless deterioration was due
to breach of warranty 2. If there is waiver of warranty:
4. Measure of damages: Difference between a. Seller acted in bad faith: Waiver is void,
value of goods at time of delivery and the seller liable for eviction
value they would have had if they had b. Buyer made waiver without knowledge
answered to the warranty of risks of eviction: Seller liable only for
5. Effects of rescission: the value of thing sold at time of eviction
a. Buyer no longer liable for price c. Buyer made waiver with knowledge of
 Entitled to return of any part of price risks: Seller not liable, buyer assumed
paid, concurrently with or the consequences
immediately after an offer to return
the goods Implied warranty against encumbrances
b. If seller refuses to accept offer to return (1560)—
goods: buyer deemed bailee for seller 1. Rescission: Within 1 year from execution of
and has right of lien to secure payment deed of sale OR
of part of price paid 2. Damages: Within 1 year from execution of 296
deed of sale or discovery of the burden or
SALES
servitude
Implied warranty against eviction
(1555,1556)— Implied warranty against hidden defects
(1567-1571)—
TOTAL EVICTION PARTIAL EVICTION 1. If thing is not lost:
Enforce liability for Enforce liability (demand a. Withdraw from contract (accion
eviction VICED) redhibitoria) + damages
- Demand from seller: OR b. Demand a proportionate reduction of the
VICED Rescind price (accion quanti minoris) + damages
 Value of thing sold at  If he would not have
time of eviction bought the thing sold
 Income or fruits, if he without the part lost BUT 2. If thing is lost:
has been ordered to he must return the thing
deliver them to the without other Due to hidden Due to fortuitous event
party who won the encumbrances than fault or fault of buyer
eviction suit those which it had when  If seller aware of Demand:
 Costs of eviction suit he acquired it defect, buyer may - Price paid minus value of
and in a proper case, demand: thing when it was lost
suit against seller for - Return of price - Damages, if seller acted
warranty - Refund of in bad fait
 Expenses of the expenses of
contract, if buyer has contract
paid them - Damages
 Damages and
interests, and
ornamental  If seller not aware
expenses, IF sale of defect:
was made in bad Buyer may demand
faith price and expenses
BUT NOT damages
1. Rules:
Prescriptive period: 6 months from delivery
a. Buyer need not appeal from decision to
hold seller liable for eviction
b. When adverse possession commenced Implied warranty against redhibitory defects
before sale, but prescription period of animals—
completed after transfer: seller is not 1. Remedies
liable a. Withdraw from contract + damages
b. Demand a proportionate reduction of the
price + damages

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2. If sale is rescinded:
a. Buyer must return animal in condition in
which it was sold and delivered
b. Buyer shall be liable for injury due to his
negligence.
3. Prescriptive period: 40 days from delivery
Warranty in sale of consumer goods (RA

7394, Sec.68)—
If implied warranty accompanies express
warranty, both will be of equal duration.
EXPRESS WARRANTY IMPLIED WARRANTY

1. Demand repair within 1. Retain the goods
30 days and recover
 Extendible for damages
causes beyond the OR
control of the 2. Reject the goods,
warrantor cancel contract and
2. Demand refund of recover from seller
price minus amount so much of the
directly attributable to purchase price as
the use of the has been paid + 297
consumer prior to the damages
SALES
discovery of the non-
conformity

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VII. EXTINGUISHMENT of SALE
4. Co-owners of an immovable, if they sold

Chapter VII. Extinguishment of Sale their interests to the same person, may only
redeem their respective shares
I. IN GENERAL a. Vendee cannot be compelled to agree to
II. CONVENTIONAL REDEMPTION
a partial redemption
III. EQUITABLE MORTGAGE
IV. LEGAL REDEMPTION b. If the co-owners sold their interest to the
same person who previously bought the
share of a co-owner subject to a right of
redemption, then the latter may be
I. In General compelled to redeem the whole property
Generally, extinguished by the same causes as From whom to redeem—

all other obligations (Arts.1600 &1231) (P- 1. Vendee a retro
3 3
PLAN-C -R ) 2. His heirs, assigns or agents
1. Payment/performance 3. Subsequent purchaser of property, even if
2. Prescription the right to redeem was not mentioned in the
3. Loss of thing due subsequent contract; except if registered
4. Annulment land, where the right to redeem must be
a. Novation annotated in the title
5. Condonation/remission 4. If several heirs, then the right of redemption
6. Confusion/merger can be exercised against each heir for his
7. Compensation share of the property 298
8. Rescission
SALES
9. Resolutory condition fulfilled How exercised—
10. Redemption (Conventional or Legal) 1. Returning the ff. to the buyer: (PEN)
a. Price of the sale;
b. Expenses of the contract and other
II. Conventional Redemption legitimate payments made by reason of
the sale;
c. Necessary and useful expenses made
Definition—
on the thing sold
1. Vendor reserves the right to repurchase the
2. Complying with any other stipulation agreed
thing sold, with the obligation to comply with
upon, if any.
the provisions of Article 1616 and other
stipulations which may have been agreed
NOTE:
upon. (Art 1601,CC)
1. BPI Family Savings Bank, Inc. v. Veloso,
2. Available when the seller reserves the right
(2004): The general rule in redemption is
to repurchase the thing sold in the same
that it is not sufficient that a person offering
instrument of sale as one of the stipulations
to redeem manifests his desire to do so. The
of the contract (Villarica v CA, 1968)
statement of intention must be accompanied
by an actual and simultaneous tender of
Period (Asked in 77)—
payment for the full amount of the
General Rule: Follow period stipulated in
repurchase price.
contract, but should not exceed 10 years.
2. Paez v. Magno, (1949):Tender of payment
1. If no period stipulated, then it shall be four
is enough (i.e., consignation is not
years from the execution of the contract
necessary), if made on time, as a basis for
2. But vendor may still exercise the right to
action against the buyer to compel him to
repurchase within thirty days from the time
resell. But that tender does not in itself
final judgment was rendered in a civil action
relieve the buyer from his obligation to pay
on the basis that the contract was a true
the price when redemption is allowed by the
sale with right to repurchase
court.
By whom exercised—
Effect of redemption—
1. Vendor
1. The seller shall receive the thing free from
2. His heirs, assigns or agents
all charges or mortgages constituted by the
3. Creditor, if he has exhausted the property of
buyer BUT he shall respect leases executed
the vendor
by the buyer in good faith and in accordance
with local custom.
2. If there are growing fruits at the time of sale

lOMoARcPSD|3291925
and at the time of redemption: no the realty taxes having been paid by them, the
reimbursement or prorating if the buyer did contracts which purported to be pacto de retro
not pay indemnity at the time of sale transactions are presumed to be equitable
3. If there were no growing fruits at the time of mortgages, whether registered or not, there
sale, but some exist at the time of being no third parties involved.
redemption: fruits prorated (buyer entitled to
part corresponding to time he possessed the Legaspi v. Spouses Ong, (2005): A pactum
land in the last year, counted from the commissorium is a stipulation enabling the
anniversary of the date of sale) mortgagee to acquire ownership of the
mortgaged properties without need of
Effect of non-redemption— foreclosure proceedings which is a nullity being
Ownership is consolidated in the buyer BUT contrary to the provisions of Article 2088 of the
the consolidation shall not be recorded in Civil Code. The inclusion of such stipulation in
the Registry of property w/o a judicial order, the deed shows the intention to mortgage rather
after the vendor has been duly heard. than to sell.
Right to Redeem vs. Option to Purchase A pactum commissorium is contrary to the

(Villanueva)— nature of a true pacto de retro sale since
ownership of the property sold is immediately
Right to Redeem Option to Purchase transferred to the vendee a retro upon execution
Not a separate contract Generally a principal of the sale, subject only to the repurchase of a
but part of a main contract and may be vendor a retro within the stipulated period. 299
contract of sale, and created independent of
SALES
cannot exist unless another contract
reserved at the time of
Sale with right to Equitable mortgage
the perfection of the main
repurchase
contract of sale
Right to repurchase the When any of the
Does not need its Must have a
thing sold granted to cases in Art. 1602
separate consideration to consideration separate
the vendor in a arise
be valid and effective and distinct from the
separate instrument
purchase price to be valid
from the deed of sale
and effective (Arts. 1324
and 1479)
The maximum period for The period of the option Presumption that a contract is an equitable
the exercise of the right contract may be beyond mortgage arises when (5P-R)—
to repurchase cannot the 10-year period 1. Price unusually inadequate;
exceed 10 years 2. Possession retained by the seller as lessee
Requires in addition a May be exercised by or otherwise;
tender of payment of the notice of its exercise to 3. Period of redemption extended (or granted
amount required by law, the offeror anew) upon or after the expiration of the
including consignment
thereof if tender of
right to repurchase;
payment cannot be made 4. Part of the purchase price retained by the
effectively on the buyer seller;
5. Payment of taxes on the thing sold borne by
the seller;
6. Any other case where it may be fairly
III. Equitable Mortgage
inferred that the Real intention of the parties
(Asked in 79, 80, 82, 84, 86, 89, 91, 05) is for the transaction to secure a debt or
other obligation.
Definition—
Molina v. CA, (2003): An equitable mortgage is For the presumption of an equitable
defined as one which, although lacking in some mortgage to arise under Art. 1602, 2
formality, or form or words, or other requisites requisites must concur (Molina v. CA,
demanded by a statute, nevertheless reveals the 2003)—
intention of the parties to charge real property 1. That the parties entered into a contract
as security for a debt, and contains nothing denominated as a contract of sale, and
impossible or contrary to law. 2. That their intention was to secure an existing
debt by way of a mortgage.
Tan v. Valdehueza, (2003): The Valdehuezas
having remained in possession of the land and

lOMoARcPSD|3291925
In case of doubt, a contract purporting to be a Period to Redeem—

sale with right to repurchase shall be construed
as an equitable mortgage (Art. 1603) To whom granted Period
a. Co-owner (Art 1620) 30 days from notice
Rationale behind provision on equitable - In writing
mortgage— b. Adjoining owner of - By the seller
1. Circumvention of usury law Rural Land (Article - Of the actual execution
1621) and delivery of the deed
2. Circumvention of prohibition against pactum of sale
commissorium – creditor cannot appropriate c. Adjoining owner of
the things given by way of pledge or urban land (Art. 1622) Doromal v. CA: Actual
mortgage since remedy here is foreclosure. knowledge of the sale is
immaterial
Remedies of apparent vendor—
1. If the instrument does not reflect the true Conejero v. CA: the law
agreement, the remedy is reformation did not provide for a
2. If decreed to be an equitable mortgage, then particular mode of written
notice, thus any
any money, fruits or other benefit to be compliance with “written
received by the buyer as rent or otherwise notice” should suffice,
considered as interest. including the giving of a
3. If decreed as a true sale with right to copy of the deed of sale
purchase- seller may redeem w/in 30 days Debtor in case a 30 days from the date the
from finality of judgment, even if the period credit or assignee demands 300
for redemption has expired. incorporeal right in payment from debtor
SALES
litigation is sold
(Art.1634)
Applicant or his widow 5 yrs. from date of
IV. Legal Redemption or legal heirs in case of conveyance
sale of homestead
Definition— (Sec.119, Public
 Right to be subrogated: Land Act)
a. upon the same terms and conditions Taxpayer in case of tax 1 year from date of
sale (Sec. 215, forfeiture
stipulated in the contract, NIRC)
b. in the place of one who acquires a thing Judgment debtor, 1 year from the date of
by purchase or dation in payment, or by successor–in- interest, registration of the
any other transaction whereby or creditor with certificate of sale
ownership is transmitted by onerous title subsequent lien, in case
(Art 1619, CC) of execution sale
(Rule 39, Sec.27,
 Applies to transfers of ownership by onerous ROC)
title where subrogation is possible. Hence, it Debtor-mortgagor, 1 year from the date of
successors-in- interest, the sale
cannot apply to barter or to transfer by
judicial/judgment
gratuitous title or hereditary succession. creditor, any person
 Applies to sales with pacto de retro having a lien on the
(BAVIERA citing MANRESA) property, in case of
extrajudicial foreclosure
Manner— of mortgage (Act No.
1. a formal offer to redeem or 3135. Sec. 6. )
2. filing of an action in court together with the Debtor-mortgagor in 90 days from finality of
consignation of the redemption price within case of judicial judgment
the reglementary period foreclosure of real
estate mortgage IF the
mortgagee is a bank or
a banking institution.
(The
General Banking
Law of 2000)

lOMoARcPSD|3291925
Agricultural lessee w/o 2 years from the Order of preference if two or more wish to
knowledge of sale of registration of the sale exercise the right:
landholding a. Owner with smaller land area
(Agrarian Land b. If same land area, then the one who first
Reform Code,
requested the redemption
Sec.12)
Ortega v. Orcine, (1971): What constitutes
Instances of Legal Redemption—
“rural” or “urban” is to be determined from
1. Redemption by Co-owners (Art. 1621)
the character of the community or vicinity in
which it is found, and NOT from the nature
A co-owner of a thing may exercise the right
of the land itself nor the purpose to which it
of redemption in case the shares of all the
is devoted
co-owners or any of them are sold to a third
person
3. Redemption by adjoining land-owners of
a. Third person” refers to all persons who
urban land (applies only to small
are not heirs of the vendor, by will or
portions of urban land) (Art. 1621)
intestate succession
b. The right is available not only to original
Right of Pre-emption Right of Redemption
co-owners, but to those who had later
Owner of any adjoining If the resale has been
acquired the share of the co-owner land has a right of pre- perfected, the owner of
c. But the right of redemption may be emption at a reasonable the adjoining land shall
exercised by a co-owner only when part price when: have a right of 301
of the community property is sold to a -Urban land is so small redemption, also at a
SALES
stranger. When the portion is sold to and so situated that a reasonable price
another co-owner, the right does not major portion of it cannot
arise because a new participant is not be used for any practical Priority if 2 or more
added to the co-ownership (Fernandez purpose w/in a adjoining owners want to
reasonable time; redeem: owner whose
v. Taun)
-Was bought merely for intended use of the land
speculation; appears to be best
If the price of the alienation is grossly -Was resold justified
excessive, the redemptioner shall pay only a
Arises before sale Arises after sale
reasonable one
No rescission because There can be rescission
no sale exists yet of the original sale
Should two or more co-owners desire to The action is directed Action is directed against
exercise the right, they may also do so in against prospective buyer
proportion to the share they may seller
respectively have in the thing owned in
common
4. Redemption of Credit
Rationale: Public Policy, since co-
ownership is a hindrance to the Available when it is sold while in litigation
development and administration of the (From the time the complaint is answered)
property (BAVIERA)
NOT available when the assignment in favor
2. Redemption by Adjoining Land-owners of:
of rural land (Art. 1621) a. Co-heir/co-owner of right assigned
b. Creditor in payment of his credit
The ff. Requisites must concur: c. Possessor of a tenement or piece of
a. A piece of rural land is alienated land which is subject to the right
b. Area does not exceed one hectare assigned
When not applicable: How exercised: reimburse the assignee for

a. The grantee does not own any rural land the:
b. Adjacent lands are separated by brooks, a. Price paid
drains, roads and other apparent b. Judicial expenses incurred
servitudes for the benefit of other c. Interest on the price from date of
estates payment

lOMoARcPSD|3291925
5. Under the Public Land Act the sale up to the time of

redemption
Coverage: -Any assessment or
a. Every conveyance of land acquired taxes which the
purchaser may have
under a free patent or homestead
paid
b. The ownership of the land must have
been transferred to another. If the
7. Under the Agrarian Land Reform Code
transaction is a mere promise to sell,
Lessees right of pre-emption
there is no right yet to redeem
a. The agricultural lessee shall have the
c. This refers to conveyances made after
preferential right to buy under the same
the prohibited 5 years from the issuance
reasonable terms and conditions, in
of the patent or grant
case the lessor decides to hold the
landholding
Period:
b. Conditions:
a. Within 5 years from the date of
 The landholding must be pre-
conveyance
empted by the DAR
b. If pacto de retro sale, the period to
 When two or more lessees, each
redeem cannot be less than 5 years
shall have preferential right only to
the extent of the area cultivated by
Who may redeem:
him
a. Gen Rule: Applicant, widow, or heirs
c. Period: 180 days from notice in writing
b. Exception: land is sold to another 302
member of the family of the applicant, or
Lessees right of redemption
SALES
his direct descendant or heir
a. Sec. 12 RA 3844: In case landholding is
c. From whom: Subsequent purchasers rd
sold to 3 person without the knowledge
of the lessee, the latter shall have the
right to redeem the same at a
6. Redemption in Foreclosure and
reasonable price and consideration
Execution Sales
b. Period: within 180 days from notice in
writing
Who may redeem In extra judicial
foreclosure
-Debtor
-Successor in interest
-Judicial or judgment
creditor of said debtor
-Junior encumbrancer
In execution sales
-Judgment debtor
-Successor in interest
-Creditor having a lien
on the property sold by
attachment, judgment or
mortgage on the
property subsequent to
the judgment
Period to redeem Extra judicial foreclosure
- within 1 year from the
date of the sale
Execution sale
- within 12 months after
the sale
If land is mortgaged in
favor of a bank
- within 1 year after the
sale (not available in
case of a corporate
mortgagor)
Amount of redemption -Amount of the purchase
-Interest at 1% per
month from the time of

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VIII. PHILIPPINE BULK SALES LAW
Chapter VIII. Philippine Bulk Sales Law III. Duty of Seller

(Act 3952)
1. Sworn statement of list of creditors
I. PURPOSE  Contents:
II. COVERAGE o Names + addresses of all
III. DUTY OF SELLER creditors
IV. EFFECT OF NON-COMPLIANCE o Amount of indebtedness due or
owing
 When delivered: Before any part of
I. Purpose the purchase price is received, or
any promissory note or evidence of
indebtedness therefor
Purpose (Villanueva)—
 To compel the seller in bulk to execute  Delivered to:
and deliver a verified list of his creditors o Buyer, mortgagee or agent
to his buyer, and notice of intended sale o If corporation: president, vice-
to be sent in advance to said creditors president, treasurer or secretary
and to use the proceeds to cover o If partnership firm: a member
payment of outstanding liabilities thereof
 To protect creditor of merchant stores
2. Pro-rata application of the purchase or
The Law is constitutional as a valid exercise of mortgage money to the payment of 303
police power of the State. (Liwanag v. listed creditors
SALES
Menghraj, (1941))
3. Inventory of the goods, wares,
merchandise, provisions or materials
 When made: at least 10 days before
II. Coverage sale or mortgage
 Contents:
The Law covers all transactions, whether done  Quantity
in good faith or not, that fall within the
 Cost price of each article (as far as
description of what is “bulk sale” (Villanueva)
possible)
Transactions Covered—
4. Notice to listed creditors
Applies to sales and transfers in bulk,
 When made: at least 10 days before
including any sale, transfer, mortgage or
transfer of possession
assignment of:
1. A stock of goods, wares, merchandise,  How: personally or by registered
provisions or materials NOT in the ordinary mail
course of trade and the regular prosecution  Contents: Price, terms and
of the business of the seller, transferor, conditions of sale, transfer,
mortgagor, or assignor mortgage or assignment
2. All, or substantially all, of the business or
trade theretofore conducted by the seller, 5. Consideration for the sale, transfer,
transferor, mortgagor, or assignor mortgage or assignment
3. All, or substantially all, of the fixtures and  Must not be nominal
equipment used in and about the business
of the seller, transferor, mortgagor, or
assignor
When not applicable—

1. Written waiver by vendor, transferor,
mortgagor or assignor, as shown by verified
statements
2. To executors, administrators, receivers,
assignees in insolvency, or public officers,
acting under judicial process.

lOMoARcPSD|3291925
IV. Effect of non-compliance
On Transaction Itself—
If the purchase or mortgage money is not
applied pro-rata to the bona fide claims of listed
creditors: Sale, transfer or mortgage shall be
FRAUDULENT and VOID.
On Seller, Mortgagor, Transferor or

Assignor—
Violation Sanction
Failure to comply with criminal liability
the obligation to
prepare and deliver the Section 7: Transfer by any
sworn statement listing person, firm or corporation
his creditors and the “as owner of any stock of
application pro-rata of goods, wares,
the proceeds to the merchandise, provisions
creditors. (Sec 4) or materials, in bulk” of
title to the same without
consideration or for a
nominal consideration
only, subjects him to 304
criminal liability
SALES
On Buyer, Mortgagee, Transferee or
Assignee—
The Law imposes no direct obligation, thus a
buyer in bulk sale cannot be deemed to be
subject to the criminal liability under the Law
[NOTE: Criminal liability: 6 months to 5 years

imprisonment, or fine of P5K or less, or both.]
- end of Sales -

lOMoARcPSD|3291925

lOMoARcPSD|3291925
CREDIT TRANSACTIONS
Table of Contents
Chapter I. General Principles ......................307 Chapter VIII. Concurrence and Preference of

I. Types of Credit Transactions ............307 Credits........................................................... 338
II. Security .............................................307 I. General Provisions............................ 338
III. Bailment ............................................307 II. Classification of Credits .................... 338
III. Preference of Credits ........................ 338
Chapter II. Loan (Arts. 1933-1961, CC).......309
I. Definition ...........................................309
II. Characteristics of a Loan ..................309
III. Kinds of Loan: In General .................309
IV. Commodatum....................................309
V. Obligations of the Bailee in
Commodatum ............................................310
VI. Obligations of the Bailor in
Commodatum ............................................311
VII. Mutuum or Simple Loan................311
VIII. Interests ........................................312
IX. The Usury Law ..................................312
Chapter III. Deposit ......................................314

I. Definition ...........................................314 306
II. Kinds of Deposit ................................314
CREDIT TRANSACTIONS
III. Characteristics of Deposit .................314
IV. Deposit Distinguished From Mutuum
and Commodatum .....................................314
V. Obligations of the Depositary............314
VI. Obligations of the Depositor..............317
VII. Extinguishment of Deposit (Art. 1995)
317
VIII. Necessary Deposit........................317
IX. Judicial Deposit .................................318
Chapter IV. Guaranty ...................................319

I. Definition ...........................................319
II. Characteristics ..................................319
III. Classification .....................................319
IV. Rules Governing Guaranty ...............319
V. Guaranty Distinguished from Others.322
VI. The Guarantor (Arts. 2056-2057)......322
VII. Effects of Guaranty .......................322
VIII. Extinguishment of Guaranty .........325
Chapter V. Legal and Judicial Bonds.........326
Chapter VI. Suretyship.................................327
Chapter VII. Pledge, Mortgage, Antichresis

.......................................................................328
I. Essential Requisites Common to Pledge
and Mortgage (Art. 2085)...........................328
II. Pledge ...............................................329
III. Mortgage ...........................................332
IV. Foreclosure of Mortgage (Art. 2085).334
V. Antichresis.........................................336
VI. Chattel Mortgage...............................336

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. GENERAL PRINCIPLES
Chapter I. General Principles

CREDIT TRANSACTIONS TEAM
CREDIT TRANSACTIONS
Prof. Roberto N. Dio I. TYPES OF CREDIT TRANSACTIONS
Faculty Editor
II. SECURITY
Katrina Elena Guerrero III. BAILMENT
Lead Writer
Diana Gervacio CREDIT TRANSACTIONS - include all
Patricia Andrea Hernandez transactions involving the purchase or loan of
Mark Luciano
Ixara Maroto
goods, services or money in the present with a
Writers promise to pay or deliver in the future (contract
of security)
CIVIL LAW
Kristine Bongcaron I. Types of Credit Transactions
Patricia Tobias
Subject Editors
Secured transactions or contracts of real
ACADEMICS COMMITTEE security – Those supported by collateral or an
Kristine Bongcaron encumbrance of property
Michelle Dy
Patrich Leccio Unsecured transactions or contracts of
Editors-in-Chief personal security – Those the fulfillment of
PRINTING & DISTRIBUTION which by the principal debtor is secured or
supported only by a promise to pay or the
Kae Guerrero personal commitment of another such as a
DESIGN & LAYOUT guarantor or surety
307
Pat Hernandez
CREDIT TRANSACTIONS
Viktor Fontanilla
Rusell Aragones II. Security
Romualdo Menzon Jr.
Rania Joya SECURITY - something given, deposited or
LECTURES COMMITTEE serving as a means to ensure the fulfillment or
enforcement of an obligation or of protecting
Michelle Arias some interest in property.
Camille Maranan
Angela Sandalo
Heads 2 TYPES OF SECURITY
1. Personal Security – as when an individual
Sam Nuñez Krizel Malabanan becomes a surety or a guarantor
Arianne Cerezo Marcrese Banaag 2. Real Security - as when a mortgage,
Volunteers pledge, antichresis, charge or lien or other
device used to have property held, out of
MOCK BAR COMMITTEE which the person to be made secure can be
Lilibeth Perez compensated for loss. Thus, a secured
creditor is one who holds a security from his
BAR CANDIDATES WELFARE debtor for payment of the latter’s debts.
Dahlia Salamat
LOGISTICS
III. Bailment
Charisse Mendoza
SECRETARIAT COMMITTEE BAILMENT - the delivery of property of one

person to another in trust for a specific purpose,
Jill Hernandez with a contract, express or implied, that the trust
Head
shall be faithfully executed and the property
Loraine Mendoza Faye Celso returned or duly accounted for when the special
Mary Mendoza Joie Bajo purpose is accomplished or kept until the bailor
Members
reclaims it.
[NOTE: The word “bailment” comes from the

French word “bailer,” meaning “to deliver”]

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. GENERAL PRINCIPLES
PARTIES IN BAILMENT
1. Bailor – the giver, the party who delivers
possession/custody of the thing bailed
2. Bailee – the recipient, the party who
receives the possession/custody of the thing
delivered
KINDS OF CONTRACTUAL BAILMENT

(With Reference to Compensation)
1. Those for the sole benefit of the bailor,
e.g. gratuitous deposit (Art.1965) and
mandatum, i.e., where the mandatory or
person to whom the property is delivered
undertakes to do some act with respect to
the same
2. Those for the sole benefit of the bailee,
e.g. commodatum and gratuitous simple
loan or mutuum (Art.1933)
3. Those for the benefit of both parties, e.g.
deposit for a compensation, involuntary
deposit, pledge and bailments for hire
a. Hire of things – for the temporary use
of the hirer (i.e. lease, Arts.1642-1643)
b. Hire of service – for work or labor upon 308
the goods delivered (i.e. contract for
CREDIT TRANSACTIONS
piece of work, Art.1713)
c. Hire for carriage of goods – for goods
delivered to be carried from place to
place by a common carrier (Art.1732) or
private person
d. Hire of custody – for storage of goods
delivered (Arts.1507-1520, Warehouse
Receipts Law)
Contract where one of the parties (Seller)

obligates himself to:
 Transfer ownership of and
 to deliver a determinate thing;
and the other (Buyer) to pay a price certain in
money or its equivalent.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. LOAN
Borrower must return Borrower need only

Chapter II. Loan (Arts. 1933-1961, CC) the same thing loaned pay the same amount
(Art.1933) of the same kind and
I. DEFINITION quality
II. CHARACTERISTICS OF A LOAN May involve real or Refers only to personal
III. KINDS OF LOAN: IN GENERAL personal property property
IV. COMMODATUM (Art.1937)
V. OBLIGATIONS OF THE BAILEE IN Loan for use or Loan for consumption
COMMODATUM temporary possession
VI. OBLIGATIONS OF THE THE BAILOR IN (Art.1935)
COMMODATUM Bailor may demand the Lender may not
VII. MUTUUM OR SIMPLE LOAN return of the thing demand its return
VIII. INTERESTS loaned before the before the lapse of the
IX. THE USURY LAW expiration of the term term agreed upon
in case of urgent need
(Art.1946)
Bailor suffers the loss Borrower suffers the
I. Definition of the subject matter loss even if caused
since he is the owner exclusively by a
LOAN - a contract by which one of the parties (Art.1942; Art.1174) fortuitous event and he
delivers to another, either something not is not, therefore,
consumable so that the latter may use the same discharged from his
duty to pay
for a certain time and return it, in which case the
Not purely personal in Purely personal in
contract is called commodatum; or money or
character character
other consumable thing, upon the condition that
the same amount of the same kind and quality A thing is consumable when it is used in a
shall be paid, in which case the contract is 309
manner appropriate to its purpose or nature.
simply called a loan or mutuum. (Art.1933)
CREDIT TRANSACTIONS
(Art 418)
GENERAL RULE: If the subject of the contract

II. Characteristics of a Loan is a consumable thing, such as money, the
contract would be a mutuum.
Real contract
1. delivery is essential for perfection of the EXCEPTION: Consumable goods may be the
contract of loan. subject of commodatum if the purpose of the
2. An accepted promise to loan, is contract is not the consumption of the object, as
nevertheless binding on the parties, it being when it is merely for exhibition. (Art.1936)
a consensual contract. [Producer’s v. CA, 397 SCRA 651]
Unilateral contract
1. creates obligations on only one party, i.e., IV. Commodatum
the borrower
2. In a contract of loan, the cause is, as to the 2 KINDS OF COMMODATUM
borrower, the acquisition of the thing, and as 1. Ordinary commodatum - See Art.1933
to the lender, the right to demand its return 2. Precarium – one whereby the bailor may
or its equivalent. (Monte de Piedad v. Javier)
demand the thing loaned at will; exists in
cases where:
III. Kinds of Loan: In General a. neither the duration of the contract nor
the use to which the thing loaned should
Commodatum Mutuum be devoted has been stipulated
Ordinarily involves Involves money or b. if the use of the thing is merely tolerated
something not other consumable thing by the owner (Art 1947)
consumable*
(Art.1936) GENERAL RULE: In a commodatum, the right
to use is limited to the thing loaned, and not to
Ownership of the thing Ownership is
its fruits
loaned is retained by transferred to the
lender (Art.1933) borrower
Essentially gratuitous Maybe gratuitous or it EXCEPTION: When there is stipulation to the
(Art.1933) maybe onerous, i.e. contrary (Art.1940). In cases where there is
with stipulated interest such a stipulation, enjoyment of the fruits must

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be incidental to the use of the thing itself. 6. Solidary obligation where there are 2 or
Otherwise, if the use of the fruits is the main more bailees to whom a thing was loaned in
cause, the contract may be one of usufruct. the same contract (Art.1945)
(Art.562) _______
What is the effect of an accepted promise to GENERAL RULE: Bailee is not liable for loss or
deliver by way of commodatum or mutuum? damage due to a fortuitous event (Art.1174),
It is binding upon the parties, but the since the bailor retains ownership of the thing
contract of loan shall not be perfected until
delivery of the contract. (Art.1934) EXCEPTION: Bailee is liable even for loss due
to a fortuitous event when: (Art 1942)
Who may be bailor in commodatum? 1. He devotes the thing to any purpose
1. Anyone. The bailor in commodatum need different from that for which it was loaned
not be the owner of the thing loaned. 2. He keeps it longer than the period
(Art.1938) stipulated, or after the accomplishment of
2. But the bailee himself may not lend nor the use for which the commodatum has
lease the thing loaned to him to a third been constituted
person (Art 1939(2)) 3. The thing loaned has been delivered with
_______ appraisal of its value, unless there is
stipulation exempting the bailee from
GENERAL RULE: Commodatum is purely responsibility in case of a fortuitous event
personal in character (Art.1939) such that: 4. He lends or leases the thing to a third
1. Death of either party extinguishes the person who is a not a member of his
contract household
2. Bailee can neither lend nor lease the thing 5. Being able to save either the thing borrowed 310
lent to him to a third person or his own thing, he chose to save the latter.
CREDIT TRANSACTIONS
_______
EXCEPTION: Members of the bailee’s
household may make use of the thing loaned GENERAL RULE: Bailee is liable for
deterioration of thing loaned.
EXCEPTION TO EXCEPTION: Bailee’s EXCEPTION: The deterioration of the thing is

household may NOT use it when: due only to the use thereof and without his fault
1. There is stipulation to the contrary, or (Art.1943)
2. The nature of the thing forbids such use _______
GENERAL RULE: Bailee has no right of

V. Obligations of the Bailee in retention of the thing loaned, on the ground that
Commodatum the bailor owes him something.
EXCEPTION: Bailee has a right of retention for

OBLIGATIONS OF THE BAILEE damages for known hidden flaws mentioned in
1. Obligation to pay for the ordinary expenses Art 1951. (Art.1944)
for the use and preservation of the thing
loaned (Art.1941) REQUISITES FOR THE APPLICATION OF
2. Obligation to take good care of the thing with ART.1951
the diligence of a good father of a family 1. There is a flaw or defect in the thing loaned
(Art.1163) 2. The flaw or defect is hidden
3. Liability for loss, even if loss through 3. The bailor is aware thereof
fortuitous event, in certain circumstances 4. He does not advise the bailee of the same
(Art.1942) 5. The bailee suffers damages by reason of
4. Liability for deterioration of thing loaned, said flaw or defect
except under certain circumstances
(Art.1943)
5. Obligation to return the thing upon expiration
of term or upon demand in case of urgent
need

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VI. Obligations of the Bailor in VII. Mutuum or Simple Loan

Commodatum
A mutuum or simple loan is a contract by
1. To allow the bailee the use of the thing which a person (creditor) delivers to another
loaned for the duration of period stipulated (debtor) money or other consumable thing with
or until the accomplishment of the purpose the understanding that the same amount of the
for which commodatum was constituted. same kind and quality shall be paid. (Art.1953)
EXCEPTIONS: MUTUUM AND LEASE DISTINGUISED

a. Urgent need during which time the
commodatum is suspended (Art.1946) MUTUUM LEASE
b. Precarium (Art.1947) Object is money or any Object may be any
 If duration of the contract has not consumable (fungible) thing, whether movable
been stipulated thing or immovable, fungible
or non-fungible
 If use or purpose of the thing has
Thing loaned becomes Owner does not lose
not been stipulated property of debtor his right of ownership
 If use of thing is merely tolerated by Relationship created is Relationship created is
the bailor that of creditor and that of landlord and
c. Bailee commits an act of ingratitude debtor tenant or lessor and
specified in Art. 765 (Art.1948): lessee (Tolentino v.
 Commission of offenses against the Gonzales, 50 Phil 558)
person, the honor, or the property of
the bailor, or of his wife or children MUTUUM AND COMMODATUM
under his parental authority DISTINGUISHED FROM BARTER
 Imputing to the bailor any criminal 1. In mutuum, subject matter is money or any 311
offense, or any act involving moral other fungible things; in barter, non-fungible
CREDIT TRANSACTIONS
turpitude, even though he should (non-consumable) things.
prove it, unless the crime or the act 2. In commodatum, the bailee is bound to
has been committed against the return the identical thing borrowed when the
bailee himself, his wife, or children time has expired or the purpose has been
under his authority served. In barter, the equivalent thing is
 Undue refusal to give the bailor given in return for what has been received.
support when the bailee is legally or 3. Mutuum may be gratuitous and
morally bound to commodatum is always gratuitous. Barter
on the other hand is an onerous contract. It
[NOTE: Article 765 is applicable, because is really a mutual sale.
like donation, commodatum is essentially
gratuitous. (Art.1933, par.2)] [NOTE: BARTER – contract where by one of the
parties binds himself to give one thing in
2. To refund extraordinary expenses for the consideration of the other’s promise to give
preservation of the thing loaned provided another thing. (Art.1968)]
bailor is notified before the expenses were
incurred. (Art.1949) CONSUMABLE AND FUNGIBLE
 EXCEPTION: Urgent need hence no DISTINGUISHED
notice is necessary.  Whether a thing is consumable or not
depends on its nature and whether it is
3. To refund 50% of the extraordinary fungible or not depends on the intention of
expenses arising from actual use of bailee of the parties.
the thing loaned (Art.1949)  Example: Wine is consumable by nature, but
 EXCEPTION: Contrary stipulation it may be non-fungible if the intention is
merely for display or exhibition.
4. To pay damages to bailee for known hidden
flaws in the thing loaned. [NOTE: Fixed, savings, and current deposits of
money in banks and similar institutions shall be
[NOTE: Bailor has no right of abandonment; governed by the provisions concerning simple
he cannot exempt himself from payment of loan. (Art.1980)]
expenses to bailee by abandoning the thing to
the latter. (art. 1952)]

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VIII. Interests from the time it is judicially demanded. In

the absence of stipulation, the rate of
interest shall be 12% per annum to be
INTEREST – is the compensation allowed by
computed from default, i.e., from judicial or
law or fixed by the parties for the loan or
extrajudicial demand under and subject to
forbearance of money, goods or credits
the provisions of Art.1169.
KINDS OF INTEREST
2. When an obligation, not constituting a
1. Simple interest – Paid for the principal at a
loan or forbearance of money, is
certain rate fixed or stipulated by the parties.
breached, an interest on the amount of
2. Compound Interest – that which is
damages awarded may be imposed at the
imposed upon interest due and unpaid.
discretion of the court at the rate of 6% per
3. Legal Interest – that which the law directs
annum. No interest, however, shall be
to be charged in the absence of any
adjudged on unliquidated claims or
agreement as to the rate between the
damages except when or until the demand
parties.
can be established with reasonable
4. Lawful Interest – that which the laws allow
certainty. Accordingly, where the demand is
or do not prohibit
established with reasonable certainty, the
5. Unlawful or Usurious Interest – paid or
interest shall begin to run from the time the
stipulated to be paid beyond the maximum
claim is made judicially or extrajudicially (Art.
fixed by law. However, by virtue of CB
1169) but when such certainty cannot be so
Circular 905, usury has become “legally
reasonably established at the time the
inexistent.”
demand is made, the interest shall begin to
run only from the date the judgment of the
When is compound interest allowed?
1. When there is an express written stipulation
court is made (at which time the 312
quantification of damages may be deemed
to that effect (Art.1959)
CREDIT TRANSACTIONS
to have been reasonably ascertained). The
2. Upon judicial demand. HOWEVER, debtor
actual base for the computation of legal
is not liable to pay compound interest even
interest shall, in any case, be on the amount
after judicial demand when there is no
finally adjudged.
stipulation for payment of interest. (Art.2212)
3. When the judgment of the court awarding a
REQUISITES FOR INTEREST TO BE
sum of money becomes final and executory,
CHARGEABLE
the rate of legal interest, whether the case
1. Must be expressly stipulated
falls under paragraph 1 or paragraph 2,
2. Agreement must be in writing (Art.1956)
above, shall be 12% per annum from such
3. Must be lawful
finality until its satisfaction, this interim
period being deemed to be by then an
EXCEPTIONS TO REQUISITE OF EXPRESS
equivalent to a forbearance of credit.
STIPULATION
1. The debtor in delay is liable to pay legal
interest (6% or 12%) as indemnity for IX. The Usury Law
damages (Art.2209)
2. Interest accruing from unpaid interest – THE USURY LAW (Act No.2566) is an act fixing
Interest demanded shall earn interest from rates of interests upon loans and declaring the
the time it is judicially demanded (Art.2212) effect of receiving or taking usurious rates and
or where there is an express stipulation for other purposes. (Arevalo v. Dimayuga 49
(Art.1959) Phil 894)
RULES FOR AWARD OF INTEREST IN THE CB Circular No. 905 – abolished interest rate
CONCEPT OF ACTUAL & COMPENSATORY ceilings. Conversely, with the promulgation of
DAMAGES (Eastern Shipping Lines v. CA, 234 such circular, usury has become “legally
SCRA 78) inexistent” as the parties can now legally agree
1. When obligation is breached consists in on any interest that may be charged on the loan.
the payment of a sum of money, i.e., a
loan or forbearance of money, the interest ELEMENTS OF USURY
due should be that which may have been 1. A loan or forbearance of money
stipulated in writing. Furthermore, the 2. An understanding between parties that the
interest due shall itself earn legal interest loan shall and may be returned

lOMoARcPSD|3291925
3. An unlawful intent to take more than the

legal rate for the use of money or its
equivalent
4. The taking or agreeing to take for the use of
the loan of something in excess of what is
allowed by law
MACALINAO v BPI (Sept 2009):
Regarding the credit card interest rate, “We
are of the opinion that the interest rate and
penalty charge of 3 percent per month
should be equitably reduced to 2 percent
per month or 24 percent per annum… we
had affirmed in a plethora of cases that
stipulated interest rates of 3 percent per
month and higher are excessive, iniquitous,
unconscionable and exorbitant. Such
stipulations are void for being contrary to
morals, if not against the law. While the
Bangko Sentral ng Pilipinas C.B. Circular
No. 905-82 dated Jan. 1, 1983 effectively
removed the ceiling on interest rates for both
secured and unsecured loans, regardless of
maturity, nothing in the said circular could
possibly be read as granting carte blanche
authority to lenders to raise interest rates to 313
levels which would either enslave their
CREDIT TRANSACTIONS
borrowers or lead to a hemorrhaging of their
assets.”
[NOTE: The case of Chua vs. Timan involving

promissory notes NOT credit cards transactions,
which stated that the said 3% interest per month
is unconscionable, was cited in this case.]

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CIVIL LAW REVIEWER Chapter III. DEPOSIT
Contract of deposit is generally gratuitous.

Chapter III. Deposit (Art.1965), subject to the following exceptions:
1. There is a contrary stipulation
I. DEFINITION 2. Depository is in the business of storing
II. KINDS OF DEPOSIT goods
III. CHARACTERISTICS OF DEPOSIT
3. Property saved from destruction during
IV. DEPOSIT DISTINGUISHED FROM MUTUUM
AND COMMODATUM calamity without owner’s knowledge; just
V. OBLIGATIONS OF THE DEPOSITARY compensation should be given the
VI. OBLIGATIONS OF THE DEPOSITOR depository. (Art.1996[2] and Art.1997, par.2)
VII. EXTINGUISHMENT OF DEPOSIT
VIII. NECESSARY DEPOSIT Only movable things may be the object of a
IX. JUDICIAL DEPOSIT deposit (Art.1966) if the deposit is either
voluntary (Art.1968) or necessary (Art.1995).
I. Definition HOWEVER, a judicial deposit may cover
movable as well as immovable property, its
purpose being to protect the rights of parties to
DEPOSIT is constituted from the moment a
the suit.
person receives a thing belonging to another,
with the obligation of safely keeping it and of
returning the same. If the safekeeping of the IV. Deposit Distinguished From Mutuum
thing delivered is not the principal purpose of the and Commodatum
contract, there is no deposit but some other
contract. (Art.1962) DEPOSIT AND MUTUUMDISTINGUISHED
II. Kinds of Deposit DEPOSIT MUTUUM

314
Principal purpose is Principal purpose is
safekeeping consumption of the
CREDIT TRANSACTIONS
Judicial – takes place when an attachment or subject matter
seizure of property in litigation is ordered Depositor can demand Lender must wait until
(Arts.2005-2008) return of subject matter expiration of the period
at will granted to the debtor
Extrajudicial (Art. 1967) Both movable and Only money or any
1. Voluntary- delivery is made by the will of immovable may be the other fungible thing
the depositor or by two or more persons object may be the object
each of whom believes himself entitled to
the thing deposited; DEPOSIT AND COMMODATUM
2. Necessary- made in compliance with a legal DISTINGUISHED
obligation, or on the occasion of any
calamity, or by travelers in hotels and inns DEPOSIT COMMODATUM
(Arts.1996-2004) or by travelers with Principal purpose is Principal purpose is
common carriers (Arts.1734-1735) safekeeping transfer of use
May be gratuitous Always and essentially
gratuitous
III. Characteristics of Deposit In extrajudicial deposit, Both movable and
only movable immovable may be the
Characteristics— (corporeal) things may object.
1. Real Contract because it is perfected by the be the object. But for
judicial deposits, object
delivery of the subject matter. may be movable or
2. Principal purpose of the contract of deposit immovable.
is the safekeeping of the thing delivered.
3. If gratuitous, it is unilateral because only the
depository has an obligation. If onerous, it is V. Obligations of the Depositary
bilateral.
OBLIGATIONS
The principal purpose is safekeeping of the 1. Depositary is obliged to keep the thing
thing delivered, so that if it is only an accessory safely and to return it when required, even
or secondary obligation, deposit is not though a specified term may have been
constituted but some other contract. stipulated in the contract. (Art.1972)
2. Depositary is liable if the loss occurs

through his fault or negligence. (Art.1972

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in rel. to Art.1163) Loss of thing while in the EFFECT OF COMMINGLING:

depositary’s possession raises a a. The various depositors of the mingled
presumption of fault. (Art.1265) Required goods shall own the entire mass in
degree of care is greater if the deposit is for common
compensation than when it is gratuitous. b. Each depositor shall be entitled to such
portion of the entire as the amount
3. Depositary is not allowed to deposit the deposited by him bears the whole.
thing with a third person. (Art.1973)
7. Depositary is under obligation not to
EXCEPTION: There is a contrary stipulation make use of the thing deposited;
otherwise he shall be liable for damages.
NOTE: Depositary is liable for the loss of the (Art.1977)
thing deposited if:
a. He transfers the deposit with a third EXCEPTIONS:
person without authority although there a. Express permission of the depositor
is no negligence on his part and the third b. Preservation of the thing deposited
person; required its use
b. He deposits the thing with a third person
who is manifestly careless or unfit 8. Depositary is liable for loss of the thing
although authorized, even in the through a fortuitous event:
absence of negligence; or a. If it is so stipulated;
c. The thing is lost through the negligence b. If he uses the thing without the
of his employees whether the latter are depositor’s permission;
manifestly careless or not. c. If he delays its return;
d. If he allows others to use it, even though 315
EXEMPTION FROM LIABILITY: Depositary he himself may have been authorized to
CREDIT TRANSACTIONS
is not responsible for loss of thing without use the same (Art.1979)
negligence of the third person with whom he
was allowed to deposit the thing if such third 9. Where thing deposited is delivered
person is not “manifestly careless or unfit.” closed and sealed, depositary has
obligation to:
4. Depositary is obliged not to change way a. Return the thing deposited when
of deposit. He may change the way or delivered closed and sealed
manner of deposit only if there are b. Pay for damages should seal or lock be
circumstances indicating that the depositor broken through his fault, which is
would consent to the change and notice is presumed unless proven otherwise
given to depositor. HOWEVER, notice is not c. Keep secret of the deposit when the
required if delay will cause danger. seal or lock is broken, with or without his
(Art.1974) fault (Art.1982)
5. If thing deposited should earn interest, the 10. Depositary is obliged to return the
depositary is under obligation (1) to collect products, accessories and accessions of
the interest as it becomes due and (2) to the thing deposited. (Art.1983)
take such steps as may be necessary to
preserve its value and the rights 11. Depositary is obliged to pay interest on
corresponding to it. The depositary is bound sums converted to personal use.
to collect not only the interest but also the (Art.1983)
capital itself when due. (Art.1975)
12. Depositary who receives the thing in
6. Depositary has the obligation not to deposit cannot require that the depositor
commingle things deposited if so prove his ownership over the thing (Art.
stipulated, even if they are of the same kind 1984)
and quality. (Article 1976)
13. Where the thing appears to be stolen and
GENERAL RULE: The depositary is the depositary knows the true owner, he
permitted to commingle grain or other must advise the true owner about the
articles of the same kind and quality. deposit. If the owner, in spite of such
EXCEPTION: When there is a stipulation to information, does not claim it within the
the contrary period of one month, the depositary is

lOMoARcPSD|3291925
relieved from liability. (Art.1984, pars.2 and there was no malice on the part of the
3) If the depositary has reasonable grounds depositary
to believe that the thing has not been
lawfully acquired by the depositor, he may TIME OF RETURN (Art.1988)
return the same. (Art.1984, par.4) 1. GENERAL RULE: The thing deposited must
be returned to the depositor upon demand,
RIGHT OF TWO OR MORE DEPOSITORS even though a specified period or time for
(Art.1985) such return may have been fixed.
1. Where the thing is divisible and depositors 2. EXCEPTIONS:
not solidary – each one of the depositors a. When the thing is judicially attached
can demand only his share proportionate while in the depositary’s possession
thereto. b. When notified of the opposition of a third
2. Where the thing is not divisible or the person to the return or the removal of
obligation is solidary – rules on active the thing deposited
solidarity must apply
a. Each one of the depositors may do RIGHT OF THE DEPOSITARY TO RETURN
whatever may be useful to the others THE THING (Art.1989)
but not anything which may be 1. GENERAL RULE: The depositary may
prejudicial to the latter. (Art.1212) return the thing deposited notwithstanding
b. The depositary may return the thing to that a period has been fixed for the deposit
any one of the solidary depositors if:
UNLESS a demand for its return has a. The deposit is gratuitous;
been made by one of them in which b. The reason is justifiable.
case delivery should be made to him.
(Art. 1214) [NOTE: If the depositor refuses to receive 316
3. Where there is a stipulation of return to one the thing, the depositary may deposit the
CREDIT TRANSACTIONS
of the depositors, the depositary is bound to thing at the disposal of the judicial authority.]
return it only to the person designated
although he has not made any demand for 2. EXCEPTION: When the deposit is for a
its return. valuable consideration, the depositary has
no right to return the thing before the
PERSONS TO WHOM RETURN MUST BE expiration of the time designated even if he
MADE should suffer inconvenience as a
1. The depositary is obliged to return the thing consequence.
deposited, when required, to:
a. The depositor; Is the depositary liable for loss by force
b. To his heirs or successors; or majeure or government order?
c. To the person who may have been  The depositary is not liable in cases of loss
designated in the contract. (Art.1972) by force majeure or by government order.
2. If the depositor was incapacitated at the time HOWEVER, he has the duty to deliver to the
of making the deposit, the property must be depositor money or another thing he
returned to: receives in place of the thing. (Art.1990)
a. His guardian or administrator;
b. To the person who made the deposit; ALIENATION IN GOOD FAITH BY
c. To the depositor himself should he DEPOSITARY’S HEIR
acquire capacity. (Art.1970) When alienation is done in GOOD FAITH, the
3. Even if the depositor had capacity at the heir is obliged to:
time of making the deposit but he 1. Return the value of the thing deposited
subsequently loses his capacity during the 2. Assign the right to collect from the buyer.
deposit, the thing must be returned to his
legal representative. (Art.1986) NOTE: The heir does not need to pay the
actual price of the thing deposited.
PLACE OF RETURN (Art.1987)
1. At the place agreed upon by the parties When alienation is done in BAD FAITH, the heir
2. In the absence of stipulation, at the place must:
where the thing deposited might be even if it 1. Be liable for damages;
should not be the same place where the 2. Pay the actual price of the thing deposited.
original deposit was made, provided that

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DEPOSITARY’S RIGHT OF RETENTION deficiency, the rules on voluntary deposit

 The depositary may retain the thing in e.g. Arts. 538, 586 and 2104
pledge until the full payment of what may be 2. It takes place on the occasion of any
due him by reason of the deposit. (Art.1994) calamity, such as fire, storm, flood, pillage,
 NOTE: This is an example of a pledge shipwreck, or other similar events. There
created by operation of law. (Art.2121) must be a causal relation between the
calamity and the constitution of the deposit.
VI. Obligations of the Depositor In this case the deposit is governed by the
rules on voluntary deposit and Art. 2168
3. Made by passengers with common carriers.
1. Depositor is obliged to reimburse the
(Art.1754)
depositary for expenses incurred for
4. Made by travelers in hotels or inns. (Art.
preservation – if deposit is gratuitous.
1998)
(Art.1992)
2. Depositor is obliged to pay losses
DEPOSITS BY TRAVELLERS IN HOTELS
incurred due to character of thing
AND INNS
deposited. (Art. 1993)
Before keepers of hotels or inns may be held
responsible as depositaries with regard to the
GENERAL RULE: The depositary must be
effects of their guests, the following must concur:
reimbursed for loss suffered by him because of
1. They have been previously informed about
the character of the thing deposited.
the effects brought by the guests; and
2. The latter have taken the precautions
EXCEPTIONS:
prescribed regarding their safekeeping.
1. Depositor was not aware of the danger;
2. Depositor was not expected to know the
EXTENT OF LIABILITY UNDER ART.1998 317
dangerous character of the thing;
1. Liability in hotel rooms which come under
3. Depositor notified the depositary of such
CREDIT TRANSACTIONS
the term “baggage” or articles such as
dangerous character;
clothing as are ordinarily used by travelers
4. Depositary was aware of the danger without
2. Include those lost or damages in hotel
advice from the depositor.
annexes such as vehicles in the hotel’s
garage.
VII. Extinguishment of Deposit (Art. 1995) 2. In the following cases, the hotel- keeper is
liable
A deposit is extinguished:
1. Upon the loss or deterioration of the thing WHEN HOTEL-KEEPER LIABLE
deposited; Regardless of the amount of care exercised -
2. Upon the death of the depositary, ONLY in 1. The loss or injury to personal property is
gratuitous deposits; caused by his servants or employees as well
3. By other modes provided in the Civil Code, as by strangers (Art. 2000).
e.g. novation, merger, etc. (See Art.1231) 2. The loss is caused by the act of a thief or
robber done without the use of arms and
EFFECT OF DEATH OF DEPOSITOR OR irresistible force. (Art. 2001)
DEPOSITARY (Art. 1995)
1. Where deposit gratuitous – death of either of WHEN HOTEL-KEEPER NOT LIABLE
the depositor or depositary extinguishes the 1. The loss or injury is cause by force majeure,
deposit (personal in nature). By the word like flood, fire, (Art.2000) theft or robbery by
“extinguished,” the law really means that the a stranger - not the hotel-keeper’s servant or
depositary is not obliged to continue with the employee with the use of firearms or
contract of deposit. irresistible force (Art.2001)
2. (2) Where deposit for compensation – not
extinguished by the death of either party. EXCEPTION: Hotel- keeper is guilty of fault
or negligence in failing to provide against the
VIII. Necessary Deposit loss or injury from his cause. (Arts.1170 and
1174)
KINDS OF NECESSARY DEPOSITS 2. The loss is due to the acts of the guests, his
1. It is made in compliance with a legal family, servants, visitors (Art.2002)
obligation, in which case it is governed by 3. The loss arises from the character of the
the law establishing it, and in case of things brought into the hotel (Ibid.)

