Beruflich Dokumente
Kultur Dokumente
by:
ATTY. RHANDELL ALVIN B. MATULOY
A.B., LL.B,CPV, PIArb, PREB, PREA
attyrhandell@gmail.com
09178493738
OBLIGATION
A juridical necessity to
give, to do, or not to do
(Article 1156), one
impressed with the
character of enforceability.
2 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
CONTRACT
A MEETING OF MINDS
between two persons whereby
one binds himself, with
respect to the other, to give
something or to render some
service (Art. 1305, NCC).
-
FOR ENFORCEABILITY
Sales Agreements within the
scope of the Statute of
Frauds (EXCLUSIVE LIST, ART.
1402 (2) CIVIL CODE):
1. Agreement for the sale of
goods, etc. at a price not less
than P500.00
2. Agreements for the sale of
real property or interest therein
NOTES:
The contracts/agreements under
the Statute of Frauds require that
the same be evidenced by some
note, memorandum or writing,
subscribed by the party charged or
by his agent, otherwise, the said
contracts shall be unenforceable.
The statute of frauds applies only
to executory contracts, not to
those that are partially or
completely fulfilled.
EFFECT OF NON-COMPLIANCE
WITH THE STATUTE OF FRAUDS
THE FORM REQUIRED IS FOR
EVIDENTIARY PURPOSE ONLY. IT
SIMPLY PROVIDES A METHOD BY
WHICH THE CONTRACTS ENUMERATED
THEREIN MAY BE PROVED. HENCE IF
THE PARTIES PERMIT A CONTRACT TO
BE PROVED, WTHOUT ANY OBJECTION,
IT IS THEN AS BINDING AS IF THE
STATUTE HAS BEEN COMPLIED WITH.
FOR CONVENIENCE OF THE
PARTIES
The following must appear in a public document:
Acts and contracts which have for their object
the creation, transmission, modification or
extinguishment of real rights over immovable
property; sales of real property or of an
interest therein a governed by Articles 1403,
No. 2, and 1405;
All other contracts where the amount
involved exceeds five hundred pesos must
appear in writing, even a private one. But
sales of goods, chattels or things in action
are governed by Articles, 1403, No. 2 and
1405. (Art. 1358. CC)
RA 8792 (E- COMMERCE
ACT)
provides that the formal
requirements to make contracts
effective as against third persons
and to establish the existence of a
contract are deemed complied
with provided that the electronic
document is unaltered and can be
authenticated as to be usable for
future reference.
FACSIMILE TRANMISSION NOT AN
ELECTRONIC DOCUMENT
We, therefore, conclude that the terms
"electronic data message" and "electronic
document," as defined under the Electronic
Commerce Act of 2000, do not include a
facsimile transmission. Accordingly, a
facsimile transmission cannot be considered
as electronic evidence. It is not the
functional equivalent of an original
under the Best Evidence Rule and is not
admissible as electronic evidence. (MCC
INDUSTRIAL SALES CORPORATION, vs.
SSANGYONG CORPORATION)
REFORMATION OF INSTRUMENTS
Requisites:
meeting of the minds to the contract
true intention is not expressed in
the instrument by reason of mistake,
accident, relative simulation, fraud,
or inequitable conduct
clear and convincing proof of
mistake, accident, relative
simulation, fraud, or inequitable
conduct
Instances when there can be no
reformation:
Simple unconditional donations inter
vivos;
Wills;
When the agreement is void;
NOTE:
When one of the parties has brought an
action to enforce the instrument, no
subsequent reformation can be asked.
DEFECTIVE CONTRACTS
VOID VOIDABLE RESCISSIBLE UNENFORCEABLE
“CONTRACT OF SALE”
“CONTRACT OF LEASE”
“DEED OF REAL ESTATE MORTGAGE”
“DEED OF DONATION”
ANIMUS: THE INTENTION
Art. 1370. If the terms of a contract
are clear and leave no doubt upon
the intention of the contracting
parties, the literal meaning of its
stipulations shall control.
If the words appear to be contrary
to the evident intention of the
parties, the latter shall prevail over
the former.
