1 HECKY WAS A SHAM

Obblighi e contratti
Nov 13-15, 2018

November 13, 2018 the world. There are several obligations about to prescribe.
Your debtor offer to pay but you renounce.
Article 1106.
By prescription, one acquires ownership and other real Suppose you did not, and no demand was made. Generally
rights through the lapse of time in the manner and under obligations to pay money prescribe in 10 years. You have
the conditions laid down by law. forgotten those debts and you return to the Philippines in
the 11th year. As a creditor, you lose your right over the
In the same way, rights and actions are lost by thing. That’s extinctive. But the debtor acquires a right
prescription. over the thing. That is acquisitive.

In the case of Pangasinan vs. Almazora, the Supreme

The first paragraph refers to acquisitive prescription
The second refers to extinctive.
There is another one which may also be used as a valid
defense -
court enumerated the 4 elements of Laches:
1. Conduct on the part of the defendant giving rise to the
situation of which the complain is made for which remedy
is sought.

Definition of Prescription 2. Delay in asserting the complainant’s right

Prescription is a mode of acquiring (or losing) ownership 3. Lack of knowledge or notice on the part of the defendant
and other real rights thru the lapse of time in the manner that the complainant would assert the right.
and
under the conditions laid down by law, namely, that the 4. Injury/prejudice to the defendant in the event relief is
possession accorded to the complainant.
should be:
*A registered property cannot be acquired by
(a) in the concept of an owner acquisitive prescription but it can be lost through
(b) public extinctive prescription.
(c) peaceful
(d) uninterrupted. (Arts. 1106, 1118, Civil Code). You cannot acquire a registered property by prescription
(e) adverse. In order that a possession may really be because that is one of the exceptions under the law. But
adverse, the claimant must clearly, defi nitely, and the person whose name the property is registered may
unequivocally notify the owner of his (the claimant’s) lose it by extinctive prescription.
intention to avert an exclusive ownership in himself.
(Clendenin v. Clendenin, 181 N.C. 465 and Director of This is what happened in the case of Pangasinan vs.
Lands v. Abiertas, CA-GR 91-R, Mar. 13, 1947, 44 O.G. Almazora. According to the court, it took them 50 years to
923). take action to take back the property allegedly given to
conrado and there were no proof presented by the
Laches petitioners that they indeed demanded for that TCT.
Laches (or “estoppel by laches”) is unreasonable delay in
the The only tangible prrofs were 2 letters written by their
bringing of a cause of action before the courts of justice. lawyers but s to the other allegations of demanding earlier.
The supreme court even took notice of the fact that they
In a case instituted by a petitioner and that’s by reason of did not pay a single property tax due on the property. In
laches. effect, the have lost the property by reason of extinctive
prescription.
Laches Prescription
Based on equity Based on law - title 5
of obligations and
contracts
Unreasonable delay in A mode of acquiring
the bringing of a cause (or losing) ownership
of action before the and other real rights
courts of justice. thru the lapse of time
in the manner and
Only the courts under the conditions
appreciates laches laid down by law
Based on sleeping on Based on lapse of
one’s right - Inability time.
to invoke the right
when it has already
arisen. Sleeping on
rights you could have
invoked earlier

Supposed you are engaged in the business of lending

money but you won the lottery so you celebrate around
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Obblighi e contratti
Nov 13-15, 2018