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[NOTE: The hotel-keeper cannot free himself DEPOSITARY OF SEQUESTERED

from responsibility by posting notices to the PROPERTY
effect that he is not liable for the articles brought A person appointed by the court (Art. 2007) with
by the guest. Such kind of stipulation shall be the obligations:
VOID. (Art. 2003)] 1. To take care of the property with the
diligence of a good father of the family. (Art.
TRIPLE-V FOOD SERVICES v. FILIPINO 2008)
MERCHANTS INSURANCE COMPANY: 2. To continue in his responsibility until the
 Regarding the legal deposit of a vehicle that litigation is ended or the court so orders.
was stolen while parked with Saisaki (Art. 2007)
restaurant, “the depositary may not exempt
itself from responsibility or loss or damage of APPLICABLE LAW
the thing deposited with it, by exclusionary  The law on judicial deposit is remedial or
stipulation. Such stipulations are void for procedural in nature. Hence, the
being contrary to law.”  Rules of Court are applicable. (Art. 2009)
HOTEL-KEEPER’S RIGHT TO RETENTION

 The hotel-keeper has a right to retain the
things brought into the hotel by the guest, as
a security for credits on account of (a)
lodging, and (b) supplies usually furnished to
hotel guests.
 NOTE: The right of retention recognized in
this article is in the nature of a pledge 318
created by operation of law.
CREDIT TRANSACTIONS
IX. Judicial Deposit
JUDICIAL DEPOSIT - Judicial deposit takes

place when an attachment or seizure of property
in litigation is ordered by a court. (Art. 2005)
NATURE AND PURPOSE

 It is auxiliary to a case pending in court. The
purpose is to maintain the status quo during
pendency of the litigation or to insure the
right of the parties to the property in case of
a favorable judgment.
EXTRAJUDICIAL AND JUDICIAL DEPOSITS

DISTINGUISHED
EXTRAJUDICIAL JUDICIAL
(Voluntary) deposit made Constituted by virtue of a
by free will of the court order
depositor.
Object must be movable Object may be either

property movable or immovable
property
Purpose is safekeeping Purpose is to secure or
of the thing deposited protect the owner’s right;
to maintain status quo
during pendency of case
Generally gratuitous Always onerous
Depositary is obliged to Thing shall be delivered
return the thing deposited only upon order of the
upon demand made by court
the depositor

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CIVIL LAW REVIEWER Chapter IV. GUARANTY
of law
Chapter IV. Guaranty c. Judicial – required by a court to
guarantee the eventual right of one of
I. DEFINITION the parties in a case.
II. CHARACTERISTICS 3. As to consideration:
III. CLASSIFICATION
a. Gratuitous – guarantor does not receive
IV. RULES GOVERNING GUARANTY
V. GUARANTY DISTIGUISHED FROM OTHERS any price or remuneration for acting as
VI. THE GUARANTOR such (2048)
VII. EFFECTS OF GUARANTY b. Onerous – one where the guarantor
VIII. EXTINGUISHMENT OF GUARANTY receives valuable consideration for his
guaranty
I. Definition 4. As to person guaranteed:
a. Single – constituted solely to guarantee
or secure performance by the debtor of
GUARANTY is a contract whereby a person, the principal obligation;
called the guarantor, binds himself to the creditor b. Double or sub-guaranty – constituted to
to fulfill the obligation of the principal debtor in secure the fulfillment by the guarantor of
case the latter should fail to do so. (Art. 2047) a prior guaranty
5. As to its scope and extent:
While a surety undertakes to pay if the principal a. Definite – where the guaranty is limited
does not pay, the guarantor only binds himself to the principal obligation only, or to a
to pay if the principal cannot pay (See benefit of specific portion thereof;
excussion, 2058). b. Indefinite or simple – where the
guaranty included all the accessory
II. Characteristics obligations of the principal, e.g. costs, 319
1. Accessory – dependent for its existence including judicial costs.
CREDIT TRANSACTIONS
upon the principal obligation guaranteed by
it; IV. Rules Governing Guaranty
2. Subsidiary and conditional – takes effect
only when the principal debtor fails in his 1. A guaranty is generally gratuitous (2048)
obligation a. General Rule: Guaranty is gratuitous
3. Unilateral – b. Exception: When there is a stipulation to
a. It gives rise only to a duty on the part of the contrary
the guarantor in relation to the creditor 2. On the cause of a guaranty contract
and not vice versa
b. It may be entered into even without the
SEVERINO v SEVERINO: “A guarantor or
intervention of the principal debtor.
surety is bound by the same consideration that
4. Guarantor must be a person distinct from
makes the contract effective between the
the debtor – a person cannot be the
principal parties thereto.”
personal guarantor of himself
a. Presence of cause which supports

III. Classification
principal obligation: Cause of the
contract is the same cause which
CLASSIFICATION OF GUARANTY supports the obligation as to the
1. Guaranty in the broad sense: principal debtor. The consideration
a. Personal – guaranty is the credit given which supports the obligation as to the
by the person who guarantees the principal debtor is a sufficient
fulfillment of the principal obligation; or consideration to support the obligation of
b. Real – guaranty is property, movable, or a guarantor or surety.
immovable b. Absence of direct consideration or
 Real mortgage (2124) or antichresis benefit to guarantor: Guaranty or surety
(2132) – guaranty is immovable agreement is regarded valid despite the
 Chattel mortgage (2140) or pledge absence of any direct consideration
(2093) – guaranty is movable received by the guarantor or surety,
2. As to its origin: such consideration need not pass
a. Conventional – constituted by directly to the guarantor or surety; a
agreement of the parties (2051[1]) consideration moving to the principal will
b. Legal – imposed by virtue of a provision suffice.a

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proceed against the guarantor although

3. A married woman who is a guarantor he has no right of action against the
binds only her separate property, principal debtor for the reason that the
generally (2049) latter’s obligation is not civilly
enforceable. When the debtor himself
Exceptions: offers a guaranty for his natural
a. With her husband’s consent, bind the obligation, he impliedly recognizes his
community or conjugal partnership liability, thereby transforming the
property obligation from a natural into a civil one.
b. Without husband’s consent, in cases
provided by law, such as when the 7. A guaranty may secure a future debt
guaranty has redounded to the benefit of (2053)
the family.
Continuing Guaranty or Suretyship:
4. A guaranty need not be undertaken with
the knowledge of the debtor (2050) DIÑO v. CA: “Under the Civil Code, a guaranty
a. Guaranty is unilateral – exists for the may be given to secure even future debts, the
benefit of the creditor and not for the amount of which may not known at the time the
benefit of the principal debtor guaranty is executed. This is the basis for
b. Creditor has every right to take all contracts denominated as continuing guaranty or
possible measures to secure payment of suretyship.”
his credit – guaranty can be constituted
even against the will of the principal
Future debts, even if the amount is not yet
debtor
known, may be guaranteed but there can be
no claim against the guarantor until the 320
However, as regards payment made by a
amount of the debt is ascertained or fixed
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third person:
and demandable
a. Payment without the knowledge or
against the will of the debtor: Rationale: A contract of guaranty is
 Guarantor can recover only insofar
subsidiary.
as the payment has been beneficial
to the debtor a. To secure the payment of a loan at
 Guarantor cannot compel the
maturity – surety binds himself to
creditor to subrogate him in his
guarantee the punctual payment of a
rights
loan at maturity and all other obligations
b. Payment with knowledge or consent of
of indebtedness which may become due
the debtor: Subrogated to all the rights or owing to the principal by the
which the creditor had against the borrower.
debtor
b. To secure payment of any debt to be
subsequently incurred – a guaranty shall
5. The guaranty must be founded on a valid
be construed as continuing when by the
principal obligation (2052[1])
terms thereof it is evident that the object
 Guaranty is an accessory contract: It is is to give a standing credit to the
an indispensable condition for its
principal debtor to be used from time to
existence that there must be a principal
time either indefinitely or until a certain
obligation. Hence, if the principal
period, especially if the right to recall the
obligation is void, it is also void.
guaranty is expressly reserved.
c. To secure existing unliquidated debts –
6. A guaranty may secure the performance
refers to debts existing at the time of the
of a voidable, unenforceable, and natural
constitution of the guaranty but the
obligation (2052[2])
amount thereof is unknown and not to
A guaranty may secure the performance of
debts not yet incurred and existing at
a:
that time.
a. Voidable contract – such contract is d. The surety agreement itself is valid and
binding, unless it is annulled by a proper binding even before the principal
court action
obligation intended to be secured
b. Unenforceable contract – because such
thereby is born, any more than there
contract is not void
would be in saying that obligations
c. Natural obligation – the creditor may
which are subject to a condition

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precedent are valid and binding before more than the total amount stipulated in
the occurrence of the condition the bond.
precedent.
Interest runs from:
A continuing guaranty is one which is not limited to a  Filing of the complaint (upon judicial
single transaction, but which contemplates a future demand); or
course of dealing, covering a series of transactions,  The time demand was made upon
generally for an indefinite time or until revoked. It is the surety until the principal
prospective in its operation and is generally intended obligation is fully paid (upon extra-
to provide security with respect to future transactions
judicial demand)
within certain limits, and contemplates a succession of
liabilities, for which, as they accrue, the guarantor
becomes liable. Rationale: Surety is made to pay, not by
reason of the contract, but by reason of
A continuing guaranty is one which covers all his failure to pay when demanded and for
transactions, including those arising in the future, having compelled the creditor to resort to
which are within the description or contemplation of the courts to obtain payment.
the contract, of guaranty, until the expiration or
termination thereof. A guaranty shall be construed as b. Penalty may be provided – a surety may
continuing when by the terms thereof it is evident that
be held liable for the penalty provided
the object is to give a standing credit to the principal
debtor to be used from time to time either indefinitely for in a bond for violation of the condition
or until a certain period, especially if the right to recall therein.
the guaranty is expressly reserved.
Principal’s liability may exceed
Where the contract of guaranty states that the same is guarantor’s obligations
to secure advances to be made "from time to time" 321
the guaranty will be construed to be a continuing one.” The amount specified in a surety bond
CREDIT TRANSACTIONS
as the surety’s obligation does not limit
8. A guaranty may secure the performance the extent of the damages that may be
of a conditional obligation (2053) recovered from the principal, the latter’s
a. Principal obligation subject to a liability being governed by theobligations
suspensive condition – the guarantor is he assumed under his contract
liable only after the fulfillment of the
condition. 10. The existence of a guaranty is not
b. Principal obligation subject to a presumed (2055)
resolutory condition – the happening of
the condition extinguishes both the Guaranty requires the expression of consent
principal obligation and the guaranty on the part of the guarantor to be bound. It
cannot be presumed because of the
9. A guarantor’s liability cannot exceed the existence of a contract or principal
principal obligation (2054) obligation.
General Rule: Guaranty is a subsidiary and Rationale:

accessory contract – guarantor cannot bind a. There be assurance that the guarantor
himself for more than the principal debtor had the true intention to bind himself;
and even if he does, his liability shall be b. To make certain that on making it, the
reduced to the limits of that of the debtor. guarantor proceeded with
But the guarantor may bind himself for less consciousness of what he was doing.
than that of the principal.
11. Contract of guaranty is covered by the
Exceptions: Statute of Frauds (See Art. 1403(2(a))
a. Interest, judicial costs, and attorney’s  Guaranty must not only be expressed
fees as part of damages may be but must so be reduced into writing.
recovered – creditors suing on a Hence, it shall be unenforceable by
suretyship bond may recover from the action, unless the same or some note or
surety as part of their damages, interest memorandum thereof be in writing, and
at the legal rate, judicial costs, and subscribed by the party charged, or by
attorney’s fees when appropriate, even his agent; evidence, therefore, of the
without stipulation and even if the surety agreement cannot be received without
would thereby become liable to pay the writing, or a secondary evidence of

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its contents. However, It need not The subsequent loss of integrity or property or
appear in a public document supervening incapacity of the guarantor would
not operate to exonerate the guarantor of the
V. Guaranty Distinguished from Others eventual liability he has contracted, and the
contract of guaranty continues. The creditor can
merely demand another guarantor with the
GUARANTY DISTINGUISHED FROM
proper qualifications except that the creditor may
WARRANTY
waive such remedy if he chooses and hold the
guarantor to his bargain.
Guaranty Warranty
Guaranty is a contract Warranty is an
Selection of Guarantor:
by which a person is undertaking that the title,
bound to another for the quality, or quantity of the 1. Specified person stipulated as guarantor:
fulfillment of a promise subject matter of a Substitution of guarantor may not be
or engagement of a third contract is what is has demanded
party been represented to be,
and relates to some Reason: The selection of the guarantor is:
agreement made a. Term of the agreement;
ordinarily by the party b. As a party, the creditor is, therefore,
who makes the warranty bound thereby.
GUARANTY DISTINGUISHED FROM 2. Guarantor selected by the principal debtor:
SURETYSHIP Debtor answers for the integrity, capacity,
and solvency of the guarantor.
Guaranty Suretyship
Guarantor’s liability Surety assumes liability
depends upon an as a regular party to the
3. Guarantor personally designated by the 322
creditor: Responsibility of the selection
independent agreement undertaking
CREDIT TRANSACTIONS
to pay the obligation should fall upon the creditor because he
Guarantor’s engagement Surety is an original considered the guarantor to have the
is a collateral promissor qualifications for the purpose.
undertaking
Guarantor is subsidiarily Surety is primarily liable
liable i.e. only obliged to i.e. bound to pay if the VII. Effects of Guaranty
pay if the principal principal does not pay
cannot pay
EFFECTS OF GUARANTY BETWEEN THE
Guarantor not bound to Surety ordinarily held to
take notice of default of know every default of his GUARANTOR AND THE CREDITOR
his principal principal 1. The guarantor has the right to benefit
from excussion/ exhaustion (2058)
Guarantor often Surety not discharged
discharged by the mere either by the mere
indulgence of the indulgence of the Exceptions to the benefit of excussion
creditor and is usually creditor or by want of (2059)
not liable unless notified notice of default of the a. As provided in Art. 2059:
of the principal’s default principal  If the guarantor has expressly
renounced it; waiver is valid but it
must be made in express terms.
VI. The Guarantor (Arts. 2056-2057)  If he has bound himself solidarily
with the debtor, the liability assumed
is that of a surety. The guarantor
Qualifications:
becomes primarily liable as a
1. He possesses integrity;
solidary co- debtor. In effect, he
2. He has capacity to bind himself;
renounces in the contract itself the
3. He has sufficient property to answer for the
benefit of exhaustion.
obligation which he guarantees.
 In case of insolvency of the debtor –
guarantor guarantees the solvency
Exception: The creditor waives the
of the debtor. If the debtor becomes
requirements
insolvent, the liability of the
guarantor as the debtor cannot fulfill
The qualifications above need only be present at
his obligation
the time of the perfection of the contract.
 When he (debtor) has absconded,

lOMoARcPSD|3291925
or cannot be sued within the the debt

Philippines – the creditor is not c. If he is a judicial bondsman and sub-
required to go after a debtor who is surety (2084)
hiding or cannot be sued in our d. Where a pledge or mortgage has been
courts, and to incur the delays and given by him as a special security
expenses incident thereto. The e. If he fails to interpose it as a defense
exception is when the debtor has before judgment is rendered against
left a manager or representative; him.
 If it may be presumed that an
execution on the property of the 2. The creditor has the right to secure a
principal debtor would not result in judgment against the guarantor prior to
the satisfaction of the obligation – if the excussion
such judicial action including
execution b would not satisfy the General rule: An ordinary personal
obligation, the guarantor can no guarantor (NOT a pledgor or mortgagor),
longer require the creditor to resort may demand exhaustion of all the property
to all such remedies against the of the debtor before he can be compelled to
debtor as the same would be but a pay.
useless formality. It is not necessary
that the debtor be judicially declared Exception: The creditor may, prior thereto,
insolvent. secure a judgment against the guarantor,
who shall be entitled, however, to a
SOUTHERN MOTORS, INC. v BARBOSA: “The deferment of the execution of said judgment
right of guarantors…to demand exhaustion of against him, until after the properties of the
the property of the principal debtor, exists only principal debtor shall have been exhausted, 323
when a pledge or a mortgage has not been to satisfy the latter’s obligation.
CREDIT TRANSACTIONS
given as special security for the payment of the
principal obligation.” 3. The creditor has the duty to make prior
demand for payment from the guarantor
(2060)
LUZON STEEL CORP. v SIA: “The surety in the a. The demand is to be made only after
present case bound itself "jointly and severally" judgment on the debt
(in solidum) with the defendant; and excussion b. Joining the guarantor in the suit against
(previous exhaustion of the property of the the principal debtor is not the demand
debtor) shall not take place "if he (the guarantor) intended by law. Actual demand has to
has bound himself solidarily with the debtor".” be made.
b. If he does not comply with Art. 2060: In 4. The guarantor has the duty to set up the
order that the guarantor may make use benefit of excussion (2060)
of the benefit of excussion, he must:  As soon as he is required to pay,
 Set it up against the creditor upon guarantor must also point out to the
the latter’s demand for payment creditor available property (not in
from him; litigation or encumbered) of the debtor
 Point out to the creditor: within the Philippines.
o Available property of the debtor
– the guarantor should facilitate 5. The creditor has the duty to resort to all
the realization of the excussion legal remedies (2061)
since he is the most interested a. After the guarantor has fulfilled the
in its benefit. conditions required for making use of
o Within the Philippine territory – the benefit of exhaustion, it becomes the
excussion of property located duty of the creditor to:
abroad would be a lengthy and b. Exhaust all the property of the debtor
extremely difficult proceeding pointed out by the guarantor;
and would not conform with the c. If he fails to do so, he shall suffer the
purpose of the guaranty to loss but only to the extent of the value of
provide the creditor with the the said property, for the insolvency of
means of obtaining the the debtor
fulfillment of the obligation.
o Sufficient to cover the amount of

lOMoARcPSD|3291925
6. The creditor has the duty to notify the the subrogation clause of Article 2067. The
guarantor in the action against the debtor assumption, however, is that the guarantor
(2062) who is subrogated to the rights of the
creditor, has the right to be reimbursed for
Under this article, notice to the guarantor is his answering for the obligation of the
mandatory in the action against the principal debtor. Absent this right of reimbursement,
debtor. The guarantor, however, is not duty subrogation will not be proper.
bound to appear in the case, and his non-
appearance shall not constitute default, w/ 2. The guarantor has the duty to notify the
its consequential effect. debtor before paying the creditor (2068).
Rationale: The purpose of notification is to Should payment be made without notifying

give the guarantor the opportunity to allege the debtor, and supposing the debtor has
and substantiate whatever defenses he may already made a prior payment, the debtor
have against the principal obligation, and would be justified in putting up the defense
chances to set up such defenses as are that the obligation has already been
afforded him by law if he so desires extinguished by the time the guarantor made
the payment.
7. A compromise shall not prejudice the
person not party to it (2063) In this case, the guarantor will lose the right
a. A compromise between creditor and of reimbursement and consequently the right
principal debtor benefits the guarantor of subrogation as well.
but does not prejudice him.
b. A compromise between guarantor and 3. The guarantor cannot make payment
the creditor benefits but does not before the obligation has become due 324
prejudice the principal debtor. (2069).
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8. Co-guarantors are entitled to the benefit General rule: Since a contract of guaranty is
of division (2065) only subsidiary, the guarantor cannot be
 The benefit of division applies only when liable for the obligation before the period on
there are several guarantors and one which the debtor’s liability will accrue. Any
debtor for a single debt. Except when payment made by the guarantor before the
solidarity has been stipulated among the obligation is due cannot be indemnified by
co-guarantors, a co- guarantor is liable the debtor.
only to the extent of his share in the
obligation as divided among all the co- Exception: Prior consent or subsequent
guarantors. ratification by the debtor
EFFECTS OF GUARANTY BETWEEN THE 4. The guarantor may proceed against the
DEBTOR AND THE GUARANTOR debtor even before payment has been made
(2071)
1. The guarantor has the right to be
subrogated to the rights of the creditor General rule: Guarantor has no cause of
(2067) action against the debtor until after the
A guarantor who pays the debt is entitled to former has paid the obligation.
every remedy which the creditor has against
the principal debtor, to enforce every Exceptions:
security and all means of payments; to stand a. When he is sued for the payment;
in the place of the creditor not only through b. In case of insolvency of the principal
the medium of the contract, but even by debtor;
means of the securities entered into w/out c. When the debtor has bound himself to
the knowledge of the surety; having the right relieve him from the guaranty within a
to have those securities transferred to him specified period, and this period has
though there was no stipulation for it, and to expired;
avail himself of all securities against the d. When the debt has become
debtor demandable, by reason of the expiration
of the period for payment;
The need to enforce the provisions on e. After the lapse of 10 years, when the
indemnity in Article 2066 forms the basis for principal obligation has no fixed period

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for its maturity, unless it be of such released (2078).

nature that it cannot be extinguished 4. A guarantor is also released if the creditor,
except within a period longer than 10 without the guarantor’s consent, extends the
years; time within which the debtor may perform his
f. If there are reasonable grounds to fear obligation (2079). This is to protect the
that the principal debtor intends to interest of the guarantor should the debtor
abscond; be insolvent during the period of extension
g. If the principal debtor is in imminent and deprive the guarantor of his right to
danger of becoming insolvent. reimbursement.
5. If through the fault of the creditor the
Rationale: To enable the guarantor to take guarantors are precluded from being
measures for the protection of his interest in subrogated to the former’s rights, the latter
view of the probability that he would be are released from the obligation. (2080)
called upon to pay the debt. As such, he
may, in the alternative, obtain release from
the guaranty; or demand security that shall
protect him from any proceedings by the
creditor; and against the insolvency of the
debtor.
EEFECTS OF GUARANTY AS BETWEEN CO-

GUARANTORS
Requisites for the applicability of Art. 2073:
1. Payment has already been made by one
guarantor; 325
2. The payment was made because
CREDIT TRANSACTIONS
a. Of the insolvency of the debtor, or
b. By judicial demand
3. The paying guarantor seeks to be
indemnified only to the extent of his
proportionate share in the total obligation.
For purposes of proportionate
reimbursement, the other guarantors may
interpose such defenses against the paying
guarantor as are available to the debtor
against the creditor, except those that are
personal to the debtor.
VIII. Extinguishment of Guaranty
1. Once the obligation of the debtor is

extinguished in any manner provided in the
Civil Code, the obligation of the guarantor is
also extinguished (2076). However, there
may be instances when, after the
extinguishment of the guarantor’s obligation
(as in the case of a release from the
guaranty), the obligation of the debtor still
subsists.
2. Although the guarantor generally has to
make payment in money, any other thing of
value, if accepted by the creditor, is valid
payment and therefore releases the
guarantor (2077).
3. If one guarantor is released, the release
would benefit the co-guarantors to the extent
of the proportionate share of the guarantor

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. LEGAL AND JUDICIAL BONDS
Chapter V. Legal and Judicial Bonds
Bond – an undertaking that is sufficiently

secured, and not cash or currency.
Bondsman – a surety offered in virtue of a
provision of law or a judicial order.
Qualifications of personal bondsman (2082 in

relation to Art. 2056):
1. He possesses integrity;
2. He has capacity to bind himself;
3. He has sufficient property to answer for
the obligation which he guarantees.
PLEDGE OR MORTGAGE IN LIEU OF BOND

(2083)
 Guaranty or suretyship is a personal
security.
 Pledge or mortgage is a property or real
security. If the person required to give a
legal or judicial bond should not be able to
do so, a pledge or mortgage sufficient to
cover the obligation shall be admitted in lieu
thereof. 326
CREDIT TRANSACTIONS
BONDSMAN NOT ENTITLED TO
EXCUSSION (2084)
A judicial bondsman and the sub-surety are not

entitled to the benefit of excussion.
Reason: They are not mere guarantors, but

sureties whose liability is primary and
solidary.
Effect of negligence of creditor: Mere

negligence on the part of the creditor in
collecting from the debtor will not relieve the
surety from liability.

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CIVIL LAW REVIEWER Chapter VI. SURETYSHIP
NOTE: Surety is not entitled to notice of

Chapter VI. Suretyship principal’s default
SURETYSHIP is a relation which exists where 5. Prior demand by the creditor upon
one person (principal) has undertaken an principal not required. Surety is not
obligation and another person (surety) is also exonerated by neglect of creditor to sue
under a direct and primary obligation or other principal.
duty to the obligee, who is entitled to but one
performance, and as between the two who are STRICTISSIMI JURIS RULE APPLICABLE
bound, the second, rather than the first should ONLY TO ACCOMMODATION SURETY
perform.
 Reason: An accommodation surety acts
If a person binds himself solidarily with the without motive of pecuniary gain and hence,
principal debtor, the contract is called suretyship should be protected against unjust
and the guarantor is called a surety. pecuniary impoverishment by imposing on
the principal, duties akin to those of a
fiduciary. This rule will apply only after it has
NATURE OF SURETY’S UNDERTAKING been definitely ascertained that the contract
1. Liability is contractual and accessory but is one of suretyship or guaranty.
direct
2. Liability is limited by terms of contract
3. Liability arises only if principal debtor is STRICTISSIMI JURIS RULE NOT
held liable APPLICABLE TO COMPENSATED SURETIES
a. In the absence of collusion, the surety is Reasons:
bound by a judgment against the 1. Compensated corporate sureties are 327
principal event though he was not a business association organized for the
CREDIT TRANSACTIONS
party to the proceedings; purpose of assuming classified risks in large
b. The creditor may sue, separately or numbers, for profit and on an impersonal
together, the principal debtor and the basis.
surety; 2. They are secured from all possible loss by
c. A demand or notice of default is not adequate counter-bonds or indemnity
required to fix the surety’s liability agreements.
d. Exception: Where required by the 3. Such corporations are in fact insurers and in
provisions of the contract of suretyship determining their rights and liabilities, the
e. A surety bond is void where there is not rules peculiar to suretyship do not apply.
principal debtor because such an
undertaking presupposes that the
obligation is to be enforceable against
someone else besides the surety, and
the latter can always claim that it was
never his intention to be the sole person
obligated thereby.
NOTE: Surety is not entitled to exhaustion
4. Undertaking is to creditor, not to debtor
The surety makes no covenant or

agreement with the principal that it will fulfill
the obligation guaranteed for the benefit of
the principal. The surety’s undertaking is
that the principal shall fulfill his obligation
and that the surety shall be relieved of
liability when the obligation secured is
performed.
Exception: Unless otherwise expressly

provided.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VII. PLEDGE, MORTGAGE, ANTICHRESIS
collect.
Chapter VII. Pledge, Mortgage,
Antichresis
MANILA SURETY V VELAYO: The accessory
character is of the essence of pledge and
I. ESSENTIAL REQUISITES COMMON TO mortgage. As stated in Art 2085 CC, an
PLEDGE AND MORTGAGE
essential requisite of these contracts is that they
II. PLEDGE
III. MORTGAGE be constituted to secure the fulfillment of a
IV. FORECLOSURE OF MORTGAGE principal obligation
V. ANTICHRESIS
VI. CHATTEL MORTGAGE 2. Creditor cannot appropriate to himself the
thing nor can he dispose of the same as
I. Essential Requisites Common to owner.
Pledge and Mortgage (Art. 2085)
PROHIBITION AGAINST PACTUM
COMMISSORIUM (Art. 2088)
ESSENTIAL REQUISITES COMMON TO
1. Stipulation is null and void: Stipulation where
PLEDGE AND MORTGAGE (Art. 2085)
thing or mortgaged shall automatically
1. Constituted to secure the fulfillment of a
become the property of the creditor in the
principal obligation.
event of nonpayment of the debt within the
2. Pledgor or mortgagor must be the absolute
term fixed.
owner of the thing pledged or mortgaged.
2. Requisites of pactum commissorium:
3. The persons constituting the pledge or
a. Pledge or mortgage.
mortgage have the free disposal of their
b. A stipulation for an automatic
property, and in the absence thereof, that
appropriation by the creditor of the
they be legally authorized for the purpose.
property in the event of nonpayment. 328
4. Cannot exist without a valid obligation.
3. Effect on security contract: Nullity of the
CREDIT TRANSACTIONS
5. Debtor retains the ownership of the thing
stipulation does not affect validity and
given as a security.
efficacy of the principal contract.
6. When the principal obligation becomes due,
the thing pledged or mortgaged may be
IMPORTANT POINTS
alienated for the payment to the creditor.
1. Debtor-owner bears the risk of loss of the
property.
IMPORTANT POINTS
2. Pledge or mortgage is indivisible (2089,
1. Future property cannot be pledged or
2090).
mortgaged.
Exceptions:
2. Pledge or mortgage executed by one who is
a. Where each of several things
not the owner of the property pledged or
guarantees a determinate portion of the
mortgaged is without legal existence and
credit.
registration cannot validate it.
b. Where only a portion of loan was
3. Mortgage of a conjugal property by one of
released.
the spouses is valid only as to ½ of the
c. Where there was failure of
entire property.
consideration.
4. In case of property covered by Torrens title,
a mortgagee has the right to rely upon what
3. Rule that real property, consisting of several
appears in the certificate of title and does
lots should be sold separately, applies to
not have to inquire further.
sales in execution, and not to foreclosure of
5. Pledgor or mortgagor has free disposal of
mortgages.
property.
4. The mere embodiment of a real estate
6. Thing pledged or mortgaged may be
mortgage and a chattel mortgage in one
alienated.
document does not have the effect of fusing
7. Creditor not required to sue to enforce his
both securities into an indivisible whole.
credit.
8. Pledgor or mortgagor may be a third person.
UY TONG v CA: The 2 elements for pactum
RIGHT OF CREDITOR WHERE DEBTOR commissorium to exist:
FAILS TO COMPLY WITH HIS OBLIGATION (1) that there should be a pledge or mortgage
1. Creditor is merely entitled to move for the wherein a property is pledged or mortgaged by
sale of the thing pledged or mortgaged with way of security for the payment of the principal
the formalities required by law in order to obligation; (2) that there should be a stipulation

lOMoARcPSD|3291925
for an automatic appropriation by the creditor of mortgage becomes unenforceable to the extent
the thing pledged or mortgaged in the event of of such failure. Where the indebtedness actually
non-payment of the principal obligation within owing to the holder of the mortgage is less than
the stipulated period. the sum named in the mortgage, the mortgage
cannot be enforced for more than the actual sum
5. Pledge or mortgage may secure all kinds of due.
obligation, be they pure or subject to
suspensive or resolutory conditions (2091). The rule of indivisibility of the mortgage as
6. A promise to constitute pledge or mortgage outlined by Article 2089 above-quoted
creates no real right, only a personal right presupposes several heirs of the debtor or
binding upon the parties, only right of action creditor which does not obtain in this case.
to compel the fulfillment of the promise but Hence, the rule of indivisibility of a mortgage
there is no pledge or mortgage yet (2092). cannot apply.
7. Under the RPC, estafa is committed by a
person who, pretending to be the owner of BELO vs. PNB: From Art. 2089 is excepted the
any real property, shall convey, sell, case in w/c, there being several things given in
encumber or mortgage the same knowing mortgage or pledge, each one of them
that the real property is encumbered and guarantees only a determinate portion of the
shall dispose of the same as credit. The debtor, in this case, shall have a right
unencumbered. It is essential that fraud or to the extinguishment of the pledge or mortgage
deceit be practiced upon the vendee at the as the portion of the debt for w/c each thing is
time of the sale. specially answerable is satisfied. From the
wordings of the law, indivisibility arises only
II. Pledge when there is a debt, that is, there is a debtor-
creditor relationship. 329
PLEDGE is a contract by virtue of which the
CREDIT TRANSACTIONS
debtor delivers to the creditor or to a third person CHARACTERISTICS
a movable or document evidencing incorporeal 1. Real – Perfected by delivery.
rights for the purpose of securing the fulfillment 2. Accessory – Has no independent existence
of a principal obligation with the understanding of its own.
that when the obligation is fulfilled, the thing 3. Unilateral – Creates obligation solely on the
delivered shall be returned with all its fruits and part of the creditor to return the thing subject
accessions. (Art.2085 in rel to 2093) upon the fulfillment of the principal
obligation.
KINDS 4. Subsidiary – Obligation incurred does not
1. Voluntary or conventional – Created by arise until the fulfillment of the principal
agreement of parties. obligation.
2. Legal – Created by operation of law.
CAUSE OR CONSIDERATION
CENTRAL BANK vs. CA: The consideration of 1. Principal obligation – In so far as the pledgor
the accessory contract of real estate mortgage is is concerned.
the same as that of the principal contract. For 2. Compensation stipulated for the pledge or
the debtor, the consideration of his obligation to mere liberality of the pledgor – If pledgor is
pay is the existence of a debt. Thus, in the not the debtor.
accessory contract of real estate mortgage, the
consideration of the debtor in furnishing the PROVISIONS APPLICABLE ONLY TO
mortgage is the existence of a valid, voidable, or PLEDGE
unenforceable debt (Art. 2086, in relation to Art. 1. Transfer of possession to the creditor or to
2052, of the Civil Code). third person by common agreement is
essential in pledge (2093).
It is not necessary that any consideration should a. Actual delivery is important.
pass at the time of the execution of the contract b. Constructive or symbolic delivery of the
of real mortgage. It may either be a prior or key to the warehouse is sufficient to
subsequent matter. But when the consideration show that the depositary appointed by
is subsequent to the mortgage, the mortgage common consent of the parties was
can take effect only when the debt secured by it legally placed in possession.
is created as a binding contract to pay. And, 2. All movables within the commerce of man
when there is partial failure of consideration, the may be pledged as long as they are

lOMoARcPSD|3291925
susceptible of possession (2094). (2100).

3. Incorporeal rights may be pledged. The 3. Has no right to use the thing or to
instruments representing the pledged rights appropriate its fruits without authority from
shall be delivered to the creditor; if they be the owner (2104)
negotiable instruments, they must be 4. May cause the public sale of the thing
indorsed (2095). pledged if, without fault on his part, there is
4. Pledge shall take effect against 3rd persons danger of destruction, impairment or
only if the following appear in a public dimunition in value of the thing. The
instrument: proceeds of the auction shall be a security
a. Description of the thing pledged. for the principal obligation (2108).
b. Date of the pledge (2096).
5. The thing pledged may be alienated by the RIGHTS AND DUTIES OF THE PLEDGOR
pledgor or owner only with the consent of 1. Takes responsibility for the flaws of the thing
the pledgee. Ownership of the thing pledged pledged (2101 in relation to Art. 1951).
is transmitted to the vendee or transferee as 2. Cannot ask for the return of the thing against
soon as the pledgee consents to the the will of the creditor, unless and until he
alienation, but the latter shall continue to has paid the debt and its interest, with
have possession (2097). expenses in proper cases (2105).
6. Pledge gives the creditor the right to retain
the thing in his possession or in that of a YULIONGSIU vs. PNB: There is authority
third person to whom it has been delivered, supporting the proposition that the pledgee can
until the debt is paid (2098). temporarily entrust the physical possession of
7. Special Laws apply to pawnshops and the chattels pledged to the pledgor without
establishments engaged in making loans invalidating the pledge. In such a case, the
secured by pledges. Provisions of the Civil pledgor is regarded as holding the pledged 330
Code shall apply subsidiarily to them. property merely as trustee for the pledgee. The
CREDIT TRANSACTIONS
type of delivery will depend upon the nature and
RIGHTS AND DUTIES OF CREDITOR IN A the peculiar circumstances of each case.
PLEDGE
1. Shall take care of the thing pledged with the
diligence of a good father of a family (2099). PNB vs. ATENDIDO: according to law, a
2. Has right to reimbursement of the expenses pledgee cannot become the owner of, nor
made for preserving the thing. Shall be liable appropriate to himself, the thing given in pledge.
for loss or deterioration of the thing by If by the contract of pledge the pledgor continues
reason of fraud, negligence, delay or to be the owner of the thing pledged during the
violation of the terms of the contract, but not pendency of the obligation, it stands to reason
for fortuitous events (2099). that in case of loss of the property, the loss
3. May bring actions pertaining to the owner of should be borne by the pledgor.
the thing in order to recover it from, or
defend it against, a 3rd person (2103). 3. Subject to the right of the pledge under article
4. Cannot use the thing without the authority of 2108, pledgor is allowed to substitute the
the owner. If he uses the thing without thing which is in danger of destruction or
authority, or if he misuses the thing when he impairment without any fault on the part of
was authorized to use it, the owner may ask the pledgee with another thing of the same
that it be judicially or extrajudicially kind and quality (2107).
deposited (2104). 4. May require that the thing be deposited with
5. May use the thing if necessary for its a 3rd person, if through the negligence or
preservation (2104). willful act of the pledgee the thing is in danger
6. May either claim another thing in pledge or of being lost or impaired (2106).
demand immediate payment of the principal
obligation if he is deceived on the substance EXTINGUISHMENT OF A PLEDGE
or quality of the thing (2109). 1. Ways to extinguish a pledge:
a. Payment of the debt.
THE PLEDGEE b. Sale of the thing pledged at public
1. Cannot deposit the thing pledged with a 3rd auction.
person, unless there is a contrary stipulation c. Thing pledged is returned by the
(2100). pledgee to the pledgor or owner (2110).
2. Is responsible for the acts of his agents or d. Written statement by the pledgee that he
employees with respect to the thing pledged renounces or abandons the pledge.For

lOMoARcPSD|3291925
this purpose, neither the acceptance by  Useful expenses shall be refunded only to
the pledgor or owner nor the return of the possessor in good faith with the
the thing pledged is necessary, and the same right of retention, the person who
pledgee becomes a depositary (2111). has defeated him in the possession
2. Presumptions: having the option of refunding the
a. If, subsequent to the perfection of the amount of the expenses or of paying the
pledge, the thing is found in the increase in value which the thing may
possession of the pledgor or owner, have acquired and by reason thereof
there is prima facie presumption that the (Art. 546)
thing has been returned by the pledge 2. He who has executed work upon a movable
(2110). has a right to retain it by way of pledge until
b. If the thing is in the possession of a 3rd he is paid. This is called the mechanic’s
person who received it from the pledgor lien. (Art. 1731)
or owner after the constitution of the 3. 3) The agent may retain the things which are
pledge, there is prima facie presumption the objects of agency until the principal
that the thing has been returned by the effects the reimbursement and pays the
pledge (2110). indemnity. This is called the agent’s lien.
(Art. 1914)
REQUIREMENTS IN SALE OF THE THING 4. 4) The laborer’s wages shall be a lien on the
PLEDGED BY A CREDITOR, IF CREDIT IS goods manufactured or the work done.
NOT PAID ON TIME (Art 2112) 5. (Art. 1707)
1. Debt is due and unpaid.
2. Sale must be at a public auction. NOTE:
3. Notice to the pledgor and owner, stating the 1. In legal pledges, the remainder of the price
amount due. of the sale shall be delivered to the obligor. 331
4. Sale must be made with the intervention of a 2. Public auction of legal pledges may only be
CREDIT TRANSACTIONS
notary public. executed after demand of the amount for
5. If at the first auction the thing is not sold, a which the thing is retained. It shall take
second one with the same formalities shall place within one month after the demand,
be held. otherwise the pledgor may demand the
6. If at the second auction, there is no sale return of the thing pledged, provided s/he is
either, the creditor may appropriate the thing able to show that the creditor did not cause
pledged but he shall give an acquittance the public sale without justifiable grounds.
(release) for his entire claim. (Article 2122)
EFFECT OF THE SALE OF THE THING PAWNSHOP REGULATION ACT PD 114

PLEDGED (Art 2115) SEC 9: Loans granted by pawnshops shall not
1. Extinguishes the principal obligation, be less than 30% of the value of the security
whether the price of the sale is more or less offered, UNLESS the pawner manifests in
than the amount due. writing the desire to borrow a lesser amount.
2. if the price is more than amount due, the
debtor is not entitled to the excess unless SEC 10:
the contrary is provided. a. Interests not to exceed usury law
3. If the price of the sale is less, neither is the b. Pawn broker prohibited from dividing the
creditor entitled to recover the deficiency. A pawn offered to collect greater interest
contrary stipulation is void. c. Pawn broker prohibited from requiring
additional charge for safekeeping /
MANILA BANKING v TEODORO: insurance
In case of doubt as to whether a transaction is a d. Maximum service charge: Php5 to not
pledge or a dation in payment, the presumption more than 1% of the principal loan
is in favor of pledge, the latter being the lesser
transmission of rights and interests (as earlier SEC 13: Pawner who fails to pay his obligation
established in Lopez v. Court of Appeals) on the date it falls due may WITHIN 90 DAYS
from the date of the maturity of the obligation,
LEGAL PLEDGES (Article 2121) REDEEM the pawn by payment of the principal
debt and interest
1. Necessary expenses shall be refunded to
every possessor, but only a possessor in
good faith may retain the thing until he has
been reimbursed.

lOMoARcPSD|3291925
SEC 15: Requisites of public auction of pawned as a security for a debt.

articles a. lien created through equitable mortgage
a. Public auction must be held at the place ought not to be defeated by requiring
of business of the pawn shop, or within compliance with formalities necessary
the municipality or city where it is to the validity of a voluntary real estate
located mortgage. Ex.: Pacto de retro
b. Must be under the control and direction b. ovisions governing equitable mortgage:
of a licensed auctioneer Arts. 1365, 1450, 1454, 1602, 1603,
c. Prior publication one week before the 1604 and 1607.
sale
PRINCIPLE OF INDIVISIBILITY OF PLEDGE /
III. Mortgage MORTGAGE
(ART. 2089 TO 2090)
MORTGAGE is a contract whereby the debtor
secures to the creditor the fulfillment of a DAYRIT v CA: A mortgage directly and
principal obligation, immediately making immediately subjects the property upon which it
immovable property or real rights over is imposed. It is indivisible even though the debt
immovable property answerable to the principal may be divided, and such indivisibility is likewise
obligation in case it is not complied with at the unaffected by the fact that 'the debtors are not
time stipulated. solidarity liable.
OBJECTS OF REAL MORTGAGE (Art. 2124) Central Bank v CA: Where only a portion of the
1. Immovables loan is released, the mortgage becomes
2. Alienable real rights over immovables. enforceable only as to the proportionate value of
332
the loan
Future property cannot be object of mortgage;
CREDIT TRANSACTIONS
however, a stipulation subjecting to the Indivisibility applies only as to
mortgage improvements which the mortgagor pledgors/mortgagors who are themselves
may subsequently acquire, install or use in debtors in the principal obligation, and not to
connection with real property already mortgaged accommodation pledgors / mortgagors
belonging to the mortgagor is valid.
"When several things are pledged or mortgaged,
KINDS each thing for a determinate portion of the debt,
1. Voluntary – constituted by the will of the the pledges or mortgage, are considered
owner of the property on which it is created separate from each other. But when the several
2. Legal – required by law to be executed in things are given to secure the same debt in its
favor of certain persons: entirety, all of them are liable for the debt, and
a. Persons in whose favor the law the creditor does not have to divide his action by
establishes a mortgage have no other distributing the debt among the various things
right than to demand the execution and pledged or mortgaged. Even when only a part of
recording of the document in which the the debt remains unpaid, all the things are still
mortgage is formalized (Article 2125) liable for such balance." (Tolentino)
b. The bondsman who is to be offered in
virtue of a provision of law or of a judicial ESSENTIAL REQUISITES
order shall have the qualifications 1. Constituted to secure the fulfillment of a
prescribed in Art 2056 (integrity, principal obligation.
capacity to bind himself, and sufficient 2. Mortgagor must be the absolute owner of
property to answer the obligation), an in the thing mortgaged.
other laws (Article 2082) 3. The persons constituting the mortgage have
c. If the person bound to give a bond free disposal of the property; in the absence
should not be able to do so, a pledge or thereof, they should be legally authorized for
mortgage considered sufficient to the purpose. (Article 2085)
recover his obligation shall be admitted 4. Cannot exist without a valid obligation. (Art.
in lieu thereof (Article 2083) 2086 cf 2052)
5. When the principal obligation becomes due,
3. Equitable – One which, although lacking the the thing in which the mortgage consists
proper formalities of a mortgage, shows the may be alienated for payment to the
intention of the parties to make the property creditor. (Art. 2087)

lOMoARcPSD|3291925
6. Must appear in a public document duly when the obligation becomes DUE,
recorded in the Registry of Property, to be including indemnity from insurance, and / or
validly constituted. (Art. 2125) amount received from expropriation for
 In a legal mortgage, the persons in whose public use (Art. 2127)
favor the law establishes a mortgage a. Applies only when the accessions and
have the right to demand the execution accessories subsequently introduced
and recording of a document formalizing belongs to the mortgagor.
the mortgage. (Art. 2125, par. 2) b. To exclude them, there must be an
express stipulation, or the fruits must be
EFFECTS collected before the obligation becomes
1. Creates real rights, a lien inseparable from due.
the property mortgaged, enforceable against c. Third persons who introduce
the whole world. improvements upon the mortgaged
2. Creates merely an encumbrance. property may remove them at any time
LAWS GOVERNING MORTGAGE Registration – ministerial act by which deed,

1. New Civil Code. contract or instrument is sought to be inscribed
2. PD 1952. in the office of the Register of Deeds and
3. Revised Administrative Code. annotated at the back of the certificate of title
4. RA 4882, regarding aliens becoming covering the land subject of the deed, title, or
mortgagees contract
5. Act 3135, as amended
6. Property Registration Decree SAMANILLA v CAJUCOM: A mortgage,
7. General Banking Act of 2000 whether registered or not, is binding between the
parties, registration being necessary only to 333
EFFECTS OF A MORTGAGE make the same valid against third persons (Art.
CREDIT TRANSACTIONS
1. It creates a real right, a lien inseparable from 2125, CC).
the property mortgaged
2. If a person is the first mortgagee over a Registration only operates as a notice of the
property sold in an auction sale by the mortgage to others, but neither adds to its
second mortgagee, the only right left to him validity nor convert an invalid mortgage into a
is to collect his mortgage credit from the valid one between the parties. In Gurbax Singh
proceeds of the sale (by virtue of merger of Pabla vs. Reyes, SC ruled that "if the purpose of
rights, Art 1275). registration is merely to give notice, the
3. The first mortgagee has superior rights over questions regarding the effect or invalidity of
junior mortgagees / attaching creditors instruments are expected to be decided after,
not before, registration. It must follow as a
IMPORTANT POINTS necessary consequence that registration must
1. As a general rule, the mortgagor retains first be allowed and validity or effect litigated
possession of the property. He may deliver afterwards".
said property to the mortgagee without
altering the nature of the contract of INCIDENTS OF REGISTRATION OF
mortgage. MORTGAGE
2. It is not an essential requisite that the
1. Mortgagee is entitled to registration of
principal of the credit bears interest, or that
mortgage as a matter of right.
the interest as compensation for the use of
2. Proceedings for registration do not
the principal and the enjoyment of its fruits
determine validity of the mortgage or its
be in the form of a certain percentage effect
thereof. 3. Registration is without prejudice to better
3. Mortgage creates an encumbrance over the
rights of third parties.
property, but ownership of the property is
4. Mortgage deed, once duly registered, forms
not parted with. It merely restricts the
part of the records for the registration of the
mortgagor’s jus disponendi over the
mortgaged property.
property. The mortgagor may still sell the 5. Mortgage by a surviving spouse of his/her
property, and any stipulation to the contrary undivided share in the conjugal property can
is void (Art. 2130)
be registered.
4. Mortgage extends to the natural accessions,
to the improvements of growing fruits and
the rents or income NOT YET RECEIVED

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EFFECT OF INVALIDITY OF MORTGAGE case of chattel mortgage) property involved

