CIVIL LAW REVIEWER
PROPERTY KINDS OF INDIRECT POSSESSION:
ARTICLE 523 - POSSESSION
o Possession is the holding of a thing or the enjoyment of a right.
KINDS OF POSSESSION:
a) According to the name used as to its existence.
1. In one’s own name, or
2. In the name of another (Art.524)
b) According to the concept of possession.
1. In the concept of an owner, or
2. In the concept of a holder (Art 525)
c) According to the condition of the mind.
1. In good faith (bona fide), or
2. In Bad Faith (Mala fide) (Art 526)
 RIGHT TO POSSESSION – an incident or attribute of ownership
over a thing
 RIGHT OF POSSESSION – independent right, separate from
ownership.
ELEMENTS OF POSSESSION:
1. Existence of the thing or right;
2. Holding (actual/constructive) of the thing; Enjoyment
3. There is conscious and deliberate intention to possess the thing;
4. The holding is by virtue of one’s right, either as an owner or as a
holder.
Possessor of a thing need not be the owner thereof.
A judgement of ownership rendered by a court does not necessarily
include possession as a necessary incident.
MERE POSSESSION cannot defeat the title of a holder of a
registered Torrens title to real property.
ARTICLE 524 – DIRECT AND INDIRECT POSSESSION
o Possession may be exercised in one's own name or in that of
another.
***Direct Possession – owner or possessor may be in actual possession.
***Indirect Possession – possess the thing through an authorized agent
i. VOLUNTARY – effected through the mutual consent of the parties.
ii. INVOLUNTARY – arises not by the consent of the parties, but by
operation of law.
***Possessor-Holder: may be lessee, usufructuary, etc.
***Possessor-Owner: Right arising from the thing
-can bring actions to protect and maintain his possession; ask for
registration of his possession; entitled to just compensation
ARTICLE 525 – CONCEPTS OF POSSESSION
o The possession of things or rights may be had in one of two
concepts: either in the concept of owner, or in that of the holder of
the thing or right to keep or enjoy it, the ownership pertaining to
another person..
2 CONCEPTS OF POSSESSION:
1. Concept of an OWNER – proceeds from the person’s belief or
pretension that he is the owner of the thing as manifested by certain acts of
ownership and the public believes he is the owner.
2. Concept of a HOLDER – possessor acknowledges the
ownership of thing by another person.
***only he who possesses the property under a bona fide claim of
ownership is entitled to confirmation of title.
*** POSSESSION IN GOOD FAITH: possessor is not aware of any flaw
or problem in his title which invalidates it.
***POSSESSION OF AN OWNER: same with a possessor in good faith
but performs acts of ownership. He does not recognize any title of
ownership in the hands of another person. Good Faith/Bad Faith is
IMMATERIAL.
ARTICLE 526
o He is deemed a POSSESSOR IN GOOD FAITH who is not aware
that there exists in his title or mode of acquisition any flaw which
invalidates it.
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He is deemed a POSSESSOR IN BAD FAITH who possesses in o It is presumed that possession continues to be enjoyed in the
any case contrary to the foregoing. same character in which it was acquired, until the contrary is
Mistake upon a doubtful or difficult question of law may be the proved. 
basis of good faith.
***Good Faith and Bad Faith are states of the mind; they are not visible or ARTICLE 530 – OBJECT OF POSSESSION
tangible. Nevertheless, it can be determined by the overt acts and conduct of o Only things and rights which are susceptible of being appropriated
the possessor. may be the object of possession. 
***What makes the error or ignorance a basis of good faith is the presence ***Only property as defined under Article 414 may be possessed.
of an apparent “doubt” or “difficulty” in the law; law is complex, ***Only existing things that can be placed under the control of man may be
ambiguous or vague. possessed.
***When law is clear and simple, Art. 526 does not apply. KINDS OF POSSESSOR:
***Bad Faith is personal to the possessor. 1. PUBLIC - government;
***Bad Faith is not transmissible from a person to another. 2. PRIVATE – private person or entity.
***Possessor of public lands, however long, never confers title upon the
ARTICLE 527 – GOOD FAITH IS ALWAYS PRESUMED possessor.
o Good faith is always presumed, and upon him who alleges bad faith ***Legacy or Donation of ALL, or SOME parts of a Human Body becomes
on the part of a possessor rests the burden of proof. effective only upon the death of the testator without waiting for the probate
***The presumption of good faith is proper and just because possession is of the will.
the outward sign of ownership.
***Bad faith cannot be presumed, it must be established by competent ACQUISITION OF POSSESSION
proof to overcome the presumption of good faith.
ARTICLE 531 – HOW POSSESSION IS ACQUIRED
ARTICLE 528 – CESSATION OF GOOD FAITH o Possession is acquired by the material occupation of a thing or
o Possession acquired in good faith does not lose this character except the exercise of a right, or by the fact that it is subject to the
in the case and from the moment facts exist which show that the action of our will, or by the proper acts and legal formalities
possessor is not unaware that he possesses the thing improperly or established for acquiring such right.
wrongfully.  ***For possession to exist, it must have Corpus and Animus;
***The character of good faith remains until the possessor is shown to have -Corpus; existence of the thing: Animus; intent to possess the thing
been aware that he possesses the thing improperly or wrongfully. ***Even if somebody is physically holding a thing, but if there is no
***Notice of defects in possessors title; good faith ceases intention to exercise the right of a possessor, there is NO POSSESSION.
***LIABILITY; If in BAD FAITH, liable even if due to FORCE MODES OF ACQUIRING POSSESSION:
MAJEURE, If in GOOD FAITH, NO LIABILITY. a) When Corporeal PROPERTY IS Involved:
i. By material occupation of the thing;
ARTICLE 529 - PRESUMPTION OF CONTINUITY OF ii. By subjection to the action of the possessor;
CHARACTER OF POSSESSION iii. By proper acts and legal formalities;

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b) When RIGHTS are involved:
i. Exercise of the right
***Actual Possession; manifestation of acts of dominion over property of
such a nature as a party would naturally exercise over his own;
***Constructive Possession; may be had through succession, donation,
execution of public instruments, or the possession by a sheriff by virtue of a
court order.
***Material Possession; possession as a fact not right to possession.
KINDS OF DELIVERY:
a.) Tradicion brevi-manu
b.) Tradition constitutum possessorium
c.) Tradicion Symbolica
d.) Tradicion Longa Manu
EXECUTION OF PROPER ACTS & LEGAL FORMALITIES:
a.) Donations;
b.) Succession;
c.) Deeds of Sale, and other contracts;
d.) Execution of Judgement culminating in the sale of property at public
auction
***Symbolic Delivery is not effective if there is impediment that prevents
the passing of the property from the hands of the vendor to those of the
vendee.
ARTICLE 532 – KINDS OF POSSESSION: ACCDG TO PERSON OF
POSSESSOR
o Possession may be acquired by the same person who is to enjoy it,
by his legal representative, by his agent, or by any person
without any power whatever: but in the last case, the possession
shall not be considered as acquired until the person in whose name
the act of possession was executed has ratified the same, without
prejudice to the juridical consequences of negotiorum gestio in a
proper case.  THROUGH FORCE; EVEN THE OWNER
ARTICLE 533 – POSSESSION OF HEREDITARY PROPERTY - The
possession of hereditary property is deemed transmitted to the heir without
interruption and from the moment of the death of the decedent, in case the
inheritance is accepted.
One who validly renounces an inheritance is deemed never to
have possessed the same.
***The heir referred to includes both compulsory and voluntary heir, in the
absence of any qualification or distinction.
*** Renouncement made long after the death of decedent, but BEFORE
PARTITION, said heir is deemed to have never been in possession of his
inheritance.
ARTICLE 534
o On who succeeds by hereditary title shall not suffer the
consequences of the wrongful possession of the decedent, if it is
not shown that he was aware of the flaws affecting it; but the
effects of possession in good faith shall not benefit him except
from the date of death of the decedent.
***Bad Faith is intransmissible; its effects must be suffered only by the
person who acted as such.
***The benefits or fruits which could be enjoyed by said heir will only
cover those arising from the TIME OF THE DEATH OF THE
DECEDENT.
ARTICLE 535
o Minors and incapacitated persons may acquire the possession of
things; but they need the assistance of their legal representatives
in order to exercise the rights which from the possession arise
in their favor.
***Minors and incapacitated persons, despite the restrictions in their
capacity to act, may acquire possession of things given or granted through
modes like donations, testate or intestate succession and prescription.
ARTICLE 536 – POSSESSION CANNOT BE ACQUIRED
o In no case may possession be acquired through force or
intimidation as long as there is a possessor who objects thereto.
He who believes that he has an action or a right to deprive
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another of the holding of a thing, must invoke the aid of the 3.)If both began their possession at the same time: the one WHO
competent court, if the holder should refuse to deliver the thing. PRESENTS A TITLE;
***The principle prohibiting “the taking of the law into one’s own hands” 4.) If both have titles; the competent COURT will determine the rightful
applies to all kinds of properties. (movable or immovable) possessor or owner.
***Exception: PRINCIPLE OF SELF-HELP
EFFECTS OF POSSESSION
 ARTICLE 537
o Acts merely tolerated, and those executed clandestinely and ARTICLE 539 – PROTECTION OF POSSESSORS;REMEDY IN
without the knowledge of the possessor of a thing, or by CASE OF DISTUBANCE
violence, do not affect possession.
***No right will be acquired by PRESCRIPTION o Every possessor has a right to be respected in his possession;
***Possession of land by tolerance becomes UNLAWFUL DETAINER and should he be disturbed therein he shall be protected in or
from the time there is a DEMAND TO VACATE. restored to said possession by the means established by the
***Persons who occupy the land of another at the latter’s tolerance or laws and the Rules of Court.
permission cannot be considered possessors nor builders in good faith.
***Acts of VIOLENCE does not affect possession, such possession is not A possessor deprived of his possession through
true possession respected by law. forcible entry may within ten days from the filing of the
complaint present a motion to secure from the competent
ARTICLE 538 – POSSESSION AS A FACT court, in the action for forcible entry, a writ of
o Possession as a fact cannot be recognized at the same time in preliminary mandatory injunction to restore him in his
two different personalities except in the cases of co-possession. possession. The court shall decide the motion within thirty
Should a question arise regarding the fact of possession, the (30) days from the filing thereof.
present possessor shall be preferred; if there are two
possessors, the one longer in possession; if the dates of the ***Whether a possessor has title or not, he cannot be deprived of his
possession are the same, the one who presents a title; and if possession without due process
all these conditions are equal, the thing shall be placed in UNLAWFUL DETAINER FORCIBLE ENTRY
judicial deposit pending determination of its possession or Possession of the defendant is Possession of the defendant is
ownership through proper proceedings. lawful at the beginning but unlawful from the beginning
becomes unlawful by reason of having acquired his possession by
RULES ON CONFLICTING CLAIMS OF POSSESSION: the right to possess the property means of force, intimidation,
1.) Present possessor SHALL BE PREFERRED; threat, strategy or stealth.
2.) If both claimants are presently in possession; the LONGER IN There must be a demand to vacate No demand to vacate is required
POSSESSION will have the preference who is usually the one who has Plaintiff need not prove that he Plaintiff must prove that he was in
come and took possession ahead of the other; has been in prior physical prior physical possession until his
possession deprivation thereof by the

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defendant
1 yr period within which to file
action is counted from the date of
receipt of demand to vacate
***Forcible Entry and Illegal Detainer must be brought within one year
after dispossession before the inferior court which is vested with exclusive
jurisdiction.
***Accion Publiciana; one for the recovery of possession of the right to
possess
***Accion Reinvindicatoria; a suit which has for its object the recovery of
possession over the real property as owner (filed with the RTC)
***In ejectment, the only issue is POSSESSION DE FACTO;
EXCEPT when the issue of possession cannot be decided without
resolving the issue of ownership, however resulting judgement would be
conclusive only with respect to the possession, but not the ownership of the
property.
***INJUNCTIONS are not available to take property out of the possession
of a person and place it into that of another whose title has not been clearly
established.
***In ejectment cases, the only damage that can be recovered is the fair
rental value or the reasonable compensation for the use and occupation of
the property
ARTICLE 540
o Only the possession acquired and enjoyed in the concept of owner
can serve as a title for acquiring dominion.  REQUISITES FOR LEGAL PRESUMPTION:
***Article 540 speaks of possession acquired and enjoyed in the concept of
an owner; to serve as a title for acquiring ownership over a property by
acquisitive prescription.
***Possession, under the Civil Code, to constitute the foundation of a
prescriptive right, must be possession under claim of title (en concepto de
dueno)
***An act which was illegal from the start cannot ripen into lawful
ownership simply because the usurper has occupied more than 10 years.
***Certificate of title; document issued by the Register of Deeds
***Title; ownership which is represented by that document
***Ownership is different from a Certificate of Title; Mere issuance of
certificate of title in the name of any person does not foreclose the
possibility that the real property may be under co-ownership
***Registration is not equivalent to title, but is only the best evidence
thereof.
***Just Title; not limited to documents which are sufficient to transfer
ownership; covers acts, even verbal acts which are legally sufficient to
transmit ownership of property or a real right.
***Just Title need not be proved in possession; it must be proved for
prescription.
***PUTATIVE TITLE; not just title, it is kind of title where a person has
the impression and belief that he is the owner of the property; however, he
is not the owner there being no mode of acquiring ownership present.
***Mere payment of real estate taxes does not prove ownership; they may
constitute strong evidence of ownership when accompanied by possession
for a period sufficient for prescription.
ARTICLE 541
o A possessor in the concept of owner has in his favor the legal
presumption that he possesses with a just title and he cannot be
obliged to show or prove it. 
***The Article provides for legal presumption that the possessor in the
concept of an owner possesses a JUST TITLE.
***applies to both real and personal property
1.) The person must be in actual or constructive possession of the property;
2.) Possession must be in the concept of an owner; not that of a holder
***Just Title is not necessarily a document; can be oral contract
***applies to both real and personal property
ARTICLE 542
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o The possession of real property presumes that of the movables
therein, so long as it is not shown or proved that they should be
excluded.  income.
**refers only to property and not to rights.
ARTICLE 543
o Each one of the participants of a thing possessed in common shall
be deemed to have exclusively possessed the part which may be
allotted to him upon the division thereof, for the entire period
during which the co-possession lasted. Interruption in the
possession of the whole or a part of a thing possessed in
common shall be to the prejudice of all the possessors. However,
in case of civil interruption, the Rules of Court shall apply.  ARTICLE 545
***Upon partition of the property in common, each one of the co-owners
shall be deemed in possession of that portion allotted to him from the time
the partition is made.
***Civil Interruption – produced by judicial summons to possessor.
-Judicial Summons is the service of a copy of complaint upon the
defendant together with the order of the court requiring the latter to answer
within a certain period of time.
ARTICLE 544
o A possessor in good faith is entitled to the fruits received before
the possession is legally interrupted.
Natural and industrial fruits are considered received from the
time they are gathered or severed.
Civil fruits are deemed to accrue daily and belong to the
possessor in good faith in that proportion.
***Natural Fruits; spontaneous products of the soil, and the young and
other products of animals.
***Industrial Fruits; those produce by lands of any kind through
cultivation or labor.
***Civil Fruits; rent of buildings, the price of leases of lands and other
property and the amount of perpetual or life annuities or other similar
***Only possessors in GOOD FAITH are entitled to fruits.
***If property bears no fruits, reasonable rents shall be imposed during the
time of interrupted possession, in the concept of civil fruits.
***In rescission of a contract of sale of a parcel of land, there is an
obligation of mutual restitution.
***Civil Fruits are deemed to accrue daily and belong to the possessor in
good faith, they are deemed received on their due date, and not on their
actual payments.
 If at the time the good faith ceases, there should be any natural
or industrial fruits, the possessor shall have a right to a part of
the expenses of cultivation, and to a part of the net harvest,
both in proportion to the time of the possession.
The charges shall be divided on the same basis by the two
possessors.
The owner of the thing may, should he so desire, give the
possessor in good faith the right to finish the cultivation and
gathering of the growing fruits, as an indemnity for his part of the
expenses of cultivation and the net proceeds; the possessor in good
faith who for any reason whatever should refuse to accept this
concession, shall lose the right to be indemnified in any other
manner. 
***The article covers only natural or industrial fruits which are still
growing, and not yet ripe for gathering or harvesting.
***If at the time the good faith ceases, there should be pending natural or
industrial fruits, the possessor and the owner shall have a right to a part of
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the net harvest and each shall divide the expenses of cultivation, both in
proportion to the time of their respective possessions
***With respect to charges, the same shall also be divided by the
possessor and the owner, in proportion to the time of their respective
possessions, the term “charges” in Article 545 is understood to be those
expenses incurred not on the thing itself, but because of it or on account
of it.
***Do not ordinarily apply to trees because the latter are not considered as
fruits unless they are being exploited for an industry,
in which case, they are classified as industrial fruits.
ARTICLE 546
o Necessary expenses shall be refunded to every possessor;
but only the possessor in good faith may retain the thing until he has
been reimbursed therefor.
Useful expenses shall be refunded only to the possessor in good
faith with the same right of retention, the person who has defeated
him in the possession having the option of refunding the amount of
the expenses or of paying the increase in value which the thing may
have acquired by reason thereof.
ARTICLE 547
o If the useful improvements can be removed without damage to the
principal thing, the possessor in good faith may remove them,
unless the person who recovers the possession exercises the option
under paragraph 2 of the preceding article.
ARTICLE 548
o Expenses for pure luxury or mere pleasure shall not be refunded to
the possessor in good faith; but he may remove the ornaments with
which he has embellished the principal thing if it suffers no injury
thereby, and if his successor in the possession does not prefer to
refund the amount expended.
ARTICLE 549
o The possessor in bad faith shall reimburse the fruits received
and those which the legitimate possessor could have received, and
shall have a right only to the expenses mentioned in paragraph 1 of
Article 546 and in Article 443.
The expenses incurred in improvements for pure luxury or mere
pleasure shall not be refunded to the possessor in bad faith, but he
may remove the objects for which such expenses have been
incurred, provided that the thing suffers no injury thereby, and that
the lawful possessor does not prefer to retain them by paying the
value they may have at the time he enters into possession.
***Necessary expenses as those incurred not for improvement but for the
preservation of the thing and are intended not to increase the value thereof
but to prevent it from becoming useless.
***Useful expenses, on the other hand, are those incurred to give
greater utility or productivity to the property.186 These expenses increase
the value of the thing and result in improvements, called useful
improvements.
***Ornamental expenses or expenses for pure luxury, as distinguished
from useful expenses, are those which do not increase the productiveness of
the thing but merely embellish the same.
***Whether in good faith or in bad faith, a possessor is entitled to the
refund of necessary expenses incurred by him.
***possessor in good faith is also entitled to retain the thing until he has
been reimbursed therefor.
***Only possessors in good faith is entitled to refund of useful expenses.
IN MAKING THE REFUND, the owner (or the person who has defeated
the possessor in good faith in the possession) has the option:
(1) To refund the amount of the expenses; or
(2) To pay the increase in value which the thing may have acquired by
reason of the useful expenses
***The possessor in good faith may, in lieu of reimbursement for the useful
expenses, remove the useful improvement but subject to compliance with
the following requisites:
-The removal can be done without damage to the principal thing.
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-The owner does not choose to appropriate the improvements by
refunding to the possessor in good faith the useful expenses
RIGHT OF RETENTION:
- Its object is to guarantee the reimbursement of the expenses, such
as those for the preservation of the property, or for the enhancement of its
utility or productivity.
It permits the actual possessor to remain in possession while he has
not been reimbursed by the person who defeated him in the possession for
those necessary expenses and useful improvements made by him on the
thing possessed.
***VALUE OF USEFUL IMPROVEMENTS; based on the current
market value of the improvements should be made the basis of
reimbursement, to administer complete justice to both of them in such a
way as neither one nor the other may enrich himself of that which does not
belong to him
***Whether in good faith or in bad faith, a possessor is not entitled to a
refund of the expenses incurred by him for pure luxury or mere pleasure,
called “ornamental expenses”.
***If the improvements made by the possessor in good faith have already
ceased to exist at the time the legitimate possessor recovers possession, the
latter is in no way benefited. Hence, he cannot be obliged to refund the
expenses incurred by the possessor.
ARTICLE 550
o The costs of litigation over the property shall be borne by every
possessor. 
ARTICLE 551
o Improvements caused by nature or time shall always inure to the
benefit of the person who has succeeded in recovering
possession.
ARTICLE 552
o A possessor in good faith shall not be liable for the
deterioration or loss of the thing possessed, except in cases in
which it is proved that he has acted with fraudulent intent or
negligence, after the judicial summons.
A possessor in bad faith shall be liable for deterioration or loss in
every case, even if caused by a fortuitous event. 
ARTICLE 553
o One who recovers possession shall not be obliged to pay for
improvements which have ceased to exist at the time he takes
possession of the thing.
***Pursuant to this article, the possessor’s liability for loss or deterioration
shall depend on his good faith or bad faith.
- If the possessor is in good faith, he is not liable at all for the
deterioration or loss of the thing possessed.
-A possessor in bad faith, on the other hand, is liable for any
deterioration or loss of the thing “in every case” even when the same is
caused by fortuitous event.
ARTICLE 554 – PRESUMPTION OF CONTINUOUS POSSESSION
o A present possessor who shows his possession at some
previous time, is presumed to have held possession also during
the intermediate period, in the absence of proof to the contrary.
***The presumption of continuous possession is relevant and useful in
cases of prescription as a mode of acquiring ownership.
ARTICLE 555
o A possessor may lose his possession:
 (1) By the abandonment of the thing;
 (2) By an assignment made to another either by
onerous or gratuitous title;
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 (3) By the destruction or total loss of the thing, or
because it goes out of commerce;
 (4) By the possession of another, subject to the
provisions of article 537, if the new possession has
lasted longer than one year. But the real right of
possession is not lost till after the lapse of ten years.
***Abandonment – voluntary renunciation of a property or right by its
owner or possessor.
-there must be an intention to lose the thing.
-an owner of a property may choose to abandon his RIGHT OF
POSSESSION only, but not his ownership over it.
-only personal property may be abandoned;
-for a property to be considered abandoned under the law, it is
necessary that the spes recuperandi (hope of recovery or recapture) is gone
and the animus revertendi (intent to recover) is finally given up.
***Assignment – total transfer of ownership of a property by the owner to
another person either onerously or gratuitously.
-When the owner has assigned his rights of ownership, BOTH
POSSESSION DE FACTO AND DE JURE are lost and NO ACTION FOR
RECOVERY will be allowed.
-For assignment to be validly made, it is necessary that the assignor
be in the concept of owner and that he has the capacity to alienate.
***Destruction - thing is destroyed physically such as when it got totally
burned or dismantled to the extent that it becomes useless and
unserviceable.
***Total Loss – although it remains physically intact, it cannot be
recovered anymore such as when a ring fell into the bottom of a deep sea.
-As a mode of losing possession, destruction or loss may either be
physical or juridical.
-It is understood that a thing is lost when it perishes, or goes out of
commerce, or disappears in such a manner that its existence is unknown or
cannot be recovered. Since the term is also used in a juridical sense, a thing
is also considered lost when it is expropriated by the government.
***Possession by Another
-distinction must be made between possession as a fact (de
facto) and possession as a right (de jure).
-If the possession of another lasts for more than one year, only
possession de facto is lost but not the real right of possession (possession de
jure)
-Possession de jure, on the other hand, is not lost until after the
lapse of ten (10) years
-if the dispossession has NOT LASTED FOR MORE THAN
ONE YEAR, an EJECTMENT PROCEEDING IS PROPER and the
inferior court has jurisdiction.
-if the dispossession LASTED FOR MORE THAN ONE YEAR,
the PROPER ACTION TO BE FILED IS AN ACCION PUBLICIANA
since the real right of possession (possession de jure) is not lost until after
the lapse of ten (10) years.
-In paragraph 4 of Article 555, what is lost after the lapse of ten
(10) years is possession de jure, not necessarily the ownership of the
property.
-Ownership and possession are distinct concepts. For ownership to
be lost through possession by another, it must be in the concept of an owner,
public, peaceful and uninterrupted
ARTICLE 556 - RULE WITH RESPECT TO MISPLACED
(MISLAID) MOVABLES
o 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 means juridical control or juridical right or that the movable
remains in the possessor’s patrimony.
***When a movable is simply misplaced or mislaid, the possessor does not
automatically lose possession because the movable is still deemed
remaining under his control even though for the time being he may not
know its whereabouts.
***If the misplaced movable is already in the possession of another its
possession is already deemed lost because it is no longer under the control
of the possessor.
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ARTICLE 557
o 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 the
provisions of THE MORTGAGE LAW AND THE LAND
REGISTRATION LAWS.
ARTICLE 558
o 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.
ARTICLE 559
o The POSSESSION OF MOVABLE PROPERTY
ACQUIRED IN GOOD FAITH is equivalent to a TITLE.
Nevertheless, one who has lost any movable or has been
UNLAWFULLY DEPRIVED thereof, may recover it from
the person in possession of the same.
If the possessor of a movable lost or which the owner has
been unlawfully deprived, has acquired it in good faith at a
public sale, the OWNER CANNOT OBTAIN ITS
RETURN WITHOUT REIMBURSING THE PRICE
PAID THEREFOR.  3.) When the possessor is a holder in due course of a negotiable document
***Possession of movables acquired in good faith does not only create a
presumption of ownership but it is already equivalent to title.
***For possession of movables to be considered EQUIVALENT TO
TITLE, the following requisites must be present:
(1) the movable property must be acquired in good faith;
(2) the possession must be in the concept of owner.
***RULE OF IRREVINDICABILITY - when a movable property
is in the possession of one who has acquired it and holds it in good faith,
the true owner cannot recover it as a general rule for the title is valid even
against him.
EXCEPTIONS TO THE RULE:
1.) When the owner has lost the thing;
2.) When the owner has been unlawfully deprived thereof.
***If the movable has been acquired by the possessor in good faith at a
public sale, the owner can recover it only upon reimbursement of the price
paid by the possessor; otherwise, the owner can recover it without paying
any indemnity.
***“PUBLIC SALE” referred to in Article 559 which entitles the
possessor in good faith to reimbursement, is one where the has been public
notice of the sale and in which anybody has a right to bid and offer to buy.
***Unlawfully deprived – connotes the idea that the owner had been
divested of his property through illegal means such as by estafa, theft or
robbery.
***Lost – connotes misplacement or the missing of a thing.
Cases where the owner may no longer recover the movable property
even if he has lost the same or he has been unlawfully deprived thereof.
1.) If the possessor acquired the thing at a merchant’s store, or in fairs, or in
markets in accordance with the Code of Commerce and special laws;
2.) Where the possessor acquired the thing by sale under statutory power of
sale or under the order of a court of competent jurisdiction;
of title to goods or where the owner is barred by the principle of negotiable
instruments
4.) Where the owner is barred by reason of his own acts or neglect from
denying the seller’s title
5.) Where the owner can no longer recover the thing from the possessor by
reason of prescription.
ARTICLE 560
o Wild animals are possessed only while they are under one's
control; domesticated or tamed animals are considered domestic
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or tame if they retain the habit of returning to the premises of
the possessor.
***WILD ANIMALS are those which are found in their natural freedom,
such as wild boars and horses roaming the forest.
***DOMESTICATED OR TAMED ANIMALS, on the other hand, are
those which were formerly wild but which have been subdued and retained
the habit of returning to the premises of the possessor or owner.
***DOMESTIC OR TAME ANIMALS are those which are born or
reared under the control and care of man.
***WILD ANIMALS are considered possessed only while they are under
one’s control. Once they recover their natural freedom or once they are
restored to their original state of being free, they ceased to be under one’s
possession.
As a consequence, they immediately regain their status of being res
nullius and may thus be acquired by occupation.
***IN CASE OF DOMESTICATED ANIMALS, so long as the animals
retain the habit of returning to the premises of the possessor, the possession
thereof is not immediately lost by the simple fact that the animals are no
longer under the control of the possessor.
***The possessor or owner of domesticated animals has a period of twenty
(20) days counted from the occupation by another person within which
to reclaim them. After the expiration of this period, the animals can no
longer be recovered from its present possessor.
***DOMESTIC ANIMALS is considered as personal or movable
property;
ARTICLE 561
o One who recovers, according to law, possession unjustly
lost, shall be deemed for all purposes which may redound to
his benefit, to have enjoyed it without interruption. 
REQUISITES OF CONTINUOUS AND UNINTERRUPTED
POSSESSION:
1.) Possession was lost unlawfully or unjustly;
2.) Possessor was able to recover his possession by lawful means;
3.) The uninterrupted possession shall be beneficial to him.
***Continuous possession accorded to the possessor in good faith will
benefit him for purposes of ACQUISITIVE PRESCRIPTION.
EASEMENTS
ARTICLE 613 – EASEMENT
An EASEMENT OR SERVITUDE is an encumbrance IMPOSED
UPON AN IMMOVABLE for the benefit of another immovable
belonging to a different owner.
The immovable in favor of which the easement is established is called the
DOMINANT ESTATE; that which is subject thereto, the SERVIENT
ESTATE.
ARTICLE 614 – SERVITUDES
Servitudes may also be established FOR THE BENEFIT OF A
COMMUNITY, or OF ONE OR MORE PERSONS TO WHOM THE
ENCUMBERED ESTATE DOES NOT BELONG.
***Easement and Servitude interchangeably, they are not, strictly speaking,
synonymous.
***Easement – refers to the right enjoyed by one;
***Servitude – refers to the burden imposed upon the other;
***Easement are but the two aspects of the same concept;
***Easement is a REAL RIGHT; the right consists of a limited use and
enjoyment of the thing without possession and gives rise to an ACTION IN
REM in favor of the owner of the tenement of the easement and against any
possessor of the servient estate;
***Unlike Lease, an Easement does not give its holder a right of possession
over the property, but only a right of use for a special and limited purpose.
***Inasmuch as every easement or servitude is a limitation upon one’s
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ownership, it follows that no man has a right of servitude in a thing of
which he is the owner: Nulli res sua servit.
***If there is a merger in the same person of the ownership of the dominant
and servient estates, the easement is extinguished
ARTICLE 615 – KINDS OF EASEMENT (IMPORTANT)
Easements may be CONTINUOUS OR DISCONTINUOUS,
APPARENT OR NONAPPARENT.
CONTINUOUS EASEMENTS are those the use of which is or
may be incessant, without the intervention of any act of man.
DISCONTINUOUS EASEMENTS are those which are used at
intervals and depend upon the acts of man.
APPARENT EASEMENTS are those which are made known
and are continually kept in view by external signs that reveal the use
and enjoyment of the same.
NONAPPARENT EASEMENTS are those which show no
external indication of their existence.
ARTICLE 616 – POSITIVE OR NEGATIVE EASEMENT
Easements are also POSITIVE OR NEGATIVE.
A POSITIVE EASEMENT is one which imposes upon the
owner of the servient estate the obligation of allowing something to
be done or of doing it himself, and a NEGATIVE EASEMENT,
that which prohibits the owner of the servient estate from doing
something which he could lawfully do if the easement did not exist.
DIFFERENT CLASSES OF EASEMENTS:
1.) As to RECEPIENT OF BENEFIT:
a) Real- when the easement is in favor of another immovable;
b) Personal- when it is in favor of a community, or of one or more
persons to whom the encumbered estate does not belong
2.) As to SOURCE:
a) LEGAL – established by law; for public use or the interest of
private persons;
b) VOLUNTARY – established by will of the owners
3.) As to its EXERCISE:
a) CONTINUOUS – those the use of which is or may be incessant,
without the intervention of any act of man;
b) DISCONTINUOUS – those which are used at intervals and depend
upon the acts of man;
c) APPARENT – those which are made known and are continually ket
in view by external signs that reveal the use and enjoyment of the
same;
d) NON-APPARENT – those which show no external indication of
their existence;
e) POSITIVE EASEMENTS – those which impose upon the owner
of the servient estate the obligation of allowing something to be
done or of doing it himself;
f) NEGATIVE EASEMENTS – those which prohibit the owner of
the servient estate from doing something which he could lawfully do
if the easement did not exist.
***Example of CONTINUOUS EASEMENT is the EASEMENT OF
LIGHT AND VIEW;
***RIGHT OF WAY is an example of a DISCONTINUOUS
EASEMENT;
***It is the presence of physical or visual signs that classifies an easement
into APPARENT OR NAN-APPARENT;
***An easement can never consist in a personal prestation to do
on the part of the owner of the servient estate; the obligation imposed
upon him is always negative.
ARTICLE 617 – INSEPARABILITY OF EASEMENT
EASEMENTS ARE INSEPARABLE from the estate to which they
actively or passively belong.
ARTICLE 618 – INDIVISIBILITY OF EASEMENT
EASEMENTS ARE INDIVISIBLE. If the servient estate is divided
between two or more persons, the easement is not modified, and each of
them must bear it on the part which corresponds to him.
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CIVIL LAW REVIEWER
If it is the dominant estate that is divided between two or more persons,
each of them may use the easement in its entirety, without changing the
place of its use, or making it more burdensome in any other way. 