PEOPLE'S INDUSTRIAL AND COMMERCIAL
CORPORATION vs COURT OF APPEALS and MAR-
ICK INVESTMENT CORPORATION
35 EXCEL
PARTIES TO A CONTRACT
CITIZENSHIP
CAPACITY TO BUY OR SELL REAL PROPERTIES
minors ( below 18 )
insane unless acted in lucid interval
deaf mute who can’t read or write
persons specially disqualified: civil interdiction
in state of drunkenness
in state of hypnotic spelL
NOTE: Curable by CONFIRMATION
UNENFORCEABLE
Both parties incapable of giving consent -2
minor or 2 insane persons
53 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
CAPACITY TO BUY OR SELL REAL PROPERTIES
If one spouse acts without the written consent of the other
or without court authority, the disposition or encumbrance
shall be VOID.
Period to file questioning transaction by a spouse:
- Imprescriptible
* in consideration of
marriage
rearranged from San Beda Law Memory Aid
MARRIAGE SETTLEMENT
* made before celebration of marriage
additional signatories
- 18-21: parents
- civil interdictees
rearranged &Memory
from San Beda Law disabled:
Aid guardian
SYSTEM OF ABSOLUTE
COMMUNITY
CAPITAL –
EXCLUSIVE PROPERTY OF
THE HUSBAND
rearranged from San Beda Law Memory Aid
NOTE
Property bought on installments paid partly from
exclusive funds of the spouses and partly form
conjugal funds:
BOARD RESOLUTION
ATTORNEY (SPA)
Kinds of Wills:
•Affidavit of Self-adjudication –
the document
executed when the deceased registered owner
is survived as a sole heir, the estate of the
former maybe transferred to a latter with the
execution of a document is known as; otherwise
EXTRAJUDICIAL OR JUDICIAL SETTLEMENT
OF ESTATE
rearranged from San Beda Law Memory Aid
SEC 4 RULE 74 OF THE
RULES OF COURT
. . . SUCH BOND AND SUCH REAL ESTATE SHALL
REMAIN CHARGED WITH A LIABILITY TO CREDITORS,
HEIRS, OR OTHER PERSONS FOR THE FULL PERIOD
OF TWO YEARS AFTER SUCH DISTRIBUTION,
NOTWITHSTANDING ANY TRANSFERS OF REAL
ESTATE THAT MAY HAVE BEEN MADE. . .
NOTE:
The two year lien upon the real property distributed by
extrjudicial or summary settlement shall be annotated on
the title issued to the distributees and after 2 years will be
cancelled by the Register of Deeds without need of court
order
rearranged from San Beda Law Memory Aid
ORDER OF INTESTATE
SUCCESSION
REGULAR ORDER OF SUCCESSION
(Decedent is a legitimate person):
1.Legitimate children or descendants (LCD)
2.Legitimate parents or ascendants (LPA)
3.Illegitimate children or descendants (ICD)
4.Surviving spouse (SS)
5.Brothers and sisters, nephews and nieces
(BS/NN)
6.Other collateral relatives within the 5 th
degree (C5)
7.State (ESCHEAT)
rearranged from San Beda Law Memory Aid
ORDER OF INTESTATE OF
SUCCESSION
IRREGULAR ORDER OF SUCCESSION
(Decedent is an illegitimate person):
If the sale is for a lump sum (A Cuerpo Cierto), there shall
be no increase or decrease of the price, although there be
a greater or lesser area than that stated in the contract.
If the sale be made with a statement of its area at the rate
of a certain price per square meter, the VENDEE may:
a) If the area is bigger, choose to:
- accept the area included in the contract and reject the
excess; or
- accept the whole area, but must pay for the excess
area at the contract rate.
117 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
RULE IN CASE AREA IS DIFFERENT FROM
THAT STATED IN THE CONTRACT (Art. 1539,
1540 and 1542, NCC)
b) If the area is smaller, choose to:
1. have a proportional reduction of the price;
or
2. rescind contract, provided:
- that the lack in area be not less than 10% of that in
the contract; or
- that he would not have bought the land had he
known of its smaller area.