ON THE PRINCIPAL OBLIGATION or a portion thereof is situated.
1. Principal obligation remains valid.  If the court finds the complaint to be well-
2. Mortgage deed remains evidence of a founded, it shall order the mortgagor to pay
personal obligation. the amount due with interest and other
charges within a period of not less than 90
MOJICA v CA: Mortgages given to secure future days nor more than 120 days from the entry
advancements are valid and legal contracts; that of judgment. If the mortgagor fails to pay at
the amounts named as consideration in said the time directed, the court, upon motion,
contract do not limit the amount for which the shall order the property to be sold to the
mortgage may stand as security if from the four highest bidder at a public auction.
corners of the instrument the intent to secure  Upon confirmation of the sale by the court,
future and other indebtedness can be gathered. also upon motion, it shall operate to divest
A mortgage given to secure advancements is a the rights of all parties to the action and to
continuing security and is not discharged by vest their rights to the purchaser subject to
repayment of the amount named in the such rights of redemption as may be allowed
mortgage, until the full amount of the by law.
advancements are paid (as established earlier in  Before the confirmation, the court retains
Lim Julian v. Lutero). control of the proceedings
 Execution of judgment subject to APPEAL
but not annulment
IV. Foreclosure of Mortgage (Art. 2085)  The foreclosure of the property is completed
only when the sheriff’s certificate is
FORECLOSURE OF MORTGAGE executed, acknowledged and recorded
It is the remedy available to the mortgagee by 334
which he subjects the mortgaged property to the The proceeds of the sale shall be applied to
CREDIT TRANSACTIONS
satisfaction of the obligation secured by the the payment of the:
mortgage. a. Costs of the sale;
b. Amount due the mortgagee;
 In General: An action for foreclosure of a c. Claims of junior encumbrancers or
mortgage is limited to the amount mentioned persons holding subsequent mortgages
in the mortgage, EXCEPT when the in the order of their priority; and
mortgage contract intends to secure future d. Balance, if any shall be paid to the
loans or advancements mortgagor.
 BLANKET mortgage / DRAGNET–
mortgage that subsumes all debts of past or NATURE OF JUDICIAL FORECLOSURE
future origin PROCEEDINGS:
 Mortgage may be used as a “continuing 1. Quasi in rem action. Hence, jurisdiction may
security” which secures future be acquired through publication.
advancements and is not discharged by the 2. Foreclosure is only the result or incident of
repayment of the amount in the mortgage the failure to pay debt.
 Alienation or assignment of mortgage credit 3. Survives death of mortgagor.
is valid even if it is not registered
EXTRAJUDICIAL FORECLOSURE(Act No.
ACCELERATION CLAUSE, or the stipulation 3135)
stating that on the occasion of the mortgagor’s 1. Applies to mortgages where the authority to
default, the whole sum remaining unpaid foreclose is granted to the mortgagee.
automatically becomes due and demandable, is 2. Authority is not extinguished by death of
ALLOWED mortgagor or mortgagee. This is an agency
coupled with interest.
KINDS OF FORECLOSURE 3. Public sale should be made after proper
1. Judicial Foreclosure notice to the public, otherwise it is a
2. Extrajudicial Foreclosure jurisdictional defect which could render the
sale voidable.
JUDICIAL FORECLOSURE 4. There is no need to notify the mortgagor.
Rule 68, ROC: Proper notice consists of:
 May be availed of by bringing an action in a. posting notice in three public places
the proper court which has jurisdiction over and / or
the area wherein the real or personal (in b. publication in newspaper of general

lOMoARcPSD|3291925
circulation it is referred to as deficiency judgment.

c. purpose of notice is to obtain the best 3. Action for recovery of deficiency may be
bid for the foreclosed property filed even during redemption period.
5. Surplus proceeds of foreclosure sale belong 4. Action to recover prescribes after 10 years
to the mortgagor. from the time the right of action accrues.
6. Debtor (who must be a NATURAL
PERSON) has the right to redeem the EFFECT OF INADEQUACY OF PRICE IN
property sold within 1 year from and after FORECLOSURE SALE
the date of sale. 1. Where there is right to redeem, inadequacy
a. If the mortgagee is a bank and the of price is immaterial because the judgment
debtor is a juridical person, then there debtor may redeem the property.
is no right of redemption. However, it
may redeem the property BEFORE the Exception: Where the price is so inadequate
registration of the TCT to the buyer, as to shock the conscience of the court,
which is similar to the equity of taking into consideration the peculiar
redemption. The TCT must be circumstances.
registered within THREE MONTHS
after the foreclosure. 2. Property may be sold for less than its fair
b. The mortgagor can only legally transfer market value, upon the theory that the lesser
the right to redeem and the use of the the price the easier it is for the owner to
property during the period of redeem.
redemption. 3. The value of the mortgaged property has no
7. Remedy of party aggrieved by foreclosure is bearing on the bid price at the public
a petition to set aside sale and cancellation auction, provided that the public auction was
of writ of possession. However, if the regularly and honestly conducted. 335
mortgagee is a bank, the mortgagor is
CREDIT TRANSACTIONS
required to post a bond equal to the value of WAIVER OF SECURITY BY CREDITOR
the mortgagee’s claim. 1. Mortgagee may waive right to foreclose his
8. Republication is of the notice of sale mortgage and maintain a personal action for
necessary for validity of postponed recovery of the indebtedness.
extrajudicial sale 2. Mortgagee cannot have both remedies.
9. In foreclosure of real estate mortgage under
Act 3135, the buyer at auction may petition REDEMPTION
the land registration court for a writ of 1. It is a transaction by which the mortgagor
possession pending the one-year period of reacquires the property which may have
redemption of the foreclosedproperty. passed under the mortgage or divests the
property of the lien which the mortgage may
Nature of power of foreclosure by have created
extrajudicial sale: 2. Kinds:
1. Conferred for mortgagee’s protection. a. Equity of redemption: in judicial
2. An ancillary stipulation. foreclosure of real estate mortgage
3. A prerogative of the mortgagee. under the ROC, it is the right of the
mortgagor to redeem the mortgaged
Note: property by paying the secured debt
a. Both should be distinguished from within the 120 day period from entry of
execution sale governed by Rule 39, judgment or after the foreclosure sale,
ROC. but before the sale of the mortgaged
b. Foreclosure retroacts to the date of property or confirmation of sale
registration of mortgage.  formal offer to redeem preserves the
c. A stipulation of upset price, or the right of redemption, e.g., by filing an
minimum price at which the property action to enforce the right to redeem
shall be sold to become operative in the
event of a foreclosure sale at public b. Right of redemption: in extrajudicial
auction, is null and void. foreclosure of real estate mortgage, the
right of the mortgagor to redeem the
RIGHT OF MORTGAGEE TO RECOVER property within a certain period after it
DEFICIENCY was sold for the satisfaction of the debt.
1. Mortgagee is entitled to recover deficiency.  For natural persons – one year from
2. If the deficiency is embodied in a judgment, the registration of the TCT

lOMoARcPSD|3291925
 For juridical persons – three months OBLIGATIONS OF ANTICHRETIC CREDITOR

from the foreclosure 1. to pay taxes and charges on the estate,
 Formal offer to redeem must be with including necessary expenses. Creditor may
tender of redemption price to avoid said obligation by:
preserve right of redemption a. compelling debtor to reacquire
enjoyment of the property
NOTE: There is no right of redemption in b. by stipulation to the contrary
pledge and chattel mortgage. 2. to apply all the fruits, after receiving them, to
the payment of interest, if owing, and
MEDIDA v CA: The rule up to now is that thereafter to the principal
the right of a purchaser at a foreclosure sale 3. to render an account of the fruits to the
is merely inchoate until after the period of debtor
redemption has expired without the right 4. to bear the expenses necessary for its
being exercised. The title to land sold under preservation and repair
mortgage foreclosure remains, in the
mortgagor or his grantee until the expiration REMEDIES OF CREDITOR IN CASE OF NON-
of the redemption period and conveyance by PAYMENT OF DEBT
the master's deed 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
V. Antichresis a. The parties, however, may agree on an
extrajudicial foreclosure in the same
ANTICHRESIS is a contract whereby the manner as they are allowed in contracts
creditor acquires the right to receive the fruits of of mortgage and pledge (Tavera v. El 336
an immovable of the debtor, with the obligation Hogar Filipino, Inc. 68 Phil 712)
CREDIT TRANSACTIONS
to apply then to the payment of the interest, if b. A stipulation authorizing the antichretic
owing, and thereafter to the principal of the creditor to appropriate the property upon
credit (Art 2132) the non-payment of the debt within the
agreed period is void (Art. 2088)
CHARACTERISTICS
1. Accessory contract – it secures the VI. Chattel Mortgage
performance of a principal obligation
2. formal contract – it must be in a specified
CHATTEL MORTGAGE is a contract by virtue
form to be valid (Art. 2134)
of which a personal property is recorded in the
SPECIAL REQUISITES: Chattel Mortgage Register as security for the
performance of an obligation.
1. it can cover only the fruits of an immovable
property
If the movable, instead of being recorded, is
2. delivery of the immovable is necessary for
delivered to the creditor, it is pledge and not
the creditor to receive the fruits and not that
chattel mortgage.
the contract shall be binding
3. amount of principal and interest must be
LAWS GOVERNING CHATTEL MORTGAGE
specified in writing
4. express agreement that debtor will give 1. Chattel Mortgage Law (Act.1508, as
possession of the property to creditor and amended).
2. New Civil Code.
that the latter will apply the fruits to the
3. Revised Administrative Code.
interest, if any, then to the principal of his
4. Revised Penal Code.
credit
5. Ship Mortgage Decree of 1978 (PD 1521)
5. NOTE: The obligation to pay interest is not
of the essence of the contract of antichresis; governs mortgage of vessels of domestic
there being nothing in the Code to show that ownership.
antichresis is only applicable to securing the
AFFIDAVIT OF GOOD FAITH
payment of interest-bearing loans. On the
 An oath in a contract of chattel mortgage
contrary, antichresis is susceptible of
guaranteeing all kinds of obligations, pure or wherein the parties "severally swear that the
conditional mortgage is made for the purpose of
securing the obligation specified in the
conditions thereof and for no other purposes

lOMoARcPSD|3291925
and that the same is a just and valid RIGHT OF MORTGAGEE TO RECOVER
obligation and one not entered into for the DEFICIENCY
purpose of fraud. 1. Where mortgage foreclosed: Creditor may
maintain action for deficiency although the
EFFECT OF REGISTRATION Chattel Mortgage Law is silent on this point,
1. Creates real rights. because a chattel mortgage is given only as
2. Adds nothing to mortgage. a security and not as payment of the debt.
2. Where mortgage constituted as security for
Note: Registration of assignment of mortgage is purchase of personal property payable in
not required. installments: No deficiency judgment can be
asked and any contrary agreement shall be
RIGHT OF REDEMPTION OF MORTGAGE void.
1. When the condition of a chattel mortgage is 3. Where mortgaged property subsequently
broken, the following may exercise attached and sold: Mortgagee is entitled to
redemption: deficiency judgment in an action for specific
a. Mortgagor. performance.
b. Person holding a subsequent mortgage.
c. Subsequent attaching creditor. APPLICATION OF PROCEEDS OF SALE
2. An attaching creditor who so redeems shall 1. Costs and expenses of keeping and sale.
be subrogated to the rights of the mortgagee 2. Payment of the obligation.
and entitled to foreclose the mortgage in the 3. Claims of persons holding subsequent
same manner as a mortgagee. mortgages in their order.
3. Redemption is made by paying or delivering 4. Balance, if any, shall be paid to the
to the mortgagee the amount due on such mortgagor, or person holding rights under
mortgage and the costs and expenses him. 337
incurred by such breach of condition before
CREDIT TRANSACTIONS
the sale.
FORECLOSURE OF CHATTEL MORTGAGE

1. Public sale.
2. Private sale – There is nothing illegal,
immoral or against public order in an
agreement for the private sale of the
personal properties covered by chattel
mortgage.
PERIOD TO FORECLOSE
1. After 30 days from the time of the condition
is broken.
2. The 30-day period is the minimum period
after violation of the mortgage condition for
the creditor to cause the sale at public
auction with at least 10 days notice to the
mortgagor and posting of public notice of
time, place, and purpose of such sale, and is
a period of grace for the mortgagor, to
discharge the obligation.
3. After the sale at public auction, the right of
redemption is no longer available to the
mortgagor.
CIVIL ACTION TO RECOVER CREDIT

1. Independent action to recover debt is not
required.
2. However, mortgage lien is deemed
abandoned by obtaining a personal
judgment.

lOMoARcPSD|3291925
5. Property held by the insolvent debtor as a

Chapter VIII. Concurrence and trustee of an express or implied trust, shall
Preference of Credits be excluded from the insolvency
proceedings
I. GENERAL PROVISIONS
II. CLASSIFICATION OF CREDITS
III. PREFERENCE OF CREDITS
II. Classification of Credits
1. Special preferred credits. (Art. 2241 and
2242, CC)
CONCURRENCE OF CREDIT implies a. Considered as mortgages or pledges of
possession by two or more creditors of equal real or personal property or liens within
right or privileges over the same property or all the purview of legal provisions
of the property of a debtor. governing insolvency.
b. Taxes due to the State shall first be
PREFERENCE OF CREDIT is the right held by satisfied.
a creditor to be preferred in the payment of his 2. Ordinary preferred credits (Art. 2244) –
claim above other out of the debtor’s assets. Preferred in the order given by law.
3. Common credits (Art. 2245) – Credits of any
other kind or class, or by any other right or
I. General Provisions
title not comprised in Arts. 2241- 2244 shall
1. The debtor is liable with all his property, enjoy no preference.
present and future, for the fulfillment of his
obligations, subjects to exemptions provided
III. Preference of Credits
by law.
1. Credits which enjoy preference with respect
Exempted property: to specific movables exclude all others to 338
a. Present property: the extent of the value of the personal
CREDIT TRANSACTIONS
 Family home. (Arts. 152, 153 and property to which the preference refers.
155, CC) 2. If there are 2 or more credits with respect to
 Right to receive support, as well as the same specific movable property, they
money or property obtained by such shall be satisfied pro rata, after the payment
support, shall not be levied upon on of duties, taxes and fees due the State or
attachment or execution. (Art. 205, any subdivision thereof
CC) 3. Those credits which enjoy preference in
 Sec. 13, Rule 39, ROC. relation to specific real property or real rights
 Sec 118, Public Land Act. (CA 141, exclude all others to the extent of the value
as amended) of the immovable or real right to which the
b. Future property: A debtor who obtains a preference refers.
discharge from his debts on account of 4. If there are 2 or more credits with respect to
insolvency, is not liable for the the same specific real property or real rights,
unsatisfied claims of his creditors with they shall be satisfied pro rata, after the
said property. (Sec. 68 and 69, payment of the taxes and assessment of the
Insolvency Law, Act 1956) taxes and assessments upon the immovable
c. Property in custodia legis and of public property or real right.
dominion. 5. The excess, if any, after the payment of the
2. Insolvency shall be governed by the credits which enjoy preference with respect
Insolvency Law. (Act 1956, as amended) to specific property, real or personal, shall
3. Exemption of conjugal property or absolute be added to the free property which the
community or property, provided that: debtor may have, for the payment of other
a. Partnership or community subsists. credits.
b. Obligations of the insolvent spouse have 6. Those credits which do not enjoy any
not redounded to the benefit of the preference with respect to specific property,
family. and those which enjoy preference, as to the
4. If there is co-ownership, and one of the co- amount not paid, shall be satisfied according
owners is the insolvent debtor, his undivided to the following rules:
share or interest in the property shall be a. Order established by Art 2244
possessed by the assignee in insolvency b. Common credits referred to in Art 2245
proceedings because it is part of his assets. shall be paid pro rata regardless of
dates
-end of Credit Transactions -

lOMoARcPSD|3291925

lOMoARcPSD|3291925
AGENCY
Table of Contents
Chapter I. Nature, Form, and Kinds of Agency

.......................................................................341
I. Definition [Art. 1868, CC] ..................341
II. Purpose .............................................341
III. Characteristics [CNPPBF].................342
IV. Essential Elements............................342
V. Determination of Existence of Agency
342
VI. Agency v Similar Contracts ...............343
VII. Kinds .............................................344
Chapter II. Obligations of the Agent...........348

I. To Carry Out the Agency ..................348
III. To Advance the Necessary Funds [Art.
1886, CC]...................................................349
IV. To Act in Accordance with Principal’s
Instructions.................................................349
V. To Prefer Interest of Principal Over
Personal Interest........................................349
VI. To Render Accounts and Deliver Things
Received by Virtue of the Agency..............349
VII. To Be Responsible for Substitutes350
VIII. To Pay Interest .............................350 340
IX. To Answer for His Negligence or Fraud
AGENCY
[Art. 1909, CC] ...........................................350
X. Special Obligations of Factor/
Commission Agents ...................................350
Chapter III. Liabilities of the Agent .............352

I. Liability to Third Persons...................352
II. Liability to the Principal .....................352
III. Liability of Two or More Agents.........353
Chapter IV. Obligations of the Principal ...354

contracted by the agent .............................354
II. To Advance the Necessary Sums and
Reimburse the Agent .................................355
III. To Indemnify the Agent for Damages355
IV. To Pay the Agent’s Compensation ...356
V. To Be Solidarily Liable ......................356
Chapter V. Extinguishment of Agency......357

Extinguishment of Agency [EDWARD] ......357
I. Expiration of the period for which it was
constituted..................................................357
II. Death, civil interdiction, insanity,
insolvency ..................................................357
III. Withdrawal of the agent ....................357
agency .......................................................357
V. Revocation ........................................357
entrusted/accepted the agency..................358

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. NATURE, FORM, and KINDS of AGENCY
Chapter I. Nature, Form, and Kinds of

AGENCY & PARTNERSHIP TEAM
AGENCY & PARTNERSHIP

Agency
Prof. Roberto N. Dio
Faculty Editor
I. DEFINITION
Genevieve E. Jusi
Lead Writer II. PURPOSE
III. CHARACTERISTICS
Joyce Anne C. Roldan
Writer IV. ESSENTIAL ELEMENTS
V. DETERMINATION OF EXISTENCE
CIVIL LAW VI. AGENCY V SIMILAR CONTRACTS
Kristine Bongcaron VII. KINDS
Patricia Tobias
Subject Editors
I. Definition [Art. 1868, CC]
ACADEMICS COMMITTEE By the contract of agency,
Kristine Bongcaron 1. a person (agent) binds himself
Michelle Dy 2. to render some service or to do something in
Patrich Leccio representation or on behalf of another
Editors-in-Chief (principal),
PRINTING & DISTRIBUTION 3. with the consent or authority of the latter.
Kae Guerrero
II. Purpose
DESIGN & LAYOUT The purpose of agency is to extend the
Pat Hernandez principal’s personality.
Viktor Fontanilla The personality of the principal is extended
Rusell Aragones through the facility of the agent. In so doing,
Romualdo Menzon Jr. the agent, by legal fiction, becomes the
Rania Joya principal, authorized to perform all acts
which the latter would have him do. The 341
LECTURES COMMITTEE
relationship can only be effected with the
AGENCY
Michelle Arias
consent of the principal, which must not, in
Camille Maranan
Angela Sandalo
any way, be compelled by law or by any
Heads court. (Litonjua, Jr. v. Eternit Corp.)
Sam Nuñez Krizel Malabanan What acts may be authorized
Arianne Cerezo Marcrese Banaag 1. General Rule: What a man may do in
Volunteers person, he may do thru another.
2. Exceptions—
MOCK BAR COMMITTEE a. Personal acts
Lilibeth Perez b. Criminal acts
c. Unlawful acts
Dahlia Salamat Theory of Imputed knoweldge
1. General Rule: For knowledge of agent to be
LOGISTICS imputed to the principal, there must be:
Charisse Mendoza a. Actual notice to the agent;
b. The notice must pertain to a matter of
SECRETARIAT COMMITTEE fact and not of law; and
Jill Hernandez c. The fact must be within the scope of the
Head agent’s authority.
2. Exceptions—
Mary Mendoza Joie Bajo a. Agent’s interests are adverse to those of
Members the principal;
b. Agent’s duty is not to disclose
information;
c. 3rd person claiming the benefit of the
rule colludes with agent to defraud
principal.

lOMoARcPSD|3291925
Note—The theory of imputed knowledge public into believing that the relationship or
ascribes the knowledge of the agent, to the the authority exists.
principal, not the other way around. The
knowledge of the principal can’t be imputed to its The principal is bound by the acts of his
agent. (Sunace Internat’l Mgt. Services v. NLRC, agent with the apparent authority which he
2006) knowingly permits the agent to assume, or
which he holds the agent out to the public as
III. Characteristics [CNPPBF] possessing. The question in every case is
whether the principal has by his voluntary
1. Consensual: perfected by mere consent
act placed the agent in such a situation that
2. Nominate: has its own name
a person of ordinary prudence, conversant
3. Preparatory: purpose is the execution of a
with business usages and the nature of the
juridical act in relation to a third person
particular business, is justified in presuming
4. Principal: can stand by itself without need of
that such agent has authority to perform the
another contract
particular act in question. (Professional
5. Bilateral: gives rise to reciprocal rights and
Services Inc. vs. Agana, G.R. No. 126297)
obligations
6. Fiduciary: since it is based on trust and
One who clothes another with apparent
confidence
authority as his agent, and holds him out to
the public as such, cannot be permitted to
IV. Essential Elements deny the authority of such person to act as
Essential Elements [CORS] (Rallos v Felix Go his agent, to the prejudice of innocent third
Chan, 1978) parties dealing with such person in good
1. Consent, express or implied, of the parties faith. (Macke v Camps, 1907)
to establish the relationship
2. Object is the execution of a juridical act in Capacity of the parties
relation to a third person The principal must be capacitated to give
3. Agent acts as a Representative and not for consent. 342
himself
AGENCY
4. Agent acts within the Scope of his authority The agent must have the capacity to enter
into contracts although he/she may not have
Intent to establish agency essential the capacity to enter into the particular
General Rule— contract subject of the agency
1. On the part of the principal there must be an
intention to appoint or an intention naturally However, as between the principal and the
inferable from his words or actions; and agent, the agent can set up his incapacity
2. On the part of the agent, there must be an provided he is not estopped. [Paras, Civil
intention inferable from words or deeds to Code of the Philippines Annotated]
accept the appointment and act on it.
Exception—
1. Agency by estoppel; and V. Determination of Existence of Agency
2. Agency by operation of law
Designation by parties—is not controlling.
Agency by Estoppel—
Fact of existence
1. The principal manifested a representation of
If relations that constitute agency exist, there
the agent’s authority or knowlingly allowed
is agency regardless of whether or not the
the agent to assume such authority;
parties understood the exact nature of the
2. The third person, in good faith, relied upon
relation.
such representation;
3. Relying upon such representation, such third
No presumption of existence
person has changed his position to his
1. General Rule: Agency must exist as a fact.
detriment. (Litonjua vs. Eternit Corporation,
2. Exceptions:
G.R. No. 144806)
a. When agency arises ipso jure
b. To prevent unjust enrichment
Apparent Authority—
It imposes liability, not as the result of the
Intention of the parties to create—
reality of a contractual relationship, but
The nature of the contract depends on the
rather because of the actions of a principal
intention of the parties as gathered from
or an employer in somehow misleading the

lOMoARcPSD|3291925
their words and actions and the 3. Subagents

circumstances of the case. Agents of the agent The employees of the
can be controlled by contractor are not the
As between principal and 3rd person, the principal employees of the
however, agency may exist without the employer of the
contractor
express consent of the agent.
Lease of Service
Keeler Rule (Harry Keeler Electric v
Agency Lease of Service
Rodriguez, 1922)
1. Against the principal, the third party has the 1. Basis
Basis is Basis is employment
obligation to determine existence and scope
representation
of agency and has the burden of proof in 2. Purpose
case the principal denies it Execution of a juridical Execution a piece of
2. Against the agent, the third person deals act in relation to a work or rendering of
with him at his own peril. A third person may third person service
require the presentation of the POA or the 3. Authorized Acts
principal’s instructions as regards the The agent is destined Lease of services
agency (Art. 1902) to execute juridical contemplate only
3. The person dealing with the agent must also acts (creation, material acts.
act with ordinary prudence and reasonable modification or
diligence. If he knows or has good reason to extinction of relations
with third parties)
believe that the agent is exceeding his
4. Discretion
authority, he cannot claim protection.
Agent exercises Lessor ordinarily
discretionary powers. performs only
ministerial functions.
VI. Agency v Similar Contracts 5. Parties
3 parties: Principal, 2 parties: Lessor and
Partnership agent and the 3rd lessee. 343
1. An agent acts not for himself, but for his person with whom the
AGENCY
agent contracts
principal; a partner can act for himself, for
his firm, and for his partners
2. Parity of Standing Test— Lease of Property
A partnership generally presupposes a Agency Lease of Property
parity of standing between the partners, in 1. Control
The agent acts under Lessee is not
which each party has an equal proprietary
the control and controlled by the
interest in the capital or property contributes instruction of the lessor
& where each party exercises equal rights in principal.
the conduct of the business. (Sevilla v CA,
1988) 2. Things involved
Agency may involve Lease of property only
Independent Contractor (IC) things other than involves property
Agency IC property
1. Control
The agent acts under The IC is authorized to 3. Binding power
the control and do the work according Agent can bind the Lessee cannot bind
instruction of the to his own method, principal the lessor
principal. without being subject
to the other party’s
control, except insofar Agency to Sell v Sale
as the result of the Agency to Sell Sale
work is concerned 1. Ownership of goods
Agent receives the Buyer receives the
goods as the goods of goods as owner
2. Liability for tort the principal
Principal is liable for Employer not liable for
torts committed by the torts committed by the 2. Payment
agent within the scope independent Agent delivers Buyer pays the price
of his authority. contractor. proceeds of the sale to
the principal

lOMoARcPSD|3291925
3. Return of goods VII. Kinds

Generally, the agent generally, buyer
can return the goods cannot return the As to Manner of Creation
in case he is unable to goods bought 1. Express
sell them to a third a. Agent has been actually authorized by
person the principal
4. Discretion b. Agency may be oral or in writing, unless
Agent exercises Lessor ordinarily the law requires a specific form. [Art.
discretionary powers. performs only 1869, CC]
ministerial functions. 2. Implied
5. Parties a. On the part of the principal:
Agent in dealing with Buyer can deal with
 From his acts
thing received is the thing as he
bound to act according pleases, being the
 his silence or lack of action;
to the instructions of owner.  his failure to repudiate the agency
his principal; knowing that another person is
acting on his behalf without authority
Agency to Buy v Sale [Art. 1869, CC]
Agency to Buy Sale b. On the part of the agent:
1. Ownership of goods  from his acts which carry out the
The agent acquires The buyer acquires agency;
ownership in behalf of ownership for himself.  from his silence or inaction
the principal according to the circumstances [Art.
2. Changes in price 1870, CC]
Generally, any change Buyer cannot adjust
in the price should be the price already Acceptance of the Agency—
borne by the principal agreed upon.  Between persons who are present
3. Payment
 Principal delivers his power of
The agent pays the Buyer pays the price
attorney to the agent; and
purchase price in 344
behalf of the principal  Agent receives it without
objection [Art. 1871, CC]
AGENCY
Guardianship  Between persons who are absent:
Agency Guardianship  General Rule: Acceptance
1. Person represented cannot be implied from the
Agent represents a A guardian represents silence of the agent
capacitated person an incapacitated  Exceptions
person. i. when the principal transmits
2. Source of authority his POA to the agent, who
Agent is appointed by Guardian is appointed receives it without any
the principal and can by the court or by law. objection;
be removed by the ii. when the principal entrusts to
latter. him by letter or telegram a
3. Control POA with respect to the
The agent acts under Guardian is not subject
business in which he is
the control of the to the directions of the
principal. ward but must act for habitually engaged as an
the benefit of the latter. agent, and he did not reply to
4. Discretion the letter [Art. 1872, CC]
Agent exercises Lessor ordinarily
discretionary powers. performs only c. Agency by estoppel
ministerial functions.  If a person specially informs another
5. Binding power or states by public advertisement
Agent can make the Guardian has no that he has given a power of
principal personally power to impose attorney to a third person, the latter
liable. personal liability on the becomes a duly authorized agent,
ward.
even if previously there was never a
meeting of minds between them.
 The power shall continue to be in
full force until the notice is rescinded
in the same manner in which it was
given. [Art. 1869, CC]

lOMoARcPSD|3291925
d. In Litonjua, Jr. v. Eternit Corp. (2006), General Agency Special Agency

the following must be present for agency 1. Scope of authority
by estoppels to exist: All acts connected with Specific acts in
 the principal manifested a the business or pursuance of particular
representation of the agent’s employment in which he instructions or with
authority or knowingly allowed the is engaged. restrictions necessarily
implied from the act to be
agent to assume such authority;
done.
 the third person, in good faith, relied 2. Nature of service authorized
upon such representation; Involves continuity of No continuity of service.
 relying upon such representation, service.
such third person has changed his 3. Extent to which agent may bind principal
position to his detriment. May bind his principal by Cannot bind his principal
an act within the scope of in a manner beyond or
As to Formalities his authority although it outside the specific acts
General Rule— may be contrary to the which he is authorized to
Agency may be oral or in writing [Art. 1869, latter’s special perform.
CC] instructions.
4. Termination of authority
Exceptions—
Apparent authority does Duty imposed upon the
a. When the law requires a specific form not terminate by the mere 3rd party to inquire
[Art. 1869, CC] revocation of his authority makes termination of the
b. Sale of a piece of land or any interest without notice to the 3rd relationship as between
therein— party. the principal and agent
When a sale of a piece of land or any effective as to such 3rd
interest therein is through an agent, the party, unless the agency
authority of the latter shall be in writing; has been entrusted for
otherwise, the sale shall be void. [Art. the purpose of
1874, CC] contracting with such 3rd
party. 345
5. Construction of principal’s instructions
AGENCY
It is not necessary that the real property Merely advisory in nature. Strictly construed as they
to be sold be precisely described in the limit the agent’s authority.
written authority of the agent. It is
sufficient if the authority is so expressed As to Authority Conferred
as to determine without doubt the limits 1. Agency may be couched in general or
of the agent’s authority. [Jimenez v specific terms
Rabot, 1918] a. Couched in general terms [Art. 1877,
CC]—
As to Cause or Consideration— If couched in general terms, it comprises
Agency may be onerouse or gratuitous only acts of administration, EVEN IF:
a. General Rule—Agency is presumed to  the principal states that he withholds
be for compensation [Art. 1875, CC] no power; or
b. Exception—There is proof to the  he states that the agent may
contrary [Art. 1875, CC] execute such acts as he may
consider appropriate; or
As to Extent of Business Covered  the agency should authorize a
1. Universal— general and unlimited management
A universal agent is one authorized to b. Couched in specific terms—authorizing
do all acts for his principal which can only the performance of specific act/acts
lawfully be delegated to an agent. 2. Power of Attorney
[Siasat v. IAC (1985)] Definition—
2. General— Written authorization to an agent to
It comprises all the business of the perform specified acts in behalf of his
principal [Art. 1876, CC] principal which acts, when performed,
3. Special— shall have binding effect on the principal
It comprises one or more specific [2 Am. Jur. 30]
transactions [Art. 1876, CC] Purpose—
Not to define the agent’s authority, but to
evidence such authority to 3rd parties

lOMoARcPSD|3291925
Interpretation— Note—
General Rule: Power of Attorney should a. Art. 1878 refers to the nature of the
be strictly construed authorization, not to its form. Even if a
Exception: When strict construction will document is titled as a general power of
destroy the very purpose of the power attorney, the requirement of special
power of attorney is met if there is a
Special Power of Attorney— clear mandate from the principal
A special power of attorney is an specifically authorizing the performance
authority granted by the principal to the of the act (Bravo-Guerrero v Bravo,
agent where the act for which it is drawn 2005)
is expressly mentioned. [Strong v. b. What SPA to sell/mortgage does not
Repide, 1906] include [Art. 1879, CC]
 A special power to sell excludes the
A special power can be included in a power to mortgage;
general power of attorney, either by  Special power to mortgage does not
giving authority for all acts of a particular include the power to sell.
character or by specifying therein the c. A special power to compromise does not
act/transaction for which a special power authorize submission to arbitration. [Art.
is needed. [Tolentino] 1880, CC]
d. The power to legally compel the
3. When special powers are necessary [Art. payment of debts owing to the principal
1878, CC] (PNC-WIG-LLB-PORIRS): is an express grant of the right to bring
a. to make such Payments as are not suit for the collection of such debts.
usually considered acts of administration (Germann & Co v Donaldson, 1901)
b. to effect Novations which put an end to e. A power of attorney “to loan and borrow
obligations already in existence at the money” and to mortgage the principal’s
time the agency was constituted property does not carry with it or imply
a. Compromise, to submit questions to that that the agent has a legal right to 346
arbitration, to renounce the right to make the principal liable for the personal
AGENCY
appeal from a judgment, to waive debts of the agent. (BPI v De Coster,
objections to the venue of an action or to 1925)
abandon a prescription already acquired f. Unless the contrary appears, the
b. to Waive any obligation gratuitously authority of an agent must be presumed
c. to enter into any contract by which the to include all the necessary and usual
ownership of an Immovable is means of carrying the agency into effect.
transmitted or acquired either (Macke v Camps, 1907)
gratuitously or for a valuable g. If agent is empowered to borrow
consideration money—the agent may be the lender at
d. to make Gifts, except customary ones the current rate of interest.
for charity or those made to employees h. If agent is empowered to lend money at
in the business managed by the agent; interest—the agent cannot borrow the
e. to Loan or borrow money, unless the money without the consent of the
latter act be urgent and indispensable principal
for the preservation of the things which i. Effect of lack of SPA where one is
are under administration required— It is neither accurate not
f. to Lease any real property to another correct to conclude that the absence of
person for more than one year SPA (where one is required by law)
g. to Bind the principal to render some renders the contract entered into by
service without compensation virtue of said SPA void. The contract is
h. to bind the principal in a contract of merely unenforceable. (Dungo v
Partnership Lopena, 1962, citing Art. 1403(1), CC)
i. to Obligate the principal as a guarantor
or surety As to Nature and Effects
j. to create or convey Real rights over 1. Ostensible or Representative—agent acts in
immovable property the name and representation of the principal
k. to accept or repudiate an Inheritance 2. Simple or Commission—agent acts in his
l. to Ratify or recognize obligations own name but for the principal’s account
contracted before the agency 3. Agency by Estoppel—there is no agency,
m. any other act of Strict dominion and the alleged agent seemed to have

lOMoARcPSD|3291925
apparent or ostensible, but not real, As to Kinds of Principal

authority to represent another 1. Principal may be:
a. Disclosed
Apparent Authority Agency by Estoppel b. Partially disclosed—third persons are
Though not actually Where the principal, by unaware of principal’s identity
granted, principal his acts or omission, c. Undisclosed—agent acts in his own
knowingly permits or permits his agent to name
holds out the agent as exercise powers not 2. General Rule [Art. 1883, CC]
possessing the granted to him, even If the principal is undisclosed (agent acts in
necessary powers to act though the principal may
in a certain way. have no notice or
his own name):
knowledge of the conduct a. the agent is the one directly bound in
of the agent. favor of the person with whom he has
contracted, as if the transaction were his
Implied Agency Agency by Estoppel own
Principal alone is liable. If caused by the principal, b. the principal has no right of action
he is responsible. If against the persons with whom the
caused by the agent, he agent has contracted; neither have such
is responsible. Provided, persons against the principal.
rd
3 person in good faith. Exception [Art. 1883, CC]
a. When the contract involves things
4. When the principal ratifies the acts of the belonging to the principal
agent b. Exception qualified by National Bank v
a. Conditions for ratification (CaP-DECK) Agudelo, 1933—
i. The principal must have Capacity For the principal to be bound by the
and Power to ratify act of an agent who contracted in
ii. The act must be Done in behalf of his [agent’s] own name, it is not
the principal sufficient that the contract involved
iii. He must ratify the acts in its Entirety things belonging to the principal. 347
iv. The act must be Capable of The agent should also have acted
AGENCY
ratification within his scope of authority.
v. He must have had Knowledge of [National Bank v Agudelo, 1933;
material facts. Rural Bank of Bombon v CA, 1992]
b. Effects of ratification
i. With respect to the agent: It relieves 3. Agent may still be sued even if principal is
the agent from liability. He may also undisclosed and contract involved things
recover compensation belonging to the principal.—
ii. With respect to the principal: He Even if the principal is undisclosed and
assumes responsibility for the the contract involved things belonging to
unauthorized act, as fully as if the the principal, the third person who
agent had acted under original contracted with the agent has a right of
authority; but he is not liable for acts action not only against the principal but
outside the authority approved by also against the agent, when the rights
his ratification. and obligations which are the subject
iii. With respect to 3rd persons: They matter of the litigation cannot be legally
are bound by ratification. They and juridically determined without
cannot question agent’s authority. hearing both of them. In such case, the
agent being a necessary party to the full
Ratification Estoppel and complete determination of the case
Rests on intention Rests on prejudice which originated from his act should be
Affects the entire Affects only relevant included in the case as defendant.
transaction from the parts of the transaction. [Beaumont v Prieto, 1921]
beginning.
The substance of The substance of

ratification is confirmation estoppel is the principal’s
of unauthorized acts or inducement to another to
conduct after it has been act to his prejudice.
done.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. OBLIGATIONS of the AGENT
Chapter II. Obligations of the Agent II. To Act Within the Scope of His
Authority [Art. 1881, CC]
I. TO CARRY OUT THE AGENCY
II. TO ACT WITHIN THE SCOPE OF HIS Authority is the power of the agent to affect the
AUTHORITY legal relations of his principal by acts done in
III. TO ADVANCE NECESSARY FUNDS accordance with the principal’s manifestations of
IV. TO ACT IN ACCORDANCE WITH consent.
INSTRUCTIONS
V. TO PREFER PRINCIPAL’S INTEREST OVER
PERSONAL INTEREST When agent acting within the scope of his
VI. NOT TO LOAN TO HIMSELF WITHOUT authority—
PRINCIPAL’S CONSENT 1. When he is performing acts which are
VII. TO RENDER ACCOUNT AND DELIVER conducive to the accomplishment of the
THINGS RECEIVED BY VIRTUE OF AGENCY purpose of the agency [Art. 1881, CC]
VIII. TO BE RESPONSIBLE FOR SUBSTITUTES 2. If the agency has been performed in a
IX. TO PAY INTEREST manner more advantageous to the principal
X. TO ANSWER FOR HIS FRAUD/NEGLIGENCE
than that specified by him [Art. 1882, CC]
XI. SPECIAL OBLIGATIONS OF
FACTOR/COMMISSION AGENTS 3. Insofar as third persons, when the agent’s
act is within the terms of the power of
attorney, as written, even if the agent has in
I. To Carry Out the Agency fact exceeded the limits of his authority
Obligation to carry out the agency he according to an understanding between the
accepted [Art. 1884, CC]— principal and the agent. [Art. 1900, CC]
1. The agent is bound by his acceptance to
carry out the agency own Note:
rd
2. He shall be liable for damages that the 1. A 3 person with whom the agent wishes to
principal may suffer due to his non- contract on behalf of the principal may
performance [Art. 1884, CC] require the presentation of a power of
attorney or the principal’s instructions [Art. 348
Exception: An agent shall not carry out an 1902, CC]
AGENCY
agency if its execution would manifestly result in 2. The scope of the agent’s authority is what
loss or damages to the principal. [Art. 1888, CC] appears in the written terms of the power of
attorney. While third persons are bound to
Obligation to finish business began on inquire into the extent or scope of the
principal’s death [Art. 1884, CC]— agent’s authority, they are not required to go
The agent must finish the business already beyond the terms of the written power of
begun on the death of the principal, should attorney. [Siredy Enterprises, Inc. v CA,
delay entail any danger 2002]
Obligation should he decline the agency [Art. Effect when agent acts within the scope of
1885, CC]— his authority—
1. He is bound to observe the diligence of a 1. General Rule— The agent who acts as such
good father of a family in the custody and is not personally liable to the party with
preservation of the goods forwarded to him whom he contracts
by the owner until the latter should appoint 2. Exceptions—
an agent or take charge of the goods a. If he expressly bound himself [Art. 1897,
2. However, the owner must act as soon as CC]
practicable either by appointing an agent or b. If he exceeds the limits of his authority
by taking charge of the property without giving such party sufficient
notice of his powers [Art. 1897, CC]
Obligation to continue agency should he c. If he acted in his own name; except if
withdraw [Art. 1929, CC]— the contract involves things belonging to
The agent, even if he should withdraw from the principal [Art. 1883, CC]
the agency for a valid reason, must continue
to act until the principal has had reasonable
opportunity to take the necessary steps to
meet the situation.

lOMoARcPSD|3291925
III. To Advance the Necessary Funds V. To Prefer Interest of Principal Over

[Art. 1886, CC] Personal Interest
General Rule—
The agent is bound to advance necessary Rule in case of conflict of interest
funds, should there be a stipulation to do so. 1. General Rule—
Exception— The agent shall be liable for damages if,
When the principal is insolvent there being a conflict between his
interests and those of the principal, he
IV. To Act in Accordance with Principal’s should prefer his own. [Art. 1889, CC]
Instructions
2. Exceptions—
a. The principal waives the benefit of the
Obligation to act in accordance with rule, provided he does so with full
principal’s instructions— knowledge of the facts.
In the execution of the agency, the agent b. The interests of the agent are superior,
shall act in accordance with the instructions ex., agency coupled with an interest.
of the principal. [Art. 1887, CC]
Agent prohibited from purchasing property
Obligation in the absence of instructions— of principal—
Agent shall do all that a good father of a 1. General Rule—
family would do, as required by the nature of The agent cannot acquire by purchase,
the business [Art. 1887, CC] even at a public or judicial auction,
either in person or through the mediation
When private orders and instructions not of another property whose
binding to third persons— administration or sale may have been
Private or secret orders and instructions of entrusted to them.
the principal do not prejudice third persons 2. Exception—
who have relied upon the power of attorney The principal has consented to the 349
or instructions shown them. [Art. 1902, CC] purchase. [Art. 1491(2), CC]
AGENCY
Effect when agent acts in accordance with
principal’s orders— VI. To Render Accounts and Deliver
Principal cannot set up the ignorance of the Things Received by Virtue of the
agent as to circumstances whereof he Agency
himself was, or ought to have been aware
[Art. 1899, CC] Obligation to account and deliver [Art. 1891,
CC]—
Authority v Instructions Every agent is bound to:
Authority Instructions 1. render an account of his transactions; and
The sum total of the Only a private rule of 2. deliver to the principal whatever he may
powers committed or guidance to the agent have received by virtue of the agency, even
permitted to the agent though it may not be owing to the principal.
Relates to the subject Refers to the manner
(biz/transaction) with or mode of agent’s
Effect of failure to comply—
which the agent is action with respect to
empowered to deal or matters within the If he fails to do so or uses the
act. permitted scope of money/property for his own use, the agent is
action. liable for estafa [Art. 315, RPC]
Limits of authority to Binding only on the
operate vs those who principal and agent Contrary stipulation void—
have/are charged with Every stipulation exempting the agent from
knowledge of them. the obligation to render an account shall be
void [Art. 1891, CC]
When not applicable (LIM)—

1. A right of Lien exists in favor of the agent.
2. The agent or broker Informed the principal of
the gift or bonus or profit he received from
the vendee, and the principal did not object.

lOMoARcPSD|3291925
3. If the agent or broker acted only as a b. To avoid liability, he should make a

Middleman with the task of merely bringing written statement of the damage and
together the vendor and vendee (Domingo v deterioration suffered by the same upon
Domingo) receiving them
2. When handling goods of the same kind and
VII. To Be Responsible for Substitutes mark with different owners [Art. 1904, CC]—
He should distinguish the goods by
countermarks, and designate the
The agent shall be responsible for the acts of
merchandise respectively belonging to
his substitute:
each principal.
1. when he was not given the power to appoint
3. Not to sell on credit without express consent
one; or
[Art. 1905, CC]—
2. when he was given such power, but without
The commission agent cannot, without
designating the person, and the person
the express or implied consent of the
appointed was notoriously incompetent or
principal, sell on credit.
insolvent.
Should he do so:
a. the principal may demand from him
The agent may appoint a substitute if the
payment in cash
principal has not prohibited him from doing so.
b. but the commission agent shall be
All acts of the substitute appointed against the
entitled to any interest or benefit,
prohibition of the principal shall be void
which may result from such sale
4. To inform the principal of sale made on
Principal may also bring an action against the
credit, if authorized to do so [Art. 1906,
substitute with respect to the obligations which
CC]—
the latter has contracted under the substitution.
a. Should the commission agent, with
[Art. 1893, CC]
authority of the principal, sell on credit,
he shall so inform the principal, with a
VIII. To Pay Interest statement of the names of the buyers 350
The agent owes interest on: b. Should he fail to do so, the sale shall be
AGENCY
1. the sums he has applied to his own use from deemed to have been made for cash
the day on which he did so insofar as the principal is concerned.
2. those which he owes after the 5. To indemnify principal for damages for
extinguishment of the agency failure to collect the credits of his principal
when they fall due [Art. 1908, CC]—
IX. To Answer for His Negligence or General Rule:
Fraud [Art. 1909, CC] The commission agent who does not
collect the credits of his principal at the
The agent is responsible not only for fraud, but time when they become due and
also for negligence demandable shall be liable for damages
Exception
Liability shall be judged with more or less rigor If he proves that he exercised due
by the courts, according to whether the agency diligence for that purpose
was or was not for a compensation 6. When he receives a guarantee commission
(del credere commission) [Art. 1907, CC]—
X. Special Obligations of Factor/ a. Bear the risk of collection
Commission Agents b. Pay the principal the proceeds of the
sale on the same terms agreed upon
Definition— with the purchaser
one whose business is to receive & sell
goods for a commission, and is entrusted by Ordinary Agent v Commission Agent
the principal with its possession [Mechem Ordinary Agent Commission Agent
on Agency] Acts for and in Acts in his own name or
behalf of the in that his principal.
principal.
Obligations of a commission agent Need not have Must be in possession
1. For goods received [Art. 1903, CC] possession of the of the goods of the
a. He shall be responsible for the goods goods of the principal.
received by him in the terms and principal.
conditions and as described in the
consignment

lOMoARcPSD|3291925
Broker v Commission Agent (Pacific

Commercial v Yatco, 1939)
Broker Commission Agent
Has no custody or Engaged in the
possession of the purchase and sale, for
thing he disposes; a principal, of personal
merely acts as an property which has to
intermediary between be placed in his
the sellers and the possession and
buyer. disposal.
Maintains no relation Has a relation with the
with the thing which principal (buyers or
he purchases or sells. sellers) and the
property which is the
object of the
transaction.
351
AGENCY

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter III. LIABILITIES of the AGENT
2. the two contracts are incompatible with each

Chapter III. Liabilities of the Agent other
3. the agent acted in bad faith
I. LIABILITITY TO THIRD PERSONS 4. agent shall be liable for damages to third
II. LIABILITY TO THE PRINCIPAL person whose contract must be rejected
III. LIABILITY OF TWO OR MORE AGENTS
II. Liability to the Principal

I. Liability to Third Persons
Agent is liable for damages—
Agent not personally liable as a general 1. Due to non-performance of agency—
rule— The agent is liable for the damages which,
General Rule thru his non-performance, the principal
An agent who acts as such is not personally may suffer [Art. 1884, CC]
liable to the party with whom contracts [Art. 2. For preferring personal interest to that of
1897, CC] principal—
The agent shall be liable for damages if,
Exceptions there being a conflict between his interests
1. When he acts in his own name, except when and those of the principal, he should
the contract involves things belonging to the prefer his own. [Art. 1889, CC]
principal [Art. 1883, CC] 3. Damages due to his withdrawal [Art. 1928,
2. If he expressly binds himself [Art. 1897, CC] CC]—
3. If he exceeds the limits of his authority The agent must indemnify the principal for
without giving such party sufficient notice of any damage that the principal may suffer
his powers [Art. 1897, CC] by reason of the withdrawal of the agent;
Note—When an agent contracts in his Exception: The agent should base his
own name and without the express withdrawal upon the impossibility of
authority of his principal, the obligation continuing the performance of the agency 352
so contracted by him is personal and is without grave detriment to himself.
AGENCY
not binding on his principal. [PNB v.
Agudelo] Liability of agent for acts of substitute under
Art. 1892, CC—
BUT Third persons cannot set up the The agent shall be responsible for the acts of the
fact that the agent has exceeded his substitute:
powers if the principal has ratified, or 1. when he was not given the power to appoint
has signified his willingness to ratify the one; or
agent’s acts [Art. 1901, CC] 2. when he was given such power, but without
designating the person, and the person
4. Under Art. 1898, CC— appointed was notoriously incompetent or
a. Agent contracts in the name of the insolvent.
principal;
b. He exceeds the scope of his authority; Principal may bring an action against the
c. The party with whom he contracted with substitute with respect to the obligations which
is aware of the limits of his powers; AND he has contracted under the substitution. [Art
d. The agent undertook to secure the 1893, CC]
principal’s ratification.
All acts of the substitute appointed against the
Note— Under Art. 1898, CC, the contract prohibition of the principal is void. [Art 1893, CC]
shall be void if the principal does not ratify
the contract and the party with whom the Responsibility for fraud or negligence—
agent has contracted is aware of the limits of The agent is responsible not only for fraud,
the powers granted by the principal. but also for negligence, which shall be
judged with more or less rigor by the courts,
Agent liable for damages to third persons according to whether the agency was or was
under Art. 1916 & 1917, CC— not for compensation. [Art. 1909, CC]
1. When two persons contract with regard to
the same thing, one of them with the agent
and the other with the principal;

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter III. LIABILITIES of the AGENT
Interest under Art. 1896, CC—

The agent owes interest on:
1. the sums he has applied to his own use from
the day on which he did so
2. those which he owes after the
extinguishment of the agency
a. If he converted for personal use, his
liability is without prejudice to a criminal
action that may be brought against him.
b. If for the sum he owes after
extinguishment, demand is not
necessary because the agent is required
to deliver to the principal whatever he
may have received by virtue of the
agency. [Art 1891, CC]
Liablity of Commission Agents

1. For any damage or deterioration of the
goods in the terms and conditions and as
described in the consignment
Exception: Upon receiving the goods, the

agent makes a written statement of the
damage and deterioration suffered [Art
1903, CC]
2. For commingling goods belonging to

different owners [Art 1904, CC] 353
3. For selling on credit without the express or
AGENCY
implied consent of the principal [Art 1905,
CC]
III. Liability of Two or More Agents

Liability is joint as a general rule [Art. 1894,
CC]
General Rule: Responsibility of two or more
agents, even though they have been appointed
simultaneously, is joint
Exception: Solidarity is expressly stipulated
Liability of two or more agents [Art. 1895,

CC]—
If solidarity has been agreed upon, each of the
agents is responsible for:
1. the non-fulfillment of agency; and
2. for the fault or negligence of his fellows
agents, except: When the fellow agents
acted beyond the scope of their authority in
case of fault or negligence.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IV. OBLIGATIONS of the PRINCIPAL
3. When an agent acts in his own name, but