CHARACTERISTICS OF EASEMENTS:
1. It is a REAL RIGHT;
2. It is a RIGHT imposed over ANOTHER PROPERTY;
3. It is a LIMITATION UPON THE SERVIENT OWNER’s right of
ownership;
4. It is Solid
a RIGHTManilaCONSTITUTED OVERCo.
Corp. v. Bio Hong Trading AN195 IMMOVABLE;
SCRA 748 (1991)
When
5. ItBio Hong Tradingfrom
is inseparable Co. (BHTC) acquired
the estate a parcel
to which it of land from
actively or its prior owner, the
passively
samebelongs;
has already been subject to an easement of right of way in favor of the public.
Subsequently, the buyer BHTC constructed steel gates across the alley (to which the
6. It is INDIVISIBLE.
encumbrance was imposed) thereby precluding unhampered use thereof. Because of such
closure, Solid Manila Corp. (SMC) fi led an injunction case against BHTC claiming that
ever since, it had (as well as other residents of neighboring estates) made use of the above
private alley and maintained and contributed to its upkeep. When the case reached the
Court of Appeals, the appellate court held that since the buyer BHTC acquired title to the
property and the alley, there was a merger which resulted in the extinguishment of the
easement. SMC, however, claimed that the sale in favor of BHTC excluded the alley. The
Supreme Court ruled in favor of SMC. The Court explained —
It is true that the sale did include the alley. On this score, the Court rejects the petitioner’s
contention that the deed of sale‘excluded’ it, because as a mere right-of-way, it can not be
separated from the tenement and maintain an independent existence. Thus:
Art. 617. Easements are inseparable from the estate to which they actively or ARTICLE 619 – SOURCE OF EASEMENT
passively belong. Easements are established either by law or by the will of the owners. The
Servitudes are merely accessories to the tenements of which they form part. Although they former are called LEGAL and the latter VOLUNTARY EASEMENTS.
are possessed of a separate juridical existence, as mere accessories, they can not, however,
be alienated from the tenement, or mortgaged separately.
The fact, however, that the alley in question, as an easement, is inseparable from the main
MODES OF ACQUIRING EASEMENTS
lot is no argument to defeat the petitioner’s claims, because as an easement precisely, it
operates as a limitation on the title of the owner of the servient estate, specifi cally, his ARTICLE 620 – ACQUISITION OF CONTINUOUS AND
right to use (jus utendi). APPARENT EASEMENT
Hence, and so we reiterate, albeit the private respondent did acquire ownership over the
property –– including the disputed alley –– as a result of the conveyance, it did not acquire
the right to close that alley or otherwise put up obstructions thereon and thus prevent the CONTINUOUS AND APPARENT EASEMENTS are acquired
public from using it, because as a servitude, the alley is supposed to be open to the public. either by virtue of a TITLE or BY PRESCRIPTION OF TEN
The Court is furthermore of the opinion, contrary to that of the Court of Appeals, YEARS. (537a)
that no genuine merger took place as a consequence of the sale in favor of the private
respondent corporation. According to the Civil Code, a merger exists when ownership of
the dominant and servient estates is consolidated in the same person. Merger then, as can
ARTICLE 621 –COMPUTATION OF TIME OF POSSESSION
be seen, requires full ownership of both estates. (IMPORTANT)
One thing ought to be noted here, however. The servitude in question is a PNOTES
personal servitude, that is to say, one constituted not in favor of a particular tenement (a
real servitude) but rather, for the benefit of the general public.
CIVIL LAW REVIEWER
In order to acquire by prescription the easements referred to in the
preceding article, the TIME OF POSSESSION shall be computed
thus: in POSITIVE EASEMENTS, from the day on which the
owner of the dominant estate, or the person who may have made
use of the easement, commenced to exercise it upon the servient
estate; and in NEGATIVE EASEMENTS, from the day on which
the owner of the dominant estate forbade, by an instrument
acknowledged before a notary public, the owner of the servient
estate, from executing an act which would be lawful without the
easement. (538a)
ARTICLE 622 – ACQUISITION ONLY BY TITLE
CONTINUOUS NONAPPARENT EASEMENTS, AND
DISCONTINUOUS ONES, WHETHER APPARENT OR NOT,
may be acquired only by virtue of a title. (539)
***TWO MODES OF ACQUIRING EASEMENTS:
1.) BY TITLE;
2.) BY PRESCRIPTION
***All kinds of easements whether continuous or discontinuous, apparent
or non-apparent, positive or negative, may be acquired by title.
***Only continuous and apparent easements may be acquired by virtue of
prescription.
***An easement of right of way may be apparent but it is not a
continuous easement because its use is at intervals and depends upon
the acts of man. It can be exercised only if a man passes or puts his
feet over somebody else’s land. Hence, A RIGHT OF WAY IS NOT
ACQUIRABLE BY PRESCRIPTION.
***If the easement is both continuous and apparent, it may be
acquired by virtue of prescription within a period of ten (10) years.
The COMMENCEMENT OF THE TEN-YEAR PERIOD OF
PRESCRIPTION will depend on whether the easement is positive or
negative, as follows:
(a) If the EASEMENT IS POSITIVE, the 10-year period is
counted from the day on which the owner of the dominant estate, or the
person who may have made use of the easement, commenced to exercise
it upon the servient estate; or
(b) If the EASEMENT IS NEGATIVE, the 10-year period is
counted from the day on which the owner of the dominant estate forbade,
by an instrument acknowledged before a notary public, the owner of the
servient estate, from executing an act which would be lawful without the
easement.
The foregoing principles are best explained if we are going to consider the
acquisition of easement of light and view through prescription. At the
outset, it must be pointed out that a building may receive light in various
manners in the enjoyment of an easement of light, because the openings
through which the light penetrates may be made in one’s own wall, in the
wall of one’s neighbor, or in a party wall.
ARTICLE 623 – PROOF OF EASEMENT
The absence of a document 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. (540a)
***The PRESUMPTION is always against the existence of an easement
for “PROPERTY IS ALWAYS PRESUMED FREE FROM ANY AND
ALL ENCUMBRANCES”.
***If the EASEMENT IS ACQUIRED THROUGH PRESCRIPTION,
necessarily THERE IS NO DOCUMENT EVIDENCING ITS
EXISTENCE and the same MAY ONLY BE ESTABLISHED IN A
JUDICIAL PROCEEDING THROUGH PREPONDERANCE OF
EVIDENCE.
***If the EASEMENT, however, is one which CANNOT be acquired
through prescription and there is no document evidencing the same, or
such document is no longer available for whatever reason, the
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ABSENCEOF SUCH PROOF MAY BE CURED BY A DEED OF
RECOGNITION BY THE OWNER OF THE SERVIENT ESTATE.
ARTICLE 624 –EASEMENT BY APPARENT SIGN OR LEGAL
PRESUMPTION (IMPORTANT)
The existence of an apparent sign of easement between two
estates, established or maintained by the owner of both, shall be
considered, should either of them be alienated, as a title in order
that the easement may continue actively and passively, unless, at
the time the ownership of the two estates is divided, the contrary
should be provided in the title of conveyance of either of them, or
the sign aforesaid should be removed before the execution of the
deed. This provision shall also apply in case of the division of a
thing owned in common by two or more persons. (541a)
***It should be noted that while Article 624 declares that the easement is to
“continue” the easement actually arises for the fi rst time only upon
alienation of either estate, inasmuch as before that time there is no easement
to speak of, there being but one owner of both estates.
***Easement is not created till the division of the property.
REQUISITES FOR ACQUISITION OF EASEMENT UNDER
ARTICLE 624:
1. That there exist an apparent sign of servitude between two
estates;
2. That at the time of the establishment of such sign, the ownership
of the two estates resides in one person;
3. That the sign of the easement be established by the owner of
both estates because the article will not apply when the easement
is established by a person different from the owner;
4. That the ownership over the two estates is later on divided,
either by alienation or partition;
5. That at the time of division of ownership, nothing is stated in the
document of alienation or partition contrary to the easement nor
is the sign of the easement removed before the execution of the
document.
ARTICLE 625 –EFFECTS OF ESTABLISHMENT OF
EASEMENT
Upon the establishment of an easement, all the rights necessary for
its use are considered granted. (542)
ARTICLE 626- PROHIBITION ON THE ONWER OF DOMINANT
ESTATE
The owner of the dominant estate CANNOT use the easement
EXCEPT for the benefit of the immovable originally
contemplated. Neither can he exercise the easement in any other
manner than that previously established. 
RIGHTS AND OBLIGATIONS OF THE OWNERS OF THE
DOMINANT AND SERRVIENT ESTATES
ARTICLE 627 –EFFECT OF EASEMENT UPON THE RIGHTS OF
SERVIENT ESTATE
The OWNER OF THE DOMINANT ESTATE may make, at his own
expense, on the servient estate any works necessary for the use and
preservation of the servitude, but without altering it or rendering it
more burdensome.
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
inconvenience to the owner of the servient estate. (543a)
REQUIREMENTs:
(1) The work must be necessary for the use and preservation of the
servitude;
(2) The work is done at the expense of the owner of the dominant estate;
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(3) The work can be done without altering the servitude or rendering it more
burdensome;
(4) The owner of the servient estate is fi rst notifi ed of the intended work;
and
(5) The time and manner of making the work should be the most convenient
to the owner of the servient estate or it is done in such a manner that it
causes the least inconvenience to the owner of the servient estate.
ARTICLE 628 – SEVERAL DOMINANT ESTATES
Should there be several dominant estates, the owners of all of them
shall be obliged to contribute to the expenses referred to in the preceding
article, in proportion to the benefits which each may derive from the
work. Anyone who does not wish to contribute may exempt himself by
renouncing the easement for the benefit of the others.
If the OWNER OF THE SERVIENT ESTATE SHOULD MAKE USE
OF THE EASEMENT in any manner whatsoever, he shall also be
obliged to contribute to the expenses in the proportion stated, saving an
agreement to the contrary. (544)
ARTICLE 629 – NON – IMPAIRMENT ON THE USE OF
SERVITUDE
The owner of the servient estate CANNOT IMPAIR, in any manner
whatsoever, THE USE OF THE SERVITUDE.
Nevertheless, if by reason of the place originally assigned, or of the
manner established for the use of the easement, the same should become
very inconvenient to the owner of the servient estate, or should prevent
him from making any important works, repairs or improvements
thereon, it MAY BE CHANGED AT HIS EXPENSE, PROVIDED he
offers another place or manner equally convenient and in such a way that
no injury is caused thereby to the owner of the dominant estate or to those
who may have a right to the use of the easement. (545)
ARTICLE 630 – RIGHT OF THE OWNER OF SERVIENT
ESTATE
The OWNER OF THE SERVIENT ESTATE RETAINS the ownership
of the portion on which the easement is established, and may use the same
in such a manner as not to affect the exercise of the easement.
***When the easement has been established in a general way,
WITHOUT ANY SPECIFIC PURPOSE, it can be used for all the needs
of the dominant estate, and may be adopted to any new modification in
the tenement itself.
MODES OF EXTINGUISHMENT OF EASEMENTS
ARTICLE 631 – WAYS TO EXTINGUISH EASEMENT (MNECRR)
Easements are extinguished:
(1) By MERGER IN THE SAME PERSON of the ownership of the
dominant and servient estates;
(2) By NONUSER FOR TEN YEARS; with respect to discontinuous
easements, this period shall be computed from the day on which they ceased
to be used; and, with respect to continuous easements, from the day on
which an act contrary to the same took place;
(3) WHEN EITHER OR BOTH OF THE ESTATES FALL INTO
SUCH 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 use, unless when the use becomes possible,
sufficient time for prescription has elapsed, in accordance with the
provisions of the preceding number;
(4) By the EXPIRATION OF THE TERM OR THE FULFILLMENT
OF THE CONDITION, if the easement is temporary or conditional;
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CIVIL LAW REVIEWER
(5) By the RENUNCIATION of the owner of the dominant estate;
(6) By the REDEMPTION AGREED UPON BETWEEN THE
OWNERS OF THE DOMINANT AND SERVIENT ESTATES. (546a)
***In addition to the enumeration above, the following may
EXTINGUISH THE EASEMENT:
1. Annulment or Rescission of title constituting the easement;
2. Termination of the right of the grantor;
3. Abandonment of the servient estate;
4. Eminent Domain
***It is not necessary that the merger takes place to the full extent of the
property, it being sufficient that the merger takes place with regard to that
part affected by the servitude or that part for the benefit of which the
servitude was established.
***For easement to be extinguished under this mode, it is necessary that the
non-user must have lasted for a period of ten (10) years;
***The computation of the 10-year period of extinctive prescription shall
depend on whether the easement is continuous or discontinuous;
***If DISCONTINUOUS, the 10-year period is computed from
the day on which the easement was not used;
***If CONTINUOUS, the 10-year period is counted from the day
on which an act contrary to the easement took place;
***If the dominant estate is under a state of co-ownership, the use
of the easement by any of the co-owners will prevent the running of
the 10-year period of extinctive prescription by non-user;
***The renunciation of the easement by the owner of the dominant estate
must be specific, clear and express. Hence, a tacit renunciation will not be
sufficient.
***The redemption being referred to in paragraph 6 of Article 631 of
the New Civil Code is the release of the servient estate from the servitude
upon agreement of the owners of both estates and upon payment by the
owner of the servient estate of the corresponding consideration to the owner
of the dominant estate.
ARTICLE 632- FORM AND MANNER IN USING EASEMENT
THE FORM OR MANNER OF USING THE EASEMENT may
prescribe as the easement itself, and in the same way. (547a)
ARTICLE 633 – PREVENTION OF PRESCRIPTION
If the dominant estate belongs to several persons in common, the USE
OF THE EASEMENT BY ANY ONE OF THEM PREVENTS
PRESCRIPTION with respect to the others. 
LEGAL EASEMENTS
ARTICLE 634 – OBJECT OF LEGAL EASEMENT
EASEMENTS IMPOSED BY LAW have for their object either public
use or the interest of private persons. (549)
ARTICLE 635 – GOVERNING LAWS
All MATTERS CONCERNING EASEMENTS ESTABLISHED FOR
PUBLIC OR COMMUNAL USE shall be governed by the special laws
and regulations relating thereto, and, in the absence thereof, by the
provisions of this Title. (550)
ARTICLE 636 – EASEMENT : PRIVATE PERSON FOR PRIVATE
USE
Easements established by law in the interest of private persons or for
private use shall be governed by the provisions of this Title, without
prejudice to the provisions of general or local laws and ordinances for the
general welfare.
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CIVIL LAW REVIEWER
These easements may be modified by agreement of the interested parties,
whenever the law does not prohibit it or no injury is suffered by a third
person.
CLASSES OF PRIVATE LEGAL EASEMENTS:
1. Easement relating to waters;
2. Easement of right of way;
3. Easement of party wall;
4. Easement of Light and View;
5. Easement of Drainage of Buildings;
6. Easement of Distance;
7. Easement of Nuisance;
8. Easement of lateral and subjacent support
EASEMENT RELATING TO WATERS
ARTICLE 637 – EASEMENT OF DRAINAGE OF WATERS
LOWER ESTATES are OBLIGED to receive the waters which
naturally and without the intervention of man descend from the higher
estates, as well as the stones or earth which they carry with them.
The owner of the lower estate cannot construct works which will impede
this easement; neither can the owner of the higher estate make works which
will increase the burden. (552)
ARTICLE 638 – EASEMENT FOR PUBLIC USE
The banks of rivers and streams, even in case they are of private
ownership, are subject throughout their entire length and within a zone of
three meters along their margins, to the easement of public use in the
general interest of navigation, floatage, fishing and salvage.
Estates adjoining the banks of navigable or floatable rivers are,
furthermore, subject to the easement of towpath for the exclusive service of
river navigation and floatage.
If it be necessary for such purpose to occupy lands of private ownership, the
proper indemnity shall first be paid. (553a)
ARTICLE 639. EASEMENT OF ABUTMENT OF DAM
Whenever for the diversion or taking of water from a river or brook, or
for the use of any other continuous or discontinuous stream, it
SHOULD BE NECESSARY TO BUILD A DAM, and the person who is
to construct it is not the owner of the banks, or lands which must support it,
he may establish the easement of abutment of a dam, after payment of the
proper indemnity. (554)
ARTICLE 640 – EASEMENT OF DRAWING WATERS
Compulsory easements for drawing water or for watering animals CAN
BE IMPOSED ONLY for reasons of public use in favor of a town or
village, after payment of the proper indemnity. (555)
ARTICLE 641- EASEMENT OF DRAWING WATER:
OBLIGATION OF OWNER OF SERVIENT ESTATES
Easements for drawing water and for watering animals carry with them
the obligation of the owners of the servient estates to allow passage to
persons and animals to the place where such easements are to be used,
and the indemnity shall include this service. (556)
ARTICLE 642- EASEMENT OF AQUEDUCT
Any person who may wish to use upon his own estate any water of which
he can dispose shall have the right to make it flow through the
intervening estates, with the obligation to indemnify their owners, as well
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CIVIL LAW REVIEWER
as the owners of the lower estates upon which the waters may filter or
descend. (557)
ARTICLE 643. – OBLIGATION OF A GRANTEE OF EASEMENT
OF AQUEDUCT
One desiring to make use of the right granted in the preceding article is
obliged:
(1) To prove that he can dispose of the water and that it is sufficient for the
use for which it is intended;
(2) To show that the proposed right of way is the most convenient and the
least onerous to third persons;
(3) To indemnify the owner of the servient estate in the manner determined
by the laws and regulations. (558)
ARTICLE 644. EASEMENT OF AQUEDUCT : PRIVATE
INTEREST
The EASEMENT OF AQUEDUCT for private interest cannot be imposed
on buildings, courtyards, annexes, or outhouses, or on orchards or gardens
already existing. (559)
ARTICLE 645 – EASEMENT OF AQUEDUCT : RIGHT TO CLOSE
OR FENCE
The easement of aqueduct does not prevent the owner of the servient
estate from closing or fencing it, or from building over the aqueduct in
such manner as not to cause the latter any damage, or render necessary
repairs and cleanings impossible. (560)
ARTICLE 646. EASEMENT OF AQUEDUCT: CONTINUOUS AND
APPARENT
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 needs
of the dominant estate, or upon a schedule of alternate days or hours. (561)
ARTICLE 647 – RIGHT TO CONSTUCT STOP LOCK OR SLUICE
GATE
One who for the purpose of irrigating or improving his estate, has to
construct a stop lock or sluice gate in the bed of the stream from which
the water is to be taken, may demand that the owners of the banks
permit its construction, after payment of damages, including those caused
by the new easement to such owners and to the other irrigators. (562)
ARTICLE 648 – GOVERNNG LAW
The establishment, extent, form and conditions of the servitudes of
waters, to which this section refers, shall be governed by the special laws
relating thereto insofar as no provision therefor is made in this Code.
***EASEMENT OF DRAINAGE OF WATERS - An easement exists
when, based on the physical condition of two estates, waters descend
naturally and without the intervention of man from a higher estate (the
dominant estate) to a lower estate (the servient estate).
***EASEMET OF AQUEDUCT - If a person wishes to use upon his
estate any water of which he can dispose, he shall have the right to make it
flow through intervening estates.
REQUISITES FOR EASEMENT OF AQUEDUCT:
(1) That he who wants to establish the easement of aqueduct must be able to
prove that he can dispose of the water;
(2) He must also prove that it is suffi cient for the use for which it is
intended;
(3) The proposed right of way is the most convenient and the least onerous
to third persons affected; and
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(4) He must indemnify the owners of the servient estates (intervening
estates), as well as the owners of the lower estates upon which the waters
may filter or descend.
***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 needs of the dominant estate, or
upon a schedule of alternate days or hours.
***An easement of aqueduct may be acquired either by title or by
prescription.
EASEMENT OF RIGHT OF WAY
ARTICLE 649.
The OWNER, OR ANY PERSON who by virtue of a real right may
CULTIVATE OR USE ANY IMMOVABLE, which is SURROUNDED
BY OTHER IMMOVABLES PERTAINING TO OTHER PERSONS
AND WITHOUT ADEQUATE OUTLET TO A PUBLIC HIGHWAY,
is entitled to demand a right of way through the neighboring estates, after
payment of the proper indemnity.
Should this EASEMENT BE ESTABLISHED IN SUCH A MANNER
THAT ITS USE MAY BE CONTINUOUS FOR ALL THE 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.
In case the right of way is limited to the necessary passage for the
cultivation of the estate surrounded by others and for the gathering of its
crops through the servient estate without a permanent way, the indemnity
shall consist in the payment of the damage caused by such encumbrance.
This easement is not compulsory if the isolation of the immovable is due
to the proprietor’s own acts. (564a)
ARTICLE 650.
The easement of right of way 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 to a public highway may be the
shortest. (565)
ARTICLE 651.
The width of the easement of right of way shall be that which is sufficient
for the needs of the dominant estate, and may accordingly be changed from
time to time. (566a)
ARTICLE 652.
Whenever a piece of land acquired by sale, exchange or partition, is
surrounded by other estates of the vendor, exchanger, or co-owner, he shall
be obliged to grant a right of way without indemnity.
In case of a simple donation, the donor shall be indemnified by the donee
for the establishment of the right of way. (567a)
ARTICLE 653.
In the case of the preceding article, if it is the land of the grantor that
becomes isolated, he may demand a right of way after paying an indemnity.
However, the donor shall not be liable for indemnity. (n)
ARTICLE 654.
If the right of way is permanent, the necessary repairs shall be made by the
owner of the dominant estate. A proportionate share of the taxes shall be
reimbursed by said owner to the proprietor of the servient estate. (n)
ARTICLE 655.
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CIVIL LAW REVIEWER
If the right of way granted to a surrounded estate ceases to be necessary
because its owner has joined it to another abutting on a public road, the
owner of the servient estate may demand that the easement be extinguished,
returning what he may have received by way of indemnity. The interest on
the indemnity shall be deemed to be in payment of rent for the use of the
easement.
The same rule shall be applied in case a new road is opened giving access to
the isolated estate.
In both cases, the public highway must substantially meet the needs of the
dominant estate in order that the easement may be extinguished. (568a)
ARTICLE 656.
If it be indispensable for the construction, repair, improvement, alteration
or beautification of a building, to carry materials through the estate of
another, or to raise therein scaffolding or other objects necessary for the
work, the owner of such estate shall be obliged to permit the act, after
receiving payment of the proper indemnity for the damage caused him.
(569a)
ARTICLE 657.
Easements of the right of way for the passage of livestock known as animal
path, animal trail or any other, and those for watering places, resting places
and animal folds, shall be governed by the ordinances and regulations
relating thereto, and, in the absence thereof, by the usages and customs of
the place.
Without prejudice to rights legally acquired, the animal path shall not
exceed in any case the width of 75 meters, and the animal trail that of 37
meters and 50 centimeters.
Whenever it is necessary to establish a compulsory easement of the right
of way or for a watering place for animals, the provisions of this Section
and those of articles 640 and 641 shall be observed. In this case the width
shall not exceed 10 meters.
SUCCESSION
SUCCESION – A mode of acquisition by virtue of which the property,
rights and obligations to the extent of the value of the inheritance, of a
person are transmitted through his death to another or others either by his
will or by operation of law; (ARTICLE 774)
DECEDENT – A general term applied to person whose property is
transmitted through succession, whether or not he left a will; IF HE LEFT
A WILL, he is also called TESTATOR. (ARTICLE 775)
***INTESTATE – If there is no will;
WHAT ARE INCLUDED IN INHERITANCE? – It includes ALL THE
PROPERTY, RIGHTS AND OBLIGATIONS of a person which are not
extinguished by his death; (ARTICLE 776)
and ALSO those which have accrued thereto SINCE THE OPENING OF
THE SUCCESSION; (ARTICLE 781).
EXAMPLE OF RIGHTS EXTINGUISHED BY DEATH:
 Right to Claim acknowledgement or recognition as a natural child;
 Right to hold public office or private office or job;
 Personal Rights;
EXAMPLE OF RIGHTS NOT EXTINGUISHED BY DEATH:
 Right to bring or continue an action for forcible entry or unlawful
detainer;
 Right to cancel the execution of a document necessary for
convenience;
 Right to continue a lease contract either as lessor or lessee; UNLESS
otherwise provided in the contract;
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OBLIGATIONS NOT EXTINGUISHED BY DEATH;
 In GENERAL, ALL OBLIGATIONS ARE TRANSMISSIBLE
unless PURELY PERSONAL OR NON-TRANSFERABLE BY
LAW OR CONTRACT;
***Children of a decedent CANNOT BE HELD PERSONALLY
LIABLE with their own individual properties, despite substitution in a case
of their deceased father. The remedy of the creditor is to proceed against the
estate of the deceased father;
***MONEY DEBTS ARE NOT INHERITED AT ALL; That while the
debts of the deceased still remain unpaid, no residue may be divided among
the heirs, legatees, and devisees. Indeed, the court may order the sale of
sufficient property for the satisfaction of the debts and the heirs cannot
question this. Such a step is necessary for the eventual partition of the
estate. No residue may also be divided among the creditors of said heirs
without first settling the debts of the deceased.
***A creditor of an HEIR (who is not the creditor of the DECEASED),
who intervenes in the estate proceedings, cannot therefore ask the court to
sell the properties which the HEIR-DEBTOR expects to receive. This is
because the debts of the DECEASED himself must first be paid. Then and
only then can we determine if there is a sufficient residue left for the HEIRS
or for the HEIRS’ CREDITORS;
SAMPLE CASE:
FACTS: A has a child B who has a child C. B is indebted to a stranger, but
dies before he pays the same. A then died, leaving C as heir. In A’s intestate
proceedings, the stranger presents his claim for the credit.
QUESTION: Is C bound to pay for the debt, or will A’s estate answer, or
will no one be held responsible?
ANSWER: Neither A’s estate nor C is liable, for neither contracted the
debt, nor may it be said that C is inheriting from B — for the truth is, C in
the case presented, is inheriting only from A. Therefore, the creditor-
stranger must shoulder the loss himself.
WHEN RIGHTS TO SUCCESSION IS TRANSMITTED: AT THE
MOMENT OF THE DEATH OF THE DECEDENT;
2 KINDS OF PRESUMPTION OF DEATH:
 ORDINARY – An absentee shall be presumed dead for the
purposes of opening his succession – AT THE END OF 10
YEARS or 5 YEARS (in case he disappeared after the age of 75);
 EXTRAORDINARY – Under Article 391, the following shall be
PRESUMED DEAD FOR ALL PURPOSES including the division
of the estate;
o 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;
o A person in the armed forces who has taken part in war, and
has been missing for four years;
o A person who has been in danger of death under other
circumstances and his existence has not been known for four
years.
***SUCCESSION REALLY TOOK PLACE 4 YEARS
BEFORE BUT ACTUAL DIVISION OF THE ESTATE WILL
ONLY BE AT THE END OF 4 YEARS;
KINDS OF SUCCESSION: (ARTICLE 778)
1. TESTAMENTARY – that which results from the designation of an
heir, made in a will executed in the form prescribed by law
(ARTICLE 779);
 May be done thru a will or a codicil;
 May be NOTARIAL or HOLOGRAPHIC;
 It is PREFERRED than Legal or Intestate;
2. LEGAL OR INTESTATE; OR
3. MIXED – that which is effected partly by will and partly by
operation of law; (ARTICLE 780)
HEIRS, LEGATEES AND DEVISEES; (ARTICLE 782)
1. HEIR – a person called to the succession either by the provision of
a will or by operation of law;
a. 2 KINDS:
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i. COMPULSORY – an heir called by law to succeed to a heirs;
portion of the testator’s estate known as the LEGITIME; PROPERTIES NOT INCLUDED unless INCLUDED;
ii. VOLUNTARY - an heir called to succeed to the whole or ACQUIRED BY expressly appear in the
an aliquot part of the disposable free portion of the TESTATOR will;
hereditary estate by virtue of the will of the testator AFTER
***In LEGAL OR INTESTATE SUCCESSION, all heirs are called EXECUTION OF
LEGAL or INTESTATE HEIRS; THE WILL
2. DEVISEES – a person to whom a gift of real property is/are given
by virtue of a will; TESTAMENTARY SUCCESSION
3. LEGATEES - a person to whom a gift of personal property is/are WILLS IN GENERAL
given by virtue of a will; WILLS - is an act whereby a person is permitted, with the formalities
***Devises and Legacies can only be charged against the disposable prescribed by law, to control to a certain degree the disposition of his estate,
free portion; to take effect after his death; (ARTICLE 783);
 MAKING OF A WILL IS A STRICTLY PERSONAL ACT;
DISTINGUISH (ARTICLE 784)(mechanical act of drafting may be entrusted to
another)
HEIRS DEVISES AND LEGACIES  DETERMINATION OF DESIGNATION OF INHERITANCE
Succeed to an indeterminate or Always succeed to individual items CANNOT BE LEFT TO A THIRD PERSON (ARTICLE 785);
aliquot portion of the decedent’s of property; succeed to particular  DISTRIBUTION OF SPECIFIC PROPERTY OR SUMS OF MONEY
hereditary estate; succeed to title; MAY BE ENTRUSTED TO THIRD PERSONS; (ARTICLE 786);
universal title;  THIRD PERSON CANNOT BE MADE TO DETERMINE THE
Succeed either by means of a will or Always succeed by means of a will; OPERATIVENESS OF THE WILL; (ARTICLE 787);
by operation of law  IN CASE OF DOUBT, DISPOSITION THAT WILL MAKE THE
WILL OPERATIVE SHALL BE PREFERRED; (ARTICLE 788);
VOLUNTARY HEIR DEVISES AND  In the interpretation of wills, when an uncertainty arises on the face of
LEGACIES the wills, as to the application of only of its provisions, the testator’s
IN CASE OF INSTITUTION of VALID insofar as they intention is to be ascertained from the words of the wills, taking into
PRETERITION HEIRS is ANNULED are not inofficious or consideration the circumstances under which it was made. (ARTICLE
ENTIRELY; does not affect the 789).
legitime of compulsory  WILL MUST BE INTERPRETED IN THEIR ORDINARY AND
heirs; GRAMMATICAL SENSE, UNLESS OTHERWISETHE
IN CASE OF INSTITUTION of VALID insofar as they INTENTION OF THE TESTATOR; (ARTICLE 790).
IMPERFECT OR HEIRS is ANNULED are not inofficious or  WILLS MUST BE INTERPRETED AS A WHOLE; (ARTICLE
DEFECTIVE ENTIRELY; does not affect the 791).
DISINHERITANCE legitime of compulsory

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GENERAL RULE: What are given by the will are only those properties
already possessed and owned by the testator AT THE TIME THE WILL
WAS MADE, NOT THOSE ACQUIRED AFTER;
EXCEPTIONS:
1. EXPRESSLY STIPULATED IN THE WILL;
2. IF THE WILL IS REPUBLISHED OR MODIFIED BY A
SUBSEQUENT WILL OR CODICIL;
3. IF TESTATOR ERRONEOUSLY THOUGHT HE OWNED
CERTAIN PROPERTIES;
4. LEGACY OF CREDIT OR REMISSSION ARE EFFECTIVE
ONLY AS REGARDS THAT PART OF THE CREDIT OR
DEBT EXISTING AT THE TIME OF THE DEATH OF THE
TESTATOR;
***ARTICLE 793 applies also to Instituted Heirs (since the law makes no
distinction);
***VALIDITY OF AW WILL AS TO ITS FORM DEPENDS UPON THE
OBSERVANCE OF THE LAW AT THE TIME IT IS MADE; (ARTICLE
795);
2 KINDS OF VALIDITY:
1. EXTRINSIC VALIDITY – refers to the forms and solemnities
needed;
2. INTRINSIC VALIDITY – refers to the legality of the provisions in
an instrument, contract or will;
TESTAMENTARY CAPACITY AND INTENT (ARTICLES 796 –
803)
GENERAL RULE: ALL persons may make a WILL;
EXCEPTION: Those who are expressly prohibited by law;
GENERAL QUALIFICATIONS TO MAKE A WILL:
1. 18 years old;
2. Soundness of mind at the time the will is made;
REQUISITES FOR SOUNDNESS OF MIND:
1. Testator knows the nature of the estate to be disposed of;
2. Testator knows the proper objects of his bounty; (children, wife,
etc.);
3. Testator knows the character of the testamentary act;
GENERAL RULE: PRESUMPTION ON SOUNDNESS OF MIND
EXCEPTION: INSANITY
***He who alleges Insanity, must prove the same;
Supervening incapacity does not invalidate an effective will, nor is the will
of an incapable person validated by the supervening of capacity;
(ARTICLE 801).
FORMS OF WILLS – (ARTICES 804 -819)
KIND OF WILLS:
1. ORDINARY OR NOTARIAL WILL – that which requires, among
other things, an attestation clause, and acknowledgement before a
notary public;
2. HOLOGRAPHIC WILL – a will being written entirely, from the
date to the signature, in the handwriting of the testator;
***EVERY WILL MUST BE IN WRITING and executed in a language
or dialect known to the testator;
***It is the attestation clause which contains the utterances reduced into
writing of the testamentary witnesses themselves –– it is the witnesses, and
not the testator, who are required under Art. 805 of the new Civil Code to
state the number of pages used upon which the will was written.
REQUIREMENTS OF A NOTARIAL WILL:
1. Will MUST BE IN WRITING;
2. Will must be executed in a language or dialect known to the testator;
3. Will MUST BE SUBSCRIBED (SIGNED) AT THE END thereof
by the testator himself or by the testator’s name written by another
person in his presence, and by his express direction;
***A testator can sign with his thumbmark or with his initials, or even with
a rubber stamp or an engraved dye, provided he intends the same to be his
signature;
***Somebody else may write the TESTATOR’S NAME for the latter,
provided this is done in the latter’s presence and at the latter’s express
direction. (ARTICLE 806)
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***The delegate must sign in the TESTATOR’S PRESENCE [this does not
necessarily mean that the testator must actually see the signing; it is enough
that he could have done so, or felt it — (as when he is blind) — without any
physical obstruction, had he wanted to];
***“Express direction” — means that the delegate must be expressly
authorized to do so. Hence, mere knowledge on his part that the will is
being signed in his behalf or his acquiescence to such an act is NOT
sufficient. However, an express direction may be given by the testator even
without using words — mere clear gestures or motions or conduct is
sufficient;
***ATTESTATION – consists in witnessing the testator’s execution of the
will on order to see and take note mentally that those things are done which
the statute requires for the execution of a will and that the signature of the
testator exists as a fact;
PURPOSES OF ATTESTATION CLAUSE:
1. To preserve in permanent form a record of the facts attending the
execution of the will so that in case of failure of the memory of the
subscribing witnesses, or any other casualty, they may still be
proved;
2. To render available proof that there has been a compliance with the
statutory requisites for the execution of the will;
3. To minimize the commission of fraud or undue influence;
***SUBSCRIPTION – the signing of the witnesses’ names upon the same
paper for the purpose of identifying such paper as the will which was
executed by the testator;
PURPOSE OF REQUIRING “PRESENCE”: to avoid fraudulent
substitution of the will; and to make more difficult the invention of false
testimony by the witnesses, since they may be the witnesses of one another.
***The testator or the person requested by him to write his name, and the
instrumental witnesses of the will shall sign each and every page thereof
except the last, on the left margin.
***Failure to have the marginal signatures of the testator
and of the witnesses, when needed, is a FATAL DEFECT. Thus, even
if the second page bears the signature or thumb mark, as the case may be, of
the testator, but absent on said first page, the will cannot be admitted to
probate.
***A notarial will is NOT a public instrument, although acknowledged;
RULES WHEN TESTATOR IS DEAF (ARTICLE 807)
1. If testator cannot read the will (illiterate), 2 persons must
communicate its contents to him;
2. 2 persons designated neeed not be the attesting witnesses;
3. Must be proved in the probate proceedings;
RULES IF TESTATOR IS BLIND; (ARTICL E 808)
 MUST BE READ TWICE;
a. by subscribing witnesses;
b. by the notary public;
QUESTION: If a testator is a deaf-mute and also blind, may he still
make a will?
ANSWER: NO, unless in some way, the contents thereof may properly be
communicated to him in accordance with the legal requirements;
FORMALITIES OF A HOLOGRAPHIC WILL:
1. Language must be known to the testator;
2. Will must be entirely written in the hand of the testator himself;
3. Will must be DATED;
4. Will must be signed by the testator himself;
5. There must be ANIMUS TESTANDI;
6. Must be executed at the time that holographic wills are allowed, not
before, the time of death being immaterial;
PROBATE OF HOLOGRAPHIC WILLS: ( ARTICLE 811)
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 Proof of identity of the signature and handwriting of the testator is
important, otherwise, the will cannot be valid;
 Probate may be; UNCONTESTED or CONTESTED;
 If UNCONTESTED, at least 1 identifying witness is required to
avoid possibility of fraud; If no witness is available, experts may be
resorted to;
 IF CONTESTED, at least 3 identifying witnesses should be
required;
FORMALITIES FOR WILLS EXECUTED BY ALIENS ABROAD:
(ARTICLE 816)
 An alien abroad may make a will in accordance with the formalities
(extrinsic validity) prescribed by the law of:
(a) the place of his residence or domicile;
(b) his own country or nationality;
(c) the Philippines;
(d) the law of the place of execution.
***JOINT WILLS are those which contain in ONE instrument the will of
two or more persons jointly signed by them; (Under the law, they are
VOID);
***RECIPROCAL OR MUTUAL WILLS - those that provide that the
survivor of the testators will succeed to all or some of the properties of the
decedent.
NOTE: Mutual wills or reciprocal wills by them
are VALID, but if made in one instrument, they are void, not
because they are reciprocal, but because they are joint.
WITNESSES TO WILLS (ARTICLE 820-824)
QUALIFICATIONS FOR WITNESSES TO NOTARIAL WILLS:
1. OF SOUND MIND;
2. AT LEAST 18 YEARS;
3. BE ABLE TO READ AND WRITE;
4. NOT BLIND, DEAF, OR DUMB;
5. DOMICILED IN THE PHILIPPINES;
6. NOT HAVE BEEN CONVICTED OF FALSIFICATION OF
A DOCUMENT; PERJURY; OR FALSE TESTIMONY;
EFFECT OF PARDON:
(a) If the pardon was given because of the man’s innocence, as when
somebody else had been proved to be the really guilty person, he can now
act as a witness to a will. This is because there is no mental dishonesty.
(b) If the absolute pardon was an act of Executive grace of clemency, it is
submitted that the disqualification remains, for even an absolute pardon
does not remove civil consequences. The would-be witness still has a taint
of mental dishonesty.
WITNESSES CANNOT INHERIT (ARTICLE 823)
-Under such provision, persons named are incapacitated to inherit, but not
incapacitated as witnesses;
DISQUALIFICATION EXTENDS TO:
1. WITNESS;
2. SPOUSE OF THE WITNESS;
3. PARENT OF THE WITNESS;
4. CHILD OF THE WITNESS;
5. ANYONE CLAIMING THE RIGHT OF SAID WITNES, SPOUSE,
PARENT OR CHILD;
EFFECT IF WITNESS IS A COMPLUSORY HEIR:
 Still entitled to the LEGITIME; but not insofar as he ahs been given
the free portion or an excess of his legitime;
CODICILS AND INCORPORATION BY REFERENCE (ARTICLE
825 -827)
CODICIL – a supplement or addition to a will, made after the execution of
a will and annexed to be taken as a part thereof;
***must be made in accordance with formalities of a will;
***Incorporation can be done ONLY in Notarial will; (Article 827);
REVOCATION OF WILLS AND TESTAMENTARY DISPOSITIONS
(ARTICLE 828-834)
***Revocable any time before the death of testator; (ARTICLE 828)
CONFLICTS RULES FOR REVOCATION OF WILLS
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CIVIL LAW REVIEWER
(A) FOR REVOCATION OUTSIDE THE PHILIPPINES.
1) If not domiciled in the Philippines —
a) follow law of place where will was MADE
b) or follow law of place where testator was DOMICILED at
the time.
2) IF DOMICILED IN THE PHILIPPINES (NOT PROVIDED FOR
IN THE LAW) —
a) follow law of the Philippines (since his domicile is here)
— PROCEEDINGS for they are invested with public interest, and if estoppel
b) or follow the general rule of lex loci celebrationis of the
REVOCATION. (Art. 17).
(B) IF REVOCATION IS IN THE PHILIPPINES, FOLLOW PHILIPPINE
LAW.(CIVIL CODE).
***Intention to revoke must be proved;
REPUBLICATION AND REVIVAL OF WILLS (ARTICLE 835 -837)
REPUBLICATION – the process of re-establishing a will, which has
become useless because it was void, or had been revoked;
HOW MADE?
(a) re-execution of the original will (the original provisions are
COPIED)
(b) execution of a codicil (also known as implied republication).
***A will republished by a codicil is governed by a statute enacted
subsequent to the execution of the will, but which was operative when the
codicil was executed;
PROBATE OF WILLS (ARTICLE 838 – 839)
PROBATE – is the act of proving before a competent court the due
execution of a will by a person possessed of testamentary capacity, as well
as approval thereof by said court;
WHY THE NEED TO PROBATE?
It is essential because under the law “no will shall pass either real or
personal property unless it is proved and allowed in accordance with the
Rules of Court.’’
AS A GENERAL RULE, courts in probate proceedings are
limited only to passing upon the extrinsic validity of the will sought to be
probated and the compliance with the requisites or solemnities prescribed
by law.
Well-entrenched is the rule that a co-owner can only alienate his pro
indiviso share in the co-owned property.
The RULE OF ESTOPPEL DOES NOT APPLY TO PROBATE
would be applied, the ascertainment of the truth may be blocked. This
should be avoided for the primary purpose of a probate is not the protection
of the interest of living persons.
MATTERS THAT SHOULD BE BROUGHT UP BEFORE THE
PROBATE COURT:
 Determination of Heirs;
 Proof of Filiation;
 Determination of estate of decedent; and
 Claims thereto;
GROUNDS FOR DISALLOWANCE OF A WILL (ARTICLE 839)
***list is EXCLUSIVE;
(1) If the formalities required by law have not been complied with;
(2) If the testator was insane, or otherwise mentally incapable of making a
will, at the time of its execution;
(3) If it was executed through force or under duress, or the infl uence of
fear, or threats;
(4) If it was procured by undue and improper pressure
and infl uence, on the part of the benefi ciary or of some other person;
(5) If the signature of the testator was procured by fraud;
(6) If the testator acted by mistake or did not intend that the instrument he
signed should be his will at the time of affi xing his signature thereto.
INSTITUTION OF HEIR (ARTICLE 840 – 856)
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CIVIL LAW REVIEWER
INSTITUTION OF HEIR - it is an act by virtue of which a testator
designates in his will the person o persons who are to succeed him in his
property and transmissible rights and obligations; (ARTICLE 840).
***There can only be an instituted heir in TESTAMENTARY
SUCCESSION;
GENERAL RULE: A TESTATOR MAY DISPOSE BY WILL ALL
OF HIS ESTATE OR ANY PART OF IT IN FAVOR OF ANY
PERSON HAVING CAPACITY TO SUCCEED;
EXCEPT: IF THERE IS COMPULSORY HEIRS; (Legitime must be
respected); (ARTICLE 842)
***If There is doubt in determining as to who was instituted in a will, NO
ONE INHERITS;
WHY NOT DIVIDE THE ESTATE TO ALL?
-To divide would be to frustrate the testators intention;
**Mere error in designation of name or circumstances is NOT important as
long as the intent is CLEAR, and there is POSITIVE IDENTIFICATION;
(ARTICLE 844)
***Disposition in favor of UNKNOWN PERSONS shall be VOID; unless
by SOME EVENT OR CIRCUMSTANCE his identity BECOMES
CERTAIN; (ARTICLE 845).
***Institution of a compulsory heir to the legitime is VALID but
SUPERFLUOUS (unnecessary since by law, he is entitled to it)
***Institution of a voluntary heir (not compulsory heir) to the legitime is of
course VOID
*** COLLECTIVE INSTITUTION shall be considered
INDIVIDUALLY INSTITUTED; unless it clearly appears that the
intention of the testator was otherwise (ARTICLE 847)
***If the testator should institute his brothers and sisters, and he has some
of full blood and others of half blood, the inheritance shall be distributed
equally, unless a different intention appears. (ARTICLE 848);
***The statement of a false cause for the institution of an heir shall be
considered as not written, unless it appears from the will that the testator
would not have made such institution if he had known the falsity of such
cause.(ARTICLE 850)
REASON: The real cause is the testator’s liberality;
***ARTICLE 852 WILL ONLY APPLY IF THE INTENTION OF THE
TESTATOR IS TO GIVE ALL OR THE WHOLE ESATE TO
INSTITUTED HEIRS;
PRETERITION – omission of one, some, or all of the compulsory heirs in
the direct line, whether living at the time of the execution of the will or born
after the death of the testator; (ARTICLE 854)
EFFECT OF PRETERITION: INSTITUTION OF HEIR IS
ANNULLED; However DEVISES AND LEGACIES SHALL BE
VALID INSOFAR AS THEY ARE NOT INOFFICIOUS;
***Article 854 talks about TOTAL omission in the inheritance; and that the
person omitted is a COMPULSORY HEIR;
***If a compulsory heir is named in the will, but he is not given any share,
although there is no express disinheritance, there is preterition;
***if a compulsory heir is given a share in the inheritance no matter how
small, there is no preterition;
QUESTION: IS THE OMISSION OF THE SURVIVING SPOUSE
CONSTITUTE PRETERITION ?
ANSWER: NO. The surviving spouse is not in the direct line, her
omission in the will does not constitute preterition.
***A voluntary heir who dies before the testator transmits nothing to his
heirs;
***A compulsory heir who dies before the testator, a person incapacitated
to succeed, and one who renounces the inheritance, shall transmit no right to
his own heirs; (ARTICLE 856)
SUBSTITUTION OF HEIR (ARTICLE 857 – 870)
SUBSTITUTION - is the appointment of another heir in default of or after
the heir originally instituted; (ARTICLE 857);
KINDS OF SUBSTITUTION: (ARTICLE 858)
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CIVIL LAW REVIEWER
 SIMPLE OR COMMON – the testator designate one or more
persons to substitute the heir or heirs instituted in case such heir or
heirs should
o Die before him;
o Renounce or repudiates;
o Be Incapacitated; (ARTICLE 859)
 BRIEF SUBSTITUTION – When 2 or more heir takes place one
heir; OR COMPEDIOUS – When one takes the place of 2 or more
heir; (ARTICLE 860);
 RECIPROCAL – instituted heirs are also made the substitutes of
each other (ARTICLE 861)
***Article 861 also applies to Legacy and devises;
GENERAL RULE: If the substitute inherits, he must fulfill the conditions
imposed on the original heir;
EXCEPTIONS:
(1) If the testator has expressly provided the contrary (this must appear in
the will);
(2) If the charges or conditions are personally applicable, only to the heir
instituted; (ARTICLE 862).
 FIDEICOMMISSARY SUBSTITUTION – is that by virtue of
which a testator institutes a first heir, and charges him to preserve
and transmit the whole or part of the inheritance later on to a second
heir. (ARTICLE 863);
***Both heirs inherit the property or right to it
SIMULTANEOUSLY, although the enjoyment and possession
are SUCCESSIVE;
PURPOSE: This is necessary for the prosperity and prestige of the
family, bearing in mind the lack of intelligence, weakness of
character, and vanity and prodigality of the descendants to whom the
property may go.
REQUISITES AND LIMITATIONS OF THE FIDEICOMMISSARY
SUBSTITUTION
(a) There must be a FIRST HEIR called primarily or preferentially to
the enjoyment of the property.
(b) There must be an obligation clearly imposed upon him to preserve and
transmit to a third person the whole or part of the inheritance (part only if
the substitution refers merely to that part).
(c) A SECOND HEIR.
(d) The 1st and the 2nd heirs must be only one degree apart.
(e) Both heirs must be alive (or at least conceived) at the time of the
testator’s death. (Art. 863).
[NOTE: A conceived child is already considered born for all purposes
favorable to it.].
(f) Must be made in an EXPRESS manner; (ARTICLE 865)
(g) Must not burden the legitime; (ARTICLE 864)
(h) Must not be conditional.
***In the absence of a period fixed by the testator, the inheritance
must be delivered at death of the first heir;
***ARTICLE 866 applies only when all the essential requisites for a
fideicommissary substitution are present, particularly the requirement that
both heirs must be alive when the testator dies. In other words, while it is
permissible for the second heir to predecease the first heir, neither must
predecease the testator.
***The dispositions of the testator declaring all or part of the estate
inalienable for more than twenty years are VOID.
INSTANCES WHEN SUBSTITUTION IS EXTINGUISHED:
 When the substitute PREDECEASES THE TESTATOR;
 When the substitute is INCAPACITATED;
 When the substitute RENOUNCES the inheritance;
 When the INSTITUTION OF HEIR IS ANNULLED;
 When the institution or the substitution is REVOKED BY THE
TESTATOR;
 When a will is VOID or DISALLOWED or REVOKED;
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CIVIL LAW REVIEWER
CONDITIONAL TESTAMENTARY DISPOSITIONS AND
TESTAMENTARY DISPOSITIONS WITH A TERM (ARTICLE 871-
885)
THE INSTITUTION OF HEIR MAY BE MADE:
(a) WITH A CONDITION. (Arts. 871-877, 883-884)
***NO CONDITIONS CAN BE IMPOSE UPON LEGITIMES
(ARTICLE 872); Except PROHIBITION AGAINST PARTITION OF
THE LEGITIME;
***IMPOSSIBLE CONDITIONS/THOSE CONTRARY TO LAW
OR GOOD CUSTOMS shall be considered as NOT IMPOSED;
(ARTICLE 873);
***Condition for absolute prohibition to contract a first marriage is
ABSOLUTELY VOID; (ARTICLE 874);
GENERAL RULE — void because it is contrary to morality and public
policy.
EXCEPTIONS — valid
(a) when imposed on the widow or widower by the deceased spouse
(b) when imposed on the widow or widower by the ascendants or
descendants of the deceased spouse (not the ascendants or descendants of
the widow or widower)
(REASON: justified because of sentimental and economic reasons.)
*** Any disposition made upon the condition that the heir shall make some
provision in his will in favor of the testator or of any other person shall be
void (ARTICLE 875);
***POTESTATIVE CONDITION imposed MUST BE FULFILLED as
soon as he learns of the testator’s death; (ARTICLE 876);
- Potestative condition is one the fulfillment of which depends
purely on the heir. He must perform it personally. Nobody else must do it
for him;
*** If the POTESTATIVE CONDITION imposed upon the
heir is NEGATIVE, or CONSISTS IN NOT DOING OR NOT
GIVING SOMETHING, he shall comply by giving a security that he will
not do or give that which has been prohibited by the testator, and that in
case of contravention he will return whatever he may have received,
together with its fruits and interests.
***The bond or security is called CAUCION MUCIANA;
QUESTION: IS THE CONDITION TO MARRY POTESTATIVE OR
NOT?
ANSWER: If it is to marry ANY girl, then it is potestative; but if it is to
marry a PARTICULAR GIRL, it does not depend purely upon the will of
the heir, for the girl may REFUSE. (On the other hand, for all girls in the
world to REFUSE is impossible.)
EFFECT OF SUBSTANTIAL OR CONSTRUCTIVE COMPLIANCE
Substantial or constructive compliance (“tried his best”) is sufficient for
potestative conditions; it is also suffi cient for mixed conditions when non-
fulfi llment is caused by a person interested in the non-fulfi llment. In other
cases however, there must be actual, not merely constructive compliance.
(b) WITH A TERM. (Arts. 878, 880, 885).
***Disposition with a suspensive term does not
prevent the instituted heir from acquiring his rights and
transmitting them to his heirs EVEN BEFORE THE ARRIVAL OF THE
TERM; (ARTICLE 878);
A SUSPENSIVE TERM is one that MERELY SUSPENDS the
DEMANDABILITY OF A RIGHT. It is sure to happen. A suspensive
condition however suspends, not merely the demandability, but even the
acquisition itself of the right.
(c) FOR A CERTAIN PURPOSE OR CAUSE (modal institution).
(Arts. 871, 882 and 883).
The modal institution is not a condition (Art. 881, 1st par.) but when
and if it is violated, the instituted heir is supposed to forfeit the inheritance;
to return indeed anything he may have received together with its fruits and
interest, if he should disregard this obligation. (Art. 882, 2nd par.).
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CIVIL LAW REVIEWER
Inasmuch as there is an obligation, and inasmuch as a violation of the (3) The widow or widower;
obligation results in forfeiture, (4) Acknowledged natural children, and natural children by legal fi
ction;
*** If the heir be instituted under a suspensive condition or term, THE (5) Other illegitimate children referred to in Article 287.
ESTATE SHALL BE PLACED UNDER ADMINISTRATION
UNTIL THE CONDITION IS FULFILLED, or UNTIL IT BECOMES ARTICLE 888 ARTICLE 892 - 1 LEGITIMATE
CHILD
CERTAIN THAT IT CANNOT BE FULFILLED, or UNTIL THE
ARRIVAL OF THE TERM. CHILDREN/D
ESCENDANT 1 LEGIT
1/4 CHILD
The same shall be done if the heir does not give the security required S
in the preceding article. (ARTICLE 880). DISPOSABLE SURVIVING
1/2 1/2 FREE 1/2
SPOUSE
PORTION
DISPOSABL
LEGITIME (ARTICLE 886 – 914) 1/4 E FREE
LEGITIME – that part of the testator’s property which he cannot dispose PORTION

of because the law has reserved it for certain heirs; (ARTICLE 886);
PURPOSE OF THE LEGITIME
(a) To protect the children and the surviving widow or widower from the ARTICLE 892 - 2/MORE ART. 893 - NO LEGITIMATE
unjustifi ed anger or thoughtlessness of the other spouse — this is the LEGITIMATE CHILD; 897 AND 898 DESCENDANTS
purpose of the legitime.
(b) If there are no compulsory heirs, it follows that there can be no legitime.
PARENTS
(c) Legitime may be received from two aspects: first as a right; and second, 1/4 1/4LEGIT CHILD 1
SURVIVING
1/4
as the property itself. This means that when a person refers to his legitime LEGIT CHILD 2 SPOUSE
DISPOSABLE FREE
from his father, he talks either of the right to succeed to a certain portion of SURVIVING 1/2 PORTION
SPOUSE
the inheritance; or he may be referring to the actual property itself. 1/4
(d) The testator cannot deprive his compulsory heirs of their 1/4 1/4DISPOSABLE
FREE PORTION
legitime, except in cases expressly specified by law. Neither can he impose
upon the same any burden, encumbrance, condition, or substitution of any
whatsoever (Art. 904), except, of course, the condition that the property will
not be divided for a period not exceeding 20 years.

WHO ARE COMPULSORY HEIRS:

(1) Legitimate children and descendants, with respect to their
legitimate parents and ascendants;
(2) In default of the foregoing, legitimate parents and ascendants, with
respect to their legitimate children and
descendants;
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CIVIL LAW REVIEWER
ARTICLE 894 ARTICLE 896 ARTICLE 900 PAR. 2 - IN CASE OF ARTICLE 901 - ILLEGITIMATE
MARRIAGE IN ARTICULO MORTIS CHILD ONLY

SURVIVING LEGITIMATE
SPOUSE PARENT SURVIVING ILLEGITIMATE
1/3 1/3 ILLEGITIMATE
1/4 ILLEGITIMATE SPOUSE CHILD
CHILD
1/2
CHILD 1/3 DISPOSABLE DISPOSABLE
DISPOSABLE FREE DISPOSABLE FREE FREE PORTION FREE PORTION
PORTION PORTION 1/2 1/2
1/4 2/3
1/3

ARTICLE 896 - NO LEGIT CHILD ARTICLE 900 - SURVIVING ARTICLE 903 PAR. 1 - ILLEG. ARTICLE 903 PAR. 2 - ILLEG.
SPOUSE ONLY CHILD DIED W/ NO ISSUE PARENT & SURVIVING SPOUSE
LEGITIMATE
1/8 PARENT SURVIVING ILLEGITIMATE
PARENT OF ILLEGITIMATE PARENT
ILLEGITIMATE SPOUSE ILLEGITIMATE OF ILLEGITIMATE CHILD

1/8
CHILD 1/4
SURVIVING DISPOSABLE CHILD SURVIVING SPOUSE
DISPOSABLE FREE
1/2 SPOUSE FREE DISPOSABLE 1/2 PORTION
DISPOSABLE FREE 1/2 1/2 PORTION 1/2 1/2 FREE PORTION
1/4 PORTION
1/4

***BROTHERS AND SISTERS ARE NOT COMPULSORY HEIRS;

***Rights of illegitimate children are transmitted upon their death to their
descendants, whether legitimate or illegitimate; (ARTICLE 902)
***No deprivation of or burden on the legitime; (ARTICLE 904)
***LEGITIME = VALUE OF THE PROPERTY – DEBTS AND
CHARGES; (ARTICLE 908, 1ST PAR.)
***NET VALUE OF ESTATE = VALUE OF THE PROPERTY –
DEBTS AND CHARGES + VALUE OF ALL DONATIONS BY THE
TESTATOR (ARTICLE 908, 2ND PAR.)