118 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
REQUIREMENT AS WHAT MAY BE
ACQUIRED OR POSSESSED
Certainty or ascertainable at the time of
perfection
Real, not fictitious
In some cases, must not be grossly inferior
to the value of the thing sold.
Paid in money or its equivalent
126 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
OBLIGATIONS OF THE VENDEE
127 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
EARNEST MONEY IN CONTRACT
TO SELL
It is true that Article 1482 of the Civil Code provides that
“[W]henever earnest money is given in a contract of sale, it shall
be considered as part of the price and proof of the perfection of
the contract.” However, this article speaks of earnest money
given in a contract of sale. In this case, the earnest money
was given in a contract to sell. The Receipt evidencing the
contract to sell stipulates that the earnest money is a
forfeitable deposit, to be forfeited if the sale is not
consummated should Chua fail to pay the balance of the
purchase price. The earnest money forms part of the
consideration only if the sale is consummated upon full
payment of the purchase price. If there is a contract of
sale, Valdes-Choy should have the right to compel Chua to
pay the balance of the purchase price. Chua, however, has
the right to walk away from the transaction, with no
obligation to pay the balance, although he will forfeit the
earnest money. Clearly, there is no contract of sale. The
earnest money was given in a contract to sell, and thus
Article 1482, which speaks of a contract of sale, is not
applicable. (TOMAS K. CHUA vs. COURT OF APPEALS)
Right of First Refusal
It is a right of first priority all things and
conditions being equal; there should be
identity of the terms and conditions to
be offered to the optionee and all other
prospective buyers, with optionee to
enjoy the right of first priority.
129 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
PURCHASE OF THE LEASED PROPERTY
GENERAL RULE: Purchaser of thing leased can terminate
lease.
EXCEPTIONS:
lease is recorded in Registry of Property
there is stipulation in the contract of sale that purchaser
shall respect the lease
purchaser knows the existence of the lease
sale is fictitious
sale is made with right of repurchase
When the price of sale with right to repurchase is usually
inadequate.
When the vendor remains in possession as lessee or
otherwise.
When, upon or after the expiration of the right to
repurchase, another instrument extending the period of
redemption or granting a new period is executed.
When the purchaser retains for himself to pay a part of the
purchase price.
131 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
WHEN CONTRACT SHALL BE PRESUMED TO BE
AN "EQUITABLE MORTGAGE”
When the vendor binds himself to pay the realty taxes on the
property sold.
In any other case where it may be fairly inferred that the real
intention of the parties is that the transaction shall secure the
payment of a debt or the performance of any other obligation.
When there is doubt as to whether the contract is a contract of
sale with right to repurchase (pacto de retro) or an equitable
mortgage (Art. 1602, 1603).
132 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
PERFECTION OF SALE
Sale is a CONSENSUAL CONTRACT
It is perfected at the moment there is meeting of
the minds upon a determinate thing (object), and
a certain price (consideration), even if neither is
delivered.
In case of default:
A choice between rescission and fulfillment,
with damages in either case
133 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
NOTARIZATION
NATURE AND EFFECT OF
NOTARIZATION
The notarization of a document carries
considerable legal effect. Notarization of a private
document converts such document into a public
one, and renders it admissible in court without
further proof of its authenticity.40 Thus, notarization
is not an empty routine; to the contrary, it engages
public interest in a substantial degree and the
protection of that interest requires preventing
those who are not qualified or authorized to act as
notaries public from imposing upon the public and
the courts and administrative offices generally.
(TIGNO VS. SPOUSES AQUINO)
True enough, from a civil law perspective, the absence of
notarization of the Deed of Sale would not necessarily
invalidate the transaction evidenced therein. Article 1358
of the Civil Code requires that the form of a contract that
transmits or extinguishes real rights over immovable
property should be in a public document, yet it is also an
accepted rule that the failure to observe the proper form
does not render the transaction invalid. Thus, it has been
uniformly held that the form required in Article 1358 is
not essential to the validity or enforceability of the
transaction, but required merely for convenience.We
have even affirmed that a sale of real property though
not consigned in a public instrument or formal writing, is
nevertheless valid and binding among the parties, for the
time-honored rule is that even a verbal contract of sale
or real estate produces legal effects between the parties.