Chapter IV. Obligations of the Principal the contract involves things belonging to the
principal, the contract must be considered
I. TO COMPLY WITH THE OBLIGATIONS as entered into between the principal and
CONTRACTED BY THE AGENT the third person. [Art. 1883, CC; Sy-Juco
II. TO ADVANCE NECESSARY SUMS AND
and Viardo v Sy-Juco, 1920]
REIMBURSE THE AGENT
III. TO INDEMNIFY AGENT FOR DAMAGES 4. The principal is solidarily liable with the
IV. TO PAY THE AGENT’S COMPENSATION agent who has exceeded his authority if the
V. BE SOLIDARILY LIABLE former allowed the latter to act as though he
had full power. [Art. 1911, CC]
General Rule: THE ACT OF THE AGENT IS 5. If two persons contract simultaneously with
THE ACT OF THE PRINCIPAL— agent & principal for the same thing:
Principal is bound by the acts of his agent. a. Contract of prior date prevails
He has an obligation to deal fairly and in b. If applicable, follow the rule on double
good faith with his agent sales in Art. 1544, CC. [Art. 1916, CC]
SPECIFIC OBLIGATIONS OF THE PRINCIPAL Liability of Principal for Tort of Agent [Art.
[CARICS] 1910, CC]—
3. to Comply with the obligations contracted by the The principal is civilly liable to third persons
agent for torts of an agent if he commit such in the
4. To Advance necessaty sums and Reimburse the course and within the scope of the agency.
agent
5. To Indemnify agent for damages
6. To pay the agent’s Compensation Agent’s negligence or disobedience to the
7. be Solidarily liable principal does not relieve him from liability,
even if he had no knowledge about the tort.
Agent and principal are solidarily liable to

third persons. 354
contracted by the agent
AGENCY
Liability of Joint Principals: Solidary [Art
Obligations principal is bound to comply 1915]—
with— Each principal may be sued by the agent for
1. obligations which the agent may have the entire amount due, not just for
contracted within the scope of his authority proportionate shares.
[Art. 1910, CC]
Any of the principals may revoke the agency
Note: Principal is directly liable to creditor for
debt incurred by agent acting within the Requisites of Solidary Liability:
scope of his authority. That the agent also a. Two or more principals
bound himself personally does not relieve b. All principals concurred in the
principal from liability if the debt was appointment of the same agent
incurred for his benefit. [Tuason v. Orozco] c. Agent was appointed for a common
undertaking
2. obligations which the agent may have
contracted beyond the scope of his authority Rules on Double Sale by Principal and Agent
but were ratified expressly or tacitly by the [Art. 1916-1917]
principal [Art. 1910, CC] General Rule:
1. When two persons contract with regard to
Note: Conditions for ratification (CaP-DECK) the same thing, one of them with the agent
a. The principal must have Capacity and and the other with the principal
Power to ratify. 2. two contracts are incompatible with each
b. The act must be Done in behalf of the other
principal 3. the agent acted in good faith
c. He must ratify the acts in its Entirety 4. the principal shall be liable for damages to
d. The act must be Capable of ratification the third person whose contract must be
e. He must have had Knowledge of rejected
material facts.
In case of double sale, which contracts are
incompatible with each other, that of PRIOR

lOMoARcPSD|3291925
DATE shall be preferred, without prejudice to Art Obligation to reimburse [Art. 1912, CC]—
1544. 1. Should the agent have advanced sums, the
principal must reimburse him even if the
Art. 1544 provides that: business or undertaking was not successful,
a. If the same movable property is sold to provided the agent is free from all fault.
different persons, ownership is 2. The reimbursement shall include interest on
transferred to whoever first took the sums advanced, from the day on which
possession in good faith. the advance was made.
b. If it be immovable, ownership belongs to
the person who in good faith first Exceptions to obligation to reimburse
recorded it in the Registry of Property. [Art.1918] (FCKS)
c. If there is no inscription, ownership shall 1. When the expenses were due to the Fault of
belong to the person who, in good faith the agent;
was first in possession; and in the 2. If the agent acted in Contravention of the
absence of such, to the one who principal's instructions, unless the latter
presents the oldest title, provided there should wish to avail himself of the benefits
is good faith. derived from the contract;
3. When the agent incurred them with
Principal not liable in the following cases— Knowledge that an unfavorable result would
1. Void or inexistent contracts under Art. 1409, ensue, if the principal was not aware
CC thereof;
2. Sale of a piece of land or any interest 4. When it was Stipulated that the expenses
therein & the authority of the agent is not in would be borne by the agent, or that the
writing [Art. 1874, CC] latter would be allowed only a certain sum.
3. Acts of the substitute appointed against the
prohibition of the principal [Art. 1892, CC] Note: Under Art. 1236(2), CC:
4. Art. 1898, CC “whoever pays for another may demand
Requisites: from the debtor what he has paid, except 355
a. agent contracts in the name of the that if he paid without the knowledge or
AGENCY
principal against the will of the debtor, he can recover
b. he exceeds the scope of the his only insofar as the payment has been
authority beneficial to the debtor.”
c. the principal does not ratify the contract
d. the party with whom the agent Agent’s right to retain in pledge object of
contracted is aware of the limits of the agency should principal fail to reimburse him
powers granted by the principal; and 1. The agent may retain in pledge the things
i. the agent did not undertake to which are the object of the agency until the
secure the principal’s ratification principal:
5. Agent has no authority or acted beyond the a. effects the reimbursement set forth in
scope of his authority [Arts. 1403(1); 1910, Art. 1912, CC; and
CC; Dungo v Lopena, 1962] b. pays indemnity set forth in Art. 1913, CC
6. When the agent acts in his own name, 2. But agent is not entitled to the excess in
persons with whom the agent has case the thing was sold to satisfy his claim,
contracted have no right of action against and the proceeds are more than his claim
the principal, except when the contract [Arts. 2115, 2121, CC]. Also he must
involves things belonging to the principal. possess the thing lawfully in his capacity as
[Art. 1883, CC] agent [2 C.J.S. 457]
7. Unenforceable contracts under Art. 1403,
CC III. To Indemnify the Agent for Damages
II. To Advance the Necessary Sums and Obligation to pay indemnity for damages
Reimburse the Agent [Art. 1913, CC]—
The principal must indemnify the agent for
Obligation to advance sums [Art. 1912, CC]— all the damages which the execution of the
The principal must advance to the agent, agency may have caused the latter, without
should the latter so request, the sums fault or negligence on his part.
necessary for the execution of the agency.

lOMoARcPSD|3291925
The agent’s has the right to retain in pledge the act as though he had full powers. [Art. 1911,
object of the agency should principal fail to pay CC]
the indemnity set forth in Art. 1913, CC.
With person who appointed an agent with
IV. To Pay the Agent’s Compensation him for a common transaction—
If two or more persons have appointed an
agent for a common transaction or
Agency is presumed to be for a compensation,
undertaking, they shall be solidarily liable to
unless there is proof to the contrary. [Art. 1875,
the agent for all the consequences of the
CC]
agency. [Art. 1915, CC]
General Rule on Commission—
The agent must be the efficient procuring
cause in order to be entitled to
compensation [Inland Realty v. Court of
Appeals]. His efforts must have resulted in
finding a ready, able and willing buyer of the
goods.
But for equity purposes, commission may be

granted if the agent, even if he is not the
procuring cause, nonetheless took diligent
steps to bring back the parties which led to
the consummation of the sale [Prats v. Court
of Appeals]
Compensation of Brokers—
Since the broker’s only job is to bring
together the parties to a transaction, it 356
follows that if the broker does not succeed in
AGENCY
bringing the mind of the purchaser and the
vendor to an agreement with reference to
the terms of a sale, he is not entitled to a
commission. [Rocha v Prats, 1922]
Doctrine of Procuring Cause—

When a party is not the efficient
procuring cause in bringing about a sale,
he is not entitled to the stipulated
broker’s commission. [Inland Realty v
CA, 1997]
If the principal breaks off from negotiations

with a buyer brought by the agent in order to
deliberately deal later with the buyer
personally, this is evident bad faith. In such
case, justice demands compensation for the
agent. [Infante v Cunanan, 1953]
V. To Be Solidarily Liable
With agent, if agent acted beyond scope of

authority and principal allowed him to act as
though he had full powers—
Even when the agent has exceeded his
authority, the principal is solidarily liable with
the agent if the former allowed the latter to

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. EXTINGUISHMENT of AGENCY
contracted with him in good faith. [Art. 1931,

Chapter V. Extinguishment of Agency CC]
3. Agent must finish business already begun
I. EXPIRATION OF THE PERIOD FOR WHICH IT
WAS CONSTITUTED
on the death of the principal, should delay
II. DEATH, CIVIL INTERDICTION, INSANITY, entail any danger. [Art. 1884, CC]
INSOLVENCY
III. WITHDRAWAL OF THE AGENT Obligation of heirs of agent upon agent’s
IV. ACCOMPLISHMENT OF THE OBJECT OF THE death [Art. 1932, CC]—
AGENCY 1. They must notify the principal of the agent’s
V. REVOCATION death
VI. DISSOLUTION OF THE FIRM/CORPORATION 2. They should adopt such measures as the
WHICH ENTRUSTED/ACCEPTED THE
circumstances may demand in the interest
AGENCY
of the principal in the meantime.
3. The law does not impose a duty on the
Extinguishment of Agency [EDWARD] principal’s heirs to notify the agent of the
1. Expiration of the period for which it was principal’s death. [Rallos vs Felix Go Chan]
constituted
2. Death, civil interdiction, insanity, insolvency III. Withdrawal of the agent
3. Withdrawal of the agent
4. Accomplishment of the object of the agency
1. General Rule: Agent may withdraw from the
5. Revocation
agency by giving due notice to the principal
6. Dissolution of the firm/corp. Which
[Art. 1928, CC]
entrusted/accepted the agency
But: If the principal should suffer any
I. Expiration of the period for which it damage by reason of the withdrawal, the
was constituted agent must indemnify him;
If created for fixed period, expiration of the
period extinguishes agency even if the Exception: If the agent based his withdrawal 357
purpose was not accomplished upon the impossibility of continuing
AGENCY
performance of the agency without grave
If no time is specified, Art. 1197 shall apply. detriment to himself. [Art. 1928, CC]
The courts may fix the period “as under the
circumstances have been probably 2. The agent, even if he should withdraw from
contemplated by the parties”. the agency for a valid reason, must continue
to act until the principal has had reasonable
Period may be implied from terms of opportunity to take the necessary steps to
agreement, purpose of agency, and the meet the situation. [Art. 1929, CC]
circumstances of the parties
II. Death, civil interdiction, insanity, agency
insolvency Between principal and agent, the fulfilment
of the purpose for which agency was
Death extinguishes agency created ipso facto terminates agency even if
General Rule: Death extinguishes agency it be expressly made irrevocable. If the
purpose has not been accomplished, the
Exceptions: agency continues indefinitely for as long as
1. Agency coupled with an interest the intent to continue is manifested through
a. Interest common to principal and agent; words or actions of the parties
or
rd
b. Interest of a 3 person who has V. Revocation
accepted the stipulation in his favor. [Art.
1930, CC] Principal may revoke the agency at will as a
2. Anything done by the agent, without general rule—
knowledge of the death of the principal or of General Rule:
any other cause which extinguishes the The principal may revoke the agency at will,
agency, is valid and fully effective with and compel the agent to return the
rd
respect to 3 persons who may have document evidencing the agency. Such

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. EXTINGUISHMENT of AGENCY
revocation may be express or implied. [Art. agent, as regards the special matter
1920, CC] involved in the latter [Art. 1926, CC]
d. In all three cases, there is implied
Exceptions: revocation only where the new
1. The right of the principal to terminate the appointment is incompatible with the
authority of his agent is absolute and previous one.
unrestricted, except only that he may not do
so in bad faith [Danon v Brimo, 1921] When revocation makes principal liable for
2. Agency is coupled with an interest [Art. damages
1927, CC] 1. If there is a period stipulated in the agency
a. A bilateral contract depends upon it contract, the agent may still revoke the
b. It is the means of fulfilling an obligation agent’s authority at will; but principal will be
already contracted; liable for damages.
c. Partner is appointed manager of a 2. No period fixed: principal liable if the agent
partnership in the contract of partnership can prove the former acted in bad faith.
and his removal from the management
rd
is unjustifiable. Effect of revocation with respect to 3
persons [Arts. 1921-1922,CC]
Note:
1. Powers of attorney falling under 1927 Agency to contract Agency to contract
cannot be revoked at the pleasure of the with specific with general public
principal, but may be revoked for a just persons
rd
cause, such as when the attorney-in-fact Won’t prejudice 3 Won’t prejudice those
betrays the interest of the principal. persons until notice is in good faith & w/o
given them. knowledge.
(Coleongco v Claparols, 1964)
Notice must be Notice must be
2. A mere statement in the power of attorney personal. published (Arts. 1873,
that it is coupled with an interest is not 1922).
enough. In what does such interest consist 358
must be stated in the power of attorney. (Del Revocation in case of solidary principals
AGENCY
Rosario v Abad, 1958) [Art. 1925, CC]—
3. Irrevocability of the contract cannot affect When two or more principals have granted a
3rd persons and is obligatory only on the power of attorney for a common transaction,
principal who executed the agency. (New any one of them may revoke the same
Manila Lumber v Republic, 1960) without the consent of others.
Revocation may be express or implied Notice of Revocation as against third
1. Express—principal clearly and directly persons—
makes a cancellation of the authority of the 1. If agent had general powers:
agent in writing or orally Revocation DOES NOT prejudice third
2. Implied— persons who acted in good faith and
a. The appointment of a new agent for the without knowledge of the revocation
same business or transaction revokes
the previous agency from the day on Notice of revocation in a newspaper of
which notice thereof was given to the general circulation is a sufficient warning
former agent, without prejudice to the to third persons
provisions Art. 1921 and Art. 1922, CC
[Art. 1923, CC] 2. If agency is for the purpose of contracting
b. The agency is revoked if the principal specified persons: to prejudice persons
directly manages the business entrusted specified, they must be given actual notice.
to the agent, dealing directly with third
persons. [Art. 1924, CC]
c. A general power of attorney is revoked
by a special one granted to another entrusted/accepted the agency
- end of Agency -

lOMoARcPSD|3291925

lOMoARcPSD|3291925
PARTNERSHIP
Table of Contents
Chapter I. Nature, Creation, Kinds of III. Right to Lien or Retention, to Stand in

Partnership ...................................................361 Place of Creditor, to be Indemnified .......... 377
I. Essential Features ............................361 IV. Right of Retiring/Deceased Partner (Art.
II. Characteristics ..................................362 1841, CC) .................................................. 377
III. Distinctions ........................................362 V. Right of Account (Art. 1842, CC) ...... 378
IV. Rules to Determine Existence...........363
V. How Partnership is Formed ..............363 Chapter VIII. Rules on Settlement (Art. 1839,
VI. Partnership Term ..............................363 CC)................................................................. 379
VII. Kinds of Partnerships....................363
Chapter IX. Limited Partnership ................ 380
Chapter II. Obligations of the I. Definition ........................................... 380
Partnership/Partners Among Themselves 366 II. Forming/Amending a Limited
CRRAMP-LS..............................................366 Partnership (Art. 1844, CC) ....................... 381
I. Make Contributions as Promised ......366 III. Limited Partner.................................. 382
III. Manage the Partnership....................367 IV. General Partner ................................ 384
IV. Render Full Information.....................368 V. Dissolution ........................................ 384
V. Account for benefits ..........................368 VI. Settling Accounts for Dissolution ...... 385
VI. Reimburse expenses ........................368
VII. Liable for Partnership Contracts ...368
VIII. Solidarily Liable with Partnership.369
Chapter III. Obligations of the

Partnership/Partners as to Third Persons.370
LANN .........................................................370
I. Operate Under a Firm Name (Art. 1815,
CC) 370 360
II. Bound by Partnership Admission......370
PARTNERSHIP
III. Bound by Notice Partner ...................370
IV. Liable for Acts of the Partnership......370
Chapter IV. Rights of Partners ...................371

I. Share in Losses and Profits ..............371
II. Associate Another in His Interest......371
III. Access to Partnership Books ............371
IV. Obtain Formal Account .....................371
V. Property Rights .................................371
VI. Convery Real Property (Art. 1819, CC)
372
Chapter V. Rights of the Partnership ........374

I. Acquire Immovables..........................374
II. Preference of Creditors .....................374
Chapter VI. Dissolution and Winding Up ..375

I. Definitions .........................................375
II. Causes for Dissolution ......................375
III. Consequences of Dissolution ...........375
IV. Partner’s Liability...............................376
Chapter VII. Rights of Partners Upon

Dissolution....................................................377
I. Right to Wind Up ...............................377
II. Right to Damages for or to Continue
Business on Wrongful Dissolution .............377

lOMoARcPSD|3291925
Chapter I. Nature, Creation, Kinds of

AGENCY & PARTNERSHIP TEAM
AGENCY & PARTNERSHIP

Partnership
Prof. Roberto N. Dio
Faculty Editor
I. ESSENTIAL FEATURES
Genevieve E. Jusi
Lead Writer II. CHARACTERISTICS
III. DISTINCTIONS
Joyce Anne C. Roldan
Writer IV. RULES TO DETERMINE EXISTENCE
V. HOW PARTNERSHIP IS FORMED
CIVIL LAW VI. PARTNERSHIP TERM
Kristine Bongcaron VII. CLASSES OF PARTNERS
Patricia Tobias VIII.KINDS OF PARTNERSHIPS
Subject Editors
ACADEMICS COMMITTEE
Art. 1767. By the contract of partnership two or
Kristine Bongcaron
more persons bind themselves to contribute
Michelle Dy
Patrich Leccio money, property, or industry to a common fund,
Editors-in-Chief with the intention of dividing the profits among
themselves.
PRINTING & DISTRIBUTION Two or more persons may also form a
Kae Guerrero partnership for the exercise of a profession.
(1665a)
DESIGN & LAYOUT
Pat Hernandez
Viktor Fontanilla
Rusell Aragones
I. Essential Features
Romualdo Menzon Jr. 1. A mutual contribution of money, property, or
Rania Joya industry to a common fund;
2. With the intention of dividing profits among
LECTURES COMMITTEE
themselves
Michelle Arias Note: The object must be for profit and
Camille Maranan not merely for common enjoyment; 361
Angela Sandalo otherwise only a co-ownership has been
Heads
PARTNERSHIP
formed.
Katz Manzano Mary Rose Beley 3. The parties must have legal capacity.
Arianne Cerezo Marcrese Banaag Exception: corporation cannot become a
Volunteers partner on grounds of public policy.
4. It has a separate juridical personality (Art.
MOCK BAR COMMITTEE 1768, CC) apart from the separate
Lilibeth Perez personality of each of the member.
Note: Associations and societies, whose
BAR CANDIDATES WELFARE articles are kept secret among the
Dahlia Salamat members, and wherein any one of the
members may contract in his own name
LOGISTICS with third persons, shall have no
Charisse Mendoza
juridical personality, and shall be
governed by the provisions relating
SECRETARIAT COMMITTEE to co-ownership. (Art. 1775, CC)
Jill Hernandez
Head
Although not a juridical entity, it may still
be sued by third persons under the
common name it uses. (Sec. 15, Rule 3,
Mary Mendoza Joie Bajo
Members Rules of Court)

lOMoARcPSD|3291925
5. Has a lawful object (Art. 1770, CC) Partnership Corporation

a. A partnership must have a lawful object Based on delectus Not based on delectus
or purpose, and must be established for personam* personam
the common benefit or interest of the May be established May not be formed for a
partners. for any period of period exceeding 50 years
Note: When an unlawful partnership time stipulated
May be dissolved at May be dissolved only with
is dissolved by a judicial decree, the
anytime by the will of the consent of the state
profits shall be confiscated in favor any or all partners
of the State, without prejudice to the Governed by the Governed by the Corporation
provisions of the Penal Code Civil Code Code
governing the confiscation of the
instruments and effects of a crime *Delectus personam: the right of partners to
exercise their choice and preference as to the
II. Characteristics admission of any new members to the
1. Fiduciary partnership, and as to the persons to be so
2. Nominate – designated by a specific name admitted, if any.
3. Consensual – perfected by mere consent
4. Bilateral/Multilateral – entered into between Partnership Co-ownership
two or more persons Creation Always General,
5. Principal - existence does not depend on created by a created by law,
another contract contract may exist even
6. Onerous – money, property or industry must without a
be contributed contract
1. Preparatory – other contracts essential in Juridical Has a Has no juridical
the carrying out of its purposes can be Personality separate, personality
entered into distinct
juridical
III. Distinctions personality
Purpose Realization of Common
profits enjoyment of a
Partnership Corporation
Created by operation of law
thing or right 362
Created by mere
agreement of the Duration No limitation An agreement
PARTNERSHIP
parties; upon the to keep the
May be organized by Requires at least 5 duration is set thing
only two persons incorporators; by law undivided, not
Juridical personality Personality commences from exceeding ten
commences from SEC’s issuance of the years, shall be
the moment of certificate of incorporation valid. (Art. 494,
execution of the CC)
contract of
Transfer of Need A co-owner can
partnership
Interests unanimous dispose of his
May exercise any Can exercise such powers
power authorized by expressly granted by law or consent of share without
the partners as long incident to its existence partners to the consent of
as it is not contrary make the others
to law, etc. assignee of
If no agreement as Power to do business is interest a
to mgt. - every vested in the board of partner
partner is an agent directors/ trustees Power to A partner may A co-owner
of the partnership act with bind the can’t represent
A partner as such Suit against the board/director Third partnership the co-
may sue a co- who mismanages must be
partner who brought in the corp.’s name
Persons ownership
mismanages Dissolution Death or Death or
Has no right of Has right of succession incapacity of a incapacity of a
succession partner co-owner does
The partners are The stockholders are liable to dissolves the not dissolve the
liable personally and the extent of the shares partnership co-ownership
subsidiarily for subscribed by them Representa- There is There is no
partnership debts tion mutual agency mutual agency

lOMoARcPSD|3291925
Partnership Co-ownership in the Securities and Exchange

Profits Must be Must always Commission (SEC). (Art. 1772, CC)
stipulated depend upon ii. FAILURE to comply with this
upon proportionate requirement shall NOT affect the
shares and any liability of the partnership and the
stipulation to members to third persons.
the contrary is
void. VI. Partnership Term
Commencement of the partnership—
1. General Rule: A partnership begins from the
IV. Rules to Determine Existence moment of the execution of the contract
Art. 1769. In determining whether a partnership 2. Exception: When otherwise agreed upon by
exists, these rules shall apply: the parties (Art. 1784, CC)
1. General Rule: Persons who are not partners
to each other are not partners as to third A Partnership may either be for—
persons 1. Fixed term or particular undertaking
2. at will
Exception: partnership by estoppel.
Extension of Life of Partnership
2. Co-ownership or co-possession and sharing 1. By express renewal of the agreement
of gross returns DO NOT establish a 2. By implied renewal—Requisites:
partnership a. A partnership is for a fixed term or
particular undertaking
3. Prima facie evidence of partnership: receipt b. It is continued after the termination of
of a share of the business profits such term or particular undertaking
without any express agreemen
Except if received in payment as:
a. A debt by instalment or otherwise; Note: Prima facie evidence of continuation—
b. As wages to an employee or rent to a a. Continuation of the business by the
landlord; partners without any settlement or
c. An annuity to a widow or representative liquidation of the partnership affairs 363
of a deceased partner; (1785)
PARTNERSHIP
d. As Interest on a loan, though the b. Effect: The rights and duties of the
amount of payment vary with the profits partners remain the same as they were
of the business; and at such termination, so far as is
e. As the consideration for the sale of consistent with a partnership at will
goodwill of a business or other property (1785)
by instalment or otherwise.
VII. Kinds of Partnerships
V. How Partnership is Formed
As to legality of existence
1. Form of Contract 1. De jure – has complied with all the
General Rule: The contract may be necessary requisites for lawful
constituted in any form (Art. 1771, CC) establishment (Arts. 1772, 1773, CC)
2. De facto – failed to comply with the
Exceptions requisites
a. Where immovable property or real rights
are contributed (Art. 1771, CC) As to its object
i. The contract must appear in a public 1. Universal (Art. 1777, CC)
instrument (1771) a. As to all present property (Art. 1778,
ii. It must have an inventory of such CC)—
immovable property signed by the Partners contribute all their properties to
parties and attached to the a common fund with the intention of
instrument (1773) dividing them among themselves as well
b. Where the capital is at least P3,000, in as all the profits they may acquire
money or property
i. The contract must appear in a public Includes all properties which belonged
instrument which must be recorded to each partner at the time of the

lOMoARcPSD|3291925
constitution of the partnership
Partners may stipulate that all may enjoy

all other profits made except those
properties which may be acquired
subsequently through inheritance,
legacy or donation
b. As to profits (Art. 1780, CC)—

Partners contribute all that they may
acquire by their industry or work during
the existence of the partnership
Does not include properties which each

partner may possess at the time of the
celebration of the contract
Articles of Universal Partnership—

If the Articles of a universal partnership
do not state its nature, it only constitutes
a universal partnership of profits. (Art.
1781, CC)
Persons prohibited to enter into a universal

partnership—Those persons who are
prohibited from giving donation (Art. 133
and 739, CC):
a. Between husband and wife
b. Those guilty of adultery or concubinage
c. Those guilty of a criminal offense, if the
partnership was entered into in
consideration of the same
364
PARTNERSHIP
d. A person and a public officer (or his
wife, descendants, ascendants) by
reason of his office
2. Particular (Art. 1783, CC)—

The object may be determinate things, their
use or fruits, or specific undertaking or the
exercise of a profession or vocation.

lOMoARcPSD|3291925
c. On the faith of the misrepresentation,

rd
As to partners’ liability the 3 person gave credit to the
1. General actual/apparent partnership.
2. Limited d. The person representing or consenting
to the representation is liable:
General Limited  as an actual member if a
All partners are general Formed by two or more partnership liability results
partners liable for partners, with one or  pro rata with other persons when no
partnership obligations more general partners partnership liability results (Art.
pro rata with all their and one or more limited 1825, CC)
property after exhaustion partners
of partnership assets
2. No real partnership is created by estoppel. It
rd
Industrialist Partner v Capitalist Partner is only insofar as 3 persons are involved
and for the purpose of protecting them that
Industrialist Capitalist
the principal of estoppel is recognized.
Partner Partner
Contribution Contributes his Contributes
3. As to liability resulting from the
industry money or
representation:
property
a. when all the members consent,
Prohibition to Cannot engage Cannot partnership obligation results
engage in in any business engage in b. if not all consent, only a joint obligation
other for himself the same or of the one representing and of those
business similar who consented results
enterprise
Profits Receives a just Shares in Note: Corporation by estoppel—
and equitable profits All persons are liable as general partners
share according to (Sec. 21, Corp. Code). A de facto
agreement partnership is created.
thereon; if
none, pro
rata to his
contribution 365
Losses Exempted as to 1. stipulation
PARTNERSHIP
losses as as to losses
between
partners but it 2. if none,
is liable to 3rd the
persons without agreement
prejudice to as to profits
reimbursement
from the 3. if none,
capitalist pro rata to
partners contribution
Partnership by Estoppel
1. Requisites of “Partner By Estoppel”:
a. The person—
 represents himself as a partner of
an existing partnership or of two or
more persons not actual partners, or
 consents to another representing
him as a partner of an existing
partnership or of two or more
persons not actual partners
b. Third person relied on the
misrepresentation, unaware of the
deception.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. OBLIGATIONS of the PARTNERSHIP
iii. if they were contributed to be sold

Chapter II. Obligations of the
Partnership/Partners Among Themselves But in the absence of stipulation, the risk
of things brought and appraised in the
I. MAKE THE CONTRIBUTIONS AS PROMISED
inventory, shall also be borne by the
II. PAY DAMAGES
III. MANAGE THE PARTNERSHIP partnership, and in such case the claim
IV. RENDER FULL INFORMATION shall be limited to the value at which
V. ACCOUNT BENEFITS they were appraised.
VI. REIMBURSE EXPENSES
VII. LIABILITY FOR PARTNERSHIP CONTRACTS When promised contribution is goods— (Art.
VIII. SOLIDARY LIABILITY WITH PARTNERSHIP 1787, CC)
1. Appraisal must be made in a manner
prescribed in the contract of partnership
CRRAMP-LS 2. In the absence of stipulation
1. Make Contributions as promised a. Made by experts chosen by the partners
2. Render full information b. Made by experts chosen by the partners
3. Account benefits
4. Manage the partnership When promised contribution is immovable
5. Pay damages property— (Art. 1771-1773, CC)
6. Liability for partnership contracts 1. An inventory of the property is signed by the
7. Solidary liability with partnership parties, and attached to the public
instrument
2. The public instrument must be filed with the
I. Make Contributions as Promised SEC if the capital is more than P3,000.00.
A partner is a debtor: for whatever he had
promised to contribute thereto (Art. 1786, CC) When promised contribution is a sum of
money –
When promised contribution is property: in Sanctions:
general 1. Partner becomes the firm’s debtor for
1. Partner is a warrantor in case of eviction interest and damages from the time of his
with regard to specific and determinate failure to contribute or from time of
things he may have contributed (Art. 1786, conversion (Art. 1788, CC)
366
CC)
PARTNERSHIP
2. When money or property has been received
Note: If breached— by a partner for a specific purpose and he
Partnership may recover indemnity from later misappropriated it, such partner is
contributing partner. guilty of estafa. (Liwanag v CA, 2008)
2. Liable for fruits from the time they should Bring to partnership capital credit received
have been delivered without need of any Equal contribution by general partners:
demand (Art. 1786, CC) capitalist partners shall contribute equal
shares to the capital of the partnership (Art.
3. Other duties of contributing partners: 1790, CC).
a. to preserve the property with the
diligence of a good father of a family Obligation of capitalist partner to contribute
(Art. 1163, CC) additional capital
b. to indemnify the partnership for 1. To contribute additional capital in case of
damages caused to it by delay in imminent loss, requisites:
contribution of property (Art. 1170, CC) a. There is an imminent loss of the
business
4. Risk of loss of things contributed (Art. 1795, b. There is a need to contribute additional
CC) capital to save the venture
a. Borne by the partner who owns them— c. Capitalist partner refuses deliberately to
If they are not fungible, so that only contribute an additional share
their use and fruits may be for the d. There is no agreement to the contrary
common benefit 2. If refused to contribute: the partner must sell
b. Borne by the partnership— his interest in the partnership to the other
If the things contributed are: partners (Art. 1791, CC)
i. fungible; 3. Industrial partner is exempted from
ii. cannot be kept without deteriorating; contributing.

lOMoARcPSD|3291925
Obligation of managing partner who is also a 2. Right to manage may either be:
creditor of the same partnership debtor a. exercised by all the partners, or
1. Requisites: b. limited to a certain number of partners
a. 2 separate credits, both demandable, called managing partners
b. one credit is owed to the partnership,
c. the other to the collecting partner who’s If a specific person has been appointed as
a managing partner. manager (Art. 1800, CC)—
2. Managing partner should: 1. If right is conferred in the articles of
a. If issued receipt for own account only  partnership
apply the sum to the 2 credits in a. Manager may execute all acts of
proportion to their amounts administration despite the opposition of
b. Issued receipt for partnership’s account other partners unless he is in bad faith
 apply whole sum to partnership’s b. Power is irrevocable without just or
credit (Art. 1792, CC) lawful cause.
Note: The vote of the controlling
When the partner who has received, in whole interest of the partners is necessary
or in part, his share of a partnership credit— for revocation.
Partner shall give to the partnership what he 2. If power is granted after constitution of
received if: partnership, it may be revoked at anytime
1. a debtor made a partial payment of his debt
to the partnership If two or more partners are appointed as
2. a partner received his share of the credit managers—
and the others haven’t 1. Without specification of their duties or
3. the debtor later becomes insolvent, (Art. without a stipulation of how each one will
1793, CC). act-- (Art. 1801, CC)
4. Cf. 1792: in 1793 there’s only 1 debt where a. Each one may separately execute all
the partnership is the creditor acts of administration
b. If opposed, decision of majority prevails
c. In case of a tie, the matter is to be
decided by the controlling interest.
2. If there is a stipulation that managers must
II. Pay Damages act jointly (Art. 1802, CC)
367
PARTNERSHIP
a. The concurrence of all managers is
Liability for damages due to partner’s fault necessary for validity of the acts
The damages cannot be compensated with b. Their absence or disability cannot be
the profits and benefits he may have earned alleged as a defense unless there is
for the partnership by his industry (Art. imminent danger or grave or irreparable
1794, CC). injury to the partnership.
Mitigation of liability If the manner of management has not been
The courts may equitably lessen his agreed upon (Art. 1803, CC)—
responsibility if through his extraordinary 1. All partners are considered agents and the
efforts in other activities unusual profits have act of anyone bind the partnership without
been realized (Art. 1794, CC) prejudice to Art. 1801
2. To make important alterations in the
Before a partner may sue another for immovable property of the partnership, even
alleged fraudulent management and if useful, need the consent of all the partners
resultant damages, a liquidation must first
be effect to determine the extent of the If refusal to give consent is manifestly
damage. Without liquidation of partnership prejudicial to the partnership, the court’s
affairs, partner cannot claim damages. intervention may be sought
(Soncuya v. De Luna)
Every partner is considered an agent (Art.
III. Manage the Partnership 1818, CC)—
General Rule:
General Rules Every partner is considered an agent of the
1. Right of management is primarily governed partnership for the purpose of its business
by agreement of the partners as provided in and any act of the agent for apparently
the articles of partnership (Art. 1800, CC)

lOMoARcPSD|3291925
carrying on the usual business of the VI. Reimburse expenses

partnership binds the partnership.
The partnership is responsible to every
partner for:
Exception:
1. Amounts disbursed on behalf of the
If the partner has no authority to act; AND
partnership plus interest from the time the
the third person dealing with him knew that
expense is made
the partner had no authority
2. Obligations contracted in good faith in the
interest of the business
3. Risks in consequence of management
If the acts are not for carrying out the
business of the partnership—(Art. 1818, CC)
General Rule: VII. Liable for Partnership Contracts
Acts of the partner not apparently for
carrying out the business of the partnership Liability of partnership and partners for
do not bind the partnership. partnership contracts-- (Art. 1816, CC)
Exceptions: 1. All partners shall be liable pro rata with all
When authorized by other partners; OR other their property but—
partners have abandoned the business The private property of the partners
cannot be seized for satisfaction of
Acts not usual in the business of partnership partnership debts until all the
(Art. 1818, CC) [ADD-CRES]— partnership assets have been exhausted
1. Assign the partnership property in trust for 2. For the contracts which may be entered into:
creditors or on the assignee's promise to a. in the name and for the account of the
pay the debts of the partnership; partnership
2. Dispose of the good-will of the business; b. under its signature and
3. Do any other act which would make it c. by a person authorized to act for the
impossible to carry on the ordinary business partnership.
of a partnership;
4. Confess a judgment; The exemption of an industrial partner from
5. Renounce a claim of the partnership. paying losses relates exclusively to the
6. Enter into a compromise concerning a settlement of the partnership affairs among the
partnership claim or liability; partners themselves, and not to the partners’
368
rd
7. Submit a partnership claim or liability to
PARTNERSHIP
subsidiary liability to 3 persons (La Compania
arbitration; Maritima v Munoz, 1907).
IV. Render Full Information While the liability of the partners is joint in
transactions entered into by the partnership, a
rd
3 person who transacted with the partnership
Duty to give information:
can hold partners solidarily liable for the whole
1. On demand, to give true and full information rd
obligation if the 3 person’s case falls under
of all things affecting the partnership to any
Arts. 1822-1823 (Muñasque v. CA, 1985)
partner or their legal representatives (Art.
1806, CC).
However, any party may enter into a separate
2. Voluntary disclosure of material facts within
obligation to perform a partnership contract.
his knowledge relating to/affecting
(Art. 1816, CC)
partnership affairs (Art. 1821, CC).
Stipulation against pro-rata liability void—
V. Account for benefits 1. General Rule: Stipulation against pro rata
Duty to account (Art. 1807, CC)— liability is void
Every partner must: 2. Exception:such stipulation is valid among
1. Account to the partnership for any benefit; the partners (Art. 1817, CC)
AND
2. Hold as trustee for it any profits derived by Art. 1817 vs. 1799—
him without the consent of the other partners it is permissible to stipulate among partners
from any transaction connected with the that a capitalist partner will be exempted
formation, conduct or liquidation of the from liability in excess of the original capital
partnership contributed; but won’t be exempted insofar
as his capital is concerned (Paras).

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Liability of a newly-admitted partner— The liability of partners under the Workmen’s

1. Obligations contracted before his admission: Compensation Act also solidary. If their
liable only up to his share in the partnership responsibility was merely joint and one became
property unless there’s a contrary stipulation insolvent, the amount awarded would only be
(Art. 1826, CC). partially satisfied, which is contrary to the law’s
2. Obligations contracted after admission: purpose (Liwanag v. Workmen’s
liable as an ordinary original partner Compensation Commission, 1959)
Liability of outgoing partner—

1. When he gives notice of his retirement or
withdrawal, he’s freed from liability on
contracts entered into thereafter but still
liable on existing incomplete contracts
2. He is liable for goods sold and delivered
after his retirement/withdrawal if the sale
was pursuant to a contract made before
such retirement/withdrawal
VIII. Solidarily Liable with Partnership
The partnership and the partner are solidarily

liable in the following cases—
1. Vicarious liability, requisites:
a. the partner committed a wrongful
act/omission;
b. he acted in the ordinary course of the
partnership business or with the
authority of the co-partners even if the
act wasn’t connected with the
partnership business;
rd
c. loss/injury is caused to a 3 person by 369
the wrongful act/omission;
PARTNERSHIP
rd
d. 3 person is not a partner (Art. 1822,
CC);
2. Misappropriation of one partner (Art. 1824,
CC)
a. partner acts within the scope of his
apparent authority
b. when partner in the course of business,
receives money or property and the
same is misapplied by the partner while
in the custody of the said partner.
Exceptions are without prejudice to the guilty

partner being liable to the other partners, but as
far as third partners are concerned, the
partnership is answerable.
Liability for money misappropriated covers—

1. Interest
2. Damages
Extent of liability—
firm is liable to the same extent as the
partner (Art. 1822, CC) and all partners are
solidarily liable with the firm (Art. 1824, CC)

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CIVIL LAW REVIEWER Chapter III. OBLIGATIONS as to THIRD PERSONS
Chapter III. Obligations of the III. Bound by Notice Partner

Partnership/Partners as to Third Persons  Notice to the partner relating partnership
affairs
I. OPERATE UNDER A FIRM NAME
 Knowledge acquired by a partner who is
II. BOUND BY PARTNERSHIP ADMISSION acting in a particular matter (acting partner),
III. BOUND BY NOTICE TO PARTNER acquired while he was still a partner or then
IV. LIABLE FOR ACTS OF THE PARTNERSHIP present in his mind
 Knowledge of a partner who reasonably
could and should have communicated it to
LANN the acting partner (Art. 1821, CC)
1. Liable for acts of the Partnership  Exception: In case of fraud on the
2. Bound by partnership Admission partnership, committed by or with the
3. Operate under a Firm name consent of the partner (Art. 1821)
4. Bound by Notice to partner
IV. Liable for Acts of the Partnership
I. Operate Under a Firm Name (Art.
1815, CC) All partners, including the industrial partner,
are liable pro rata with their own properties
The firm name may or may not include the name after partnership properties have been
of one or more of the partners. exhausted (Art. 1816, CC)—
1. General Rule: liability is joint
Persons, not being members of the partnership, 2. However, liability is solidary in the following:
who include their names in the firm name, are a. Wrongful acts and omissions causing
liable as partners (Art. 1825, CC) loss to a non-partner.
b. Conversion or misappropriation of funds
Use of deceased partner’s name in law firm— committed in the usual course of
permissible as long as it’s indicated in the firm’s business or consented to by all partners
communications that the partner is deceased
(Rule 3.02, CPR)  Any stipulation against this liability is void as
against third persons but valid among the
partners (Art. 1817, CC)
370
Limited partner’s surname shall not appear

PARTNERSHIP
in the firm name unless— An industrial partner is liable to third persons
1. It is also the surname of a general partner but as between the partners, he is not liable
2. Before the limited partner became such, the for losses (Art. 1797, CC)
business had been carried on under a name  Partners are individually liable after
in which his surname appeared (Art. 1846, partnership assets are exhausted
CC)
Contracts for which partners are liable pro
rata with their individual property—
II. Bound by Partnership Admission 1. those entered into in the name and account
of the partnership
Requisites to be admissible against the 2. entered into under its signature
partnership— 3. entered into by a person authorized to act
1. it must be connected with partnership affairs for the partnership
2. it is within the scope of the partner’s  Exception: partner may enter into a
authority (Art. 1820, CC) separate obligation to perform a
3. it is made during the firm’s existence partnership contract.
Exception: when a partner makes

admissions for himself only without
purporting to act for the partnership
Admission by a former partner not admissible in

evidence against the partnership. (Congco vs.
Trillana, 1909)

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CIVIL LAW REVIEWER Chapter IV. RIGHTS of PARTNERS
Stipulation excluding one or more partners from

Chapter IV. Rights of Partners any share in the profits or losses is void. (Art.
1799, CC)
I. SHARE IN LOSSES AND PROFITS
II. ASSOCIATE ANOTHER IN HIS SHARE
III. ACCESS PARTNERSHIP BOOKS II. Associate Another in His Interest
IV. OBTAIN FORMAL ACCOUNT Every partner may associate another person
V. PROPERTY RIGHTS with him in his share, but the associate shall not
VI. CONVEY REAL PROPERTY be admitted into the partnership without the
consent of all the other partners, even if the
BASCOP partner having an associate should be a
1. Access to partnership Books manager. (Art. 1804, CC)
2. Associate another in his share
3. Share in losses and profits
4. Convey real property III. Access to Partnership Books
5. Obtain formal account
6. Property rights Partnership books: open to inspection of all the
partners at a reasonable hour (Art. 1805, CC).
I. Share in Losses and Profits The books shall be kept at:

1. The place agreed upon
The distribution shall be in conformity with the 2. If without agreement, at principal place of
agreement. (Art. 1797, CC) business (Art. 1805, CC)
PROFITS LOSSES
Reasonable hours on business days throughout
With According to According to
agreement the year, not merely during some arbitrary period
agreement agreement
Without 1. Share of 1. If sharing of
of a few days chosen by the managing partners
agreement capitalist partner profits is (Pardo v. Lumber Co., 1924)
is in proportion stipulated - apply
to his capital to sharing of IV. Obtain Formal Account
contribution losses
2. Share of 2.If no profit Any partner shall have the right to a formal 371
purely industrial sharing account as to partnership affairs—
PARTNERSHIP
partner is not stipulated - 1. If he is wrongfully excluded from the
fixed - as may losses shall be business/possession of the property by his
be just and borne according co-partners
equitable under to capital 2. If the right exists by agreement
the contribution 3. When the partner derives any profit as
circumstances
provided in Art. 1807
3.Purely
4. Whenever other circumstances render it just
industrial partner and reasonable (Art. 1809, CC)
not liable for
losses The right of a partner to demand an accounting
exists as long as the partnership exists. The
If the partners agreed to entrust to a third prescription period begins to run only upon the
person the designation of the share in profits dissolution when the final accounting is done
and losses (Art. 1798, CC)— (Fue Leung v. IAC,1989).
 Designation may only be impugned if
manifestly inequitable
 Even if manifestly inequitable, the V. Property Rights
designation cannot be impugned in the
following instances: Property rights (Art. 1810, CC)—
a. The aggrieved partner has already 1. In the specific partnership property
begun to execute the decision 2. In the partnership, and
b. If he has not impugned within three 3. To participate in the management
months from the time he had knowledge
of it

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Partnership capital vs. partnership Rights of the What assignees

property— transferee or cannot do
Capital Property assignee
With a constant value Value varies, in To receive in Interfere in the
accordance with market accordance with his management;
value contract the profits
Includes only the actual Includes the contribution accruing to the
capital contributed and and all property later assigning partner
promised to the acquired on the To avail of the usual Require any information
partnership partnership’s account remedies provided by or account
law in the event of
Partners are co-owners of specific fraud in the
management
partnership property: the incidents are—
To receive the Inspect any of the
1. A partner has an equal right with his co- assignor’s interest in partnership books.
partners to possess specific property for case of dissolution;
partnership purposes may require an account
 if excluded from this, can seek a formal from the date only of
accounting (Art. 1809, CC) or judicial the last account agreed
dissolution (Art. 1831, CC) to by all the partners.
2. A partner’s right in specific property can’t be
assigned except when all partners assign Enforcement of a judgment vs. a debtor-
their rights in that property partner’s interest (Art. 1814, CC)—
3. A partner’s right in specific property is not The judgment creditor may:
subject to attachment/execution except on a 1. Apply for an order charging the partner’s
claim against the partnership interest with payment of the unsatisfied
4. A partner’s right in specific property is not amount of the final judgment with interest
subject to support payment (Art.1811, CC) 2. Have a receiver appointed
3. Have the court make an order as the
Property used by the partnership: a partner circumstances render it necessary
may—
1. contribute only the use of property Redemption—
2. allow partnership to use his separate A partner or more may redeem the interest 372
property charged at any time before the foreclosure with:
PARTNERSHIP
3. hold the title to partnership property in his 1. their separate property
own name without having it belong to him 2. with partnership property, with the consent
of all partners whose interests are not
Property acquired by a partner with charged/sold (Art. 1814, CC)
partnership funds—
General Rule: partnership property VI. Convery Real Property (Art. 1819, CC)
Exceptions:
1. contrary intention appears
Title in Conveyance passes title but
2. property was acquired after dissolution but partnership partnership can recover unless:
before winding up name: 1. The partner who sold it
Any partner was carrying on in the
Partner’s interest in the partnership— may convey usual way the business of
his share in the profits and surplus (Art. 1812, under the partnership hence
CC). This may be assigned, attached, subject to partnership binding the partnership; or
payment of support as there was already a name
liquidation of the partnership affairs. The 2. Buyer had no knowledge
of the lack of authority of
assignee is only entitled to the profits assigned.
the seller
Conveyance of partner’s entire interest— Title in Conveyance does not pass title
It does not dissolve the partnership (Art. 1813, partnership but only equitable interest.
CC) name: Provided that: The partner who
Conveyance in sold it was carrying on in the
partner's name usual way the business of the
partnership hence binding the
partnership

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Title in the Conveyance passes title but

name of one or partnership can recover unless:
more but not all 1. he partner who sold it was
the partners and carrying on in the usual
the record does way the business of the
not disclose the partnership hence binding
right of the the partnership; or
partnership - 2.
The partners in 3. Buyer had no knowledge
whom the title of the lack of authority of
stands may the seller
convey
Title in the Conveyance does not pass title
name of one or but only equitable interest.
more or all Provided that: The partner who
partners or in sold it was carrying on in the
third person in usual way the business of the
trust for the partnership hence binding the
partnership - partnership
Conveyance in
partner's name
or in partner’s
name
Title in the Passes all their rights in such
names of all the property
partners –
Conveyance by
all partners
373
PARTNERSHIP

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CIVIL LAW REVIEWER Chapter V. RIGHTS of the PARTNERSHIP
Chapter V. Rights of the Partnership

I. ACQUIRE IMMOVABLES
II. PREFERENCE OF CREDITORS
I. Acquire Immovables
 An immovable property or any interest
therein may be acquired in the partnership
name, and title so acquired can only be
conveyed in the partnership name (Art.
1774, CC).
 Cf Art. 1819: see table
II. Preference of Creditors

 Preference: partnership creditors preferred
to creditors of individual partners (Art. 1827,
CC).
 Remedy of private creditors of partners:
seek the attachment/public sale of the
shares
374
PARTNERSHIP

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CIVIL LAW REVIEWER Chapter VI. DISSOLUTION and WINDING UP
enjoyment of which has been transferred to

Chapter VI. Dissolution and Winding Up the partnership
3. death of a partner
I. DEFINITIONS
II. CAUSES FOR DISSOLUTION
4. insolvency of any partner or the partnership
III. CONSEQUENCES OF DISSOLUTION 5. civil interdiction of any partner
IV. PARTNER’S LIABILITY
Judicial—
1. Decree of court upon application (Art. 1831,
I. Definitions
CC)
Dissolution (Art. 1828, CC)— a. application by partner (grounds)
Change in the partners’ relation caused by  insanity of any partner
any partner ceasing to be associated in the  incapacity of any partner to perform
carrying on of the business his part of the contract
 partner guilty of conduct prejudicial
Winding Up (JBL Reyes)— to the partnership business
Process of liquidation of partnership affairs,  wilfull breach of agreement by any
between dissolution and termination partner
 business can only be carried out
Termination (JBL Reyes)— with loss
When all the affairs of the partnership are b. application by purchaser of partnership
liquidated and the partnership is definitely interest may be allowed in the following
ended. It is the final settlement of accounts cases:
of the partnership  termination of term or undertaking
 partnership is at will and interest of
Effect of dissolution— partnership is assigned
Partnership continues until winding up is
completed (Art. 1829, CC).
III. Consequences of Dissolution
Effect of dissolution on the partners—
1. they cannot evade prior obligations Except as necessary for winding up, dissolution
2. Generally, they are spared from new terminates all authority of the partners to act for
obligations to which they didn’t consent, the partnership (Art. 1832, CC) 375
unless these are essential for the winding up
PARTNERSHIP
(Testate Estate of Mota v. Serra, 1925) Partnership is not bound by any act of a
partner when—
1. dissolution is not by the act, insolvency or
II. Causes for Dissolution
death of a partner
Voluntary— 2. dissolution is by such act, insolvency or
1. without violation of the agreement between death and the partners acting have
the partners (Art. 1830, CC) knowledge thereof
a. termination of the term or particular 3. acts not connected with winding up
undertaking
b. express will of any partner in good faith, Partnership is not bound with respect to
when the partnership is at will third persons (Art. 1834, CC)—
c. express will of all partners who have not 1. business becomes unlawful
assigned their interests or suffered them 2. partner dealing with third party becomes
to be charged insolvent
d. bona fide expulsion of any partner in 3. partner has no authority to wind up
accordance with the agreement
2. in contravention of the agreement, by Partner can bind the partnership even after
express will of one partner dissolution (Art. 1834, CC)—
 effects – partner is liable for damages; 1. acts appropriate to winding up
other partners may continue the 2. third person is in good faith and without
business knowledge of dissolution:
a. third person who extended credit to the
Involuntary (Grounds)— partnership
1. business becomes unlawful b. third person who knew the existence of
2. specific thing promised perishes before the partnership
delivery to the partnership, the use and

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VI. DISSOLUTION and WINDING UP
IV. Partner’s Liability 5. Not only the retiring partners but also the
new partnership itself which continued the
business of the dissolved one, are liable for
If partner transacts business with third
the debts of the prior partnership. A
persons notwithstanding death or insolvency rd
withdrawing partner remains liable to a 3
of a co-partner, liability shall be satisfied out
party creditor of the old partnership
of partnership assets alone if—
(Singsong vs. Isabela Sawmill, 1979).
1. Partner was unknown as partner to third
person
2. Partner is unknown and inactive in
partnership affairs
A partner still has existing liabilities to the

partnership at the time of the dissolution
(Art. 1835, CC)—
1. Dissolution does not discharge a partner
2. Discharged only by agreement among
partner, creditor and the person or
partnership continuing the business
3. In case of death:
 Individual property is liable for obligation
of the partnership incurred while he was
a partner, subject to prior payments of
individual debts.
Liability of partner or partnership continuing

the business (Art. 1840,CC)—
1. Contemplates seven situations:
a. When any partner is admitted into an
existing partnership
b. When any partner retires and assigns
his rights in partnership property to two 376
or more partners or third persons
PARTNERSHIP
c. When all but one partner retire and
assign their rights to the remaining
partner
d. Any partner retires or dies without any
assignment of his right in partnership
property
e. All the partners or their representatives
assign their rights in partnership
property to one or more third persons
who promise to pay the debts and who
continue the business of the dissolved
partnership
f. Any partner wrongfully causes a
dissolution
g. When a partner is expelled
2. When applicable: a partnership is dissolved

due to change in membership but the
remaining partners continue the business
without liquidation.
3. Effect: unpaid old creditors of the dissolved
partnership automatically become creditors
of the new partnership.
4. New partner’s liability: satisfied out of
partnership property only, unless with a
contrary stipulation

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CIVIL LAW REVIEWER Chapter VII. RIGHTS of PARTNERS upon DISSOLUTION
A partner who has caused the dissolution

Chapter VII. Rights of Partners Upon wrongfully shall have the right to—
Dissolution 1. If the business is not continued—
a. Each partner may have the partnership
I. RIGHT TO WIND UP
property applied to the payment of the
II. RIGHT TO DAMAGES FOR/TO CONTINUE
BUSINESS ON WRONGFUL DISSOLUTION firm’s debt
III. RIGHT TO LIEN OR RETENTION, TO STAND b. Surplus is applied to payment in cash of
IN PLACE OF CREDITOR, TO BE the net amount owed to the respective
INDEMNIFIED partners subject to payment of damages
IV. RIGHT OF RETIRING/DECEASED PARTNER 2. If the business is continued—
V. RIGHT TO ACCOUNT a. the right as against his co-partners and
all claiming through them in respect of
I. Right to Wind Up their interests in the partnership,
b. to have the value of his interest in the
partnership, less any damage caused to
Who has the right to wind up?
his co-partners by the dissolution,
1. By agreement
ascertained and paid to him in cash, or
2. If there is no agreement—
the payment secured by a bond
a. Partners who have not wrongfully
approved by the court,
dissolved the partnership
c. to be released from all existing liabilities
b. The legal representative of the last
of the partnership; but in ascertaining
surviving partner, not insolvent
the value of the partner's interest the
value of the good-will of the business
Any partner, his legal representative or his
shall not be considered.
assignee, upon cause shown, may obtain
winding up by the court.
III. Right to Lien or Retention, to Stand in
II. Right to Damages for or to Continue Place of Creditor, to be Indemnified
Business on Wrongful Dissolution
 Where a partnership contract is rescinded
on the ground of the fraud or
General Rule— 377
misrepresentation of one of the parties
1. Each partner may have the partnership
thereto, the party entitled to rescind is,
PARTNERSHIP
property applied to the payment of the firm’s
without prejudice to any other right, entitled:
debt
a. To a lien on, or right of retention of, the
2. Surplus is applied to payment in cash of the
surplus of the partnership property after
net amount owed to the respective partners
satisfying the partnership liabilities to
third persons for any sum of money paid
 Each partner who has not caused
by him for the purchase of an interest in
dissolution wrongfully shall have the right, as
the partnership and for any capital or
against each partner who has caused the
advances contributed by him;
dissolution wrongfully, to damages for
b. To stand, after all liabilities to third
breach of the agreement.
persons have been satisfied, in the
place of the creditors of the partnership
 The partners who have not caused the
for any payments made by him in
dissolution wrongfully, if they all desire to
respect of the partnership liabilities; and
continue the business in the same name
c. To be indemnified by the person guilty of
either by themselves or jointly with others,
the fraud or making the representation
may do so, during the agreed term for the
against all debts and liabilities of the
partnership and for that purpose may
partnership.
possess the partnership property, provided
a. they secure the payment by bond
approved by the court, or IV. Right of Retiring/Deceased Partner
b. pay any partner who has caused the (Art. 1841, CC)
dissolution wrongfully, the value of his
interest in the partnership at the Factual Situation—
dissolution, less any damages 1. any partner retires or dies, and
recoverable 2. the business is continued without any
c. In like manner indemnify him against all settlement of accounts as between him or
present or future partnership liabilities.

