PERSONS AND FAMILY RELATIONS

Tanada vs Tuvera, 136 SCRA 27 (1985)

The term laws do not include decisions of the Supreme Court

because lawyers in the active practice must keep abreast of

Article 2 of the NCC does not preclude the requirement of

decisions, particularly where issues have been clarified,

publication in the Official Gazette even if the law itself provides for

consistently reiterated and published in advanced reports and the

the date of its effectivity.

SCRA.

Tanada vs Tuvera,146 SCRA 446 (1986)

Ty v. Cam G.R. NO. 127406, Nov. 27, 2000

If the law provides for its own effectivity date, then it takes effect

The two marriages involved in this case was entered during the

on the said date, subject to the requirement of publication. The

effectivity of the New Civil Code. The Family Code has retroactive

clause unless otherwise provided refers to the date of effectivity

effect unless there be impairment of vested rights.

and not the to the requirement of publication itself, which cannot

in any event be omitted.

Floresca vs Philex Mining Corp.,G.R. 30642, April 30, 1985

LA BUAL-BLAAN TRIBAL ASSOCIATION INC. v. RAMOS, G.R.

The application or interpretation placed by the Supreme Court

No. 127882, January 27, 2004

upon a law is part of the law as of the date of its enactment since
the courts application or interpretation merely establishes the

While the effectivity clause of E.O. No. 279 does not require its

contemporaneous legislative intent that the construed law

publication, it is not a ground for its invalidation since the

purports to carry into effect.

Constitution, being the fundamental, paramount and supreme

law of the nation, is deemed written in the law. Hence, the due

Van Dorn vs. Romillo G.R. NO.L-68470 October 8, 1985

process clause, which, so Taada held, mandates the publication

of statutes, is read into Section 8 of E.O. No. 279. Additionally,

It is true that owing to the nationality principle embodied in Article

Section 1 of E.O. No. 200 which provides for publication either in

15 of the Civil Code, only Philippine nationals are covered by the

the Official Gazette or in a newspaper of general circulation in the

policy against absolute divorces the same being considered

Philippines, finds suppletory application. It is significant to note

contrary to our concept of public policy and morality. However,

that E.O. No. 279 was actually published in the Official Gazette on

aliens may obtain divorces abroad,

August 3, 1987.
RCPI vs CA, 143 SCRA 657 (1986)
Roy vs CA, G.R. NO 80718 Jan. 29, 1988

Dionela filed a complaint for damages against RCPI alleging that

the defamatory words on the telegram sent to him not only

SPOUSES HING v. ALEXANDER CHOACHUY, SR. G.R. No.

wounded his feelings but also caused him undue embarrassment

179736. June 26, 2013

and affected his business as well as because other people have

come to know of said defamatory words. There is a clear case of

Thus, an individuals right to privacy under Article 26(1) of the

breach of contract by the petitioner in adding extraneous and

Civil Code should not be confined to his house or residence as it

libelous matters in the message sent to Dionela.

may extend to places where he has the right to exclude the public
or deny them access. The phrase prying into the privacy of

Gashme Shookat Baksh vs CA,219 SCRA115 (1993)

anothers residence, therefore, covers places, locations, or even

situations which an individual considers as private. And as long as

Where a mans promise to marry is in fact the proximate cause of

his right is recognized by society, other individuals may not

the acceptance of his love by a woman and his representation to

infringe on his right to privacy. The CA, therefore, erred in limiting

fulfill that promise thereafter becomes the proximate cause of the

the application of Article 26(1) of the Civil Code only to residences.

giving of herself unto him a sexual congress, proof that he had, in

reality, no intention of marrying her and that the promise was only

WILLAWARE PRODUCTS CORPORATION vs. JESICHRIS

a subtle scheme or deceptive device to entice or inveigle her to

MANUFACTURING CORPORATION

accept him and to obtain her consent to the sexual act, could

G.R. No. 195549, September 3, 2014

justify the award of damages pursuant to article 21 of the new civil

code not because of such promise to marry but because of the

The concept of unfair competition under Article 28 is very much

fraud and deceit behind it and the wilful injury to her honor and

broader than that covered by intellectual property laws. Article 28

reputation which followed thereafter.

of the Civil Code provides that unfair competition in agricultural,

commercial or industrial enterprises or in labor through the use of

University of the East vs Jader, G.R. NO. 132344, Feb. 7,

force, intimidation, deceit, machination or any other unjust,

2000

oppressive or high-handed method shall give rise to a right of

action by the person who thereby suffers damage.