(TIGNO VS. SPOUSES AQUINO)
CONVENIENCE VS
CONSEQENCES
Court in Dela Cruz-Sillano v. Pangan:
The Court is aware of the practice of not a few lawyers
commissioned as notary public to authenticate documents
without requiring the physical presence of affiants.
However, the adverse consequences of this practice far
outweigh whatever convenience is afforded to the absent
affiants. Doing away with the essential requirement of
physical presence of the affiant does not take into account
the likelihood that the documents may be spurious or that
the affiants may not be who they purport to be. A notary
public should not notarize a document unless the persons
who signed the same are the very same persons who
executed and personally appeared before him to attest to
the contents and truth of what are stated therein. The
purpose of this requirement is to enable the notary public
to verify the genuineness of the signature of the
acknowledging party and to ascertain that the document
is the party’s free act and deed.
ACKNOWLEDGMENT
An acknowledgment is the act of one who
has executed a deed in going before some
competent officer or court and declaring it
to be his act or deed. It involves an extra
step undertaken whereby the signor
actually declares to the notary that the
executor of a document has attested to the
notary that the same is his/her own free act
and deed.
JURAT
part of an affidavit in which the notary
certifies that before him/her, the document
was subscribed and sworn to by the
executor. Ordinarily, the language of the
jurat should avow that the document was
subscribed and sworn to before the notary
public.
LAST STAGE: CONSUMMATION
CONSUMMATED CONTRACT OF
SALE
Actual cancellation can only take place after 30 days from
receipt by the buyer of the notice of cancellation OR demand for
rescission by a notarial act AND upon full payment of the cash
surrender value to the buyer (Olympia Housing vs. Panasiatic, 16 January 2003.)
NOTE:
The seller shall refund to the buyer the cash surrender value of
the payments on the property equivalent to 50% of the total
payments made. After five (5) years of installments, there shall
be an additional 5% every year but not to exceed 90% of the
total payments made
Tender of Payment
- Manifestation of the debtor to the creditor of his decision
to comply immediately with his obligation.
-It is the preparatory act and extrajudicial in character.
Consignation - Deposit of the object of the obligation in a
competent court in accordance with the rules prescribed by
law, after the tender of payment has been refused or
because of circumstances which render direct payment to
the creditor impossible or inadvisable.
- It is the principal act and judicial in character.
148 Intellectual Property of Atty. Rhandell Alvin B. Matuloy
REGISTRATION
PURPOSES OF REGISTRATON OF
TRANSFER WITH THE REGISTER
OF DEEDS
TO MAKE THE INSTRUMENT EVIDENCING
THE TRANSACTION VALID AGAINST 3RD
PERSON
TO GIVE PREFERENTIAL RIGHTS TO
REGISTERED OWNER
TO PREVENT FRAUD
TO MAKE IT PUBLIC RECORD AS TO WHO IS
THE OWNER OF THE PARTICULAR PROPERTY
REGISTRATION WITH RD: NOTICE
TO THE WHOLE WORLD
In this jurisdiction, we adhere to the doctrine that
registration in a public registry works as constructive
notice to the whole world. Section 51 of Act No. 496, as
amended by Section 52 of Presidential Decree No.
1529, provides:
SECTION 52. Constructive notice upon registration.—
Every conveyance, mortgage, lease, lien, attachment,
order, judgment, instrument or entry affecting
registered land shall, if registered, filed or entered in
the Office of the Register of Deeds for the province or
city where the land to which it relates lies, be
constructive notice to all persons from the time of such
registering, filing, or entering. (RUBEN C. REYES vs.
TANG SOAT ING (JOANNA TANG) and ANDO G. SY)
RULE ON WHO HAS BETTER RIGHT TO
OWNERSHIP OF PROPERTYSOLD TO TWO OR
MORE BUYERS (Art. 1544, NCC)