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CIVIL LAW REVIEWER Chapter VII. RIGHTS of PARTNERS upon DISSOLUTION
his estate and the person or partnership

continuing the business
Rights—
1. he or his legal representative as against
such person or partnership may have the
value of his interest at the date of dissolution
ascertained
2. either:
a. receive as an ordinary creditor an
amount equal to the value of his interest
in the dissolved partnership with
interest; or,
b. at his option or at the option of his legal
representative, receive in lieu of interest,
the profits attributable to the use of his
right in the property of the dissolved
partnership;
The provision shall not apply if there is an

agreement between the parties.
V. Right of Account (Art. 1842, CC)
The right to an account of his interest shall

accrue to any partner, or his legal
representative as against—
1. the winding up partners or the surviving
partners or
2. the person or partnership continuing the 378
business,
PARTNERSHIP
When right accrues—
At the date of dissolution, in the absence of
any agreement to the contrary.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VIII. RULES on SETTLEMENT
Chapter VIII. Rules on Settlement (Art.

1839, CC)
The rules for distribution will not apply if there is

a contrary agreement between the partners.
Rule of preference in the payment of

partnership liabilities—
1. those owed to creditors other than partners
2. those owed to partners other than capital
and profits
3. those owed to partners in respect of capital
4. those owed to partners in respect of profits
When assets are insufficient to satisfy

liabilities—
1. If refuses to contribute – a petition in court
may be filed for its enforcement.
2. If partner is dead – contribution may be
enforced against his private property
through the administrator
Doctrine of Marshalling of Assets—

If there are claims over both partnership assets
and partners’ individual properties, both in
custody of the court for distribution:
1. Partnership creditors are preferred with
regard to partnership property
2. Individual creditors are preferred with
respect to individual properties of partners.
3. Anything left from either goes to the other.
379
PARTNERSHIP
Order in case of insolvency of a partner or
his estate (in case of death)—
1. Separate creditors
2. Partnership creditors
3. Partners who gave contributions
Liquidation needed—
The business profits can’t be determined by
taking into account the result of 1 transaction
instead of all the transactions had, thus the need
for a general liquidation before a partner may
claim a specific sum as his share of the profits
(Sison v. McQuaid, 1953).
No return of shares without dissolution and

liquidation—
Because the firm’s outside creditors have
preference over the firm’s assets and the firm’s
property can’t be diminished to their prejudice
(Magdusa v. Albaran, 1962).

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CIVIL LAW REVIEWER Chapter IX. LIMITED PARTNERSHIP
Chapter IX. Limited Partnership Characteristics—

1. Complied with the statutory requirement of
I. DEFINITION form (Art. 1844 CC)
II. FORMING/AMENDING A LIMITED 2. The business is controlled by one or more
PARTNERSHIP general partners who are personally liable to
III. LIMITED PARTNER creditors (Arts. 1848, 1850 CC)
A. CONTRIBUTION 3. One or more limited partners contribute to
B. LIABILITIES OF A LIMITED PARTNER the capital and share in the profits but do not
1. TO THE PARTNERSHIP manage the business
2. AS TRUSTEE FOR THE 4. The limited partners are not personally liable
PARTNERSHIP for obligations beyond their contribution
3. LIABILITIES TO PARTNERSHIP (Arts. 1845, 1848, 1856 CC)
CREDITORS AND OTHER 5. Obligations or debts are paid out of
PARTNERS partnership assets and the general partner’s
i. CONTRIBUTES SERVICES separate assets
ii. SURNAME IN FIRM NAME 6. Limited partners may get back their capital
iii. FALSE STATEMENT contributions subject to conditions
iv. CONTROL OF BUSINESS prescribed by law (Arts. 1844, 1857 CC)
v. PROHIBITED TRANSACTIONS
vi. NON-COMPLIANCE WITH Advantages of limited partnerships—
REQUISITES FOR 1. For general partners: secure capital from
FORMATION others while retaining control and
4. LIABILITIES TO SEPARATE supervision of the business
CREDITORS 2. For limited partners: share in the profits
C. RIGHTS OF LIMITED PARTNERS without the risk of personal liability
1. COMMON RIGHTS OF LIMITED
AND GENERAL PARTNERS General Limited Partner
2. LOAN MONEY AND TRANSACT Partner
BUSINESS Extent of Personally Only to the
3. RETURN OF CONTRIBUTION liability liable for extent of his
partnership capital
4. SHARE OF PROFITS
obligations contributions 380
5. ASSIGN INTERESTS
Right to If manner of No participation
PARTNERSHIP
6. EFFECT OF DEATH OF A LIMITED participate in mgt. not agreed in management
PARTNER management upon, all
7. PERSON ERRONEOUSLY general
BELIEVING HE’S A LIMITED partners have
PARTNER an equal right in
IV. GENERAL PARTNER business mgt
V. DISSOLUTION Contribution Cash, property Cash or
VI. SETTLING OF ACCOUNTS AFTER or industry property only,
DISSOLUTION not industry
Proper party Proper party to Not proper party
to proceedings to proceedings
I. Definition proceedings by/against by/against
by or against partnership partnership
Limited Partnership the unless:
partnership 1. he is also a
1. formed by two or more persons; general partner
2. in accordance with the requirements of law; 2. where the
and object of the
3. composed of one or more general partners proceedings is
and one or more limited partners (Art. 1843, to enforce a
CC). limited partner's
right against or
Limited partners are not bound by the liability to the
partnership’s obligations (Art. 1843, CC). partnership
Name in firm Name may Name must
name appear in firm appear in firm
name name

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General Limited Partner General Limited

Partner Partnership Partnership
Prohibition to Prohibited No prohibition Dissoluti Rules governing Rules governing
engage in on and are Art. 1828-1842 are Art. 1860-1863
other Winding
business Up
Effect of Dissolves the Different effect;
retirement partnership rights II. Forming/Amending a Limited
death insanity transferred to
or insolvency legal rep. Partnership (Art. 1844, CC)
Assignability Not assignable Assignable
of interest in Two or more persons desiring to form a
partnership partnership shall—
1. Sign and swear to a certificate which shall
General Limited state the following items enumerated in Art.
Partnership Partnership 1844
Creation May be constituted Partners must: 2. File for record the certificate in the Office of
in any form, except (1) Sign and swear
Securities and Exchange Commission
where immovable to a certificate
property or real which shall state
rights are the items A limited partnership is formed if there has been
contributed, a enumerated in Art. substantial compliance in good faith with Art.
public instrument 1844 and 1844
shall be necessary
(2) File for record When the cert. of partnership may be
the certificate in the amended (CSAAG – CFCTM)—
Office of the 1. Change in partnership name or in the
Securities and
amount/character of contribution of any
Exchange
Commission limited partner
Compos Only general 1/more general 2. Substitution of a limited partner
ition partners partners and 3. Additional limited partner is admitted
1/more limited 4. Admission of a general partner
partners 5. General partner retires, dies, becomes 381
Firm Must contain the Name must include insolvent or insane, or under civil interdiction
PARTNERSHIP
name word “Company” the word “Limited” and the business is continued:
(SEC Memo Circ. (SEC Memo Circ. a. Under a right so to do stated in the
#14-00) unless it’s #14-00) certificate, or
a professional
b. With the consent of all members
partnership
6. Change in the character of business
7. False/erroneous statement in the cert.
Every partnership 8. Change in the time as stated in the cert. for
shall operate under The surname of a the dissolution of the partnership or return of
a firm name, which limited partner shall a contribution
may or may not not appear in the 9. Time is fixed for dissolution or return of a
include the name of partnership name contribution
one or more of the unless: 10. The Members want to change a statement in
partners.
the cert. to make it more accurate (Art.
(1) It is also the
surname of a 1864, CC)
general partner, or
Requirements to amend—
(2) Prior to the time 1. Must be in writing, under oath, and set forth
when the limited clearly the change desired
partner became 2. Signed and sworn to by all the members,
such, the business including the new members and assigning
has been carried on members
under a name in
3. The cert., as amended, must be filed in the
which his surname
appeared. SEC (Art. 1865, CC)

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When the certificate shall be cancelled— b. Whose claims arose before such return.
1. When the partnership is dissolved Liabilities to partnership creditors and other
2. When all limited partners cease to be such partners—
(Art. 1864, CC) 1. Contributes services (Art. 1845, CC); Effect
a. The limited partner:
Requirements to cancel— o Will be considered an industrial and
1. Must be in writing general partner; or
2. Signed by all the members o If the certificate states that he’s a
3. Filed with the SEC; if cancellation is court- limited partner, he will be a general
ordered, a certified copy of the order shall partner and limited partner at the
also be filed (Art.1865, CC) same time.
b. He divests himself of the privilege of
III. Limited Partner limited liability and will be exposed to all
the liabilities of a general partner.
2. Surname in firm name (Art.1846, CC)
Who may be limited partners—
General rule: the surname of a limited
1. A partnership – no
partner shall not appear in the partnership
2. A general partnership may be changed into
name
a limited one, and a partner in the former
 If used in firm name, he is liable as a
general partnership may be a limited partner
general partner to creditors who did
in the limited partnership formed.
not know that he is not a general
partner.
Contribution—
3. False statement (Art. 1847, CC)
May be cash or property, but not services.
If a person suffers loss by reliance on the
false statement in the certificate, he may
Liabilities of a Limited Partner—
hold liable any party to the certificate who
General rule: He is not liable as a general
knew the statement to be false:
partner. His liability is limited to the extent of
a. At the time he signed the certificate, or
his contribution to the partnership.
b. Subsequently but within a sufficient time
before the reliance to enable him to
Liabilities to the partnership (Art. 1858, CC)—
amend or cancel the certificate
1. Difference between his actual contribution
4. Control of business (Art. 1848, CC)
382
and that stated in the certificate as having
PARTNERSHIP
a. He becomes liable as a general partner
been made
without acquiring the rights of one.
2. Unpaid contributions which he agreed to
b. Control here contemplates active
make at specified future time and on the
participation in the business and not just
conditions stated in the certificate
having the option to exercise control.
5. Prohibited Transactions (Art. 1854, CC)
Liabilities as Trustee for the Partnership
a. Prohibited transactions of limited
1. Specific property which he committed but
partners:
did not contribute, or which he contributed
 Receiving or holding as collateral
but was wrongfully returned to him
security any partnership property
2. Money or property wrongfully paid or
 Receiving any payment,
conveyed to him
conveyance, or release from liability
rd
if it will prejudice the rights of 3
 Liabilities of a limited partner can be waived
persons
or compromised only by the consent of all
b. If prohibited acts are performed
the members. However, this too shall not
 Presumption of fraud on the
affect the right of the creditor who:
creditors.
a. Extended credit; or
 But the law does not absolutely
b. Whose claim arose after the filing and
prohibit the taking as collateral
before a cancellation or amendment of
security of the property, as the
the certificate.
prohibitions are modified by the
 Even if a limited partner rightfully received
requirement of sufficient assets to
back his contribution to capital, he remains
discharge the partnership
liable to the partnership for any sum
obligations.
necessary to discharge the liabilities of the
partnership to creditors who:
a. Extended credit or

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6. Non-compliance with requisites for formation 3. Return of contribution (Art.1857,CC)

(Art. 1844 par.2, CC) a. Conditions for return:
If there is no substantial compliance:  All liabilities to non-partner creditors
 The partnership becomes a general had been paid, or there are
rd
partnership with respect to 3 sufficient assets to satisfy them, or
persons  All members consent, unless the
 The members are liable as general limited partner desiring the return
partners. has lawfully demanded the return of
his contribution, or
Liabilities to separate creditors—  The certificate had been cancelled
1. Right of creditors of a limited partner to or amended as to reflect the
petition a court of competent jurisdiction to: withdrawal or reduction of
a. Charge the interest of the indebted contribution.
limited partner with the payment of the b. When return may be demanded:
unsatisfied amount of the claim  On the dissolution of the partnership
b. Appoint a receiver to preserve the  On the arrival of the date specified
interest in the certificate
c. Make all other orders as the  On the lapse of 6 months from
circumstances would require notice in writing to all other
2. The interest may be redeemed with the members if no time is specified
separate property of any general partner but c. General rule: return of contribution is in
not with partnership property. (Art. 1862, cash, except:
CC)  if there is a statement to that effect
 This is different from the rule in general in the certificate or all partners
partnership where the interest can also consent
be redeemed with partnership property. d. Dissolution, upon petition of limited
(Art. 1814, CC) partner:
 When he rightfully but
Rights of Limited Partners— unsuccessfully demands the return
1. Common rights of limited and general of his contribution
partners (Art. 1851, CC)  The other liabilities of the
a. Demand that partnership books be kept partnership have not been paid pr
383
PARTNERSHIP
at the principal place of business property is insufficient for payment
b. Inspect and copy any of the books and the limited partner would
c. Demand true and full info of all things otherwise be entitled to the return of
affecting the partnership his contribution
d. Demand a formal account whenever e. In case of several limited partners:
circumstances render it just and  Members may agree to give priority
reasonable to one or more limited partners, and
e. Resort to the court for the dissolution  This must be stated in the certificate
and winding up of the business of partnership. The preference
f. Receive a share of the profits or other covers –
compensation by way of income o Return of contributions;
g. Demand the return of his contribution o Compensation; and
provided assets are more than the o Other matters where some
liabilities benefit is granted (Art. 1855,
2. Loan money and transact business (Art. CC).
1854, CC) f. In the absence of such statement, all the
a. Limited partner allowed to loan money, limited partners shall stand upon equal
transact business because the footing.
relationship between the limited partner 4. Share of profits (Art. 1856, CC)
and partnership is not based on trust  When the assets exceed liabilities
and confidence. There is no conflict of (except those to limited and general
interests. partners), a limited partner may recover
b. Unless he is also a general partner, he his share in the profits or compensation
is entitled to a pro rata share of the by way of income stipulated in the
partnership assets together with the certificate.
general creditors. 5. Assign interests (Art. 1859, CC)
a. A limited partner’s interest is assignable.

lOMoARcPSD|3291925
b. Substituted limited partner: a person 7. Person erroneously believing he is a limited

admitted to all the rights of a limited partner (Art. 1852, CC)
partner who has died or assigned his a. A person who has contributed capital
interest in a partnership erroneously believing that he has
 He has all the rights and powers of become a limited partner:
a limited partner  Does not become a general partner,
 Subject to all restrictions and or
liabilities of his assignor except:  Become bound by the obligations of
o those he was ignorant of when the partnership, if:
he became a limited partner and o he exercises the rights of a
could not be ascertained in the limited partner
certificate o on ascertaining his mistake he
c. An assignee who does not become a promptly renounces his interest
substituted limited partner has: in the profits of the business
 No right to require any information
or account of partnership IV. General Partner
transactions
 No right to inspect partnership
A general partner shall have all the rights and
books
powers and is subject to all the restrictions and
 Only entitled to receive the
liabilities of a partner in a partnership without
assignor’s share of the profits or
limited partners.
other compensation by way of
income
General partners cannot, without the written
 Only entitled to the return of the
consent or written ratification of all limited
assignor’s contribution
partners, do the ff. (ACAP-ACA)—
d. The assignee shall have the right to
1. Any act in contravention of the certificate
become a substituted limited partner if –
2. Confess judgment
 All the members consent, or
3. Any act which would make it impossible to
 The assignor is empowered in the
carry on the partnership business
articles of partnership, and he gave
4. Possess partnership property, or assign
the assignee the right to be a
substituted limited partner.
their rights in specific partnership property 384
for other than a partnership purpose
PARTNERSHIP
In either case, it is still required that the
5. Admit a person as a general partner
certificate be amended (Art. 1865, CC)
6. Continue the business with partnership
and registered with the SEC.
property on the death, retirement, insanity,
e. That the assignee has become a
civil interdiction or insolvency of a general
substituted limited partner does not
partner, unless the power is granted in the
relieve the assignor from liabilities to the
certificate
partnership under Art. 1858, as a
7. Admit a person as a limited partner, unless
trustee, or for false statement in the
the right is granted in the certificate (Art.
certificate.
1850, CC)
6. Effect of death of a limited partner (Art.
1861, CC)
a. Rights of executors or administrators: V. Dissolution
 All the rights of a limited partner for
the purpose of settling the estate When a limited partnership may be
 If the deceased had assigned his dissolved—
interest in the partnership, the 1. The misconduct of a general partner
executor or administrator may 2. Fraud on the limited partner by the general
constitute the assignee a substituted partner
limited partner if the deceased was 3. The retirement, death, insolvency, insanity,
empowered to do so or civil interdiction of a general partner,
b. The deceased limited partner’s estate is except: if the business is continued by the
liable for all the deceased’s obligations remaining general partners
and liabilities to the partnership as a a. Under a right stated in the certification
limited partner b. When all members consented to the
continuation (Art. 1860, CC)
4. When all the limited partners ceased to be
such (Art. 1864, CC)

lOMoARcPSD|3291925
5. End of the term for which it was to exist (Art.

1844, CC)
6. By mutual consent of the partners before the
end of the firm’s original term
7. When the limited partner demanded the
return of his contribution but was
unjustifiably denied (Art. 1857, CC)
8. The causes in Arts. 1830 and 1831.
If dissolved by expiration of the fixed term, the

notice of dissolution need not be given since the
papers filed in the SEC are notice to the world.
If dissolved by express will of the partners, the

certificate should be cancelled, and dissolution is
not effected until there has been compliance
with this requirement.
VI. Settling Accounts for Dissolution
Order of priority in the payment of liabilities

(Art. 1863, CC)—
1. Those owed to creditors, in the order of
priority provided by law (Arts. 2236-2251,
CC), except those to limited partners on
account of their contribution and to general
partners
2. Those to limited partners in respect to their
share of the profits and other compensation
by way of income in their contributions 385
3. Those to limited partners in respect of their
PARTNERSHIP
capital contributions
4. Those to general partners other than for
capital and profits
5. Those to general partners in respect to
profits
6. Those to general partners in respect to
capital
General partners have the duty and power to

wind up the partnership’s affairs—
If there is no agreement, the limited partners
shall share in the partnership assets and
profits in proportion to the respective
amounts of their claims (Art. 1863, CC)
- end of Partnership -

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TORTS & DAMAGES

Table of Contents
Chapter I. Introduction, Definitions............388

A. Tort and Quasi-Delict ........................388
B. Damages ...........................................389
Chapter II. Concept of Quasi-Delict............390

A. Elements ...........................................390
B. Distinguished.....................................390
Chapter III. Negligence ................................392

A. Concept of Negligence......................392
B. Degrees of Negligence......................393
C. Proof of Negligence...........................393
D. Defenses ...........................................394
Chapter IV. Causation..................................396

A. Proximate Cause...............................396
Chapter V. Persons Liable...........................399

A. The Tortfeasor...................................399
B. Vicarious Liability ..............................399
C. Specific Liability.................................403
D. Joint and Solidary Liability ................407
E. Civil Liability Arising From Crime...........407
F. Prescription .......................................408

Contract.........................................................409
Chapter VII. Torts with Independent Civil 387

Action ............................................................410
TORTS & DAMAGES

A. Violation of Civil and Political Rights.410
B. Defamation, Fraud, Physical Injuries 410
Chapter VIII. Human Relations Provisions 413

A. Abuse of Rights.................................413
B. Acts Contra Bonus Mores .................413
Other Torts ...............................................414
C. Dereliction of Duty.............................414
D. Illegal Acts .........................................414
E. Unfair Competition ............................414
F. Violation of Human Dignity................414
Chapter IX. Damages ...................................415

A. Definition and Concept......................415
B. Kinds of Damages.............................415

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. INTRODUCTION, DEFINITIONS
Chapter I. Introduction, Definitions

TORTS & DAMAGES TEAM
TORTS & DAMAGES

Prof. Gwen Grecia-De Vera A. Tort and Quasi-Delict
Faculty Editor B. Damages
Ana Patricia Ruiz Tobias
Lead Writer
A. Tort and Quasi-Delict
Darwin Angeles
Ron Michael Garcia 1. Tort
Jena de Mesa
Juan Antonio Oposa  Essentially, "tort" consists in the violation of
Writers
a right given or the omission of a duty
CIVIL LAW imposed by law. Tort is a breach of a legal
duty. (Naguiat vs. NLRC, 1997)
Kristine Bongcaron
Patricia Tobias
 A tort is civil wrong, other than breach of
Subject Editors contract, for which a court of law will afford a
remedy in the form of an action for
ACADEMICS COMMITTEE damages. [Prosser, Handbook of the Law of
Kristine Bongcaron Torts]
Michelle Dy
Patrich Leccio Elements:
Editors-in-Chief  A legal duty
PRINTING & DISTRIBUTION  Breach
 Causation
Kae Guerrero
 Damage
DESIGN & LAYOUT
Pat Hernandez 2. Quasi-Delict
Viktor Fontanilla Art. 2176. Whoever by act or omission causes
Rusell Aragones damage to another, there being fault or negligence, is
Romualdo Menzon Jr. obliged to pay for the damage done. Such fault or
Rania Joya negligence, if there is no pre-existing contractual
relation between the parties, is called a quasi-delict
LECTURES COMMITTEE and is governed by the provisions of the Civil Code
Michelle Arias Chapter on quasi-delicts.
Camille Maranan
Angela Sandalo Barredo vs. Garcia (1952): A quasi-delict or 388
Heads "culpa aquiliana" is a separate legal institution
TORTS & DAMAGES

Katz Manzano Mary Rose Beley under the Civil Code, entirely independent from
Sam Nuñez Krizel Malabanan a delict or crime. A concurrence of scope in
Volunteers regard to negligent acts does not destroy the
distinction between the civil liability arising from
MOCK BAR COMMITTEE a crime and the responsibility for cuasi- delitos
or culpa extra-contractual. The same negligent
Lilibeth Perez
act causing damages may produce civil liability
BAR CANDIDATES WELFARE arising from a crime under article 100 of the
Revised Penal Code, or create an action for
Dahlia Salamat
cuasi-delito or culpa extra-contractual.
LOGISTICS
Elcano vs. Hill (1977): Article 2176, where it
Charisse Mendoza refers to "fault or negligence”, covers not only
SECRETARIAT COMMITTEE acts "not punishable by law" but also acts
criminal in character, whether intentional and
Jill Hernandez voluntary or negligent.
Head
Loraine Mendoza Faye Celso [There is also the other view which states
Mary Mendoza Joie Bajo otherwise. To make it balanced you should
Members
include the other view]

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. INTRODUCTION, DEFINITIONS
B. Damages
1. Damage, Damages, Injury
Custodio v. CA (1996): (Damage vs. Injury)

Injury is the illegal invasion of a legal right.
Damage is the loss, hurt, or harm which results
from the injury. Damages are the recompense
or compensation awarded for the damage
suffered.
People vs. Ballesteros (1998): Damages may be

defined as 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 right.
2. Damnum Absque Injuria
Custodio vs. CA (1996): To warrant damages

there must be a right of action for a legal wrong
inflicted by the defendant and damage resulting
to plaintiff. Mere fact that plaintiff suffered loss
does not give rise to a right to recover damages.
Proper exercise of a lawful right cannot
constitute a legal wrong.
389
TORTS & DAMAGES

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. CONCEPT of QUASI-DELICT
create two kinds of civil liabilities against the

Chapter II. Concept of Quasi-Delict accused and, where provided by law, his
employer. Civil liability is not extinguished by
A. Elements acquittal where the acquittal is based on
B. Distinguished reasonable doubt. However, the offended party
1. Quasi-Delict vs. Delict cannot recover damages under both types of
2. Quasi-Delict vs. Breach of
liability. (Asked in the 1990 and 2003 bar exams)
Contract
II. Quasi-Delict vs. Breach of Contract
A. Elements
 Act or omission amounting to fault or Cangco vs. Manila Railroad (1918): The field of
negligence non- contractual obligation is much broader than
 Damage or injury is caused to another that of contractual obligations. These two fields
 Causal connection between damage done are concentric: the mere fact that a person is
and act/omission. (Art. 2176) bound to another by contract does not relieve
 There is no pre-existing contractual relations him from extra-contractual liability to such
between the parties
1 person. When such a contractual relation exists
the obligor may break the contract under such
In order that liability under Article 2176 of the conditions that the same act constitutes the
Civil Code will arise the following requisites must source of an extra-contractual obligation, had no
exist: contract existed between the parties.
a. There must be damage or prejudice which
must be proven by the party claiming it; Air France vs. Carrascoso (1966): The act that
b. There must be an unlawful act or omission breaks the contract of carriage may also be a
amounting to fault or negligence; and tort.
c. There must be a direct causal connection
between the damage or prejudice and the Far East v. CA (1995): The doctrine that “a
act or omission. (Manresa; Taylor vs. Manila quasi-delict can be the cause for breaching a
Electric Co.; Jarencio, Torts and Damages) contract that might thereby permit the application
of applicable principles on tort even where there
is a pre-existing contract between the plaintiff
and the defendant can aptly govern only where
B. Distinguished the act or omission complained of would
constitute an actionable tort independently of the
I. Quasi-Delict vs. Delict contract. Where, without a pre-existing contract 390
between two parties, an act or omission can
TORTS & DAMAGES

Quasi-Delict Delict nonetheless amount to an actionable tort by
private concern public interest itself, the fact that the parties are contractually
CC repairs the damage by RPC punishes and bound is no bar to the application of quasi-delict
indemnification corrects the act provisions.
includes all acts in which Punishes only when
"any kind of fault or there is a penal law
negligence intervenes." covering the act
solidary liability of Subsidiary liability of
employer employer
ER’s defense is that ER’s defense is that
accused observed due employee’s resources
diligence of a good father must first be exhausted
of a family
(Barredo vs. Garcia)
Padilla vs. CA (1997): The extinction of the civil

action by reason of acquittal in the criminal case
refers exclusively to civil liability ex delicto
founded on Article 100 of the Revised Penal
Code. The same punishable act or omission can
1
However, the court has held that there can be a tort even
where there is a pre-existing contract between the parties.
(Far East vs. CA, infra)

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. CONCEPT of QUASI-DELICT
CONTRACT QUASI DELICT DELICT

Vinculum Juris Contract Negligent act/ omission (culpa, Act committed by means
imprudence) of dolo (deliberate,
malicious, in bad faith)
Proof Needed Preponderance of evidence Preponderance of evidence Proof beyond reasonable
doubt
Defense available Exercise of extraordinary Exercise of diligence of good
diligence (in contract of father of a family in the
carriage), Force Majeure selection and supervision of
employees
Pre-existing There is pre-existing contract No pre-existing contract [not No pre-existing contract
contract necessarily]
Burden of proof Contractual party. Prove the ff: Victim. Prove the ff.: Prosecution. Accused is
1. existence of a contract 1. damage presumed innocent until
2. breach 2.negligence 3. causal the contrary is proved.
connection between negligence
and damage done
(Asked in the 2003 bar exams)
391
TORTS & DAMAGES

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter III. NEGLIGENCE
Chapter III. Negligence
A. CONCEPT OF NEGLIGENCE
1. DEFINITION; ELEMENTS
2. STANDARD OF CONDUCT
i. SPECIAL CASES
a. CHILDREN
b. EXPERTS/PROFESSIONALS
c. INSANITY
ii. EMERGENCY RULE
B. DEGREES OF NEGLIGENCE
C. PROOF OF NEGLIGENCE
1. BURDEN OF PROOF
2. PRESUMPTIONS
3. RES IPSA LOQUITUR
D. DEFENSES
1. PLAINTIFF'S NEGLIGENCE
2. CONTRIBUTORY NEGLIGENCE
3. FORTUITOUS EVENT
4. ASSUMPTION OF RISK
5. DUE DILIGENCE
6. PRESCRIPTION
7. DOUBLE RECOVERY
392
TORTS & DAMAGES

lOMoARcPSD|3291925
Cruz vs. CA (1997): Whether or not a Marinduque vs. Workmen's (1956): "Notorious"
physician has committed an negligence, is the same thing as "gross"
"inexcusable lack of precaution" in the negligence: pursuing a course of conduct which
treatment of his patient is to be would naturally and probably result in injury, or
determined according to the standard of utter disregard of consequences.
care observed by other members of the
profession in good standing under Benguet vs. CA (1999): Acting or omitting to act
similar circumstances bearing in mind in a situation where there is duty to act, not
the advanced state of the profession at inadvertently but willfully and intentionally, with a
the time of treatment or the present conscious indifference to consequences in so far
state of medical science. as other persons may be affected.
c) Insanity
C. Proof of Negligence
Art. 2180. …Guardians are liable for damages caused
by the minors or incapacitated persons who are under
their authority and live in their company… 1. Burden of Proof (ROC)
Art. 2182. If the minor or insane person causing Rule 131, Sec. 3(c and d)
damage has no parents or guardian, the minor or
insane person shall be answerable with his own (c) That a person intends the ordinary consequences
property in an action against him where a guardian ad of his voluntary act;
litem shall be appointed.
(d) That a person takes ordinary care of his concerns:
US vs. Baggay (1911): A lunatic or
insane person who, in spite of his 2. Presumptions
irresponsibility on account of the
deplorable condition of his deranged Art. 2184. In motor vehicle mishaps, the owner is
mind, is still reasonably and justly liable solidarily liable with his driver, if the former, who was
with his property for the consequences in the vehicle, could have, by the use of due diligence,
of his acts. prevented the misfortune. It is disputable presumed
that the driver was negligent, if he had been found
guilty of reckless driving or violating traffic regulations
ii. Emergency Rule at least twice within the next preceding two months.
Valenzuela vs. CA (1996): An individual who

Art. 2185. Unless there is proof to the contrary, it is 393
presumed that a person driving a motor vehicle has
TORTS & DAMAGES

suddenly finds himself in a situation of been negligent if at the time of the mishap, he was
danger and is required to act without much violating any traffic regulation.
time to consider the best means that may be Art. 2188. There is prima facie presumption of
adopted to avoid the impending danger, is negligence if the death or injury results from his
not guilty of negligence if he fails to possession of dangerous weapons or substances,
such as firearms and poison, except when the use or
undertake what subsequently and upon
possession thereof is indispensable in his occupation
reflection may appear to be a better solution, or business.
unless the emergency was brought by his Art. 1735. In all cases other than those mentioned in
own negligence. Nos. 1, 2, 3, 4, and 5 of the preceding article
(calamity, act of public enemy in war, act of owner of
the goods, character of the goods, order of competent
B. Degrees of Negligence public authority), if the goods are lost destroyed or
deteriorated, common carriers are presumed to have
been at fault or to have acted negligently, unless they
Art. 2231. In quasi-delicts, exemplary damages may prove that they observed extraordinary diligence as
be granted if the defendant acted with gross required under Art. 1733.
negligence.
3. Res Ipsa Loquitur
Amedo vs Rio (1952): Gross negligence is a
want of even a slight care or diligence; an entire Layugan vs. IAC 1988): Res ipsa loquitur (The
want of care that raises the presumption that the thing speaks for itself): Where the thing which
person at fault is conscious of the probable causes injury is shown to be under the
consequence thereof, and is indifferent or worse, management of the defendant, and the accident
to the danger or injury to persons or property. is such as in the ordinary course of things does

lOMoARcPSD|3291925
not happen if those who have the management Bernardo vs. Legaspi (1914): Both of the parties
use proper care, it affords reasonable evidence, contributed to the proximate cause; hence, they
in the absence of an explanation by the cannot recover from one another.
defendant, that the accident arose from want of
care. 2. Contributory Negligence
Ramos vs. CA (1999): The injury itself, taken Art. 2214. In quasi-delicts, the contributory negligence
together with the circumstances raises the of the plaintiff shall reduce the damages that he may
presumption of negligence that the defendant recover.
must meet with an explanation.
Genobiagon vs. CA (1989): The alleged
Elements: contributory negligence of the victim, if any, does
 The accident is such that it would not not exonerate the accused in criminal cases
have happened in the ordinary course of committed through reckless imprudence, since
events without the negligence of one cannot allege the negligence of another to
someone; evade the effects of his own negligence.
 The defendant exercises control and
management. Rakes vs. Atlantic (1907): If so, the
 There is no contributory negligence on disobedience of the plaintiff in placing himself in
the part of the plaintiff. danger contributed in some degree to the injury
as a proximate, although not as its primary
DM Consunji vs. CA (2001): The res ipsa cause.
loquitur doctrine is based in part upon the theory
that the defendant in charge of the (Supreme Court in this case cited numerous
instrumentality which causes the injury either foreign precedents, mostly leaning towards the
knows the cause of the accident or has the best doctrine that contributory negligence on the part
opportunity of ascertaining it and that the plaintiff of the plaintiff did not exonerate defendant from
has no such knowledge, and therefore is liability, but it led to the reduction of damages
compelled to allege negligence in general terms awarded to the plantiff.)
and to rely upon the proof of the happening of
the accident in order to establish negligence. 3. Fortuitous Event
Art. 1174. Except in cases expressly specified by the

(NOTE: For the res ipsa loquitur doctrine to
law, or when it is otherwise declared by stipulation, or
apply, it must appear that the injured party had
no knowledge as to the cause of the accident, or
when the nature of the obligation requires the 394
assumption of risk, no person shall be seen
TORTS & DAMAGES

that the party to be charged with negligence has responsible for those events which, could not
superior knowledge or opportunity for foreseen, or which, though foreseen, were inevitable.
explanation of the accident.)
Juntilla vs. Fontanar (1985): The elements of
caso fortuito are:
D. Defenses 1. the cause of the unforeseen and unexpected
occurrence, or of the failure of the debtor to
1. Plaintiff’s Negligence comply with his obligation, must be
independent of the human will;
Art. 2179. When the plaintiff’s own negligence was the
2. It must be impossible to foresee the event or
immediate and proximate cause of his injury, he if it can be foreseen, it must be impossible to
cannot recover damages. But if his negligence was avoid;
only contributory, the immediate and proximate cause 3. The occurrence must be such as to render it
of the injury being the defendant’s lack of due care, impossible for the debtor to fulfill his
the plaintiff may recover damages, but the courts shall obligation in a normal manner;
mitigate the damages to be awarded. 4. The obligor must be free from any
participation in the aggravation of the injury
Manila Electric vs. Remonquillo (1956): Even if resulting to the creditor.
Manila Electric is negligent, in order that it may
be held liable, its negligence must be the Hernandez vs. COA (1984): The robbery that
proximate and direct cause of the accident. happened to him cannot be said to be the result
of his imprudence and negligence. This was
undoubtedly a fortuitous event covered by the
said provisions, something that could not have

lOMoARcPSD|3291925
been reasonably foreseen although it could have

happened.
4. Assumption of Risk
Afialda vs. Hisole (1958): It is the caretaker's

business to try to prevent the animal from
causing injury or damage to anyone, including
himself. It was a risk he voluntarily assumed.
Exception:
Ilocos Norte vs. CA (1989): A person is excused

from the force of the rule (volenti non fit injuria),
that when he voluntarily assents to a known
danger he must abide by the consequences, if
an emergency is found to exist or if the life or
property of another is in peril or when he seeks
to rescue his endangered property.
5. Due Diligence
MMTC vs. CA (1998): Due diligence in the

supervision of employees, on the other hand,
includes the formulation of suitable rules and
regulations for the guidance of employees and
the issuance of proper instructions intended for
the protection of the public and persons with
whom the employer has relations through his or
its employees and the imposition of necessary
disciplinary measures upon employees in case
of breach or as may be warranted to ensure the
performance of acts indispensable to the
business of and beneficial to their employer.
395
6. Prescription
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 4 years for QD
 1 year for defamation
Kramer vs. CA (1989): It is clear that the

prescriptive period must be counted from the
time of the commission of an act or omission
violative of the right of the plaintiff, which is the
time when the cause of action arises.
Allied Banking vs. CA (1989): Relations Back

Doctrine (footnote 17 of Allied Banking case):
That principle of law by which an act done at one
time is considered by a fiction of law to have
been done at some antecedent period.
7. Double Recovery
Art. 2177. Responsibility for fault or negligence under

the preceding article is entirely separate and distinct
from the civil liability arising from negligence under the
Penal Code. But the plaintiff cannot recover damages
twice for the same act or omission of the defendant.

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CIVIL LAW REVIEWER Chapter IV. CAUSATION
2. Distinguished from Other Kinds

Chapter IV. Causation
i. Remote
A. PROXIMATE CAUSE
1. DEFINITION Manila Electric Co. v. Remonquillo (1956): A
2. DISTINGUISHED FROM OTHER prior and remote cause cannot be made the
KINDS
i. REMOTE
basis of an action if such remote cause did
ii. CONCURRENT nothing more than furnish the condition or give
3. TESTS TO DETERMINE THE rise to the occasion by which the injury was
PROXIMATE CAUSE made possible, if there intervened between such
4. EFFICIENT INTERVENING CAUSE prior or remote cause and the injury, a distinct,
5. LAST CLEAR CHANCE successive, unrelated and efficient cause of the
injury, even though such injury would not have
A. Proximate Cause happened but for such condition or occasion.
If no danger existed in the condition except

1. Definition
because of the independent cause, such
condition was not the proximate cause. And if an
Bataclan vs. Medina (1960): that acting first and
independent negligent act or defective condition
producing the injury, either immediately or by
sets into operation the circumstances which
setting other events in motion, all constituting a
result in injury because of the prior defective
natural and continuous chain of events, each
condition, such act or condition is the proximate
having a close causal connection with its
cause.
immediate predecessor, the final event in the
chain immediately effecting the injury as a
ii. Concurrent
natural and probable result of the cause which
first acted, under such circumstances that the
Far Eastern vs. CA (1998): Where the
person responsible for the first event should, as
concurrent or successive acts of 2 or
an ordinarily prudent and negligent person, have
more persons, although done
reasonable ground to expect at the moment of
independently, constitute in combination
his act or default that an injury to some person
the proximate cause of the injury to the
might probably result therefrom.” rd
3 person, either shall be responsible
for the whole injury.
Lambert v. Heirs of Ray Castillon (2005):
Proximate cause is defined as that which, in the 396
3. Tests to determine the proximate cause
natural and continuous sequence unbroken by
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any efficient, intervening cause, produces the
Cause in fact: The first step is to determine
injury, and without which the result would not
whether the defendant’s conduct, in point of fact,
have occurred.
was a factor in causing plaintiff’s damage.
Pilipinas Bank vs. CA (1994): ...and from which it
Effectiveness of the cause; “but for” rule:
ought to have been foreseen or reasonably
whether such negligent conduct is a cause
anticipated by a person of ordinary care that the
without which the injury would not have taken
injury complained of or some similar injury,
place (sine qua non rule) or is the efficient cause
would result therefrom as a natural and probable
which set in motion the chain of circumstances
consequence.
leading to the injury. (Bataclan v. Medina)
(NOTE: Same definition as in the Bataclan case,
1. Substantial factor test under
except that the SC added the element of
Restatement: If the actor’s conduct is a
FORESEEABILITY.)
substantial factor in bringing about harm
to another, the fact that the actor neither
Quezon City vs. Dacara (2005): Proximate
foresees nor should have foreseen the
cause is determined from the facts of each case,
harm or the manner in which it occurred,
upon a combined consideration of logic,
does not prevent him from being liable.
common sense, policy or precedent.
(Philippine Rabit v. IAC)
2. Foreseeability test: Anticipation of

consequence is a necessary element in
determining not only whether a

lOMoARcPSD|3291925
particular act or omission was negligent, Elements:

but also whether the injury complained 1) Plaintiff’s own negligence put himself
of was proximately caused by such act in a dangerous situation
or omission. 2) Defendant saw/discovered, by
exercising reasonable care, perilous
3. Natural and probable consequence position of plaintiff
test: A natural consequence of an act is 3) In due time to avoid injuring him
the consequence which ordinarily 4) Despite notice and imminent peril,
follows it. A probable consequence is defendant failed to employ care to
one that is more likely to follow than fail avoid injury
to follow its supposed cause but it need 5) Injury of plaintiff resulted.
not be one which necessarily follow
such cause. Doctrine covers successive acts of
negligence:
4. Ordinary and natural or direct Primary negligence of the defendant 
consequence test: if negligence is a contributory negligence of the plaintiff 
cause in fact of the injury , the liability of subsequent negligence of the defendant in
the wrongdoer extends to all the failing to avoid the injury to the plaintiff
injurious consequences.
The doctrine cannot be extended into the field of
5. Hindsight test: A party guilty of joint tortfeasors as a test of whether only one of
negligence or omission of duty is them should be held liable to the injured person
responsible for all the consequences by reason of his discovery of the latter’s peril,
which a prudent and experienced party, and it cannot be invoked as between defendants
fully acquainted with all the concurrently negligent.
circumstances which in fact exist,
whether they could have been As against third persons, a negligent actor
ascertained by reasonable diligence, or cannot defend by pleading that another had
not, would have thought at the time of negligently failed to take action which could have
the negligent act as reasonably possible avoided the injury.
to follow, if they had been suggested to
his mind. Picart vs. Smith (1918): If both parties are found
to be negligent; but, their negligence are not
6. Orbit of the risk test: If the foreseeable contemporaneous, the person who has the last
risk to plaintiff created a duty which the fair chance to avoid the impending harm and 397
defendant breached, liability is imposed fails to do so is chargeable with the
TORTS & DAMAGES

for any resulting injury within the orbit or consequences, without reference to the prior
scope of such injury. It is not the negligence of the other party.
unusual nature of the act resulting in
injury to plaintiff that is the test of Bustamante vs. CA (1991): The doctrine of last
foreseeability, but whether the result of clear chance, as enunciated in Anuran v. Buno,
the act is within the ambit of the hazards applies in a suit between the owners and drivers
covered by the duty imposed upon the of colliding vehicles. It does not arise where a
defendant. passenger demands responsibility from the
carrier to enforce its contractual obligations. It
4. Efficient Intervening Cause will be inequitable to exempt the negligent driver
of the jeepney and its owners on the ground that
Teague vs. Fernandez (1973): The test is not in the other driver was likewise guilty of negligence
the number of intervening causes, but in their
character and in the natural and probable Phoenix vs. IAC (1987): Doctrine of last clear
connection between the wrong done and the chance does not seem to have a role to play in a
injurious consequence. jurisdiction where the common law concept of
contributory negligence as an absolute bar to
5. Last Clear Chance recovery by the plaintiff, has itself been rejected,
as it has been in 2179 of CC
Also known as: "doctrine of discovered peril” or
“doctrine of supervening negligence.” (NOTE: Interpretation of 2179: It is not just the
relative location in the continuum of time of the
negligence of both parties but also the weighing

lOMoARcPSD|3291925
and assessing of other factors such as the

nature of the negligent act/omission and the
character and gravity of the risks created by
such for the rest of the community.
a) If plaintiff IS the proximate cause: NO
RECOVERY can be made.
b) If plaintiff is NOT the proximate cause:
Recovery can be made but such will be
mitigated.
c) If negligence of parties are equal in degree,
then each bears his own loss.)
Pantranco vs. Baesa (1989): Last clear chance

applies only if the person who allegedly had the
last opportunity to avert the accident was aware
of the existence of peril or should, with exercise
of due care, have been aware of it.
Ong vs. Metropolitan (1958): Last clear chance

does not apply where the party charged is
required to act instantaneously, and if the injury
cannot be avoided by the application of all
means at hand after the peril is or should have
been discovered.
Emergency rule: McKee v. IAC (1992): 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
emergency in which he finds himself is brought
about by his own negligence. 398
TORTS & DAMAGES

Consolidated Bank vs. CA (2003): This is a case
of culpa contractual where neither contributory
negligence nor last clear chance will exonerate
defendant from liability. (NOTE: This means that
Last Clear Chance is not a defense in culpa
contractual.)