A law student was allowed to graduate by his school with a failing

grade but was later on prohibited by the said school to take the

Geluz vs CA, July 20, 1961

bar exams. The negligent act of a professor who fails to observe

the rules of the school, for instance by not promptly submitting a

It is unquestionable that the appellants act in provoking the

students grade, is not only imputable to the professor but is an

abortion of appellees wife, without medical necessity to warrant

act of the school, being his employer.

it, was a criminal and morally reprehensible act, that cannot be to

severely condemned; and the consent of the woman or that of her

husband does not excuse it. But the immorality or illegality of the

Nial vs. Bayadog 328 SCRA 122, March 14, 2000

act does not justify an award of damage that, under the

circumstances on record, have no factual or legal basis.

In this case, at the time of Pepito and respondents marriage, it

cannot be said that they have lived with each other as husband

Quimiguing vs ICAO, 34 SCRA 132 (1970

and wife for at least five years prior to their wedding day because
their cohabitation is not exclusive. The Court ruled that the

A conceived child, although as yet unborn, is given by law a

cohabitation contemplated under said provisions must be in the

provisional personality of its own for all purposes favorable to it,

nature of a perfect union that is valid under the law but rendered

as explicitly provided under article 40 of the civil code.

imperfect only by the absence of the marriage contract and

characterized by exclusivity meaning nothird party was involved

Cario v. Cario, G.R. NO. 132529 , Feb. 02, 2001 351 SCRA

at anytime within the 5 years andcontinuity that is unbroken.

127
Soriano v. Felix, L-9005, June 20, 1958
Whether or not the certification by the registrar of the nonexistence of marriage license is enough to prove non-issuance

The affidavit is for the purpose of proving the basis for exemption

thereof. The records reveal that the marriage contract of petitioner

from the marriage license. Even if there is failure on the part of

and the deceased bears no marriage license number and, as

the solemnizing officer to execute the necessary affidavit, such

certified by the Local Civil Registrar of San Juan, Metro Manila,

irregularity will not invalidate the marriage for the affidavit is not

their office has no record of such marriage license.

being required of the parties.

Alcantara v. Alcantara, G.R. NO. 167746 , Aug. 28,2007 531

Morigo v. People, G.R. NO. 145226 , Feb. 6, 200

SCRA 446
The mere private act of signing a marriage contract bears no
Whether or not, a marriage license issued by a municipality or city

semblance to a valid marriage and thus, needs no judicial

to a non-resident invalidates the license. Issuance of a marriage

declaration of nullity. Such act alone, without more, cannot be

license in a city or municipality, not the residence of either of the

deemed to constitute an ostensibly valid marriage for which

contracting parties, and issuance of a marriage license despite the

petitioner might be held liable for bigamy unless he first secures a

absence of publication or prior to the completion of the 10-day

judicial declaration of nullity before he contracts a subsequent

period for publication are considered mere irregularities that do

marriage.

not affect the validity of the marriage

MINORU FUJIKI v. MARIA PAZ GALELA MARINAY, G.R. No.

196049, June 26, 2013

The marriage between the late Sen. Tamano and Zorayda was

The Rule on Declaration of Absolute Nullity of Void Marriages and

celebrated in 1958, solemnized under civil and Muslim rites. The

Annulment of Voidable Marriages (A.M. No. 02-11-10-SC) does not

only law in force governing marriage relationships between

apply in a petition to recognize a foreign judgment relating to the

Muslims and non-Muslims alike was the Civil Code of 1950, under

status of a marriage where one of the parties is a citizen of a

the provisions of which only one marriage can exist at any given

foreign country.

time.

REPUBLIC OF THE PHILIPPINES v. LIBERTY D. ALBIOS, G.R.

Pilapil vs. Ibay-Somera, G.R. NO. 80116 June 30, 1989

No. 198780. October 16, 2013

Whether or not, the complainant, a foreigner, qualify as an
A marriage, contracted for the sole purpose of acquiring American

offended spouse having obtained a final divorce decree under his

citizenship is NOT void ab initio on the ground of lack of consent.

national law prior to his filing the criminal complaint. The person

Under Article 2 of the Family Code, consent is an essential

who initiates the adultery case must be an offended spouse, and

requisite of marriage. Article 4 of the same Code provides that the

by this is meant that he is still married to the accused spouse, at

absence of any essential requisite shall render a marriage void ab

the time of the filing of the complaint.

initio. Under said Article 2, for consent to be valid, it must be (1)

freely given and (2) made in the presence of a solemnizing officer.