ORDER OF PREFERENCE IN HEREDITARY ESTATE;

1. GIVE THE LEGITIMES;

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CIVIL LAW REVIEWER
2. THEN, DONATION INTER VIVOS; ***ARTICLE 920 – GROUNDS FOR DISINHEITANCE OF
3. PREFERRED LEGACIES AND DEVISES; PARENTS OR ASCENDANTS;
4. ALL OTHER DEVISES AND LEGACIES PRO RATA;
IF ESTATE IS INSUFFICIENT TO COVER ALL LEGACIES OR ***ARTICLE 921 – GROUNDS FOR DISINHERITANCE OF A
DEVISES; SPOUSE;

1. REMUNERATORY LEGACIES OR DEVISES; RESERVA TRONCAL – reservation by virtue of which an ascendant who
2. LEGACIES OR DEVISES DECLARED BY THE TESTATOR inherits from his descendant any property which the latter may have
TO BE PREFERENTIAL; acquired by GRATUITOUS TITLE from another ascendant, or a brother or
3. LEGACIES FOR SUPPORT; sister, is OBLIGED to reserve such property as he may have acquired by
4. LEGACIES FOR EDUCATION; OPERATION OF LAW FOR THE BENEFIT OF RELATIVES who are
5. LEGACIES OR DEVISES OF A SPECIFIC, DETERMINATE WITHIN THE 3RD DEGREE AND WHO BELONG TO THE LINE FROM
THING; WHICH SAID PROPERTY CAME.
6. ALL OTHERS PRO RATA;
PURPOSE: To prevent persons who are strangers to the family from
DISINHERITANCE (ARTICLE 915 – 923) acquiring, by some chance or accident, property which otherwise would
have remained with said family.
It is the process or act, thru a testamentary disposition of depriving
in a will any compulsory heir of his legitime for true and lawful causes; REQUISITES: In order that there will be a reservation of the property in
accordance with the provisions of Art. 891:
***There is no implied disinheritance; must be EXPRESSED; grounds 1. The property should have been acquired by operation of law by an
for disinheritance should be stated; ascendant from his descendant upon the death of the latter;
2. The property should have been previously acquired by gratuitous
REQUISITES FOR DISINHERITANCE; title by the descendant from another ascendant or from a brother or
1. Expressly made in a will; sister; and
2. In the valid will, the name of the compulsory heir must be 3. The descendant should have died without any legitimate issue in the
identified; direct descending line who could inherit from him;
3. State the ground/s for disinheritance; th
***4 requisite or a resolutory condition to which the reserve is subject –
4. Grounds must be provided by law There must be relatives of the descendant who are within the 3rd degree and
5. The heirs alleging that there is disinheritance must prove the who belong to the line from which the property came.
disinheritance; ***If such relatives exist, they acquire ownership of the property at the
***ARTICLE 919 – GROUNDS FOR THE DISINHERITANCE OF death of the ascendant; if they do not exist, the ascendant can freely
CHILDREN AND DESCENDANTS; dispose the property;
NATURE – The right of ascendant-reservista in the reservable property is
similar to that of as a usufructuary; meaning that the ultimate or naked title
being vested in the person in whose favor the reserve is established.
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CIVIL LAW REVIEWER
***The ascendant-reservista acquires the ownership of the property subject ***In TESTATE SUCCESSION – APPLIES ONLY
to the resolutory condition that there must exist relatives of the descendant- TO THE TRANSMISSION OF THE LEGITIME, but not to the
propositus who are within the 3rd degree and who belong to the line from transmission of the entirety or of a part of the free portion;
which the said property came.
4. The relatives within the 3rd degree belonging to the line from which
the property came (RESERVEES OR RESERVATARIOS);
PEOPLE INVOLVED IN RESERVA TRONCAL:
** The reservatario or person for whose benefit the property is
1. The ascendant or brother or sister from whom the property came
(ORIGIN); reserved must not only be a relative by consanguinity of the
***It does not apply to property inherited by a descendant from his propositus within the 3rd degree, but he must also be a relative by
ascendant; consanguinity of the source or origin of the property;
***What is MATERIAL is that the PROPOSITUS should have
***1st Degree – Legitimate Father or Mother of the propositus;
acquired it from anyone of his ascendant, brother, sister by ***2nd Degree – Grandparents, Brothers and Sisters(Full/Half Blood
GRATUITOUS TITLE; of the propositus) belonging to the line from which the reservable
2. The descendant who acquired the property property came from;
GRATUITOUSLY(PROPOSITUS); ***3rd Degree – Great grandparents, uncles/aunts, and nephews or
***ACQUISITION BY GRATUITOUS TITLE means that the nieces belonging to the line from which the reservable property
recipient should not have given anything in return for the property; came;
transmission by the ascendant, brother or sister should have been an
act of liberality, without imposing any obligation whatsoever upon
the beneficiary;
***As long as the transmission is free from any condition by the
deceased himself and the property is given out of pure generosity, it
is GRATUITOUS;
***Possible only in DONATIONS AND IN TESTATE AND
INTESTATE SUCCESSION;
3. The ascendant who in turn acquired the property from the
descendant by operation of law(RESERVOR OR RESERVISTA);
***WHEN CAN THE PROPERTY BE CONSIDERED AS
HAVING BEEN ACQUIRED BY OPERATION OF LAW? ***Reserva troncal is possible only in the LEGITIMATE FAMILY;
***In INTESTATE SUCCESSION – the whole estate of
the descendant, in default of legitimate children or descendants, What if the ascendant-reservista is survived by several relatives of the
passes to the reservista or ascendants by operation of law; propositus and all of them are within the 3rd degree belonging to the

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CIVIL LAW REVIEWER
line from which the reservable property came, who shall be entitled to
such property?
***RULES OF INTESTATE SUCCESSION SHALL APPLY,
***If some are in the direct ascending line, while others are in the collateral
line; RULE OF PREFERENCE BETWEEN LINE, by virtue of which
those in the direct ascending line shall exclude those in the collateral line, is
applicable.
***Proximity by virtue of which the nearest in degree shall exclude the
more remote ones;
***Right of Representation in Reserva Troncal is recognized, provided that
the representative is a relative of the propositus within the 3rd degree, and
provided further that he belongs to the line from which the reservable
property came from;
RIGHTS OF RESERVOR/ RESERVISTA:
***Ownership on the reservable property was acquired upon the death of
propositus subject to a resolutory condition;
***Reservor can then alienate or encumber the property if he so desires,
but he will only alienate or encumber what he had and nothing more;
As a consequence, the acquirer will only receive a limited and revocable
title.
OBLIGATIONS OF RESERVISTA:
1. To make an inventory of all reservable property;
2. To appraise the value of all reservable movable property;
3. To annotate in the Registry of Property the reservable character of all
reservable immovable property; and
4. Pay the reservatarios for the value of the property alienated by the
resrevista;
PROBLEM — The lot in question originally belonged to A. With his fi rst
wife, B, A had four children, D, E, F, and G, while with his second wife, C,
he had only one child, H. Upon his death in 1956, said lot was left to H.
When H died in 1952, single and without any descendant, his mother, C,
sold the property to X. Subsequently, D, E, F and G sold the same
property to Y. Several years later, C died.
(a) Is the property reservable?
(b) How about the two sales which were executed — are they valid
or not?
(c) Who is now entitled to the property?
ANSWER
(a) In order that the property shall be considered as reservable under Art.
891 of the Civil Code, it is necessary that the following requisites must
concur:
(1) The property should have been inherited by operation of law by
an ascendant from his descendant upon the death of the latter;
(2) the property should have been previously acquired by gratuitous
title by the descendant from another ascendant or from a brother or sister;
and
(3) the descendant should have died without any legitimate issue in
the direct descending line who could inherit from him. It is clear that all of
these requisites are present in the instant case.
Consequently, when H died in 1952, and the property passed by
operation of law to his mother, C, it became reservable. In order words, C,
who is the reservista, must reserve the property for the benefi t of the
relatives of H who are within the third degree and who belong to the line
from which the property came.
This reservation, however, is subject to two resolutory conditions,
namely: (1) the death of the ascendant reservista, and
(2) the survival, at the time of his death, of relatives of the
descendant-propositus who are within the third degree and who belong to
the line from which the reservable property came.
(b) As far as the first sale is concerned, undoubtedly, it is valid, but the
reservista can only alienate that which he has and nothing more — a limited
and revocable title to the reservable property.
Hence, the alienation transmits only the conditional and revocable
title of the reservista, the rights acquired by the transferee being revoked or
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CIVIL LAW REVIEWER
resolved by the survival of reservatarios at the time of the death of the
reservista.
Consequently, in the instant case, in as much as the reservatarios, D,
E,
F, and G, were still alive at the time of the death of the reservista, C, the
conclusion becomes inescapable that the previous sale made by such
reservista in favor of X became of no legal effect, and as a consequence, the
reservable property passed automatically and by operation of law to the
reservatarios. But then, the reservatarios had also alienated their right or
expectancy over the reservable property during the pendency of the reserva.
Was this sale valid? This question was answered in the affirmative. But, of
course, it is subject to the same conditions to which the previous sale is
subject.
(c) Premises considered, it is clear that Y is now entitled to the subject
property.
WHEN CAN THE RESERVATARIO ACQUIRES RIGHT OVER
THE RESRVABLE PROPERTY/RESERVA?
***Upon (1) the death of the ascendant reservista, and (2) the survival, at
the time of his death, of relatives of the descendant-propositus who are
within the third degree and who belong to the line from which the
reservable property came.
***Upon the death of the reservista, the reservatario nearest the propositus
becomes, AUTOMATICALLY AND BY OPERATION OF LAW, the
absolute owner of the reservable property.
WHEN CAN THERE BE EXTINCTION OF RESERVABLE
PROPERTY/RESERVA?
1. Death of the reservor;
2. Death of all would be reserves ahead of the reservoir/reservista;
3. Loss of the reservable properties, PROVIDED the reservoir had no
fault or negligence;
4. Prescription (Starts from the death of the reservoir)
LEGACIES AND DEVISES
ALL THINGS AND RIGHTS which are within the commerce of man
may be BEQUEATEHED or DEVISED. (ARTICLE 924)
***BEQUEATHED – Legacy;
***DEVISE – Devised;
***Payment of a legacy provided for in a will cannot be ordered by the
ordered by the court UNLESS the estate of the deceased has first been
liquidated;
*Can be subject to condition, burden.
*If there is a burden imposed, the legatee or devisee shall comply with the
condition/burden.
WHO ARE THE PERSONS CHARGED WITH LEGACIES AND
DEVISES?
1. ANY COMPULSORY HEIR;
2. ANY VOLUNTARY HEIR;
3. ANY LEGATEE OR DEVISEE;
4. THE ESTATE, REPRESENTED BY THE EXECUTOR OR
ADMINISTRATOR
***If the will is silent, it is the ESTATE, which has the obligation
who shall pay or deliver the legacy or devise.
EXTENT OF LIABILITY:
**GENERAL RULE: COMPULSORY HEIR shall not be burdened with
condition; however, if he has been given an inheritance from the disposable
free portion; he cannot be held liable BEYOND the amount of the
disposable free portion given him;
***If person charged with OBLIGATION is a voluntary heir, a legatee or
a devisee, HIS LIABILITY SHALL EXTEND TO THE ENTIRE SHARE,
OR LEGACY, OR DEVISE RECEIVED BY HIM.
WHEN NO ONE IS CHARGED IN THE TESTAMENT: ALL
SHALL BE LIABLE IN THE SAME PROPORTION IN WHICH
THEY MAY INHERIT.
***applicable only when there is NO ADMINISTRATION
PROCEEDING FOR SETTLEMENT OF THE DECEDENT’s ESTATE
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CIVIL LAW REVIEWER
If two or more heirs take possession of the estate, they shall be solidarily
liable for the loss or destruction of a thing devised or bequeathed, even
though only one of them should have been negligent. (ARTICLE 927)
The heir who is BOUND TO DELIVER the LEGACY or DEVISE SHALL
BE LIABLE IN CASE OF EVICTION, if the thing is INDETERMINATE
and indicated only by its kind; (ARTICLE 928).
RULES FOR LIABILITY IN CASE OF EVICTION:
IF THING IS GENERIC OR INDETERMINATE: the heir who is
charged with the payment or delivery of the legacy or devise shall be liable;
IF THING IS SPECIFIC OR DETERMINATE: The heir is not liable for
eviction;
***There is NO WARRANTY AGAINST EVICTION, whether generic or
specific, if the legacy or devise is burden on the estate;
REASON: There is court proceedings that warrants approval;
LEGACY OF THINGS BELONGING PARTLY TO STRANGERS:
If the testator, heir, or legatee owns only a part of, or an interest in the
thing bequeathed, the legacy or devise shall be understood limited to such
part or interest, UNLESS the testator expressly declares that he gives the
thing in its entirety.(ARTICLE 929)
GENERAL RULE: The testator desires to bequeath or devise only that
which belongs to him;
EXCEPTION: When the testator declares that he gives the thing in its
entirety;
REQUISITES FOR EXCEPTION TO APPLY:
1. An express declaration to that effect appearing in the will itself;
2. Knowledge on the part of the testator that the thing belongs partly
to a 3rd person.
***Burden of proof rests upon the recipient of the gift to prove that the
testator knows the he owns only a part of a thing;
LEGACY OF THINGS BELONGING TO STRANGERS:
GENERAL RULE: The legacy or devise of a thing belonging to
another person is VOID; if the testator erroneously believed that the thing
pertained to him
EXCEPTION: When the thing bequeathed, though not belonging
to the testator when he made the will, afterwards becomes his,
BY WHATEVER TITLE, the DISPOSITION SHALL TAKE EFFECT
(ARTICLE 930)
EFFECT OF PARTITION:
It may happen that subsequently the thing which is bequeathed or
devised is finally divided or partitioned between the owners in common.
IF THE THING IS PHYSICALLY DIVISIBLE OR CONVENIENT
OF DIVISION, the rules stated are still applicable.
However, IF THE THING IS PHYSICALLY INDIVISIBLE OR
INCONVENIENT OF DIVISION, the rules applicable shall depend upon
whether the thing is finally adjudicated to the testator or to the other owner
applying the provisions of Arts. 929 and 930.
***when the thing is adjudicated to the other owner, the rules
applicable shall depend upon whether or not the testator has expressly
declared that he bequeaths or devises the property in its entirety. If he has
not expressly declared that he bequeaths or devises the property in its
entirety, the legacy or devise shall be without effect, applying the provision
of No. 2 of Art. 957, which declares that the alienation of the thing
bequeathed or devised shall result in the legal revocation of the legacy or
devise.
If testator expressly declared that he bequeaths or devises the
property in its entirety and the property subsequently is adjudicated to
the other owner, the legacy or devise SHALL BE WITHOUT EFFECT
ONLY WITH RESPECT TO WHAT HAD FORMERLY BELONGED
TO HIM, again applying the rule stated in No. 2 of Art. 957. However, the
legacy or devise is still effective with respect to the part belonging to the
owner or third person to whom the entire property was adjudicated
PROBLEM : T and A owned a Lincoln Towncar automobile 50-50.
In
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CIVIL LAW REVIEWER
his will, T wrote: “I hereby give the whole automobile to L even if I own
only half of it.” Prior to T’s death, the co-ownership ceased, and since the
car is physically indivisible, the car was adjudicated to A, with T being
reimbursed in money for his share. Subsequently, T died. Will L get ½ of
the automobile, the whole automobile, half its value, its whole value, or
nothing?
ANSWER: L will get half of the car. Reason: It is true that in
consenting to be reimbursed his share, T in effect had alienated his share in
the car to A, and thus revoked by operation of law the legacy insofar as his
(T’s) original share was concerned. (Art. 957[2]). However, inasmuch as he
had expressly given the whole car to A, it follows that there is no revocation
insofar as the other half is concerned. Hence, L is entitled still to half of the
car (A’s
original half, not T’s original half). In other words L and A will now be the
co-owners of the car, without prejudice to A collecting its half-value from
T’s estate.
***If the testator orders that a thing belonging to another be acquired
in order that it be given to a legatee or devisee, the heir upon whom the
obligation is imposed or the estate ACQUIRE it and give the same to the
legatee or devisee; but if the owner of the thing refuses to alienate the
same, or DEMANDS AN EXCESSIVE PRICE therefor, the heir of the
estate shall only be OBLIGED TO GIVE THE JUST VALUE OF THE
THING. (ARTICLE 931)
***as long as the testator knows that the thing does not belong to him, the
gift would be VALID.
LEGACY OF THINGS BELONGING TO LEGATEE:
The legacy or devise of a thing which at the time of the execution of
the will already belonged to the legatee or devisee
shall be ineffective, EVEN THOUGH ANOTHER PERSON MAY
HAVE SOME INTEREST THEREIN.
If the testator expressly orders that the thing be freed from
such interest or encumbrance, the legacy or devise shall be valid to that
extent. (ARTICLE 932)
If the thing bequeathed belonged to the legatee or
devisee at the time of the execution of the will. The legacy or devise
shall be without effect, EVEN THOUGH IT MAY HAVE BEEN
SUBSEQUENTLY ALIENATED BY HIM.
If the legatee or devisee ACQUIRES IT GRATUITOUSLY after
such time, HE CAN CLAIM NOTHING by virtue of the legacy or devise;
but if it has BEEN ACQUIRED BY ONEROUS TITLE he can
DEMAND REIMBURSEMENT FROM THE HEIR OR THE
ESTATE. (ARTICLE 933).
*** First paragraph of Art. 932 and the first paragraph of Art. 933 state
practically the same thing, except that the latter adds the clause “even
though it may have been subsequently alienated by him.’’
CASES FOR ART. 933:
(1) IF THE THING BELONGED TO A THIRD PERSON AT THE
TIME OF THE EXECUTION OF THE WILL: In this case, the testator
may or may not have any knowledge of the fact that the thing belonged to a
third person at the time when he executed his will. If he erroneously
believed that the thing pertained to him, the legacy or devise is void. The
subsequent, acquisition of the thing by the legatee or devisee favoured
cannot, therefore, have any effect upon such legacy or devise. However, if
he had knowledge that the thing belonged to a third person, the second
paragraph of Art. 933 is applicable.
(2) IF THE THING BELONGED TO THE TESTATOR AT THE
TIME OF THE EXECUTION OF THE WILL: In this case, the thing
may be alienated by the testator subsequently either to a third person or to
the legatee or devisee favored. If the thing is alienated in favor of a third
person, clearly the legacy or devise is revoked by express provision of
Art. 957. Hence, the subsequently acquisition by the legatee or devisee
cannot revive the legacy or devise. If the thing is alienated in favor of the
legatee or devisee himself, there is no revocation. As a matter of fact,
there is a clear intention to comply with the legacy or devise if the
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alienation is gratuitous. If such alienation is onerous, the second paragraph
of Art. 933 applies.
(3) IF THE THING BELONGED TO THE BENEFICIARY AT THE
TIME OF THE EXECUTION OF THE WILL: In this case, the
provision of the second paragraph of Art. 933 cannot apply because this
case is precisely what is contemplated by the first paragraph of the same
article.
WHAT TO REIMBURSE:
In proper cases for reimbursement, the following should be reimbursed:
(a) IF THRU A SALE — the price paid therefor
(b) IF THRU BARTER — the value of the thing exchanged
(c) IF THRU AN ONEROUS DONATION — the value of the burden
imposed
(d) if THRU ADJUDICACION EN PAGO — the value of the credit,
interests (if any), and costs (if any).
WHO REIMBURSES:
(a) THE ESTATE — if no one has been charged in particular
(b) THE HEIR, LEGATEE, OR DEVISEE — who has been charged.
(See Art. 933, 2nd paragraph).
If the testator should bequeath or devise something pledged or
mortgaged to secure a recoverable debt before the execution of the will, the
estate is obliged to pay the debt, unless the contrary intention appears.
The same rule applies when the thing is pledged or mortgaged after
the execution of the will.
ANY OTHER CHARGE, PERPETUAL OR TEMPORARY,
with which the thing bequeathed is burdened, PASSES WITH IT TO THE
LEGATEE OR DEVISEE. (ARTICLE 934)
RULE IF THING IS PLEDGED OR MORTGAGED:
ESTATE MUST FREE THE PROPERTY GIVEN FROM:
 PLEDGES;
 MORTGAGES;
 ANY OTHER ENCUMBRANCE OR LIEN (ANTICHRESIS), IF
GIVEN TO SECURE OR GUARANTEE A RECOVERABLE
DEBT;
EXCEPTIONS:
 IF THERE BE A CONTRARY INTENTION;
 PLEDGE OR MORTGAGE WAS GIVEN NOT TO SECURE A
RECOVERABLE DEBT, BUT TO SECURE, DUTIFUL
PERFORMANCE OF THE FUNCTIONS OF A POSITION OR
OFFICE.
EXAMPLE OF CHARGE, PERPETUAL OR TEMPORARY:
EASEMENTS; USUFRUCTS; LEASES WITH REAL RIGHTS
REMEDIES OF MORTGAGE: If the mortgaged property given as a
devise to somebody by the testator
1. He can ABANDON his security (disregard the mortgage) and
prosecute his claim for his now unsecured credit before the probate
court. He can then share in the general distribution of the estate to
the various creditors;
2. FORECLOSE the mortgage or realize upon security by an ordinary
action in court making the executor or administrator the party
defendant.
3. RELY on the mortgage alone and foreclose at any time within of
statute of limitations (10 years from date of maturity). In the
meantime, he will NOT receive any share in the distribution of the
other assets of the estate.
***The estate shall be obliged to pay for the debt.
***However, testator may also stipulate that the Legatee or Devisee should
accept both the property and the burden to pay the debt.
***If you don’t like the burden, you can’t have the inheritance
LEGACY OF CREDIT/REMISSION OF DEBT
The legacy of a credit against a third person or of the
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remission or release of a debt of the legatee shall be effective only as
regards that PART OF THE CREDIT OR DEBT EXISTING AT THE
TIME OF THEDEATH OF THE TESTATOR. (ARTICLE 935)
IN LEGACY OF CREDIT: the estate shall comply with the legacy
by ASSIGNING TO THE LEGATEE ALL RIGHTS OF ACTION IT
MAY HAVE AGAINST THE DEBTOR.
In REMISSION OF DEBT: BY GIVING THE LEGATEE AN
ACQUITTANCE, should he request one.
In both cases, the LEGACY SHALL COMPRISE ALL
INTERESTS ON THE CREDIT OR DEBT WHICH MAY BE DUE
THE TESTATOR AT THE TIME OF HIS DEATH
*** LEGACY IN THE FORM OF CONDONATION – cannot ask for a
refund of the previous payment.
*** IN CASE OF PLEDGE: Only the pledge is condoned, not the loan.
***The LEGACY WILL LAPSE if the testator, after having made the
will, SHOULD BRING AN ACTION AGAINST THE DEBTOR for the
payment of his debt, EVEN IF SUCH PAYMENT SHOULD NOT
HAVE BEEN EFFECTED AT THE TIME OF HIS DEATH.
(ARTICLE 936)
 Means JUDICIAL ACTION; an extrajudicial demand shall not
be sufficient to revoke the legacy;
***GENERIC LEGACY of release or remission, comprise those existing at
the time of the execution of the will, BUT NOT SUBSEQUENT ONES.
(ARTICLE 937)
***When the release is SPECIFIC, such release can only refer to the debt
which is specifically mentioned in the will of the testator.
LEGACY TO CREDITORS
GENERAL RULE: Legacy or devise made to a creditor shall not be
applied to his credit;
EXCEPTION: Testator expressly declares that the legacy or devise must
be applied to the credit
***Creditor is entitled to the EXCESS, if any, of the credit or of
the legacy or devise; (ARTICLE 938)
*** If the testator orders the payment of what he believes he owes but does
not in fact owe, the disposition SHALL BE CONSIDERED AS NOT
WRITTEN.
*** If as regards a specified debt more than the amount thereof is ordered
paid, the EXCESS IS NOT DUE; (ARTICLE 939)
UNLESS contrary intention appears; WITHOUT PREJUDICE
TO THE FULFILLMENT OF NATURAL OBLIGATIONS.
PROBLEM: T owed L P100,000 but the debt has already prescribed.
Nevertheless, T, recognizing his moral duties, ordered the payment of the
P100,000, knowing that the debt had already prescribed. Will L get the
P100,000, even if the debt no longer exists?
ANSWER: Yes, for this is an instance of a natural obligation.
(Natural obligations are governed by Arts. 1423 to 1430 of the Civil Code.)
CHOICE IN ALTERNATIVE LEGACIES OR DEVISES
***ALTERNATIVE LEGACIES OR DEVISES – refer to those where
the testator bequeaths or devises two or more things but which can be
complied with by the delivery of only one of them to the beneficiary.
***Choice will have to BE MADE UPON THE DEATH OF THE
TESTATOR;
RIGHT OF CHOICE — is given to the person burdened; thus, it
may be the estate (executor or administrator), the heir charged,
or the legatee or devisee charged. (Art. 940). This is the same
as the general rule in alternative obligations.
*** If the heir, legatee or devisee, who may have been given
the choice, dies before making it, this right shall pass to the respective
heirs;
***ONCE MADE, THE CHOICE IS IRREVOCABLE; (ARTICLE
940)
***When out of two or more things to be given, only one is possible, the
legacy is converted into a simple one;
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*** The choice must be communicated to the recipient, after which
communication the alternative legacy becomes a simple one.
GENERIC LEGACIES (ARTICLE 941-943)
*** A LEGACY OF GENERIC PERSONAL PROPERTY SHALL BE
VALID even if there be no things of the same kind in the estate.
*** A DEVISE OF INDETERMINATE REAL PROPERTY SHALL
BE VALID only if there be immovable property of its kind in the estate.
 REASON: Unlike personal property, there is no such thing as a
predetermined species with respect to real or immovable property,
since its individualization, depends exclusively upon the will of
man.
***RIGHT OF CHOICE SHALL BELONG TO THE
EXECUTOR/ADMINISTRATOR;
***The THING TO BE DELIVERED must neither be of INFERIOR
NOR OF SUPERIOR QUALITY;
***Right of choice shall pertain to the person designated by the testator; If
no one is designated, it is the executor or administrator of the estate that
shall make the choice;
***Once made, CHOICE BECOMES IRREVOCABLE; Legacy ceases to
be GENERIC; it becomes DETERMINATE
LLEGACY FOR EDUCATION OR SUPPORT
***LEGACY FOR EDUCATION last until the legatee is of age, or
beyond the age of majority in order that the legatee may finish some
professional, vocational or general course, provided he pursues his course
diligently.
*** A LEGACY FOR SUPPORT lasts during the lifetime of the legatee,
if the testator has not otherwise provided
*** If the testator during his lifetime used to give the legatee a certain sum
of money or other things by way of support, the same
amount shall be deemed bequeathed, unless it be markedly disproportionate
to the value of the estate (ARTICLE 944)
*** The amount of the legacy, whether for education or for support,
shall depend upon the testator; If not fixed, it shall be in accordance with
the circumstances and social standing of the legatee and the value of the
estate. The only limitation is that the LEGACY MUST NOT IMPAIR
THE LEGITIME OF COMPULSORY HEIRS.
***The giving of pensions must be made, only after the order of
distribution has been made by the court, or until distribution is actually
made; ESTATE’s DEBTS must first be paid. (ARTICLE 945)
*** If the thing bequeathed should be subject to a usufruct, the legatee or
devisee shall respect such right until it is legally extinguished. (ARTICLE
946)
HOW USUFRUCT IS EXTINGUISHED:
1. By death of usufructuary, UNLESS a contrary intention appears;
2. By the expiration of the period for which it was constituted or by the
fulfilment of any resolutory condition provided in the title creating
the usufruct;
3. By merger of the usufruct and ownership in the same;
4. By renunciation of the usufructuary;
5. By the total loss of the things in usufruct;
6. By the termination of the right of the person constituting the
usufruct;
7. By prescription;
*** The legatee or devisee acquires a RIGHT TO THE PURE AND
SIMPLE LEGACIES OR DEVISES from the death of the testator and
transmits it to his heirs; (ARTICLE 947)
*** Even those which are subject to a suspensive term or
period must be included within the purview of the rule; as what is
suspended by the term or period is not the acquisition of the right but
merely the demandability of the right.
*** In the CASE OF CONDITIONAL LEGACIES OR DEVISES,
however, if the condition is suspensive, what is acquired upon the death of
the testator by the legatee or devisee is only a mere hope or expectancy.
SUCH HOPE OR EXPECTANCY IS CONVERTED INTO A
PERFECTED RIGHT ONLY FROM THE MOMENT OF THE
FULFILLMENT OF THE CONDITION. Consequently, if the legatee or
devisee, after the death of the testator, dies before the fulfillment of the
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condition, HE CANNOT TRANSMIT HIS EXPECTANCY TO HIS
OWN HEIRS.
RIGHT TO PROPERTY IS VESTED AS FOLLOWS:
1) SPECIFIC — from the testator’s death
2) GENERIC — from the time a selection has been made, so as to make
the property specific
3) ALTERNATIVE — from the time the choice has been made
4) ACQUIRED FROM A STRANGER BY VIRTUE OF AN
ORDER (EXPRESS OR IMPLIED) BY THE TESTATOR — from
the moment of such acquisition
***If the legacy or devise is of a SPECIFIC AND DETERMINATE
THING PERTAINING TO THE TESTATOR, the legatee or devisee
ACQUIRES THE OWNERSHIP thereof upon the death of the testator, as
well as any GROWING FRUITS, OR UNBORN OFFSPRING OF
ANIMALS, OR UNCOLLECTED INCOME; but not the income which
was due and unpaid before the latter’s death.(ARTICLE 948)
*** IF THE BEQUEST should not be of a specific and determinate
thing, but IS GENERIC OR OF QUANTITY, ITS FRUITS AND
INTERESTS FROM THE TIME OF THE DEATH OF THE
TESTATOR SHALL PERTAIN TO THE LEGATEE OR DEVISEE
IF THE TESTATOR HAS EXPRESSLY SO ORDERED (ARTICLE
949)
***Since the recipient will not know definitely what he will
receive until after a selection or choice has been made, it follows that he is
entitled to the fruits only from the time such CHOICE has been made — for
it is only after such choice that the obligation to deliver the gift to him
arises.
IF THE ESTATE SHOULD NOT BE SUFFICIENT TO COVER ALL
THE LEGACIES OR DEVISES, THEIR PAYMENT SHALL BE
MADE IN THE FOLLOWING ORDER: (RPSESA)
(1) Remuneratory legacies and devises; means those which the
testator gives because he feels morally obliged to compensate certain
persons, for services which do not however constitute recoverable debts;
(2) Legacies or devises declared by the testator to be preferential;
(3) Legacies for support;
(4) Legacies for education;
(5) Legacies or devises of a specific, determinate thing which forms a
part of the estate;
(6) All others, pro rata. (ARTICLE 950)
*** The thing bequeathed shall be delivered with all its accessions and
accessories and in the condition in which it may be upon the death of the
testator. (ARTICLE 951)
***The one charged to deliver the thing bequeathed should be able to do so
and cannot discharge the obligation by PAYING ITS VALUE;(ARTICLE
952)
***Legacies of MONEY must be paid in cash, even though the heir or the
estate may not have any;
*** The expenses necessary for the delivery of the thing bequeathed
shall be for the account of the heir or the estate, but
without prejudice to the legitime.
*** The legatee or devisee cannot take possession of
the thing bequeathed upon his own authority, but shall request
its delivery and possession of the heir charged with the legacy or
devise, or of the executor or administrator of the estate should he
be authorized by the court to deliver it (ARTICLE 953)
***While ownership and possession are transmitted indeed
from the testator’s death, still actual delivery and possession
will have to wait till the formalities required under this Article
are complied with.
*** The legatee or devisee cannot accept a part of the legacy or devise and
repudiate the other, if the latter be onerous.
Should he die before having accepted the legacy or devise,
leaving several heirs, SOME OF THE LATTER MAY ACCEPT AND
THE OTHERS MAY REPUDIATE the share respectively belonging
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to them in the legacy or devise. (ARTICLE 954)
*** The legatee or devisee of two legacies or devises, one of which is
onerous, cannot renounce the onerous one and accept the other. If both are
onerous or gratuitous, he shall be free to accept or renounce both, or to
renounce either. But if the testator intended that the two legacies or devises
should be inseparable from each other, the legatee or devisee must either
accept or renounce both.
Any compulsory heir who is at the same time a legatee or devisee
MAY WAIVE THE INHERITANCE AND ACCEPT THE LEGACY
OR DEVISE, OR RENOUNCE THE LATTER AND ACCEPT THE
FORMER, OR WAIVE OR ACCEPT BOTH; (ARTICLE 955)
*** If the legatee or devisee cannot or is unwilling to accept the legacy or
devise, or if the legacy or devise for any reason should become ineffective,
it shall be merged into the mass of the estate, except in cases of substitution
and of the right of accretion.(ARTICLE 956)
REVOCATION OF LEGACIES AND DEVISES:
THE LEGACY OR DEVISE SHALL BE WITHOUT EFFECT:
(1) REVOCATION BY TRANSFORMATION: If the testator transforms
the thing bequeathed in such a manner that it does not retain either the form
or the denomination it had;
(2) REVOCATION BY ALIENATION: If the testator by any title or for
any cause alienates the thing bequeathed or any part thereof, it being
understood that in the latter case the legacy or devise shall be without effect
only with respect to the part thus alienated. If after the alienation the thing
should again belong to the testator, even if it be by reason of nullity of the
contract, the legacy shall not thereafter be valid, unless the reacquisition
shall have been effected by virtue of the exercise of the right of repurchase;
(3)REVOCATION BY LOSS OR DESTRUCTION: If the thing
bequeathed is totally lost during the lifetime of the testator, or after his
death without the heir’s fault. Nevertheless, the person obliged to pay the
legacy of devise shall be liable for eviction if the thing bequeathed should
not have been determinate as to its kind, in accordance with the provisions
of Article 928.
*** A mistake as to the name of the thing bequeathed or devised, is of
no consequence, if it is possible to identify the thing which the testator
intended to bequeath or devise. (ARTICLE 958)
*** A disposition made in general terms in favor of the testator’s relatives
shall be understood to be in favor of those nearest in degree. (ARTICLE
959)
****Does not apply to relatives of the wife;
LEGAL OR INTESTATE SUCCESSION
WHEN DOES LEGAL OR INTESTATE SUCCESSION TAKE
PLACE?
LEGAL OR INTESTATE SUCCESSION TAKES PLACE:
(1) If a person dies without a will, or with a void will, or one which
has subsequently lost its validity;
(2) When the will does not institute an heir to, or dispose of all the
property belonging to the testator. In such case, legal succession
shall take place only with respect to the property of which the
testator has not disposed;
(3) If the suspensive condition attached to the institution of heir
does not happen or is not fulfilled, or if the heir dies before the
testator, or repudiates the inheritance, there being no substitution,
and no right of accretion takes place;
(4) When the heir instituted is incapable of succeeding, except in
cases provided in this Code. (ARTICLE 960)
(5) When there is a PRETERITION of a compulsory heir in the
direct line; (ARTICLE 854)
(6) If the testamentary disposition is subject to a resolutory condition
and such condition is fulfilled;
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(7) If the testamentary disposition is subject to a resolutory term and
such term expires;
(8) In cases of ineffective testamentary dispositions.
RULES ON LEGAL OR INTESTATE SUCCESSION:
PRINCIPLE OF PROXIMITY – Relatives nearest in degree shall
exclude the more remote ones. (ARTICLE 962).
EXCEPTION TO THE PRINCIPLE OF PROXIMITY: RIGHT
OF REPRESENTATION.
Descending line excludes the ascending line;
A direct relative excludes a collateral relative;
The right of representation takes place in the direct descending line,
but NEVER in the ascending (ARTICLE 972);
In the collateral line, the right of representation takes place only in
favor of the children of brothers or sisters, whether they be of the
full or half-blood. (ARTICLE 972)
Should brothers and sisters of the full blood survive together with
brothers and sisters of the half-blood, the former shall be entitled to
a share double that of the latter. (ARTICLE 1006)
Should there be more than one ascendant of equal degree belonging
to the same line, they shall divide the inheritance PER CAPITA;
should they be of different lines but of equal degree, one-half shall
go to the paternal and the other half to the maternal ascendants. In
each line, the division shall be made per capita. (Par. 2, ARTICLE
987);
If there are several relatives of the same degree, and one or some
of them are unwilling or incapacitated to succeed, his portion shall
accrue to the others of the same degree, save the right of
representation when it should take place. (ARTICLE 968) - pertains
to ACCRETION IN INTESTATE SUCCESSION;
TERMS IN LEGAL OR INTESTATE SUCCESSION:
 DIRECT LINE: constituted by the series of degrees among
ascendants and descendants.
***either descending or ascending; (Par. 1, ARTICLE 965)
 COLLATERAL LINE: constituted by the series of degrees among
persons who are not ascendants and descendants, but who come
from a common ancestor. (ARTICLE 964)
 DIVISION PER CAPITA – means BY THEIR NUMBER; when
heirs inherit by their own right;
 DIVISION PER STIRPES – meaning share among themselves;
when heirs inherit by right of representation (the inheritance which
the person represented could have inherited)
 REPRESENTATION – right created by fiction of law, by virtue of
which the representative is raised to the place and the degree of the
person represented, and acquires the rights which the latter would
have if he were living or if he could have inherited. (ARTICLE
970)
WHEN DOES THE RIGHT OF REPRESENTATION TAKE PLACE?
1. PREDECEASED;
2. INCAPACITY;
3. DISINHERITANCE;
***An heir who has REPUDIATED his inheritance MAY NOT BE
REPRESENTED. (ARTICLE 977); Nonetheless, A person may represent
him whose inheritance he has RENOUNCED. (ARTICLE 976)
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***In INTESTATE SUCCESSION, the RIGHT OF REPRESENTATION
when proper, covers ALL THAT THE PERSON BEING REPRESENTED
WOULD HAVE INHERITED;
***In TESTATE SUCCESSION, the RIGHT OF REPRESENTATION
covers only the LEGITIME.
***There is NO RIGHT OF REPRESENT A VOLUNTARY HEIR.
***The representative does not succeed the person represented but the one
whom the person represented would have succeeded. (ARTICLE 971)
*** In order that representation may take place, it is necessary that the
representative himself be capable of succeeding the decedent. (ARTICLE
973)
***When children of one or more brothers or sisters of the deceased
survive, they shall inherit from the latter by representation, if they survive
with their uncles or aunts. (PER STIRPES)
But if they alone survive, they shall inherit in equal portions. (PER
CAPITA) (ARTICLE 975)
ORDER OF INTESTATE SUCCESSION
1. DESCENDING DIRECT LINE;
2. IN DEFAULT OF DESCENDING, ASCENDING DIRECT
LINE;
3. ILLGETIMATE CHILDREN;
4. SURVIVING SPOUSE;
5. COLLATERAL RELATIVES;
6. STATE
RULES ON DESCENDING DIRECT LINE:
 Legitimate children and their descendants succeed the parents and
other ascendants, without distinction as to sex or age, and even if
they should come from different marriages. (ARTICLE 979)
 An adopted child succeeds to the property of the adopting
parents in the same manner as a legitimate child;
 Children of the deceased, inherit in their OWN RIGHT (Per Capita
Division); Descendants of the children of the deceased may inherit
by right of representation (Per Stirpes Division);
 In case of the death of an adopted child, leaving no children or
descendants, his adopter and relatives by consanguinity, shall be
his legal heirs. (ARTICLE 984, amended by Domestic Adoption
Act of 1998)
RULES ON ASCENDING DIRECT LINE:
 In default of legitimate children and ascendants of the deceased,
HIS PARENTS AND ASCENDANTS shall inherit to the
EXCLUSION OF COLLATERAL RELATIVES; (ARTICLE 985)
 In default of the father and mother, the ascendants nearest in
degree shall inherit. (ARTICLE 986)
RULES ON ILLEGITIMATE CHILDREN:
 They shall succeed to the ENTIRE ESTATE, in the absence of
legitimate descendants/ascendants; (ARTICLE 988)
 If legitimate ascendants are left, the illegitimate children shall divide
the inheritance with them, taking one-half of the estate, whatever be
the number of the ascendants or of the illegitimate children.
(ARTICLE 991)
 “IRON CURTAIN RULE” or the Principle of Absolute
Separation between the legitimate family and the illegitimate
family - An illegitimate child has NO RIGHT TO INHERIT AB
INTESTATO from the legitimate children and relatives of his
father or mother; nor shall such children or relatives inherit in the
same manner from the illegitimate child. (ARTICLE 992)
**** it has ruled that where the illegitimate child had half-brothers who
were legitimate, the latter had no right to the former’s inheritance; that
the legitimate collateral relatives of the mother cannot succeed from her
illegitimate child; that a natural child cannot represent his natural father
in the succession to the estate of the legitimate grandparent; that the
natural daughter cannot succeed to the estate of her deceased uncle who
is a legitimate brother of her natural father; and that an illegitimate child
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has no right to inherit ab intestato from the legitimate children and
relatives of his father. ARTICLE 994 PAR. 2 and
 If an illegitimate child should die without issue, either legitimate or
ARTICLE 1001
SURVIVING BROTHERS AND
illegitimate, his father or mother shall succeed to his entire estate; SPOUSE SISTERS,
NEPHEWS AND
and if the child's filiation is duly proved as to both parents, who are NIECES
both living, they shall inherit from him share and share alike. 1/2 1/2
(ARTICLE 993)

 In default of the father or mother, an illegitimate child shall be

succeeded by his or her surviving spouse who shall be entitled to the RULES ON SURVIVING SPOUSE:
entire estate.(ARTICLE 994)
 If a widow or widower and legitimate children or descendants are
 If the widow or widower should survive with brothers and sisters, left, the surviving spouse has in the succession the same share as
nephews and nieces, she or he shall inherit one-half of the estate, that of each of the children. (ARTICLE 996)
and the latter the other half. (ARTICLE 994)  In case of a legal separation, if the surviving spouse gave cause for
the separation, he or she shall not have any of the rights granted in
ARTICLE 994 PAR. 1 AND the preceding articles. (ARTICLE 1002)
ARTICLE 991
ARTICLE 998 ARTICLE 997 ARTICLE 1000
LEGITIMATE ASCENDANTS
ILLEGITIMATE CHILDREN SURVIVING SPOUSE LEGITIMAT SURVIVING
SURVIVING SPOUSE E SPOUSE
ILLEGITIMATE CHILDREN
LEGITIMATE ASCENDANTS ASCENDAN
TS
ILLEGITIMA 1/4
1/4 1/2
1/2 1/2 TE
1/2 1/2 1/2 1/2 CHILDREN

RULES ON COLLATERAL RELATIVES:

 Should the only survivors be brothers and sisters of the full blood,
they shall inherit in equal shares. (ARTICLE 1004)
 Should brother and sisters of the full blood survive together with
brothers and sisters of the half blood, the former shall be entitled
to a share double that of the latter. (ARTICLE 1006)