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter V. PERSONS LIABLE
 Were the liability subsidiary and not primary

Chapter V. Persons Liable and solidary, the defense of due diligence
would not be available
A. THE TORTFEASOR
B. VICARIOUS LIABILITY Basis of Liability
1. PARENTS Arises by virtue of a presumption juris tantum of
2. GUARDIANS
negligence on the part of the persons made
3. TEACHERS AND HEADS OF
INSTITUTIONS responsible under the article, derived from their
4. OWNERS AND MANAGERS OF failure to exercise due care and vigilance over
ESTABLISHMENTS the acts of the subordinates to prevent them
5. EMPLOYERS from causing damage.
6. STATE
C. SPECIFIC LIABILITY The non-performance of certain duties of
1. Possessor of Animals precaution and prudence imposed upon the
2. Things Thrown or Falling from a Building persons who become responsible by civil bond
3. Death/Injuries in the Course of Employment
uniting the actor to them.
4. Product Liability
5. Inference with Contractual Relations
6. Liability of Local Government Units Underlying Basis of Vicarious Liability of
D. JOINT AND SOLIDARY LIABILITY parents: Tamargo v. CA (1992): The basis of
E. CIVIL LIABILITY ARISING FROM CRIME this vicarious, although primary, liability is, as in
F. PRESCRIPTION Article 2176, fault or negligence, which is
presumed from that which accompanied the
A. The Tortfeasor causative act or omission. The presumption is
merely prima facie and may therefore be
Worcester vs. Ocampo (1958): (Refers to) All rebutted
the persons who command, instigate, promote,
encourage, advise, countenance, cooperate in, 2 Requisites According to Chironi:
aid or abet the commission of a tort, or who 1. The duty of supervision
approve of it after it is done, if done for their 2. The possibility of making such
benefit. supervision effective
Each joint tortfeasor is not only
individually liable for the tort in which he Respondeat superior
participates, but is also jointly liable with his It means nothing more than “look to the man
tortfeasors. higher up,” (usually the employer or person 399
under whose control the tortfeasor was under)
TORTS & DAMAGES

which is a manifestation of vicarious liability.
B. Vicarious Liability Bonus paterfamilias.
The relationship of pater familias (“good father of
Art. 2180, par 1. The obligation imposed by Article the family”) is the basis of civil law liability,
2176 is demandable not only for one’s own acts or particularly for an employer. It is a defense for all
omissions, but also for those of persons for whom one instances of vicarious liability based on Art.
is responsible. 2180. (Most frequently asked topic in Torts,
1975-2003)
Art. 2180, par 8. The responsibility treated of in this
article shall cease when the persons herein
mentioned prove that they observed all the diligence Liability of Author
of a good father of a family to prevent damage. Article does not exempt the author who are the
only ones liable if there are no persons who will
Art. 2181. Whoever pays for the damage caused by be held liable if there are no person having
his dependents or employees may recover from the authority over him or if due diligence of the
latter what he has paid or delivered in satisfaction of persons having authority over him. He may be
the claim. sued alone or with the person responsible for
him.
NOTE:
 Common defense: exercise of the diligence Strict Interpretation
of a good father of a family. The liability under this article cannot be
 Exception: common carriers—extraordinary extended to those persons not enumerated
diligence. because this is an extraordinary responsibility
created by way of exception to the rule that no

lOMoARcPSD|3291925
person can be liable for the acts or omissions of parents had exercised all the diligence of a good
another. father of a family to prevent the damage
1. Parents (NOTE: Art 2180, par 2 of the Civil Code which

holds the father liable for damages has been
Based on the presumption of failure on their part modified by the Family Code and PD 603. Art.
to properly exercise their parental authority for 211 of the FC declares joint parental authority of
the good education of their children and exert the mother and father over common children.
adequate vigilance over them. The parent(s) exercising parental authority are
liable for the torts of their children. Despite the
Imposed only when children are living with the lowering of the age of majority from 21 to 18,
parents parents are still liable for the torts committed by
their children below 21 years of age. Art 236, par
If there is just cause for separation, the 3 FC, as amended by RA 6809)
responsibility ceases.
Art. 2180, par 2. The father and, in case of his death
The responsibility of the father and mother is not or incapacity, the mother, are responsible for the
damages caused by the minor children who live in
simultaneous but alternate.
their company.
When Responsibility Ceases Art 58 (PD 603). Torts – Parents and guardians are
When parent is not in the position to exercise responsible for the damage caused by the child under
authority and supervision over the child their parental authority in accordance with the civil
code.
Illegitimate Children
Responsibility is with the mother whom the law Art 221 (FC). Parents and other persons exercising
vests parental authority parental authority shall be civilly liable for the injuries
and damages caused by the acts or omissions of their
unemancipated children living in their company and
Exconde vs. Capuno (1957): The civil liability under their parental authority subject to the
which the law imposes upon the father and, in appropriate defenses provided by law.
case of his death or incapacity, the mother, for
any damages that may be caused by the minor Art. 101 (RPC). Rules regarding civil liability in certain
children who live with them, is obvious. This is a cases. — The exemption from criminal liability
necessary consequence of the parental authority established in subdivisions 1, 2, 3, 5 and 6 of Article 400
they exercise over them which imposes upon 12 and in subdivision 4 of Article 11 of this Code does
TORTS & DAMAGES

the parents the 'duty of supporting them, not include exemption from civil liability, which shall
be enforced subject to the following rules:
keeping them in their company, educating them
First. In cases of subdivisions 1, 2, and 3 of
in proportion to their means', while, on the other Article 12, the civil liability for acts committed by an
hand, gives them the 'right to correct and punish imbecile or insane person, and by a person under
them in moderation.' nine years of age, or by one over nine but under
fifteen years of age, who has acted without
Tamargo vs. CA (1992): The basis of parental discernment, shall devolve upon those having such
authority for the torts of a minor child is the person under their legal authority or control, unless it
relationship existing between the parents and appears that there was no fault or negligence on their
the minor child living with them and over whom, part.
Should there be no person having such insane,
the law presumes, the parents exercise
imbecile or minor under his authority, legal
supervision and control. To hold that parental guardianship or control, or if such person be
authority had been retroactively lodged in the insolvent, said insane, imbecile, or minor shall
adoptive parents so as to burden them with the respond with their own property, excepting property
liability for a tortious act that they could not have exempt from execution, in accordance with the civil
foreseen and prevented would be unfair. law.
Parental liability is, in other words, Libi vs. IAC (1992): The parent's liability under
anchored upon parental authority coupled with 2180 should be primary and not subsidiary. If it
presumed parental dereliction in the discharge were subsidiary, the parents cannot invoke due
of the duties accompanying such authority. The diligence as a defense. Such interpretation
parental dereliction is, of course, only presumed reconciles 2180 with 2194 which calls for
and the presumption can be overturned under solidary liability of joint tortfeasors.
Article 2180 of the Civil Code by proof that the

lOMoARcPSD|3291925
Guardians REQUISITES FOR LIABILITY TO ATTACH:
Art. 2180, par 3. Guardians are liable for damages Parents - (mnemonic: 21 + Authority &
caused by the minors or incapacitated persons who Company):
are under their authority and live in their company. 1. The child is below 21 years old
2. The child is under the parental authority
Art. 216. In default of parents or a judicially appointed of the parents
guardian, the following person shall exercise
3. The child is living in the company of the
substitute parental authority over the child in the order
indicated: parents
 The surviving grandparent, as provided in Art.
214; Guardians - (mnemonic: Authority & Company)
 The oldest brother or sister, over twenty-one 1. The ward if minor is below 21 years
years of age, unless unfit or disqualified; and old. If incapacitated, the guardian is
 The child's actual custodian, over twenty-one liable for the acts of the ward regardless
years of age, unless unfit or disqualified. of the latter’s age.
Whenever the appointment or a judicial guardian over 2. The child is under the parental
the property of the child becomes necessary, the authority of the parents.
same order of preference shall be observed. 3. The tortfeasor is under his authority.
Art. 217. In case of foundlings, abandoned neglected
4. The tortfeasor is living in his
or abused children and other children similarly company.
situated, parental authority shall be entrusted in
summary judicial proceedings to heads of children's Is a minor or insane tortfeasor with NO parent or
homes, orphanages and similar institutions duly guardian liable?
accredited by the proper government agency. Yes. He shall be answerable with his own
property in an action against him where a
guardian ad litem shall be appointed. (Art. 2182)
2. Teachers and Heads of Institutions

Who are liable For whose Acts Requisite for Liability to Attach
Teacher- in- charge (the one Pupils and students pupils and students remain in
designated to exercise supervision teacher’s custody regardless of the
over students) age
Head of establishment of arts and Apprentices custody regardless of the age
401
trades
TORTS & DAMAGES

School (generally not held liable)  If the tortfeasor is a student of must be below 18
the school (Art 218 FC)
 If the tortfeasor is a teacher/
employee of the school, it is
liable as employer under 2180
(5) of CC (St. Francis vs. CA)
 If the tortfeasor is a stranger, it
is liable for breach of contract.
(PSBA vs. CA)
Palisoc vs, Brillantes (1971): “Custody” means now be deemed to have been set aside by this
the protective and supervisory custody that the decision
school and its heads and teachers exercise over
the pupils and students for as long as they are at
Amadora vs. CA (1988): Art. 2180 should apply
attendance in the school and includes recess
to ALL schools, academic as well as non-
time.
academic. Where the school is academic rather
than technical or vocational in nature,
There is nothing in the law that
responsibility for the tort committed by the
requires that for such liability to attach, the pupil
student will attach to the teacher in charge of
or student who commits the tortious act must
such student. In establishments of arts and
live and board in the school, as erroneously held
trades, it is the head thereof, and only he, who
by the lower court, and in the dicta in Mercado
shall be held liable as an exception to the
(as well as in Exconde) on which it relied, must
general rule.

lOMoARcPSD|3291925
Teachers in general shall be liable for acts of 3 Essential Requisites:

their students except where the school is
technical in nature, in which case it is the head 1. That the employee was chosen by the
thereof who shall be answerable. employer, personally or through another
2. That the services are to be rendered in
Salvosa v. IAC (1988): A student not “at accordance with orders which the employer
attendance in the school” cannot be in “recess” has the authority to give at all times
thereat. A “recess,” as the concept is embraced 3. That the illicit act of the employees was on
in the phrase “at attendance in the school,” the occasion or by reason of the entrusted to
contemplates a situation of temporary him
adjournment of school activities where the
student still remains within call of his mentor and Presumption of negligence
is not permitted to leave the school premises, or The presentation of proof of the negligence of its
the area within which the school activity is employee gives rise to the presumption that the
conducted. Recess by its nature does not defendant employer did not exercise the
include dismissal. diligence of a good father of a family in the
selection and supervision of its employees
Mere fact of being enrolled or being in the
premises of a school without more does not Nature of liability of the employer
constitute “attending school” or being in the The employer is primarily and solidarily liable for
“protective and supervisory custody” of the the tortious act of the employee. The employer
school, as concemplated by law. may recover from the employee, the amount it
will have to pay the offended party’s claim.
Ylarde vs. Aquino (1988): The principal of the
school cannot be held liable for the reason that Such recovery, however, is NOT for the entire
the school he leads is an academic school and amount. To allow such would be as if to say that
not a school of arts and trades. (Teachers’ the employer was not negligent.
liability has been asked four times from 1975-
1990, and four times from 2004- 2007) Necessity of presumption of negligence
It is difficult for any person injured to prove the
employer’s negligence as they would be proving
3. Owners and Managers of
negative facts. (Here comes in the fabrication of
Establishments documents, etc.)
Who are liable For whose Requisites for 402
acts liability to attach Independent contractor
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Owners and Their The damage was Master not generally liable for the fault or
managers of an employees caused in the negligence of an independent contractor
establish-ment service of the performing some work for him
or enterprise branches in which
the employees
are employed
A contractor may at the same time be so
-OR- situated that he would be regarded as an
The damage was employee for whose negligence the employer is
caused on the liable
occasion of their
functions Cuison vs. Norton & Harrison (1930): Basis for
civil liability of employers is pater familias
Philippine Rabbit vs. Philam Forwarders (1975):
“Owners and managers of an establishment or The existence of the employer-employee
enterprise” does not include a manager of a relationship must first be established before an
corporation. (Spanish term “directores” connotes employer may be made vicariously liable under
“employer.” But manager of a corporation is not Art. 2180, CC.
an employer, merely an employee of the owner.)
Philtranco vs. CA (1997): The liability of the
4. Employers registered owner and driver is solidary, primary
and direct.
Art 2180, par 5. Employers shall be liable for the
damages caused by their employees and household Filamer vs. IAC (1992): “Within the scope of
helpers acting within the scope of their assigned
tasks, even though the former are not engaged in any
their assigned task” in Art. 2180 includes any act
business or industry. done by an employee in furtherance of the

lOMoARcPSD|3291925
interests, or for the account of the employer at b. Art. 2189 provides for state liability for
the time of the infliction of the injury or damage. damages caused by defective condition of
public works.
De Leon Brokerage v. CA (1962): Employer c. Local Government Code provides for the
need not be riding in the vehicle to become liability of local government units for
liable for a driver’s negligence. Article 2184 wrongful exercise of its proprietary (as
mandating that the owner is only held solidarily opposed to its governmental) functions. The
liable if he is riding in the vehicle at the time of latter is the same as that of a private
the mishap, only applies to those owners of corporation or individual. (Mendoza vs. De
vehicles, who do not come within the ambit of Leon, 1916)
Article 2180 (as owners of an establishment or
enterprise.) The state agencies or subdivisions, in the
pursuance of proprietary functions, are akin to
5. State any other private corporation. They may be sued
for:
Sec 3, Art XVI, 1987 Constitution. The State may not  torts committed by them (Art. 2176) or
be sued without its consent.
 torts committed by their employees (art
Art 2180, par 6. The State is responsible in like
manner when it acts through a special agent; but not 2180).
when the damage has been caused by the official to
whom the task done properly pertains, in which case As long as it is performing proprietary functions,
what is provided in Article 2176 shall be applicable. it can be held liable for the acts of its employees,
both regular and special.
Merrit vs. Government of the Philippine Islands
(1960): A special agent is one who receives a Quick Glance
definite and fixed order or commission, foreign o As a governmental entity: Liable only for
to the exercise of the duties of his office if he is a acts of its special agents
special official. o As a corporate entity: May be held liable
just as any other employer for the acts of its
This concept does not apply to any executive employees
agent who is an employee of the active o Special Agent: One duly empowered by a
administration and who on his own responsibility definite order or commission to perform
performs the functions which are inherent in and some act or one charged with some definite
naturally pertain to his office. purpose which give rise to the claim; if he is
a government employee or official, he must 403
The responsibility of the state is limited to that be acting under a definite and fixed order or
TORTS & DAMAGES

which it contracts through a special agent, duly commission, foreign to the exercise of the
empowered by a definite order or commission to duties of his office
perform some act or charged with some definite
purpose which gives rise to the claim and not
where the claim is based on acts or omissions C. Specific Liability
imputable to a public official charged with some
administrative or technical office who can be
held to the proper responsibility in the manner
1. Possessor of Animals
laid down by the law of civil responsibility. Art. 2183 (CC). The possessor of an animal or
whoever may make use of the same is responsible for
General Rule: The State cannot be sued. the damage which it may cause, although it may
escape or be lost. This responsibility shall cease only
Exceptions: in case the damage should come from force majeure
a. There is express legislative consent or from the fault of the person who has suffered
damage.
b. The State filed the case
Applicability of provision
Instances where the state gives its consent to be Since the law makes no distinction, this is
sued: applicable to both wild (in case the wild animal is
a. Art. 2180 (6) is an example of an express kept) and domestic animals. It is enough that
legislative consent. Here, the State assumes defendant is the possessor, owner, or user of
a limited liability for the acts of its special the animal at the time it caused the damage
agents. complained of, to hold him liable therefor.

lOMoARcPSD|3291925
Basis 3. DEATH/INJURIES IN THE COURSE

Negligence is immaterial. It is based on natural OF EMPLOYMENT
equity and on the principle of social interest that
he who possesses animals for his utility, Art 1711: Owners of enterprises and other employers
pleasure, or service, must answer for any are obliged to pay compensation for the death or
damage which such animal may cause. injuries ti their laborers, workmen, mechanics or other
employees even though the event may be purely
Possible defenses against this liability: accidental or entirely due to a fortuitous cause, if the
1. Force Majeure death or personal injury arose out of and in the course
of employment. The employer is also liable for
2. Fault of person suffering damage
compensation if the employee contracts any illness or
3. Act of third persons disease caused by such employment or as a result of
the nature of the employment. If the mishap was due
to the employee's own notorious negligence, or
Vestil vs. IAC (1989): Possession of the animal, voluntary act, or drunkenness, the employer shall not
not ownership, is determinative of liability under be liable for compensation. When the employee's lack
Art. 2183. The obligation imposed by said article of due care contributed to his death or injury, the
is not based on the negligence or on the compensation shall be equitable reduced.
presumed lack of vigilance of the possessor or Art. 1712: If the death or injury is due to the
negligence of a fellow-worker, the latter and the
user of the animal causing damage. It is based
employer shall be solidarily liable for compensation. If
on natural equity and on the principle of social a fellow worker's intentional or malicious act is the
interest that he who possesses animals for his only cause of the death or injury, the employer shall
utility, pleasure, or service, must answer for any not be answerable, unless it should be shown that the
damage which such animal may cause. latter did not exercise due diligence in the selection or
supervision of the plaintiff's fellow worker.
Scope of provision
Contention that the defendant could not be Afable vs Singer (1933): The injury must be
expected to exercise remote control of the received while engaged in the furtherance of the
animal is not acceptable. In fact, Art. 2183 holds affairs of the employer.
the possessor liable even if the animal should
“escape or be lost” and so be removed from his 4. PRODUCT LIABILITY
control.
Art 2187 (CC). Manufacturers and processors of
It is likewise immaterial that the animal was foodstuffs, drinks, toilet articles and similar goods
tame and was merely provoked by the victim. shall be liable for death or injuries caused by any 404
The law does not speak only of vicious animals noxious or harmful substances used, although no
TORTS & DAMAGES

but covers even tame ones as long as they contractual relation exists between them and the
consumers.
cause injury.
Consumer Act Provisions
Art. 4. n) "Consumer" means a natural person who is
2. THINGS THROWN OR FALLING a purchaser, lessee, recipient or prospective
FROM A BUILDING purchaser, lessor or recipient of consumer products,
services or credit.
Art 2193 (CC). The head of a family that lives in a (as) "Manufacturer" means any person who
building or a part thereof, is responsible for damages manufactures, assembles or processes consumer
caused by things thrown or falling from the same. products, except that if the goods are manufactured,
assembled or processed for another person who
Purpose of the law attaches his own brand name to the consumer
To relieve the injured party of the products, the latter shall be deemed the
difficulty of determining and proving who threw manufacturer. In case of imported products, the
the thing or what caused it to fall, or that either manufacturer's representatives or, in his absence, the
was due to the fault or negligence of any importer, shall be deemed the manufacturer.
particular individual.
Art. 97. Liability for the Defective Products. - Any
Filipino or foreign manufacturer, producer, and any
Dingcong vs. Kanaan (1941): Lessee is importer, shall be liable for redress, independently of
considered as the head of the family. It is fault, for damages caused to consumers by defects
enough that he lives in and has control over it. resulting from design, manufacture, construction,
assembly and erection, formulas and handling and
making up, presentation or packing of their products,
as well as for the insufficient or inadequate
information on the use and hazards thereof.

lOMoARcPSD|3291925
Coca-Cola v. CA (1993): While it may be true

A product is defective when it does not offer the that the pre-existing contract between the
safety rightfully expected of it, taking relevant parties may, as a general rule, bar the
circumstances into consideration, including but not applicability of the law on quasi-delict, the
limited to:
liability may itself be deemed to arise from
a. presentation of product
b. use and hazards reasonably expected of it; quasi-delict if the act which breaks the contract
c. the time it was put into circulation. is also a quasi-delict.
A product is not considered defective because 5. INTERFERENCE WITH

another better quality product has been placed in the CONTRACTUAL RELATIONS
market. The manufacturer, builder, producer or
importer shall not be held liable when it evidences:
Art 1314: Any third person who induces another to
a. that it did not place the product on the market;
violate his contract shall be liable for damages to the
b. that although it did place the product on the
other contracting party.
market such product has no defect;
c. that the consumer or a third party is solely at Gilchrist vs. Cuddy (1915): Everyone has a right
fault. to enjoy the fruits of his enterprise. He has no
Art. 99. Liability for Defective Services. - The service right to be protected from competition, but he
supplier is liable for redress, independently of fault, for
has the right to be free from malicious and
damages caused to consumers by defects relating to
the rendering of the services, as well as for wanton interference. If the injury is a result of
insufficient or inadequate information on the fruition competition, it is a case of damnum absque
and hazards thereof. injuria, unless superior right by contract is
interfered with.
The service is defective when it does not provide the
safety the consumer may rightfully expect of it, taking So Ping Bun vs. CA (1999): Elements of
the relevant circumstances into consideration, Interference are:
including but not limited to:  Existence of a valid contract;
 the manner in which it is provided;  Knowledge of the third person of the
 the result of hazards which may reasonably be existence of such contract;
expected of it;  Interference without legal justification or
 the time when it was provided. excuse.
A service is not considered defective because of the Lagon vs. CA (2005): If there in no bad faith,
use or introduction of new techniques. there is no tortious interference; Actual
The supplier of the services shall not be held liable knowledge of the contract is not required so long
when it is proven: 405
as there are facts leading one to investigate.
TORTS & DAMAGES

that there is no defect in the service rendered;
that the consumer or third party is solely at 6. LIABILITY OF LOCAL GOVERNMENT
fault. UNITS
Art. 106. Prohibition in Contractual Stipulation. - The Art 2189: Provinces, cities and municipalities shall be
stipulation in a contract of a clause preventing, liable for damages for the death of, or injuries suffered
exonerating or reducing the obligation to indemnify for by, any person by reason of the defective condition of
damages effected, as provided for in this and in the roads, streets, bridges, public buildings, and other
preceding Articles, is hereby prohibited, if there is public works under their control or supervision.
more than one person responsible for the cause of Guilatco vs Dagupan: It is not necessary that the
the damage, they shall be jointly liable for the redress
established in the pertinent provisions of this Act.
defective road belongs to the LGU, only that the
However, if the damage is caused by a component or LGU exercises control and supervision over it.
part incorporated in the product or service, its
manufacturer, builder or importer and the person who
incorporated the component or part are jointly liable.

lOMoARcPSD|3291925
QUICK GLANCE
Person Strictly Liable For What Defenses or Exceptions
Possessor of an animal or whoever For the damage it may cause Force majeure
makes use of them even if the Fault of the person who suffered
animal is lost or escaped damage
Owner of Motor Vehicle Motor vehicle mishaps Solidary liability only if the owner was
in the vehicle and if he could have
prevented it thru due diligence
If not in vehicleà 2180
Manufacturers and Processors of death and injuries caused by any Absence on contractual relation NOT
foodstuffs, drinks, toilet articles and noxious or harmful substances used a defense
similar goods (FDTAS)
Defendant in possession of death or injury results from such possession or use thereof is
dangerous weapons/ substances possession indispensable in his occupation or
such as firearms and poison business
Provinces, Cities and Municipalities the death or injuries suffered by any Public works must be under their
person by reason of the defective supervisions
condition of roads, streets, bridges,
public buildings, and other public
works
Proprietor of building/ structure  total or partial collapse of Responsibility for collapse should be
building or structure if due to due to the lack of necessary repairs
lack of necessary repairs
 explosion of machinery which
has not been taken cared of
with due diligence, and the
inflammation of explosive
substances which have not
been kept in a safe and
adequate place
 by excessive smoke, which
may be harmful to persons or
property
 by falling of trees situated at or
near highways or lanes, if not
caused by force majeure 406
 by emanations from tubes,
TORTS & DAMAGES

canals, sewers or deposits of
infectious matter, constructed
without precautions suitable to
the place
Engineer, Architect or Contractor if damage of building or structure is
caused by defect in construction
which happens within 15 years from
construction; action must be
brought within 10 years from
collapse
Head of the Family that lives in a Liable for damages caused by

building or any part thereof things thrown or falling from the
same

lOMoARcPSD|3291925
BAR QUESTION: MOTOR VEHICLE MISHAPS E. Civil Liability Arising From Crime
A van owned by Orlando and driven by Diego,
while negotiating a downhill slope of a city road, Art. 2177. Responsibility for fault or negligence under
suddenly gained speed, obviously beyond the the preceding article is entirely separate and distinct
authorized limit in the area, and bumped a car in from the civil liability arising from negligence under the
front of it, causing severe damage to the car and Penal Code. But the plaintiff cannot recover damages
serious injuries to its passengers. Orlando was twice for the same act or omission of the defendant.
not in the car at the time of the incident. The car (n)
owner and the injured passengers sued Orlando
and Diego for damages cause by Diego’s 1. Distinguished from Independent Civil
negligence. In their defense, Diego claims that Actions and Liability for QD
the downhill slope caused the van to gain speed (Arts. 31-34, 2176)
and that, as he stepped on the brakes to check
the acceleration, the brakes locked, causing the Rule 111, Rules of Court
van to go even faster and eventually to hit the Sec. 3. When civil action may proceed independently.
car in front of it. Orlando and Diego contend that – In the cases provided in Articles 32, 33, 34 and
the sudden malfunction of the van’s brake 2176 of the Civil Code of the Philippines, the
system is a fortuitous event and that, therefore, independent civil action may be brought by the
offended party. It shall proceed independently of the
they are exempt from any liability.
criminal action and shall require only a preponderance
(a) Is this contention tenable? Explain. of evidence. In no case, however, may the offended
(b) Explain the concept of vicarious party recover damages twice for the same act or
liability in quasi-delicts. omission charged in the criminal action.
(c) Does the presence of the owner
inside the vehicle causing damage Sec. 5. Judgment in civil action not a bar. – A final
to a third party affect his liability judgment rendered in a civil action absolving the
for his driver’s negligence? Explain. defendant from civil liability is not a bar to a criminal
action against the defendant for the same act or
omission subject of the civil action.
Suggested Answer:
(a) No. Mechanical defects of a motor vehicle 2. Effect of Acquittal

do not constitute fortuitous event, since the
presence of such defects would have been Art. 29. When the accused in a criminal prosecution is
readily detected by diligence maintenance acquitted on the ground that his guilt has not been
proved beyond reasonable doubt, a civil action for
check. The failure to maintain the vehicle in
safe running condition constitutes
damages for the same act or omission may be 407
instituted. Such action requires only a preponderance
negligence.
TORTS & DAMAGES

of evidence. Upon motion of the defendant, the court
(b) The doctrine of vicarious liability is that may require the plaintiff to file a bond to answer for
which renders a person liable for the damages in case the complaint should be found to be
negligence of others for whose acts or malicious.
omission the law makes him responsible on
the theory that they are under his control If in a criminal case the judgment of acquittal is based
and supervision. upon reasonable doubt, the court shall so declare. In
the absence of any declaration to that effect, it may be
(c) In motor vehicle mishaps, the owner is made
inferred from the text of the decision whether or not
solidarily liable with his driver if he (the the acquittal is due to that ground.
owner) was in the vehicle and could have,
by the use of due diligence, prevented the
3. Prejudicial Questions
mishap (Caedo vs. Yu Khe Thai, 26 SCRA
410 [1968]). However, this question has no
Art. 36. Pre-judicial questions which must be decided
factual basis in the problem given, in view of before any criminal prosecution may be instituted or
the express given fact that “Orlando was not may proceed, shall be governed by rules of court
in the car at the time of the incident.” which the Supreme Court shall promulgate and which
shall not be in conflict with the provisions of this Code.
D. Joint and Solidary Liability
Rule 111, Rules of Court
Sec. 6. Suspension by reason of prejudicial question.
Art. 2194. The responsibility of two or more persons – A petition for suspension of the criminal action
who are liable for quasi-delict is solidary. (n) based upon the pendency of a prejudicial question in
a civil action may be filed in the office of the
prosecutor or the court conducting the preliminary
investigation. When the criminal action has been filed

lOMoARcPSD|3291925
in court for trial, the petition to suspend shall be filed

in the same criminal action at any time before the
prosecution rests.
Sec. 7. Elements of prejudicial question. – The

elements of a prejudicial questions are: (a) the
previously instituted civil action involves an issue
similar or intimately related to the issue raised in the
subsequent criminal action, and (b) the resolution of
such issue determines whether or not the criminal
action may proceed.
Zapanta vs. Montesa (1962): A civil case for the

annulment of marriage is an example of a
prejudicial question for a criminal charge of
bigamy.
F. Prescription
Art. 1146. The following actions must be instituted

within four years:
(1) Upon an injury to the rights of the plaintiff;

(2) Upon a quasi-delict;
408
TORTS & DAMAGES

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VI. TORTIOUS INTERFERENCE with CONTRACT

Contract
Art. 1314. Any third person who induces another to

violate his contract shall be liable for damages to the
other contracting party. (n)
Elements:
a) existence of a valid contract
b) knowledge of the third person of the
existence of the contract
c) interference of the third person WITHOUT
legal justification or excuse
(So Ping Bun vs. CA, 1999)
So Ping Bun vs. CA (1999): Bad faith/Malice is

required to make the defendant liable for
DAMAGES in cases of tortuous interference.
Gilchrist vs. Cuddy (1915): Injunction is the

proper remedy to prevent wrongful interference
with contracts by strangers, where other legal
remedies are insufficient and the resulting injury
is irreparable.
Lagon vs. CA (2005): Proper business interest

provides a legal justification to negate the
presence of the third element.
409
TORTS & DAMAGES

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter VII. TORTS with INDEPENDENT CIVIL ACTION
In any of the cases referred to in this article, whether

Chapter VII. Torts with Independent Civil or not the defendant’s act or omission constitutes a
Action criminal offense, the aggrieved party has a right to
commence an entirely separate and distinct civil
A. VIOLATION OF CIVIL AND POLITICAL RIGHTS action for damages, and for other relief. Such civil
B. DEFAMATION, FRAUD, PHYSICAL INJURIES action shall proceed independently of any criminal
1. DEFAMATION prosecution (if the latter be instituted) and may be
2. FRAUD proved by a preponderance of evidence. The
3. PHYSICAL INJURIES indemnity shall include moral damages. Exemplary
damages may also be adjudicated. The responsibility
herein set forth is not demandable from a judge
A. Violation of Civil and Political Rights unless his act or omission constitutes a violation of
the Penal code or any other penal statute.
Art 32. Any public officer or employee, or any private
individual, who directly or indirectly obstructs, defeats, Cojuangco vs. CA (1999): The purpose of article
violates or in any manner impedes or impairs any of 32 is to remind us that basic rights are
the following rights and liberties of another person immutable. Thus, absence of bad faith or malice
shall be liable to the latter for damages: is not a defense.
1. Freedom of religion
2. Freedom of speech Vinzons- Chato vs. Fortune (2007): A public
3. Freedom to write for the press or to maintain
officer may be sued under Art. 32 even if his
a periodical publication
4. Freedom from arbitrary or illegal detention acts were not so tainted with malice, as long as
5. Freedom of suffrage there is a violation of a constitutional right. Its
6. The right against deprivation of property precise object is to put an end to official abuse,
without due process of law done on the plea of good faith.
7. The right to just compensation when property
is taken for public use
8. The right to equal protection of the laws
9. The right to be secure in one’s person,
B. Defamation, Fraud, Physical Injuries
house, papers and effects against
unreasonable searches and seizures Art. 33: In case of defamation, fraud, and physical
10. The liberty of abode and of changing the injuries, a civil action for damages, entirely separate
same and distinct from the criminal action, may be brought
11. The right to privacy of communication and by the injured party. Such civil action shall proceed
correspondence independently of the criminal prosecution, and shall
12. The right to become a member of require only a preponderance of evidence.
associations and societies for purposes not 410
contrary to law
TORTS & DAMAGES

13. The right to take part in a peaceable
assembly and petition the government for Marcia vs. CA (1983): Reckless imprudence is
redress of grievances not one of the three crimes mentioned in Art. 33;
14. The right to be free from involuntary no independent civil action may be filed because
servitude in any form
what is punished is reckless imprudence is the
15. The right of the accused against excessive
bail negligent or careless act, not the result thereof.
16. The right of the accused to be heard by
himself and counsel, to be informed of the (However, in the contrary ruling in People vs.
nature and the cause of the accusation Faller, court discussed reckless imprudence
against him, to have a speedy and public under art. 33 not as a crime, but as a way of
trial, to meet the witnesses face to face, to committing it, such that it punishes BOTH the act
have compulsory process to secure the and the resulting damage, wherein an
attendance of witnesses on is behalf; independent action could be allowed.)
17. Freedom form being compelled to be a
witness against one’s self, or from being
forced to confess his guilt, or from being 1. Defamation
induced by a promise of immunity or reward
to make such confession, except when the Cojuangco vs. CA (1991): Separate civil action
person confessing becomes a State witness. may be consolidated with the criminal action.
18. Freedom from excessive fines, or cruel and
unusual punishment, unless the same is MVRS vs. Islamic Da'wah (2003): Defamation is
imposed or inflicted in accordance with a that which tends to injure reputation or diminish
statute which has not been judicially
esteem, respect, good will, or confidence of the
declared unconstitutional;
19. Freedom of access to the courts plaintiff, or excite derogatory feelings about him.

lOMoARcPSD|3291925
It must be personal. (What is definitive is not the

level of hurt, but the effect of the statement on Neplum vs. Orbeso (2002): Deemed instituted in
the reputation or standing of the person.) every criminal prosecution is the civil liability
arising from the crime or delict per se (civil
2. Fraud liability ex delicto), but not those liabilities from
quasi-delicts, contracts or quasi-contracts.
Salta vs. De Veyra (1982): Independent civil
actions are permitted to be filed separately Sps. Benito Lo Bun Tiong etc. vs. Vicente
regardless of the result of the criminal action. Balboa (2008): The criminal action for violation
of Batas Pambansa Blg. 22 shall be deemed to
Samson vs. Daway (2004): Unfair competition include the corresponding civil action and that no
under the Intellectual Property Code and fraud reservation to file such civil action separately
under Art. 33 are independent actions. Art. 33 shall be allowed. But a separate proceeding for
does not operate as a prejudicial question to the recovery of civil liability in cases of violations
justify the suspension of the criminal cases at of B.P. No. 22 is allowed when the civil case is
bar. filed ahead of the criminal case.
3. Physical Injuries For independent civil actions:

 Physical injuries unqualifiedly refer to an
Capuno vs Pepsi (1965): The institution of independent cause of action, whether
criminal action cannot have an effect of caused by a deliberate or negligent act.
interrupting the running of the period for the filing  Jurisprudence is mixed, but Sangco
of independent civil actions. discusses that the reservation
requirement should only be for civil
Dulay vs. CA (1995): Homicide is included in Art. actions based on crime. What will
33, where a separate action is availing. prevent double recovery is the election
of any of the civil actions, being an
NOTE: implicit waiver of the others.
 Madeja vs. Caro (1983): Article 33 is ex
Civil liability arising from crime
delicto, but it is an exception to the
Art. 2177. Responsibility for fault or negligence is reservation requirement, as it allows the
entirely separate and distinct from the civil liability citizen to enforce his right to damages
arising from negligence under the RPC. But double independent of the prosecutor. “Physical
recovery is not allowed. injuries, fraud and defamation” are used
in their ordinary, generic sense (and not
411
Art. 100 of the Revised Penal Code provides
TORTS & DAMAGES

within RPC context).
that every person who is criminally liable for a
felony is also civilly liable. This general rule BAR QUESTION
however presupposes that the felony had As a result of a collision between a taxicab owned by
resulted in damage or injury to another’s person A and another taxicab owned by B, X, a passenger of
or property. To create an obligation or give rise the first taxicab, was seriously injured. X later filed a
to civil liability, an act or omission, whether criminal action against both drivers.
intentional or negligent, must have caused
(a) Is it necessary for X to reserve his right to institute
damage or injury to another, otherwise only
a civil action for damages against both taxicab owners
criminal liability will attach. Though the general before he can file a civil action for damages against
rule provides that one who is not criminally liable them? Why?
cannot be civilly liable, RPC Arts. 101-103 (b) May both taxicab owners raise the defense of due
provide exceptions as they provide for vicarious diligence in the selection and supervision of their
liability for certain types of offenders and drivers to be absolved from liability for damages to X?
subsidiary liability in case of default of the Reason.
offender. Suggested Answer:
(a) It depends. If the separate civil action is to
recover damages arising from the criminal act,
The civil liability established by RPC Arts. 100-
reservation is necessary. If the civil action
103 include: against the taxicab owners is based on culpa
a. Restitution; contractual or on quasi-delict, there is no need for
b. Reparation of the damage caused; reservation.
and
c. Indemnification for consequential (b) It depends. If the civil action is based on quasi-
damages. delict, the taxicab owners may raise the defense

lOMoARcPSD|3291925
of diligence of a good father of a family in the

selection and supervision of the driver; if the
action against them is based on culpa contractual
or civil liability arising from a crime, they cannot
raise the defense.
Alternative Answer:
No such reservation is necessary. Under Section 1
Rule 111 of the 2000 Rules on Criminal Procedure,
what is “deemed instituted” with the criminal action is
only the action to recover civil liability arising from the
crime or ex delicto. All the other civil actions under
Articles 32, 33, 34, 2176 of the New Civil Code are no
longer “deemed instituted,” and may be filed
separately and prosecuted independently even
without any reservation in the criminal action (Section
3, Rule 111, 2000 Rules on Criminal Procedure). The
failure to make a reservation the criminal action is not
a waiver of the right to file a separate and
independent civil action based on these articles of the
New Civil Code (Casupanan vs. Laroya, G.R. No.
145391, August 26, 2002)
412
TORTS & DAMAGES

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CIVIL LAW REVIEWER Chapter VIII. HUMAN RELATIONS PROVISIONS
Chapter VIII. Human Relations B. Acts Contra Bonus Mores

Provisions Art. 21. Any person who willfully causes loss or injury
to another in a manner that is contrary to morals,
A. ABUSE OF RIGHTS good customs or public policy shall compensate the
B. ACTS CONTRA BONUS MORES latter for the damage.
1. ELEMENTS
2. EXAMPLES 1.Elements
i. BREACH OF PROMISE TO MARRY,
SEDUCTION AND SEXUAL ASSAULT
Albenson vs. CA ((1993): This provision has
ii. MALICIOUS PROSECUTION
iii. PUBLIC HUMILIATION broadened the scope of civil wrongs; it is more
iv. UNJUSTIFIED DISMISSAL supple and adaptable than tort. Elements:
OTHER TORTS 1. legal action;
C. DERELICTION OF DUTY 2. contrary to morals, public policy, good
D. UNFAIR COMPETITION customs;
E. VIOLATION OF HUMAN DIGNITY 3. intent to injure.
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act with
2. Examples
justice, give everyone his due, and observe honesty
and good faith. i. Breach of Promise to Marry,
Seduction and Sexual Assault
A. Abuse of Rights Wassmer vs. Velez (1964): Mere breach

of promise to marry is not an actionable
Velayo vs. Shell (1959): It may be said that Art wrong. But to formally set a wedding
19 only contains a mere declaration of principles and go through all the above-described
and while such statement may be essentially preparation and publicity, only to walk
correct, yet we find that such declaration is out of it when the matrimony is about to
implemented by Art 21. There is no belief of be solemnized, is quite different. This is
more baneful consequences upon the social palpably and unjustifiably contrary to
order than that a person may with impunity good customs for which defendant must
cause damage to his fellowmen so long as he be held answerable in damages in
does not break the law though he may be accordance with Article 21.
defying the most sacred postulates of morality.
Baksh vs. CA (1993): Where a man's 413
Globe vs. CA (1989): A right, though by itself promise to marry is in fact the proximate
TORTS & DAMAGES

legal because recognized or granted by law as cause of the acceptance of his love by a
such, may nevertheless become the source of woman and his representation to fulfill
some illegality. When a right is exercised in a that promise thereafter becomes the
manner which does not conform with the norms proximate cause of the giving of herself
enshrined in Article 19 and results in damage to unto him in a sexual congress, proof that
another, a legal wrong is thereby committed for he had, in reality, no intention of
which the wrongdoer must be held responsible. marrying her and that the promise was
only a subtle scheme or deceptive
Albenson vs. CA (1993): The elements of an
device to entice or inveigle her to accept
abuse of right under Article 19 are the following: him and to obtain her consent to the
(1) There is a legal right or duty; sexual act, could justify the award of
(2) Which is exercised in bad faith; damages pursuant to Article 21 not
(3) For the sole intent of prejudicing or injuring because of such promise to marry but
another. because of the fraud and deceit behind
University of the East vs. Jader (2000): Educational it and the willful injury to her honor and
institutions are duty-bound to inform the students of reputation which followed thereafter. It is
their academic status and not wait for the latter to essential, however, that such injury
inquire from the former. The conscious should have been committed in a
indifference of a person to the rights or welfare manner contrary to morals, good
of the person/persons who may be affected by customs or public policy.
his act or omission can support a claim for
damages. ii. Malicious Prosecution

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CIVIL LAW REVIEWER Chapter VIII. HUMAN RELATIONS PROVISIONS
Que vs. IAC (1989): To constitute Other Torts

malicious prosecution, there must be
proof that the prosecution was prompted
by a sinister design to vex and humiliate
C. Dereliction of Duty
a person that it was initiated deliberately Art. 27: Any person suffering material or moral loss
by the defendant knowing that his because a public servant or employee refuses or
charges were false and groundless. neglects, without just cause, to perform his official
duty may file an action for damages and other relief
Concededly, the mere act of submitting against he latter, without prejudice to any disciplinary
a case to the authorities for prosecution administrative action that may be taken.
does not make one liable for malicious
prosecution. Amaro vs. Samanguit: Requisites:
(1) Defendant is a public officer charged with a
Drilon vs. CA: Malicious Prosecution performance of a duty in favor of the plaintiff;
defined: An action for damages brought (2) He refused or neglected without just cause to
by one against whom a criminal perform the duty;
prosecution, civil suit, or other legal (3) Plaintiff sustained material or moral loss as a
proceeding has been instituted consequence of such non-performance;
maliciously and without probable cause, (4) The amount of such damages, if material.
after the termination of such
prosecution, suit or other proceeding in
favor of the defendant herein. The gist of D. Illegal Acts
the action is the putting of legal process Art. 20. Every person who, contrary to law, willfully or
in force, regularly, for the mere purpose negligently causes damage to another, shall
of vexation or injury. indemnify the latter for the same
Concurring requisites: E. Unfair Competition

1. The fact of the prosecution and the
defendant was himself the prosecutor Art. 28: Unfair competition in agricultural, commercial
and then action was terminated with or industrial enterprises or in labor through the use of
an acquittal; force, intimidation, deceit, machination or any other
2. The prosecutor acted without unjust, oppressive or highhanded method shall give
probable cause; rise to a right of action by the person who thereby
3. That the prosecutor was impelled by suffers damage.
legal malice, that is by improper or
414
sinister motive. F. Violation of Human Dignity
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Art. 26. Every person shall respect the dignity,
iii. Public Humiliation personality, privacy and peace of mind of his
neighbors and other persons. The following and
Grand Union vs. Espino: It is against similar acts, though they may not constitute a criminal
morals, good customs and public policy offense, shall produce a cause of action for damages,
to humiliate, embarrass and degrade the prevention and other relief:
dignity of a person. Everyone must 1. Prying into the privacy of another's residence
respect the dignity, personality, privacy 2. Meddling with or disturbing the private life or
and peace of mind of his neighbors and family relations of another
3. Intriguing to cause another to be alienated from
other persons (Article 26, Civil Code).
his friends
4. Vexing or humiliating another on account of his
iv. Unjustified Dismissal religious beliefs, lowly station in life, place of
birth, physical defect, or other personal condition.
Quisaba vs. Sta. Ines: The complaint in
this case is not grounded on his St. Louis Realty Corporation vs. CA (Illustration of
dismissal per se, as in fact he does not a “similar act”): The acts and omissions of the
ask for reinstatement, but on the manner firm fall under Article 26. Persons who know the
of his dismissal and the consequent residence of Doctor Aramil, were confused by the
effects of such dismissal. If the dismissal distorted, lingering impression that he was renting
was done anti-socially or oppressively, his residence from Arcadio or that Arcadio had
leased it from him. Either way, his private life was
as the complaint alleges, then the
mistakenly and unnecessarily exposed.
respondents violated Art. 1701 of the
CC and Art 21 of the CC.

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CIVIL LAW REVIEWER Chapter IX. DAMAGES
Chapter IX. Damages B. Kinds of Damages

(1) ACTUAL/COMPENSATORY- for loss
A. DEFINITION AND CONCEPT actually suffered
B. KINDS OF DAMAGES (2) MORAL- mental anguish, etc.
1. ACTUAL/COMPENSATORY DAMAGES (3) NOMINAL- for rights recognized and
i. KINDS OF ACTUAL DAMAGES violated
ii. GENERAL PRINCIPLES FOR (4) TEMPERATE/MODERATE- for damages
RECOVERY proved but the amount was not proven
iii. DAMAGES FOR PERSONAL INJURY &
(5) LIQUIDATED- stipulated damages in the
DEATH
iv. ATTORNEY’S FEES contract
2. MORAL DAMAGES (6) EXEMPLARY/CORRECTIVE- to serve as
i. GENERAL PRINCIPLES OF an example for the common good
RECOVERY
ii. MORAL DAMAGES IN MALICIOUS 1. Actual or Compensatory
PROSECUTION
iii. MORAL DAMAGES IN RAPE When is a person entitled to actual or
iv. MORAL DAMAGES IN MURDER
compensatory damages? (Art. 2199)
v. LABOR CASES
3. NOMINAL DAMAGES  When there is a pecuniary loss suffered
i. REQUISITES by him;
4. TEMPERATE/MODERATE DAMAGES  When he has alleged and prayed for
i. REQUISITES such relief (Manchester Dev’t Corp vs.
5. LIQUIDATED DAMAGES CA);
6. EXEMPLARY/CORRECTIVE DAMAGES  When he has duly proved it;
i. REQUISITES TO RECOVER
EXEMPLARY DAMAGES AND
 When provided by law or by stipulation.
LIQUIDATED DAMAGES AGREED
UPON IN ADDITION TO EXEMPLARY No proof of pecuniary loss is necessary for:
ii. GENERAL PRINCIPLES moral, nominal, temperate, liquidated or
exemplary damages. The assessment of such
A. Definition and Concept damages is discretionary upon the court, except
liquidated ones. (Art. 2216)
People vs. Ballesteros (supra): Damages may
be defined as the pecuniary compensation, i. Kinds of Actual Damages
recompense, or satisfaction for an injury 415
sustained, or as otherwise expressed, the CC
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pecuniary consequences which the law imposes Art.
for the breach of some duty or the violation of 2200 A. Damnum emergente- value of the
some right. loss suffered
B. Lucro cessante- profits which the
Ocena vs. Icamina: The obligation to repair the obligee failed to obtain
damages exists whether done intentionally or 2205 A. Loss of earning capacity due to
negligently and whether or not punishable by injury (temporary or permanent)
B. Damage to Business Standing or
law.
Commercial Credit
2206 A. Fixed indemnity for death = Php
Elements for recovery of damages: 50,000 (as of 2005)
1. Right of action B. Loss of Earning Capacity of the
2. For a wrong inflicted by the defendant Deceased
3. Damage resulting to the plaintiff 2209 Interest
2208 Attorney’s Fees & Expenses of Litigation
ii. General Principles for Recovery

(1) The amount of damages must be fair
and just and commensurate to the loss.
- In case of contracts, only those
injuries which could have been
reasonably foreseen by the parties
by the parties at the time the
contract was entered into are
recoverable.

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(7) The damages must be susceptible of

(2) The damages must be proximate and ascertainment in some manner other
not remote or speculative. than by mere speculation, conjecture or
(3) The damages must be proven by surmise and by reference to some fairly
competent evidence (admissible or definite standard, such as market value,
probative) established experience or direct
- Integrated Packaging Corp. vs. CA; inference from known circumstances.
Fuentes vs. CA: It is necessary to Talisay-Silay vs. Associacion: Where,
prove with a reasonable degree of however, it is reasonably certain that
certainty, premised upon competent injury consisting of failure to realize
proof and on the best evidence otherwise reasonably expected profits
obtainable by the injured party, the had been incurred, uncertainty as to the
actual amount of loss. precise amount of such unrealized
(4) Circ. No. 7, Mar. 24, 1988; Manchester profits will not prevent recovery or the
Dev’t. Corp. vs. CA, 1987: Complaint award of damages.
and prayer must specify amount of The extent of recovery:
damages and pay filing fees before it Recovery of all proximately traceable to the
may be accepted and admitted for filing. primary negligence, including subsequent
(5) The requirement of certainty does not aggravations, the probability of which the law
prevent the drawing of reasonable regards as a consequence and natural result
inferences from the fact and likely to flow form the original injury. However,
circumstance in evidence. note that if the subsequent aggravations are due
to his own negligence then the tortfeasor shall
(6) Events which occur after the wrong not be liable for such since Art. 2203 imposes a
complained of may serve to render the duty on the injured party to avoid loss or
damage sufficiently certain. minimize resulting damages.
Art. Contracts and Liability extends to those: Note:
2201 quasi contracts 1. natural and probable consequences Liability extends to all damages which may be
of the breach reasonably attributed to the non-performance
2. those that have been foreseen of the obligation in case of fraud, bad faith,
3. those that could have been malice or wanton attitude
reasonably foreseen (FBM-WA).
416
Provided: obligor in good faith
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Art. Crimes and Liability extends to all damages which Note:
2202 quasi-delicts are the natural and probable WON damage is foreseen is irrelevant
consequence
Algarra vs. Sandejas: Actual damages for a What must be proved:

negligent act or omission are confined to those
which "were foreseen or might have been Proof
foreseen," or those which were "the natural and Fact of Reasonable certainty – only that the fact
probable consequences" or "the direct and Injury and cause of injury must be taken out of
immediate consequences" of the act or the area of speculation. Usual burden of
omission. (Asked eight times from 1990 to 2008) proof required in a negligence case,
prove the substantive right, its breach and
the amount of damages flowing from the
Daywalt vs. Recoletos et al.: The damages
breach.
recoverable upon breach of contract are, Cause Proximate cause – the cause, which, in a
primarily, the ordinary, natural and in a sense natural and continuous sequence,
the necessary damage resulting from the unbroken by any efficient intervening
breach. Other damages, known as special cause, produces the injury, and without
damages, are recoverable where it appears that which the injury would not have occurred.
the particular conditions which made such (“without which test of cause in fact”)
damages a probable consequence of the breach Amount Need not be proved with the same
were known to the delinquent party at the time degree of certainty. Fair and reasonable
the contract was made. estimate of the amount of damage.

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When pecuniary loss need not be proved capacity of a minor is even stronger if he
1) Liquidated damages previously agreed or she was a student, whether already
upon training for a specific profession or still
2) If damages other than actual are sought engaged in general studies. Formula
(Art. 2216) established in decided cases for
3) Loss is presumed (ex: loss of a child or computing net earning capacity:
spouse)
4) Forfeiture of bonds in favor of the MMTC v. CA: Net earning capacity (X) =
government for the purpose of life expectancy * [gross annual income –
promoting public interest or policy (ex: reasonable, necessary living expenses]
bond for temporary stay of alien
Life expectancy = 2/3 (80- age of
iii. Damages for Personal Injury & Death deceased)
(Art. 2206)
iv. Attorney’s Fees
Recoverable damages for death
caused by a crime or quasi-delict: Attorney’s Fees is the exception NOT
(a) At least three thousand pesos, even the general rule.
though there may have been
mitigating circumstances. Art. 2208: can be recovered:
- (People vs. Robert Brodett y (1) If there is a stipulation to that effect
Pajaro, Jan. 18, 2008: so as of (2) When exemplary damages are
2008, it is P75,000 awarded;
(3) When the defendant's act or omission
(b) Loss of the earning capacity of the has compelled the plaintiff to litigate with
deceased, third persons or to incur expenses to
- paid to his heirs protect his interest;
- unless the deceased on account (4) In criminal cases of malicious
of permanent physical disability prosecution against the plaintiff;
not caused by the defendant, (5) In case of a clearly unfounded civil
had no earning capacity at the action or proceeding against the plaintiff;
time of death; (6) Where the defendant acted in gross and
(c) Support according to the provisions evident bad faith in refusing to satisfy
the plaintiff's plainly valid, just and
of Article 291 demandable claim;
- the recipient who is not a testate (7) In actions for legal support; 417
or intestate heir may demand (8) In actions for the recovery of wages of
TORTS & DAMAGES

support from the person causing household helpers, laborers and skilled
the death, for a period not workers;
exceeding five years (9) In actions for indemnity under
(d) Moral damages workmen's compensation and
- demanded by the spouse, employer's liability laws;
legitimate and illegitimate (10) In a separate civil action to recover civil
liability arising from a crime;
descendants and ascendants of (11) When at least double judicial costs are
the deceased awarded;
(12) In any other case where the court
Factors: deems it just and equitable that
1. Earning Capacity attorney's fees and expenses of
2. Obligation to Support litigation should be recovered.
3. Moral Damages to heirs
In all cases, the attorney's fees and expenses
Compensation should be allowed for of litigation must be reasonable.
loss of earning capacity resulting from
the death of a minor who has not yet  Kinds:
commenced employment or training for (1) Retainer’s agreement between the
a specific profession if sufficient lawyer and the client (in writing).
evidence is presented to establish the (2) Award as an indemnity to the client.
amount thereof. Quirante vs. IAC: BELONGS to the
client hence the litigant is the judgment
The argument for allowing creditor who may enforce the judgment
compensation for loss of earning by execution.