Recio vs. Recio G.R. NO. 138322. October 2, 2001

A freely given consent requires that the contracting parties

willingly and deliberately enter into the marriage. Consent must

Whether or not the divorce must be proved before it is to be

be real in the sense that it is not vitiated nor rendered defective

recognized in the Philippines. Before a foreign divorce decree can

by any of the vices of consent under Articles 45 and 46 of the

be recognized by our courts, the party pleading it must prove the

Family Code, such as fraud, force, intimidation, and undue

divorce as a fact and demonstrate its conformity to the foreign law

influence. Consent must also be conscious or intelligent, in that

allowing it. Presentation solely of the divorce decree is insufficient.

the parties must be capable of intelligently understanding the

nature of, and both the beneficial or unfavorable consequences of

Rep. v. Orbecido, G.R. NO. 154380, Oct. 05, 2005

their act. Their understanding should not be affected by insanity,

intoxication, drugs, or hypnotism.

Whether or not, a Filipino Spouse can remarry under ARTICLE 26

OF THE FAMILY CODE where his,her spouse is later naturalized as a

Juliano-Llave v. Republic, G.R. NO. 169766 , Mar. 30, 2011

foreign citizen and obtains a valid divorce decree capacitating him

646 SCRA 637

or her to remarry. The reckoning point is not the citizenship of the

parties at the time of the celebration of the marriage, but their

parties of sexual cooperation for the procreation of children is

citizenshipat the time a valid divorce is obtained abroad by the

equivalent to psychological incapacity.

alien spouse capacitating the latter to remarry.

Ochosa v. Alano, G.R. NO. 167459 , Jan. 26, 2011 640 SCRA
Corpuz v. Sto. Tomas, G.R.NO. 186571, Aug. 11, 2010

517

In Gerberts case, since both the foreign divorce decree and the

In this case the court proved that respondent was the sex partner

national law of the alien, recognizing his or her capacity to obtain

of many military officials. In view of the foregoing, the badges of

a divorce, purport to be official acts of a sovereign authority,

Bonas alleged psychological incapacity, i.e., her sexual infidelity

Section 24, Rule 132 of the Rules of Court comes into play. This

and abandonment, can only be convincingly traced to the period

Section requires proof, either by (1) official publications or (2)

of time after her marriage to Jose and not to the inception of the

copies attested by the officer having legal custody of the

said marriage.

documents. If the copies of official records are not kept in the

Philippines, these must be (a) accompanied by a certificate issued

REPUBLIC OF THE PHILIPPINES v. RODOLFO O. DE

by the proper diplomatic or consular officer in the Philippine

GRACIA G.R. No. 171577, February 12, 2014

foreign service stationed in the foreign country in which the record

is kept and (b) authenticated by the seal of his office.

Psychological incapacity, as a ground to nullify a marriage under

Article 36 of the Family Code, should refer to no less than a mental

Santos v. Court of Appeals, 240 SCRA 20 (1995)

not merely physical incapacity that causes a party to be truly

incognitive of the basic marital covenants that concomitantly

The Supreme Court enumerated the three basic requirements of

must be assumed and discharged by the parties to the marriage

psychological incapacity as a ground for declaration of nullity of

which, as so expressed in Article 68 of the Family Code, among

the marriage: (a) gravity; (b) juridical antecedence; and (c)

others, include their mutual obligations to live together, observe

incurability.

love, respect and fidelity and render help and support. There is
hardly any doubt that the intendment of the law has been to

Chi Ming Tsoi vs CA, 266 SCRA 324 (1997)

confine the meaning of psychological incapacity to the most

serious cases of personality disorders clearly

In this case, there was no sexual contact between the parties

demonstrative of an utter insensitivity or inability to give

since their marriage on May 22, 1988 up to Mar. 15, 1989 or for

meaning and significance to the marriage.

almost a year. The senseless and protracted refusal of one of the

Mendoza v. Republic, G.R. NO. 157649,Nov 12, 2012 685

interpret the provision on a case-to-case basis; guided by

SCRA 16

experience, the findings of experts and researchers in

psychological disciplines, and by decisions of church tribunals.

Here, the experts testimony on Dominics psychological profile did

not identify, much less prove, the root cause of his psychological

Tenebro v. CA, G.R. NO. 150758 , Feb. 18, 2004 423 SCRA

incapacity because said expert did not examine Dominic in person

272

before completing her report but simply relied on other peoples

recollection and opinion for that purpose. Expert evidence

Whether or not, the nullity of the second marriage on the ground

submitted here did not establish the precise cause of the

of PI is a valid defense for the crime of bigamy. The declaration of

supposed psychological incapacity of Dominic, much less show

the nullity of the second marriage on the ground of psychological

that the psychological incapacity existed at the inception of the

incapacity is not an indicator that petitioners marriage to Ancajas

marriage.

lacks the essential requisites for validity.