If the parents lose the property of the unemancipated child

Art. 1107. Persons who are capable of acquiring property by reason of negligence, the child is entitled to damages.
or rights by the other legal modes may acquire the same The reason why the parents are required to furnish a bond
by means of prescription. (10% if value exceeds 50K) is to prevent/protect the abuse
of the child’s property. The law requires the guardian to
Minors and other incapacitated persons may acquire exercise the diligence required under the law.
property or rights by prescription, either personally or
through their parents, guardians or legal representatives. Absentees
Art 381- Article Article Article Art 41
383 384 390 391
When Art 381. Art. Art. Art. When
abse When a 384. Two 390. 391. 1. Prior
Modes of acquiring property: nce person years After (1) A spouse
1. Occupation - or prescription may disappear having an person absent
2. Onerous acquisition - consideration is given which may be s from his elapsed absenc on for at
consist of money, property or services. decla domicile, without e of board a least 4
3. Gratuitous acquisition - no consideration given. Example red his where any news seven vessel yrs and
is donation, inheritance, donations by reason of marriage abouts about the years, lost present
(unless there is consideration) being absentee it being during spouse
a) Donation inter vivos unkown, or since unknow a sea 2. Well
b) Donation mortis causa - upon death of the donor and the n voyage founded
without receipt of whethe , or an belief
November 14, 2018 leaving an the last r or not aeropla
agent to news, the ne
Art. 1108. Prescription, both acquisitive and extinctive, administe and five absente which
runs against: r his years in e still is
property, case the lives, missing
(1) Minors and other incapacitated persons who have the absentee he shall ,
parents, guardians or other legal representatives; judges has left a be
(2) Absentees who have administrators, either appointed may person in presum (2) A
by them before their disappearance, or appointed by the appoint a charge ed person
courts; person to of the dead in the
(3) Persons living abroad, who have managers or represent administr for all armed
administrators; him in all ation of purpos forces
(4) Juridical persons, except the State and its subdivisions. that may his es, who
Persons who are disqualifi ed from administering their be property, except has
property have a right to claim damages from their legal necessary his for taken
representatives whose negligence has been the cause of . absence those part in
prescription. may be of war,
. declared. success
ion. (3) A
That contract entered into by a minor is voidable and due person
to minority, the act of the minor may be repudiated or who
ratified by the guardian or their parents because the law has
presumes that (pursuant to art 225 of the family code) been in
parents (the father and the mother) shall exercise danger
guardianship over the property of their unemancipated of
children. In case of disagreement, the father’s decision death
shall prevail unless there is a judicial order to the contrary. under
other
So as long as the child is a minor, his property will be circums
under the administration, not ownership of his or her tances
father and mother jointly.

Acts of ownership is sometimes called as acts dominion.

That is why in your art 96 or 124 on the administration of
an enjoyment of either ACOP of CPOG, the first paragraph
refers only to acts of administration. The wife is given 5
yrs because if the husband encumbers or disposes the
property without the other spouses written consent, it is
void. And thus, the action to declare the contract void does
not prescribe. Although, it is considered as a continuing
offer. So remember that case of Alejo vs. Cortez where the
court said that, there can be no ratification because it is a
void contract and void contracts cannot be ratified.
Likewise, it is a continuing offer between the third
person and the consenting spouse.
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Obblighi e contratti
Nov 13-15, 2018

Perio - A) 2 yrs At least 4 At least

d of from 7 yrs, years: 4 yrs or Art. 1109.
abse receipt of but for 1) Sinc 2 yrs if Prescription does not run between husband and wife, even
nce last news purpos e loss due to though there be a separation of property agreed upon in
about es of of the 390 or the marriage settlements or by judicial decree.
absentee opening vessel 391
- No success 2) Not Neither does prescription run between parents and
adminstr ion: been children, during the minority or insanity of the latter, and
ator heard between guardian and ward during the continuance of the
appointe 10 yrs of since guardianship.
d If age war
75 and 3)
B) 5 yrs - over, Existen
Administr after 5 ce
atr years unkno
appointe of wn Art. 1110. Prescription, acquisitive and extinctive, runs
d absenc in favor of, or against a married woman.
e

Art 381- Article Article Article Art 41

383 384 390 391
Purp Administr Administr All All Remarri
ose ation of ation of purpos purpos age of
absentee’ absentee’ es es the
s property s except includin present In the case of Heirs of Delfin vs NHA, what was the
property opening g spouse reaseon why the court held that the spouses were able to
success success acquire the property by prescription?
ion (10 ion
yrs or 5 CA 141. It was established that they occupied the property
yrs if since 1945. Moreover, according to the court, as soon as
absent the property is converted into one for agricultural use
after
75)
Who are preferred? Art. 1111. Prescription obtained by a co-proprietor or a
co-owner shall benefit the others.
Art. 385.
The following may ask for the declaration of absence: If the property is co owned and only one of the co owers is
(1) The spouse present; administering the property, in the event that there is a
(2) The heirs instituted in a will, who may present an benefit in favor of the co owner who exercised
authentic copy of the same; administration over the co owned property, it will also
(3) The relatives who may succeed by the law of intestacy; benefit the other co owners despite the fact that they have
(4) Those who may have over the property of the absentee been not actively participating or actually in possession of
some right subordinated to the condition of his death. the property.