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 In case brothers and sisters of the half blood, some on the father's
and some on the mother's side, are the only survivors, all shall
inherit in EQUAL SHARES without distinction as to the origin
of the property. (ARTICLE 1007)
 The right to inherit ab intestato shall not extend beyond the fifth
degree of relationship in the collateral line. (ARTICLE 1010)
o Applies only to collateral relatives!
RULES ON STATE:
 In default of persons entitled to succeed in accordance with the
provisions of the preceding Sections, the State shall inherit the
whole estate. (ARTICLE 1011)
 Personal Property – shall be assigned to the municipality or city
where the deceased last resided in the Philippines;
 Real Estate – municipalities or cities in which the property is
situated.
 Estate shall be for the benefit of public schools, and public
charitable institutions and centers, in such municipalities or cities.
PROVISIONS COMMON TO TESTATE AND INTESTATE
SUCCESSIONS
RIGHT OF ACCRETION
It is a right by virtue of which, when two or more persons are called
to the same inheritance, devise or legacy, the part assigned to the one who
renounces or cannot receive his share, or who died before the testator, is
added or incorporated to that of his co-heirs, co-devisees, or co-legatees.
(ARTICLE 1015)
REASON: It is a right based on the presumed will of the deceased that he
prefers to give certain properties to certain individuals, rather than to his
legal heirs.
REQUISITES FOR ACCRETION:
1. COMMON INHERITANCE;
2. TWO OR MORE PERSONS ARE CALLED TO INHERIT;
3. THERE IS PREDECEASE, INCAPACITY OR
REPUDIATION OF INHERITANCE BY OTHER HEIR;
4. ACCEPTANCE;
ACCRETION IN TESTAMENTARY SUCCESSION: (ARTICLE
1016)
(1) That two or more persons be called to the same inheritance, or to the
same portion thereof, PRO INDIVISO; and
(2) That one of the persons thus called die before the testator, or renounce
the inheritance, or be incapacitated to receive it.
***Pro Indiviso means UNDIVIDED;
***VOLUNTARY HEIR CANNOT BE REPRESENTED;
ACCRETION IN LEGAL SUCCESSION: (ARTICLE 1018)
*** share of the person who repudiates the inheritance shall always accrue
to his co-heirs.
*** The heirs to whom the portion goes by the right of accretion take it in
the same proportion that they inherit. (ARTICLE 1019)
ACCRETION AMONG COMPULSORY HEIRS (ARTICLE 1021):
***There can be NO ACCRETION insofar as the LEGITIME is concerned;
***ACCRETION CONCERNS ONLY THE FREE PORTION;
*** Should the part repudiated be the legitime, the other co-heirs SHALL
SUCCEED TO IT IN THEIR OWN RIGHT, and not by the right of
accretion.
CAPACITY TO SUCCEED BY WILL OR BY INTESTACY
REQUISITE FOR CAPACITY TO SUCCEED: (ARTICLE 1025)
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1. The heir, devisee or legatee MUST BE LIVING AT THE
MOMENT THE SUCCESSION OPENS, except in case of
representation, WHEN IT IS PROPER;
2.
2 KINDS of CAPACITY TO SUCCEED:
1. ABSOLUTE – can never inherit from anybody
a. Individuals, Associations, and Corporations NOT
PERMITTED BY LAW TO INHERIT; (ARTICLE 1027,
PAR. 6)
b. Those who lack juridical personality;
2. RELATIVE – cannot inherit only from certain persons or certain
properties, but can inherit from others or certain other properties;
a. POSSIBLE UNDUE INFLUENCE; (ARTICLE 1027)
i. (1) The priest who heard the confession of the testator
during his last illness, or the minister of the gospel who
extended spiritual aid to him during the same period;
ii. (2) The relatives of such priest or minister of the gospel
within the fourth dedgree, the church, order, chapter,
community, organization, or institution to which such
priest or minister may belong;
iii. (3) A guardian with respect to testamentary dispositions
given by a ward in his favor before the final accounts of
the guardianship have been approved, even if the testator
should die after the approval thereof; nevertheless, any
provision made by the ward in favor of the guardian when
the latter is his ascendant, descendant, brother, sister, or
spouse, shall be valid;
iv. (4) Any attesting witness to the execution of a will, the
spouse, parents, or children, or any one claiming under
such witness, spouse, parents, or children;
v. (5) Any physician, surgeon, nurse, health officer or
druggist who took care of the testator during his last
illness;
vi. (6) Individuals, associations and corporations not permitted
by law to inherit. 
b. PUBLIC POLICY ANF MORALITY (ARTICLE 1028,
739)
The following donations shall be void:
1. (1) Those made between persons who were guilty of
adultery or concubinage at the time of the donation;
(2) Those made between persons found guilty of the same
criminal offense, in consideration thereof;
(3) Those made to a public officer or his wife,
descendants and ascendants, by reason of his office.
c. UNWORTHINESS (ARTICLE 1032)
(1) Parents who have abandoned their children or
induced their daughters to lead a corrupt or immoral life, or
attempted against their virtue;
(2) Any person who has been convicted of an attempt
against the life of the testator, his or her spouse, descendants,
or ascendants;
(3) Any person who has accused the testator of a
crime for which the law prescribes imprisonment for six
years or more, if the accusation has been found groundless;
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(4) Any heir of full age who, having knowledge of
the violent death of the testator, should fail to report it to an
officer of the law within a month, unless the authorities have
already taken action; this prohibition shall not apply to cases
wherein, according to law, there is no obligation to make an
accusation;
(5) Any person convicted of adultery or concubinage
with the spouse of the testator;
(6) Any person who by fraud, violence, intimidation,
or undue influence should cause the testator to make a will or
to change one already made;
(7) Any person who by the same means prevents
another from making a will, or from revoking one already
made, or who supplants, conceals, or alters the latter's will;
(8) Any person who falsifies or forges a supposed
will of the decedent.
CAN A SOUL BE INSTITUED AS HEIR?
ANS: YES, ARTICLE 1029
RULES FOR CONDONATION: (ARTICLE 1033)
1. If at the time he made the will, testator ALREADY KNEW of the
causes of unworthiness, the mere fact of instituting the person
concerned, or giving him a devise or legacy, is an IMPLIED
CONDONATION.
2. If knowledge comes ONLY AFTER the execution of the will,
CONDONATION MUST BE IN WRITING.
***Capacity of the heir must be judged AT THE TIME OF THE
DEATH OF THE DECEDENT;
***In case of a SUSPENSIVE CONDITION, the heir must be capacitated
both AT THE TIME OF THE TESTATOR’S DEATH and AT THE TIME
THE CONDITION IS FULFILLED;
***Representation of incapacitated person by his children or descendants is
only in the LEGITIME because there is NO RIGHT OF
REPRESENTATION WITH RESPECT TO THE FREE PORTION;
(ARTICLE 1035)
***ACTION FOR A DECLARATION OF INCAPACITY and for the
recovery of the inheritance, devise or legacy SHALL BE BROUGHT
WITHIN FIVE YEARS FROM THE TIME THE DISQUALIFIED
PERSON TOOK POSSESSION THEREOF. (ARTICLE 1040)
***Anyone who may have an interest in the succession MAY BRING
THE ACTION;
ACCEPTANCE AND REPUDIATION
***Repudiation CAN ONLY BE DONE EXPRESSLY; (ARTICLE
1051)
***in a PUBLIC INSTRUMENT;
***PETITION TO THE COURT HAVING JURISDICTION OVER
THE TESTAMENTARY PROCEEDINGS;
***Effects of the acceptance or repudiation shall always retroact to the
moment of the death of the decedent. (ARTICLE 1042)
***No person may accept or repudiate an inheritance UNLESS he is
certain of the death of the person from whom he is to inherit, and of his
right to the inheritance. (ARTICLE 1043)
***Married woman of age may repudiate an inheritance without the consent
of her husband. (ARTICLE 1047)
***If the heir should die without having accepted or repudiated the
inheritance his right shall be transmitted to his heirs. (ARTICLE 1053)
***Should there be several heirs called to the inheritance, some of them
may accept and the others may repudiate it. (ARTICLE 1054)
***If a person, who is called to the same inheritance as an heir by will and
ab intestato, repudiates the inheritance in his capacity as a testamentary heir,
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he is understood to have repudiated it in both capacities. (ARTOCLE 1055
PAR.1)
***Should he repudiate it as an intestate heir, without knowledge of
his being a testamentary heir, he may still accept it in the latter capacity.
(ART. 1055, PAR. 2)
***The acceptance or repudiation of an inheritance, once made, is
irrevocable, and cannot be impugned: (ARTICLE 1056)
EXCEPT:
1. Made through any of the causes that vitiate consent, or
2. When an unknown will appears.
FORMS OF ACCEPTANCE – EXPRESS OR IMPLIED, PRESUMED
(ARTICLE 1049)
***EXPRESS ACCEPTANCE must be made in a public or private
document;
***IMPLIED ACCEPTANCE – one resulting from acts by which the
intention to accept is necessarily implied, or which one would have no right
to do except in the capacity of an heir;
(1) If the heirs sells, donates, or assigns his right to a stranger, or to
his co-heirs, or to any of them;
(2) If the heir renounces the same, even though gratuitously, for the
benefit of one or more of his co-heirs;
(3) If he renounces it for a price in favor of all his co-heirs
indiscriminately; but if this renunciation should be gratuitous, and the co-
heirs in whose favor it is made are those upon whom the portion renounced
should devolve by virtue of accretion, the inheritance shall not be deemed
as accepted. (ARTICLE 1050)
***PRESUMED ACCEPTANCE – if within 30 days after the court has
issued an order for the distribution of the estate, the people concerned have
not signified their acceptance or repudiation. (ARTICLE 1067)
WHEN CAN A CREDITOR BE A PARTY TO THE
DISTRIBUTION OF INHERITANCE?
ANSWER: ARTICLE 1052; f the heir repudiates the inheritance to the
prejudice of his own creditors, the latter may petition the court to
authorize them to accept it in the name of the heir.
***BUT ONLY TO AN EXTENT SUFFICIENT TO COVER THE
AMOUNT OF THEIR CREDITS;
***However, this is NOT ABSOLUTE! If the heir is still solvent
and has properties that can cover the debt, this article will not apply.
EXECUTORS AND ADMINISTRATORS
All matters relating to the appointment, powers and duties of executors and
administrators and concerning the administration of estates of deceased
persons shall be governed by the Rules of Court. (ARTICLE 1058)
COLLATION
Collation refers to the act of resorting to the common mass of the
hereditary estate, either actually or fictitiously, any property or right, which
a compulsory heir, who succeeds with other compulsory heirs, may have
received by way of donation or any other gratuitous title from the decedent,
during the lifetime of the latter, but which is understood for legal purposes
as an ADVANCE OF HIS LEGITIME.
WHAT ARE THE PROPERTIES OR RIGHTS WHICH A
COMPULSORY HEIR MAY HAVE RECEIVED BY GRATUITOUS
TITLE FROM THE DECEDENT WHICH ARE NOT SUBJECT TO
COLLATION?
1. Property left by will; (ARTICLE 1063)
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2. Property which may have been donated by an ascendant of the
compulsory heir to the children of the latter; (ARTICLE 1065)
3. Property donated to the spouse of the compulsory heir; (ARTICLE
1066)
a. Except when given to the spouses jointly;
4. Expenses for support, education, medical attendance even in
extraordinary illness, apprenticeship, ordinary equipment, or
customary gifts; (ARTICLE 1067)
5. Expenses incurred by parents in giving their children a professional,
vocational, or other career; (ARTICLE 1068)
6. Wedding gifts consisting of jewelry, clothing and outfit, given by
parents or ascendants, so long as they do not exceed one tenth of the
disposable portion.(ARTICLE 1070)
IN CASE A PROPERTY OR RIGHT IS BROUGHT TO
COLLATION, SHALL THE THING OR RIGHT DONATED BE
BROUGHT BACK TO THE MASS OF THE HEREDITARY ESTATE
OR ONLY THE VALUE?
ANSWER: ARTICLE 1071; The same things donated are not to be
brought to collation and partition, but only their value at the time of the
donation, even though their just value may not then have been assessed.
Their subsequent increase or deterioration and even their total loss
or destruction, be it accidental or culpable, shall be for the benefit or
account and risk of the donee.  the manner or method by which it is done, it may be EXTRAJUDICIAL
HOW TO EQUALIZE SHARES OF HEIRS IF THERE IS
COLLATION? (ARTICLE 1073, 1074)
1. Co-Heirs shall receive properties of the same NATURE,
CLASS, AND QUALITY;
2. If donated property is IMMOVABLE, Co-Heirs should receive the
cash equivalent or in securities, or sell other properties at public
auction;
3. If donated property is MOVABLE, Co-Heirs can select an
equivalent of other personal property in the estate at its just price.
REIMBURSABLE EXPENSES OF THE DONEE: (ARTICLE 1076)
1. Necessary Expenses for the preservation of the property;
2. Improvements to immovable which have increased value of
property;
3. Works for mere pleasure of done should be removed without
injuring the estate;
PARTITION
PARTITION, in general, is the separation, division and assignment of a
thing held in common among those to whom it may belong. The thing itself
may be divided, or its value. (ARTICLE 1079)
Every act which is intended to put an end to indivision among co-
heirs and legatees or devisees is deemed to be a partition, although it should
purport to be a sale, an exchange, a compromise, or any other transaction.
(ARTICLE 1082)
WHAT ARE THE DIFFERENT KINDS OF PARTITION?
As regards it extent, partition may be TOTAL OR PARTIAL; As
regards its duration, it may be PROVISIONAL OR DEFINITE; As regards
OR JUDICIAL.
HOW PARTITION IS IS MADE? (ARTICLE 1085, 1086 AND 1087)
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1. Equality shall be observed as far as possible, dividing the property
into lots, or assigning to each of the co-heirs things of the same
nature, quality and kind;
2. Should a thing be indivisible, or would be much impaired by its
being divided, it may be adjudicated to one of the heirs, provided he
shall pay the others the excess in cash;
3.  In the partition the co-heirs shall reimburse one another for the
income and fruits which each one of them may have received from
any property of the estate, for any useful and necessary expenses
made upon such property, and for any damage thereto through
malice or neglect.  IT CANNOT, HOWEVER, BE DEMANDED IN THE
WHO MAY EFFECT THE PARTITION OF THE DECEDENT’S
ESTATE?
ANSWER: The partition of the decedent’s estate may be effected:
1. By the decedent himself during his lifetime by an act inter vivos or
by will (ARTICLE 1080);
2. By a third person designated by the decedent by means of an act
inter vivos or by will; (ARTICLE 1081);
3. By the heirs themselves; (ARTICLE 1083, 1084)
4. By a competent court in accordance with the Rules of Court;
IS IT POSSIBLE FOR A TESTATOR TO PROHIBIT THE
PARTITION OF HIS ENTIRE ESTATE EVEN IF THERE ARE
COMPULSORY HEIRS?
ANSWER: YES, he may do so if he so desires, but in such case the period
of indivision shall not exceed 20 years. This POWER OF THE
TESTATOR APPLIES EVEN TO THE LEGITIME OF
COMPULSORY HEIRS. (ARTICLE 1083)
WHO CAN DEMAN THE PARTITION OF THE DECEDENT’S
ESTATE AFTER HIS DEATH? WHEN CAN PARTITION NOT BE
DEMANDED?
ANSWER: The partition of the decedent’s estate after his death may be
demanded:
1. BY ANY COMPULSORY HEIR; OR
2. BY ANY VOLUNTARY HEIR; OR
3. BY ANY LEGATEE OR DEVISEE, OR
4. BY ANY PERSON WHO HAS ACQUIRED AN INTEREST IN
THE ESTATE.
FOLLOWING CASES:
1. When the partition has been expressly prohibited by the
testator himself for a period which shall not exceed 20 years;
(ARTICLE 1083)
2. When the co-heirs have agreed that the estate shall not be
divided for a period which shall not exceed 10 years,
renewable for another 10 years;
3. When the partition is prohibited by law;
4. When to partition the estate would render it unserviceable for
the use for which it is intended
IF AN HEIR SELLS HIS HEREDITARY RIGHT TO A STRANGER
BEFORE THE PARTITION OF THE DECEDENT’S ESTATE,
WHAT IS THE RIGHT GIVEN TO THE OTHER CO-HEIRS?
WHAT REQUISITES MUST CONCUR IN ORDER THAT THE
RIGHT MAY BE AVAILED OF?
ANSWER: The co-heirs in such a case are subrogated to the rights of the
purchaser by reimbursing him for the price of the sale, provided THEY DO
SO WITHIN THE PERIOD OF ONE MONTH FROM THE TIME
THEY WERE NOTIFIED IN WRITING OF THE SALE BY THE
VENDOR; (ARTICLE 1088)
This RIGHT OF LEGAL REDEMPTION may be exercised by any or all
of the co-heirs if the following requisites are present or are complied with:
(1) That there must be several co-heirs;
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(2) that one of them sells his rights to a stranger;
(3) that the sale is made before the partition is effected;
(4) that the right is exercised within a period of one month to be counted
from the time they were notified in writing by the co-heir vendor; and
(5) that the vendee is reimbursed for the price of the sale.
WHAT IS THE EFFECT IF THERE IS A PRETERITION OF ANY
OF THE COMPULSORY HEIRS IN THE PARTITION OF THE
DECEDENT’S ESTATE?
ANSWER: A partition made with preterition of any of the compulsory
heirs shall not be rescinded, unless it be proved that there was bad faith or
fraud on the part of the other persons interested; but the latter shall be
proportionately obliged to pay to the person omitted the share which
belongs to him; (ARTICLE 1104)
EFFECTS OF PARTITION:
1. A partition legally made confers upon each heir the exclusive
ownership of the property adjudicated to him;
2.  The co-heirs shall be reciprocally bound to warrant the title to, and
the quality of, each property adjudicated. (ARTICLE 1092)
RESCISSION AND NULLITY OF PARTITION
***Partition may be rescinded or annulled for the same causes as contracts
(ARTICLE 1097)
WHAT IS THE EFFECT IF THE PARTITION INCLUDES A
PERSON BELIEVED TO BE AN HEIR, BUT WHO IS NOT?
ANSWER: A partition which includes a person believed to be an heir, but
who is not, shall be void only with respect to such person. (ARTICLE
1105)
SALES
ARTICLE 1484 – RECTO LAW - SALE OF MOVABLES ON
INSTALLMENT
 In a contract of sale of personal property the price of
which is payable in installments, the vendor may exercise
any of the following remedies:
 (1) EXACT FULFILLMENT OF THE
OBLIGATION, should the vendee fail to pay;
 (2) CANCEL THE SALE, should the vendee's
failure to pay cover two or more installments;
 (3) FORECLOSE THE CHATTEL MORTGAGE
ON THE THING SOLD, if one has been
constituted, should the vendee's failure to pay cover
two or more installments. In this case, he shall have
no further action against the purchaser to recover any
unpaid balance of the price. Any agreement to the
contrary shall be void.
ARTICLE 1485 - LEASE OF PERSONAL PROPERTY WITH
OPTION TO BUY
 The preceding article shall be applied to contracts purporting
to be leases of personal property with option to buy, WHEN
the lessor has deprived the lessee of the possession or
enjoyment of the thing.
ARTICLE 1486 – STIPULATION THAT INSTALLMENTS OR
RENTS PAID SHAL NOT BE RETURNED
 In the case referred to in the two preceding articles, a
stipulation that the installments or rents paid shall not be
returned to the vendee or lessee SHALL BE VALID insofar
as the same MAY NOT BE UNCONSCIONABLE under
the circumstances.
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*** Article 1484 is known as the RECTO LAW, which provides for the EXCEPTION: If after choosing, it has become impossible,
remedies of the seller in a sale of personal property that is payable in rescission may be pursued.
instalments IN CASE THE BUYER FAILS TO PAY.
***available when the vendee buyer) fails to pay one instalment.
REMEDIES
1. Exact fulfilment of the obligation; ***not a preferred remedy.
2. Cancellation of the sale;
***Vendor may not opt this remedy
3. Foreclosure of the chattel mortgage on the thing
-When there is impossibility to collect
sold.
-When the Institution of the action for specific performance is
REQUISITES of ARTICLE 1484
ridiculously expensive
1. The CONTRACT is a CONTRACT OF SALE;
-When there is a substantial negative impact on the parties or a 3rd
2. The OBJECT of the contract of sale is a
party.
PERSONAL PROPERTY;
2. CANCEL THE SALE; if the buyer fails to pay 2 or more installments
3. The PURCHASE PRICE is payable in
INSTALLMENT; *** Even without actually instituting an action for rescission, there are
4. There is a FAILURE TO PAY an instalment. cases wherein the COURT concluded that the vendor (seller) chose the 2nd
remedy.
 NATURE OF REMEDIES DEEMED CHOSEN When:
 ALTERNATIVE not CUMULATIVE 1. NOTICE of RESCISSION is SENT
 Means that the exercise of one bars the 2. Takes possession of Subject Matter of Sale
exercise of the others. 3. Files Action for Rescission
 The remedies applies also to contracts
purporting to be leases of personal property EFFECTS OF RESCISSION:
with OPTION TO BUY.
 Creates the obligation to return the things which were the object of
 The vendor or his ASSIGNEE has the
the contract, together with their fruits, and the price with interest;
discretion which among the 3 remedies
o It can be carried out only when he WHO DEMANDS
should be availed of.
RESCISSION can RETURN whatever he may be OBLIGED
 DOES NOT APPLY: in a case wherein a
TO RESTORE.
vendor secured a loan from 3rd party lender to
pay the balance
3. FORECLOSURE OF THE CHATTEL MORTGAGE; if buyer fails
REMEDIES to pay 2 or more instalments

1. EXACT FULFILLMENT OF THE OBLIGATION GENERAL RULE: ACTUAL FORECLOSURE is necessary to bar
recovery of balance of the purchase price.
GENERAL RULE: If availed of, the UNPAID SELLER cannot
anymore choose other remedies;
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EXCEPTION: Mortgagor refuses to deliver property to effect GENERAL RULE: The seller bears the expenses for the
foreclosure; expenses incurred in attorneys fees execution and registration of the sale.
EXCEPTION: Unless there is a stipulation to the contrary.
Magna Financial Services Group, Inc. vs Colarina – It is demed that there has been
foreclosure of the mortgage when all the proceedings of the foreclosure, including the  ARTICLE 1488 – EXPROPRIATION OF PROPERTY
sale of the property at public auction, have been accomplished.
 The expropriation of property for public use is governed by
*** Under the law, the delivery of possession of the mortgaged property to special laws.
the mortgagee can only operate to extinguish appellant’s liability if the
appellee had actually caused the foreclosure sale of the mortgaged property CHAPTER 2: CAPACITY TO BUY OR SELL
when it recovered possession thereof.
ARTICLE 1489 – CAPACITY TO BUY OR SELL
*** If there has been NO FORECLOSURE of the chattel mortgage or a
foreclosure sale, then the PROHIBITION AGAINST FURTHER  All persons who are authorized in this Code to obligate
COLLECTION of the BALANCE of the PRICE DOES NOT APPLY. themselves, may enter into a contract of sale, saving the
modifications contained in the following articles.
CONDITIONS IN APPLYING ARTICLE 1485:
1. The contract purports to be a lease of personal property with Where necessaries are those sold and delivered to a
option to buy; and minor or other person without capacity to act, he must pay a
2. The lessor has deprived the lessee of possession or enjoyment of reasonable price therefor. Necessaries are those referred to in
the thing. article 290.
NON-APPLICABILITY OF ARTICLES 1484 and 1485
GENERAL RULE: All pesons, whether natural or juridical, who
-if the seller or lessor did not avail of the options set forth in Article 1484:
can bind themselves have of the legal capacity to buy or sell.
instead the seller utilized to repossess the object under the Lease-Purchase
Agreement.
EXCEPTIONS: Persons who are absolutely incapacitated to
enter in a contract of sale.
***stipulation that instalments or rents paid shall not be returned to the
vendee or lessee shall be VALID insofar as the same may NOT BE
2 KINDS OF INCAPACITY
UNCONSCIONABLE under the circumstances.
1.Absolute
2.Relative
ARTICLE 1487 – WHO SHALL BEAR EXPENSES FOR
EXECUTION AND REGISTRATION OF SALE
***status of the contract is voidable; intended to protect the minor
 The expenses for the execution and registration of the sale or incapacitated person from being compelled to go through with a
shall be borne by the vendor, unless there is a stipulation to transaction that takes advantage of his minority or lack of intelligence.
the contrary.

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CIVIL LAW REVIEWER
***Insane or demented Persons, and deaf-mutes who do not know
how to write – other incapacitated persons.
***Deaf, Blind, Physically challenge or dumb are not incapacitated
to enter into a contract of sale as long as they are of sound mind and fully
aware of the nature of the transaction they are engaging.
***A minor who falsely represented himself to be of age of minority
and entered into a contract of sale, is barred by the principle of estoppels to
annul the contract on the ground of his minority.
 NECESSARIES – not limited to basic needs such as food, clothing
or medicine. Such term also connotes “support” under Article 194 of
the Family Code
o Support comprises everything indispensable for sustenance,
dwelling, clothing, medical attendance, education and
transportation, in keeping with the financial capacity of the
family.
The education of the person entitled to be supported
referred to in the preceding paragraph shall include his
schooling or training for some profession, trade or vocation,
even beyond the age of majority. Transportation shall
include expenses in going to and from school, or to and from
place of work.
ARTICLE 1490 – RELATIVE INCAPACITY
 The husband and the wife cannot sell property to each other,
except:
 (1) When a separation of property was agreed upon in
the marriage settlements; or
 (2) When there has been a judicial separation of
property under article 191.
GENERAL RULE: The husband and the wife cannot sell property
to each other.
EXCEPTIONS:
1. When a separation of property was agreed upon in the
marriage settlements.
2. When there has been a judicial separation of property.
***Under the Family Code, the present law that governs ownership,
administration, enjoyment and disposition of the property of the
husband and wife is Article 96, which provides:
“The administration and enjoyment of the community property shall
belong to both spouses jointly. In case of disagreement, the husband's
decision shall prevail, subject to recourse to the court by the wife for proper
remedy, which must be availed of within five years from the date of the
contract implementing such decision.
In the event that one spouse is incapacitated or otherwise unable to
participate in the administration of the common properties, the other spouse
may assume sole powers of administration. These powers do not include
disposition or encumbrance without authority of the court or the written
consent of the other spouse. In the absence of such authority or consent, the
disposition or encumbrance shall be void. However, THE TRANSACTION
SHALL BE CONSTRUED AS A CONTINUING OFFER on the part of
the consenting spouse and the third person, and may be perfected as a
binding contract upon the acceptance by the other spouse or authorization
by the court before the offer is withdrawn by either or both offerors.”
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***Being aware of the sale is not CONSENT.
***Court held that to be valid: signatures of the spouses to signify their
written consent must be on the same document.
ILLUSTRATION:
Boy and Ginger contracted marriage on December 30, 2011, without a
marriage settlement. In 2012, they acquired a parcel of land in Angono, Rizal. On
June 1, 2013, when Boy was working in Dubai, Ginger sold the land to Red. Only
Ginger signed her name in the Deed of Sale. Is the SALE VALID?
Answer: No, the sale is VOID.
Under Article 96 of the Family Code, the disposition of the community property
must be with authority of the court or the written consent of the other spouse; otherwise, the
disposition shall be void.
In the given case, the contract of sale entered by Ginger over their community
property is clearly an act of strict dominion, a form of disposition, and must be consented to
by her husband, Boy, in order to be valid. The contract of sale in this case was executed on
June 1, 2013, when Boy was working in Dubai. Likewise, only Ginger signed the Deed of
Sale.
Thus, since the contract of sale is without written authority or consent of Boy, the
sale is necessarily void. However, the transaction is considered as a CONTINUING
OFFER between ginger and Red, which will be perfected only upon Boy’s acceptance.
ARTICLE 1491 – INCAPACITY TO BUY OR SELL
 The following persons cannot acquire by purchase, even at a
public or judicial auction, either in person or through the
mediation of another:
 (1) The guardian, the property of the person or
persons who may be under his guardianship;
 (2) Agents, the property whose administration or
sale may have been intrusted to them, unless the
consent of the principal has been given;
 (3) Executors and administrators, the property of the
estate under administration;
 (4) Public officers and employees, the property of the
State or of any subdivision thereof, or of any
government-owned or controlled corporation, or
institution, the administration of which has been
intrusted to them; this provision shall apply to judges
and government experts who, in any manner
whatsoever, take part in the sale;
 (5) Justices, judges, prosecuting attorneys, clerks of
superior and inferior courts, and other officers and
employees connected with the administration of justice,
the property and rights in litigation or levied upon an
execution before the court within whose jurisdiction or
territory they exercise their respective functions; this
prohibition includes the act of acquiring by assignment
and shall apply to lawyers, with respect to the property
and rights which may be the object of any litigation in
which they may take part by virtue of their profession;
 (6) Any others specially disqualified by law.
*** Pohibition under No. 2 connotes the idea of trust and confidence; where
the relationship does not involve considerations of good faith and integrity,
the prohibition should not and DOES NOT APPLY.
-to come under the prohibition, agent must be in a fiduciary with his
principal.
PNOTES
CIVIL LAW REVIEWER
***Sale entered by guardian, agent, executor or administrator may be cured
by subsequent execution of another contract of sale when the cause of
nullity has ceased to exist.
***Ratification or Second Contract would be valid from its execution;
however it does not retroact to the date of the first contract.
ILLUSTRATION:
Mandeng is the father and guardian of Joven, a minor. Mandeng sold to
Belen a land belonging to Joven, without judicial approval. After the sale, Belen
immediately took possession of the land, built a house and annually paid the real
property taxes thereon. Eight years thereafter, Joven, no longer a minor, leased the
GF of the house built by Belen. Joven paid the rent for the first few months, then
stopped paying. 2 years thereafter, when Belen demanded for payment of the
accrued rent, Joven refused, claiming ownership over the property. Joven stressed
that the sale was null and void because the sale was without approval of
guardianship court, considering that he he was a minot that time. Is the claim of
Joven valid and meritorious?
Answer: No, Joven’s claim is not valid and not meritorious because he ratified the
contract of sale.
The required judicial approval in this case would give an imprimatur of validity
in the contract of sale entered into by the guardian, Mandeng, on behalf of his ward,
Joven. However, the absence of such approval would not render the contract of sale as
null and void; utmost the contract is voidable. Hence, the defect may be cured by
ratification.
In the given case, Joven, who was already of majority age, entered into a
contract of lease with Belen with regard to the house built on the subject land. A lessee
cannot assail the right and title of the lessor and cannot claim ownership as against the
lessor. This is a form of ratification which is implied from his conduct, and he is already
precluded from denying the same virtue of estoppel.
***On prohibition against public officers; it applies only with respect to the
sale of the state or government property of which administration has been
intrusted to them.
***In addition, they are also prohibited from purchasing directly or
indirectly any property sold by the government for non-payment of any tax,
fee or other public charge.
***Civil Code forbids lawyers from acquiring by purchase or assignment,
property and rights which are the object of any litigation in which they may
take part by virtue of their profession.
ILLUSTRATION:
Nene asked Og to handle her civil case for recovey of her land in Angono,
Rizal against a well-known property developer on a contingent fee basis. Og asked for
20% of the land that may be recovered or 20% of whatever monetary settlement that
may be received from the property developer as his only fee contingent upon securing
a favourable final judgement or compromise settlement. Nene signed the contingent
fee agreement. The case eventually reached the SC which promulgated a decision in
favor of Nene. This time Nene refused to convey to Og 20% of the litigated land as
stipulated on the ground that the agreement violates Article 1491 of the Civil Code
which prohibits lawyers from acquiring properties and rights which are the object of
litigation in which they take part by reason of their profession. Is NENE’s REFUSAL
JUSTIFIED? EXPLAIN.
Answer: No, Nene’s refusal is not justified.
Article 1491(5) of the Civil Code prohibits lawyers from acquiring by purchase or
assignment the property or rights involved which are the object of the litigation in which
they intervene by virtue of their profession. The prohibition applies only during the
pendency of the suit and generally does not cover contracts for contingent fees where the
transfer takes effect only after the finality of a favourable judgement.
PNOTES
 CIVIL LAW REVIEWER
***The prohibition against purchase made by public officers and employees,
justices, fiscals and lawyers is grounded on the fundamental consideration
of public policy because public interest being involved therein.
-the nullity of these prohibited contracts is ABSOLUTE< DEFINITE AND
PERMANENT, and cannot be cured by ratification.
***Other persons who are specially disqualified by law
1. Section 7 , Article XII of 1987 Constitution
o Save in cases of hereditary succession, no private lands shall
be transferred or conveyed except to individuals,
corporations, or associations qualified to acquire or hold
lands of public domain.
***Sale of lands to foreign nationals is void.
ILLUSTRATION:
Ben sold his unregistered land to Spouses Jose and Maria Santos in
1995. Spouses Santos built their home thereon. Spouses Santos migrated to the
US and became American Citizens in 2005. During their vacation in the
Philippines in 2010, they filed for an application for registration of title to the
said land. The application is opposed by the RP on the ground that Spouses
Santos are no longer qualified to acquire private lands because they are now
aliens. Is the ground of the opposition tenable?
Answer: No, the ground of the opposition is not tenable.
As a rule, lands of private ownership may not alienated in favor of aliens.
However, this rule does not apply to Spouses Santos because at the time they
acquired ownership over the land, they were still Filipino citizens. The application
for registration of title to a land is a mere confirmation of the imperfect title which
the spouses acquired at the time the said land was delivered to them in 1995, which
is ten years before they became American citizens.
2. The seller who is exercising the unpaid seller’s right of resale cannot,
directly or indirectly, buy the goods either by public or private sale.
3. The seller who has not reserved expressly his right to bud in an auction
sale cannot, directly or indirectly, bid at such sale on his behalf.
ARTICLE 1492
 The prohibitions in the two preceding articles are applicable
to sales in legal redemption, compromises and renunciations.
EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS
BEEN LOST
ARTICLE 1493
 If at the time the contract of sale is perfected, the thing which
is the object of the contract has been entirely lost, the
contract shall be without any effect.
 But if the thing should have been lost in part only, the
vendee may choose between withdrawing from the contract
and demanding the remaining part, paying its price in
proportion to the total sum agreed upon. (1460a)
ARTICLE 1494
 Where the parties purport a sale of specific goods, and the
goods without the knowledge of the seller have perished in
part or have wholly or in a material part so deteriorated in
quality as to be substantially changed in character, the buyer
may at his option treat the sale:
PNOTES
CIVIL LAW REVIEWER
 (1) As avoided; or


(2) As valid in all of the existing goods or in so much
thereof as have not deteriorated, and as binding the
buyer to pay the agreed price for the goods in which
the ownership will pass, if the sale was divisible. (n)
***Loss is understood that the thing is lost when it perishes, goes out of
commerce, or disappears in such a way that its existence is unknown or it
cannot be recovered.

***Risk of loss in a contract of sale is transferred when the ownership of

the determinate thing is transferred through delivery.

***PRINCIPLE OF RES PERIT DOMINO – the risk of loss of the  AFTER DELIVERY
determinate thing due to fortuitous event is transferred from the seller to the o The Buyer, as the new owner, bears the risk of loss
buyer at the time of the delivery.
***when the seller retains ownership only to insure that the buyer will pay
EXCEPT: when the law provides for a separate rule in determining the its debt, the risk of loss is borne by the buyer.
person who shall bear the risk of loss.
EXCEPTION:
LOSS OF THE DETERMINATE THING IN THE DIFFERENT  Actual and Physical Delivery is delayed through the fault of the
STAGES OF A SALE TRANSACTION seller
 Loss of the thing sold with hidden defaults or defects
 BEFORE PERFECTION OF THE CALE
ILLUSTRATION: o Will depend on his awareness of the default at the time of
o Seller bears the risk of loss
El Cid bought the red Ferrari of Carlo which the latter should deliver to the sale
 onAT
former THE 15,
January TIME
2014.OF PERFECTION
On January 16, 2014, the Ferrari was struck by
lightning while AWARE:
o Shall be governed by Article to
it was being driven to be delivered El Cid. El Cid sued Carlo for
1493
damages because the latter failed to deliver the Ferrari. Carlo replied in his answer The seller shall:
 obligation
that his AFTER had PERFECTION BUT
been extinguished BEFOREevent.
by fortuitous DELIVERY
IS CARLO LIABLE 1. Bear the loss;
FOR DAMAGES? o Shall be in accordance with the parties stipulation; If none,
2. Return the price;
Answer: The answer the to
party at fault depends
this question shall bewhether
liable.or not Carlo, the seller, was 3. Refund the Expenses of the contract, and
already in default at the time of the accident.
4. Pay Damages.
Article 1262 of the Civil Code provides that “an obligation which consists in the
delivery of a determinate thing shall be extinguished if it should be lost or destroyed NOT AWARE:
without the fault of the debtor, and before he has incurred in delay. The seller shall:
If Carlo was in default, he could not invoke the extinguishment of his obligation
by fortuitous event. This is because his default made him responsible for fortuitous events. PNOTES
On the other hand, if Carlo was not in default, as no demand had been sent to
him prior to the accident, his obligation to deliver was extinguished. Thus, he could not be
held answerable for damages as the loss of the car was not imputable to his fault.
CIVIL LAW REVIEWER
1. Return the price and interest thereon, and
2. Reimburse the expenses of the contract which the
vendee might have paid.
OBLIGATIONS OF THE VENDOR
Principal Obligations of the Vendor (Seller)
1. Obligation to Preserve the Object of the Sale
2. Obligation to Transfer Ownership
3. Obligation to Deliver
4. Obligation to Warrant the Object of the Sale Against Eviction
And Hidden Defects
OBLIGATION TO TRANSFER OWNERSHIP
ARTICLE 1495
 The vendor is bound to transfer the ownership of and deliver,
as well as warrant the thing which is the object of the sale.
(1461a)
Article 1496 – Ownership is Transferred Upon Delivery
 The ownership of the thing sold is acquired by the vendee
from the moment it is delivered to him in any of the ways
specified in articles 1497 to 1501, or in any other manner
signifying an agreement that the possession is transferred
from the vendor to the vendee.
GENERAL RULE: Ownership of the thing sold is transferred to the
vendee or the buyer upon delivery.
***the ownership of the thing sold is not transferred to the vendee until
actual or constructive delivery of the property.
CONCEPT OF DELIVERY
-Contemplate the absolute giving up of the control and custody of
the property on the part of the vendor, and the assumption of the same by
the vendee.
***issuance of a sales invoice does not prove transfer of ownership of the
thing sold to the buyer. An invoice is nothing more than a detailed statement
of the nature , quantity and cost of the thing sold and has been considered
not a bill of sale.
OBLIGATION TO DELIVER IS WITH PERIOD
ILLUSTRATION:
The buyer sues the seller for specific performance with damages because the
seller has not made the delivery. The defense of the seller is that his obligation to deliver
should be with a period which, incidentally, had not been fixed by them, hence, the need
for fixing a judicial period. Will the action for specific performance of the buyer against
the seller prosper?
Answer: No, the action for specific performance filed by the buyer is premature under Article
1197 of the Civil Code. If the parties
OBLIGATION AScontemplated
TO EXPENSES a period but itOFhas DELIVERY
not been fixed, the parties
themselves should fix that period. In case the parties fail to fix it, the Court may be asked to fix
theGENERAL
duration thereof RULE:
taking into The seller bears
consideration the expenses
the probable contemplation ofofand incidental
the parties. Beforeto
the period is fixed, an action for specific performance is premature.
putting the goods into a deliverable state.
EXCEPTION: Unless otherwise agreed.
 OBLIGATION to ENTER INTO A CONTRACT WITH THE
CARRIER ON BEHALF OF THE BUYER FOR THE
DELIVERY OF THE GOODS
GENERAL RULE: The seller must make such contract with the carrier on
behalf of the buyer as may be reasonable, having regard to the
nature of the goods and the other circumstances of the case.
EXCEPTION: Unless otherwise authorized by the buyer
*** If the seller omits to do so, and the goods are lost or damaged in course
of transit, the buyer may decline to treat the delivery to the carrier as
a delivery to himself, or may hold the seller responsible in damages.
PNOTES
 CIVIL LAW REVIEWER
OBLIGATION TO NOTIFY THE BUYER THE o Traditio Brevi Manu
IMPORTANCE OF INSURING THE GOODS IF IT IS USUAL o Traditio Constitutum Possessorium
TO INSURE THEM UNDER THE CIRCUMSTANCES o Delivery through a Carrier or Courier
GENERAL RULE: The seller must give notice to the buyer that it is usual o When goods are in the possession of a 3rd person who
to insure the goods under the circumstances. acknowledges that he holds them on behalf of the buyer
***Purpose is to enable the buyer to insure the gods during their transit 3. QUASI –TRADITION
***If the seller fails to do so, the goods shall be deemed to be at his risk  Delivery of rights, credits or corporeal property is made by
during such transit. o Placing titles of ownership in the hands of buyer; or
EXCEPTION: Unless otherwise agreed o Allowing buyer to make use of the rights.
4. TRADITION by OPERATION OF LAW
OBLIGATION TO GIVE THE BUYER A REASONABLE
ARTICLE 1498 – SALE MADE THROUGHA PUBLIC
OPPORTUNITY OF EXAMINING THE GOODS:
INSTRUMENT
GENERAL RULE: The seller affords the buyer, upon the latters request,
 When the sale is made through a public instrument, the execution
a reasonable opportunity of examining the goods when he tenders
thereof shall be equivalent to the delivery of the thing which is the
delivery of goods to the buyer.
object of the contract, if from the deed the contrary does not appear
***Purpose is in order for the buyer to ascertain whether the goods
or cannot clearly be inferred.
are in conformity with the contract
 With regard to movable property, its delivery may also be made by
EXCEPTION: Unless otherwise agreed.
the delivery of the keys of the place or depository where it is stored
or kept.
ARTICLE 1497 – DELIVERY OF THE THING SOLD
GENERAL RULE: The execution of a public instrument amounts to a
 The thing sold shall be understood as delivered, when it is
constructive delivery of the thing subject of a contract of sale.
placed in the control and possession of the vendee.
EXCEPTIONS:
METHODS OF DELIVERY
1. When the contrary is provided in the public instrument
1. ACTUAL DELIVERY
2. When mere presumptive and not conclusive delivery is created in
 Contemplates real delivery.
cases where the buyer fails to take material possession of the subject
2. CONSTRUCTIVE DELIVERY
sale.
 Delivery takes place in another manner; indicative of the intention to
***Constructive or Symbolic Delivery, being merely presumptive, is
deliver the thing for the purpose of transferring ownership
deemed negated by the failure of the vendee to take actual possession of the
o Delivery by the execution of a public instrument
land sold.
o Traditio Symbolica
o Traditio Longa Manu
PNOTES
 CIVIL LAW REVIEWER
***TRADITIO SYMBOLICA – with regard to movable property, its
delivery may also be made by delivery of the keys of the place or depository
where it is stored or kept.
-The parties make use of a token or symbol to represent the thing sold.
-includes any bill of lading, dock, warrant, quedan or warehouse receipt
or order for the delivery of goods, or any other document used in the
ordinary course of business, as proof of possession or control of the goods,
o authorizing or purporting to authorize the possessor of the document to
transfer or receive, either by indorsement or by delivery, goods represented
by such document.

ARTICLE 1499
 The delivery of movable property may likewise be made by the
mere consent or agreement of the contracting parties, if the thing
sold cannot be transferred to the possession of the vendee at the time
of the sale, or if the latter already had it in his possession for any
QUASI-TRADITION (DELIVERY OF INCORPOREAL
other reason. PROPERTY)
TRADITIO LONGA MANU ARTICLE 1501
- Parties may agree for a specific manner of delivery other than actual  With respect to incorporeal property, the provisions of the first
ILLUSTRATION:
delivery.
Rhandy, an OFW in Dubai, planned to operate and drive his own Uber car when he paragraph of article 1498 shall govern. In any other case wherein
returns in the
- ConsentPhilippines.to While in Dubai,
this kind and one week
of delivery maybefore his return,
be express orhis friend Lloyd,
implied. said provisions are not applicable, the placing of the titles of
offered him his slightly used car P600K. Rhandy accepted the offer and paid the whole amount
TRADITIO
through a remittance BREVI
company.MANU They agreed that the car would remain with Lloyd until Rhandy
ownership in the possession of the vendee or the use by the
arrives in 2 days time. Rhandy, upon
-before contract request,
of sale, theletwould
Lloyd usebethe car towas
buyer enable the latter
already in to bring his vendee of his rights, with the vendor's consent, shall be
wife to the hospital. While he was on the way back home, the car was hit by a 10 wheeler truck. understood as a delivery. 
possession
After knowing ofwhat
the happened,
would beRhandysubject matter for
demanded of the
sale.
return of his payment. Lloyd,
however, refused to return it on the ground that the loss should be borne by Rhandy as the owner
***incorporeal property is an intangible thing which a person can have an
ARTICLE 1500 ownership of, and which he can likewise transfer to another person.
of the car. Rhandy countered that he could not be the owner thereof since it had not been
delivered to him. WHO  There SHOULD mayBEARalso THE
be tradition
LOSS? constitutum possessorium.