Marcos vs Marcos, 343 SCRA 755 (2000)

Nollora v. People, G.R. NO.191425 , Sept. 7, 2011 657 SCRA

330

If the totality of evidence presented is enough to sustain a finding

of psychological incapacity, then actual medical examination of

Indeed, Article 13(2) of the Code of Muslim Personal Laws states

the person concerned need not be resorted to.

that [i]n case of a marriage between a Muslim and a non-Muslim,

solemnized not in accordance with Muslim law or this Code, the

VALERIO E. KALAW vs. MA. ELENA FERNANDEZ

[Family Code of the Philippines, or Executive Order NO. 209, in lieu

G.R. No. 166357, January 14, 2015

of the Civil Code of the Philippines] shall apply. Thus, regardless

of his professed religion, Nollora cannot claim exemption from

Lest it be misunderstood, we are not suggesting the abandonment

liability for the crime of bigamy.

of Molina in this case. We simply declare that, as aptly stated by

Justice Dante O. Tinga in Antonio v. Reyes, there is need to

Rep. v. Nolasco, G.R. NO. 94053 , Mar. 17, 1993 220 SCRA

emphasize other perspectives as well which should govern the

20

disposition of petitions for declaration of nullity under Article 36.

At the risk of being redundant, we reiterate once more the

In the case at bar, the Court considers that the investigation

principle that each case must be judged, not on the basis of a

allegedly conducted by respondent in his attempt to ascertain

priori assumptions, predilections or generalizations but according

Janet Monica Parkers whereabouts is too sketchy to form the basis

to its own facts. And, to repeat for emphasis, courts should

of a reasonable or well-founded belief that she was already dead.

When he arrived in San Jose, Antique after learning of Janet

affidavit of reappearance is not the proper remedy when the

Monicas departure, instead of seeking the help of local authorities

person declared presumptively dead has never been absent.

or of the British Embassy, he secured another seamans contract

and went to London, a vast city of many millions of inhabitants, to

Ong v. Ong, G.R. NO. 153206, Oct. 23, 2006 505 SCRA 76

look for her there.

Also without merit is the argument of William that since Lucita has
Valdez v. Republic, G.R. NO.180863 , Sept. 08, 2009 598

abandoned the family, a decree of legal separation should not be

SCRA 646

granted, following Art. 56, par. (4) of the Family Code which
provides that legal separation shall be denied when both parties

Since death is presumed to have taken place by the seventh year

have given ground for legal separation. The abandonment referred

of absence, Sofio is to be presumed dead starting October 1982.

to by the Family Code is abandonment without justifiable cause for

To retroactively apply the provisions of the Family Code requiring

more than one year.

petitioner to exhibit well-founded belief will, ultimately, result in

the invalidation of her second marriage, which was valid at the

Pacete vs. Carriaga, G.R. NO. 53880, Mar. 17, 1994 231

time it was celebrated.

SCRA 321

Rep. v. Tango, G.R. NO.161062 , Jul. 31, 2009 594 SCRA 560

Whether or not, the order declaring in default a respondent in a

legal separation case amounts to grave abuse of discretion. In

By express provision of law, the judgment of the court in a

case of non- appearance of the defendant, the court shall order

summary proceeding shall be immediately final and executory. As

the prosecuting attorney to inquire whether or not a collusion

a matter of course, it follows that no appeal can be had of the trial

between the parties exists. If there is no collusion, the prosecuting

courts judgment in a summary proceeding for the declaration of

attorney shall intervene for the State in order to take care that the

presumptive death of an absent spouse under Article 41 of the

evidence for the plaintiff is not fabricated.

Family Code
Arcaba vs. Batocael, G.R. NO.146683 , Nov.22, 2001 370
CELERINA J. SANTOS vs. RICARDO T. SANTOS, G.R. No.

SCRA 414

187061, 08 OCTOBER 2014

Respondents having proven by a preponderance of evidence that
The proper remedy for a judicial declaration of presumptive death

Cirila and Francisco lived together as husband and wife without a

obtained by extrinsic fraud is an action to annul the judgment. An

valid marriage, the inescapable conclusion is that the donation

made by Francisco in favor of Cirila is void under Art. 87 of the

Consequently, as correctly held by the CA, Marilou acquired

Family Code.

ownership of the subject property. All rights and title of the

judgment obligor are transferred upon the expiration of the right

Dewara v. Lamela G.R. NO. 179010, Apr. 11, 2011 647 SCRA

of redemption. And where the redemption is made under a

483

property regime governed by the conjugal partnership of gains,

Article 109 of the Family Code provides that property acquired by

All property of the marriage is presumed to belong to the conjugal

right of redemption is the exclusive property of the spouses

partnership, unless it be proved that it pertains exclusively to the

redeeming the property.

husband or to the wife. Registration in the name of the husband or

the wife alone does not destroy this presumption.

Ferrer v. Ferrer, G.R. NO.166496 , Nov. 29, 2006 508 SCRA

570

BOBBY TAN, v. GRACE ANDRADE, ET AL. v. BOBBY TAN, G.R.