Juridical persons - may acquire property except, the state
and its subdivisions but if you have read the case of
republic vs CA, the supreme court said that
“while it is true that prescription does not lie against the
state, it can be defeated by the state’s inaction”
because there are several instances where they had notice
of the increase in the lot area of st jude because when
they subdivided the land, it would require approval of the
land registration authority. So there was knowledge on the
part of the gov’t agency that the area already increased.
But it took 20 years for them to take action. So it’s not
prescription there but estoppel by laches.
That was why in the case of Yambao vs Yambao, the court
said that they are co owners and that it did not prescribe.
There was this admission on the part of Feliciano’s heirs
that they derived their title from Hermogenes. The
prescription started to run when they were prevented from
entering the property because prior to that, they were
actually given authority to harvest whatever is found within
the property. Thus being co owners, prescription will not lie
and they can validly seek for partition of the property.

Prescription does not run between husband and

wife. Suppose the wife would be working abroad. You
remember the case of Nobleza vs. Nuega, it was shirley
who provided for the money to purchase the property of
their conjugal home but it was registered solely in the
name of the husband alone. If we will apply prescription
then definitely the husband has an upperhand in the
acquisition of the property.
Art. 1112. Persons with capacity to alienate property may
renounce prescription already obtained, but not the right to
prescribe in the future.
Prescription is deemed to have been tacitly renounced
when the renunciation results from acts which imply the
abandonment of the right acquired.
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Obblighi e contratti
Nov 13-15, 2018

Republic vs Espinosa, that there must be

Persons with capacity to alienate property may renounce 1. A law that declares it to be alienable and
prescription already obtained, but not the right to disposable;
prescribe in the future because this is tantamount to a 2. A declaration that it is no longer intended for
waiver of future right. In order for a valid waiver to exist, public use, public service or development of national
the right must be existing at the time of renunciation.
wealth.
However, you can renounce a right you already earned. So
Both requisites must concur. In the absence of one, the
for example, you can renounce overtime for a service that property cannot still be acquired through acquisitive
you have already rendered.
prescription because these are mandatory requirements.
You can renounce support in arrears but not future support
because that is against the law.

When is there tacit renunciation?

A very basic example of both extinctive and aqcuisitive
would be an obligation to pay money.
Art. 1114. Creditors and all other persons interested in
making the prescription effective may avail themselves
Generally an obligation to pay money prescribes in 10
thereof notwithstanding the express or tacit renunciation
years. The debtor does not need to pay until the creditor
by the debtor or proprietor.
demands. Without the demand, the debtor cannot be
considered to have ncurred in delay, even if the obligation
states payable on December 25, 1998. As long as the
This was true in the case of Caltex Philippines vs. Aguirre.
creditor did not make any demand, the debtor cannot be
Here, caltex is one of those defendants sued by the heirs
considered in delay because he is merely a passive
of those who died in Dona Paz tragedy. While caltex
subject. Suppose the creditor did not do anything and thus
initially filed a motion to renounce the defense of
10 years later, this obligation has already prescribed.
prescription, it did not take it into account but merely
Thus, there is acquisitive prescription of the money with
noted it.
respect to the debtor and extinctive prescription with
respect to the creditor because he lost the money.
The supreme court said, despite the renunciation of caltex,
it cannot give due course to the complaint for damages
Now, suppose the creditor did not make a demand and
because the decision in RTC Catbalogan has already
instead went outside the country and did not intend to
become final and thus it cannot be disturbed.
return, that is a tacit renunciation.

Express may be writing or orally made.

Art. 1115. The provisions of the present Title are

understood
to be without prejudice to what in this Code or in special
laws is established with respect to specific cases of
What may be the object of prescription?
prescription.