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 INTEREST accrues when: - from judicial demand

- the obligation consists in the payment of - even if the obligation is silent upon this
a sum of money point. (Art. 2212)
- debtor incurs in delay
- there being no stipulation to the contrary  When is interest not recovered?
- When claims/ damages are unliquidated
If there is no stipulated interest the - EXCEPT when the demand can be
legal interest of 6%. (Art. 2209) established with reasonably certainty.
(Art. 2213)
Interest From
due  Determination of legal interest:
Art. 2210 Breach of Discretion Interest 1. When an obligation, regardless of its
contract of the court imposed source (i.e., law, contracts, quasi-
on
contracts, delicts or quasi-delicts) is
damages
awarded breached, the contravenor can be held
Art. 2211 Crimes and Discretion Interest is liable for damages.
quasi- of the court awarded 2. With regard particularly to an AWARD
delicts as part of OF INTEREST in the concept of actual
damages and compensatory damages, the RATE
of interest, as well as the ACCRUAL
 When shall interest earn legal thereof, is imposed, as follows(Eastern
interest? Shipping Lines vs. CA, 1994):
BASE RATE ACCRUAL

a. When the obligation is breached, a) That which may have been to be computed from default, i.e., from
and it consists in the PAYMENT OF stipulated in writing. JUDICIAL or EXTRAJUDICIAL demand
A SUM OF MONEY, i.e., a loan or b) In the absence of stipulation, under and subject to the provisions of
forbearance of money, the interest the rate of interest shall be 12% Article 1169 of the Civil Code.
due should be per annum (legal interest)
b. Furthermore, the INTEREST legal interest from the time it is JUDICIALLY demanded.
DUE shall itself earn
c. When an obligation, NOT at the rate of 6% per annum. If claim or damages are LIQUIDATED,
constituting a loan or forbearance from default, i.e., from judicial or 418
of money, is breached, an interest extrajudicial demand. (Art. 1169, Civil
TORTS & DAMAGES

on the AMOUNT OF DAMAGES Code)
awarded may be imposed at the
discretion of the court. If UNLIQUIDATED, from the time the
demand can be established with
The actual base for the reasonable certainty. Hence, the interest
computation of legal interest shall shall begin to run only FROM THE DATE
be on the amount finally adjudged. THE JUDGMENT OF THE COURT IS
MADE (at which time the quantification of
damages may be deemed to have been
reasonably ascertained).
d. When the JUDGMENT of the the rate of legal interest, whether from FINALITY UNTIL ITS
court awarding a sum of money the case falls under a,b, or c, SATISFACTION, this period being
becomes final and executory, above, shall be 12% per annum deemed to be an equivalent to a
forbearance of credit.

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Start of Delay Villanueva vs. Salvador: Requisites for awarding

(1) Extrajudicial: demand letter moral damages:
(2) Judicial: Filing of complaint (1) there must be an injury, whether
(3) Award physical, mental or psychological,
clearly sustained by the claimant;
When damages mitigated: (2) there must be a culpable act or omission
1. In quasi-delicts contributory factually established;
negligence (Art. 2214) (3) the wrongful act or omission of the
2. Doctrine of avoidable consequences defendant must be the proximate cause
a) This refers to the duty to of the injury sustained by the claimant;
minimize damages once a and
cause of action has accrued. (4) the award of damages is predicated on
Standard: good father of a any of the cases stated in ART. 2219
family (Art. 2203) NCC.
3. In contracts, quasi-contracts and quasi-
delict (C-BELL): i. General Principles of Recovery
a) plaintiff has contravened the 1. Moral damages must somehow be
terms of contract proportional to the suffering inflicted.
b) plaintiff derived some benefit as
result of contract 2. In culpa contractual or breach of
c) in case where exemplary contract, moral damages may be
damages are to be awarded, recovered when the defendant acted in
that the defendant acted upon bad faith or was guilty of gross
the advise of counsel negligence (amounting to bad faith) or in
d) that the loss would have wanton disregard of his contractual
resulted in any event obligation and, exceptionally, when the
e) that since the filing of the action, act of breach of contract itself is
the defendant has done his best constitutive of tort resulting in physical
to lessen the plaintiff's loss or injuries.
injury (Art. 2215)
4. In crimes mitigating circumstances 3. By special rule in Article 1764, in relation
(Art. 2204) (increased, for aggravating) to Article 2206, moral damages may
also be awarded in case the death of a
2. Moral Damages passenger results from a breach of
carriage. 419
Visayan Sawmill vs. CA: Moral damages are
TORTS & DAMAGES

emphatically not intended to enrich a 4. In culpa aquiliana, or quasi-delict,
complainant at the expense of the defendant. Its (a) when an act or omission causes
award is aimed at the restoration, within the physical injuries, or
limits of the possible, of the spiritual status quo (b) where the defendant is guilty of
ante, and it must be proportional to the suffering intentional tort, moral damages may
inflicted. aptly be recovered. This rule also
applies to contracts when breached
Art. 2217: Awarded when injury consists of: by tort.
(PBMF-MWSSS)
a. Physical suffering 5. In culpa criminal, moral damages could
b. Besmirched reputation be lawfully due when the accused is
c. Mental anguish found guilty of physical injuries,
d. Fright lascivious acts, adultery or concubinage,
e. Moral shock illegal or arbitrary detention, illegal
f. Wounded feelings arrest, illegal search, or defamation.
g. Social humiliation 6. Malicious prosecution can also give rise
h. Serious anxiety to a claim for moral damages. The term
i. Similar injury "analogous cases," referred to in Article
2219, following the ejusdem generis
- Though incapable of pecuniary rule, must be held similar to those
computation expressly enumerated by the law.
- If such is the proximate result of
defendant’s act or omission.

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7. Although the institution of a clearly

unfounded civil suit can at times be a
legal justification for an award of
attorney's fees, such filing, however, has
almost invariably been held not to be a
ground for an award of moral damages.
(Expertravel& Tours vs. CA, 1 to 7)
8. The burden rests on the person claiming
420
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and respected businessman in his community, and (b) line with prevailing jurisprudence. In
attorney’s fees. addition, the presence of the qualifying
circumstances of minority and
(a) Does Ortillo have a legal basis for his claim for relationship entitles the offended party to
moral damages?
(b) How about his claim for attorney’s fees, having
exemplary damages in the amount of
hired a lawyer to defend him? P25K.
Suggested Answer: People vs. Teodorico Cleopas and

(a) There is no legal basis to Ortillo’s claim for moral Pirame (2000): The award of P50,000
damages. It does not fall under the coverage of from each accused as moral and
Article 2219 of the New Civil Code. exemplary damages, however, is
(b) Ortillo is entitled to attorney’s fees because unsupported. The widow of the victim
Fabricato’s complaint is a case of malicious did not testify on any mental anguish or
prosecution or a clearly unfounded civil action
(Art. 2208 [4] and [11], NCC).
emotional distress, which she suffered
as a result of her husband's death.
ii. Moral Damages in Malicious
Arcona vs. CA: As borne out by human
Prosecution
nature and experience, a violent death
invariably and necessarily brings about
Mijares vs. CA: Moral damages cannot
emotional pain and anguish on the part
be recovered from a person who has
of the victim’s family. Such violent death
filed a complaint against another in good
or brutal killing not only steals from the
faith, or without malice or bad faith. If
family of the deceased his precious life,
damage results from the filing of the
deprives them forever of his love,
complaint, it is damnum absque injuria.
affection and support, but often leaves
them with the gnawing feeling that an
Castillo vs. Castillo: The adverse result
injustice has been done to them. For this
of an action does not per se make the
reason, moral damages must be
act wrongful and subject the actor to the
awarded even in the absence of any
payment of moral damages. The law
allegation and proof of the heirs’
could not have meant to impose a
emotional suffering.
penalty on the right to litigate; such right
is so precious that moral damages may
v. Labor Cases
not be charged on those who may
exercise it erroneously.
Triple Eight Interated Services, Inc. vs. 421
NLRC: Moral damages are recoverable
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iii. Moral Damages in Rape
where the dismissal of the employee
was attended by bad faith or fraud or
People vs. Calongui: Anent the award of
constituted an act oppressive to labor, or
damages, civil indemnity ex delicto is
was done in a manner contrary to
mandatory upon finding of the fact of
morals, good customs, or public policy.
rape while moral damages is awarded
Likewise, exemplary damages may be
upon such finding without need of
awarded if the dismissal was effected in
further proof because it is assumed that
a wanton, oppressive or malevolent
a rape victim has actually suffered moral
manner.
injuries entitling the victim to such
 Factors in determining amount:
award. If without factual and legal
(1) Political, social, financial status, of
bases, no award of exemplary damages
the person offended as well as the
should be allowed.
business and financial standing of
the offender.
iv. Moral Damages in Murder
(2) Degree of anguish
(3) Sentimental value where applicable
People vs. Barcena: TC correctly
awarded P75K as civil indemnity which
ILLUSTRATIONS:
is awarded if the crime is qualified by
circumstances which warrant the
Kierulf et al. vs. CA : The social and financial
imposition of the death penalty.
standing of a claimant of moral damages may be
However, the award of P50K as moral
considered in awarding moral damages only if
damages must be increased to P75K in
he or she was subjected to contemptuous

lOMoARcPSD|3291925
conduct despite the offender's knowledge of his therefore, experience physical suffering and
or her social and financial standing. mental anguish, which call be experienced only
by one having a nervous system. The statement
PNB vs. CA: Petitioner has not presented in People vs. Manero and Mambulao Lumber
adequate evidence to show that private Co. vs. PNB that a corporation may recover
respondent is indeed a big time gambler. moral damages if it "has a good reputation that
Petitioner has besmirched private respondent's is debased, resulting in social humiliation" is an
reputation and has considerably caused him obiter dictum.
undue humiliation. The records further show that NAPOCOR vs. Philipp Brothers: While it is true
plaintiff is a prominent businessman, licensed that besmirched reputation is included in moral
and engaged in the real estate business. He is damages, it cannot cause mental anguish to a
at the same time a consultant of Dizon-Esguerra corporation, unlike in the case of a natural
Real Estate Company. Defendant treated him as person, for a corporation has no reputation in the
a valued and VIP client. Because of the bank's sense that an individual has, and besides, it is
refusal to encash the entire one million face inherently impossible for a corporation to suffer
amount of his manager's checks, he was so mental anguish.
embarrassed for he was not able to purchase a
house and lot in Baguio City. BAR QUESTION
Lopez, et al. vs. Pan American World Airways:
International carriers like defendant know the Rosa was leasing an apartment in the city. Because
prestige of such an office. For the Senate is not of the Rent Control Law, her landlord could not
only the Upper Chamber of the Philippine increase the rental as much as he wanted to, nor
terminate her lease as long as she was paying her
Congress, but the nation's treaty-ratifying body.
rent. In order to force her to leave the premises, the
And he was former Vice-President of the landlord stopped making repairs on the apartment,
Philippines. An award of P100,000,000 is and cause the water and electricity services to be
appropriate. Mrs. Maria J. Lopez, as wife of disconnected. The difficulty of living without electricity
Senator Lopez, shared his prestige and and running water resulted in Rosa’s suffering a
therefore his humiliation. Mr. and Mrs. Alfredo nervous breakdown. She sued the landlord for actual
Montelibano, Jr. were traveling as immediate and moral damages. Will the action prosper?
members of the family of Senator Lopez. As Explain.
such they likewise shared his prestige and
Answer:
humiliation.
Yes, based on quasi-delict under the human relations
Producers Bank vs. CA: In the case of Leopoldo provisions of the New Civil Code (Articles 19, 20 and
Araneta v. Bank of America, we held that: "The 21) because the act committed by the lessor is
financial credit of a businessman is a prized and contrary to morals. Moral damages are recoverable
422
valuable asset, it being a significant part of the under Article 2219 (10) in relation to Article 21.
TORTS & DAMAGES

foundation of his business. Any adverse Although the action is based on quasi-delict and not
reflection thereon constitutes some financial loss on contract, actual damages may be recovered if the
to him.” The damage to private respondents' lessee is able to prove the losses and expenses she
reputation and social standing entitles them to suffered.
moral damages.
Alternative Answers:
(a) Yes, based on breach of contract. The lessor
Strebel vs. Figueras, et al.: As a general rule, has the obligation to undertake repairs to make
the right of recovery for mental suffering the apartment habitable and to maintain the
resulting from bodily injuries is restricted to the lessee in the peaceful and adequate enjoyment
person who has suffered the bodily hurt, and of the lease for the entire duration of the contract
there can be no recovery for distress caused by (Article 1654, NCC). Since there was willful
sympathy for another's suffering, or for fright due breach of contract by the lessor, the lessee is
to a wrong against a third person. A husband or entitled to moral damages under Article 2220,
NCC. She is also entitled to actual damages,
wife cannot recover for mental suffering caused
e.g. loss of income, medical expenses, etc.,
by his sympathy for the other's suffering. which she can prove at trial.
For Corporations: (b) Yes, based on contract and/or on tort. The lessor
willfully breached his obligations under Article
ABS-CBN vs. CA: The award of moral damages 1654, NCC, hence, he is liable for breach of
cannot be granted in favor of a corporation contract. For such breach, the lessee may
because, being an artificial person and having recover moral damages under Art. 2220 of the
existence only in legal contemplation, it has no NCC, and actual damages that she may have
suffered on account thereof. And since the
feelings, no emotions, no senses, It cannot,
conduct of the lessor was contrary to morals, he

lOMoARcPSD|3291925
may also be held liable for quasi-delict. The nominal damages for insensitivity, inadvertence
lessee may recover moral damages under Article or inattention to their customer's anxiety and
2219 (10) in relation to Article 21, and all actual need of the hour.
damages which she may have suffered by reason
of such conduct under Articles 9, 20 and 21.
4. Temperate Damages
(c) Yes, the action should prosper for both actual
and moral damages. In fact, even exemplary Temperate or moderate damages are more than
damages and attorney’s fees can be claimed by nominal but less than compensatory damages.
Rosa, on the authority of Magbanua vs. IAC (137 It may be recovered when some pecuniary loss
SCRA 328), considering that, as given, the has been suffered but its amount can not be
lessor’s willful and illegal act of disconnecting the provided with certainty. (Art. 2224)
water and electric services resulted in Rosa’s
suffering a nervous breakdown. Art. 20 NCC and Temperate damages must be reasonable under
Art. 21 NCC authorize the award of damages for
the circumstances. (Art. 2225)
such willful and illegal conduct.
i. Requisites:
3. Nominal Damages
(1) There is actual damage.
(2) The pecuniary amount of the damage
Art. 2221. Nominal damages are adjudicated in order
that a right of the plaintiff, which has been violated or
cannot be proved.
invaded by the defendant, may be vindicated or (3) Amount must be reasonable.
recognized, and not for the purpose of indemnifying
the plaintiff for any loss suffered by him. In cases where the resulting injury might be
continuing and possible future complications
Art. 2222. The court may award nominal damages: directly arising from the injury, while certain to
- in every obligation in Article 1157, or occur are difficult to predict, temperate damages
- where any property right has been invaded. can and should be awarded on top of actual or
compensatory damages; in such cases there is
Art. 2223. Adjudication of nominal damages
precludes:
no incompatibility between actual and temperate
- further contest upon the right involved damages.
- all accessory questions between the parties
or their respective heirs and assigns. Citytrust Bank vs. IAC: Temperate damages are
incompatible with nominal damages hence,
i. Requisites: cannot be granted concurrently.
(1) A legal right has been violated.
(2) There is no loss or damage suffered or Pleno vs. CA: Temperate damages are included 423
such cannot be proven or was not within the context of compensatory damages
TORTS & DAMAGES

proved. (RCPI vs. CA). ". . . There are cases where from
(3) The award is to vindicate the right the nature of the case, definite proof of
violated. pecuniary loss cannot be offered, although the
court is convinced that there has been such loss.
General Rule: One does not ask for nominal For instance, injury to one's commercial credit or
damages, and it is in lieu of the actual, moral, to the goodwill of a business firm is often hard to
temperate, or liquidated damages. show certainty in terms of money. (NOTE: In this
case actual and temperate damages were
Nominal damages are incompatible with: actual, awarded. It is postulated that the actual
temperate and exemplary damages. damages is for the car while the temperate
damages is for the lost actual income not
Armovit vs. CA: Nominal damages cannot co- sufficiently proved.)
exist with actual or compensatory damages. 5. Liquidated Damages
Francisco v. Ferrer: No moral or exemplary Those agreed upon by the parties to a contract,
damages was awarded. Nevertheless, when to be paid in case of breach thereof. (Art. 2226)
confronted with their failure to deliver on the
wedding day the wedding cake ordered and paid Grounds for equitable reduction:
for, petitioners gave the lame excuse that - iniquitous or
delivery was probably delayed because of the - unconscionable. (Art. 2227)
traffic, when in truth, no cake could be delivered
because the order slip got lost. For such Stipulation is not controlling:
prevarication, petitioners must be held liable for

lOMoARcPSD|3291925
When the breach of the contract is not the one i. Requisites to recover exemplary
contemplated by the parties in agreeing upon damages and liquidated damages
the liquidated damages. In this case, the law agreed upon in addition to exemplary
shall determine the measure of damages. (Art. (Art.2234):
2228)
 These damages are agreed upon in a The plaintiff must show that he is
contract in case of breach thereof. entitled to moral, temperate or
 There is no need to prove the amount, compensatory damages:
only the fact of the breach.
 The amount can be reduced if: If arising from When exemplary
- unconscionable as determined by damages are granted
the court Art. Crimes the crime was
2230 committed with an
- partial or irregular performance.
aggravating
circumstance/s
General Rule: The penalty shall substitute the Art. Quasi-delicts defendant acted with
indemnity for damages and the payment of the 2231 gross negligence
interests in case or breach. Art. Contracts and defendant acted in a
2232 Quasi- contracts wanton, fraudulent,
Exceptions reckless, oppressive, or
(1) When there is a stipulation to the contrary. malevolent manner
(2) When the obligor is sued for refusal to pay (WFROMM)
the agreed penalty.
(3) When the obligor is guilty of fraud. A stipulation whereby exemplary
damages are renounced in advance
6. Exemplary/Corrective Damages shall be null and void. (Art. 2235)
Art. 2229. Nature of exemplary or corrective ii. General Principles

damages (1) Amount need not be proven.
- Imposed by way of example (2) Cannot be recovered as a matter or
- or correction for the public good right; may be waived.
- in addition to the moral, temperate, (3) An employer may be subsidiarily liable
liquidated or compensatory damages. to pay moral, actual, temperate or
liquidated damages arising from an
Exemplary damages cannot be recovered as a employee’s criminal offense, but NOT as
matter of right; discretion of the court. (Art. to exemplary damages because 424
2233) aggravating circumstances are personal
TORTS & DAMAGES

to the accused.
PNB vs. CA: However, the award of

P1,000,000 exemplary damages is also
far too excessive and should likewise be
reduced to an equitable level.
Exemplary damages are imposed not to
enrich one party or impoverish another
but to serve as a deterrent against or as
a negative incentive to curb socially
deleterious actions.
- end of Torts & Damages -

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lOMoARcPSD|3291925

Table of Contents
Chapter I. Introduction.................................427 Chapter XI. Property .................................... 447

I. Controlling Law—Lex Situs/Lex Rei
Chapter II. Jurisdiction ................................429 Sitae 447
I. Bases of Exercise of Judicial Jurisdiction II. Exceptions to Lex Situs..................... 447
429 III. Situs of Certain Properties ................ 447
II. Exercise of Jurisdiction .....................429
III. Ways of Dealing with Jurisdiction in a Chapter XII. Contracts ................................. 449
Conflicts Problem.......................................430 I. Extrinsic Validity of Contracts ........... 449
II. Extrinsic Validity of Contracts ........... 449
Chapter III. Choice of Law ...........................431 III. Capacity to Enter Into Contracts....... 449
I. Approaches to Choice of Law ...........431 IV. Choice of Law Issues in Conflicts
Contracts Cases ........................................ 449
Chapter IV. Characterization .......................433 V. Limitation Choice of Law................... 450
I. Types of Characterization .................433 VI. Applicable Law in the Absence of
II. Depecage ..........................................433 Effective Choice......................................... 450
Chapter V. Renvoi ........................................434 Chapter XIII. Succession ............................. 451

I. Definition ...........................................434 I. Extrinsic Validity (Arts. 17, 815-817, CC)
II. Ways of Dealing with Renvoi ............434 451
II. Intrinsic Validity ................................. 451
Chapter VI. Notice and Proof of Foreign Law III. Interpretation of Wills ........................ 451
.......................................................................435 IV. Revocation ........................................ 451
I. Proof of Foreign Law.........................435 V. Probate.............................................. 451
II. Exceptions to the Application of Foreign VI. Administration of Estates .................. 452
Law 435 VII. Trusts............................................ 452
Chapter VII. Nationality................................436 Chapter XIV. Torts and Crimes ................... 453
I. Determination of Nationality ..............436 I. Torts .................................................. 453
II. Procedure for Naturalization .............436 II. Crimes............................................... 454
III. Loss of Philippine Citizenship ...........437
IV. Problems in Applying the Nationality Chapter XV. Torts and Crimes .................... 455
Principle .....................................................438 I. Personal Law of Corporations .......... 455
426
II. Domicile/Residence of Corporations 455
Chapter VIII. Domicile ..................................439

III. Jurisdiction Over Foreign Corporations
I. Domicile ............................................439 455
II. Comparative Merits and Demerits of IV. Right of Foreign Corporations to Bring
Domicile and Nationality ............................440 Suit 456
Chapter IX. Principles on Personal Status Chapter XVI. Foreign Judgments ............... 457
and Capacity.................................................441 I. Recognition v. Enforcement.............. 457
I. Definition ...........................................441 II. Bases of Recognition and Enforcement
II. Beginning and End of Personality.....441 457
III. Absence ............................................441 III. Policy of Preclusion Underlying
IV. Name.................................................442 Recognition and Enforcement ................... 457
V. Age of Majority ..................................442 IV. Requisites for Recognition or
VI. Capacity ............................................442 Enforcement .............................................. 457
V. Procedures for Enforcement ............. 457
Chapter X. Family Relations........................443 VI. Effect of Foreign Judgment in the
I. Marriage ............................................443 Philippines ................................................. 458
II. Divorce and Separation.....................445
III. Annulment and Declaration of Nullity 445
IV. Parental Relations.............................446
V. Adoption ............................................446

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CIVIL LAW REVIEWER Chapter I. INTRODUCTION
PRIVATE INTERNATIONAL LAW TEAM

Chapter I. Introduction

Lyvette San Diego
Lead Writer PRIVATE INTERNATIONAL LAW:
Viktor Fontanilla  It is a branch or part of Philippine Law which
Writer regulates the application of foreign law
CIVIL LAW within Philippine jurisdiction in the resolution
of cases involving foreign elements.
Kristine Bongcaron
Patricia Tobias  It is that part of municipal law which governs
Subject Editors cases involving a foreign element.
ACADEMICS COMMITTEE  more commonly known in other jurisdictions
as conflict of laws
Kristine Bongcaron
Michelle Dy
Patrich Leccio General Nature of Private International Law
Editors-in-Chief  It is a method or technique. It is not a
PRINTING & DISTRIBUTION system of substantive rules. It has no
Kae Guerrero material content in terms of rights and
duties, and hence it does not provide
DESIGN & LAYOUT immediate solution to the issue at hand. It
Pat Hernandez only points out the legal system which rules
Viktor Fontanilla are to be applied to a particular dispute.
Rusell Aragones
Romualdo Menzon Jr.  It is a modus vivendi among the private law
Rania Joya systems of the world by which they may
apply one another’s laws.
LECTURES COMMITTEE
 The principles of conflict of laws
Michelle Arias
Camille Maranan
incorporated in municipal laws of many
Angela Sandalo states are based on comity of nations.
Heads  COMITY: is neither a matter of absolute
Katz Manzano Mary Rose Beley obligation nor of mere courtesy and good
Arianne Cerezo Marcrese Banaag will, it is the recognition which one nation
Volunteers allows within its territory to the legislative,
executive, or judicial acts of another nation
MOCK BAR COMMITTEE
having due regard both to international duty
Lilibeth Perez and convenience, and to the rights of its own 427
BAR CANDIDATES WELFARE citizens or of other persons who are under

the protection of its laws (Hilton v. Guyot,
Dahlia Salamat
1895)
LOGISTICS  FOREIGN ELEMENT may refer to parties,
Charisse Mendoza property, events, or transactions.
SECRETARIAT COMMITTEE PRIVATE INTERNATIONAL LAW vs.PUBLIC

Jill Hernandez INTERNATIONAL LAW
Head
Loraine Mendoza Faye Celso Basis PRIL PIL
Mary Mendoza Joie Bajo Parties Primarily states
Members and international
organizations
Individuals or
corporations
Exception:
Human rights
cases
Transactions state-to-state or private
government-to- transactions
government between
matters individuals

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter I. INTRODUCTION
Sources  Custom
 Treaty
 general
principles of
law
recognized by
 National
civilized
conflict rule
nations
 International
 judicial
conflict rules
decisions
 teachings of
the most
highly
qualified
publicists
Remedies  diplomatic
protest
 resort to forum  negotiation,
court or conciliation,
administrative arbitration
tribunals (as  adjudication
provided by before
municipal laws international
of the state) tribunal
 use of force
 war
 PRIL v. Municipal law: presence of foreign

element
SOURCES
1. Codes and statutes
2. Treaties and international conventions
3. Treatises, commentaries, and studies of
learned societies
4. Judicial decisions
Examples of Conflict of Law Rules in the

Philippines
1. Art. 15 CC: Lex Patriae 428
2. Art. 1251 (par. 3) CC: Lex Domicili

3. Art. 16 CC: Lex Situs/ Lex Rei Sitae
4. Art. 17 (par. 1) CC: Lex Loci Contractus
5. Art. 71 CC: Lex Loci Celebrationis
6. Art. 26 (par. 1) FC: Lex Loci Celebrationis
7. Art. 1306 CC: Lex Loci Intentionis
General Process in the Resolution of Conflict

Problem
1. Jurisdiction
 Where can or should litigation be
initiated?
2. Characterization of Cause of Action
 Which legal category does the case fall
into?
3. Choice of law
 Which law will the court apply?
4. Recognition and enforcement of
judgments
 Where can the resulting judgment be
enforced?

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. JURISDICTION
b. institution of legal proceedings wherein

Chapter II. Jurisdiction the court’s power over the property is
recognized and made effective
I. BASES OF JURISDICTION 2. Basis of jurisdiction: the presence of the
II. EXERCISE OF JURISDICTION property within the territorial jurisdiction of
III. WAYS OF DEALING WITH JURISDICTION IN
the forum
A CONFLICTS PROBLEM
C. Jurisdiction over the SUBJECT MATTER
JURISDICTION
1. Judicial jurisdiction - the power or Acquisition—
authority of a court to try a case, render 1. competence of the court to hear, try and
judgment and execute it in accordance decide the case is conferred by law
with law. 2. necessary that said power be properly
2. Legislative jurisdiction- the ability of invoked by the filing of petition
the state to promulgate laws and 3. cannot be conferred by mere consent of
enforce them on all persons and parties
property within its territory.
II. Exercise of Jurisdiction
I. Bases of Exercise of Judicial
Jurisdiction
TRADITIONAL BASIS:
1. State’s PHYSICAL POWER over persons
A. Jurisdiction over the PERSON and property within its territory
2. This explains the distinctions made between
Acquisition— 1
actions in personam and actions in rem or
1. Over plaintiff: filing of suit 2
quasi in rem , dating back to the case of
2. Over defendant: Pennoyer v. Neff (1878).
a. entry of appearance, or
b. service of legal process/summons In the US: The conceptual basis for the exercise
of jurisdiction has shifted from territorial power to
In rem proceeding: service of summons by considerations of MINIMUM CONTACTS and
publication FUNDAMENTAL FAIRNESS.
 Asiavest Limited v. CA, 1998: Jurisdiction 1. International Shoe Co. v. Washington
over the person of the defendant is not a (1945): Due process only requires that the
prerequisite to confer jurisdiction on the defendant who is not present within the
court provided that the court acquires territory of the forum have minimum contacts
jurisdiction over the res. Nonetheless with it such that the maintenance of the suit
summons must be served upon the does not offend traditional notions of fair
defendant not for the purpose of vesting the
429
play and substantial justice.
court with jurisdiction but merely for

2. Mullane v. Central Hanover Bank & Trust
satisfying the due process requirement. Co. (1950): The standard for adequate
notice is WON it is reasonably certain to
In personam proceeding: inform those affected or, where conditions
1. General Rule: Personal service of do not reasonably permit such notice, WON
summons or substituted service, the form chosen is not substantially less
PROVIDED, the defendant is within the likely to bring home notice than other of the
territorial jurisdiction of the court feasible and customary substitutes.
2. Exception: In Gemperle v. Schenker
wherein a non-resident was served with 3. Shaffer v. Heitner (1977): The minimum
summons through his wife, who was a contacts and fundamental fairness test
resident of the Philippines and who was his should be satisfied regardless of whether
representative and attorney-in-fact in a prior the proceedings are in rem, quasi in rem, or
civil case filed by him; moreover, the second in personam, and the minimum contacts
case was a mere offshoot of the first case.
1
B. Jurisdiction over the PROPERTY Actions in personam are directed against specific
persons and seek personal judgments.
1. Acquisition 2
Actions in rem or quasi in rem are directed against
a. seizure of property under a legal the thing or property or status of a person and seek
process judgments with respect thereto as against the whole
world and against particular persons, respectively.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter II. JURISDICTION
must exist among the forum, defendant, and Factors which justify the application of forum law
the cause of action. 1. A specific law of the forum decrees that
4. Long-arm statutes: statutes that allow the internal law should apply.
forum state to exercise jurisdiction over a 2. The proper foreign law was not properly
non-resident defendant, provided that the pleaded and proved.
prospective defendant has sufficient 3. The case falls under any of the exceptions
minimum contacts with the forum state. to the application of foreign law:
a. The foreign law is contrary to an
III. Ways of Dealing with Jurisdiction in a IMPORTANT PUBLIC POLICY of the
Conflicts Problem forum
b. The foreign law is PROCEDURAL in
nature
A. Dismiss the Case c. The foreign law is PENAL in nature
d. The case involves real or personal
Grounds— PROPERTY SITUATED IN THE
1. For Lack of jurisdiction over the subject FORUM (Lex Situs)
matter or over the parties to the suit e. The issue involved in the enforcement of
2. On the ground of FORUM NON foreign claim is FISCAL or
CONVENIENS ADMINISTRATIVE
f. The foreign law is contrary to GOOD
Doctrine of Forum Non Conveniens— MORALS (contra bonus mores)
(Asked in 94, 04 BAR EXAMINATIONS) g. The application of foreign law will work
1. This literally means “the forum is UNDENIABLE INJUSTICE to citizens of
inconvenient.” the forum
2. This doctrine requires the court to dismiss h. The application of foreign law might
the case on the ground that the controversy endanger the VITAL INTERESTS of the
may be suitably tried elsewhere. state
 The doctrine of forum non conveniens
should NOT be used as a ground for a
motion to dismiss because Sec. 1, Rule
16 of the Rules of Court does not
include said doctrine as a ground.
 The propriety of dismissing a case
based on the principle of forum non
conveniens requires a factual
determination; hence it is more properly
considered as a matter of defense.
(Bank of America NT&SA v. CA, 2003) 430
3. Reasons for applying forum non conveniens:

a. To prevent abuse of court’s processes
b. Burdensome on the court or taxpayers
c. Local machinery is inadequate to
effectuate a right (no way for the court to
secure evidence and attendance of
witnesses)
d. Avoid global forum shopping
B. Assume Jurisdiction
1. Proceed to Characterization (discussed

under CHARACTERIZATION)
2. Apply either: Forum Law or Foreign Law (will
be discussed more on the CHOICE OF
LAW)
 When the court assumes jurisdiction, it
may apply forum law or foreign law.
 Forum law should be applied whenever
there is good reason to do so because
forum law is the basic law.

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CIVIL LAW REVIEWER Chapter III. CHOICE of LAW
(Alabama Great Southern Railroad v.

Chapter III. Choice of Law Carroll, 1892)
 Criticism: Failure to resolve conflicts
I. APPROACHES TO CHOICE OF LAW cases with considerations of policy and
A. TRADITIONL; APPROACHES fairness as it is too technical.
B. MODERN APPROACHES
2. Cook’s Local Law Theory
 Treats conflicts cases as a purely
CHOICE OF LAW domestic case that does not involve a
 The determination by the court of whether to foreign element
apply forum law or foreign law  Criticism: narrow-minded by favoring an
 The factors that justify exercise of judicial exaggerated local policy
jurisdiction may be the same factors used to
determine choice of law. 3. Caver’s Principle of Preference
 BUT, jurisdiction and choice of law are two  Choice of law should be determined by
different concepts. A court may exercise considerations of justice and social
jurisdiction but apply foreign law OR not expediency and should not be the result
exercise jurisdiction, although its internal law of mechanical application of the rule or
may be applied as the proper law. principle of selection.
I. Approaches to Choice of Law B. Modern Approaches: relate to reaching

Ideally, all choice of law theories should advance appropriate results in particular cases
the notions of JUSTICE and PREDICTABILITY. 1. Place of the Most Significant Relationship
 Factual contacts evaluated depending
A. Traditional Approaches: emphasize on their relative importance and
simplicity, convenience and uniformity relevance to the issue at hand
 Identifies a plurality of factors that must
1. Vested Rights Theory be considered in the light of choice of
 An act done in a foreign jurisdiction law principles
gives rise to the existence of a right if  Among these factors are: needs of the
the laws of that state provide so. This interstate and international system,
right vests in the plaintiff and he carries relevant policies of the concerned and
it with him to be enforced in any forum interested states, justified expectations
he chooses to bring suit of the parties, basic policies underlying a
 The applicable law is the law of the particular field of law, certainty,
place of occurrence of the LAST ACT predictability and uniformity of result and
necessary to complete the cause of ease in the determination of law to be
action. applied 431
 If the place of the last act creates no  Criticism: No standard to evaluate

legal right, there is nothing for the forum significance of each contact
to recognize and enforce, even if its own
law creates such a right. In applying the grouping of contacts theory,
 Illustration: Carroll is an employee of courts, instead of regarding as conclusive
Alabama Corp. Both EE and ER are the intention of the parties or the place of the
residents of Alabama. Carroll was making or performance, lay emphasis rather
injured in the course of work in on the law of the place which has the most
Mississippi due to negligent conduct of significant contacts with the matter in
co-employees in Alabama. Mississippi dispute. (Auten vs. Auten, 1954)
bars recovery. Alabama makes ER
liable. Carroll files suit in Alabama. 2. Interest Analysis
There can be no recovery in this case.  Looks at the policy behind the laws of
Although it is claimed that the negligent the involved states and the interest each
conduct was done in Alabama, the law state has in applying its own law.
of Mississippi should be applied which  Factual contacts alone do not determine
bars recovery since the injury was outcome of the case UNLESS they
sustained in that state and such injury reflect a state policy which would be
created the cause of action. It is the law advanced by the application of the
of the place of the LAST ACT necessary substantive state law.
to complete the cause of action.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter III. CHOICE of LAW
 Court determines whether the case

involves APPARENT, TRUE or FALSE 5. Leflar’s Choice Influencing Considerations
conflict. (BOPIS)
a. True Conflict – If there is an a. Predictability of results;
apparent conflict, the court takes a b. Maintenance of interstate and
second look on the policies and international order;
interests of each state. If both have c. Simplification of the judicial task;
real interests in applying their law, d. Application of the better rule of law;
then apparent conflict is a true e. Advancement of the forum’s
conflict. governmental interests
b. False Conflict – If only one state has
an actual interest in having its law
applied and the failure to apply the
other state law will not impair its
policy
 Criticisms:
a. Conflicts cases were ordinarily
concerned only with private and not
governmental interests.
b. ii.Not all state legislatures publish
reports that explain background and
purpose of laws, thus courts are left
to speculate.
 Illustration:
B and J, NY residents, met a car
accident in Ontario thru J’s fault. B sued
J in NY for damages. Ontario bars
recovery under a guest statute. NY does
not have a similar rule. B should be
allowed to recover. NY had a greater
and more direct interest than Ontario.
NY’s policy is to afford compensation to
a guest tortfeasor host while Ontario’s
policy is to prevent fraudulent collusion
to the prejudice of Ontario defendants
and insurance companies. Ontario had 432
no interest in denying a remedy to a NY

guest against a NY host. (Babcock vs.
Johnson, 1963)
3. Comparative Impairment
 Court weighs conflicting interests and
apply the law of the state whose interest
would be more impaired it its laws were
not followed
4. Trautman’s Functional Analysis

 Looks into the general policies of the
state beyond those reflected in its
substantive law and to policies and
values relating to effective and
harmonious intercourse between states.
 Looks at the policies and considers their
relative weight (“policy-weighing’)
 Considers whether the law of a state
reflects an “emerging” or “regressing”
policy

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter IV. CHARACTERIZATION
 A law on prescription of actions is sui

Chapter IV. Characterization generis in Conflict o Laws in the sense
that it may be viewed either as
I. TYPES OF CHARACTERIZATION procedural or substantive, depending on
II. DEPECAGE the characterization given such a law.
(Cadalin v. POEA Administrator, 1994)
 BORROWING STATUTE: (Asked in 94
CHARACTERIZATION (Asked in ‘94)
BAR EXAMINATIONS)
 The process by which a court at the  Bars the filing of a suit in the forum
beginning of the choice of law process if it is already barred by the statute
assigns a disputed question to an area of limitations in the place where the
of substantive law. cause of action arose
 Characterization of a statute into
I. Types of Characterization procedural or substantive becomes
irrelevant when country of forum
has Borrowing Statute
A. Subject-Matter Characterization  Many states including the
Philippines have passed borrowing
 Classification of a factual situation into a statutes to eliminate forum-
legal category shopping
 Illustration: Principal authorizes a person to  Section 48 of Code of Civil
Procedure: “If the laws of the state
act as his agent in another country. Agent
or country where the cause of
commits a negligent act. The law that will action arose, the action is barred, it
determine the principal’s liability depends on is also barred in the Philippine
the court’s characterization of the case as: Islands.”
a. Contractual: Law of the place where the
contract of agency was entered into; or
b. Tortious: Law of the place where tortious II. Depecage
conduct or injury occurred
 Literally means “to dissect”
B. Substance-Procedure Dichotomy  Different aspects of a case involving a
foreign element may be governed by
 Classification of a factual situation into either different systems of law.
procedural or substantive  Depecage is the process of cutting up the
 It directs the court to the extent it will apply case issue by issue and applying the
foreign law. pertinent laws to the different aspects
 Merits of Depecage: Allows the other
1. If issue substantive: court MAY apply relevant interests of the parties to be
foreign law or forum law addressed; permits the court to arrive at a
2. If issue procedural: court will apply forum functionally sound result without rejecting 433
law the methodology of the traditional approach.

 REASON: It would be too burdensome
and inconvenient on the part of the Illustration: A man dies intestate domiciled in
forum to apply procedural laws of State A and with movable properties in State B.
another country The conflict rules of State A refer to the laws of
3. Two issues whose classification (as the domicile to determine how the man’s estate
procedural or substantive) is debatable: should be divided. The intestate law of State B
a. Statute of Frauds gives the widow a definite share in the estate of
 Substantive: if it forbids the creation of the deceased. But the determination of the WON
obligation (e.g., void contracts) the woman who claims a share in the estate is a
 Procedural: if it forbids the enforcement “wife” is referred to family law, not the laws of
of the obligation(e.g., unenforce-able
succession.
contracts, Art. 1403 of Civil Code)
b. Statutes of Limitations
 Procedural: traditionally classified as Application of Depecage in the case:
procedural because they only bar the  Law governing movable properties and
legal remedy without impairing the successional rights of spouse: embody
substantive right involved. substance of claim
 Substantive: when limitation is directed  Validity of marriage: affects solution
to a newly created liability so because it answers a preliminary or
specifically as to warrant saying that it incidental question.
qualified the right. (SPECIFICITY TEST)

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CIVIL LAW REVIEWER Chapter V. RENVOI
B. Accept the Renvoi

Chapter V. Renvoi  The court may refer not just to another
(Asked in ‘97 BAR EXAMINATIONS) state’s internal law but to the whole law
which includes choice of law rules
I. DEFINITION applicable in multi-state cases.
II. WAYS OF DEALING WITH RENVOI  Internal Law of the forum court or a third
state is applied.
I. Definition  Has the same effect as applying
Single Renvoi
A. Definition  Aznar vs. Garcia, (1963): Art. 16 of the
 A procedure whereby a jural matter Philippine Civil Code provides that the
presented is referred by the conflict of national law of the decedent governs the
laws rules of the forum to a foreign validity of his testamentary dispositions.
state, the conflict of laws rule of which, Such national law means the conflict of
in turn, refers the matter to the law of the laws of the California Code, which
forum or third state. authorizes the reference or return of the
 Does not apply to a false conflict question to the law of the testator’s
problem domicile. The conflict of laws rule in
 Remission: reference is made back to California refers back the case, when a
the law of the forum decedent is not domiciled in California,
 Transmission: reference to a third state to the law of his domicile (the Philippines
in CAB). The Philippine court must apply
B. Usefulness its own law as directed in the conflict of
 Used to avoid unjust results laws rule of the state of the decedent.
C. Criticisms C. Desistance or Mutual Disclaimer

1. If both courts follow the same theory, there  The forum court upon reference to
would be no end to the case since the courts another state’s law sees that such law is
would be referring it back to each other. limited in application to its own national
2. Courts may be unnecessarily burdened with and has no provision for application to a
the task of identifying the choice of law rules non-national.
of another state.  The same result as the acceptance of
renvoi but the process used by the
Illustration: forum court is to desist applying the
foreign law.
 Internal Law of the forum court or a third
STATE A STATE B state is applied.
434
D. Foreign Court Theory

Internal Internal The forum court would assume the same
Law Law position the foreign court would take were it
litigated in the foreign state.
Conflict Conflict
Laws Laws
There is Renvoi through Remission.
II. Ways of Dealing with Renvoi
A. Reject the Renvoi

 Conflict Rules of the forum court refer
the case only to the INTERNAL LAW of
another state.
 Internal Law of the foreign state is
applied by the forum court.

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CIVIL LAW REVIEWER Chapter VI. NOTICE and PROOF of FOREIGN LAW
Chapter VI. Notice and Proof of Foreign II. Exceptions to the Application of
Law Foreign Law
I. PROOF OF FOREIGN LAW 1. Local law expressly so provides

II. EXCEPTIONS TO THE APPLICATION OF 2. Failure to plead and prove the foreign law or
FOREIGN LAW judgment
3. Exceptions to the rule of comity (4P-FAG-
I. Proof of Foreign Law UV):
o The foreign law is contrary to an
IMPORTANT PUBLIC POLICY of the
General Rule: Foreign law must be pleaded and forum
proved as a fact o The foreign law is PROCEDURAL in
 The party whose cause of action or nature
defense depended on the foreign law o The foreign law is PENAL in nature
has the burden of proving the foreign o The case involves real or personal
law. PROPERTY SITUATED IN THE
FORUM (Lex Situs)
Exception: Court may take judicial notice of o The issue involved iin the enforcement
foreign laws which are already within its of foreign claim is FISCAL or
ACTUAL KNOWLEDGE such as when: ADMINISTRATIVE
 they are well and generally known OR o The foreign law is contrary to GOOD
 they have been actually ruled upon in MORALS (contra bonus mores)
other cases before it and none of the o The application of foreign law will work
parties concerned claim otherwise UNDENIABLE INJUSTICE to citizens of
(PCIB v. Escolin, 1974) the forum
o The application of foreign law might
Foreign law proved by— endanger the VITAL INTERESTS of the
1. an OFFICIAL PUBLICATION of the law; OR state
2. a COPY of the law attested by the officer
having the legal custody of the record, or by
his deputy.
 If such record is not kept in the
Philippines, it must be accompanied by
a certificate that such officer has the
custody
3 Alternatives in case of failure to plead and

prove foreign law— 435
1. DISMISS the case for failure to establish a

cause of action
2. Apply FORUM LAW, conclude that parties
acquiesce to its application.
3. PROCESSUAL PRESUMPTION (Asked in
’85, ’86, ’87, ’88,‘89, ’90, ’91, ’92, ’93 and
‘94)
 Forum presumes that the foreign law is
the same as the forum law.
Factors in deciding whether to apply

domestic law or decide against the party who
has the burden of proving the contents of
foreign law—
1. degree of PUBLIC INTEREST involved
2. ACCESSIBILITY of the foreign law
materials to the parties
3. probability that the plaintiff is merely
FORUM-SHOPPING
4. SIMILARITIES between the forum law and
foreign law

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CIVIL LAW REVIEWER Chapter VII. NATIONALITY
The Constitution enumerates who are

Chapter VII. Nationality FILIPINO CITIZENS—
I. DETERMINATION OF NATIONALITY Sec.1, Art IV. The following are citizens of the
II. PROCEDURE FOR NATURALIZATION Philippines:
III. LOSS OF PHILIPPINE CITIZENSHIP (1) Those who are citizens of the Philippines at the
IV. PROBLEMS IN APPLYING THE NATIONALITY time of the adoption of this Constitution;
PRINCIPLE (2) Those whose fathers or mothers are citizens of
the Philippines;
 Most civil law countries such as the (3) Those born before January 17, 1973, of Filipino
Philippines follow the NATIONAL LAW mothers, who elect Philippine citizenship upon
THEORY: (Asked in 98, 04, BAR reaching the age of majority; and
EXAMINATIONS) (4) Those who are naturalized in accordance with
law.
 It is the nationality or citizenship of the
individual, which regulates the following: 1. Natural-Born Citizens
 Civil status  DEFINITION: Those who are citizens of
 Capacity the Philippines without having to perform
 Condition any act to acquire or perfect citizenship.
 Family rights and duties  Two principles:
 Laws on Succession  JUS SOLI – looks to the PLACE of
 Capacity to succeed BIRTH to determine one’s
nationality
 According to the Supreme Court, it is a  JUS SANGUINIS
conflict of laws theory by virtue of which - means rule of DESCENT OR
jurisdiction over the particular subject matter BLOOD
affecting a person is determined by the - Principle followed in the
latter’s nationality. (Ellis vs. Republic, 1963) Philippines
2. Citizens by Naturalization
 In the Philippines, the nationality principle is  NATURALIZATION: confers to an
expressed in Art. 15 of the Civil Code as alien a nationality after birth by any
follows: means provided by law.
 In the Philippines, this is done by
Article 15, Civil Code. Laws relating to family rights judicial method under CA No. 73 as
and duties, or to status, condition and capacity of amended by RA 530.
persons are binding upon citizens of the Philippines
even though living abroad.
II. Procedure for Naturalization 436
I. Determination of Nationality

[NOTE: N.B. This is a proper subject matter of
Each state has the prerogative and authority to Political Law but is important to know as
determine by its own municipal law who are its background if the Conflicts question asks you to
nationals or citizens. decide the Choice of Law involving nationality.
This was asked in the bar exams as part of
The Hague Convention on Conflict of National PRIL.]
Laws states this principle in the following
provisions: Qualifications for Naturalization—
1. Article 1. It is for each State to determine 1. Must not be less than 21 years old on the
who are its nationals. This law shall be date of the hearing of the petitions
recognized by other States insofar as it is 2. Resided in the Philippines for a continuous
consistent with international convention, period of not less than 10 years
international customs, and the principles of
law generally recognized with regard to EXCEPTION: may be reduced to 5 years in
nationality. the ff. cases:
2. Article 2. Any question as to whether a a. Honorably held office under the
person possesses the nationality of a Government or any of its subdivisions
particular State shall be determined in b. Established a new industry or introduced
accordance with the law of that State. a useful invention
c. Married to a Filipino woman/man

lOMoARcPSD|3291925
d. Engaged as a teacher in a public/private III. Loss of Philippine Citizenship

school, not exclusive for a particular
nationality, for 2 years
A Filipino citizen may lose his citizenship in the
e. Born in the Philippines
following ways:
1. By NATURALIZATION in foreign countries;
3. Of good moral character, believes in the
2. By EXPRESS RENUNCIATION of
Constitution, and conducted himself in a
citizenship;
proper and irreproachable manner during
3. By subscribing to an OATH of
the entire period of his residence
ALLEGIANCE to support the constitution or
4. Own real estate in the Phils. worth not less
laws of a foreign country upon reaching 21
than P5,000 or have a lucrative trade,
years of age or more, subject to certain
profession or lawful occupation
exceptions;
5. Must be able to speak and write English or
4. By rendering service to, or accepting
Spanish and any one of the principal
COMMISSION IN THE ARMED FORCES of
Philippine languages
a foreign country, subject to certain
6. Enrolled his minor children in any of the
exceptions;
public or private schools recognized by the
5. By having been declared by competent
Bureau of Private Schools where Phil.
authority, a DESERTER of the Phil. armed
history, government and civics are taught
forces in time of war, unless pardoned or
during the entire period of the residence
granted amnesty
required of him, prior to the hearing of his
6. A WOMAN, who upon her MARRIAGE TO
petition
A FOREIGNER, if by virtue of the laws in
force in her husband’s country, she
Disqualifications for Naturalization—
ACQUIRES HIS NATIONALITY; and
1. Convicted of a crime involving moral
7. By CANCELLATION of the certificate of
turpitude
naturalization for the ff. reasons:
2. That the applicant’s state of origin does
i. Certificate was obtained fraudulently or
not grant reciprocal rights to Filipino
illegally
citizens at the time of the hearing of his
ii. Within 5 years of issuance of certificate,
application
returns to his native country or foreign
country to establish a permanent
Procedure for Naturalization—
residence therein;
1. DECLARATION OF INTENT 1 year prior to
- Remaining for more than 1 year in
the filing of the petition, unless the applicant
his native country; or
is exempted
- Two years in any foreign country,
EXEMPTIONS:
considered prima facie evidence of
a. Persons born in the Philippines and who
intention of taking up his permanent 437
have received their primary and
residence
secondary education in schools
iii. Petition made on an invalid declaration of

recognized by the Government here and
intention
are not limited to any race or nationality
iv. Minor children failed to graduate from a
b. Resided continuously in the Philippines
public or private schools recognized by
for 30 years or more
the Bureau of Private Schools where Phil.
c. Widow and minor children of an alien
history, government and civics are
who declared his intention to become a
taught, through the fault of their parents
citizen and dies before he is actually
v. Naturalized citizens has allowed himself
naturalized
to be used as a dummy
2. PETITION FOR NATURALIZATION
NOTE: A judgment directing the issuance of
3. PUBLICATION in the Official Gazette or
certificate of NATURALIZATION IS A MERE
newspaper of general circulation
GRANT OF POLITICAL PRIVILEGE, and that
4. HEARING
neither estoppel nor res judicata may be invoked
5. If the petition is approved, there will be a
to bar the State from initiating an action for its
REHEARING two years after the
cancellation
promulgation of the judgment awarding
naturalization
6. Taking of the OATH of ALLEGIANCE

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IV. Problems in Applying the Nationality

Principle
1. Dual or Multiple Citizenship

 Since each state determines its own
nationals, it is possible that an individual
may be CLAIMED AS A NATIONAL
OF TWO OR MORE STATES.
 In the case of Nottebohm (1955), the
ICJ applied the principle of EFFECTIVE
NATIONALITY to determine the rights
of an individual who may claim multiple
nationality
 DEFINITION: a genuine bond of
attachment between the individual
and the State
NOTE: The Philippine Constitution

discourages dual or multiple citizenship as
inimical to the national interest and shall be
dealt with by law.
2. Statelessness
Two senses:
a. DE JURE statelessness: A person has
been stripped of his nationality by his
former government without having an
opportunity to acquire another
b. DE FACTO statelessness: A person
possessed of a nationality but whose
country does not give him protection
outside its own territory (refugees)
NOTE: the 1951 Geneva Convention of the

Status of Refugees and the UN Conference on
the Elimination or Reduction of Future
Statelessness was convened to reduce 438
statelessness. It provides:

 Conditions such as marriage, divorce,
adoption, naturalization, expatriation,
would not cause an individual to lose his
nationality upon the risk of being stateless
 States cannot deprive their nationals of
their identity as punishment or as
instrument of discrimination
 Jus sanguinis country shall grant its
nationality to a person born within its
territory, if he would otherwise be stateless
 Jus soli country shall grant its nationality
to a person who would otherwise be
considered stateless when one of his
parents is a citizen of the contracting
state.
NOTE: As long as stateless persons possess all

of the qualifications, they can be naturalized as
Philippine citizens without the requirement of
reciprocity.