No. 172017 / G.R. No. 171904 August 7, 2013

The obligation to reimburse rests on the spouse upon whom

ownership of the entire property is vested. There is no obligation

The presumption under Article 160 of the New Civil Code, that

on the part of the purchaser of the property, in case the property

property acquired during marriage is conjugal, does not apply

is sold by the owner- spouse.

where there is no showing as to when the property alleged to be

conjugal was acquired. The presumption cannot prevail when the

Pana v. Heirs of Jose Juanite G.R. NO. 164201,Dec. 10, 2012

title is in the name of only one spouse and the rights of innocent

687 SCRA 414

third parties are involved. Moreover, when the property is

registered in the name of only one spouse and there is no showing

Contrary to Efrens contention, Article 121 above allows payment

as to when the property was acquired by same spouse, this is an

of the criminal indemnities imposed on his wife, Melecia, out of the

indication that the property belongs exclusively to the said

partnership assets even before these are liquidated. Indeed, it

spouse. Moreover, the presumption may be rebutted only with

states that such indemnities may be enforced against the

strong, clear, categorical and convincing evidence. There must be

partnership assets after the responsibilities enumerated in the

strict proof of the exclusive ownership of one of the spouses, and

preceding article have been covered. No prior liquidation of those

the burden of proof rests upon the party asserting it.

assets is required.

Villegas v. Lingan G.R. NO. 153839 , Jun. 29, 2007 526

MBTC v. Pascual, G.R. NO. 163744, Feb. 29, 2008 547 SCRA

SCRA 63

246

Termination of Conjugal Property Regime does not ipso facto End

Article 147 of the Family Code applies to the union of parties who

the Nature of Conjugal Ownership. While the declared nullity of

are legally capacitated and not barred by any impediment to

marriage of Nicholson and Florencia severed their marital bond

contract marriage, but whose marriage is nonetheless declared

and dissolved the conjugal partnership, the character of the

void under Article 36 of the Family Code, as in this case. Under

properties acquired before such declaration continues to subsist

this property regime, property acquired during the marriage is

as conjugal properties until and after the liquidation and partition

prima facie presumed to have been obtained through the couples

of the partnership.

joint efforts and governed by the rules on co-ownership. In the

present case, Salas did not rebut this presumption. In a similar

Espinosa v. Omaa, AC. 9081, Oct 12, 2011 659 SCRA 1

case where the ground for nullity of marriage was also

psychological incapacity, we held that the properties acquired

Extrajudicial dissolution of the conjugal partnership without

during the union of the parties, as found by both the RTC and the

judicial approval is void. The Court has also ruled that a notary

CA, would be governed by co-ownership.

public should not facilitate the disintegration of a marriage and

the family by encouraging the separation of the spouses and

Valdes vs. RTC Br. 102, QC G.R. NO. 122749, Jul. 31, 1996

extrajudicially dissolving the conjugal partnership, which is exactly

260 SCRA 221

what Omaa did in this case. The Kasunduan Ng Paghihiwalay

has no legal effect and is against public policy.

Whether or not, Articles 50, 51 and 52 in relation to Articles 102

and 129 of the Family Code govern the disposition of the family

Dio v. Dio, G.R. NO. 178044, Jan. 19, 2011 640 SCRA 178

dwelling in cases where a marriage is declared void ab initio,

including a marriage declared void by reason of the psychological

The trial court erred in ordering that a decree of absolute nullity of

incapacity of the spouses. The rules set up to govern the

marriage shall be issued only after liquidation, partition and

liquidation of either the absolute community or the conjugal

distribution of the parties properties under Article 147 of the

partnership of gains, the property regimes recognized for valid

Family Code. The ruling has no basis because Section 19(1) of the

and voidable marriages (in the latter case until the contract is

Rule does not apply to cases governed under Articles 147 and 148

annulled), are irrelevant to the liquidation of the co-ownership that

of the Family Code.

exists between common-law spouses.

JUAN SEVILLA, JR. v. EDEN VILLENA AGUILA, G.R. No.