Answer: ***Constitutum
Rhandy should bear thePossessorium
loss of the car sinceishethe
wasreverse
the ownerof tradition
thereof brevi
at the time manu.
it was hit.
ARTICLE 1502 – DELIVERY “ON SALE OR RETURN” OR
The seller continues
It is a well settled rulehis
thatpossession of thething
once the determinate determinate
is delivered thing- no longer
and its ownership is in “APPROVAL OR TRIAL”
transferred from the seller to the buyer, the risk of loss of the thing sold is likewise transferred from the
the  When goods are delivered to the buyer "on sale or return" to
seller to concept of the toowner
the buyer pursuant – butofunder
the principle res peritadomino
different title or
(the owner in thing
of the a different
bears its loss)
give the buyer an option to return the goods instead of paying the price,
capacity.
It is not true that Rhandy could not be the owner od the car, because the ownership thereof
was transferred to him through constructive delivery, particularly tradition consitutum possessorium; the ownership passes to the buyer on delivery, but he may revest the
though the actual and physical possession thereof was still with the seller since it is still to be physically ownership in the seller by returning or tendering the goods within the
delivered. A t the time the car was hit, Lloyd was holding the car in another capacity, as a borrower or
bailee. The contract was commodatum, a contract whereby one of the parties delivers to another PNOTES
something not consumable so that the latter may use it for a certain time and return it. This could be
established by the fact that Lloyd even made a request to Rhandy for the use of the car, which the latter
granted
CIVIL LAW REVIEWER
time fixed in the contract, or, if no time has been fixed, within a
reasonable time. (n)
When goods are delivered to the buyer on approval or on trial or
on satisfaction, or other similar terms, the ownership therein passes to
the buyer:
(1) When he signifies his approval or acceptance to the seller or does
any other act adopting the transaction;
(2) If he does not signify his approval or acceptance to the seller, but
retains the goods without giving notice of rejection, then if a time
has been fixed for the return of the goods, on the expiration of such
time, and, if no time has been fixed, on the expiration of a
reasonable time. What is a reasonable time is a question of fact. (n)
ARTICLE 1503 – DELIVERY THROUGH A CARRIER OR
COURIER
 When there is a contract of sale of specific goods, the seller
may, by the terms of the contract, reserve the right of
possession or ownership in the goods until certain conditions
have been fulfilled. The right of possession or ownership
may be thus reserved notwithstanding the delivery of the
goods to the buyer or to a carrier or other bailee for the
purpose of transmission to the buyer.
Where goods are shipped, and by the bill of lading the goods are
deliverable to the seller or his agent, or to the order of the seller or of
his agent, the seller thereby reserves the ownership in the goods.
But, if except for the form of the bill of lading, the ownership would
have passed to the buyer on shipment of the goods, the seller's
property in the goods shall be deemed to be only for the purpose of
securing performance by the buyer of his obligations under the
contract.
Where goods are shipped, and by the bill of lading the goods are
deliverable to order of the buyer or of his agent, but possession of
the bill of lading is retained by the seller or his agent, the seller
thereby reserves a right to the possession of the goods as against the
buyer.
Where the seller of goods draws on the buyer for the price and
transmits the bill of exchange and bill of lading together to the buyer
to secure acceptance or payment of the bill of exchange, the buyer is
bound to return the bill of lading if he does not honor the bill of
exchange, and if he wrongfully retains the bill of lading he acquires
no added right thereby. If, however, the bill of lading provides that
the goods are deliverable to the buyer or to the order of the buyer, or
is indorsed in blank, or to the buyer by the consignee named therein,
one who purchases in good faith, for value, the bill of lading, or
goods from the buyer will obtain the ownership in the goods,
although the bill of exchange has not been honored, provided that
such purchaser has received delivery of the bill of lading indorsed
by the consignee named therein, or of the goods, without notice of
the facts making the transfer wrongful. (n)
GENERAL RULE: Delivery of the goods to a carrier or courier is deemed
to be a delivery of the goods to the buyer.
EXCEPTIONS:
1. The contrary intention appears. (express or implied)
2. The seller reserves the right of possession or ownership in the goods
until certain conditions have been fulfilled
3. Based on the bill of lading, the goods are deliverable to the seller or
his agent, or to the order of the seller or of his agent.
PNOTES
CIVIL LAW REVIEWER
4. Based the bill of lading, the goods are deliverable to order of the
buyer or of his agent, but possession of the bill of lading is retained by
the seller or his agent.
***applicable only to ordinary contracts, not to Build and Operate
Transfer Agreement which is a contract of a special nature wherein the
project proponent transfers the ownership to the government agency at
the end of the fixed term agreed upon.
***Cargoes while being unloaded generally remain under the custody of
the carrier.
KINDS OF DELIVERY TO CARRIER:
1. Free on Board or Freight on Board – seller shall deliver and load the
goods at sellers point at his expense or free of charge to the buyer but the
duty to pay the freight charger from sellers point to the point of destination
is on the buyer.
2. Freight Along Side Ship – Contract is to deliver goods F.A.S., the goods
pass on delivery at the wharf, dock or alongside the vessel. Once the goods
are placed alongside the vessel, the goods are considered delivered; risk is
transferred to the buyer
3. Cost and Freight – seller or shipper pays the freight charges from the
point of origin to the point of destination, price quoted is inclusive of the
cost and freight.
4. Cost, Insurance and Freight – Price fixed covers not only the cost of
the goods, but the expense of freight and insurance to be paid by the seller.
5. Free In and Out Shipping/Stevedoring – shipper takes care of the
loading, while the unloading is the sole responsibility of the consignee.
6. Freight Collect – consignee/receiver of the goods would be the one to
pay the freight and other charges.
ARTICLE 1504 – WHO BEARS THE LOSS AFTER DELIVERY
 Unless otherwise agreed, the goods remain at the seller's
risk until the ownership therein is transferred to the buyer,
but when the ownership therein is transferred to the buyer the
goods are at the buyer's risk whether actual delivery has been
made or not, except that:
 (1) Where delivery of the goods has been made to the
buyer or to a bailee for the buyer, in pursuance of the
contract and the ownership in the goods has been
retained by the seller merely to secure performance
by the buyer of his obligations under the contract, the
goods are at the buyer's risk from the time of such
delivery;
 (2) Where actual delivery has been delayed through
the fault of either the buyer or seller the goods are at
the risk of the party in fault. (n)
ARTICLE 1505 – SALE OF GOODS BY NON – OWNER
 Subject to the provisions of this Title, where goods are sold
by a person who is not the owner thereof, and who does not
sell them under authority or with the consent of the owner,
the buyer acquires no better title to the goods than the seller
had, unless the owner of the goods is by his conduct
precluded from denying the seller's authority to sell.
Nothing in this Title, however, shall affect:
(1) The provisions of any factors' act, recording laws,
or any other provision of law enabling the apparent owner of
goods to dispose of them as if he were the true owner
thereof;
PNOTES
CIVIL LAW REVIEWER
(2) The validity of any contract of sale under
statutory power of sale or under the order of a court of
competent jurisdiction;
(3) Purchases made in a merchant's store, or in fairs,
or markets, in accordance with the Code of Commerce and
special laws. (n)
GENERAL RULE: NEMO DAT QUOD NON HABET – one cann
sell only what one owns.
EXCEPTIONS:
a. The buyer can acquire title to the goods if the true owner thereof is
stopped from denying the sellers authority to sell.
b. The provisions of any factors' act, recording laws, or any other
provision of law enabling the apparent owner of goods to dispose of them as
if he were the true owner thereof;
c. The validity of any contract of sale under statutory power of sale or
under the order of a court of competent jurisdiction;
d. ) Purchases made in a merchant's store, or in fairs, or markets, in
accordance with the Code of Commerce and special laws.
ARTICLE 1506 – SALE OF GOODS BY A PERSON HAVING A
VOIDABLE TITLE
 Where the seller of goods has a voidable title thereto, but his title has
not been avoided at the time of the sale, the buyer acquires a good
title to the goods, provided he buys them in good faith, for value,
and without notice of the seller's defect of title. (n)
***One who has lost any movable or who has been unduly deprived thereof
can recover the movable even from a possessor in good faith.
-Except when the movable is acquired in good faith at a public
sale; owner cannot obtain its return without reimbursing the price paid
therefor.
ILLUSTRATION:
Dina’s necklace was snatched by Mando while she was walking along Recto
Avenue, Manila. Mando pwned the necklace to Pawnshop. In due time, the pawnshop
foreclosed the pledge and sold the necklace at public auction to Maria, the highest
bidder. Dina saw her classmate, Maria, wearing ther necklace and demanded from the
latter to give the necklace back to her. Maria refused, saying that she had acquired the
necklace in good faith. WHO has the better right to the necklace?
Answer: Dina, the owner still has a better right to the necklace because the latter was
unduly deprived thereof.
Under Article 559 of the Civil Code, one who has been unlawfully deprived of a
movable may recover it from the person in possession of the same.
In the given case, Dina had been unlawfully deprived of the necklace. Thus, not
even an innocent purchaser in a pawnshop, like Maria, can claim a better right. However,
Dina should reimburse Maria the price she paid in acquiring the said necklace at the public
auction sale.
Supposing the necklace was not pawned and Maria bought it from a friend, would the
answer be the same?
Answer: Yes, with regard to the recovery of the necklace is concerned. Dina can recover it.
No, as regard reimbursement, because the necklace was not bought at a public sale
as provided under Art 559 of the Civil Code. Hence, Maria is not entitled to reimbursement.
DOCUMENTS OF TITLE
ARTICLE 1507
A document of title in which it is stated that the goods
referred to therein will be DELIVERED TO THE BEARER, OR
TO THE ORDER of any person named in such document is A
NEGOTIABLE DOCUMENT OF TITLE. (n)
ARTICLE 1508 - NEGOTIATION BY DELIVERY
A negotiable document of title may be negotiated by delivery:
PNOTES
CIVIL LAW REVIEWER
(1) Where by the terms of the document the carrier, warehouseman
or other bailee issuing the same undertakes to DELIVER THE
GOODS TO THE BEARER; or
(2) Where by the terms of the document the carrier, warehouseman
or other bailee issuing the same undertakes TO DELIVER THE
GOODS TO THE ORDER OF A SPECIFIED PERSON, AND
SUCH PERSON OR A SUBSEQUENT INDORSEE OF THE
DOCUMENT HAS INDORSED IT IN BLANK OR TO THE
BEARER.
Where by the terms of a negotiable document of title the goods are
deliverable to bearer or where a negotiable document of title has
been indorsed in blank or to bearer, any holder may indorse the
same to himself or to any specified person, and in such case the
document shall thereafter be negotiated only by the indorsement of
such indorsee. (n)
ARTICLE 1509 – NEGOTIATION BY ENDORSEMENT
A negotiable document of title may be negotiated by the
endorsement of the person to whose order the goods are by the terms
of the document deliverable. Such endorsement may be in blank, to
bearer or to a specified person. If indorsed to a specified person, it
may be again negotiated by the indorsement of such person in blank,
to bearer or to another specified person. Subsequent negotiations
may be made in like manner. (n)
***When document is deliverable to BLANK/BEARER, it can be
negotiated by MERE DELIVERY.
***When document is deliverable to ORDER/or SPECIFIED PERSON,
it must be negotiated by ENDORSEMENT AND DELIVERY.
ARTICLE 1510 – NEGOTIABLE DOCUMENTS OF TITLE
If a document of title which contains an undertaking by a
carrier, warehouseman or other bailee to deliver the goods to bearer,
to a specified person or order of a specified person or which contains
words of like import, has placed upon it the words "not
negotiable," "non-negotiable" or the like, such document may
nevertheless be negotiated by the holder and is a negotiable
document of title within the meaning of this Title. But nothing in
this Title contained shall be construed as limiting or defining the
effect upon the obligations of the carrier, warehouseman, or other
bailee issuing a document of title or placing thereon the words "not
negotiable," "non-negotiable," or the like. (n)
ARTICLE 1511 – NON-NEGOTIABLE DOCUMENTS OF TITLE
 A document of title which is not in such form that it can be
negotiated by delivery may be transferred by the holder by delivery
to a purchaser or donee. A non-negotiable document cannot be
negotiated and the indorsement of such a document gives the
transferee no additional right. (n)
ARTICLE 1512 – WHO MAY NEGOTIATE DOCUMENTS OF
TITLE
 A negotiable document of title may be negotiated:
(1) By the OWNER thereof; or
(2) By ANY PERSON TO WHOM THE POSSESSION OR
CUSTODY OF THE DOCUMENT HAS BEEN ENTRUSTED
BY THE OWNER, if, by the terms of the document the bailee
issuing the document undertakes to deliver the goods to the order of
the person to whom the possession or custody of the document has
been entrusted, or if at the time of such entrusting the document is
in such form that it may be negotiated by delivery. (n)
***negotiation shall take effect as of the time when endorsement
is actually made;
ARTICLE 1513 – EFFECTS OF A VALID NEGOTIATION
PNOTES
CIVIL LAW REVIEWER
A person to whom a negotiable document of title has been
duly negotiated ACQUIRES thereby:
(1) Such title to the goods as the person negotiating the document to
him had or had ability to convey to a purchaser in good faith for
value and also such title to the goods as the person to whose order
the goods were to be delivered by the terms of the document had or
had ability to convey to a purchaser in good faith for value; and
(2) The direct obligation of the bailee issuing the document to hold
possession of the goods for him according to the terms of the
document as fully as if such bailee had contracted directly with him.
(n)
ARTICLE 1514 – EFFECTS OF A MERE TRANSFER OF A
DOCUMENT OF TITLE
A person to whom a document of title HAS BEEN
TRANSFERRED, BUT NOT NEGOTIATED, acquires thereby, as
against the transferor, the title to the goods, subject to the terms of
any agreement with the transferor.
If the document is non-negotiable, such person also acquires the
right to notify the bailee who issued the document of the transfer
thereof, and thereby to acquire the direct obligation of such bailee to
hold possession of the goods for him according to the terms of the
document.
RULES ON LEVY/GARNISHMENT OF GOODS
COVERED BY A DOCUMENT OF TITLE
Prior to the notification to such bailee by the transferor or
transferee of a non-negotiable document of title, the title of the
transferee to the goods and the right to acquire the obligation of such
bailee may be defeated by the levy of an attachment of execution upon
the goods by a creditor of the transferor, or by a notification to such
bailee by the transferor or a subsequent purchaser from the transferor of
a subsequent sale of the goods by the transferor. (n)
ARTICLE 1515 – INDORSEMENT; NEEDED
Where a negotiable document of title is transferred for
value by delivery, and the indorsement of the transferor is essential
for negotiation, the transferee acquires a right against the
transferor to compel him to indorse the document unless a
contrary intention appears. The negotiation shall take effect as of
the time when the indorsement is actually made. (n)
ARTICLE 1516 – WARRANTIES OF A PERSON WHO
NEGOTIATES/TRANSFERS A DOCUMENT OF TITLE
  A person who for value negotiates or transfers a document of
title by indorsement or delivery, including one who assigns for value
a claim secured by a document of title unless a contrary intention
appears, warrants:
(1) That the DOCUMENT IS GENUINE;
(2) That HE HAS A LEGAL RIGHT TO NEGOTIATE OR
TRANSFER IT;
(3) That HE HAS KNOWLEDGE OF NO FACT WHICH
WOULD IMPAIR THE VALIDITY OR WORTH OF THE
DOCUMENT; and
(4) That he has a right to transfer the title to the goods and that the
GOODS ARE MERCHANTABLE OR FIT FOR A
PARTICULAR PURPOSE, whenever such warranties would have
been implied if the contract of the parties had been to transfer
without a document of title the goods represented thereby. (n)
PNOTES
CIVIL LAW REVIEWER
ARTICLE 1517. The indorsement of a document of title shall not make the
indorser liable for any failure on the part of the bailee who issued the
document or previous indorsers thereof to fulfill their respective obligations.
(n)
ARTICLE 1518 – UNAUTHORIZED NEGOTIATION
The validity of the negotiation of a negotiable document of
title is not impaired by the fact that the negotiation was a breach
of duty on the part of the person making the negotiation, or by the
fact that the owner of the document was deprived of the possession
of the same by loss, theft, fraud, accident, mistake, duress, or
conversion, if the person to whom the document was negotiated or a
person to whom the document was subsequently negotiated paid
value therefor in good faith without notice of the breach of duty,
or loss, theft, fraud, accident, mistake, duress or conversion. (n)
***As between the owner of a negotiable document of title who
endorsed it in blank and entrusted it to a friend, and the holder of such
negotiable document of title to whom it was negotiated and who received it
in good faith and for value, the latter is preferred, under the principle that
as between two innocent persons, he who made the loss possible should
bear the loss. xSiy Long Bieng v.Hongkong and Shanghai Banking Corp.,
56 Phil. 598 (1932).
CASE: PNB vs. Noah’s Ark Sugar Refinery, Alberto Looyuko, Jimmy Go, Wilson Go
FACTS:
Noah’s Ark Sugar Refinery issued several warehouse receipts covering several sugar
deposits by Rosa Sy (RNS Merchandising and ST. Therese Merchandising). These receipts
were substantial in form and contained terms prescribed for NEGOTIABLE WAREHOUSE
RECEIPTS.
Subsequently, the warehouse receipts were negotiated and indorsed to Luis Ramos
and to Cresencia Zoleta. Zoleta and Ramos later on used these receipts to obtained loan from
PNB in the amounts of 2.5M and 15.6M, respectively. They indorsed these to PNB.
Zoleta and Ramos failed to pay their loans upon maturity, PNB demanded from
Noah’s Ark the delivery of the sugar covered by the receipts.
Noah’s Ark and other respondents claimed, they are still the legal owners of the
subject of quedans because the corresponding payments in the form of checks issued by Rosa
Sy in favor of them were subsequently dishonored. Considering that Rosa and first indorsers
of the subject quedans did not acquire ownership thereof, the subsequent indorsers (PNB)
itself did not acquire a better right of ownership than the original vendees/indorsers.
ISSUES:
1. WON, non-payment of the purchase price for the quedans, by Rosa, rendered
invalid the negotiation of said quedans by the 1st indorsers (Ramos and Zoleta) and
the subsequent negotiation to PNB.
2. WON, PNB as indorsee/pledge of quedans was entitled to delivery of sugar stocks
from warehouseman, Noah’s Ark.
Answer:
1. The validity of the negotiation by Rosa to Ramos and Zoleta, and by the latter to PNB to
secure a loan cannot be impaired by the fact that the negotiation between Noah’s Ark
and Rosa was made in breach of faith on the part of Rosa or by the fact that Noah’s Ark
was deprived of possession of the same by fraud, mistake, or conversion of the person to
whom the receipt/quedan was subsequently negotiated if (PNB) paid value therefor in
good faith without notice of such breach of duty, fraud, mistake, or conversion
(ART.1518). If the quedans were negotiable in form and duly indorsed to PNB (the
creditor), the delivery of the quedans to PNB makes the PNB the owner of the property
covered by said quedans and on deposit with Noah’s Ark, the warehouseman.
2. Since the quedans were negotiable documents and had been duly negotiated to PNB, the
latter thereby acquired the right set out in Article 1513.
PNOTES
CIVIL LAW REVIEWER
ARTICLE 1519 - RULES ON LEVY/GARNISHMENT OF
GOODS COVERED BY A DOCUMENT OF TITLE
If goods are delivered to a bailee by the owner or by a person whose
act in conveying the title to them to a purchaser in good faith for value
would bind the owner and a negotiable document of title is issued for
them they cannot thereafter, while in possession of such bailee, be
attached by garnishment or otherwise or be levied under an execution
unless the document be first surrendered to the bailee or its negotiation
enjoined. The bailee shall in no case be compelled to deliver up the
actual possession of the goods until the document is surrendered to him
or impounded by the court. (n)
ARTICLE 1520 - RULES ON LEVY/GARNISHMENT OF GOODS
COVERED BY A DOCUMENT OF TITLE
 A creditor whose debtor is the owner of a negotiable
document of title shall be entitled to such aid from courts of
appropriate jurisdiction by injunction and otherwise in attaching
such document or in satisfying the claim by means thereof as is
allowed at law or in equity in regard to property which cannot
readily be attached or levied upon by ordinary legal process. (n)
DEFINITION: ARTICLE 1636
Document of title to goods" includes any bill of lading, dock
warrant, "quedan," or warehouse receipt or order for the
delivery of goods, or any other document used in the ordinary
course of business in the sale or transfer of goods, as proof of the
possession or control of the goods, or authorizing or purporting to
authorize the possessor of the document to transfer or receive,
either by indorsement or by delivery, goods represented by such
document.
PURPOSES:
 Through a document of title, seller is allowed by fiction of law to
deal with the goods described therein as though he had physically
delivered them to the buyer; and buyer may take the document as
though he had actually taken possession and control over the goods
described therein. xPhilippine Trust Co. v. National Bank, 42 Phil.
413
 Warehouse receipt represents the goods, but the intrusting of the
receipt is more than the mere delivery of the goods; it is a
representation that the one to whom the possession of the receipt has
been so entrusted has the title to the goods. xSiy Cong Bieng v.
Hongkong & Shanghai Bank, 56 Phil. 598
KINDS OF DOCUMENTS OF TITLE
1. BILL OF LADING – a written acknowledgement of the receipt of
goods and an agreement to transport and to deliver them at a
specified place to a person named or on his or her order.
o Operates both as a receipt and a contract
 Receipt – it recites the date and place of shipment,
describes the goods as to quantity, weight,
dimensions, identification marks, condition, quality
and value.
 Contract – it names the contracting parties, which
include the consignee; fixes the route, destination,
and freight rate or charges; and stipulates the rights
and obligations assumed by the parties.
2. DOCK WARRANTS OR RECEIPTS – a document or receipt
issued by a wharf, dock or port authority that certifies title of any
person named therein to the shipment that is stored in its warehouse
or storage facility.
3. WAREHOUSE RECEIPT – a document that evidences ownership
of the goods that are stored in a warehouse for safekeeping, and is
ILLUSTRATION: issued by a warehouseman who is a person lawfully engaged in the
Juana obtained from XYZ Bank a loan of 300K payable in 120 days with interests at 6% per annum
from the date business
of maturity. Toof storing
guarantee goodsoffor
the payment profit.Juana pledged to XYZ Bank 2k sacks of rice
the obligation,
4. QUEDAN – a type of warehouse receipt issued for sugar;
which were then deposited in the warehouse of ABC Co. And to that effect Juana endorsed in BLANK the
corresponding warehouse receipt to XYZ Bank. Before maturity of the loan, the 2k sacks of rice disappeared for
unknown reasons ino It was also used to refer to several
the warehouse. When the loan matured, the borrower grains
failed to pay; warehouse
hence, the bank instituted
an action against Juana.
In her defense,receipts which
Juana claimed cover
that she was cavans
relieved ofafter
from liability palay.
the warehouse receipt-covering
the sacks of rice which later disappeared- which was given as security had been endorsed in blank in favor of the
bank.
QUESTION: Is the claim of JUANA TENABLE?
Answer: No, the claim of Juana is NOT TENABLE.
Where a warehouse receipt or quedan is transferred or endorsed to a creditor only to secure the payment of a
loan or debt, the transferee or endorsee does not automatically become the owner of the goods covered by the warehouse
PNOTES
receipt but he merely retains the right to keep and with the consent of the owner to sell them so as to satisfy the obligation
from the proceeds of the sale, this is for the simple reason that the transaction involved is not a sale but only a
MORTGAGE or PLEDGE, and that if the property covered by the warehouse receipt is lost without fault or negligence of
the mortgagee or pledge or the transferee or endorsee, then said goods are to be regarded as lost on account of the real
owner, mortgagor or pledgor.
CIVIL LAW REVIEWER
ARTICLE 1521 – PLACE AND TIME OF DELIVERY
 Whether it is for the buyer to take possession of the goods or
of the seller to send them to the buyer is a question depending in
each case on the contract, express or implied, between the parties.
Apart from any such contract, express or implied, or usage of trade
to the contrary, the place of delivery is the seller's place of business
if he has one, and if not his residence; but in case of a contract of
sale of specific goods, which to the knowledge of the parties when
the contract or the sale was made were in some other place, then that
place is the place of delivery.
Where by a contract of sale the seller is bound to send the goods
to the buyer, but no time for sending them is fixed, the seller is
bound to send them within a reasonable time.
Where the goods at the time of sale are in the possession of a
third person, the seller has not fulfilled his obligation to deliver
to the buyer unless and until such third person acknowledges to the
buyer that he holds the goods on the buyer's behalf.
Demand or tender of delivery may be treated as ineffectual
unless made at a reasonable hour. What is a reasonable hour is a
question of fact.
Unless otherwise agreed, the expenses of and incidental to
putting the goods into a deliverable state must be borne by the seller.
(n)
PLACE OF DELIVERY; ORDER OF PRIORITY
i. Place Stipulated By The Parties; express or implied in the contract;
ii. Place Dictated By Usage Of Trade; provided by a positive law/
established by custom/ tradition through continued observance;
iii. Place Of Business Of The Seller;
iv. The Place Where The Seller Resides;
v. The Place Where Specific Goods Are;
TIME OF DELIVERY
a) Agreed TIME; may be express or implied;
b) Reasonable TIME; when NO time for sending is fixed.
 What constitutes reasonable time is dependent on the
circumstances availing both on the part of the seller and
the buyer.
c) FIXED Time; parties contemplated that obligation to deliver is
with a period but it has not been fixed – PARTIES should fixed it,
then COURT should fix it for them in case they fail to fix it.
WHO BEARS THE EXPENSES OF PUTTING GOODS INTO A
DELIVERABLE STATE?
GENERAL RULE: The seller bears the expenses of and incidental to
putting the goods into a deliverable state.
EXCEPTION: Unless otherwise agreed.
ARTICLE 1522 – INCOMPLETE DELIVERY
Where the seller delivers to the buyer a quantity of goods less
than he contracted to sell, the buyer may reject them, but if the buyer
accepts or retains the goods so delivered, knowing that the seller is
not going to perform the contract in full, he must pay for them at the
contract rate. If, however, the buyer has used or disposed of the
PNOTES
CIVIL LAW REVIEWER
goods delivered before he knows that the seller is not going to
perform his contract in full, the buyer shall not be liable for more
than the fair value to him of the goods so received.
Where the seller delivers to the buyer a quantity of goods larger
than he contracted to sell, the buyer may accept the goods included
in the contract and reject the rest. If the buyer accepts the whole of
the goods so delivered he must pay for them at the contract rate.
Where the seller delivers to the buyer the goods he contracted to
sell mixed with goods of a different description not included in the
contract, the buyer may accept the goods which are in accordance
with the contract and reject the rest.
In the preceding two paragraphs, if the subject matter is
indivisible, the buyer may reject the whole of the goods.
The provisions of this article are subject to any usage of trade,
special agreement, or course of dealing between the parties. (n)
 DELIVERY OF WRONG QUANTITY
1. QUANTITY OF GOODS IS LESS THAN EXPECTED; buyer
may choose to:
 Reject the goods; OR
 Accept or Retain the goods so delivered and pay for them
either:
 AT THEIR CONTRACT RATE: if he has knowledge that
the seller is not going to perform the contract

AT THEIR FAIR VALUE: if he has used/disposed of
them BEFORE he knew that the seller is NOT
GOING TO PERFORM HIS CONTRACT IN
FULL.
-right of the buyer to reject the goods under this situation is
ABSOLUTE, regardless of the extent of the shortfall.
ILLUSTRATION:
Labandera Co. Bought from ABC Appliance Store 6 washing machines at P10K per
unit. ABC delivered 3 washing machines only, which Labandera Co. Accepted and has used
afterwards in its laundry business. ABC informed LAbandera Co. That it could no longer
deliver the remaining washing machines because there were no available units, and demanded
for the payment of P30k for the 3 delivered washing machines. Labandera Co. Refused to
pay, and insisted to rescind the contract since the seller could not perform its obligation under
their contract of sale.
QUESTION: Is Labandera Co. correct?
Answer: Labandera Co. is not correct because it already used the three washing machines that
were delivered.
Under Article 1522 of the Civil Code, in the event the buyer accepts the incomplete
delivery and uses the goods so delivered, not then knowing that there would not be any further
delivery by the seller, the buyer shall be liable only for the fair value to him of the goods received.
When only 3 washing machines were delivered, Labandera Co. should have rejected them
since that option was available to it. Instead of rejecting them and asking ABC Appliance Store if it
could2.still
QUALITY OF GOODS
deliver the remaining ISmachines,
3 washing LARGER it usedTHAN EXPECTED;
them already in its laundry business.
The mostbuyer may choose to:
that it can do is to insist the payment of the 3 washing machines at their fair vale since it
knew only of the fact that ABC Appliance Store was not going to perform its contract in full after it
 Accept the goods included in the contract and REJECT the
had used the first 3 washing machines.
rest; OR
 Accept the whole of the goods included so delivered and to
pay for them at the CONTRACT RATE.
 If the subject matter is INDIVISIBLE; buyer may REJECT the
WHOLE GOODS.
3. GOODS DELIVERED are MIXED with GOODS OF
DIFFERENT DESCRIPTION; buyer may choose to:
 Accept the goods which are in accordance with the contract
and reject the rest; OR
 Accept or reject the whole goods, if the subject matter is
INDIVISIBLE.
-subject matter is INDIVISIBLE if the goods cannot be
divided without materially impairing their value or character
like a multi-volume set of books.
-Indivisibility; may depend on the INTENTION OF THE
PARTIES.
PNOTES
CIVIL LAW REVIEWER
ARTICLE 1523 – DELIVERY OF THE GOODS TO A
CARRIER/COURIER
Where, in pursuance of a contract of sale, the seller is
authorized or required to send the goods to the buyer, delivery of
the goods to a carrier, whether named by the buyer or not, for
the purpose of transmission to the buyer is deemed to be a
delivery of the goods to the buyer, except in the cases provided
for in article 1503, first, second and third paragraphs, or unless a
contrary intent appears.
Unless otherwise authorized by the buyer, the seller must
make such contract with the carrier on behalf of the buyer as
may be reasonable, having regard to the nature of the goods
and the other circumstances of the case. If the seller omits so to
do, and the goods are lost or damaged in course of transit, the
buyer may decline to treat the delivery to the carrier as a delivery
to himself, or may hold the seller responsible in damages.
Unless otherwise agreed, where goods are sent by the seller
to the buyer under circumstances in which the seller knows or
ought to know that it is usual to insure, the seller must give
such notice to the buyer as may enable him to insure them
during their transit, and, if the seller fails to do so, the goods
shall be deemed to be at his risk during such transit. (n)
-should be read and understood in relation with Art. 1503.
 OBLIGATION to ENTER INTO A CONTRACT WITH THE
CARRIER ON BEHALF OF THE BUYER FOR THE
DELIVERY OF THE GOODS
General Rule: The seller must make such contract with the carrier on
behalf of the buyer as may be reasonable, having regard to the
nature of the goods and the other circumstances of the case.
EXCEPTION: Unless otherwise authorized by the buyer
*** If the seller omits to do so, and the goods are lost or damaged in
course of transit, the buyer may decline to treat the delivery to the
carrier as a delivery to himself, or may hold the seller responsible in
damages.
 OBLIGATION TO NOTIFY THE BUYER THE IMPORTANCE
OF INSURING THE GOODS IF IT IS USUAL TO INSURE
THEM UNDER THE CIRCUMSTANCES
General Rule: The seller must give notice to the buyer that it is usual to
insure the goods under the circumstances.
***Purpose is to enable the buyer to insure the gods during their transit
***If the seller fails to do so, the goods shall be deemed to be at his risk
during such transit.
EXCEPTION: Unless otherwise agreed
ARTICLE 1524 – SELLER IS NOT BOUND TO DELIVER
The vendor shall not be bound to deliver the thing sold, if the
vendee has not paid him the price, or if no period for the
payment has been fixed in the contract. (1466)
The Vendor is not bound to deliver under the ff instances:
1. If the vendee has not paid him the price;
2. If no period for the payment has been fixed in the contract; OR
3. In case the vendee should lose the right to make use of the terms
provided in Art. 1198 (Debtor lose the right to make use of the
period);
UNPAID SELLER (ARTICLES 1525 – 1535)
ARTICLE 1525 – WHO IS AN UNPAID SELLER?
 The SELLER OF GOODS IS DEEMED TO BE AN UNPAID
SELLER within the meaning of this Title:
PNOTES
CIVIL LAW REVIEWER
(1) When the whole of the price has not been paid or tendered;
(2) When a bill of exchange or other negotiable instrument has
been received as conditional payment, and the condition on which
it was received has been broken by reason of the dishonor of the
instrument, the insolvency of the buyer, or otherwise.
In articles 1525 to 1535 the term "seller" includes an agent of
the seller to whom the bill of lading has been indorsed, or a
consignor or agent who has himself paid, or is directly
responsible for the price, or any other person who is in the
position of a seller. (n)
ARTICLE 1526 – REMEDIES OF AN UNPAID SELLER
 Subject to the provisions of this Title, notwithstanding that the
ownership in the goods may have passed to the buyer, the
UNPAID SELLER OF GOODS, as such, HAS:
(1) A lien on the goods or right to retain them for the price while
he is in possession of them;
(2) In case of the insolvency of the buyer, a right of stopping the
goods in transitu after he has parted with the possession of
them;
(3) A right of resale as limited by this Title;
(4) A right to rescind the sale as likewise limited by this Title.
Where the ownership in the goods has not passed to the buyer,
the unpaid seller has, in addition to his other remedies (5) a right
of withholding delivery similar to and coextensive with his rights
of lien and stoppage in transitu where the ownership has passed
to the buyer. (n)
OTHER REMEDIES:
6. Remedies under the RECTO LAW;
7. Resolution or Rescission;
8. Action for the Price (through an Action for Specific Performance, or
collection of sum of money);
9. Action for Damages
ARTICLE 1527 – WHEN POSSESSORY LIEN MAY BE
EXERCISED:
Subject to the provisions of this Title, the unpaid seller of goods
who is in possession of them is entitled to retain possession of
them until payment or tender of the price in the following cases,
namely:
(1) Where the goods have been sold without any stipulation as to
credit;
(2) Where the goods have been sold on credit, but the term of
credit has expired;
(3) Where the buyer becomes insolvent.
The seller may exercise his right of lien notwithstanding that he
is in possession of the goods as agent or bailee for the buyer. (n)
ARTICLE 1528 – PARTIAL LIEN on THE GOODS;
Where an unpaid seller has made part delivery of the
goods, he may exercise his right of lien on the remainder,
UNLESS such part delivery has been made under such
circumstances as to show an intent to waive the lien or right of
retention. (n)
ARTICLE 1529 – WHEN UNPAID SELLER LOSES HIS
POSSESSORY LIEN
PNOTES
CIVIL LAW REVIEWER
The UNPAID SELLER OF GOODS LOSES HIS LIEN
thereon:
(1) When he delivers the goods to a carrier or other bailee for the
purpose of transmission to the buyer without reserving the
ownership in the goods or the right to the possession thereof;
(2) When the buyer or his agent lawfully obtains possession of the
goods;
(3) By waiver thereof.
The unpaid seller of goods, having a lien thereon, does not lose
his lien by reason only that he has obtained judgment or
decree for the price of the goods. (n)
ARTICLE 1530 –RIGHT OF STOPPAGE IN TRANSITU
  Subject to the provisions of this Title, when the buyer of
goods is or becomes insolvent, the unpaid seller who has parted
with the possession of the goods HAS THE RIGHT OF
STOPPING THEM IN TRANSITU, that is to say, he may
resume possession of the goods at any time while they are in
transit, and he will then become entitled to the same rights in
regard to the goods as he would have had if he had never parted
with the possession. (n)
REQUISITES OF RIGHT OF STOPPAGE IN TRANSITU:
1. The seller is UNPAID;
2. The buyer of goods is or becomes INSOLVENT;
3. The unpaid seller has parted with the possession of the goods;
4. The GOODS ARE IN TRANSIT;
5. The unpaid seller either obtains actual possession of the goods, or
gives notice of his claim to the carrier or other bailee in whose
possession the goods are.
ARTICLE 1531 –WHEN THE GOODS ARE IN TRANSIT; GOODS
NO LONGER IN TRANSIT;
GOODS ARE IN TRANSIT within the meaning of the
preceding article:
(1) From the time when they are delivered to a carrier by land,
water, or air, or other bailee for the purpose of transmission to
the buyer, until the buyer, or his agent in that behalf, takes
delivery of them from such carrier or other bailee;
(2) If the goods are rejected by the buyer, and the carrier or
other bailee continues in possession of them, even if the seller
has refused to receive them back.
GOODS ARE NO LONGER IN TRANSIT within the meaning
of the preceding article:
(1) If the buyer, or his agent in that behalf, OBTAINS
DELIVERY of the goods BEFORE THEIR ARRIVAL AT THE
APPOINTED DESTINATION;
(2) If, after the arrival of the goods at the appointed destination,
the carrier or other bailee acknowledges to the buyer or his
agent that he holds the goods on his behalf and continues in
possession of them as bailee for the buyer or his agent; and it is
immaterial that further destination for the goods may have been
indicated by the buyer;
(3) If the carrier or other bailee wrongfully refuses to deliver the
goods to the buyer or his agent in that behalf.
If the GOODS ARE DELIVERED TO A SHIP,
FREIGHT TRAIN, TRUCK, OR AIRPLANE CHARTERED
BY THE BUYER, it is a question depending on the
circumstances of the particular case, whether they are in the
possession of the carrier as such or as agent of the buyer.
PNOTES
CIVIL LAW REVIEWER
If PART DELIVERY OF THE GOODS HAS BEEN
MADE TO THE BUYER, or HIS AGENT IN THAT BEHALF,
the remainder of the goods may be stopped in transitu,
UNLESS such part delivery has been under such
circumstances as to show an agreement with the buyer to give
up possession of the whole of the goods. (n)
ARTICLE 1532 – HOW MAY THE RIGHT OF STOPPAGE IN
TRANSITU BE EXERCISED?
  The unpaid seller may exercise his right of stoppage in
transitu either BY OBTAINING ACTUAL POSSESSION OF
THE GOODS or
BY GIVING NOTICE OF HIS CLAIM TO THE CARRIER
OR OTHER BAILEE IN WHOSE POSSESSION THE
GOODS ARE.
Such notice may be given either to the person in actual
possession of the goods or to his principal. In the latter case the
notice, to be effectual, must be given at such time and under
such circumstances that the principal, by the exercise of
reasonable diligence, may prevent a delivery to the buyer.
When notice of stoppage in transitu is given by the seller to
the carrier, or other bailee in possession of the goods, he must
redeliver the goods to, or according to the directions of, the seller.
THE EXPENSES OF SUCH DELIVERY MUST BE BORNE
BY THE SELLER.
If, however, a negotiable document of title representing the
goods has been issued by the carrier or other bailee, he shall not
be obliged to deliver or justified in delivering the goods to the
seller unless such document is first surrendered for cancellation.
(n)
EFFECTS OF SUBSEQUENT SALE OF GOODS TO UNPAID
SELLER’S POSSESORY LIEN/ RIGHT OF STOPPAGE IN TRANSITU:
GENERAL RULE: The unpaid seller’s right of lien or stoppage in transit
IS NOT AFFECTED BY ANY SALE, or other disposition of the goods
which the buyer may have made.
EXCEPTIONS:
1. The seller has assented thereto;
2. The negotiable document of title issued for the goods in the hand of
a purchaser for value in GOOD FAITH either before or after
notification to the carrier/bailee who issued the document of seller’s
claim to a lien or right of stoppage in transit, the RIGHT OF THE
PURCHASER would then be SUPERIOR to that of the unpaid
seller.
ARTICLE 1533 – SPECIAL RIGHTS OF RESALE
Where the goods are of perishable nature, or where the seller
expressly reserves the right of resale in case the buyer should
make default, or where the buyer has been in default in the
payment of the price for an unreasonable time, an unpaid seller
having a right of lien or having stopped the goods in transitu may
resell the goods. He shall not thereafter be liable to the original
buyer upon the contract of sale or for any profit made by such
resale, but may recover from the buyer damages for any loss
occasioned by the breach of the contract of sale.
Where a resale is made, as authorized in this article, the
buyer acquires a good title as against the original buyer.
PNOTES
CIVIL LAW REVIEWER
It is not essential to the validity of resale that notice of an
intention to resell the goods be given by the seller to the original
buyer. But where the right to resell is not based on the perishable
nature of the goods or upon an express provision of the contract of
sale, the giving or failure to give such notice shall be relevant in
any issue involving the question whether the buyer had been in
default for an unreasonable time before the resale was made.
It is not essential to the validity of a resale that notice of the
time and place of such resale should be given by the seller to the
original buyer.
The seller is bound to exercise reasonable care and judgment
in making a resale, and subject to this requirement may make a
resale either by public or private sale. He cannot, however, directly
or indirectly buy the goods. (n)
 An unpaid seller who have a right of lien or have stopped the good
in transit MAY RESELL THE GOODS, under any of the
following instances:
1. Goods are PERISHABLE IN NATURE;
ARTICLE 1534 – SPECIAL RIGHT TO RESCIND
2. The seller EXPRESSLY RESERVES THE RIGHT OF
RESALE in case the buyer should make default;
3. The buyer has been in DEFAULT in the payment of the
price for an UNREASONABLE TIME.
 EFFECTS OF RESALE:
1. The unpaid seller SHALL NOT THEREAFTER BE
LIABLE TO THE ORIGINAL BUYER upon the contract
of sale or for any profit made by such resale (if goods were
resold for more than the original price);
2. The unpaid seller may recover from the buyer damages
for any loss occasioned by the breach of the contract of
sale (including the situation wherein the goods were sold for
less than the original price);
3. The new buyer acquires a good title as against the
ORIGINAL BUYER.
 ESSENTIALS TO VALIDITY OF RESALE:
1. Seller is bound to exercise reasonable care and judgement in
making a resale;
2. The resale may either by public or private sale;
3. The unpaid seller cannot directly/indirectly buy the goods;
 NOT ESSENTIAL TO VALIDITY OF RESALE:
1. that notice of the time and place of such resale should be
given by the seller to the original buyer.
  An unpaid seller having the right of lien or having
stopped the goods in transitu, MAY RESCIND THE TRANSFER
OF TITLE AND RESUME THE OWNERSHIP IN THE GOODS,
where
i. He expressly reserved the right to do so in case the buyer
should make default, or
ii. Where the buyer has been in default in the payment of
the price for an unreasonable time.
PNOTES
CIVIL LAW REVIEWER
The seller shall not thereafter be liable to the buyer upon the
contract of sale, but may recover from the buyer damages for any
loss occasioned by the breach of the contract.
The transfer of title shall not be held to have been rescinded
by an unpaid seller until he has manifested by notice to the buyer
or by some other overt act an intention to rescind. It is not
necessary that such overt act should be communicated to the
buyer, but the giving or failure to give notice to the buyer of the
intention to rescind shall be relevant in any issue involving the
question whether the buyer had been in default for an
unreasonable time before the right of rescission was asserted. (n)
EFFECTS OF RESCISSION:
 The unpaid seller shall not be liable to the original buyer upon the
contract of sale;
 The unpaid seller may recover from the buyer damages for any loss
occasioned by the breach of the contract of sale.
ESSENTIALS FOR THE VALIDITY OF RESCISSION OF THE
TRANSFER OF TITLE;
 The transfer of title shall not be held to have been rescinded by
an unpaid seller UNTIL he has manifested by notice to the buyer
or by some other overt act an intention to rescind.
ARTICLE 1535
Subject to the provisions of this Title, the unpaid seller's
right of lien or stoppage in transitu is not affected by any sale, or
other disposition of the goods which the buyer may have made,
unless the seller has assented thereto.
If, however, a negotiable document of title has been issued
for goods, no seller's lien or right of stoppage in transitu shall
defeat the right of any purchaser for value in good faith to whom
such document has been negotiated, whether such negotiation be
prior or subsequent to the notification to the carrier, or other
bailee who issued such document, of the seller's claim to a lien or
right of stoppage in transitu. (n)
ARTICLE 1536 – ADDTL GROUND WHEN THE VENDOR IS NOT
BOUND TO DELIVER THE THING SOLD AS PROVIDED BY
ARTICLE 1524;
The vendor is not bound to deliver the thing sold in case the
vendee should lose the right to make use of the terms as provided
in article 1198. (1467a)
The seller can also withhold the delivery of the thing sold if the buyer
should lose the right to make use of the terms as provided in Article 1198:
Article 1198. The debtor shall lose every right to make use of the
period:
(1) When after the obligation has been contracted, he becomes
insolvent, unless he gives a guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or
securities which he has promised;
(3) When by his own acts he has impaired said guaranties or
securities after their establishment, and when through a fortuitous
event they disappear, unless he immediately gives new ones equally
satisfactory;
(4) When the debtor violates any undertaking, in consideration of
which the creditor agreed to the period;
(5) When the debtor attempts to abscond.
ARTICLE 1537 – OBLIGATION TO DELIVER THE FRUITS AND
ACCESSORIES OF THE THING SOLD
 The vendor is bound to deliver the thing sold and its
accessions and accessories in the condition in which they were
upon the perfection of the contract.
All the fruits shall pertain to the vendee FROM THE DAY
ON WHICH THE CONTRACT WAS PERFECTED. (1468a)
PNOTES
CIVIL LAW REVIEWER
EXCEPTION: unless there is stipulation to the contrary.
***Acquisition of Real Right over the fruits only WHEN THEY HAVE
BEEN DELIVERED. ILLUSTRATION:
***If subject to condition: Fruits of the thing will accrue depending on the El Cid bought the red Ferrari of Carlo which the latter should deliver to the former
on January 15, 2014. On January 16, 2014, the Ferrari was struck by lightning while it was
happening of the event. being driven to be delivered to El Cid. El Cid sued Carlo for damages because the latter failed
to deliver the Ferrari. Carlo replied in his answer that his obligation had been extinguished by
ILLUSTRATION: fortuitous event. IS CARLO LIABLE FOR DAMAGES?
Lander sold his farmaland to Don. One of the stipulations in the Deed of Sale is that
delivery would be effected eight months from the execution thereof. The said period arrived. Answer: The answer to this question depends whether or not Carlo, the seller, was already in default
Don demaned the delivery of the farmland. Lander took a month from the time of the demand at the time of the accident.
that he finally gave the control and possession of the land to Don. It turned out that a month Article 1262 of the Civil Code provides that “an obligation which consists in the delivery of
before the eight month, Lander harvested all the crops planted on the farmland and sold them a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the
to Mr. Kumita for P100K. Mr. Kumita had no knowledge of the contract between Lander and debtor, and before he has incurred in delay.
Don. If Carlo was in default, he could not invoke the extinguishment of his obligation by
fortuitous event. This is because his default made him responsible for fortuitous events.
QUESTION: Can Don recover from Mr. Kumita the value of the crop sold? On the other hand, if Carlo was not in default, as no demand had been sent to him prior to
the accident, his obligation to deliver was extinguished. Thus, he could not be held answerable for
Answer: No, Don cannot recover the value of the crops from Mr. Kumita because he does not have damages as the loss of the car was not imputable to his fault.
any right, whether personal or real, to proceed against the latter.
Under the Law On Sales, the vendor is bound to deliver the thing sold, its accessories, LOSS
accessions, and fruits UPON THE PERFECTION OF THE CONTRACT because that is when the
obligation to deliver arises, UNLESS there is stipulation to the contrary.
***If LOSS/DESTRUCTION happen after perfection but BEFORE
In the given case, Lander’s obligation to deliver the farmland including its crops arose after DELIEVERY;
right months from the execution of the deed of sale and upon demand. Since there was still no -shall be in accordance with the stipulation of parties.
delivery of the farmland and the fruits, it is obvious that the only right which Don had acquired was a
personal right enforceable against Lander, not a real right enforceable against the whole world.
- absence of stipulation, PARTY AT FAULT.
Hence, Don did not acquire a real right over the crops until they are DELIVERED TO HIM. ***IF LOSS/DESTRUCTION due to FORTUITOUS EVENT;
THEREFORE, Don can proceed against Lander for damages because of DELAY IN THE -General RULE: BUYER bears the RISK
DELIVERY of the farmland; but he CANNOT PROCEED AGAINST Mr. Kumita who was not even
-EXCEPTIONS:
ARTICLE 1538 – LOSS, DETERIORATION/IMPROVEMENT OF 1. In case of fungible thing be sold for a price fixed according to
THE THING AFTER PERFECTION BUT BEFORE DELIVERY  weight, number, or measure;
In case of loss, deterioration or improvement of the thing 2. in case of GENERIC GOODS, where SELLER bears the risk of
before its delivery, the rules in article 1189 shall be observed, the loss (GENUS NUNQUAM PERIT)
vendor being considered the debtor. (n) DETERIORATION
***The determination of who between the seller and the buyer shall bear ***When the thing DETERIORATES WITHOUT THE FAULT of
the risk of loss of the thing sold AFTER THE PERFECTION OF THE buyer/seller;
CONTRACT but BEFORE DELIVERY shall be in accordance with their -impairment is to be BORNE BY THE BUYER;
stipulation. ***When the thing DETERIORATES THROUGH THE FAULT OF
***Absence of stipulation, determination shall be in accordance with 1480 SELLER;
and 1189.

PNOTES
CIVIL LAW REVIEWER
-BUYER may choose between; RESCISSION or The same shall be done, even when the area is the same,
FULFILLMENT of the obligation, both with indemnity for if any part of the immovable is not of the quality specified in the
damages in either case. contract.
IMPROVEMENT
***Thing is IMPROVED by its nature, by time; The RESCISSION, in this case, SHALL ONLY TAKE
-improvement shall inure to the BENEFIT OF THE BUYER; PLACE AT THE WILL OF THE VENDEE, when the inferior
***the THING IMPROVED at the expense of the SELLER; value of the thing sold exceeds one-tenth of the price agreed
-Seller has no other right than that granted to the upon.
USUFRUCTUARY.
SALE OF IMMOVABLES AT A RATE PER UNIT (1539-1541) Nevertheless, if the vendee would not have bought the
immovable had he known of its smaller area of inferior quality, he
ARTICLE 1539 - SALE OF IMMOVABLE LESS THAN THE AREA may rescind the sale. (1469a)
AGREED UPON
Distinction between 1539 and 1542: (Rudolf Lietz, Inc. Vs CA );
ARTICLE 1540 – VENDOR DELIVERS MORE THAN THE AREA
Article 1539 governs a sale of immovable by the unit, that is, at a stated rate per unit area. In
The obligation to deliver the thing sold includes that of AGREED
a unit price contract, the statement of area of immovable is not conclusive and the price may be
placing in the control of the vendee all that is mentioned in the reduced or increased depending on the area actually delivered. If the vendor delivers less than the
contract, in conformity with the following rules:  If, inmay
area agreed upon, the vendee the oblige
case ofthethe preceding
vendor to deliverarticle,
all that THERE IS in
may be stated A the contract or
demand for theGREATER
proportionate reduction
AREA OR of the purchase price
NUMBER INifTHE
delivery is not possible. If the vendor
IMMOVABLE
delivers more than the area stated in the contract, the vendee has the option to accept only the amount
If the SALE OF REAL ESTATE SHOULD BE MADE THAN THAT STATED IN THE CONTRACT, the vendee may
agreed upon or to accept the whole area, provided he pays for the additional area at the contract rate.
WITH A STATEMENT OF ITS AREA, at the rate of a certain In some instances, a sale of an immovable may be made for a lump sum and not at a rate per
price for a unit of measure or number, the vendor shall be obliged unit. The parties agree on i. Accept
a stated purchase the area
price for included
an immovable in the contract
the area of whichand
may reject
be declared
to deliver to the vendee, based on an estimate or where both thethe
rest.
area and boundaries are stated.
In the case where the area of the immovable is stated in the contract based on an estimate, the
actual area delivered may not measure up exactly with the area stated in the contract. According to
i. if the latter should demand it, all that may have ii. If he accepts the whole area, he must pay for the
Article 1542 of the Civil Code, in the sale of real estate, made for a lump sum and not at the rate of a
been stated in the contract; but, should this be not certain sum for a unit of measure same at or the contract
number, THERErate.SHALL
(1470a)BE NO INCREASE OR
possible; DECREASE OF THE PRICE ALTHOUGH THERE BE A GREATER OR LESSER AREA OR
NUMBERARTICLETHAN 1541
THAT–STATED
APPLICATION TO JUDICIAL
IN THE CONTRACT. However,SALES
the discrepancy must not be
ii. the vendee may choose between A substantial. A vendee of land, when sold in gross or with the description more or less with reference to
its area, does not thereby ipso facto take all risk of quantity in the land. The use of more or less or
PROPORTIONAL REDUCTION OF THE  The provisions of the two preceding articles shall apply to judicial
similar words in designating quantity COVERS ONLY A REASONABLE EXCESS OR
PRICE and; DEFICIENCY. sales. (n)
Where both the area and the boundaries of the immovable are declared, the area
iii. the RESCISSION OF THE CONTRACT, provided ARTICLE
covered within the1542 – SALE
boundaries OFimmovable
of the AN IMMOVABLE PREVAILS over MADE FOR A
the stated LUMP
area. In cases of
that, in the latter case, the lack in the area be not less conflict
SUM between areas and boundaries,
(A CUERPO CIERTO) it is the latter which should prevail.
What really defines a piece of ground is not the area, calculated with more or less
than one-tenth of that stated;
certainty, mentioned in its description, but the boundaries therein laid down, as enclosing the land
and indicating its limits. In a contract of sale of land in a mass, it is well established that the specific
boundaries stated in the contract must control over any statement with respect to the area contained
within its boundaries. It is not of vital consequence that a deed or contract of sale of land should
PNOTES
disclose the area with mathematical accuracy. It is sufficient if its extent is objectively indicated with
sufficient precision to enable one to identify it. An error as to the superficial area is immaterial.  Thus,
the obligation of the vendor is to deliver everything within the boundaries, inasmuch as it is the
 CIVIL LAW REVIEWER
 In the sale of real estate, MADE FOR A LUMP SUM and
not at the rate of a certain sum for a unit of measure or number,
there shall be no increase or decrease of the price, although there
be a greater or less area or number than that stated in the
contract.
ARTICLE 1543 – PRESCRIPTIVE PERIOD
The same rule shall be applied when two or more The actions arising from articles 1539 and 1542 shall
immovables as sold for a single price; but if, besides mentioning the PRESCRIBE IN SIX MONTHS, counted from the day of delivery.
boundaries, which is indispensable in every conveyance of real (1472a)
estate, its area or number should be designated in the contract, the
vendor shall be bound to deliver all that is included within said ARTICLE 1544 – DOUBLE SALES
boundaries, even when it exceeds the area or number specified in the
contract; and, should he not be able to do so, he shall suffer a  If the same thing should have been sold to different
reduction in the price, in proportion to what is lacking in the area or vendees, the ownership shall be transferred to the person who
number, unless the contract is rescinded because the vendee does not may have first taken possession thereof in good faith, if it should
accede to the failure to deliver what has been stipulated. (1471) be movable property.