Art. 1113. All things which are within the commerce of

Examples
men are susceptible of prescription, unless otherwise
(a) A legitimate child may bring an action to claim
provided.
legitimacy as long as he is alive (generally). (Art. 173,
Family Code);
Property of the State or any of its subdivisions not
patrimonial in character shall not be the object of
(b) An illegitimate child may bring an action to establish
prescription.
illegitimate filiation during his lifetime (generally). (Art.
175, Family Code);
Exception to things within the commerce of men:
1. Properties obtained through a crime
(c) The real right of possession of real property is lost at
2. Lots registered under the Torrens system (cannot be
the end of 10 years;
acquired by prescription but can be lost through extinctive
prescription)
(d) The proceeding for the probate of a will never
prescribes. (Guevara v. Guevara, et al., L-5405, Jan. 31,
Property of the State or any of its subdivisions not
1956);
patrimonial in character shall not be the object of
prescription.
(e) The proceeding for the deportation of an alien must be
brought within five years from the date the cause for
Even if the street has been abandoned by the local
deportation arose. (Sec. 37, Immigration Act);
government unit, that doesn’t mean it can be acquired
through prescription. Likewise, abandoned plazas, even if
(f) An action to annul a sale of shares of stock in a
there are already houses built therein, that cannot be
corporation is violation of the Securities Act because there
acquired by prescription unless, as held in the case of
was no permit for the same, and for the recovery of the
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Obblighi e contratti
Nov 13-15, 2018

purchase price must be instituted within a period of two
years from the date of the sale. Hence, if the sale is made
on Oct. 23, 2003, but the action is brought on Nov. 2,
2005, the action is 10 days late, and can no longer be
entertained. (See
Benedicto v. Phil. American Finance and Development Co.,
L-8695, May 31, 1957);
(g) In order to confer jurisdiction on the Court of Tax
Appeals, the suit for refund of taxes erroneously or illegally
assessed
must be brought within the statutory period of two years,
and the requirements provided in the National Internal
Revenue Code must be complied with. (Collector of
Internal
Revenue v. Court of Tax Appeals, et al., L-11494, Jan. 28,
1961);
(h) An action for accounting or reliquidation of agricultural
crops under par. 3, Sec. 17 of Rep. Act 1199 should be
brought within 3 years from the threshing of the crops in
question. (Agaton Mateo v. Gregorio Duran, et al., L-
14314,
Feb. 22, 1961).
he has no business entering the property being leased
2. Mortgagee - right to annotate on the title the real estate
mortgage
3. Pledgee - right of posession
Requisites for ORDINARY prescription
1) good faith
2) just title
Possession must be;
1. In the concept of an owner,
2. Public - neighbors are aware that you are occupying the
property
3. Peaceful - no one questioned your possession over the
property
4. Uninterrupted- whether by civil or natural interruption
or tacit recognition that the property is owned by
somebody else (Art 1118)
Art. 1119. Acts of possessory character executed in virtue
of license or by mere tolerance of the owner shall not be
available for the purposes of possession.

These pertain to squatters. They never acquire ownership

of the property they are in possession. This is because they
are merely tolerated.

Art. 1116. Prescription already running before the

effectivity of this Code shall be governed by laws
previously in force; but if since the time this Code took
effect the entire period herein required for prescription
should elapse, the present Code shall be applicable, even
though by the former laws a longer period might be
required.

Transitional Rules for Prescription

(a) If the period for prescription BEGAN and ENDED under
the OLD laws, said OLD laws govern.
(b) If the period for prescription BEGAN under the NEW
Civil Code, the NEW Civil Code governs.
(c) If the period began under the OLD law, and continues
under the NEW Civil Code, the OLD law applies.

PRESCRIPTION OF OWNERSHIP AND OTHER REAL

RIGHTS

Art. 1117. Acquisitive prescription of dominion and other

real rights may be ordinary or extraordinary.
Ordinary acquisitive prescription requires possession of
things in good faith and with just title for the time fi xed by
law.

Ownership is a real right. What are other real rights?

1. Lessee - right of possession. You can eject the lessor, if