Cario v. Cario, G.R. NO. 132529, Feb. 02, 2001 351 SCRA

202370, September 23, 2013

127

As to the property regime of petitioner Susan Nicdao and the

husband is voidable. The Supreme Court further ruled that the

deceased, Article 147 of the Family Code governs. This article

view that the disposal by the wife of their conjugal property

applies to unions of parties who are legally capacitated and not

without the husbands consent is voidable is supported by Article

barred by any impediment to contract marriage, but whose

173 of the Civil Code which states that contracts entered by the

marriage is nonetheless void for other reasons, like the absence of

husband without the consent of the wife when such consent is

a marriage license

required are annullable at her instance during the marriage and

within ten years from the transaction questioned. In the present

San Luis v. San Luis G.R. NO. 133743, Feb. 06, 2007 514

case, the fictitious Deed of Absolute Sale was executed on

SCRA 294

September 22, 1986, one month after or specifically on November

25, 1986, Leonardo died. Aurora as one of the heirs and the duly

In the instant case, respondent would qualify as an interested

appointed administratrix of Leonardos estate, had the right

person who has a direct interest in the estate of Felicisimo by

therefore to seek for the annulment of the Deed of Sale as it

virtue of their cohabitation, the existence of which was not denied

deprived her and the other legal heirs of Leonardo of their

by petitioners. If she proves the validity of the divorce and

hereditary rights.

Felicisimos capacity to remarry, but fails to prove that her

marriage with him was validly performed under the laws of the

Arriola v. Arriola, G.R. NO. 177703, Jan. 28, 2008 542 SCRA

U.S.A., then she may be considered as a co-owner under Article

666

144 76 of the Civil Code

Furthermore, Articles 152 and 153 specifically extend the scope of
SERCONSISION R. MENDOZA vs. AURORA MENDOZA

the family home not just to the dwelling structure in which the

FERMIN

family resides but also to the lot on which it stands. Thus, applying

G.R. No. 177235, July 07, 2014

these concepts, the subject house as well as the specific portion of

the subject land on which it stands are deemed constituted as a

As Leonardo and Serconsision were married sometime in 1985, the

family home by the deceased and petitioner Vilma from the

applicable provision governing the property relations of the

moment they began occupying the same as a family residence 20

spouses is Article 172 of the Civil Code of the Philippines which

years back

states that the wife cannot bind the conjugal partnership without
the husbands consent. In Felipe vs. Heirs of Maximo Aldon, a case
decided under the provisions of the Civil Code, the Supreme Court
had the occasion to rule that the sale of a land belonging to the
conjugal partnership made by the wife without the consent of the

Modequillo vs. Breva, G.R. No. 86355, May 31, 1990.

There is no need to constitute the same judicially or extrajudicially

as required in the Civil Code. If the family actually resides in the

Labagla vs. Santiago, G.R. NO. 132305, Dec. 04, 2001 371

premises, it is, therefore, a family home as contemplated by law

SCRA 360

Olivia De Mesa v. Acero, G.R. NO. 185064 Jan. 16, 2012 663

A baptismal certificate, a private document, is not conclusive proof

SCRA 40

of filiation. More so are the entries made in an income tax return,

which only shows that income tax has been paid and the amount

The family homes exemption from execution must be set up and

thereof.

proved to the Sheriff before the sale of the property at public

auction. The petitioners now are barred from raising the same.

Puno v. Puno Ent. Inc., G.R. NO. 177066, Sept. 11, 2009

Failure to do so estop them from later claiming the said

599 SCRA 585

exemption.
A certificate of live birth purportedly identifying the putative father
Manacop vs. CA, 277 SCRA 57 (1997)

is not competent evidence of paternity when there is no showing

that the putative father had a hand in the preparation of the

Articles 152 and 153 of the Family Code do not have a retroactive

certificate. The local civil registrar has no authority to record the

effect such that all existing family residences are deemed to have

paternity of an illegitimate child on the information of a third

been constituted as family homes at the time of their occupation

person.

prior to the effectivity of the Family Code and are exempt from
execution for the payment of obligations incurred before the

DE LA CRUZ v. GRACIA, G.R. No. 177728, July 31, 2009

effectivity of the Family Code.

1) Where the private handwritten instrument is the lone piece of
RODOLFO S. AGUILAR vs. EDNA G. SIASAT

evidence submitted to prove filiation, there should be strict

G.R. No. 200169, January 28, 2015

compliance with the requirement that the same must be signed by

the acknowledging parent; and

As petitioner correctly argues, Alfredo Aguilars SSS Form E-1

2) Where the private handwritten instrument is accompanied by

satisfies the requirement for proof of filiation and relationship to

other relevant and competent evidence, it suffices that the claim

the Aguilar spouses under Article 172 of the Family Code; by itself,

of filiation therein be shown to have been made and handwritten

said document constitutes an admission of legitimate filiation in a

by the acknowledging parent as it is merely corroborative of such

public document or a private handwritten instrument and signed

other evidence.

by the parent concerned.

GRACE M. GRANDE v. PATRICIO T. ANTONIO, G.R. No.

time they were born, there was an existing valid marriage

206248. February 18, 2014

between respondent and his first wife, Teresita B. Tabiliran.