GENERAL RULE: The BUYER is duty bound to deliver the whole area Should it be immovable property, the ownership shall
within the boundaries stated, without any corresponding increase in the belong to the person acquiring it who in good faith first
price. recorded it in the Registry of Property.
EXCEPTION: The DIFFERENCE in the area is obviously SIZABLE and
too SUBSTANTIAL to be overlooked. Should there be no inscription, the ownership shall pertain
to the person who in good faith was first in the possession; and,
ILLUSTRATION:
Buyer wanted to acquire the remaining beach front in his place of birth;
in the absence thereof, to the person who presents the oldest title,
thus, he offered to buy from the owner his land for P20M, which the latter accepted. provided there is good faith. (1473)
When Buyer caused the resurvey of the land, he discovered that its total land area
was only 18 hectares. Buyer demanded from owner the proportionate reduction of the ***DOUBLE or MULTIPLE SALES exist when the same determinate
purchase price, which owner ignored. thing should have been sold validly on different occasions by the same
Question: Is Buyer entitled to get a proportionate reduction in the purchase price
vendor to different vendees in good faith.
based on Article 1539? REQUISITES OF DOUBLE SALE:
1. Exactly the Same Subject Matter;
Answer: No, buyer is not entitled to the relief afforded to him under Article 1539, which 2. Same Immediate Seller;
is a proportional reduction of the price. In the given case, buyer bought the land without 3. Two or More Different Buyers;
regard to its exact size or total area. His paramount consideration was to acquire the
property since it was the remaining beach front in his place of birth. The 20M was based on
4. Both Sales ARE VALID.
the approximate size of the land. Thus, the sale of the land between the buyer and owner RULE ON DOUBLE SALE – MOVABLE
was made for a lump sum, not for a price per square meter or per hectare. Hence, it it
ARTICLE 1542 and not Article 1539 which is the applicable law. Accordingly, since the PNOTES
sale in the case at bar involved a sale of real estate for a lump sum, there would be no
decrease in the purchase price although the actual land area was two hectares less than the
20 hectares stated in the deed of sale.
CIVIL LAW REVIEWER
***First in possession in good faith, priority in right.
RULE ON DOUBLE ESCALE – IMMOVABLES
i. First to Register in Good Faith;
ii. If NO INSCRIPTION; First to possess in good faith;
iii. If NO INSCRIPTION AND NO POSSESSION; Person who
presents oldest title in GOOD FAITH
ILLUSTRATION:
Itak is the owner of Lot 123, with an area of 300sqm, in Poblacion Itaas,
Angono Rizal, covered by TCT No. T-123011. On January 15, 2012, Itak executed in
favor of THORNY a Deed of Absolute Sale covering the entire Lot 123, who then took
possession thereof. However, Thorny did not register the sale or pay the real property
taxes for the subject land.
On March 17, 2014, Itak sold the same lot 123 to CASEY, evidenced by Deed
of Absolute Sale. Casey registered the sale with the Registry of Deeds of Binangonan
on June 15, 2014. Consequently; TCT in the name of Itak was cancelled andTCT T-
152412 was issued in the name of Casey. The latter was not aware that Thorny had
any claim or interest inover the subject property. Since then Casey paid the real
property taxes for the subject parcel of land.
Question: Who has a better right between Casey and Thorny?
Answer: Case is the one who registered the sale in good faith; as such, she has a better
right than Thorny.
Question: In case Casey has not registered the Deed of Sale with the Registry of Deed,
who has a better right than Thorny?
Answer: Since no one between Thorny and Casey has registered his or her respective Deed
of Sale with the Registry of Deed, the ownership of Lot 123 should be transferred to the
person who in good faith was the first in possession thereof. In this case, Thorny has better
right than Casey because he was already in possession of Lot 123 when the latter bought it
from Itak.
Question: In case both have not registered their title and both did not acquire
possession over the lot, who has a better right?
Answer: The person who can present the older title, provided in good faith. A perfected
contract of sale created a title in favor of the buyer, which will be the basis in compelling
the seller to transfer ownership. In this case, Thorny has a better right. The contract of sale
between Thorny and ITak was perfected in 2012; whereas between Casey and Itak, it was
only in 2014.
The principle of PRIMUS TEMPORE, POTIOR JURE ( First in time, Stronger in
Right) supports the same conclusion.
OBLIGATION TO WARRANT THE OBJECT OF THE SALE
AGAINST EVICTION AND HIDDEN DEFECTS
SECTION 3: CONDITIONS AND WARRANTIES
ARTICLE 1545 -CONDITION
Where the obligation of either party to a contract of sale is subject to
any CONDITION WHICH IS NOT PERFORMED, such party may
REFUSE to PROCEED WITH THE CONTRACT or he MAY WAIVE
PERFORMANCE OF THE CONDITION. If the other party has
promised that the condition should happen or be performed, such first
mentioned party may also treat the NONPERFORMANCE OF THE
CONDITION as a BREACH OF WARRANTY.
Where the ownership in the thing has not passed, the BUYER
may treat the fulfillment by the seller of his obligation to deliver the
same as described and as warranted expressly or by implication in the
contract of sale as a condition of the obligation of the buyer to perform
his promise to accept and pay for the thing. 
CONDITION, MAY BE:
 SUSPENSIVE – when the happening of the future and uncertain
event gives rise to an obligation;
 RESOLUTORY - when the happening of the future and uncertain
event extinguishes an obligation or terminates the right that is
already acquired;
 EXPRESS – one which is mutually agreed or stipulated by the
parties;
 IMPLIED: presumed by law in a contract of sale unless a contrary
intention appears from the contract itself;
***Article 1545 is applicable ONLY to a Perfected Contract of Sale;
***Condition mentioned under 1545 is imposed on the
PERFORMANCE OF THE OBLIGATION of either party in a
perfected contract of sale, and not to the perfection of a contract of
sale;
PNOTES
CIVIL LAW REVIEWER
REMEDIES UNDER ARTICLE 1545:
1. REFUSING TO PROCEED WITH THE CONTRACT;
2. WAIVING THE PERFORMANCE OF THE CONDITION
***A PROMISE OF THE OBLIGOR, that a condition would happen or
be performed, is the Operative act that transforms the condition into
WARRANTY.
***To warrant for the RESCISSION, a breach mush either be
SUBSTANTIAL or SERIOUS; it may only be brought by the
AGGRIEVED PARTY.
***WAIVER may be EXPRESS or IMPLIED;
WARRANTIES
***WARRANTY – is a statement or representation made by the seller of
goods, contemporaneously and as part of the contract of sale, having
reference to the character, quality or title of the goods, and by which he
promises or undertakes to insure that certain facts are or shall be as he then
represents them.
KINDS OF WARRANTIES
ARTICLE 1546 – EXPRESS WARRANTY
ANY AFFIRMATION OF FACT OR ANY PROMISE by the seller
relating to the thing is an EXPRESS WARRANTY if the natural
tendency of such affirmation or promise is to induce the buyer to
purchase the same, and IF THE BUYER PURCHASE THE THING
RELYING THEREON. No affirmation of the value of the thing, nor any
statement purporting to be a statement of the seller's opinion only, shall
be construed as a warranty, UNLESS THE SELLER MADE SUCH
AFFIRMATION OR STATEMENT AS AN EXPERT and IT WAS
RELIED UPON BY THE BUYER.
REQUISITES OF AN EXPRESS WARRANTY:
1. There must be an affirmation of fact or any promise by the seller
relating to the thing;
2. The natural tendency of such affirmation or promise is to induce
the buyer to purchase the same;
3. The buyer purchases the thing relying thereon;
4. The affirmation of fact or any promise must be made before the
perfection of the contract of sale.
***A MERE EXPRESSION OF OPINION does not signify fraud, unless
made by an expert and the other party has relied on the former’s special
knowledge;
IMPLIED WARRANTY – is that which the law derives by application or
inference from the nature of the transaction or the relative situation or
circumstances of the parties, irrespective of any intention of the seller to
create it.
IMPLIED WARRANTIES OF THE VENDOR:
1. Seller has a right to sell the thing;
2. Warranty against EVICTION;
3. Warranty against NON-APPARENT encumbrance or servitude;
4. Warranty against hidden defects or encumbrances;
5. Warranty as to the quality or fitness; and
6. Warranty against Redhibitory Defect on Animals.
ARTICLE 1547 – IMPLIED WARRANTIES PASSED ON BY THE
VENDOR TO THE VENDEE
In a contract of sale, unless a contrary intention appears, there is:
(1) An IMPLIED WARRANTY ON THE PART OF
THE SELLER that he has a right to sell the thing at the time
when the ownership is to pass, and that the buyer shall from that
time have and enjoy the legal and peaceful possession of the
thing;
(2) An implied warranty that the thing shall be free from any
hidden faults or defects, or any charge or encumbrance NOT
declared or known to the buyer.
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CIVIL LAW REVIEWER
This Article shall not, however, be held to render liable a sheriff, auctioneer,
mortgagee, pledgee, or other person professing to sell by virtue of authority
in fact or law, for the sale of a thing in which a third person has a legal or
equitable interest.
***CAVEAT EMPTOR applies in a sale by a sheriff.
WARRANTY IN CASE OF EVICTION
ARTICLE 1548 – WHEN CAN THERE BE EVICTION?
EVICTION shall take place whenever by a final judgment based
on a right prior to the sale or an act imputable to the vendor, the vendee is
deprived of the whole or of a part of the thing purchased.
The vendor shall answer for the eviction even though nothing has
been said in the contract on the subject.
The contracting parties, however, may increase, diminish, or
suppress this legal obligation of the vendor. (1475a)
REQUISITES OF EVICTION:
1. The vendee is deprived, in whole or in part, of the thing;
2. The eviction is by a final judgement;
3. The final judgement is based on a prior right to the sale or an act
imputable to the vendor;
4. The vendor is summoned in the suit for eviction at the instance of
the vendee; and
5. There is no waiver of warranty by the vendee.
***Warranty against eviction was not applicable if there was NO
DEPRIVATION OF PROPERTY;
***Warranty against eviction is NOT APPLICABLE when the reason
of the deprivation of property was NOT DELIBERATELY caused by
the seller;
***Warranty against eviction is NOT APPLICABLE when the seller
was not summoned in the suit for the eviction of the buyer;
RULES IN CASE OF WAIVER OF THE WARRANTY AGAINST
EVICTION:
1. If the seller acted in bad faith, THE WARRANTY IS VOID;
2. If the Buyer waived the warranty against eviction WITHOUT
KNOWLEDGE of the risks of eviction, the seller shall only pay
the value of the thing sold at the time of the eviction;
3. If the buyer waived the warranty against eviction WITH
KNOWLEDGE of the risks of eviction, the SELLER SHALL NOT
BE LIABLE.
ARTICLE 1549: APPEAL FOR EVICTION
The VENDEE NEED NOT APPEAL from the decision in order
that the vendor may become liable for eviction. (n)
ARTICLE 1550
When ADVERSE POSSESSION HAD BEEN COMMENCED
BEFORE THE SALE but the prescriptive period is completed after the
transfer, the vendor shall not be liable for eviction. (n)
ARTICLE 1551 – NONPAYMENT OF TAXES DUE
If the PROPERTY IS SOLD FOR NONPAYMENT OF TAXES
DUE and not made known to the vendee BEFORE the sale, the vendor is
liable for eviction. (n)
ARTICLE 1552 – JUDICIAL SALES
The JUDGMENT DEBTOR IS ALSO RESPONSIBLE FOR
EVICTION IN JUDICIAL SALES, unless it is otherwise decreed in the
judgment. (n)
ARTICLE 1553 – STIPULATION OF EXEMPTING FROM
LIABILITY
Any stipulation exempting the vendor from the obligation to
answer for eviction shall be VOID, if he acted in bad faith. (1476)
ARTICLE 1554 – RENUNCIATION TO RIGHT TO WARRANTY IN
CASE OF EVICTION
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CIVIL LAW REVIEWER
If the VENDEE HAS RENOUNCED THE RIGHT TO
WARRANTY in case of eviction, and eviction should take place, the
VENDOR SHALL ONLY PAY THE VALUE WHICH THE THING
SOLD HAD AT THE TIME OF THE EVICTION.
Should the vendee have made the waiver with knowledge of the
risks of eviction and assumed its consequences, the VENDOR SHALL
NOT BE LIABLE. (1477)
ARTICLE 1555: RIGHT OF VENDEE AGAINST VENDOR WHEN
EVICTION OCCURS
When the warranty has been agreed upon or nothing has been
stipulated on this point, in case eviction occurs, the VENDEE SHALL
HAVE THE RIGHT TO DEMAND OF THE VENDOR: (VICED)
(1) The return of the Value which the thing sold had at the time
of the eviction, be it greater or less than the price of the sale;
(2) The Income or fruits, if he has been ordered to deliver them
to the party who won the suit against him;
(3) The Costs of the suit which caused the eviction, and, in a
proper case, those of the suit brought against the vendor for the
warranty;
(4) The Expenses of the contract, if the vendee has paid them;
(5) The Damages and interests, and ornamental expenses, if the
sale was made in bad faith. (1478)
***ARTICLE 1555 provides for the remedy of the buyer in case of
TOTAL EVICTION, whether the warranty against eviction is agreed
upon or not.
ARTICLE 1556- RULE ON RESCISSION WHEN EVICTION OF A
PART OF THE THING SOLD OCCURS;
Should the vendee lose, by reason of the eviction, a part of the
thing sold of such importance, in relation to the whole, that he would not
have bought it without said part, HE MAY DEMAND THE
RESCISSION OF THE CONTRACT; but with the obligation to return
the thing without other encumbrances that those which it had when he
acquired it.
He may exercise this right of action, instead of enforcing the
vendor's liability for eviction.
The same rule shall be observed when two or more things have
been jointly sold for a lump sum, or for a separate price for each of
them, if it should clearly appear that the vendee would not have
purchased one without the other. (1479a)
***ARTICLE 1556 lays down the REMEDIES IN CASE OF
PARTIAL EVICTION;
REMEDIES OF THE VENDEE IN CASE OF PARTIAL EVICTION:
1. Enforce the vendor’s liability against eviction and demand to the
vendor the VICED under Article 1555; or
2. Demand the rescission of the contract.
ARTICLE 1557: WHEN CAN WARRANTY BE ENFORCED?
The warranty cannot be enforced UNTIL a final judgment has
been rendered, whereby the vendee loses the thing acquired or a part
thereof. (1480)
ARTICLE 1558
The vendor shall not be obliged to make good the proper
warranty, UNLESS he is summoned in the suit for eviction at the
instance of the vendee. (1481a)
ARTICLE 1559: VENDOR MUST BE MADE CO-DEFENDANT
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CIVIL LAW REVIEWER
The defendant vendee shall ask, within the time fixed in the Rules
of Court for answering the complaint, that the vendor be made a co-
defendant. (1482a)
ARTICLE 1560: IMPLIED WARRANTY AGAINST NON-
APPARENT ENCUMBRANCE OR SERVITUDE
If the IMMOVABLE SOLD SHOULD BE ENCUMBERED
WITH ANY NON-APPARENT BURDEN OR SERVITUDE, NOT
MENTIONED IN THE AGREEMENT, of such a nature that it must be
presumed that the vendee would not have acquired it had he been aware
thereof, HE MAY ASK FOR THE RESCISSION OF THE
CONTRACT, UNLESS HE SHOULD PREFER THE APPROPRIATE
INDEMNITY. Neither right can be exercised if the non-apparent burden or
servitude is recorded in the Registry of Property, unless there is an express
warranty that the thing is free from all burdens and encumbrances.
WITHIN ONE YEAR, to be COMPUTED FROM THE
EXECUTION OF THE DEED, the vendee may bring the action for
rescission, or sue for damages.
One year having elapsed, he may only bring an action for
damages within an equal period, to be counted from the date on which
he discovered the burden or servitude.
***Implied warranty against non-apparent encumbrance or servitude is
APPLICABLE to SALE of IMMOVABLE PROPERTY ONLY!
***ENCUMBRANCE – A claim or liability that is attached to an
immovable property or some other right and that may lessen its value, such
as a lien or real estate mortgage;
***SERVITUDE OR EASEMENT – A real right constituted on another’s
property, corporeal and immovable, by virtue of which the owner of the
same has to abstain from doing or to allow somebody else to do something
on his property for the benefit of another thing or person.
REQUISITES OF THE VENDOR FOR BREACH OF IMPLIED
WARRANTY AGAINST NON-APPARENT ENCUMBRANCE OR
SERVITUDE:
1. The immovable sold should be encumbered with any non-apparent
burden or servitude, not mentioned in the agreement;
2. The nature of the non-apparent encumbrance or servitude is such
that it must be presumed that the vendee would not have acquired it
had he been aware thereof;
3. The non-apparent encumbrance or servitude is not recorded in the
Registry of Property, unless there is an express warranty that the
thing is free from all burdens and encumbrances;
4. The action is brought by the vendee within the prescriptive period.
REMEDIES OF THE BUYE IN CASE OF BREACH OF
WARRANTY AGAINST NON-APPARENT ENCUMBRANCE OR
SERVITUDE
1. Action for RESCISSION;
2. SUE FOR DAMAGES
WARRANTY AGAINST HIDDEN DEFECTS OF OR
ENCUMBRANCES UPON THE THING SOLD
  
ARTICLE 1561 – WARRANTY AGAINST HIDDEN DEFECTS
The VENDOR SHALL BE RESPONSIBLE FOR WARRANTY
AGAINST THE HIDDEN DEFECTS which the thing sold may have,
should they render it unfit for the use for which it is intended, or should
they diminish its fitness for such use to such an extent that, had the
vendee been aware thereof, he would not have acquired it or would have
given a lower price for it; but said vendor shall not be answerable for
patent defects or those which may be visible, or for those which are not
visible if the vendee is an expert who, by reason of his trade or
profession, should have known them. (1484a)
REQUISITES FOR BREACH OF IMPLIED WARRANTY AGAINST
HIDDEN DEFECT:
1. The defect renders the thing sold unfit for the use for which it is
intended, or diminishes its fitness for such use to such an extent that
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CIVIL LAW REVIEWER
had the vendee been aware thereof, he would not have acquired it or
would have given a lower price for it;
2. The defect is not patent or visible;
3. The defect exists at the time of sale;
4. The vendee is not an expert who, by reason of his trade or
profession, should have known it;
5. There is no stipulation to the contrary or if there is a stipulation to
the contrary, the vendor is aware of the hidden defect of the thing
sold;
6. The vendee notifies the vendor of the defect within a reasonable
time;
7. The action based on breach of the vendor’s implied warranty against
hidden defects must be instituted within 6 months from the date of
delivery of the thing sold.
***Caveat Emptor does not apply to the implied warranty against hidden
defects.
***REDHIBITORY DEFECT is one which is unknown to the buyer and
existing prior to the sale, the kind of sale which would entitle the buyer to
annul the sale or demand for a proportionate reduction of price which is a
hidden defect in the manufacture or design of the thing sold which would
render it either useless or unfit for the use for which it is intended.
ARTICLE 1562
In a SALE OF GOODS, there is an implied warranty or condition
as to the quality or fitness of the goods, as follows:
(1) Where the buyer, expressly or by implication, makes known to
the seller the particular purpose for which the goods are acquired,
and it appears that the buyer relies on the seller's skill or judgment
(whether he be the grower or manufacturer or not), there is an
implied warranty that the goods shall be reasonably fit for such
purpose;
(2) Where the goods are brought by description from a seller
who deals in goods of that description (whether he be the grower or
manufacturer or not), there is an implied warranty that the goods
shall be of merchantable quality. (n)
ARTICLE 1563 – CONTRACT OF SALE OF A SPECIFIED
ARTICLE
In the case of CONTRACT OF SALE OF A SPECIFIED
ARTICLE under its patent or other trade name, there is no warranty as to
its fitness for any particular purpose, UNLESS there is a stipulation to
the contrary. (n)
ARTICLE 1564
An implied warranty or condition as to the quality or fitness for a
particular purpose may be annexed by the usage of trade. (n)
***Usage of Trade-any practice or method of dealing having such
regularity of observance in a place, vocation or trade as to justify an
expectation that it will be observed with respect to the transaction in
question.
ARTICLE 1565-CONTRACT OF SALE BY SAMPLE
In the case of a CONTRACT OF SALE BY SAMPLE, if the
seller is a DEALER IN GOODS OF THAT KIND, there is an implied
warranty that the goods shall be free from any defect rendering them
unmerchantable which would not be apparent on reasonable examination of
the sample. (n)
***QUALITY – goods are in satisfactory state or condition;
***FITNESS – goods are reasonably fit or suitable for the use or purpose
for which they are intended, as measured against the goods of similar kind.
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CIVIL LAW REVIEWER
GENERAL RULE: There is no implied warranty or condition as to
quality or fitness of goods provided under a contract of sale.
***As Is Where Is, means that the parties agree that the object of the sale is
without any warranty as to its fitness and quality. Buyer assumes the risk;
EXCEPTIONS:
1. Reliance on the seller’s skill or judgement;
a. Seller is the manufacturer or grower of the goods;
b. Primarily engaged in the business of selling such goods;
2. Sale of Goods by Description;
a. There is an implied warranty that the goods are of
merchantable quality;
3. Sale of Goods by Sample;
a.There is an implied warranty that the goods shall be free from
any defect which is not apparent on reasonable examination of
the sample and which would render the goods unmerchantable;
b. The buyer must have a reasonable opportunity of comparing
the bulk with the sample;
c. The goods must correspond with the sample in quality.
ARTICLE 1566
The vendor is responsible to the vendee for any hidden faults or
defects in the thing sold, even though he was not aware thereof.
This provision shall not apply if the contrary has been stipulated,
and the vendor was not aware of the hidden faults or defects in the thing
sold. (1485)
ARTICLE 1567- REMEDIES OF THE BUYER IN CASE OF A
VIOLATION OF THE IMPLIED WARRANTY AGAINST HIDDEN
DEFECTS AND ENCUMBRANCES, AND IMPLIED WARRANTY
AS TO FITNESS OR MERCHANTABILITY OF THE GOODS
In the cases of Articles 1561, 1562, 1564, 1565 and 1566, the
vendee may elect between WITHDRAWING FROM THE
CONTRACT and DEMANDING A PROPORTIONATE
REDUCTION OF THE PRICE, with damages in either case. (1486a)
REMEDIES
1. ACCION REDHIBITORIA;
2. ACTION QUANTI MINORIS;
3. Annulment of the contract upon proof of error or fraud, in
which case the ordinary rule on obligations shall be applicable;
4. Action for quasi-delict under Article 2176 of the Civil Code
ARTICLE 1568: AWARE OF HIDDEN FAULTS
If the thing sold should be lost in consequence of the hidden faults,
and the vendor was aware of them, he shall bear the loss, and shall be
obliged to return the price and refund the expenses of the contract, with
damages. If he was not aware of them, he shall only return the price and
interest thereon, and reimburse the expenses of the contract which the
vendee might have paid. (1487a)
ARTICLE 1569: Loss through Fortuitous Event/Fault of Buyer
If the thing sold had any hidden fault at the time of the sale, and
should thereafter be lost by a fortuitous event or through the fault of the
vendee, the latter may demand of the vendor the price which he paid, less
the value which the thing had when it was lost.
If the vendor acted in bad faith, he shall pay damages to the vendee. (1488a)
LOSS IN CONSEQUENCE OF HIDDEN FAULTS
 AWARE OF THE HIDDEN FAULTS OR DEFECTS
o VENDOR SHALL
 Bear the loss
 Return the price;
 Refund the expenses of the contract; and
 Pay damages
 NOT AWARE OF THE HIDDEN FAULTS OR DEFECTS
o VENDOR SHALL
 Return the price and interest thereon;
 Reimburse the expenses of the contract which the
vendee might have paid.
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CIVIL LAW REVIEWER
ARTICLE 1570- APPLICABILITY TO JUDICIAL SALES
The preceding articles of this Subsection shall be applicable to
judicial sales, except that the judgment debtor shall not be liable for
damages. (1489a)
ARTICLE 1571- PRESCRIPTION OF ACTION
Actions arising from the provisions of the preceding ten articles
shall be barred after six months, from the delivery of the thing sold. (1490)
***Prescription for Express Warranty , specified in the contract, is 4 years;
***Prescription of Action based on Breach of Implied Warranty is 6 months
from the date of the delivery of the thing sold;
IMPLIED WARRRANTY AGAINST REDHIBITORY DEFECTS OF
ANIMALS (ARTICLES 1572 – 1581)
ARTICLE 1572
If two or more animals are sold together, whether for a lump
sum or for a separate price for each of them, the redhibitory defect
of one shall only give rise to its redhibition, and not that of the
others; unless it should appear that the vendee would not have
purchased the sound animal or animals without the defective one.
The latter case shall be presumed when a team, yoke pair, or set is
bought, even if a separate price has been fixed for each one of the
animals composing the same.  If the animal should die within three days after its
ARTICLE 1573
The provisions of the preceding article with respect to the
sale of animals shall in like manner be applicable to the sale of
other things.
ARTICLE 1574
There is no warranty against hidden defects of animals
sold at fairs or at public auctions, or of live stock sold as
condemned.  ARTICLE 1580
ARTICLE 1575
The sale of animals suffering from contagious diseases
shall be VOID.
A contract of sale of animals shall also be void if the use
or service for which they are acquired has been stated in the
contract, and they are found to be unfit therefor.
ARTICLE 1576
If the hidden defect of animals, even in case a professional
inspection has been made, should be of such a nature that expert
knowledge is not sufficient to discover it, the defect shall be
considered as redhibitory.
But if the veterinarian, through ignorance or bad faith should
fail to discover or disclose it, he shall be liable for damages. 
ARTICLE 1577
The REDHIBITORY ACTION, based on the faults or
defects of animals, must be brought within forty days from the date
of their delivery to the vendee.
This action can only be exercised with respect to faults and
defects which are determined by law or by local customs.
ARTICLE 1578
purchase, the VENDOR SHALL BE LIABLE if the disease
which cause the death existed at the time of the contract.
ARTICLE 1579
If the sale be rescinded, the animal shall be returned in
the condition in which it was sold and delivered, the vendee being
answerable for any injury due to his negligence, and not arising from
the redhibitory fault or defect.
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CIVIL LAW REVIEWER
In the sale of animals with redhibitory defects, the vendee
shall also enjoy the right mentioned in article 1567; but he must
make use thereof within the same period which has been fixed for
the exercise of the redhibitory action.
ARTICLE 1581
The form of sale of large cattle shall be governed by special laws.
***Redhibitory Defect of Animals – is a hidden defect of such a nature
that expert knowledge is not sufficient to discover it even in a case where
professional inspection has been made.
REQUISITES: VENDOR LIABLE FOR BREACH OF WARRANTY
AGAINST REDHIBITORY DEFECTS OF ANIMALS
1. The Defect must be redhibitory;
2. The defect is one determined by law or local customs or usage;
3. .
4. .
5. There is no waiver of warranty by the vendee (buyer).
WHEN IS THE SALE OF ANIMAL VOID:
1. Suffering from contagious diseases;
2. Unfit for the use or service for which they were purchased as
indicated in the contract
WHEN IS A VENDOR RESPONSIBLE FOR HIDDEN DEFECTS?
If the hidden defects which the thing sold may have:
1. Render it unfit for the use for which it is intended, or
2. Diminish its fitness for such use to such an extent that, had the
vendee been aware thereof, he would not have acquired it or would
have given a lower price for it.
TWO OR MORE ANIMALS ARE SOLD TOGETHER;
GENERAL RULE: If two or more animals are sold together, whether
for a lump sum or for a separate price for each of them, the redhibitory
defect of one shall only give rise to its redhibitory, and not that of the
others.
EXCEPTION:
-It appears that the vendee would not have purchased the sound animal or
animals without the defective one.
WHAT ARE THE REMEDIES OF THE BUYER IN CASE OF SALE
OF THINGS WITH HIDDEN DEFECTS (ARTICLE 1567)
1. Withdrawing from the contract (ACCION REDHIBITORIA);
2. Demanding a proportionate reduction of the price (ACCION
QUANTI MINORIS).
EFFECTS OF RESCISSION OF SALE OF ANIMALS WITH A
REDHIBITORY DEFECT:
a) The vendee shall return the animal in the condition in which it was
sold and delivered;
b) The vendee shall be answerable for any injury due to his negligence,
and not arising from the redhibitory fault or defect;
OBLIGATIONS OF THE VENDEE
ARTICLE 1582 – OBLIGATION TO PAY
The vendee is bound to accept delivery and to pay the
price of the thing sold at the time and place stipulated in the
contract.
If the time and place should not have been stipulated, the
payment must be made at the time and place of the delivery of the
thing sold.
PRINCIPAL OBLIGATION OF VENDEE:
1. To ACCEPT DELIVERY;
2. To PAY THE PRICE OF THE THING SOLD;
***Rule on FORTUITOUS EVENT does not apply when the obligation
is pecuniary in nature, like the buyer’s obligation to pay.
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CIVIL LAW REVIEWER
***Non-payment of the price in a contract of sale does not render DEFAULT ON THE PART OF EITHER PARTY: depend upon the
ineffective the obligation to deliver, it only creates a RIGHT TO DEMAND agreement or stipulation of the parties and the circumstances of the case;
PAYMENT or to RESCIND THE CONTRACT, or to CRIMINAL
POSECUTION in case of bouncing checks; ARTICLE 1584 – BUYER’S OPPORTUNITY TO EXAMINE THE
***Non-payment is immaterial and has no effect on the validity of the GOODS
contract of sale.
WHERE GOODS ARE DELIVERED TO THE BUYER, which
ARTICLE 1583 – DELIVERY OF GOODS BY INSTALLMENT he has not previously examined, he is not deemed to have accepted them
UNLESS AND UNTIL he has had a reasonable opportunity of
Unless otherwise agreed, the BUYER OF GOODS IS NOT examining them for the purpose of ascertaining whether they are in
BOUND TO ACCEPT DELIVERY THEREOF BY conformity with the contract if there is no stipulation to the contrary.
INSTALLMENTS.
Unless otherwise agreed, when the seller tenders delivery of
Where there is a contract of sale of goods to be delivered by stated goods to the buyer, HE IS BOUND, on request, to afford the buyer a
instalments, which are to be separately paid for, and the seller makes reasonable opportunity of examining the goods for the purpose of
defective deliveries in respect of one or more instalments, or the ascertaining whether they are in conformity with the contract.
buyer neglects or refuses without just cause to take delivery of or
pay for one or more instalments, it depends in each case on the terms WHERE GOODS ARE DELIVERED TO A CARRIER BY
of the contract and the circumstances of the case, whether the breach THE SELLER, in accordance with an order from or agreement with the
of contract is so material as to justify the injured party in refusing to buyer, upon the terms that the goods shall not be delivered by the carrier to
proceed further and suing for damages for breach of the entire the buyerIllustration:
until he has paid the price, whether such terms are indicated by
Victor came across an advertisement in the “Mas Sulit Dito”, an online site,
contract, or whether the breach is severable, giving rise to a claim marking the
aboutgoods
the salewith the words
of a limited "collect
unit of Brand on delivery,"
X watch or otherwise,
for only 1M. Finding the price tothe
be very
for compensation but not to a right to treat the whole contract as buyer is not
cheapentitled
and in order totoexamine
be sure thatthe goods
he would before
get ahead theothers,
of the payment of the
Victor immediately
broken.  price, in phoned the advertiser,
the absence Torvic, whoor
of agreement is engaged
usage of in buying
tradeand selling of watch;
permitting suchand placed
an order for the watch. They both agreed to meet in a mall. When they met, Torvic
examination. (n) for the payment, but Victor refused. The latter alleged that there was no sale
demanded
GENERAL RULE: BUYER OF GOODS IS NOT BOUND TO GENERAL RULE:
yet, and The seller
that he should affords
be allowed the the
to inspect buyer,
watch upon thetolatter’s
first prior giving therequest.
payment.
ACCEPT DELIVERY THEREOF BY INSTALLMENTS. Torvicopportunity
A reasonable contended that of there was already athe
examining salegoods
since hewhen
had already seen the pictures
he tenders delivery
posted; and thus, had been given the opportunity to inspect the watch.
of goods QUESTION:
to the buyer. WHO BETWEEN VICTOR AND TORVIC IS CORRECT?
EXCEPTION: PARTIES AGREE ON DELIVERY OF GOODS BY EXCEPTION:ANSWER: Unless
Both of otherwise agreed
them are partially correct. On one hand, Torvic is correct when he
INSTALLMENTS said that there was a sale between
PURPOSE: In order for the buyer to ascertain them, The contract of sale between
whether them was
the goods areperfected
in
when Victor placed his order for a unit of Brand X watch for 1M and Torvic accepted it.
conformity with the contract.
On this point, Victor is not correct. The perfection of the contract, however, is different
Installment Contract: Where the parties in a contract of sale of goods from its consummation. The consummation of a perfected contract of sale occurs upon the
agree on the delivery thereof by instalments, which requires or authorizes constructive or actual delivery of the subject matter to the buyer and the transfer of
ownership to him, and the payment of the purchase price to the seller.
the delivery of goods in installments; On the other hand, Torvic is not correct to deny Victor the opportunity to inspect
and examine the Brand X watch because Article 1584 of the Civil Code accords the buyer
the right to a reasonable opportunity to examine the goods to ascertain whether they are in
conformity with the contract. Seeing the pictures of the Brand X watch online is not
PNOTES
equivalent to the reasonable opportunity to examine the goods. It is the actual inspection
or examination that is contemplated by law. On this point, Victor is correct. He has to
actually inspect or examine the unit in order to determine whether it is in conformity with
what was on the pictures.
CIVIL LAW REVIEWER
RIGHTS OF THE BUYER IN RELATION TO HIS OBLIGATION
TO ACCEPT DELIVERY:
1. The buyer of goods is not bound to accept delivery thereof by
instalments unless otherwise agreed;
2. The buyer has a right to be afforded a reasonable opportunity to
examine the goods when delivered;
3. The buyer has a right to refuse to take delivery of, or reject the
goods with just cause.
WHEN THE BUYER IS DEEMED TO HAVE ACCEPTED THE
GOODS:
1. He intimates to the seller that he has accepted them;
2. The goods have been delivered to him, and he does any act in
relation to them which is inconsistent with the ownership of the
seller; or
3. After the lapse of a reasonable time, he retains the goods without
intimating to the seller that he has rejected them
***Acceptance of the buyer signifies his confirmation of the contract;
***Actual Receipt refers only to the act of getting, taking or receiving of
Illustration: the goods delivered.
In relation to the above illustration, instead of a meet up in a mall, Torvic and
Victor agreed for a collect and delivery arrangement. Torvic sent the Brand X watch
through FEDEX, a freight forwarder. When the FEDEX driver delivered the Brand X ARTICLE 1586 – NOTICE SHOULD BE GIVEN AFTER THE
watch to Victor, the latter requested for the opening of the package before payment. He BREACH OF WARRANTY
reasoned out that he needed to examine it in order to determine whether it is in the
conformity with what was on the pictures. The driver refused and demanded for the  In the absence of express or implied agreement of the parties,
payment before the opening of the package. The driver claimed that he was simply acceptance of the goods by the buyer shall not discharge the seller from
following the instruction given to him by his company. liability in damages or other legal remedy for breach of any promise or
QUESTION: WHOSE POSITION IS CORRECT?
ANSWER: The position of the FEDEX driver is correct because the delivery arrangement warranty in the contract of sale. But, if, after acceptance of the goods, the
ARTICLE 1585
agreed upon–by
OBLIGATION
Torvic and Victor was TO ACCEPT
COD. Under this DELIVERY
arrangement, the payment of the buyer fails to give notice to the seller of the breach in any promise of
price is a condition sine qua non
The BUYER IS DEEMED TO HAVE ACCEPTEDto the buyer’s entitlement to examine the
THEgoods. Thus, warranty within a reasonable time after the buyer knows, or ought to know
the Brand X watch may not be examined by the Victor without paying for the price.
GOODS of such breach, the seller shall not be liable therefor. (n)
-When he intimates to the seller that he has accepted them,or ***If there is a breach of the warranty, NOTICE OF THE BREACH
-When the goods have been delivered to him, and; should be given to the seller within a reasonable time;
-He does any act in relation to them which is inconsistent with ***Notice must be given after the breach.
the ownership of the seller, or;
- When, after the lapse of a reasonable time, he retains the goods ARTICLE 1587 – OBLIGATIONS OF THE VENDEE IN CASE HE
without intimating to the seller that he has rejected them. (n) REFUSES TO ACCEPT THE GOODS DELIVERED TO HIM

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 Unless otherwise agreed, where goods are delivered to the buyer,
and he refuses to accept them, having the right so to do, he is not bound to
return them to the seller, but it is sufficient if he notifies the seller that he
refuses to accept them. If he voluntarily constitutes himself a depositary
thereof, he shall be liable as such. (n)
OBLIGATIONS OF THE BUYER WHEN HE REFUSE TO ACCEPT
THE GOODS:
1. To notify the seller of his refusal to accept the goods;
2. To take good care of the goods, but he is not bound to return them to
the seller;
3. To be held liable as a depositary of the goods if he constituted
himself as such;
Illustration:
The seller delivered 100 bags of cement to the buyer’s warehouse
pursuant to their contract of sale. Shortly after the delivery truck left, the buyer’s
inspector found that the quality of the cement was not in accordance with the
specifications stipulated in the contract. After knowing his inspector’s report, the
buyer immediately called up the seller, informed him that he could not accept the
100 bags of cement pursuant to the findings, and demanded from the latter to pull
them out and replace them. The seller responded that in order for him to deliver
the replacement, he had to return the delivered 100 bags of cement.
QUESTION: IS THE BUYER BOUND TO RETURN?
ANSWER: No, the buyer is not bound to return the delivered 100 bags of
cement pursuant to Article 1587. It is clear in the given illustration that buyer has
the right to refuse acceptance of the 100 bags of cement because their quality is
different from what was stipulated in the contract, and he notified the seller of his
efusal. Based on the foregoing and in the absence of a contrary stipulation in their
contract of sale, the buyer is not bound to return the delivered 100 bags of cement
to the seller.
ARTICLE 1588 – EFFECTS OF ACCEPTANCE
If there is no stipulation as specified in the first paragraph of article
1523, when the buyer's refusal to accept the goods is without just cause, the
title thereto passes to him from the moment they are placed at his disposal.
(n)
***The acceptance of the thing sold by the buyer signifies the formal
transfer of ownership to him.
GENERAL RULE: Acceptance of the goods by the buyer shall not
discharge the seller from liability in damages or other legal remedy for
breach of any promise or warranty in the contract of sale.
EXCEPTION:
1. The presence of an express or implied agreement of the parties to the
contray;
2. The buyer fails to give notice to the seller of the breach in any
promise of warranty within a reasonable time after the buyer knows,
or ought to know of such breach.
TORTS AND DAMAGES
TORTS
QUASI-DELICTS
ARTICLE 2176 – Whoever by act or omission causes damage to another,
there being fault or negligence, is obliged to pay for the damage done. Such
fault or negligence, if there is no pre-existing contractual relation between
the parties, is called a quasi-delict and is governed by the provision of this
Chapter.
REQUISITES FOR A QUASI-DELICT (CULPA-AQUILIANA)
1. Act or Omission;
2. Presence of FAULT or NEGLIGENCE (simple negligence - absent
negligence there can be no obligation; not a criminal negligence);
3. Damage to Another (if no damage, no cause of action); and
4. Causal Connection between the Fault or Negligence and the damage
(if you remove such cause there can be no damage);
5. There must be NO PRE-EXISTING CONTRACTUAL
RELATION;
***if the negligence is so gross, it may fall under criminal negligence.
***If there is intent to destroy, then this is a crime.
***Burden of proof is upon the one who alleges damage/injury. Quantum of
evidence is preponderance of evidence.
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GENERAL RULE: Quasi-delict or Culpa Aquiliana will not arise when DAMNUM ABSQUE INJURIA – means that although there was a
there is a pre-existing contractual obligations; physical damage, there was no legal injury.
EXCEPTION: When the tort liability itself does not arise because of the
contract.

CULPA CULPA AQUILIANA CULPA CRIMINAL DEFENSES IN QUASI-DELICT

CONTRACTUAL  LAST CLEAR CHANCE;
Negligence is merely Negligence is DIRECT, Negligence is DIRECT, DOCTRINE OF LAST CLEAR CHANCE – he who could have
incidental to the SUBSTANTIVE, SUBSTANTIVE, prevented the injury is till liable if he did not take advantage of such
performance of an INDEPENDENT; INDEPENDENT; opportunity/chance;
obligation; LAST CLEAR CHANCE WILL NOT APPLY IN CASES OF:
There is PRE- There is NO Pre- There is NO Pre- a. Negligence of the plaintiff is concurrent with the negligence of
EXISTING Existing Obligation Existing Obligation the defendant;
OBLIGATION b. Party charged is required to act instantaneously;
Proof needed: PREPONDERANCE PROOF OF BEYOND c. Injury cannot be avoided despite the application at all times of all
PREPONDERANCE OF EVIDENCE REASONABLE the means to avoid the injury;
OF EVIDENCE DOUBT ***adopted to mitigate the harshness of the contributory negligence
Defense of GOOD GOOD FATHER OF A Defense of GOOD of the plaintiff;
FATHER OF FAMILY FAMILY IS A FATHER OF FAMILY  CONTRIBUTORY NEGLIGENCE; (ARTICLE 2179)
IS NOT a proper DEFENSE IS NOT a proper When the plaintiff’s own negligence was the immediate and
defense defense proximate cause of his injury, HE CANNOT RECOVER
As long as there was PLAINTIFF HAS THE ACCUSED IS DAMAGES; But if his negligence was only CONTRIBUTORY,
CONTRACT; BURDEN OF PRESUMED the immediate and proximate cause of the injury being the
PRESUMPTION IS PROVING INNOCENT defendant’s lack of due care, the plaintiff MAY RECOVER
DEBTOR IS AT NEGLIGENCE;
DAMAGES. But the court shall mitigate the damages to be
FAULT
awarded.
NECESSITY OF PROVING NEGLIGENCE:
Negligence must be proved in a suit on a quiasi-delict, so that the  PROXIMATE OF THE LOSS IS THE NEGLIGENCE OF
plaintiff MAY RECOVER. PLAINTIFF;
EXCEPTION: RES IPSA LOQUITOR (The Thing Speaks for Itself) PROXIMATE CAUSE – is the adequate and efficient cause which
which means that due to the fact that some cases may be hard to prove, the in the natural order of events, and under the particular circumstances
presence of facts and circumstances surrounding the injury clearly indicate surrounding the case, would naturally produce the event.
NEGLIGENCE on the part of the defendant.
 ASSUMPTION OF RISK (VOLENTI NON FIT INJURIA);