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CIVIL LAW REVIEWER Chapter VIII. DOMICILE
C. Kinds of Domicile
Chapter VIII. Domicile 1. Domicile of Origin
 A person’s DOMICILE AT BIRTH
I. DOMICILE
II. COMPARATIVE MERITS AND DEMERITS OF LEGITIMATE CHILD ILLEGITIMATE CHILD
DOMICILE AND NATIONALITY
Follow the FATHER’s Follow the MOTHER’s
domicile domicile
I. Domicile
2. Domicile of Choice
A. Municipal Law/Philippine Law Definition: i. A person’s VOLUNTARY
DOMICILE
PERSON DOMICILE  The place freely chosen by a
Natural persons Art. 50. For the exercise person sui juris (of full age and
of civil rights and the capacity)
fulfillment of civil ii. To acquire it, there must be a
obligations, the domicile concurrence of:
of natural persons is the
PLACE OF THEIR
 ACTUAL RESIDENCE; and
HABITUAL REDENCE.  ANIMO MANENDI - intent to
Juridical persons Domicile is determined make it one’s home
by the LAW CREATING
OR RECOGNIZING IT. Domicile of Domicile of
DISTINCTION
 In the absence Origin Choice
thereof, place where As to: Stronger As compared to
legal representation condition presumption in domicile of
or place of business necessary for favor of its origin, less
is. its continuance presumption in
abandonment favor of its
 CONFLICTS of LAW DEFINITION NOT lost by continuance
(Restatement): mere
abandonment
The place with which a person has a and remains until
SETTLED CONNECTION for certain replaced by a
legal purposes, either because: domicile of
 His home is there; or choice
 Place is assigned to him by law As to: capacity Presumed to be Deemed
for revival revived once the extinguished by
 To acquire a domicile, there must be a domicile of removal of
concurrence of TWO ELEMENTS: choice is given intent even prior
up and before a to the
i. INTENTION to make it one’s 439
new one is acquisition of a
domicile; and acquired new domicile

ii. PHYSICAL PRESENCE (reverter or
revival doctrine)
Residence, on the other hand, simply
requires bodily presence of an inhabitant 3. Constructive Domicile
in a given place.  Domicile assigned by operation of
law to persons legally incapable of
B. General Rules on Domicile choosing their own domicile:
1. No person shall be without domicile  Minors
 A person’s domicile of origin prevails  Domicile automatically
until he acquires anew domicile changes when their father’s
2. A person cannot have two simultaneous domicile changes
domiciles for a given purpose or a given  Take the domicile of their
time under the law of a particular state mother upon their father’s
3. Domicile establishes a connection death
between a person and a particular  Mentally disabled
territorial unit  If capable of understanding
4. The burden of proving a change of his act and its
domicile is on the person alleging it consequences, he may be
able to acquire a domicile of
choice although he may not

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CIVIL LAW REVIEWER Chapter VIII. DOMICILE
be considered competent b. suitable for countries with a federal

enough to enter into all system
aspects of civil life.
 Married women 2. Demerits
a. not ascertainable without first resorting
D. Special Problems in Domicile to the courts to establish whether or not
there is animo manendi
1. People kept under physical or legal b. concept not clear-cut--- differs widely
compulsion with some states distinguishing between
 Military personnel residence and domicile or attributing
 Prisoners different meanings of domicile for
 Persons with disabilities who are different purposes
confined in institutions c. if domicile of origin given much weight,
connection attenuated
MODERN VIEW: A person under
compulsion should not be barred from
proving that he intended to establish
permanent abode in the same place,
even after compulsion has been
removed
2. Married women seeking to acquire a

separate domicile from her husband
Art. 69, Family Code. The husband and wife shall fix
the family domicile. In case of disagreement, the court
shall decide. The court may exempt one spouse from
living with the other if the latter should live abroad or
there are other valid and compelling reasons for such
exemption…
 MODERN VIEW: Dispenses with any

presumption that the wife’s domicile is
the same as her husband’s.
II. Comparative Merits and Demerits of

Domicile and Nationality 440
A. Nationality

1. Merits
a. logical since lawmakers considered the
qualities of its citizens in making the
laws
b. easily verifiable from documents
2. Demerits
a. does not provide solution with respect to
 stateless persons
 those with multiple nationalities
 states with diverse legal systems
b. person’s ties to his nation may be so
attenuated if he has lived in another
country most of his life
B. Domicile
1. Merits
a. genuine link—adequate basis for him to
exercise rights therein and the state to
impose duties on him

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CIVIL LAW REVIEWER Chapter IX. PRINCIPLES on PERSONAL STATUS and CAPACITY
However, if the fetus had an intra-

Chapter IX. Principles on Personal uterine life of less than 7 months, it is
Status and Capacity not deemed born if it dies within 24
hours after its complete delivery from
I. DEFINITION the maternal womb. [Art. 41, FC]
II. BEGINNING AND END OF PERSONALITY
III. ABSENCE 2. End of personality: DEATH
IV. NAME
a. A declaration of death issued by a
V. AGE OF MAJORITY
VI. CAPACITY competent court is considered valid for
all purposes.
b. Upon death, some of the decedent’s
I. Definition rights and obligations are totally
extinguished, while others are passed
 Includes CONDITION and CAPACITY and on to his successors
more specifically embraces:
1. beginning and end of human personality
2. juridical capacity III. Absence
3. capacity to act
4. family relations
A. Governing Law—
5. succession
Determined by the PERSONAL LAW of the
 Applicable Law individual
1. If Filipino: Philippine Law
B. Three Ways of Dealing with Absence
2. If Alien: Law of nationality or domicile,
1. Rebuttable Presumption that a person is
depending on the law applicable in the
alien’s country dead when he has been absent for a
NOTE: number of years
1. Laws relating to Family rights and 2. Judicially Instigated and established which
duties, Status, Condition or Legal results in legal effect similar to those of
capacity of persons are binding on death
3. A Judicial Decree shall have to be issued
citizens of the Philippines, even though
living abroad [Art. 15, CC] declaring the person dead before legal
2. Status, once established by the personal effects of death take place
law of the party, is given universal
NOTE: Philippine laws follow the rebuttable
jurisdiction. Hence, aliens can sue and
be sued in our courts subject to presumption.
Philippine procedural law even on
matters relating to their status, but the 441
C. Rule under Philippine Law
law to be applied is their personal law.

1. Ordinary Absence [Art. 391, CC]
a. After the absence of 7 years, it being
II. Beginning and End of Personality
unknown whether the absentee still
lives, s/he shall be presumed dead for
A. Governing Law—
The determination of the exact moment all purposes.
personality begins is governed by the b. EXCEPTIONS
PERSONAL LAW of the individual. i. For the purpose of opening his
succession, the absentee is
B. Rule under Philippine Law— presumed dead after 10 years.
1. Beginning of personality: BIRTH ii. If s/he disappeared after the age of
a. Birth determines personality; but the 75 years, 5 years will be sufficient
conceived child shall be considered born c. Computation of Period—
for all purposes that are favorable to it, The computation of the 7 year period
provided it be born later with the begins not from the declaration of
conditions specified by Art. 41, FC. [Art. absence, but from the date on which the
40, FC] last news concerning the absentee is
b. For civil purposes, the fetus is received [Jones v. Hortiguela, 44 Phil
considered born if it is alive at the time it 149]
is delivered from the mother’s womb.

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CIVIL LAW REVIEWER Chapter IX. PRINCIPLES on PERSONAL STATUS and CAPACITY
2. Extraordinary Absence [Art. 391, CC]— VI. Capacity

The following are presumed dead for ALL
purposes, including the division of estate A. General Rule—
among the heirs: (VA-A-D) Determined by PERSONAL LAW; it
a. A person on board a Vessel during a attaches to a person wherever he is
sea voyage, or an Aeroplane which is
missing, who has not been heard of for B. Exceptions
4 years since the loss of the vessel or 1. Liability on Tort—subject to the law of the
aeroplane; place of tort
b. A person in the Armed forces who has 2. Restrictions on the contracting capacity
taken part in war, and has been missing of a married woman—in some jurisdictions,
for 4 years; subject to the law governing the personal
c. A person who has been in Danger of relations between spouses
death under other circumstances and
existence has not been known for 4
years. [Art. 391, CC]
3. Rule for purposes of remarriage [Art. 41, FC]

a. For purposes of remarriage, the spouse
present must first institute a summary
proceeding for the declaration of
presumptive death of the absentee
spouse, without which the subsequent
marriage is void ab initio.
b. The periods under Arts. 390 and 391,
CC have been reduced to 4 and 2 years.
IV. Name
A. Governing Law—
Determined by PERSONAL LAW
B. Rule under Philippine Law

1. No person can change his name or surname
without judicial authority [Art. 376, CC]
2. Recognized justifiable causes for change of
name: 442
a. when the name is ridiculous, tainted with

dishonour, or is extremely difficult to
write or pronounce
b. when the request for change is a
consequence of change of status
c. when the change is necessary to avoid
confusion
d. a sincere desire to adopt a Filipino name
to erase signs of a former nationality
which unduly hamper social and
business life.
NOTE: RA 9048 (Change of first name and
correction of clerical/typographical errors)
V. Age of Majority
A. Governing Law—Determined by
PERSONAL LAW
B. Age of Majority under Philippine Law—
Age of majority is 18 years old [RA 6809]

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CIVIL LAW REVIEWER Chapter X. FAMILY RELATIONS
i. those contracted by any party below

Chapter X. Family Relations 18 years of age even with the
consent of parents or guardians [Art.
I. MARRIAGE 35(1), FC]
II. DIVORCE AND SEPARATION ii. bigamous or polygamous
III. ANNULMENT AND DECLARATION OF
marriages not falling under Art. 41,
NULLITY
IV. PARENTAL RELATIONS FC [Art. 35 (4), FC]
V. ADOPTION iii. those contracted thru mistake of
one contracting party as to the
identity of the other [Art. 35(5), FC]
I. Marriage iv. those subsequent marriage without
recording in the civil registry the
A. Definition judgment of annulment or
declaration of nullity, partition and
Art. 1, FC. Marriage is a special contract of distribution of properties and the
permanent union between a man and a woman delivery of the children’s
entered into in accordance with law for the presumptive legitimes [Art. 35(6),
establishment of conjugal and family life. It is the FC]
foundation of the family and an inviolable social
institution whose nature, consequences, and incidents
v. a marriage contracted by any party
are governed by law and not subject to stipulation, who, at the time of the celebration,
except that marriage settlements may fix the property was psychologically incapacitated
relations during the marriage within the limits provided to comply with the essential marital
by this Code. obligations of marriage, even if such
incapacity becomes manifest only
B. Extrinsic Validity of Marriage after solemnization [Art. 36, FC]
1. Formal Requisites of Marriage under vi. incestuous marriages [Art. 37, FC]
Philippine Law [Art. 3, FC]  marriages between ascendants
a. authority of the solemnizing officer and ascendants of any degree,
b. valid marriage license except in the whether legitimate or
cases provided for in Chapter 2 of Title I illegitimate; and
c. a marriage ceremony which takes place  marriages between brothers and
with the appearance of the contracting sisters, whether of the full or
parties before the solemnizing officer half-blood
and their personal declaration that they vii. void marriages for reasons of
take each other as husband and wife in public policy [Art. 38, FC]
the presence of not less than two  marriages between collateral
witnesses of legal age. blood relatives, whether
legitimate or illegitimate, up to 443
th
2. Determination of Extrinsic Validity the 4 civil degree

 marriages between step-parents
Art. 26, FC. All marriages solemnized outside the and step-children.
Philippines in accordance with the laws in force in the  marriages between the adopting
country where they were solemnized, and valid there parent and adopted child
as such, shall also be valid in this country. xxx  marriages between the surviving
spouse of the adopting parent
Art. 2, Hague Convention. Formal requirements for and the adopted child
marriage are governed by the law of the state of  marriages between the surviving
celebration. spouse of the adopted child and
the adopter
a. GENERAL RULE—  marriages between an adopted
LEX LOCI CELEBRATIONIS (law of the child and a legitimate child of
place of celebration) [Art. 26, FC; Art. 2, the adopter
Hague Convention on Celebration and  marriages between adopted
Recognition of the Validity of Marriages] children of the same adopter
 marriages between parties
b. EXCEPTIONS: The following marriages where one, with the intention to
are void even if valid in the country marry the other, killed that other
where celebrated [Art. 26, FC]: person's spouse, or his or her
own spouse.

lOMoARcPSD|3291925
NOTE:
NOTE: These exceptions put into issue the 1. Rule on Proxy Marriages (Asked in 85-89
capacity of the parties to enter into the marriage BAR EXAMINATIONS)—
and therefore relate to the substantive a. proxy marriages, where permitted by the
requirement for marriage. Since the personal law law of the place where the proxy
of the parties, e.g. the national law of Filipinos, participates in the marriage ceremony,
governs the questions of intrinsic validity of are entitled to recognition in countries
marriages between Filipinos abroad, the above adhering to the lex loci celebrationis
enumerations are exceptions to lex loci rule, at least insofar as formal validity is
celebrationis precisely because they are concerned
controlled by lex nationalii b. internal Philippine law, however, does
not sanction proxy marriages.
C. Intrinsic Validity of Marriage [refers to 2. Consular Marriages—

capacity of a person to marry] Marriages between Filipino citizens abroad
1. Intrinsic validity is determined by the parties’ may be solemnized by a consul-general,
personal law, which may be their consul or vice consul of the Republic of the
domiciliary or national law. Philippines [Art. 10, FC].
NOTE: D. Effects of Marriage

a. Laws relating to Family rights and 1. Personal relations between the spouses
duties, Status, Condition or Legal a. governed by the national law of the
capacity of persons are binding on parties
citizens of the Philippines, even though
living abroad [Art. 15, NCC] NOTE: If the spouses have different
b. When either or both of the contracting nationalities, generally the national law of
parties are citizens of a foreign country, the husband may prevail as long as it is not
it shall be necessary for them before a contrary to law, customs and good morals of
marriage license can be obtained to the forum.
submit a certificate of legal capacity to
contract marriage, issued by their b. Under Philippine law, personal relations
respective diplomatic or consular between the spouses include [Arts. 68,
officials [Art. 21, FC] 70-71, FC]
c. Marriages enumerated under Art. 26(2), i. mutual fidelity
FC are void even if valid in the country ii. respect
where celebrated. iii. cohabitation
iv. support
2. Intrinsic requirements of marriage under v. right of the wife to use the 444
Philippine Law [Art. 2, FC] husband’s family name

a. legal capacity of the contracting parties
who must be male and female; and 2. Property relations
b. consent freely given in the presence of a. The Hague Convention declares that the
the solemnizing officer governing law on matrimonial property
3. The Hague Convention on Validity of is:
Marriages allows a contracting state to i. the internal law designated by the
refuse recognition of the marriage in the ff. spouses before the marriage
3
Cases [CR-M ]: ii. in the absence thereof, the internal
a. one of the parties did not freely Consent law of the state in which the
b. spouses were Related, by blood or spouses fix their habitual residence
adoption b. Rule under Philippine law [Art. 80, FC]
c. one of the parties did not have the (Asked in ’03 BAR EXAMINATIONS)
Mental capacity to consent i. In the absence of a contrary
d. one of the spouses was already Married stipulation in the marriage
e. one of the parties has not attained the settlements, the property relations of
Minimum age, nor acquired the the spouses shall be governed by
necessary dispensation Philippine laws, regardless of the
place of the celebration of the
marriage and their residence.

lOMoARcPSD|3291925
ii. Rule is inapplicable: Where a marriage between a Filipino citizen

 if both spouses are aliens and a foreigner is validly celebrated and a
 with respect to the extrinsic divorce is thereafter validly obtained abroad
validity of the contracts affecting by the alien spouse capacitating him or her
property not situated in the to remarry, the Filipino spouse shall have
Philippines and executed in the capacity to remarry under Philippine law
country where the property is
located NOTE: In the case of Republic v Obrecido,
 with respect to the extrinsic G.R. No. 154380 (2005), the Supreme Court
validity of contracts entered into interpreted the exception in Art. 26(2), FC as
in the Philippines but affecting applying to valid marriages between two Filipino
property situated in a foreign citizens, where one party is later naturalized as a
country whose laws require foreign citizen and obtains a valid divorce decree
different formalities for its capacitating him or her to remarry.
extrinsic validity.
c. Doctrine of Immutability of C. VALIDITY OF FOREIGN DIVORCE

Matrimonial Property Regime—The BETWEEN FOREIGNERS (Asked in 75-79,
change of nationality on the part of the 80-84, 85-89, 95-99,00-04, 05-08 BAR
husband or wife does not affect the EXAMINATIONS)—
original property regime EXCEPT when 1. A foreign divorce will be recognized in all
the law of the original nationality itself contracting states if, at the date of the
changes the marital regime, hence, the institution of the proceedings [Hague
property regime has to change Convention on the Recognition of Divorce
accordingly. and Legal Separation]:
a. either spouse had his habitual residence
there;
II. Divorce and Separation b. both spouses were nationals of that
state; or
c. if only the petitioner was a national, he
A. Rule under the Hague Convention (Asked
should have his habitual residence there
in 94 BAR EXAMINATIONS)—
The granting of divorce or separation must
2. While there is no provision of law requiring
comply with the national law of the spouses
Philippine courts to recognize a foreign
and lex fori (law of the place were the
divorce decree between non-Filipinos such
application for divorce is made)
will ne recognized under the principle of
international comity, provided that it does
B. Divorce Decrees Obtained by Filipinos not violate a strongly held policy of the 445
1. General Rule: Decrees of absolute divorce Philippines.

obtained by Filipinos abroad have no validity
and are not recognized in Philippine
Jurisdiction.
III. Annulment and Declaration of Nullity
NOTE: Statutory Bases
a. Laws relating to Family rights and A. Jurisdiction to Annul
duties, or to the Status, Condition and 1. vested in the court of the domicile of the
Legal capacity of persons are binding parties
upon citizens of the Philippines, even 2. jurisdiction over the non-resident defendant
though living abroad [Art. 15, CC] is not essential
b. Prohibitive laws concerning persons,
their acts or property, and those which B. Governing Law
have for their object public order, public 1. Lex loci celebrationis—determines the
policy and good customs, shall not be consequences of any defect as to form
rendered ineffective by laws or 2. In general, the same applies with reference
judgments, or by determinations or to substantive or intrinsic validity. But with
conventions agreed upon in a foreign regard to capacity of the parties to marry,
country. [Art. 17(3), CC] national law is determinative.
2. EXCEPTION: Art. 26(2), FC—

lOMoARcPSD|3291925
IV. Parental Relations k. his government allows the adoptee to

enter his country as his adopted
son/daughter
A. Determination of Legitimacy of a Child
1. Legitimacy: personal law of the parents,
2. The requirement on residence and
which may either be their domicile or
certificate of qualification may be waived for
nationality
the following:
2. In the Philippines
a. A former Filipino citizen who seeks to
a. the legitimacy of the child is governed by th
adopt a relative within the 4 degree of
the national law of the parents
consanguinity or affinity; or
b. if parents belong to different
b. One who seeks to adopt the legitimate
nationalities, legitimacy of the child is
son/daughter of his/her Filipino spouse;
governed by the national law of the
or
father
c. One who is married to a Filipino citizen
c. personal law of the illegitimate child is
and seeks to adopt jointly with his/her
the mother’s personal law th
spouse a relative within 4 degree of
consanguinity or affinity of the Filipino
B. Parental Authority Over the Child—
spouse
Personal law of the father controls and
rights and duties of parents and child
3. The requirement of 16 years difference
between the adopter and the adoptee may
NOTE: Reference to the personal law of the
be waived if the adopter is:
father may result in joint exercise of parental
a. The biological parent of the adoptee
authority over the property of the child by the
b. The spouse of the adoptee’s parent
father and mother; or, in the case on the
illegitimate child, to the mother alone
C. Inter-country Adoption
1. Definition—
A socio-legal process of adopting a Filipino
V. Adoption child by a foreigner or a Filipino citizen
(Asked in 75-79, 95-99, 00-04, 05-08 BAR permanently residing abroad where the
EXAMINATIONS) petition is filed, the supervised trial custody
is undertaken, and the decree of adoption is
A. Definition issued outside the Philippines.
The act by which relations of paternity and 2. This is an alternative means of childcare if
filiation are recognized as legally existing the child cannot be cared for in any suitable
between persons not so related by nature manner in the Philippines
B. Domestic Adoption Act of 1998 NOTE: Adoption is one of the ways prescribed 446
1. An alien may adopt, provided he is: by law for the acquisition of Filipino citizenship

a. of legal age
b. in possession of all civil capacity and D. Effects of Adoption
legal rights Two different legal orders:
c. of good moral character 1. If the adopters’ personal law applied—same
d. no conviction of any crime involving law governs the effects of the adoption
moral turpitude 2. If the personal law of the child determined
e. emotionally and psychologically capable the creation of the legal relationship—such
of caring for children law will cease and yield to the personal law
f. at least 16 years older than the adoptee of the adopting parents
g. in a position to support and care for his
children
h. his country has diplomatic relations
i. residence in the Philippines for at least 3
continuous years prior to the filing of the
application for adoption and maintains
such residence until the adoption decree
is entered
j. certificate of legal capacity to adopt in
his country to be issued by his
diplomatic or consular office; and

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XI. PROPERTY
contract is the loan while the mortgage of

Chapter XI. Property the land is only an accessory
a. Mortgage—Lex Situs
I. CONTROLLING LAW—LEX SITUS/LEX REI b. Loan Contract—rules on ordinary
SITAE contracts
II. EXCEPTIONS TO LEX SITUS/LEX REI SITAE
A. TRANSACTIONS NOT AFFECTING C. Intestate and Testamentary Succession—
TRANSFER OF TITLE OR OWNERSHIP
OF LAND
Intestate and testamentary successions
B. CONTRACTS WHERE REAL PROPERTY shall be regulated by the national law of the
OFFERED AS SECURITY decedent, with respect to the following [Art.
C. INTESTATE AND TESTAMENTARY 16(2); Art. 1039, NCC]
SUCCESSION a. Order of succession
D. POLICY-CENTERED APPROACH b. Amount of succession rights
III. SITUS OF CERTAIN PROPERTIES c. Intrinsic validity of the testamentary
A. SITUS OF PERSONAL PROPERTY FOR provisions
TAX PURPOSES
d. Capacity to succeed
B. SITUS OF MONEY
C. SITUS OF DEBTS
D. SITUS OF CORPORATE SHARES D. Under a Policy-centered Approach
E. PATENTS, TRADEMARKS, TRADE NAME  Forum court is not bound to look to the law
AND COPYRIGHT of the situs when the situs of the movable
F. GOODS TRANSPORTED BY COMMON property is insignificant or accidental
CARRIERS  Questions relating to the validity and effect
of the transfer of the movable property are
governed by the law of the place of
I. Controlling Law—Lex Situs/Lex Rei principal use
Sitae  Where the issue involves considerations
other than the validity and effect of the
A. General Rule: Real as well as personal
transfer itself, governing law is the law of
property is subject to the law of the country
the state which has real interest
where it is situated [Art. 15, NCC]
B. Application of the Doctrine of Lex

Situs/Lex Rei Sitae III. Situs of Certain Properties
1. The capacity to transfer or acquire property
is governed by Lex Situs. A. Situs of Personal Property for Tax
Purposes—
NOTE: Transfer of property to a foreigner The principle of mobilia sequuntur personam
who subsequently became a Filipino citizen cannot be applied to limit the right of the
447
shall be recognized [Llantino v Co Liong

state to tax property within its jurisdiction. It
Chong] [Asked in 00-04, BAR yields to established facts of legal
EXAMINATIONS] ownership, actual presence and control
elsewhere, and cannot be applied if it would
2. The formalities of a contract to convey result in patent injustice [Wells Fargo Bank
property are governed by Lex Situs and Union Trust Co. v. CIR, 70 Phil 325
(1940)]
II. Exceptions to Lex Situs B. Situs of Money—

In Leon v. Manufacturers Life Insurance Co.,
90 Phil 459 (1951), the Supreme Court held
A. Transactions Not Affecting Transfer of that the funds in question were outside the
Title or Ownership of Land— jurisdiction of Philippine courts, it having
Where the transaction does not affect been endorsed in an annuity in Canada
transfer of title to or ownership of the land: under a contract executed in that country.
Lex Intentionis or Lex Voluntatis
C. Situs of Debts—
B. Contracts where Real Property Offered The debt is located where the debtor is
as Security— located because it is where he can be sued
In contracts where real property is offered by and the debt collected.
way of a security for the performance of an
obligation such as loan, the principal

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XI. PROPERTY
D. Situs of Corporate Shares—

1. The situs of shares of stock of a corporation
is considered to be at the domicile of the
corporation.
2. There is a distinction between the situs of
shares of stock and the situs of the income
derived from the sale or exchange of such.
[CIR v Anglo California Bank, G.R. No. L-
12476(1960)]
E. Patents, Trademarks, Trade Name and

Copyright—
1. Union Convention for the Protection of
Industrial Property: a trade name shall be
protected in all countries of the Union,
without the obligation of filing of registration,
whether or not it forms part of the trade
name.
2. RA 8923 (Intellectual Property Code): Any
foreign corporation which is a national or
domiciliary of a country which is a party to a
convention, treaty or agreement relating to
intellectual property rights to which the
Philippines is also a party or extends
reciprocal rights to our nationals by law shall
be entitled to benefits to the extent
necessary to give effect to any provision of
such convention.
F. Liability of the Common Carrier for Loss,

Destruction and Deterioration of Goods
Transported—
Law of Destination
1. The law of the country to which the
goods are to be transported shall govern
the liability of the common carrier for
their loss, destruction or deterioration 448
[Art. 1753, NCC]

2. The law of the country of destination
applies even if the goods never reach
the destination, but does not apply if the
goods were never transported
3. If the country of destination is the
Philippines, it is Philippine internal law
on loss, destruction, or deterioration that
must govern—the Civil Code principally,
and the Code of Commerce and special
laws like the Carriage of Goods by Sea
Act, suppletorily.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XII. CONTRACTS
Chapter XII. Contracts B. Lex Loci Solutionis

1. Law of the place of performance governs
I. EXTRINSIC VALIDITY OF CONTRACTS 2. Merit—Always connected to the contract in a
II. INTRINSIC VALIDITY OF CONTRACTS significant way
A. LEX LOCI CONTRACTUS 3. Demerit—Not helpful when the contract is
B. LEX LOCI SOLUTIONIS
performed in 2 or more states with
C. LEX LOCI INTENTIONIS
III. CAPACITY TO ENTER INTO CONTRACTS conflicting laws
IV. CHOICE OF LAW ISSUES
A. CHOICE OF FORUM CLAUSE C. Lex Loci Intentionis
B. CONTRACTS WITH ARBITRATION 1. Law intended by the parties
CLAUSE 2. Basis—
C. ADHESION CONTRACTS The contracting parties may establish such
D. SPECIAL CONTRACTS stipulations, clauses, terms and conditions
V. LIMITATIONS TO CHOICE OF LAW as they may deem convenient, provided
VI. APPLICABLE LAW IN THE ABSENCE OF
EFFECTIVE CHOICE
they are not contrary to law, morals, good
customs, public order, or public policy [Art.
1306, CC]
I. Extrinsic Validity of Contracts 3. May be express or implied
a. Express—when the parties stipulate that
General Rule: Lex Loci Celebrationis the contract be governed by a specific
The forms and solemnities of contracts xxx law, such law will be recognized unless
shall be governed by the laws of the country there are cogent reasons for not doing
in which they are executed [Art. 17, CC] so.
b. Implied
NOTE: i. Based on the contemporaneous and
1. Contracts Before Diplomatic/ Consular subsequent acts of the parties
Officials: The solemnities established by ii. Often upheld with reference to the
Philippine laws shall be observed with rule of validity of contracts which
respect to contracts executed before presumes that the parties
diplomatic or consular officials of the contemplate to enter into a valid
Republic of the Philippines in a foreign contract
country [Art. 17(2), FC]
2. Contracts Entered Into by Letter/
Cablegram, etc.: A contract accepted by III. Capacity to Enter Into Contracts
letter or cablegram is presumed to have
been entered into the place where the offer Determined by the personal laws of the 449
was made. [Art. 1319(2),CC] contracting parties

NOTE: Laws relating to Family rights and
II. Extrinsic Validity of Contracts duties, Status, Condition or Legal capacity
of persons are binding on citizens of the
Three possible laws: Philippines, even though living abroad [Art.
A. Lex Loci Contractus (Asked in 95, 02 BAR 15, NCC]
EXAMINATIONS)
1. Law of the place where the contract is made
2. Merits IV. Choice of Law Issues in Conflicts
a. Relative ease in establishing Contracts Cases
b. Certainty and stability
3. Demerit—Unjust results when place of
A. Choice of Forum Clause
making entirely incidental
1. A case arising from a contract will be
litigated in the forum chosen by the parties if
NOTE: To determine where the contract is
the choice of forum clause specifically
made, we look to the place where the last act is
identifies it as the only venue
done which is necessary to bring the binding
2. When there is no fraud or overreaching, and
agreement into being so far as the acts of the
there is no showing that the choice-of-forum
parties are concerned.
clause would be unreasonable and unjust,
the clause must be given effect

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XII. CONTRACTS
B. Contracts with Arbitration Clause— V. Limitation Choice of Law

An arbitration clause, stipulating that the (Asked in 90-94 BAR EXAMINATIONS)
arbitral award of an arbitral panel in a
foreign country is FINAL and BINDING, is 1. Cannot be a law which has NO
not contrary to public policy. It does not oust CONNECTION at all with the transaction or
our courts of jurisdiction as the international the parties
arbitral award, the award of which is not 2. LAW AS CHANGED will govern EXCEPT if
absolute and without exceptions, is still the change is so revolutionary that it was
judicially reviewable under certain conditions never contemplated by the parties
provided for by the INCITRAL Model Law on 3. Choice of law should not be interpreted to
ICA as applied and incorporated in RA 9285 OUST THE JURISDICTION which the court
(Korea Technologies Co., Ltd. V Lerma, has already acquired over the parties and
2008) the subject matter.
4. Cannot contract away provisions of law
C. Adhesion Contracts especially peremptory provisions heavily
1. Adhesion contracts are not entirely impressed with PUBLIC INTEREST
prohibited. The one who agrees to the 5. COGNOVIT CLAUSE (confession of
contract is in reality free to reject it entirely; if judgment) valid only if the parties were of
he adheres, he gives his consent. equal bargaining power and the defendant
2. It is void if there is UNDUE ADVANATGE on agreed to it voluntarily.
the part of the dominant party
3. Any ambiguity is construed strictly against
the drafter VI. Applicable Law in the Absence of
Effective Choice
D. Special Contracts
1. Sale or barter of goods: lex situs 1. Law of the place of the MOST
2. Simple loan granted by financial institutions: SIGNIFICANT RELATIONSHIP with the
law of the permanent place of business contract as a whole or with a specific issue
3. Loan granted by a private individual or arising therefrom
where the subject matter of the loan is 2. Factors to consider
personal: law of the place where the loan a. Place of contracting
was obtained b. Place of negotiating
4. Pledge, Chattel Mortgage, Antichresis: Lex c. Place of performance
Situs d. Situs of the subject matter of the
5. Carriage of Goods by Sea contract
a. The law of the country to which the e. Parties’ domicile, residence, nationality,
goods are to be transported shall govern place of incorporation, place of business 450
the liability of the common carrier for f. Place under whose local law the

their loss, destruction or deterioration contract will be most effective
[Art. 1753, NCC]
b. The law of the country of destination
applies even if the goods never reach
the destination, but does not apply if the
goods were never transported
c. If the country of destination is the
Philippines, it is Philippine internal law
on loss, destruction, or deterioration that
must govern—the Civil Code principally,
and the Code of Commerce and special
laws like the Carriage of Goods by Sea
Act, suppletorily.
6. International Air Transportation: Warsaw
Convention

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XIII. SUCCESSION
Chapter XIII. Succession II. Intrinsic Validity

Intestate and testamentary successions shall be
regulated by the national law of the decedent,
I. Extrinsic Validity
II. Intrinsic Validity with respect to the following [Art. 16(2); Art.
III. Interpretation of Wills 1039, NCC]
IV. Revocation 1. Order of succession
V. Probate 2. Amount of successional rights
VI. Administration of Estates 3. Intrinsic validity of the testamentary
VII. Trusts provisions
4. Capacity to succeed
I. Extrinsic Validity (Arts. 17, 815-817, CC)

(Asked in 75-79, 90-94, 95-99 BAR III. Interpretation of Wills
EXAMINATIONS) Governed by the National Law of the
decedent
PLACE OF
APPLICABLE LAW
EXECUTION
IV. Revocation
Philippines Philippine Law
Filipino Testator
Foreign 1. law of the place where

Country he may be (lex loci TESTATOR APPLICABLE LAW
celebrationis) [Art
Will is revoked in
815, CC]
the Philippines
Philippine
2. Philippine law [see III Domiciliary
Tolentino 117]
Philippine Law
Philippines 1. Philippine Law [Art. 17, Non-domiciliary

CC] [Art. 829, CC]
2. law of the country in
which he is a citizen or 1. Philippine Law
Will is revoked in a Foreign
subject [lex nationali] Philippine 2. Law of the place of

(Art. 817, NCC) Domiciliary revocation (lex loci
actus)
Alien Testator
1. law of the place

Country
Foreign 1. law of the place in where the will was

Country [Arts. which he resides [lex made 451
816, 17, NCC] domicilii] Non-domiciliary 2. law of the place in

2. law of his country (lex [Art. 829, CC] which the testator
nationali) had his domicile at
3. Philippine law the time of the
4. law of the place where revocation
they were executed
(lex loci
celebrationis)
V. Probate
A. Controlling Law—
NOTE: Rule re: Joint Wills The probate of a will being essentially
1. Joint wills prohibited under Art. 818, CC procedural in character, the law of the
executed by Filipinos in a foreign country forum (lex fori) governs.
shall not be valid in the Philippines even
though authorized by the laws of the country B. Wills Proved and Allowed in a Foreign
where they were executed. [Art. 819, CC] Country
(Asked in 00-04 BAR EXAMINATIONS) 1. A will proved and allowed in a foreign
2. Civil Code is silent as to the validity of a joint country in accordance with the laws of that
will executed by an alien in the Philippines. It country may be allowed, filed, and recorded
is suggested that that it should not be in the proper Regional Trial Court in the
probated if it would affect the heirs in the Philippines [RULES OF COURT, Rule 77,
Philippines. Sec.1]

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XIII. SUCCESSION
2. Requisites for Reprobate (Vda de Perez v

Tolete, 232 SCRA 722)
The following must be proved by competent
evidence:
a. due execution of the will in accordance
with the foreign laws
b. the testator had his domicile in the
foreign country and not in the
Philippines
c. the will has been admitted to probate in
such country
d. the laws of the foreign country on
procedure and allowance of wills
VI. Administration of Estates
Territorial: governed by the law of the place

where the administration takes place, and that is
the law of the country from which the
administrator derives his authority.
VII. Trusts
 Extrinsic Validity: rules governing wills apply
 Intrinsic Validity: lex situs since a trust
involves property
452

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XIV. TORTS and CRIMES
b. In the case of Saudi Arabian Airlines v

Chapter XIV. Torts and Crimes CA, 297 SCRA 469, the Supreme Court
had the occasion to apply the “most
I. Torts significant relationship” rule. In the said
A. Traditional Approach case the court laid down the following
1. Controlling Law factors which are to be taken into
a. Matters Concerning Conduct and account::
Safety: Lex Loci Delicti
i. place where the injury occurred
Commissi
b. Matters Concerning Loss and ii. place where the conduct causing
Safety: Lex Domicilii the injury occurred
2. Characterization of Locus Delicti iii. the domicile, residence, nationality,
a. Common Law Rule place of incorporation and place of
b. Civil Law Rule business of the parties
B. Modern Approaches iv. place where the relationship, if any,
1. Most Significant Relationship between the parties is centered
2. Interest Analysis
3. Caver’s Principle of Preference
2. Interest Analysis—
C. Foreign Torts Claims
1. Transitory Nature of Torts Claims This approach considers the relevant
2. Conditions for Enforcement concerns the state may have in the case
3. Alien Torts Claims Acts (ATCA) and its interest in having its law applied on
4. Rule under Philippine Law that issue
II. Crimes
A. General Rule: Lex Loci Delicti 3. Caver’s Principle of Preference—
Commissi/Locus Regit Actum a. Where the State of Injury provides for
B. Exceptions higher standard of conduct or financial
1. Crimes Committed by Diplomatic
protection against injury than the State
Officials; Doctrine of State Immunity
2. Crimes Committed in Foreign where the tortious act was done, the law
Vessels of the former shall govern
3. Art. 2, Revised Penal Code b. Where the State of injury and conduct
provides for lower standard of conduct
and financial protection than the home
State of the person suffering the injury,
I. Torts the law of the State of conduct and
injury shall govern
A. Traditional Approach c. Where the State in which the defendant
1. Controlling Law was engaged, the special controls and
a. Lex Loci Delicti Commissi (law of the benefits must be applied although the 453
place where the alleged tort was State has no relationship to the

committed) applies in matters defendant
concerning conduct and safety d. Where the law in which the relationship
b. Lex Domicilii of the parties applies in has its seat imposed higher standards of
matters concerning loss distribution or conduct or financial protection than the
financial protection law of the State of the injury, the former
2. Characterization of the place of wrong law shall govern.
(Locus Delicti)
a. Common Law: place where the last C. Foreign Torts Claims
event necessary to make an actor liable 1. Tort liability is transitory. Hence, an action
for an alleged tort occurs (place of for tort may be brought wherever the
injury) tortfeasor is subject to suit.
b. Civil Law: place where the tortious 2. Conditions for enforcement of foreign tort
conduct was committed (place of claims:
conduct) a. The foreign tort is based on civil action
and not on a crime
B. Modern Approaches b. The enforcement of the tort would not
1. Most Significant Relationship infringe the public policy of the forum
a. The most significant relationship c. The judicial machinery of the forum is
approach considers the state’s contacts adequate for its proper enforcement
with the occurrence and the parties 3. Alien Tort Claims Act(ATCA) (Asked in 00-
04 BAR EXAMINATIONS)—

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XIV. TORTS and CRIMES
grants US District Courts original jurisdiction

over any civil action by an alien for a tort
omitted in violation of the law of nations or a
treaty of the US.
4. In the Philippines, no specific statutory law
governs the enforcement of claims arising
from foreign tort.
II. Crimes
A. General Rule—
Lex Loci Delicti Commissi/ Locus Regit
Actum (law of the place where the act was
committed)
NOTE: Penal laws xxx shall be obligatory

upon all those who live and sojourn in
Philippine territory, subject to the principles
of public international law and to treaty
stipulations [Art. 14, CC]
B. Exceptions
1. Crimes committed by state officials,
diplomatic representatives and officials of
recognized international organizations
(based on the doctrine of state immunity
from suit.
2. Crimes committed on board a foreign vessel
even if it is within the territorial waters of the
coastal state, as long as the effect of such
crime does not affect the peace and order of
the coastal state.
3. Crimes which, although committed by
Philippine nationals abroad are punishable
under Philippine law as provided in Art. 2,
Revised Penal Code:
b. offenses committed in a Philippine 454
vessel or airship

c. forging or counterfeiting any coin or
currency note of the Philippines, or any
obligation issued by the government
d. introduction into the country of the
obligations and securities mentioned in
the preceding number
e. those committed by public officers or
employees in the exercise of their
functions
4. Crimes against national security and the law
of nations.

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XV. CORPORATIONS
Chapter XV. Torts and Crimes B. Rule if the Same Not Fixed by Law—
If the law does not fix the same, the domicile of
I. Personal Law of Corporations juridical persons shall be understood to be [Art.
A. General Law: Law of Incorporation 51, CC]:
B. Exceptions 1. place where their legal representation is
1. Constitutional and Statutory
established; or
Restrictions
2. Control Test During War 2. place where they exercise their principal
II. Domicile/Residence of Corporations functions
A. General Rule
B. Exceptions NOTE: A foreign corporation granted license to
III. Jurisdiction Over Foreign Corporations operate in the Philippines acquires domicile
A. Consent Doctrine here.
B. Foreign Corporations Doing Business
Bound by Philippine Law
1. Art. 129, Corporation Code
2. Service Upon Foreign Corporations III. Jurisdiction Over Foreign
Doing Business in the Philippines Corporations
IV. Right of Foreign Corporations to Bring Suit
A. General Rule
A. Consent Doctrine—
B. Exceptions
1. Isolated Transactions A foreign corporation shall be recognized
2. Action to Protect Trademark, Trade and will be allowed to transact business in
Name, Goodwill, Patent or for Unfair any state which gives it consent. The
Competition consent doctrine is established in Sections
3. Agreements Fully Transacted 125, 126, 127 and 128 of the Corporation
Outside the Philippines Code.
4. Petitions Filed Merely as Corollary .
Defense in a Suit Against It B. Foreign Corporations Doing Business in
Philippines Bound by Philippine Law
1. Under Art. 129 of the Corporation Code, all
foreign corporations lawfully doing business
I. Personal Law of Corporations in the Philippines shall be bound by all laws,
rules, and regulations applicable to domestic
A. General Rule— corporations; EXCEPT:
Law of the State where it is incorporated a. provisions for the creation, formation,
[Art. 2, Corporation Code] organization or dissolution of
corporations
b. those which fix the relations, liabilities, 455
NOTE: Hence, if the law creating the corporation
responsibilities, or duties of

does not give it authority to enter into certain
contracts, such contracts made by it in another stockholders, members, or officers of
state shall be void despite the express corporations to each other or to the
permission given by the laws of that other state. corporation
B. Exceptions 2. Service upon foreign corporations doing

1. Constitutional and Statutory Restrictions business in the Philippines may be made on
(e.g. Art. XII, Sec. 2, 1987 Constitution) [Rule 14, Sec. 14, RULES OF COURT]:
2. Control Test During War— c. its resident agent
In wartime, the courts may pierce the veil of a. in the absence thereof, process will be
corporate identity and look into the served on the government official
nationality of the controlling stockholders to designated by law or any of its officers
determine the “citizenship” of the or agent within the Philippines
corporation. b. on any officer or agent of said
corporation in the Philippines
c. thru diplomatic channels (Far East
II. Domicile/Residence of Corporations International v. Nankai Kogyo, 6 SCRA
A. General Rule [Art. 51, CC]— 725 (1962))
that fixed by the law creating them,
recognizing them or any other provision of
law

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XV. CORPORATIONS
IV. Right of Foreign Corporations to

Bring Suit
A. General Rule—
License to transact business in the
Philippines is an essential prerequisite for
filing a suit before Philippine courts [Art. 133,
Corporation Code]
B. Exceptions—
1. isolated transactions
2. action to protect trademark, trade name,
goodwill, patent or for unfair competition
3. agreements fully transacted outside the
Philippines
4. when the petition filed is merely a corollary
defense in a suit against the corporation
EFFECT OF FAILURE TO SECURE A

LICENSE TO TRANSACT BUSINESS
1. the foreign corporation has no right to sue in
the Philippines but it can still be sued
2. although the contracts entered into may be
valid as between the parties, it may not be
enforced in Philippine courts
456

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CIVIL LAW REVIEWER Chapter XVI. FOREIGN JUDGMENTS
Chapter XVI. Foreign Judgments III. Policy of Preclusion Underlying

Recognition and Enforcement
I. RECOGNITION v. ENFORCEMENT  The policy of preclusion seeks to protect

II. BASES OF RECOGNITION AND party expectation resulting from previous
ENFORCEMENT litigation, to safeguard against the
III. POLICIES UNDERLYING harassment of defendants, to insure that the
IV. REQUISITES task of the courts not be increased by never-
V. PROCEDURE FOR ENFORCEMENT ending litigation of the same disputes, and—
VI. EFFECTS OF FOREIGN JUDGMENTS in a larger sense—to promote what Lord
Coke in the Ferrer’s Case of 1599 stated to
be the goal of all law: “rest and quietness.”
FOREIGN JUDGMENT: a decision rendered (Mijares v Ranada, 2005)
outside the forum and encompasses judgments,
decrees and order of courts of foreign countries.  RELATED CONCEPTS
1. Res Judicata: once there is a final
judgment, resolution on the issues litigated
I. Recognition v. Enforcement is binding on the parties and their privies.
2. Merger: plaintiff’s cause of action is merged
in the judgment so that he may not relitigate
A. Recognition of Foreign Judgment
that exact claim.
1. Passive act of giving the same effect that it
3. Bar: successful defendant can interpose as
has in the State where it was rendered with
defense the judgment in his favor to avert a
respect to the parties, the subject matter of nd
2 action by the plaintiff on the same claim.
the action and the issues involved without
4. Direct estoppel: relitigation of all matters
the necessity of filing an action in the forum
decided are precluded
giving effect to the judgment
5. Indirect estoppel: all essential issues of
2. Examples of foreign judgments which can
fact actually litigated cannot be relitigated.
only be recognized: declaratory judgments,
judgments which give no affirmative relief,
judgments which determine the parties’
interests in a thing or status. IV. Requisites for Recognition or
Enforcement
B. Enforcement of Foreign Judgment
1. A judgment is enforced when, in addition to 1. Foreign court had JURISDICTION over the
being recognized, a party is given affirmative parties and the case
relief to which the judgment entitles him; it 2. Judgment VALID under the laws of the 457
necessarily requires the filing of an action. country that rendered it.

2. This necessary implies recognition. 3. Judgment FINAL and EXECUTORY to
constitute res judicata in another action
4. RECIPROCITY: state where foreign
II. Bases of Recognition and judgment was obtained allows recognition
Enforcement and enforcement of Philippine judgments.
5. Judgment is for a FIXED SUM of money
6. Foreign judgment not contrary to PUBLIC
A. Comity—
POLICY OR GOOD MORALS of country
In order to obtain reciprocal treatment from
where it is sought to be enforced
the courts of other countries, we are
7. Judgment not obtained by EXTRINSIC
compelled to take foreign judgments as they
FRAUD, COLLUSION, MISTAKE of fact or
stand and to give them full faith and credit.
law.
B. Doctrine of Obligation—
1. Considers a judgment of a foreign court of
competent jurisdiction as imposing a duty or V. Procedures for Enforcement
obligation on the losing litigant.
2. This is based on the vested rights theory. Three modes of enforcement:
A. Petition
1. Followed in most common law countries and
in the Philippines

lOMoARcPSD|3291925
CIVIL LAW REVIEWER Chapter XVI. FOREIGN JUDGMENTS
2. The rules are silent as to what initiatory

procedure must be undertaken in order to
enforce a foreign judgment in the
Philippines. But there is no question that the
filing of a
B. Summary Proceeding
1. Followed in most civil law countries
2. A summary proceeding for enforcement is
provided by statute.
C. Judgment Registration
An authenticated copy of the foreign
judgment is filed in the registrar’s office
together with other proofs required by
domestic laws and the foreign judgment is
converted into a local one that is
immediately executory.
VI. Effect of Foreign Judgment in the

Philippines
The effect of a judgment or final order of a
tribunal of foreign country, having jurisdiction to
render such is as follows [Sec. 48, Rule 39,
RULES OF COURT]:
1. In a judgment or final order upon a specific
thing, the judgment or final order is
conclusive upon the title to the thing; and
2. In a judgment or final order against a
person, the judgment or final order is
presumptive evidence of a right as between
the parties and their successors-in-interest
by a subsequent title.
3. In either case, the judgment or final order
may be repelled by evidence of
a. want of jurisdiction 458
b. want of notice to the party

c. collusion
d. fraud
e. clear mistake of law or fact
NOTE: It has been recognized that “public

policy” as a defense to the recognition of
judgment serves as an umbrella for a variety of
concerns in international practice which may
lead to a denial of recognition [Mijares v
Ranada, 2005]
- end of Private International Law –

- end of Civil Law -

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131944533 UP Solid Civil Law Reviewer

Bachelor of Science in Accountancy (Saint Louis Christian College)

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PERSONS & FAMILY

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TORTS & DAMAGES

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PERSONS & FAMILY RELATIONS

Chapter I. Civil Personality..............................3 III. Absolute Community of Property ........ 31

Chapter VIII. Property Relations Between

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Chapter I. Concept of Succession................59 Chapter V. Partition and Distribution of

Chapter III. Intestate Succession..................74

Chapter IV. Provisions Common to

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Chapter I. General Provisions.......................91

Chapter II. Nature and Effect of Obligations93

Chapter III. Different Kinds of Obligations ..98

Chapter IV. Extinguishment of Obligations

Charts: Payment & Performance ................114

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Chapter I. General Provisions.....................122

Chapter II. Essential Requisites .................125

Chapter III. Forms of Contracts ..................129

Chapter IV. Reformation of Contracts........130

Chapter V. Interpretation of Contracts.......130

Chapter VI. Defective Contracts .................131

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Chapter I. Definition and Classification of Chapter VII. Usufruct ................................... 181

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LAND TITLES and DEEDS

Chapter I: Background, Basic Concepts and Chapter 6: System of Registration of

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Chapter I. The Contract of Sale ..................269

Chapter II. Obligations of the Seller and

Chapter III. Double Sales .............................286

Chapter IV. Risk of Loss..............................288

Chapter V. Documents of Title....................289

Chapter VI. Remedies of the Seller and Buyer

Chapter VII. Extinguishment of Sale ..........298

Chapter VIII. Philippine Bulk Sales Law (Act

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Chapter I. General Principles ......................307 Chapter VIII. Concurrence and Preference of

Chapter III. Deposit ......................................314

Chapter IV. Guaranty ...................................319

Chapter V. Legal and Judicial Bonds.........326

Chapter VI. Suretyship.................................327

Chapter VII. Pledge, Mortgage, Antichresis

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Chapter I. Nature, Form, and Kinds of Agency