An illegitimate child may use the surname of his father if the latter
has expressly recognized their filiation. However, the child is

ROSARIO MATA CASTRO AND JOANNE BENEDICTA

under no compulsion to use his fathers surname. When Antonio

CHARISSIMA M. CASTRO, A.K.A. MARIA SOCORRO M.

recognized Andre Lewis and Jerard Patrick as his sons, the two

CASTRO AND JAYROSE M. CASTRO vs JOSE MARIA JED

children had the right to use the surname of Antonio. However,

LEMUEL GREGORIO AND ANA MARIA REGINA GREGORIO

they were under no compulsion or mandate to use the same. The

G.R. NO. 188801, 15 October 2014, SECOND DIVISION

law uses the word may, which dictates that it is merely

(Leonen, J.)

permissive.
For the adoption to be valid, petitioners consent was required by
Tonog vs. CA, G.R. NO. 122906 , Feb. 07, 2002 376 SCRA

Republic Act No. 8552. Personal service of summons should have

523

been effected on the spouse and all legitimate children to ensure

that their substantive rights are protected. It is not enough to rely

In the case at bar, bearing in mind that the welfare of the said

on constructive notice as in this case. Surreptitious use of

minor as the controlling factor, the appellate court did not err in

procedural technicalities cannot be privileged over substantive

allowing her father to retain in the meantime parental custody

statutory rights.

over her. Meanwhile, the child should not be wrenched from her
familiar surroundings, and thrust into a strange environment away

In re: Adoption of Michelle & Michael Lim G.R. NO.168992-

from the people and places to which she had apparently formed

93, May 21, 2009 588 SCRA 98

an attachment.
The filing of a case for dissolution of the marriage between
Abadilla vs. Tabiliran, Jr. A.M NO. MTJ-92-716, Oct. 25, 1995

petitioner and Olario is of no moment. It is not equivalent to a

249 SCRA 447

decree of dissolution of marriage. Until and unless there is a

judicial decree for the dissolution of the marriage between

Whether or not, a child born out of wedlock, by parents who have

petitioner and Olario, the marriage still subsists. That being the

a legal impediment to marry each other, can be legitimated. As a

case, joint adoption by the husband and the wife is required.

lawyer and a judge, respondent ought to know that, despite his

subsequent marriage to Priscilla, these three children cannot be

Gan vs. Reyes, G.R. NO.145527, May.28, 2002 382 SCRA

legitimated nor in any way be considered legitimate since at the

357

The liability for the accident, whether caused by the negligence of

A judgment ordering for support is immediately executory despite

the minor driver or mechanical detachment of the steering wheel

pendency of appeal.

guide of the jeep, must be pinned on the minors parents primarily.

The negligence of petitioner St. Marys Academy was only a

De Asis vs. CA, G.R. NO.127578, Feb. 15, 1999 303 SCRA

remote cause of the accident.

176
Neri v. Heirs of Hadji Yusop, G.R. No 194366, Oct. 10, 2012
Whether or not, a renunciation of the existence of filiation of the

683 SCRA 253

child and the putative father, made by the mother, is valid. It is

true that in order to claim support, filiation and/or paternity must

Administration includes all acts for the preservation of the

first be shown between the claimant and the parent, however,

property and the receipt of fruits according to the natural purpose

paternity and filiation or the lack of the same is a relationship that

of the thing. Any act of disposition or alienation, or any reduction

must be judicially established and it is for the court to declare its

in the substance of the patrimony of child, exceeds the limits of

existence or absence.

administration. Thus, a father or mother, as the natural guardian

of the minor under parental authority, does not have the power to

Laxamana v. Laxamana, G.R. NO. 144763, Sept. 3, 2002

dispose or encumber the property of the latter.

388 SCRA 296

FE FLORO VALINO vs. ROSARIO D. ADRIANO, FLORANTE D.
It is clear that every child [has] rights which are not and should

ADRIANO, RUBEN D. ADRIANO, MARIA TERESA ADRIANO

not be dependent solely on the wishes, much less the whims and

ONGOCO, VICTORIA ADRIANO BAYONA, AND LEAH

caprices, of his parents. His welfare should not be subject to the

ANTONETTE D. ADRIANO

parents say-so or mutual agreement alone. Where, as in this case,

G.R. No. 182894, 22 April 2014, EN BANC (Mendoza J.)

the parents are already separated in fact, the courts must step in
to determine in whose custody the child can better be assured the

The law gives the right and duty to make funeral arrangements to

rights granted to him by law. The need, therefore, to present

Rosario, she being the surviving legal wife of Atty. Adriano. The

evidence regarding this matter, becomes imperative.

fact that she was living separately from her husband and was in
the United States when he died has no controlling significance. To