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Doctrine which states that if someone willingly places themselves in
a position where harm might result, knowing that some degree of
harm might result, they are not able to bring a claim against the
other party in tort or delict.
 PRESCRIPTION (4 YEARS);
 FORCE MAJEURE;
FORCE MAJEURE is a term that is applicable only to those
fortuitous events which are dependent upon human intervention,
such as wars, strikes, riots, etc., while FORTUITOUS EVENT is
the general term that is applicable regardless of whether the event is
independent of or dependent upon human intervention.
 FAULT OF ENGINEER, ARCHITECT OR CONTRACTOR
ARTICLE 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 twice for the same act or omission of the defendant.
*** What is barred by law is the double recovery of damages, not the
availment double remedies
EFFECT OF ACQUITTAL IN A CRIMINAL CASE:
It will not be a bar to a subsequent civil action.
REASON: The evidence in the Criminal Case may not be sufficient
for a conviction but sufficient for a civil liability, where mere
preponderance of evidence is sufficient.
***Under the New Rules of Court; (a) When a criminal action is instituted,
the civil action for the recovery of civil liability arising from the offense
charged shall be deemed instituted with the criminal action unless the
offended party waives the civil action, reserves the right to institute it
separately or institutes the civil action prior to the criminal action.
The reservation of the right to institute separately the civil action
shall be made before the prosecution starts presenting its evidence and
under circumstances affording the offended party a reasonable
opportunity to make such reservation.
*** If the civil liability arises on Art. 32-34 and ART. 2176, SUCH
LIABILITY MAY PROCEED INDEPENDENTLY AND
SIMULTANEOUSLY WITH THE CRIMINAL CASE. Reservation is
still needed for filing the civil case independently.
ARTICLE 2178: The provisions of Article 1172 to 1174 are also
applicable to a quasi-delict.
Article 1172. Responsibility arising from negligence in the
performance of every kind of obligation is also demandable, but
such liability may be regulated by the courts, according to the
circumstances. (1103)
Article 1173. The fault or negligence of the obligor consists in the
omission of that diligence which is required by the nature of the
obligation and corresponds with the circumstances of the persons, of
the time and of the place. When negligence shows bad faith, the
provisions of articles 1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is to be
observed in the performance, that which is expected of a good
father of a family shall be required. (1104a)
Article 1174. Except in cases expressly specified by the law, or
when it is otherwise declared by stipulation, or when the nature of
the obligation requires the assumption of risk, NO PERSON
SHALL BE RESPONSIBLE FOR THOSE EVENTS WHICH
COULD NOT BE FORESEEN, OR WHICH, THOUGH
FORESEEN, WERE INEVITABLE.
ARTICLE 2179: CONTRIBUTORY NEGLIGENCE
When the plaintiff's own negligence was the immediate and proximate
cause of his injury, HE CANNOT RECOVER DAMAGES. But if his
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negligence was only contributory, the immediate and proximate cause of
the injury being the defendant's lack of due care, the PLAINTIFF MAY
RECOVER DAMAGES, but the COURTS SHALL MITIGATE THE
DAMAGES TO BE AWARDED.
***If PLAINTIFF is the PROXIMATE CAUSE of the injury/damage – HE
CANNOT RECOVER DAMAGE;
***If PLAINTIFF MERELY CONTRIBUTES to the injury/damage –
DAMAGES TO BE RECOVERED CAN BE MITIGATED;
***there is no hard and fast rule as to the amount of mitigated damages;
EMERGENCY RULE DOCTRINE - means that one who suddenly finds
himself in a place of danger, and is required to act without time to consider
the best means that may be adopted to avoid the impending danger, is NOT
GUILTY of negligence, if he fails to adopt what subsequently and upon
reflection may appear to have been a better method, UNLESS the danger in
which he finds himself is brought by his own negligence.
BURDEN OF PROOF: the tortfeasor has the burden of proving his
allegation that he acted on an emergency.
WHAT IS THE CONNECTION BETWEEN LAST CLEAR CHANCE
AND CONTRIBUTORY NEGLIGENCE?
Initially, contributory negligence disallows the recovery of damages on the
part of the injured party, the last clear chance is used to balance that rule.
ARTICLE 2180: PRINCIPLE OF VICARIOUS LIABILITY AND
PERSONS VICARIOUSLT LIABLE:
The obligation imposed by article 2176 is demandable not only for
one's own acts or omissions, but also for those of persons for whom one is
responsible.
The FATHER and, in case of his death or incapacity, the mother,
are responsible for the damages caused by the minor children who live in
their company.
GUARDIANS are liable for damages caused by the minors or
incapacitated persons who are under their authority and live in their
company.
The OWNERS AND MANAGERS OF AN ESTABLISHMENT
OR ENTERPRISE are likewise responsible for damages caused by their
employees in the service of the branches in which the latter are
employed or on the occasion of their functions.
EMPLOYERS shall be liable for the damages caused by their
employees and household helpers acting within the scope of their
assigned tasks, even though the former are not engaged in any business
or industry.
The STATE is responsible in like manner when it acts through a
special agent; but not when the damage has been caused by the official to
whom the task done properly pertains, in which case what is provided in
article 2176 shall be applicable.
Lastly, TEACHERS OR HEADS OF ESTABLISHMENTS OF
ARTS AND TRADES shall be liable for damages caused by their pupils
and students or apprentices, so long as they remain in their custody.
The RESPONSIBILITY treated of in this article SHALL CEASE
WHEN THE PERSONS HEREIN MENTIONED PROVE THAT
THEY OBSERVED ALL THE DILIGENCE OF A GOOD FATHER
OF A FAMILY TO PREVENT DAMAGE.
***A person or juridical entity is made liable solidarily with a tortfeasor
simply by reason of his relationship with the latter.
***BASIC RULE – burden of proof is on the injured party;
***Once there is a finding of negligence on the part of student, child,
employee, PRESUMPTION OF NEGLIGENCE ARISES ON THE
PART OF THE PARENTS, EMPLOYER, TEACHER.
*** The vicarious liability shall cease when the defendants prove that they
observed all the diligence of a good father of a family to prevent damage.
NATURE OF RESPONSIBILITY OF VICARIOUS OBLIGOR
His LIABILITY IS PRIMARY AND DIRECT, NOT SUBSIDIARY. He
is solidarily liable with the tortfeasor. His responsibility is not conditioned
upon the insolvency of or prior recourse against the negligent tortfeasor.
***EXTENT OF LIABILITY IN CULPA AQUILIANA – SOLIDARY.
IN CULPA CONTRACTUAL – exclusively; sole liability of the owner of
employer. IN CULPA CRIMINAL – subsidiary when it comes to the civil
liability.
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***Under criminal law – subsidiary; in civil law – solidary liability as per
jurisprudence.
PRESUMPTION OF NEGLIGENCE ON PERSONS INDIRECTLY
RESPONSIBLE:
The presumption of law is that there was negligence on the part of the
master or employer either in the selection of the servant or employee or in
the supervision over him after the selection, or both.
*** The PRESUMPTION IS JURISTANTUM(rebuttable), not juris et de
jure (conclusive), and can be rebutted only by showing proof of having
exercised and observed all the diligence of a good father of a family
(diligentissimipatrisfamilias).
REASON FOR LIABILITY OF A FATHER: necessary consequence of
the parental authority they exercise over their children which imposes upon
the parents the duty of supporting them, keeping them in their company,
educating them and instructing them in proportion to their means, while on
the other hand, gives them the right to correct and punish them in
moderation.
***Civil Liability under Article 2180 is NOT Respondeat Superior but
PATER FAMILIAS which bases the liability of the father ultimately on his
own negligence and not of his minor son, and if an injury is caused by the
fault/negligence of his minor son, the law presumes that there was
negligence on the part of his father
PRESUMPTION ON THE NEGLIGENCE OF THE EMPLOYER
GENERAL RULE:Whenever an employee’s negligence causes damage or
injury to another, there instantly arises a presumption juristantum that the
employer failed to exercise diligentissimipatris families in the selection or
supervision of his employee.This liability of the employer is primary and
direct.
EXCEPTION: REGISTERED OWNER RULE
The person who is the registered owner of a vehicle is liable for any
damages caused by the negligent operation of the vehicle although the
driver is not his agent or employee.
RATIONALE FOR HOLDING REGISTERED OWNER
VICARIOUSLY LIABLE: The main aim of motor vehicle registration is
to identify the owner so that if any accident happens, or that any damage or
injury is caused by the vehicle on the public highways, responsibility
therefor can be fixed on a definite individual, the registered owner.
Instances are numerous where vehicles running on public highways caused
accidents or injuries to pedestrians or other vehicles without positive
identification of the owner or drivers, or with very scant means of
identification. It is to forestall these circumstances, so inconvenient or
prejudicial to the public, that the motor vehicle registration is primarily
ordained, in the interest of the
determination of persons responsible for damages or injuries caused on
public highways.
***However, An owner of a vehicle cannot be held liable for an accident
involving the said vehicle if the same was driven without his consent or
knowledge and by a person not employed by him.
WHY IS THERE PRESEUMPTION OF NEGLIGENCE ON THE
EMPLOYER?
THERE IS A NECESSITY – for the safety of the public. It is almost
impossible to prove the negligence of the employer, so in the spirit of
fairness and safety of the public, there is a presumption of negligence on the
part of the employer.
***To successfully claim for damages, SUE BOTH THE EMPLOYEE
AND EMPLOYER; Employer is presumed to be negligent upon proof of
negligence on the part of the employee.
LIABILITY OF THE STATE:
Two types: Governmental functions & Proprietary functions (there is a need
to determine if government is functioning as GOVERNMENTAL OR
PROPRIETARY)
***GOVERNMENTAL FUNCTIONS – NEVER LIABLE FOR
QUASI-DELICT
 If it is inherent in the functions of the Government.
 However, any judgement against the Government cannot be
executed.
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*** If the driver of the government was given a non-official function,
commits tort – you can make the State liable for this, provided you can
prove that the driver was given a job outside of his job description by the
state.
***PROPRIETARY FUNCTION – LIABLE; PRIMARY AND
DIRECT
 It is not indispensable in government service.
 They descend to the level of ordinary people.
LIABILITY OF TEACHERS
GENERAL RULE: Where the school is academic rather than technical or
vocational in nature, responsibility for the tort committed by the student will
attach to the teacher in charge of such student.
EXCEPTION: In the case of establishments of arts and trades, it is the
head thereof, and only he, who shall be held liable as an exception to the
general rule. In other words, TEACHERS IN GENERAL SHALL BE
LIABLE FOR THE ACTS OF THEIR STUDENTS EXCEPT WHERE
THE SCHOOL IS TECHNICAL IN NATURE, IN WHICH CASE IT
IS THE HEAD THEREOF WHO SHALL BE ANSWERABLE.
WHY ARE THEY LIABLE?
*** They are acting in loco parentis (in place of parents) and they are called
upon to exercise reasonable supervision over the conduct of the child.
ARTICLE 2181: REIMBURSEMENT
 Whoever pays for the damage caused by his dependents or employees may
recover from the latter what he has paid or delivered in satisfaction of the
claim.
***The employer can pay for the damages, and later reimburse from the
employee.
***However, the employer cannot automatically deduct the money from the
salary of the employee, written consent of the employee is essential for
deduction.
***If the employee won’t sign, don’t force him. It is tantamount to duress.
Ergo, no consent.
***REMEDY: sue your employee for collection of money (collection suit)
***Conduct an investigation on the employee on his culpability, this is
sufficient for administrative suit.
ARTICLE 2183 – DAMAGES CAUSED BY ANIMALS
The POSSESSOR OF AN ANIMAL or whoever may make use of
the same is responsible for the damage which it may cause, ALTHOUGH
IT MAY ESCAPE OR BE LOST.
This responsibility shall cease only in case the damage should come
from FORCE MAJEURE OR FROM THE FAULT OF THE PERSON
WHO HAS SUFFERED DAMAGE. 
ARTICLE 2184:
IN MOTOR VEHICLE MISHAPS, the owner is SOLIDARILY
LIABLE WITH HIS DRIVER, if the former, who was in the vehicle,
could have, by the use of the due diligence, prevented the misfortune. It
is disputably presumed that a driver was negligent, if he had been found
guilty of reckless driving or violating traffic regulations at least twice within
the next preceding two months.
If the OWNER WAS NOT IN THE MOTOR VEHICLE, the provisions
of ARTICLE 2180 ARE APPLICABLE.
***If your driver hits a pedestrian because of tort, you are automatically
solidarily liable with your driver.
DEFENSE: exercise diligence to prevent the danger
ARTICLE 2185: PRESUMPTION WHEN DRIVER IS VIOLATING
TRAFFIC REGULATION
Unless there is proof to the contrary, it is presumed that a person driving a
motor vehicle has been negligent if at the time of the mishap, he was
violating any traffic regulation. 
***Proof of traffic violation is REQUIRED;
***When you have committed a traffic violation, you are
AUTOMATICALLY PRESUMED TO BE NEGLIGENT. Pedestrian
does not need to prove your negligence, it is enough that there is injury.
***Burden of proof shifts on to the driver. (prove that you are not violating
a traffic regulation);
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***REMEDY: almost impossible to dispute.
ARTICLE 2187 – LIABILITY OF MANUFACTURERS
 Manufacturers and processors of foodstuffs, drinks, toilet articles
and similar goods shall be liable for death or injuries caused by any noxious
or harmful substances used, although no contractual relation exists between
them and the consumers. (n)
ARTICLE 2188 – PRESUMPTION OF NEGLIGENCE BECAUSE OF
THE POSSESSION OF DANGEROUS WEAPONS OR
SUBSTANCES
There is PRIMA FACIE PRESUMPTION OF NEGLIGENCE
ON THE PART OF THE DEFENDANT if the death or injury results
from his possession of dangerous weapons or substances, such as firearms
and poison
ARTICLE 2189: LIABILITIES OF PROVINCES, CITIES AND
MUNICIPALITIES
Provinces, cities and municipalities shall be liable for damages for the death
of, or injuries suffered by, any PERSON BY REASON OF THE
DEFECTIVE CONDITION OF ROADS, STREETS, BRIDGES,
PUBLIC BUILDINGS, AND OTHER PUBLIC WORKS UNDER
THEIR CONTROL OR SUPERVISION.  person suffering damages may proceed only against the engineer or
*** It is not even necessary for the defective road or street to belong to the
province, city or municipality for liability to attach. The article only
requires that either control or supervision is exercised over the defective
road or street;
***It is necessary that there must be injury or death;
ARTICLE 2190 – LIABILITY OF PROPRIETOR IF A BUILDING
OR STRUCTURE COLLAPSES
The proprietor of a building or structure is responsible for the
damages resulting from its total or partial collapse, if it should be due to the
lack of necessary repairs.
ARTICLE 2191 – OTHER LIABILITES OF PROPRIETORS OF
BUILDINGS OR STRUCTURE
Proprietors shall also be responsible for damages caused:
(1) By the explosion of machinery which has not been taken care of
with due diligence, and the inflammation of explosive substances
which have not been kept in a safe and adequate place;
(2) By excessive smoke, which may be harmful to persons or
property;
(3) By the falling of trees situated at or near highways or lanes, if
not caused by force majeure;
(4) By emanations from tubes, canals, sewers or deposits of
infectious matter, constructed without precautions suitable to the
place.
ARTICLE 2192 – RULE IF THE CAUSE IS A CONSTRUCTION
DEFECT
 If damage referred to in the two preceding articles should be the
result of any defect in the construction mentioned in article 1723, the third
architect or contractor in accordance with said article, within the period
therein fixed.
***ARTICLE 1723 provides: The engineer or architect
who drew up the plans and specifications for a building is liable for
damages if within fifteen years from the completion of the
structure, the same should collapse by reason of a defect in those
plans and specifications, or due to the defects in the ground. The
contractor is likewise responsible for the damages if the edifice
falls, within the same period, on account of defects in the
construction or the use of materials of inferior quality furnished
by him, or due to any violation of the terms of the contract. If the
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engineer or architect supervises the construction, he shall be
solidarily liable with the contractor.
Acceptance of the building, after completion, does not imply
waiver of any of the cause of action by reason of any defect
mentioned in the preceding paragraph.
The ACTION MUST BE BROUGHT WITHIN TEN
YEARS following the collapse of the building
ARTICLE 2193: LIABILITY IN CASE OF FALLING OBJECT
The head of a family that lives in a building or a part thereof, is responsible
for damages caused by things thrown or falling from the same.
*** The liability under Art 2193 is ABSOLUTE and does not indicate a
presumption or admit proof of care. The term head of the family is not
limited to the owner of the building and it may even include the lessee
thereof.
ARTICLE 2194: SOLIDARY LAIBILITY
The responsibility of two or more persons who are liable for quasi-delict is
solidary.  DAMAGES
ON MEDICAL NEGLIGENCE:
Medical negligence is a particular form of negligence which consists in the
failure of a physician or surgeon to apply to his practice of medicine that
degree of care and skill which is ordinarily employed by the profession
generally, under similar conditions, and in like surrounding circumstances
(Reyes v. Sisters of Mercy Hospital, G.R. No. 130547, October 3, 2000).
PROOF OF NEGLIGENCE
In order to successfully pursue such a claim, a patient must prove:
1. That the physician or surgeon either failed to do something which a
reasonably prudent physician or surgeon would have done; or
2. That he or she did something that a reasonably prudent physician or
surgeon would not have done, and that the failure or action caused injury to
the patient (Reyes v. Sisters of Mercy Hospital, G.R. No. 130547. October
3, 2000).
DOCTRINE OF CAPTAIN OF THE SHIP
The surgeon is likened to a ship captain who must not only be responsible
for the safety of the crew but also of the passengers of the vessel. The head
surgeon is made responsible for everything that goes wrong within the four
corners of the operating room. It enunciates the liability of the surgeon not
only for the wrongful acts of those who are under his physical control but
also those wherein he has extension of control (Ramos v. CA, G.R. No.
124354, December 29, 1999).
EXPERT WITNESSES
GENERAL RULE: Expert medical testimony is relied upon in malpractice
suits to prove that a physician has done a negligent act or that he has
deviated from the standard medical procedure.
EXCEPTION: When the doctrine of RES IPSA LOQUITUR is availed
by the plaintiff, the need for expert medical testimony is dispensed with
because the injury itself provides the proof of negligence. (Ramos v. CA,
G.R. No. 124354, December 29, 1999)
DAMAGES V. 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 compensation awarded for the damage suffered. There
can be damage without injury in those instances in which the loss or harm
was not the result of a violation of a legal duty.
Example: DAMNUM ABSQUE INJURIA
PURPOSE OF THE LAW ON DAMAGES:
Intended to repair the damages done by putting the plaintiff in the same
position, as far as pecuniary compensation can do, that he would be, had the
damage not been inflicted and the wrong not
Committed.
***All provisions on damages are applicable to all sources of obligation;
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ARTICLE 2197: KINDS OF DAMAGES (MENTAL) ***It must be properly alleged in the complaint, otherwise it will
 Moral; become void:
 Exemplary or corrective; PURPOSE IN AWARDING ACTUAL DAMAGES: Repair the wrong
 Nominal; that has been done, to compensate for the injury inflicted, and not to impose
 Temperate or moderate; penalty.
 Actual or Compensatory; EVIDENCE OF ACTUAL DAMAGE
 Liquidated Actual or compensatory damages cannot be presumed, but must be proved
***Proof of pecuniary loss is necessary to successfully recover actual with reasonable degree of certainty. The Court cannot rely on speculation,
damages from the defendant; conjecture or guesswork as to the fact and amount of damages, but must
***No proof, however, is necessary for moral, nominal, temperate, depend upon competent proof that they have been suffered and on evidence
liquidated/exemplary damages; of the actual amount; It must be proved with CERTAINTY.
***Assessment of such damages, except liquidated, is left to the discretion
of the court, according to the circumstances of such case.
CIVIL INDEMNITY EX DELICTO VS. ACTUAL OR
ACTUAL OR COMPENSATORY DAMAGES COMPENSATORY DAMAGES
ARTICLE 2199: Except as provided by law or by stipulation, one is ***Civil Indemnity can be awarded without need of further proof than the
entitled to an adequate compensation only for such pecuniary loss suffered fact of commission of the felony;
by him as he has duly proved. Such compensation is referred to as actual or ***Actual/Compensatory to be recoverable must additionally be established
compensatory damages. with reasonable degree of certainty.

ARTICLE 2200: Indemnification for damages shall comprehend not only
the value of the loss suffered, but also that of the profits which the obligee
failed to obtain.
KINDS OF ACTUAL OR COMPENSATORY DAMAGES
1. DAMNUNEMERGENS/DANOEMERGENTE (ACTUAL DAMAGES)
–All the natural and probable consequence of the act or omission
complained of, classified as one for the loss of what a person already
possesses.
2. LUCRUMCESSANS/LUCROCESANTE (COMPENSATORY
DAMAGES) – For failure to receive, as benefit, that which would have
pertained to him.
*** Both actual and compensatory damages can be granted at the same time
to the plaintiff as provided under Art. 2200. In other words, there are two
components to actual damages
ARTICLE 2201: IN CONTRACTS AND QUASI-CONTRACTS
 In CONTRACTS AND QUASI-CONTRACTS, the damages for which
the obligor who acted in good faith is liable shall be those that are the
natural and probable consequences of the breach of the obligation, and
which the parties have foreseen or could have reasonably foreseen at the
time the obligation was constituted.
In CASE OF FRAUD, BAD FAITH, MALICE OR WANTON
ATTITUDE, the obligor shall be responsible for all damages which may
be reasonably attributed to the non-performance of the obligation. 
ARTICLE 2202: IN CRIMES AND QUASI-DELICTS
In CRIMES AND QUASI-DELICTS, the defendant shall be liable for
all damages which are the natural and probable consequences of the act
or omission complained of. It is not necessary that such damages have
been foreseen or could have reasonably been foreseen by the defendant.

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CIVIL LAW REVIEWER
IS GOOD FAITH / BAD FAITH ESSENTIAL?
***In Crimes or Torts –
o Liable for ALL DAMAGES which is the natural and
probable consequence of the act. Regardless if it was
foreseen or unforeseen.
***In Contracts or Quasi-Contracts –
o IF IN GOOD FAITH, you may raise as defense that it was
unforeseen event, therefore, liable only for actual damages;
o IF IN BAD FAITH, liable for ALL DAMAGES, actual
and compensatory. If the victim can connect such damages to
the act/omission, obligor is liable.
ARTICLE 2203 - The PARTY SUFFERING LOSS OR INJURY must
exercise the diligence of a good father of a family to minimize the
damages resulting from the act or omission in question.
ARTICLE 2204 - In crimes, the damages to be adjudicated may be
respectively increased or lessened according to the aggravating or
mitigating circumstances.
ARTICLE 2205 - DAMAGES MAY BE RECOVERED:
(1) For loss or impairment of earning capacity in cases of
temporary or permanent personal injury;
(2) For injury to the plaintiff's business standing or commercial
credit.
ARTICLE 2206 – DAMAGES FOR DEATH
The AMOUNT OF DAMAGES FOR DEATH CAUSED BY A
CRIME OR QUASI-DELICT shall be at least three thousand pesos, even
though there may have been mitigating circumstances. In addition:
(1) The defendant shall be liable for the loss of the earning capacity
of the deceased, and the indemnity shall be paid to the heirs of the
latter; such indemnity shall in every case be assessed and awarded
by the court, unless the deceased on account of permanent
physical disability not caused by the defendant, had no earning
capacity at the time of his death;
(2) If the DECEASED WAS OBLIGED TO GIVE SUPPORT
according to the provisions of article 291, the recipient who is not an
heir called to the decedent's inheritance by the law of testate or
intestate succession, may demand support from the person causing
the death, for a period not exceeding five years, the exact duration to
be fixed by the court;
(3) The SPOUSE, LEGITIMATE AND ILLEGITIMATE
DESCENDANTS AND ASCENDANTS OF THE DECEASED
MAY DEMAND MORAL DAMAGES FOR MENTAL
ANGUISH BY REASON OF THE DEATH OF THE
DECEASED.
***Death Indemnity is now pegged at 50k minimum; However, the court
has the discretion to increase the amount of indemnity; but the award may
never be below the minimum;
FACTORS WHICH MAY BE CONSIDERED IN DETERMINING
THE AMOUNT:
1. Life Expectancy and Consequent loss of earning capacity
a. State of Health; Habit of the Deceased, etc.
2. Pecuniary loss, Loss of Support and Service;
3. Moral and Mental Suffering
ARTICLE 2207 – SUBROGATION OF INSURER
If the plaintiff's property has been insured, and he has received
indemnity from the insurance company for the injury or loss arising out of
the wrong or breach of contract complained of, the INSURANCE
COMPANY SHALL BE SUBROGATED TO THE RIGHTS OF THE
INSURED AGAINST THE WRONGDOER OR THE PERSON WHO
HAS VIOLATED THE CONTRACT.
If the amount paid by the insurance company does not fully
cover the injury or loss, the aggrieved party shall be entitled to
recover the deficiency from the person causing the loss or injury.
PNOTES
CIVIL LAW REVIEWER
***Subrogation under Obligations and Contracts is different with
2207, as the latter is automatic upon payment of insurance company;
ARTICLE 2208 : ATTORNEY’S FEES – IMPORTANTERS (LED
MUG DRAWS)
In the absence of stipulation, attorney's fees and expenses of
litigation, other than judicial costs, cannot be recovered, except:
(1) In actions for Legal support;
(2) When Exemplary damages are awarded;
(3) When the Defendant's act or omission has compelled the plaintiff
to litigate with third persons or to incur expenses to protect his
interest;
(4) In criminal cases of Malicious prosecution against the plaintiff;
(5) In case of a clearly Unfounded civil action or proceeding against
the plaintiff;
(6) Where the defendant acted in Gross and evident bad faith in
refusing to satisfy the plaintiff's plainly valid, just and demandable
claim;
(7) When at least Double judicial costs are awarded;
(8) In actions for the Recovery of wages of household helpers,
laborers and skilled workers;
(9) In Any other case where the court deems it just and equitable
that attorney's fees and expenses of litigation should be recovered.
(10) In actions for indemnity under Workmen's compensation and
employer's liability laws;
(11) In a Separate civil action to recover civil liability arising from a
crime;
In all cases, the attorney's fees and expenses of litigation must be
reasonable.
GENERAL RULE: Attorney’s fees is not automatically awarded
EXECEPTION: When one of the instances provided by 2208 is present;
***Grant of Attorney’s fees as part of damages is the exception rather than
the rule as counsel’s fees are not awarded everytime a party prevails in a
suit;
***It is a settled rule that attorneys fees shall not be recovered as cost
where the party’s persistence in litigation is based on his mistaken belief in
the righteousness of his case;
***Appealing as a PAUPER LITIGANT merely exempts a pauper litigant
from the payment of legal fees and from the filing of appeal bond, printed
record and printed brief, but DOES NOT EXEMPT HIM FROM PAYING
ATTORNEY’S FEES. (CRISTOBAL V. ECC& GSIS)
***ATTORNEY’S FEES – not given to the attorney of the winning party
but given to the winning party.
FACTORS IN DETERMINING THE AWARD OF ATTORNEY’S
FEES: (BORCENA V. IAC) A-R-A-S-P-R-W
1. Amount and character of the services rendered;
2. Responsibility imposed;
3. Amount of money or the value of the property affected by
the controversy, or involved in the employment;
4. Skill and experience called for in the performance of the service;
5. Professional standing of the attorney;
6. Results secured; and
7. Whether or not the fee is contingent or absolute,
***Attorney’s fees are in the nature of actual damages, which must be duly
proved. Petitioner must show with convincing evidence that it incurred
attorney’s fees.
***A claim for attorney’s fees which arises out of the filing of a complaint
partakes of the nature of a compulsory counterclaim.
Therefore, if it is not pleaded or prayed for in the answer to the complaint, it
is barred.
RULES ON MONETARY OBLIGATIONS – (ARTICLE 2209- 2215)
1. When the debtor is in DEFAULT; give the indemnity (other then
interest) agreed upon;
2. If there is no stipulation as to the amount of indemnity, give the
interest agreed upon;
3. If there is no stipulation as to the amount of interest; give the legal
interest, which is at 6% per annum
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CIVIL LAW REVIEWER
***WHEN AN OBLIGATION IS BREACHED; DAMAGES may be
awarded;
FROM WHAT MOMENT INTEREST RUNS: Interest runs from
DEFAULT (after a JUDICIAL OR EXTRAJUDICIAL DEMAND,
EXCEPT when demand is not essential to put debtor in default)
***If there is no evidence of an extrajudicial demand, the period starts from
the judicial demand, which is naturally is in the form of filing a complaint
in court.
***COMPOUNDED INTEREST – penalty awarded aside from interest;
Payment of interest as penalty is a necessary consequence of petitioner’s
failure to exercise diligence in the discharge of its obligation under the
contracts. And even in the absence of a stipulation on interest, under Art.
2209, respondent would still be entitled to recover the balance of the
contract price with interest.
INTEREST ON THE FF CIRCUMTANCES WILL RUN FROM:
 BREACH OF CONTRACT – from the date the judgment of the
trial court rendered judgment;
 CRIMES AND QUASI-DELICTS – from the date of judgment of
the trial court rendered judgment;
***Contributory negligence of the plaintiff shall reduce the damages
that he may recover;
 UNLIQUIDATED DAMAGES – When the judge already
determines the amount; then the interest starts to run
***If you are not disputing the amount extrajudicially demanded,
then the interest will run on the day extrajudicial demand was made.
***If there is Unliquidated Damages, the award of interest will only start to
run after final judgment is rendered; FINAL JUDGMENT means that the
decision of the court is done and that the court already decided the merits of
the case despite appeal;
INSTANCES WHERE AWARD OF DAMAGES IN CONTRACTS,
QUASI-CONTRACTS AND QUASI-DELICTS MAY BE
MITIGATED:
(1) That the plaintiff himself has contravened the terms of the contract;
(2) That the plaintiff has derived some benefit as a result of the contract;
(3) In cases where exemplary damages are to be awarded, that the defendant
acted upon the advice of counsel;
(4) That the loss would have resulted in any event;
(5) That since the filing of the action, the defendant has done his best to
lessen the plaintiff's loss or injury.
MORAL DAMAGES
ARTICLE 2217: WHAT CONSTITUTE MORAL DAMAGES
  Moral damages include physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings, moral shock,
social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages may be
recovered if they are the proximate result of the defendant's wrongful act for
omission.
REQUISITES OF MORAL DAMAGES:
1. There is an injury whether physical, mental or psychological clearly
sustained by claimant;
2. There is culpable act or omission factually established;
3. The wrongful act/omission of the defendant is the proximate cause
of the injury sustained by the claimant;
4. Award of damages is predicated on any of the ff. cases stated in
Article 2219
PURPOSE: To enable the injured party to obtain means, diversion or
amusement that will alleviate the moral suffering he has undergone, by
reason of defendant’s culpable action.
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CIVIL LAW REVIEWER
NATURE OF MORAL DAMAGES: It is in the form of GRANTS, it is
not punitive or corrective in nature, calculated to compensate the claimant
for the injury suffered;
***There is no need to prove for actual damages for your mental anguish or
serious anxiety; you only need to prove that the proximate cause of your
anxiety, anguish, etc. is the result of defendant’s wrongful act or omission.
HOW DO YOU PROVE? Take the witness stand;
WHO BEST CAN TESTIFY? The person injured;
HOW MUCH? – depends on the act
MANNER OF DETERMINATION:
GENERAL RULE: Factual Basis must be alleged; aside from the need for
the claimant to satisfactorily prove the existence of the factual basis of the
damages, it is also necessary to prove its causal relation to the defendant’s
act
EXCEPTION: CRIMINAL CASES;
COURTS GIVEN DISCRETION TO DETERMINE MORAL
DAMAGES:
 TRIAL COURTS are given the discretion to determine moral
damages;
 CA can only modify or change the amount when they are palpably
and scandalously excessive;
CAN A CORPORATION BE AWARDED MORAL DAMAGES?
Generally, NO! Juridical person is generally not entitled to moral damages
because unlike a natural person, it cannot experience physical suffering or
such sentiments as wounded feelings, serious anxiety, mental anguish or
moral shock.
EXCEPTION: Corporation may have a good reputation which if
besmirched, may also be a ground for the award of moral damages.
LEGAL BASIS: ARTICLE 2219; PAR. 7 (Libel, Slander or
any other form of defamation)– the law did not distinguish;
WHAT DO YOU NEED TO PROVE TO BE ABLE TO QUALIFY
FOR MORAL DAMAGES?
1. There must be wrongful act/omission;
2. Should be the proximate result of the wrongful act/omission;
WHAT ARE THE OTHER INSTANCES THAT MORAL DAMAGES
MAY BE RECOVERED: (ARTICLE 2219 - IMPORTANTERS)
SAQAI-MALIA
(1) Seduction, abduction, rape, or other lascivious acts;
(2) A criminal offense resulting in physical injuries;
(3) Quasi-delicts causing physical injuries;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Malicious prosecution;
(7) Acts mentioned in article 309;
(8) Libel, slander or any other form of defamation;
(9) Illegal search;
(10) Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34,
and 35.
The PARENTS OF THE FEMALE seduced, abducted, raped, or
abused, referred to in No. 3 of this article, MAY ALSO RECOVER
MORAL DAMAGES.
The SPOUSE, DESCENDANTS, ASCENDANTS, AND BROTHERS
AND SISTERS may bring the action mentioned in No. 9 (ACTS
MENTIONED IN ARTICLE 309) of this article, in the order named.
ARTICLE 309 OF THE NCC PROVIDES: Any person who
shows disrespect to the dead, or wrongfully interferes with a funeral shall be
liable to the family of the deceased for damages, material and moral.
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CIVIL LAW REVIEWER
***To allege MALICIOUS PROSECUTION as a way to recover Moral
Damages, the victim must show that the suit was made to harass only the
person; further, not all dismissed prosecution entitles the other party to file
for malicious prosecution, there must be UNFOUNDED CAUSE OF
ACTION;
NOMINAL DAMAGES
Nominal damages are adjudicated in order that a RIGHT OF THE
PLAINTIFF, WHICH HAS BEEN VIOLATED or invaded by the
defendant, MAY BE VINDICATED OR RECOGNIZED, and NOT
FOR THE PURPOSE OF INDEMNIFYING THE PLAINTIFF FOR
ANY LOSS SUFFERED BY HIM. (ARTICLE 2221)
***Award is given not to penalize; as maybe it is something that is not
proven but the court believed that there is a RIGHT VIOLATED;
TEMPERATE DAMAGES
Temperate or moderate damages, which are MORE THAN
NOMINAL BUT LESS THAN COMPENSATORY DAMAGES, may
be recovered when the court finds that some pecuniary loss has been
suffered but its amount cannot, from the nature of the case, be
provided with certainty. (ARTICLE 2224)
***ensures that something is received by the plaintiff;
***this type of damages is awarded when claiming actual damages but you
were not able to prove it/there is insufficiency of evidence; then by the
discretion of the court it is given as an indemnity to penalize but the proof
presented is not enough to warrant actual damages;
***Nominal and Temperate IS NOT USUALLY AWARDED;
LIQUIDATED DAMAGES
Those agreed upon by the parties to a contract, to be paid in case of
breach thereof. (ARTICLE 2226)
***If it is INIQUITOUS OR UNCONSCIONABLE, court shall equitably
reduced it (ARTICLE 2227)
*** When the breach of the contract committed by the defendant is not
the one contemplated by the parties in agreeing upon the liquidated
damages, the law shall determine the measure of damages, and not the
stipulation. (ARICLE 2228)
EXEMPLARY DAMAGES
Exemplary or corrective damages are IMPOSED, BY WAY OF
EXAMPLE OR CORRECTION FOR THE PUBLIC GOOD, in
addition to the moral, temperate, liquidated or compensatory damages.
(ARTICLE 2229)
***Awarded when wrongful act of defendant is characterized by wanton,
fraudulent, reckless, oppressive or malevolent manner; it shows bad faith
AWARD OF EXEMPLARY DAMAGES IN THE FF CASES MAY BE
IMPOSED WHEN:
***IN CRIMINAL OFFENSES – when the crime was committed with
one or more aggravating circumstances.
***IN CONTRACTS AND QUASI-CONTRACTS – when defendant
acted in wanton, fraudulent, reckless, oppressive or malevolent manner;
***IN QUASI- DELICTS – when there is gross negligence
***You need not prove exemplary damages; It is awarded on top of moral
damages, it cannot be awarded alone without other type of damages;
***It is not recovered as a matter of right;
***Waiver of Exemplary Damages is void;
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CIVIL LAW REVIEWER
***Exemplary Damages is penal in character; the motive authorizing their o Original Land Registration (13 Steps)
infliction will not be imputed by presumption to the principal when the act o Cadastral Land Registration
is committed by an agent or servant. Original land registration is at the same time judicial proceeding.
***Administrative proceedings – patent – title through DENR. And this
***When Exemplary damages are granted, nominal damages cannot be
patents, they have the same effect as a torrens system of registration.
given;
What is the difference?
LAND, TITLE AND DEEDS -The problem with patent is that is that it is always imposed with some
limitations. If you are an owner of a patent title, you will see in your
Four Classifications of Land certificate the restrictions.
o Forest or Timber Land
o Agricultural Land Land Title - is the evidence of the owner’s right or extent of interest, by
o National Parks which he can maintain control and as a rule assert right to exclusive
o Mineral Land possession and enjoyment of property.
Among the 4, only the public agricultural land can be registered. Deed - is the instrument in writing by which any real estate or interest
therein is created, alienated, mortgaged, or assigned, or by which title to any
WHY IT IS IMPORTANT? real estate may be affected in law or equity.
-Since we are discussing here the registration of real property, it Registration – It is an act of recording.
presupposes that Land Registration - is a judicial or administrative proceeding whereby a
the real property being referred to here are public agricultural land. person’s claim over a particular land is determined and confirmed or
recognized so that such land and the ownership thereof may be recorded in
Registration- is a not mode of acquiring ownership of a thing. Therefor, it a public registry.
erases the wrong understanding/misconception/wrong notion that a person
is not an owner of a thing if it is not registered under his name. WHY DO WE NEED TO RECORD?
-It serves as constructive notice.
System of Registration Take note: a deed of sale between a seller and a buyer, it is valid between
o Spanish Mortgage Law the two of them (in personam), but as to third person who is not privy to
o Torrens System of registration that transaction, he is not charged of knowledge.
o System of registration of unregistered land A third person can only be considered knowledgeable of that
PD No. 1529, or the Property Registration Decree, this was made to transaction when:
simplify the system of registration, the torrens systems of registration. 1. Actual Knowledge - He has been personally notified of that transaction;
It is IMPORTANT to know the constitutional provisions, which is the basis 2. Constructive Knowledge - There has been recording (registration).
of the registrations. No land should be registered if it is contrary to the Why do we need constructive notice?
provision of the constitution. - To give notice to the whole world (in rem)
- we register land in order to make such interest binding to the whole world.
2 kinds of registrations Is registration a mode of acquiring ownership?
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CIVIL LAW REVIEWER
• NO. It is not a mode of acquiring ownership over the land. It is just a
process of confirming the interest or ownership acquired through modes of
acquisition specified by law.
MODES OF ACQUIRING OWNERSHIP
1. Acquisition by Public Grants – grants by the government originating
from the Spanish period (e.g. Spanish grants or Titulo Royale)
2. Acquisition by Private Grants – transfer of ownership from a private
owner to another (e.g. Absolute Sale)
3. Prescription/Adverse Possession – a person must have Open,
Continuous, Exclusive, and Notorious (OCEN) possession of a land in the
concept of an Owner
Ordinary Prescription – requires possession in good faith and just title for
10 years.
Extraordinary Prescription – ownership and other real rights over
immovable property are acquired through uninterrupted adverse possession
thereof without the need of title and good faith.
➢ Public Land: governed by the provisions of Public Land Act
➢ Private Land: governed by the provisions of the Civil Code on
Acquisitive
Prescription (Art. 1134, 1137)
4. Accretion – acquisition of land deposits due to natural phenomenon
which is through continuous and gradual accumulation
5. Reclamation – filling of submerged land by deliberate act and reclaiming
title thereto.
6. Involuntary Alienation – requires no consent of the owner (e.g.
Expropriation, foreclosure of mortgage)
7. Descent or Devise – by succession. Inheritance.
8. Emancipation Patents – issuance of patents to the farmers who are
actually tilling the land to address the hapless plight of Filipino farmers.
Regalian Doctrine
General Rule – It embodies the concept that all lands of the public domain
and all other natural resources are owned by the State.
Provided in Section 2, Article XII of the 1987 Constitution:
“All lands of the public domain, waters, minerals, coal, petroleum, and
other mineral oils, all forces of potential energy, fisheries, forests or timber,
wildlife, flora and fauna and other natural resources are owned by the
State.”
Cruz vs. Sec of Environment and Natural Resources
Under the IPRA, ancestral lands and ancestral domains are not
deemed part of the lands of the public domain but are private lands
belonging to indigenous cultural communities or indigenous peoples
(ICCs/IPs) who have actually occupied, possessed and utilized their
territories under claim of ownership since time and immemorial. The Court
thus laid down the principle of a certain title held
(a) as far back as testimony or memory went, and (b) under a claim of
private ownership as presumed to “never have been public land.”
Petitioners challenged the constitutionality of the IPRA on the
ground that it amounts to an unlawful deprivation of the State’s ownership
over lands of the public domain and all other natural resources therein. The
votes of the Justices were equally divided (7 to 7)and since the necessary
majority was not obtained, the petition was dismissed, and the validity of
the law was, accordingly, deemed upheld.
Justice Puno described the IPRA as a novel piece of legislation.
Ownership over lands with native title still remains to the State; however,
indigenous people are given preference for the utilization and exploitation
of lands which are part of the ancestral domains
Difference of ancestral domain and ancestral lands
Ancestral domains – refer to all areas generally belonging to ICCs/IPs
comprising lands, inland waters, coastal areas, and natural resources therein,
held under a claim of ownership, occupied or possessed by ICCs/IPs,
themselves or through their ancestors, communally or individually since
time immemorial, continuously to the present except when interrupted by
war, force majeure or displacement by force, deceit, stealth or as a
consequence of government projects or any other voluntary dealings entered
into by government and private individuals, corporations, and which are
necessary to ensure their economic, social and cultural welfare. It shall
include ancestral land, forests, pasture, residential, agricultural, and other
lands individually owned whether alienable and disposable or otherwise,
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CIVIL LAW REVIEWER
hunting grounds, burial grounds, worship areas, bodies of water, mineral
and other natural resources, and lands which may no longer be exclusively
occupied by ICCs/IPs but from which their traditionally had access to for
their subsistence and traditional activities, particularly the home ranges of
ICCs/IPs who are still nomadic and/or shifting cultivators.
Ancestral Lands - refers to land occupied, possessed and utilized by
individuals, families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-in-interest, under
claims of individual or traditional group ownership, continuously, to the
present except when interrupted by war, force majeure or displacement by
force, deceit, stealth, or as a consequence of government projects and other
voluntary dealings entered into by government and private
individuals/corporations, including, but not limited to, residential lots, rice
terraces or paddies, private forests, swidden farms and tree lots;
REGISTRATION
Purpose: to announce to the whole world of the recorded transaction. To
inform and bind 3rd parties. Since registration is not a mode of acquiring
ownership, hence, the contract between parties without registration is still
binding, but only between parties and may not affect third person.
Generally, the transaction between parties is valid.
DIRECTOR LAND vs CA
The classification of public lands is an exclusive prerogative of the
executive department and not of the courts. The cadastral survey of a
municipality does not render all lands comprised therein automatically
released as alienable. A survey made in a cadastral proceeding merely
identifies each lot preparatory to a judicial proceeding for adjudication of
title to any of the lands upon claim of interested parties.
TAKE NOTE: before any land may be declassified from forest group and
converted into alienable or disposable land for agricultural or other
purposes, there must be a positive act from the government, official
proclamation declassifying the said group of land.
Director of Lands and Director of Forestry Development vs CA
If a land is considered to be alienable and disposable, it has to be
classified. It requires a positive act, an official declaration/proclamation.
And this positive act should not come from the court; it should be from the
executive department.
WHAT IS THE REMEDY OF THE APPLICANT?
-to have it reclassified, only then after it has been classified as alienable and
disposable, only then can the land be legally and properly registered.
Note: that even if a person is in possession of a property in an open,
continuous, exclusive and notorious for a long time, it will not be converted
into a private ownership if it not classified as agricultural land.
REPUBLIC VS LEE
There should be evidence of the OCEN possession of the land that
led to the acquisition of title over the land. Mere testimony is not a valid
evidence of ownership. Within the period when prescription runs, it must
be shown that there is an actual exercise of ownership over the land, ACTS
OF DOMINION. There should be a well-nigh incontrovertible evidence.
Acts of ownership cannot be presumed.
DIRECTOR OF LANDS MANAGEMENT BUREAU vs CA
Open, continuous, exclusive and notorious possession and
occupation of a public agricultural land for 30 years or more will
automatically convert this land to private land. Only to PUBLIC
AGRICULTURAL LAND.
Well-entrenched is the rule that the burden of proof in land
registration cases rests on the applicant who must show clear, positive and
convincing evidence that his alleged possession and occupation were of the
nature and duration required by law. Bare allegations without more; do not
amount to preponderant evidence that would shift the burden to the
oppositor.
-Allowing a person to stay in the land for 30 years presupposes that the land
is not anymore needed by the State.
GARCIA VS CA
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CIVIL LAW REVIEWER
What is the effect of Registration and Publication to third persons?
• The mere fact that titles have issued in favor of one person, there is a
Constructive Notice to third persons. This is in the nature of an in rem
proceeding. This is therefore binding to the whole world.
GONZALES VS CA
Art. 749, Civil Code, In order that the donation of an immovable may be
valid, it must be made in public document, specifying therein the property
donated and the value of the charges which the donee must satisfy. While it
is true, that there is a donation between the parties, it will not however bind
the third party, not having registered the donation.
System of Registration
o Spanish Mortgage Law
o Torrens System of registration
o System of registration of unregistered land
Spanish Mortgage law
PD No. 892, dates February 16, 1976 states that the system of
registration under the Spanish Mortgage Law is discontinues and all lands
recorded under the said system which are not yet covered by the Torrens
title shall be considered as unregistered lands. A similar provision is found
in Section 2 of PD 1529. PD No. 892 has outlawed all Spanish titles,
including possessory information titles, unless they were authenticated in
appropriate registration proceedings before August 16, 1976.
By express provision of Section 3 of PD No. 892, Spanish titles may
no longer be used as evidence of land ownership in all registration
proceedings. The reason for this is the proliferation of dubious Spanish titles
which have raised conflicting claims of ownership and tended to destabilize
the Torrens system of registration.
System of Registration of Unregistered Land Act No. 3344
SEC. 194. Recording of Instruments or Deeds Relating to Real
Estate not Registered Under Act Numbered Four Hundred and Ninety-Six
or Under the Spanish Mortgage Law. — No instrument or deed
establishing, transmitting, acknowledging, modifying or extinguishing
rights with respect to real estate not registered under the provisions of
Act Numbered Four hundred and ninety-six, entitled 'The Land Registration
Act', and its amendments, or under the Spanish Mortgage Law, shall be
valid, except as between the parties thereto, until such instrument or deed
has been registered, in the manner hereinafter prescribed, in the office of the
register of deeds for the province or city where the real estate lies.
"It shall be the duty of the register of deeds for each province or city to
keep a day book and a register book for unregistered real estate, in
accordance with a form to be prepared by the Chief of the General Land
Registration Office, with the approval of the Secretary of Justice. The day
book shall contain the names of the parties, the nature of the instrument
or deed for which registration is requested, the hour and minute, date and
month of the year when the instrument was received. The register book
shall contain, among other particulars, the names, age, civil status, and
the residences of the parties interested in the act or contract registered
and in case of marriage, the name of the wife, or husband, as the case
may be, the character of the contract and its conditions, the nature of
each piece of land and its own improvements only, and not any other
kind of real estate or properties, its situation, boundaries, area in square
meters, whether or not the boundaries of the property are visible on the
land by means of monuments or otherwise, and in the affirmative case, in
what they consist; the permanent improvements existing on the property;
the page number of the assessment of each property in the year when
the entry is made, and the assessed value of the property for that year;
the notary or the officer who acknowledged, issued, or certified the
instrument or deed; the name of the person or persons who, according to
the instrument, are in present possession of each property; a note that the
land has not been registered under Act Numbered Four hundred and
ninety-six nor under the Spanish Mortgage Law; that the parties have
agreed to register said instrument under the provisions of this Act, and that
the original instrument has been filed in the office of the register of deeds,
indicating the file number, and that the duplicate has been delivered to
the person concerned; the exact year, month, day, hour, and minute
when the original of the instrument was received for registration, as stated
in the day book. It shall also be the duty of the register of deeds to keep
an index-book of persons and an index-book of estates, respectively, in
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CIVIL LAW REVIEWER
accordance with a form to be also prepared by the Chief of the General
Land Registration Office, with the approval of the Secretary of Justice.
"Upon presentation of any instrument or deed relating to real estate not
registered under Act Numbered Four hundred and ninety-six and its
amendments or under the Spanish Mortgage Law, which shall be
accompanied by as many duplicates as there are parties interested, it
shall be the duty of the register of deeds to ascertain whether said
instrument has all the requirements for proper registration. If the instrument
is sufficient and there is no legitimate objection thereto, or in case of there
having been one, if the same has been dismissed by final judgment of the
courts, and if there does not appear in the register any valid previous entry
that may be affected wholly or in part by the registration of the instrument
or deed presented, and if the case does not come under the prohibition
of section fourteen hundred and fifty-two of Act Numbered Twenty-seven
hundred and eleven, the register of deeds shall register the instrument in
the proper book. In case the instrument or deed presented has defects
preventing its registration, said register of deeds shall refuse to register it
until the defects have been removed, stating in writing his reasons for
refusing to record said instrument as requested. Any registration made
under this section shall be understood to be without prejudice to a third
party with a better right.
"The register of deeds shall be entitled to collect in advance as fees
for the services to be rendered by him in accordance with this Act, the same
fees established for similar services relating to instruments or deeds in
connection with real estate in section one hundred fourteen of Act
Numbered Four hundred ninety-six, entitled
"The Land Registration Act", as amended by Act Numbered Two
thousand eight hundred and sixty-six."
3 Laws consisting Torrens System of Registration of Commonwealth
Act No. 141 the present Public Land Act, was approved on November 7,
1936, following the passage of the 1935 Constitution. Contains a chapter on
judicial confirmation of imperfect or incomplete titles based on acquisitive
prescription.
Act No. 496 or the Land Registration Act, approved on
November 6, 1902 but became effective on January 1, 1903. It established
the Torrens system of registration in the country, and created a court called
“Court of Land Registration” which had exclusive jurisdiction over all
application of registration.
Act No. 2259 or the Cadastral Act, enacted on February 11, 1913.
The Act provides a system of compulsory registration requiring that title to
lands be settled and adjudicated in the public interest.
(Above laws are simplified by Presidential Decree No. 1529 or the Property
Registration Decree)
Torrens System of Registration
It is a system of registration of transactions with interest in land
whose declared object is, under governmental authority, to establish and
certify to the ownership of an absolute and indefeasible title to realty, and
simplify its transfer. The dominant principle of the Torrens system is that
the titles registered thereunder are indefeasible or as nearly so as it is
possible to make them. The Torrens system was adopted in this country
because it was believed to be the most effective measure to guarantee the
integrity of land titles and to perfect their indefeasibility once the claim of
ownership is established and recognized.
Advantages of the Torrens system of registration
1) To quiet title to land.
2) To accumulate in one document a precise and correct statement of the
exact status of the fee held by its owner;
3) To decree land title that shall be final, irrevocable and indisputable;
4) To decree land title which cannot be altered, modified, enlarged or
diminished except in some direct, and not collateral, proceeding;
5) To relieve the land of the burden of known and unknown claims;
6) To put a stop to any question as to the legality of the title;
7) To simplify ordinary dealings over registered land;
8) To afford protection against fraudulent transactions;
9) To restore the just value of land;
10) To minimize conflicting claims and stabilize land ownership.
Cannot be Collaterally attacked
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MAGAY vs ESTIANDAN
It is well-settled that a torrens title cannot be collaterally attacked.
The issue on the validity of the title can only in action expressly instituted
for that purpose. Even assuming that the land in question is still part of the
public domain, then the appellant is not the proper party to institute the
reversion of the land but it must be the Solicitor General in the name of the
Republic of the Philippines
It is Indefeasible
HEIRS OF BRUSAS VS CA
It is a fundamental principle in land registration that the certificate
of title serves as evidence of an indefeasible and incontrovertible title to the
property in favor of the person whose name appears therein. A title once
registered under the Torrens System cannot be defeated even by adverse,
open and notorious possession; neither can it be defeated by prescription. It
is notice to the whole world and as such all persons are bound by it and no
one can plead ignorance of the registration.
The real purpose of the Torrens System of land registration is to
quiet title to land and stop forever any question as to its legality. Once a title
is registered the owner may rest secure without the necessity of waiting in
the portals of the court, or sitting on the mirador de su casa, to avoid the
possibility of losing his land. Indeed, titles over lands under the Torrens
system should be given stability for on it greatly depends the stability of the
country's economy. Interest reipublicae ut sit finis litium. This does not
mean, however, that the landowner whose property has been wrongfully or
erroneously registered in anothers name is without remedy in law.
When a person obtains a certificate of title to a land belonging to another
and he has full knowledge of the rights of the true owner, he is considered
guilty of fraud. He may then be compelled to transfer the land to the
defrauded owner so long as the property has not passed to the hands of an
innocent purchaser for value.
LAHORA VS DAYANGHIRANG, JR
Even assuming arguendo, that there indeed exists a proper case
for cancellation of the patent for intrinsic fraud, the action for review of the
decree should have been filed before the one year period had elapsed.
Thereafter, the proper party to bring the action would only be the person
prejudiced by the alleged fraudulent act — the owner and grantor, and not
another applicant or claimant. Furthermore, the relief provided by the law in
such instance may be secured by the aggrieved party, not in another
registration, for land already registered in the name of a person cannot be
the subject of another registration, but in an appropriate action such as one
for reconveyance or reversion, or for damages in case the property has
passed into the hands of an innocent purchaser for value.
Constitutional and Statutory Provisions
Section 2, Article XII of the 1987 Constitution:
“All lands of the public domain, waters, minerals, coal, petroleum,
and other mineral oils, all forces of potential energy, fisheries, forests or
timber, wildlife, flora and fauna and other natural resources are owned by
the State. With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration, development, and
utilization of natural resources shall be under the full control and
supervision of the State. The State may directly undertake such activities, or
it may enter into co-production, joint venture, or production-sharing
agreements with Filipino citizens, or corporations or associations at least 60
per centum of whose capital is owned by such citizens. Such agreements
may be for a period not exceeding twenty-five years, renewable for not
more than twenty five years, and under such terms and conditions as may
provided by law. In cases of water rights for irrigation, water supply,
fisheries, or industrial uses other than the development of waterpower,
beneficial use may be the measure and limit of the grant.”
Article XII: Utilization, Exploitation, and Development shall be under
the authority
of the State (Regalian Doctrine)
➢ Any land maybe subject to utilization, exploitation and development
➢ Only agricultural lands may be alienated
• Can private corporations own agricultural lands?
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CIVIL LAW REVIEWER
➢ If the land is a private land.
➢ If the land is private in nature, a private corporation may own or alienate
the same so long as 60% of the shares are Filipino-owned.
➢ If the land is part of the public domain: No. Private corporations or
associations may hold alienable lands of the public domain only by lease of
an area not exceeding 1000 hectares, for a period not exceeding 25 years,
renewable for not more than 25 years. (Sec. 3, Art. XII of 1987
Constitution)
• Can any person own lands?
➢ General Rule: All lands are reserved to the Filipino people. Only Filipino
citizens may acquire lands. Aliens are not allowed to own lands.
➢ Exceptions:
✓ Hereditary succession (Sec. 7)
✓ Former natural-born citizens: Maximum Area of 1000 sqm (urban), or 1
Hectare (rural), for residential purposes (Sec. 8, as implemented by BP
185), as ruled in the case of Lapina case
➢ Investment Rights of Former Natural-born Filipino (Sec. 10, RA 8179)
✓ May be a transferee of a private land up to maximum area of 5000 sqm
(urban) or 3 hectares (rural), which can be used for business or other
purposes
• Can minors own lands?
➢ Yes. Minors and other persons with disability may apply for registration
through
their legal guardian. (New Civil Code)
✓ If the property is worth more than 2000php, his father or mother shall be
considered the guardian of the child’s property (Art. 326) and shall give a
bond
• Can land under mortgage be registered under the mortgagor’s name?
➢ Mortgagor can apply for the registration of the land upon the written
consent of the mortgagee
➢ In case the mortgagee refuses to give his consent, the application may be
allowed provided that the title be made subject to such mortgage which
shall be specified in the decree of registration
• Can a married woman apply for the registration of the land?
➢ She can only register the land with the written consent of the husband
unless the land to be registered is part of the paraphernal property.
• Can co-owners apply for the registration of the land?
➢ Yes, provided all the co-owners must apply
➢ The law does not allow or permit land held or owned jointly by two or
more persons to be separately registered with respect to the share of one co-
owner only
• Can a Filipino who is a non-resident apply for registration?
➢ Yes, provided that he shall file with his application an instrument in due
form appointing an agent or representative residing in the Philippines,
giving his full name and address, and shall therein agree that the service of
any legal process in the proceedings under or growing out of the application
made upon his agent or representative shall be of the same legal effect as if
made upon the applicant within the Philippines
➢ If the agent or representative dies, or leaves the Philippines, the applicant
shall forthwith make another appointment for the substitute, and, if he fails
to do so, the court may dismiss the application
STEPS IN REGISTERING A IMPERFECT TITLE OVER A
PARCEL OF LAND
1. Survey of the land by the Bureau of Lands or a duly licensed surveyor;
2. Preparation and filing of the application for registration by the applicant;
3. Setting of the date for the hearing of the application by the court;
4. Transmittal of the duplicate of the application and the date of initial
hearing together with all documents attached thereto by the Clerk of Court
to the Land Registration Authority;
5. Publication of notice of the filing of the application and date and place of
the hearing once in a newspaper of general circulation and once in the
Official Gazette;
6. Service of notice upon contiguous owners, occupants, and those known to
have interests in the property by the sheriff;
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7. Filing of the answer to the application by any person whether named in
the notice or not;
8. Hearing of the case by the court and the presentation of evidence;
9. Promulgation of the judgment by the court;
10. Issuance of an order by the court declaring the judgment final and
instructing the Land Registration Authority to issue the decree of
registration in accordance with Section 39 of P.D. No. 1529;
11. Entry of the decree of registration in the Land Registration Authority;
12. Sending of copy of the decree of registration to the corresponding
Registrar of Deeds by the Land Registration Authority;
13. Transcription of the decree of registration in the registration book and
the issuance of the owner’s duplicate certificate of the original certificate of
title to the applicant by the Registrar of Deeds upon payment of the
prescribed fees.
Allowable application and applicants
REPUBLIC VS HERBIETO
2 applicants, 1 petition, 2 parcels of land, 2 individual titles: misjoinder
Multiple applicants may file a single application only in case they
are co-owners. Instead of a single or joint application for registration, the
applicants should file separate application for their respective claims. While
an application may cover two or more parcels of land, it is allowed only
when the subject parcels belong to the same applicant or applicants (in case
the subject parcels of land are coowned) and are situated within the same
province.
NOTE: 2 persons may be allowed to apply for registration for 2 lots for a
civil petition if they will pray for co-ownership.
RULE:
• 2 petitioners, 1 petition, 2 parcels of land, 1 title: allowed
• 2 petitioners, 2 separate petitions, 2 separate lots: allowed
• 2 petitioners, 1 petition, 2 parcels of land, 2 titles (both names of the co-
owners are indicated in each title): allowed, provided they are co-owners
• 2 petitioners(not co-owner), 1 petition, 2 parcels of land, 2 individual
titles: NOT ALLOWED misjoinder (Republic vs Herbieto)
• 1 petitioner, 1 petition, several parcels of land, 1 title: allowed,
provided the application is consolidated
MERALCO VS CASTRO-BARTOLOME
This case involves the prohibition in section 11, Article XIV of the
Constitution that "no private coporation or associaiton may hold alienable
lands of the public domain except by lease not to exceed on ethousand
hectares in area". 1973 Constitution Dissenting opinion of Tihankee The
lands in question ceased, ipso jure, or by operation of law, to be lands of the
public domain upon completion of the statutory period of open, continuous,
exclusive, notorious and unchallenged possession thereof by the applicants'
predecessors-in-interest who were qualified natural persons and entitled to
registration by right of acquisitive prescription (30 years) under the
provisions of the Public Land Act. (Susi vs Razon)
DIRECTOR OF LANDS VS IAC AND ACME PLYWOOD CO. INC
Alienable public land held by a possessor, personally or through his
predecessors-in-interest, openly, continuously and exclusively for the
prescribed statutory period (30 years under The Public Land Act, as
amended) is converted to private property by the mere lapse or completion
of said period, ipso jure. Following that rule and on the basis of the
undisputed facts, the land subject of this appeal was already private property
at the time it was acquired from the Infiels by Acme. Acme thereby
acquired a registrable title, there being at the time no prohibition against
said corporation's holding or owning private land.
BORROMEO VS DESCALLAR
It is settled that registration is not a mode of acquiring ownership. It
is only a means of confirming the fact of its existence with notice to the
world at large. Certificates of title are not a source of right. The mere
possession of a title does not make one the true owner of the property. Thus,
the mere fact that respondent has the titles of the disputed properties in her
name does not necessarily, conclusively and absolutely make her the owner.
The rule on indefeasibility of title likewise does not apply to respondent. A
certificate of title implies that the title is quiet, and that it is perfect, absolute
and indefeasible. However, there are well-defined exceptions to this rule, as
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CIVIL LAW REVIEWER
when the transferee is not a holder in good faith and did not acquire the
subject properties for a valuable consideration. This is the situation in the
instant case.
Respondent did not contribute a single centavo in the acquisition of
the properties. She had no income of her own at that time, nor did she have
any savings. She and her two sons were then fully supported by Jambrich.
While the acquisition and the purchase of (sic) Wilhelm Jambrich of the
properties under litigation [were] void ab initio since [they were] contrary to
the Constitution of the Philippines, he being a foreigner, yet, the acquisition
of these properties by plaintiff who is a Filipino citizen from him, has cured
the flaw in the original transaction and the title of the transferee is valid.
Is the title acquired by foreigners defective and therefore void?
• Rule: Foreigners are prohibited from owning lands in the Philippines
other than the exceptions provided by the Constitution
• Nevertheless:
✓ The defect in the title, without being assailed, shall be cured upon its
transfer to a Filipino citizen
✓ In the same manner, a defect in the title of a foreigner, without being
assailed, shall be cured when he becomes a Filipino citizen through
naturalization (United Church Board for World Ministries)
• The objective of the constitutional provision to keep our lands in Filipino
hands has been achieved in both instances.
REPUBLIC VS CA AND LAPINA
Sections 7 and 8 of Article XII of the Constitution contain the following
pertinent provisions, to wit:
Sec. 7. Save in cases of hereditary succession, no private lands shall be
transferred or conveyed except to individuals, corporations, or associations
qualified to acquire or hold lands of the public domain.
Sec. 8. Notwithstanding the provisions of Section 7 of this Article, a natural
born citizen of the Philippines who has lost his Philippine citizenship may
be a transferee of private lands, subject to limitations provided by law.
Batas Pambansa Blg. 185 was passed into law, the relevant provision of
which provides:
Sec. 2. Any natural-born citizen of the Philippines who has lost his
Philippine citizenship and who has the legal capacity to enter into a contract
under Philippine laws may be a transferee of a private land up to a
maximum area of one thousand square meters, in the case of urban land, or
one hectare in the case of rural land, to be used by him as his residence. In
the case of married couples, one of them may avail of the privilege herein
granted; Provided, That if both shall avail of the same, the total area
acquired shall not exceed the maximum herein fixed.
In case the transferee already owns urban or rural lands for
residential purposes, he shall still be entitled to be a transferee of an
additional urban or rural lands for residential purposes which, when added
to those already owned by him, shall not exceed the maximum areas herein
authorized.
MENDOZA VS CA
SEC. 29. After the filing of the application and before the issuance
of the decree of title by the Chief of the General Land Registration Office,
the land therein described may be dealt with and instruments relating
thereto shall be recorded in the office of the register of said at any time
before issuance of the decree of title, in the same manner as if no
application had been made. The interested Party may, however, present
such instruments to the Court of First Instance instead of presenting them to
the office of the register of deeds, together with a motion that the same be
considered in relation with the application, and the court after notice to the
parties, shall order such land registered subject to the ecumbrance created
by a said instruments, or order the decree of registration issued in the name
of the buyer or of the person to whom the property has been conveyed by
said instruments.
It is clear from the above-quoted provision that the law expressly
allows the land subject matter of an application for registration to be "dealt
with", i.e., to be disposed of or encumbered during the interval of time
between the filing of the application and the issuance of the decree of title,
and to have the instruments embodying such disposition or encumbrance
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CIVIL LAW REVIEWER
presented to the registration court by the ,interested party" for the court to
either "order such land registered subject to the encumbrance created by
said instruments, or order the decree of registration issued in the name of
the buyer or of the person to whom the property has been conveyed by said
instruments. The law does not require that the application for registration be
amended by substituting the "buyer" or the person to whom the property has
been conveyed" for the applicant. Neither does it require that the "buyer" or
the "person to whom the property has been conveyed" be a party to the case.
He may thus be a total stranger to the land registration proceedings. The
only requirements of the law are: (1) that the instrument be presented to the
court by the interested party together with a motion that the same be
considered in relation with the application; and (2) that prior notice be given
to the parties to the case. And the peculiar facts and circumstances obtaining
in this case show that these requirements have been complied with.
Can a registration of the land be issued in favor of a buyer who did not
personally apply nor was named in the application?
• Yes. There is an express provision of the law which allows and authorizes
the registration of the land in favor of the buyer, who may not be named or
personally appear.
• The law does not require the amendment (substitution of the parties) or
filing of the new application for the registration of the land in favor of the
buyer who was not named.
MEMORIZE:
PD 1529, Section 14. Who may apply. The following persons may file in
the proper Court of First Instance an application for registration of title to
land, whether personally or through their duly authorized representatives:
(1) Those who by themselves or through their predecessors-in-interest have
been in open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain under a
bona fide claim of ownership since June 12, 1945, or earlier.
(2) Those who have acquired ownership of private lands by prescription
under the provision of existing laws.
(3) Those who have acquired ownership of private lands or abandoned
river beds by right of accession or accretion under the existing laws.
(4) Those who have acquired ownership of land in any other manner
provided for by law. Where the land is owned in common, all the co-owners
shall file the application jointly.
Where the land has been sold under pacto de retro, the vendor a retro
may file an application for the original registration of the land, provided,
however, that should the period for redemption expire during the pendency
of the registration proceedings and ownership to the property consolidated
in the vendee a retro, the latter shall be substituted for the applicant and may
continue the proceedings. A trustee on behalf of his principal may apply for
original registration of any land held in trust by him, unless prohibited by
the instrument creating the trust.
Registrable Lands:
MARTINEZ vs CA
A simple possession of a certificate of title under the Torrens system
does not necessarily make the possessor a true owner of all the property
described therein. If a person obtains title under the Torrens system which
includes by mistake or oversight, lands which cannot be registered under the
Torrens system, he does not by virtue of said certificate alone become the
owner of the land illegally included.
The Land Registration Court has no jurisdiction over non-
registerable properties, such as public navigable rivers which are parts of
the public domain, and cannot validly adjudge the registration of title in
favor of a private applicant.
PALOMO VS CA
The adverse possession which may be the basis of a grant of title in
confirmation of imperfect title cases applies only to alienable lands of the
public domain. There is no question that the lands in the case at bar were
not alienable lands of the public domain. As testified by the District
Forester, records in the Bureau of Forestry show that the subject lands were
never declared as alienable and disposable and subject to private alienation
prior to 1913 up to the present. Moreover, as part of the reservation for
provincial park purposes, they form part of the forest zone.
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CIVIL LAW REVIEWER
It is elementary in the law governing natural resources that forest
land cannot be owned by private persons. It is not registrable and possession
thereof, no matter how lengthy, cannot convert it into private property,
unless such lands are reclassified and considered disposable and alienable.
Neither do the tax receipts which were presented in evidence prove
ownership of the parcels of land inasmuch as the weight of authority is that
tax declarations are not conclusive proof of ownership in land registration
cases.
DE BUYSER VS DOL
Art. 4. Lands added to the shore by accretion and alluvial deposits
caused by the action of the sea, form part of the public domain, when they
are no longer washed by the waters of the sea, and are not necessary for
purposes of public utility, or for the establishment of special industries,
or for the coastguard service, the Government shall declare them to be the
property of the owners of the estate adjacent thereto and as an increment
thereof.
REPUBLIC VS CA
The concurrence of three requisites before an accretion covered
by this particular provision is said to have taken place. They are
(1) that the deposit be gradual and imperceptible;
(2) that it be made through the effects of the current of the water; and
(3) that the land where accretion takes place is adjacent to the banks of
rivers.
Alluvion must be the exclusive work of nature. The riparian owner
does not acquire the additions to his land caused by special works expressly
intended or designed to bring about accretion. The lots in question were
portions of the bed the Meycauayan river and are therefore classified as
property of the public domain. The adjudication of the lands as private
property in the names of the private respondents is null and void.
The reason behind the law giving the riparian owner the right to any
land or alluvion deposited by a river is to compensate him for the danger of
loss that he suffers because of the location of his land. If estates bordering
on rivers are exposed to floods and other evils produced by the destructive
force of the waters and if by virtue of lawful provisions, said estates are
subject to incumbrances and various kinds of easements, it is proper that the
risk or danger which may prejudice the owners thereof should be
compensated by the right of accretion.
OFFICE OF THE CITY MAYOR OF PARANAQUE CITY vs EBIO
Art. 457. To the owners of lands adjoining the banks of rivers
belong the accretion which they gradually receive from the effects of the
current of the waters. It is therefore explicit from the foregoing provisions
that alluvial deposits along the banks of a creek do not form part of the
public domain as the alluvial property automatically belongs to the owner of
the estate to which it may have been added. The only restriction provided
for by law is that the owner of the adjoining property must register the same
under the Torrens system; otherwise, the alluvial property may be subject to
acquisition through prescription by third persons. In contrast, properties of
public dominion cannot be acquired by prescription. No matter how long
the possession of the properties has been, there can be no prescription
against the State regarding property of public domain. Even a city or
municipality cannot acquire them by prescription as against the State.
Principles laid down by SC:
• That alluvial deposits along the banks of a creek do not form part of the
public domain as the alluvial property automatically belongs to the
(riparian) owner of the estate to which it may have been added.
• May be lost by acquisitive prescription.
• The government needs to register the land to retain ownership.
• For Private lands
Steps in Registering a Imperfect Title over a Parcel of Land
1. Survey of the land by the Bureau of Lands or a duly licensed surveyor;
2. Preparation and filing of the application for registration by the applicant;
3. Setting of the date for the hearing of the application by the court;
4. Transmittal of the duplicate of the application and the date of initial
hearing together with all documents attached thereto by the Clerk of Court
to the Land Registration Authority;
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CIVIL LAW REVIEWER
5. Publication of notice of the filing of the application and date and place of
the hearing once in a newspaper of general circulation and once in the
Official Gazette;
6. Service of notice upon contiguous owners, occupants, and those known to
have interests in the property by the sheriff;
7. Filing of the answer to the application by any person whether named in
the notice or not;
8. Hearing of the case by the court and the presentation of evidence;
9. Promulgation of the judgment by the court;
10. Issuance of an order by the court declaring the judgment final and
instructing the Land Registration Authority to issue the decree of
registration in accordance with Section 39 of P.D. No. 1529;
11. Entry of the decree of registration in the Land Registration Authority;
12. Sending of copy of the decree of registration to the corresponding
Registrar of Deeds by the Land Registration Authority;
13. Transcription of the decree of registration in the registration book and
the issuance of the owner’s duplicate certificate of the original certificate of
title to the applicant by the Registrar of Deeds upon payment of the
prescribed fees.
PD 1529, Section 14. Who may apply. The following persons may file in
the proper Court of First Instance an application for registration of title to
land, whether personally or through their duly authorized representatives:
(1) Those who by themselves or through their predecessors-in-interest have
been in open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain under a
bona fide claim of ownership since June 12, 1945, or earlier.
NATURE OF POSSESSION
Confusion as to interpretation of Sec. 14 PD1529
Republic vs CA
At the time the registration of the land it must already be alienable and
disposable.
A. As explained in the case of Republic v. Court of Appeals and Naguit, the
phrase "since June 12, 1945” qualifies its antecedent phrase "under a bona
fide claim of ownership.” Generally speaking, qualifying words restrict
or modify only the words or phrases to which they are immediately
associated, and not those distantly or remotely located. Hence, what the law
merely requires is that the property sought to be registered is "already
alienable and disposable at the time the application for registration of title
is filed."
In other words, it is not necessary that the land be first classified as
alienable and disposable before the applicant's possession under a
bona fide claim of ownership could start. "If the State, at the time the
application is made, has not yet deemed it proper to release the property for
alienation or disposition, the presumption is that the government is still
reserving the right to utilize the property; hence, the need to preserve its
ownership in the State irrespective of the length of adverse possession even
if in good faith. However, if the property has already been classified as
alienable ad disposable, then there is already intention on the part of the
State to abdicate its exclusive prerogative over the property.”
The application for registration must conform to three requisites:
1. The land must be alienable and disposable
2. The applicant’s must be in an open, continuous, exclusive, and notorious
possession and occupation
3. It is under a bona fide claim of ownership since June 12, 1945 or earlier.
FIRME: The better interpretation is that as long as the property sought to
be registered has been declared alienable and disposable upon the
application, it is already enough because to have it declared before issuance
of June 12, 1945 render the provision inoperative.
BONA FIDE CLAIM OF OWNERSHIP – The owner believes that
he/she is the sole owner of the property.
Director of Lands vs Reyes
A mere casual cultivation of portions of the land by the claimant,
and the raising thereon of cattle, do not constitute possession under claim of
ownership under the bona fide claim of ownership.
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CIVIL LAW REVIEWER
Actual possession of land consists in the manifestation of acts of dominion
over it of such a nature as a party would naturally exercise over his own
property.
Heirs of Maninding vs CA
The acts of reaping the benefits of ownership were manifest and
visible to all. These acts were made more pronounced and public
considering that the parcels of land are located in a municipality wherein
ownership and possession are particularly and normally known to the
community. The owner peacefully possessed the properties as he was never
ousted therefrom nor prevented from enjoying their fruits.
POSSESSION IS:
OPEN – when it is patent, visible, apparent and not clandestine;
CONTINUOUS- when uninterrupted, unbroken, and not intermittent or
occasional;
EXCLUSIVE – when the adverse possessor can show exclusive dominion
over the land and appropriation of it to his own benefit; and
NOTORIOUS – when it is so conspicuous that it generally known and
talked of by the public or the people in the neighborhood.
Concession or affirmation in the concept of an owner – He believes there is
a bona fide claim of ownership and there is no other claimant. And he can
freely cultivate or donate the land.
Republic vs Herbieto
The late publication of the Notice of Initial Hearing in the
newspaper of general circulation is tantamount to no publication at all.
Publication of notice of the filing of the application and date and place of
the hearing once in a newspaper of general circulation (once a week for 3
consecutive weeks) and once in the Official Gazette (once a week for 3
consecutive weeks).
Purpose of Publication
1. To confer jurisdiction upon the court
2. To appraise the whole world of the pending registration case so that they
may assert their rights or interests in the land, if any, and oppose the
application, if so minded.
A land registration case is a proceeding in rem, and jurisdiction in rem
cannot be acquired unless there be constructive seizure of the land through
publication and service of notice.
Section 23 of the Property Registration Decree requires that the public be
given Notice of the Initial Hearing of the application for land registration by
means of (1) publication; (2) mailing; and (3) posting.
Publication in a newspaper of general circulation is mandatory for the land
registration court to validly confirm and register the title of the applicant or
applicants. That Section 23 of the Property Registration Decree enumerated
and described in detail the requirements of publication, mailing, and posting
of the Notice of Initial Hearing, then all such requirements, including
publication of the Notice in a newspaper of general circulation, is essential
and imperative, and must be strictly complied with.
Proof of publication in the official gazette – Certification from printing
office
Proof of publication in the general circulation – Certificate of publication
signed
by the editor in chief
It must be emphasized that under the law, the publication of a notice of
hearing
in the Official Gazette is not enough. The posting of said notice at the main
entrances of both the municipal and the provincial building is another
equally vital
requisite(newspaper of general circulation). The purposes of the stringent
and
mandatory character of the legal requirements of publication, posting and
mailing are to safeguard against spurious and unfounded land ownership
claims,
to appraise all interested parties of the existence of such action, and to give
them
enough time to intervene in the proceeding.
Republic vs Marasigan
Publication is mandatory and jurisdictional and non-compliance therewith
would
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CIVIL LAW REVIEWER
render all proceedings utterly null and void.
As regards publication, it specifically provides:
Upon receipt of the order of the court setting the time for initial hearing, the
Commissioner of Land Registration shall cause a notice of initial hearing to
be
published once in the Official Gazette and once in a newspaper of general
circulation in the Philippines: Provided, however, that the publication in the
Official
Gazette shall be sufficient to confer jurisdiction upon the court .
The duty to send notices to adjoining owners and actual occupants is
imposed
upon the court, not the party filing the petition for reconstitution (herein
private
respondent); any lapse in regard thereto should not prejudice or injure the
latter.
TAKE NOTE:
We should stress here that lapses on the part of courts or their personnel
cannot
be made a reason or justification for non-observance of laws. By the very
nature
of their functions, they should be the first to obey the laws.
Newspaper of general circulation – There must be a bona fide
subscription from a
paying subscriber. Must be published in a regularly published and for
entertainment.
Benin vs Tuason
Amendment of petition
May be asked in the exam:
The purpose of the new publication is to give notice to all persons
concerned
regarding the amended application. Without a new publication the
registration court cannot acquire jurisdiction over the area or parcel of land
that is added to the area covered by the original publication, and the
decision of the registration would be a nullity insofar as the decision
concerns
the newly included land. The reason is because without a new publication,
the law is infringed with respect to the publicity that is required in
registration
proceedings, and third parties who have not had the opportunity to present
their claim might be prejudiced in their rights because of failure of notice.
But if the amendment consists in the exclusion of a portion of the area
covered by the original application and the original plan as previously
published, a new publication is not necessary. In the latter case, the
jurisdiction of the court over the remaining area is not affected by the
failure
of a new application.
The jurisdiction of the court over the remaining area is not affected by the
failure
of a new publication.
There is a publication, however, before the court execute its judgment
there is an amendment. Therefore, the decision is different from what has
been published.
RULES ON PUBLICATION:
1. It is the settled rule in this jurisdiction that only in cases where the
original survey plan is amended during the registration proceedings by
the addition of lands not previously included in the original plan should
publication be made in order to confer jurisdiction on the court to
order the registration of the area that was added after the
publication of the original plan.
2. The settled rule, further, is that once the registration court had
acquired jurisdiction over a certain parcel, or parcels, of land in the
registration proceedings in virtue of the publication of the application,
that jurisdiction attaches to the land or lands mentioned and described
in the application. If it is later shown that the decree of registration
had included land or lands not included in the original application
as published, then the registration proceedings and the decree of
registration must be declared null and void in so far but only in so
far — a s the land not included in the publication is concerned.
FIRME:
In short:
1. If as a result of the amendment there is addition in the land area, there is
a need for publication, to confer jurisdiction of the court over the increase
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CIVIL LAW REVIEWER
of the land. Otherwise, the judgment is not valid in so far as the addition is Within 7 days after the publication in the Official Gazette of the notice
concerned. of initial
2. If there is a decrease, no need for publication because the court already haring, the LRA Administrator shall cause a copy of the notice to be mailed
has the jurisdiction over the land. to
3. If the increase is insubstantial, there is no need for publication. every person named in the notice whose address is known.THIS
February 2, 2019 REQUIREMENT IS
What if the publication was made in the official gazette but not in the MANDATORY.
newspaper 1. It should be in writing and verified by the applicant.
of general circulation, will that serve the purpose of informing the 2. It shall state the name, citizenship of the applicant
public. 3. The description of the land
Director of Lands vs CA and Abistado 4. All persons who have interest should be named in the application.
While the publication of the notice in the Official Gazette is sufficient to Can it be in the form of personal service and not mailing?
confer Yes. The purpose is to inform and enforce the person. It can be made in any
jurisdiction upon the court, publication in a newspaper of general mode.
circulation Those named in the petition should be given mail notices.
remains an indispensable component of procedural process. How about those not named in the petition, but is interested over the
The Court ruled that the rationale behind the newspaper publication is due land, how
process and the reality that the Official Gazette is not widely read and would those persons be informed?
circulated By publication.
as newspapers and is oftentimes delayed in its circulation. The registration Who are the persons who have interest over the land aside from the
court contiguous
has no authority to dispense with such mandatory requirement. owner?
The public shall be given notice of initial hearing of the application for land Secretary of Public Highways
registration by means of (1) publication; (2) mailing; and (3) posting. Provincial Governor and Mayor
POSTING OSG
Within 14 days before the initial hearing, the LRA Administrator shall DENR
cause a duly DAR
attested copy of the notice to be posted by the sheriff in a conspicuous place Director of Forestry
on Director of Mines
the land applied for and also in a conspicuous place on the bulletin board of Director of Fisheries and aquatic resources
the TAKE NOTEDocument
municipality or city in which the land is situated. THIS REQUIREMENT attached that must accompany the application for registration:
IS MANDATORY. 1. The original plan in tracing cloth duly approved by the Regional Director
What is the proof of actual posting? of Lands .
Certificate of posting signed by the sheriff or process server. 2. The white or blue print copies of the plan;
MAILING 3. Three copies o the technical descriptions of certificate by the Regional
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CIVIL LAW REVIEWER
Technical Director; plan. The court on its own can declare that it will not grant the portion
4. Three copies of geodetic engineer’s certificate or certification as to its which is
non-availability. being encroached.
5. A certificate as to the assessed value the land at its last assessment for The purpose of survey pan – it set the meets and bound of the property.
taxation or, affidavit as to the market value of the land; -you can merely compare together with existing title there is an
6. All original muniments of title of the applicant which prove his encroachment or
ownership not, it is already a sufficient evidence. There is no need to ask for the
of the land. cancellation
Director of Lands vs Heirs of Tesalona because by its own survey plan is the basis of the application.
General rule: The Supreme Court declared that the submission of the Interested Party – any party who would be benefited or aggrieved by the
tracing cloth judgment.
plan is a statutory requirement of mandatory character. Firme: for instance, the land being applied for is public, you as a private
Firme: However, in one Supreme court case, ruled that the original tracing citizen are
cloth is opposing the application because the application of a third person is part of
not mandatory only if there is no clear and convincing opposition. the
(exception and inalienable and indisposable land or national park. As a private individual
should not be presumed) can you
Gimeno vs. CA oppose the application?
The survey plan cannot be the most eloquent evidence of ownership. -NO. because you are not an interested party which will not be aggrieved or
SM Prime Holding, INC vs Madayang benefited by the application.
The court may now verify this allegation based on the respondent’s survey A private person may not oppose an application for registration on behalf of
plan the
vis-à-vis the certificates of title of the petitioner and its predecessors-in- government on the ground that the land belongs to the government.
interest. A SEC. 26. Order of default; effect. — If no person appears and answers
survey plan precisely serves to establish the true identity of the land to within the
ensure that time allowed, the court shall, upon motion of the applicant, no reason to the
it does not overlap a parcel of land or a portion thereof already covered by a contrary appearing, order a default to be recorded and require the applicant
previous land registration, and to forestall the possibility that it will be to
overlapped present evidence. By the description in the notice “To all Whom It May
by a subsequent registration of any adjoining land. Concern,”
For the suspension of the proceedings- all the world are made parties defendant and shall be concluded by the
FIRME: default
There is no need to suspend the proceedings pending the investigations or order.
cancellation of the DENR for the survey plan. Just compare the title and Where an appearance has been entered and an answer filed, a default order
survey shall be entered against persons who did not appear and answer.
Motion to lift order of general default.
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CIVIL LAW REVIEWER
An order of general default is interlocutory in character, subject to the • Motion for New Trial
control of Grounds:
the court, and may be modified or amended as the court may deem (a) Fraud, accident, mistake or excusable negligence (FAME) which
proper at ordinary
any time prior to the rendition of the final judgment. The interests of prudence could not have guarded against and by reason of which such
substantial aggrieved party has probably been impaired in his rights;
justice and the speedy determination of the controversy should be the (b) Newly discovered evidence, which he could not, with reasonable
guiding diligence,
principle of the trial court in lifting an order of general default to allow a have discovered, and produced at the trial, and which if presented would
party to probably alter the result;
file an opposition to the application. Filing:
FIRME: stages when you can file an answer. Filed by the aggrieved party 15 days from the day of receipt of the decision.
1. 15 days upon the notice that was serve by the process server or sheriff Firme:Aside from alleging FAME and newly discovered evidence the
2. During the initial hearing when it will be called, therefore to ask 10-15 aggrieved
days party must also attached the affidavit of merit, without the affidavit of merit
to file an answer. the
3. Moving for the lifting of order of general default. motion for new trial wil be denied.
HEARING OF THE CASE A motion for new trial shall include all grounds then available and those not
Republic Cement Corp vs CA and Correa included shall be deemed waived (Omnibus Motion Rule). A second
An applicant for registration of land, if he relies on a document evidencing motion for
his title thereto, must prove not only the genuineness of said title but also new trial, based on a ground not existing nor available when the first motion
the identity of the land therein referred to. If he only claims a portion of was
what is included in his title, he must clearly prove that the property sought made, may be filed within the time herein provided excluding the time
to be registered is included in that title. during
February 16, 2019 which the first motion had been pending (Sec. 3, Rule 37, Rules of Court).
Remedies available to aggrieved parties in registration proceedings When
MAY BE ASKED IN THE EXAM!!!!! any of these conditions does not exist, a second motion for new trial will be
Remedies available to aggrieved parties before the decision becomes denied.
final and Both motion for reconsideration and new trial would toll or stop the
executory decision from
• Motion for reconsideration becoming final and executory.
When a motion for reconsideration is filed and is based on the ground that Effects of Granting a New Trial
the (1) the original judgment is vacated
judgment is against the law or that it is not supported by the facts of the (2) the action shall stand for trial de novo
case. (3) the recorded evidence taken upon the former trial so far as the same is
Filed by the aggrieved party 15 days from the day of receipt of the decision. material
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CIVIL LAW REVIEWER
and competent to establish the issues, shall be used at the new trial without all these examples, the overriding consideration is that the fraudulent
retaking the same (Section 5, Rule 37, Rules of Court). If the grounds for scheme
the motion of the prevailing litigant prevented a party from having his day in court or
appear to the court to effect the issues from presenting his case. The fraud, therefore, is one that affects and goes
Rabaja Ranch Development vs AFP Retirement and Separation into the jurisdiction of the court.
Benefits System • Appeal
Fraud is of two kinds: actual or constructive. Actual or positive fraud An appeal may be taken by serving upon the adverse party and filing with
proceeds the
from an intentional deception practiced by means of the misrepresentation court within 15 days, Interim Rules of Court, from notice of order or
or concealment of a material fact. Constructive fraud is construed as a judgment, a
fraud notice of appeal, an appeal bond, and a record on appeal.
because of its detrimental effect upon public interests and public or private Can you file and extension of time to file a motion of appeal?
confidence, even though the act is not done with an actual design to NO. but if you will file it, it will not toll the running reglamentary period.
commit positive fraud or injury upon other persons. Who May Interpose an Appeal
Fraud may also be either extrinsic or intrinsic. Fraud is regarded as In land registration cases, it is necessary that the appellant (aggrieved
intrinsic party)must
where the fraudulent acts pertain to an issue involved in the original action, show that his rights or interests have been prejudiced by the decisions
or where the acts constituting the fraud were or could have been litigated appealed
therein. The fraud is extrinsic if it is employed to deprive parties of their from, before his appeal may be properly entertained.
day
in court and thus prevent them from asserting their right to the property Can an intervenor a notice of appeal?
registered in the name of the applicant. NO. There is no intervenor in a land registration case.
The distinctions assume significance because only actual and extrinsic It is an error of procedure to file a motion to intervene in a land registration
fraud case,
had been accepted and is contemplated by the law as a ground to for the proper procedure should be to ask for the lifting of the order of
review general
or reopen a decree of registration. Thus, relief is granted to a party default, and then if lifted, to file an opposition to the application of the
deprived applicant.
of his interest in land where the fraud consists in a deliberate When Judgment of Registration Becomes Final
misrepresentation When no appeal is taken from a judgment of confirmation and registration,
that the lots are not contested when in fact they are; or in willfully the
misrepresenting that there are no other claims; or in deliberately failing to same becomes final on the expiration of the time allowed for the filing of an
notify the party entitled to notice; or in inducing him not to oppose an appeal as previously indicated.
application; or in misrepresenting about the identity of the lot to the true • Relief from Judgment
owner by the applicant causing the former to withdraw his application. In • Review from Judgment
• Review of Decree of Registration
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CIVIL LAW REVIEWER
• Relief from Judgment When the right to file a petition for “relief from judgment’’ has expired
The petition “must be verified, filed within sixty (60) days after the because it
petitioner is already after the reglementary period of sixty (60) days from the time the
learns of the judgment, order or other proceeding to be set aside, and not petitioner learns of the judgment and beyond the six (6) months period from
more the
than (6) months after such judgment or order was entered, or such time such judgment is entered, and the remedy of “review of decree of
proceeding registration’’ cannot be availed of because the decree of registration, for one
was taken; and must be accompanied with affidavits showing the fraud, reason or another has not been issued, hence, there is no decree to be
accident, reviewed,
mistake, or excusable negligence relied upon, and the facts constituting an aggrieved party in a registration case may avail himself of the remedy of
the “Review of Judgment’’ but then, only on the ground of actual fraud.
petitioner’s good and substantial cause of action or defense, as the case may February 23, 2019
be Review of last week
Entry of Judgment - The date of finality of the judgment or final order Remedies available to aggrieved parties in registration proceedings
shall 1. Before the decision becomes final and executory
be the date of its entry; • Motion for reconsideration or new trial
FIRME – Regardless of the fact if the decision was entered in the book of • Appeal
judgment, 2. Decision is final
the reckoning period is the date when the notice of judgment is received. • Relief from Judgment
Take note: this remedy can only be availed of if there is no decree of • Review from Judgment
registration. • Review of Decree of Registration
When Relief Could Not be Availed of 3. Title has already been issue
Where another remedy is available, as in fact, private respondent had filed a Reconveyance
motion for New Trial and/or reconsideration alleging practically the same Action for Damages
main Assurance Fund
ground of the petition for relief, which was denied, what respondent should • Review from Judgment
have Only suggested in the book of Noblejas. In the case of Rivera vs. Moran, 48
done was to take to a higher court such denial. A party who has filed a Phil.
timely 836 [1926], one of the grounds alleged to counter a petition for review of
motion for new trial cannot file a petition for relief after his motion has been the
denied. judgment filed by the Solicitor General pursuant to Sec. 38 of Act 496 (now
These two remedies are exclusive of each other. It is only in appropriate Sec. 32, P.D. 1529) was that no final decree in the case had been issued, the
cases petition
where a party aggrieved by a judgment has not been able to file a motion for for review of decree of registration, being therefore prematurely filed.
New Trial that a petition for relief can be filed When can the remedy be availed of?
• Review from Judgment May be filed at anytime after the expiration of six (6) months from entry of
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CIVIL LAW REVIEWER
judgment and before the decree of registration is issue. or that an interest has been omitted in the application;
Grounds: (2) that the registration has been procured through actual fraud, or that the
Actual Fraud omission in the application of the interest of the third person in the property
• Review of Decree of Registration is
Grounds for Review This remedy is available to an aggrieved party who has intentional;
been (3) that the petitioner is the owner of said property or interest therein;
deprived of land or any estate or interest therein by decree of registration (4) that the property has not been transferred to an innocent purchaser for
and the value;
only ground that may be invoked for this purpose is “actual fraud’’. A (5) that the action is filed within one year from the issuance and entry of the
petition for decree
review of a decree of registration may be filed with the Regional Trial Court of registration; and
of the (6) that the actual fraud must be perpetrated or utilized in the procurement
city or province where the land lies, within one year after the date of of the
entry of the decree and not thereafter
decree, provided no innocent purchaser for value has acquired an • Reconveyance of Property
interest therein. The basic rule is that after the lapse of one year, a decree of registration is
When Property is Transferred to an Innocent Purchaser for Value no
If the property has been transferred or sold to an innocent purchaser for longer open to review or attack although its issuance is attended with actual
value, the fraud.
petition for review shall not lie. He is considered an innocent purchaser who Reconveyance is an action in personam and is always available so long as
acquired the property for a valuable consideration not knowing that the title the
of property has not passed to an innocent third party for value. And to
the vendor or grantor was defective or void. avoid the
A purchaser in good faith and for value is defined as “one who buys possibility of the land passing to an innocent third person and preserve the
property of claim
another, without notice that some other person has a right to or interest in of the real owner, a notice of lis pendens may be caused to be annotated on
such the certificate issued immediately upon the institution of the action. The
property and pays a full and fair price for the same, at the time of such prescriptive period for the reconveyance of fraudulently registered real
purchase property
or before he has notice of the claims or interest of some other person in the is ten (10) years reckoned from the date of the issuance of the certificate of
property. title.
The grounds and conditions justifying the review of the decree of Firme: it presupposes the existence of title, this is in the third remedy
registration under available to
the Property Registration Decree are: the aggrieved party if the title has already been issued.
(1) that a land belonging to a person has been registered in the name of Republic vs Lozada
another, extrinsic or collateral fraud, as distinguished from intrinsic fraud [which]
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CIVIL LAW REVIEWER
connotes any fraudulent scheme executed by a prevailing litigant outside under the operation of the Torrens system or arising after original
the trial of a case against the defeated party, or his agents, attorneys or registration
witnesses, whereby said defeated party is his agents, attorneys or witnesses, of land, through fraud or in consequence of any error, omission, mistake or
whereby said defeated party is prevent from presenting fully and fairly his misdescription in any certificate of title or in any entry or memorandum in
side of the case. the registration book, and who by the provisions of this Decree is barred or
intrinsic fraud [which] takes the form of acts of a party in a litigation during otherwise precluded under the provision of any law from bringing an action
the trial, such as the use of forged instruments or perjured testimony, which for the recovery of such land or the estate or interest therein, may bring an
did not affect the presentation of the case, but did prevent a fair and just action in any court of competent jurisdiction for the recovery of damage to
determination of the case. be paid out of the Assurance Fund.
Take note: within one year from the title has already been issued, title will Persons who may recover from the Assurance Fund are:
been 1) Any person who sustains loss or damage under the following conditions:
incontrovertible. a) that there was no negligence on his part; and
Requisites of an action for reconveyance: b) that the loss or damage sustained was through any omission, mistake or
(a) clear and convincing evidence of title to the property; malfeasance of the court personnel, or the Registrar of Deeds, his deputy,
(b) fact of fraud committed by the party who registered the property in or other employees of the Registry in the performance of their respective
his/her duties under the provisions of the Land Registration Act, now, the Property
name; Registration Decree; or
(c) and that the property has not been transferred to an innocent purchaser. 2) Any person who has been deprived of any land or interest therein under
What if the property has been transferred to an innocent purchaser for the following conditions:
value, what a) that there was no negligence on his part;
is the remedy available? b) that he was deprived as a consequence of the bringing of his land or
-Action for Damages interest therein under the provisions of the Property Registration Decree; or
The Assurance by the registration by any other person as owner of such land; or by
Fund Definition of Assurance Fund mistake,
The Assurance Fund is the special fund which is created under the Torrens omission or misdescription in any certificate of owners duplicate, or in any
system entry or memorandum in the register or other official book or by any
for the compensation of certain persons for losses sustained by operations cancellation; and c) that he is barred or in any way precluded from bringing
under an action for the recovery of such land or interest therein, or claim upon
the system. the same.
De Guzman vs NTRP ***The Assurance Fund is intended to relieve innocent persons from the
Section 95 of Presidential Decree No. 1529, otherwise known as the harshness of the doctrine that a certificate is conclusive evidence of an
Property indefeasible title to land.
Registration Decree, provides: Writ of possession
SEC. 95. Action for compensation from funds. A person who, without Is employed. To enforce a judgment to recover the possession of the land. It
negligence on his part, sustains loss or damage, or is deprived of land or commands the sheriff to enter the land give possession of it to the person
any estate or interest therein in consequence of the bringing of the land entitled
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CIVIL LAW REVIEWER
under the judgment.
Instances a writ of possession is issued
1. In a land registration proceeding, which is a registration in rem.
2. In an extrajudicial foreclosure of a realty mortgage
3. In a judicial foreclosure of real estate mortgage
4. In execution sales
Rodil vs Benedicto
In special proceedings the purpose is to establish a status, condition or fact;
in land registration proceedings, the ownership by a person or a parcel of
land
is sought to be established. After the ownership has been proved and
confirmed by judicial declaration, no further proceeding to enforce said
ownership is necessary, except when the adverse or losing party had been
in possession of the land and the winning party desires to oust him
therefrom.
Furthermore, there is no provision in the Land Registration Act similar to
Sec.
6, Rule 39. regarding the execution of a judgment in a civil action, except
to place the winner in possession by virtue of a writ of possession. The
decision in a land registration case, unless the adverse or losing party is in
possession adverse or losing party, on. becomes final without any further
action, upon the expiration of the period for perfecting an appear.
TORRENS CERTIFICATE OF TITLE
Definition of Certificate of Title
A certificate of title, also referred to as a Torrens title may be defined as an
instrument issued by the Registrar of Deeds of the place where the land is
located,
declaring the owner in fee simple of certain real property described
therein, free
from all liens and encumbrances, except such as may be expressly
reserved or
noted therein.
Dy vs CA
In proving their due execution and genuinness, it is not sufficient that the
witness
state in a general manner that the person whose signature appears thereon
the one who executed the document. The testimony of an eye witness
authenticating a private document must be positive, categorically stating
that
the document was actually eye-witness by the person whose name is
subscribed thereto.
FIRME:
Another key feature of the torrens system of registration is the mirror
doctrine or
curtain doctrine, meaning to say, what you see in the title, you are not
bound to
look beyond it. “what you see is what you get”
Pino vs CA
Well settled is the rule that all persons dealing with property covered by
torrens
certificate of title are not required to go beyond what appears on the face of
the
title. When there is nothing on the certificate of title to indicate any cloud or
vice
in the ownership of the property, or any encumbrance thereon, the purchaser
is
not required to explore further than what the torrens title upon its face
indicates in
quest or any hidden defect or inchoate right that may subsequently defeat
his
right thereto.
Except when the party concerned had actual knowledge of facts and
circumstances that should impel a reasonably cautious man to make such
further inquiry.
March 2, 2019
Definition of Certificate of Title
A certificate of title, also referred to as a Torrens title may be defined as an
instrument issued by the Registrar of Deeds of the place where the land is
located, declaring the owner in fee simple of
certain real property described therein, free from all liens and
encumbrances,
except such as may be expressly reserved or noted therein.
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CIVIL LAW REVIEWER
In the case of the Philippine National Bank vs. Tan Ong Zse, 51 Phil. 317 The Civil code provides that on the question of double sale of
(1927), immovable
our Supreme Court defined it as “the transcript of the decree of registration property, the ownership shall belong to the person acquiring it who in good
made by the Registrar of Deeds in the registry’’. faith
FIRME – first recorded it to the Registry of Property.
Torrens title – a certificate issued by the government, through the registrar What will be the effect?
of FIRME –
deeds, stating that the owner named therein is the absolute owner in fee Good faith – The individual is not aware of the defect or infirmity of the
simple title prior
of the property described therein. That he shall hold it free from all lien and to the sale. If the title is registered under the Torrens system, the buyer is
encumbrances except those which are stated in his title, okaya those not
expressly bound to look beyond the face of the title. The transfer or sale is valid as to
prescribed by law. the
MIRROR DOCTRINE purchaser in good faith.
All persons dealing with property covered by a Torrens certificate of title Bad faith – the individual is aware of the defect or infirmity of the title even
are not though such defect is not stated therein or is not visible in the title. (ex:
required to go beyond what appears on the face of the title. When there is Nakita
nothing on the Certificate of Title indicating any cloud or vice in the nung buyer na finorge and signature)
ownership Barrios vs CA
of the property, the purchaser is not required to explore further than what Purchasing a property from a buyer who doesn’t possess any documents of
the said
Torrens Title upon its face indicates in quest for any hidden defect or property indicates bad faith.
inchoate Exception to the general rule that a purchaser is not bound to look beyond
right that may subsequently defeat his right thereto. the
title –
How do we know if a person is in good faith or bad faith? Banks and other financial institutions – they are obligated to investigate
Romeo and Marcelita Co vs CA beyond
Effect of bad faith in the transfer of title – the transfer and title are invalid. the title as they are engaged in a business that involves public interest.
Person There
who is in bad faith should not benefit from the protection of the Torrens must be due diligence in investigating the title and the property.
system. FIRME –
Purchaser in good faith shall not affect his title over the property. A Question: Mr. Galindo Forged the signature of the true owner of the
purchaser property
in good faith are those who are not aware of the defect or infirmity before for the purpose of transferring the title to him. Mr. Galindo sold said
the property to
sale.
PNOTES
CIVIL LAW REVIEWER
Mr. Marius who is a purchaser in good faith. Will Mr. Marius be affected
by the
fact that his title came from an illegal transaction? Because we have a
principle
in law that a void transaction cannot produce any legal effect. Is said
principle
applicable in land titles, as compared to the principle of buyer in good faith
and for value if not obligated to look beyond the title?
Republic vs. Agunoy
If you are a possessor of a property or a purchaser in good faith and for
value,
notwithstanding the fact that your predecessor in interest forged the title, the
title and transfer will remain valid. This is pursuant to the very essence of
the
Torrens system of registration and the principle of buyer in good fait and for
value.
The principle that the objects in the spring cannot rise higher than its source
is
not applicable in this case because the object (the title) is no longer floating
in
the spring, it is very much now ashore on the high solid grounds of the
Torrens
system land registration.
Gusi vs Domingo
An individual cannot just claim to be a purchaser in good faith and for
value,
the Supreme Court ruled that it must be proven because you are enjoying
some
benefits of being in good faith. Being in good faith is not automatic, it must
be
proven.
The seller made it appear that her title was lost, she was able to get a
reconstituted title and based the sale from that.
The Supreme Court ruled that the purchasers were in bad faith when they
acquired the property on these grounds –
1. It was a red flag when the seller provided them with a reconstituted
title and not the original one;
2. The property was undervalued;
3. The transaction/transfers were done simultaneously –
July 14 – alleged sale from the original owner to herein seller;
July 17 – herein seller filed an affidavit of loss to the RD;
July 18 – Filed a petition in court for the issuance of a duplicate
certificate;
August 26 – the court granted the petition.
With that said, the purchasers must have been cautioned by these events as
they are all annotated on the title that was in the possession of the RD.
To summarize the whole semester –
We have several principles –
Confirmation of an imperfect title – this means that you want the court
to confirm your title (not your documents) by issuing you a certificate
of title. In doing that you must take note of the following –
1. What is the property that I want, am I the right person to have
this property registered under my name?
2. What are the steps that I have to do to become the
registered owner? (13 steps)
3. After judgement was rendered in your favor, wait for it to
become final and executory, because there are remedies that
are available to the adverse party.
4. if no remedies were filed, now you have the title.
Buying of title/property – obligations of the buyer in purchasing the
property –
1. Find out if there are liens or encumbrances; two kinds of liens
–
Express (those annotated) and Implied (conferred by
law ex: tax, amilyar)
2. in dealing with the property – what are the effects of good
faith and bad faith in purchasing.
PNOTES