St. Marys Academy v. Carpitanos, G.R. NO. 143363, Feb. 6,

say that Rosario had, in effect, waived or renounced, expressly or

2002 376 SCRA 473

impliedly, her right and duty to make arrangements for the funeral
of her deceased husband is baseless. The right and duty to make
funeral arrangements, like any other right, will not be considered

as having been waived or renounced, except upon clear and

International telephone calls placed by Bay Super Orient Card

satisfactory proof of conduct indicative of a free and voluntary

holders, the telecommunication services provided by PLDT and its

intent to that end.

business of providing said services are not personal properties

under Article 308 of the Revised Penal Code. The construction by

It is generally recognized that the corpse of an individual is

the respondents of Article 308 of the said Code to include, within

outside the commerce of man. However, the law recognizes that a

its coverage, the aforesaid international telephone calls,

certain right of possession over the corpse exists, for the purpose

telecommunication services and business is contrary to the letter

of a decent burial, and for the exclusion of the intrusion by third

and intent of the law.

persons who have no legitimate interest in it. This quasi-property

right, arising out of the duty of those obligated by law to bury their

Tsai vs. CA, 366 SCRA 324

dead, also authorizes them to take possession of the dead body

for purposes of burial to have it remain in its final resting place, or

In the instant case, the parties: (1) executed a contract styled as

to even transfer it to a proper place where the memory of the

Real Estate Mortgage and Chattel Mortgage, instead of just Real

dead may receive the respect of the living. This is a family

Estate Mortgage if indeed their intention is to treat all properties

right. There can be no doubt that persons having this right may

included therein as immovable, and (2) attached to the said

recover the corpse from third persons.

contract a separate LIST OF MACHINERIES & EQUIPMENT. These

facts, taken together, evince the conclusion that the parties

1.

FILOTEO A. ALANO vs. ZENAIDA MAGUD-LOGMAO,

intention is to treat these units of machinery as chattels.

G.R. No. 175540, 14 April 2014

Caltex Phils., Inc., vs. CBAA, May 31, 1982
There can be no cavil that petitioner employed reasonable means
to disseminate notifications intended to reach the relatives of the

SC held that the said equipment and machinery, as appurtenances

deceased. The only question that remains pertains to the

to the gas station building or shed owned by Caltex (as to which it

sufficiency of time allowed for notices to reach the relatives of the

is subject to realty tax) and which fixtures are necessary to the

deceased.

operation of the gas station, for without them the gas station
would be useless, and which have been attached or affixed

PROPERTY

permanently to the gas station site or embedded therein, are

taxable improvements and machinery within the meaning of the

Laurel vs. Abrogar, G.R. NO. 155076, Jan. 13, 2009

Assessment Law and the Real Property Tax Code.

MERALCO vs. CBAA, May 31, 1982

While the two storage tanks are not embedded in the land, they

When a person who finds a thing that has been lost or mislaid by

may, nevertheless, be considered as improvements on the land,

the owner takes the thing into his hands, he acquires physical

enhancing its utility and rendering it useful to the oil industry. It is

custody only and does not become vested with legal possession.

undeniable that the two tanks have been installed with some

In assuming such custody, the finder is charged with the obligation

degree of permanence as receptacles for the considerable

of restoring the thing to its owner. It is thus respondents duty to

quantities of oil needed by Meralco for its operations.

report to his superior or his officemates that he found something.

Republic vs CA, 132 SCRA 514

Mercado v. CA, 162 SCRA 75, 85 1988

Properties of public dominion is not susceptible to private

appropriation and cannot be acquired by acquisitive prescription

To be deemed a builder in good faith, it is essential that a person

and thus they cannot be registered under the Land Registration

asserts title to the land on which he builds, i.e., it is essential that

Law and be the subject of a torrents title.

he be a possessor in concept of owner and that he be unaware

that there exists in his title or mode of acquisition any flaw which

Manila International Airport Authority vs CA, 495 SCRA 591

invalidates it.

Properties of public dominion, being for public use, are not subject

Nuguid v. CA, 452 SCRA 243, 252 (2005)

to levy, encumbrance or disposition through public or private sale.

Any encumbrance, levy on execution or auction sale of any

The right of retention is considered as one of the measures

property of public dominion is void for being contrary to public

devised by the law for the protection of builders in good faith. Its

policy.

object is to guarantee full and prompt reimbursement as it permits

the actual possessor to remain in possession while he has not

German Management & Services, Inc. v. CA. 177 SCRA 495

been reimbursed (by the person who defeated him in the case for

(1989)

possession of the property) for those necessary expenses and

useful improvements made by him on the things possessed.

The doctrine of self-help can only be exercised at the time of

actual or threatened dispossession, and not when possession has

BPI v. SANCHEZES, G.R. No. 179518, November 11, 2014

already been lost.

The Sanchezes have the following options: (1) acquire the
Palero-Tan v. Urdaneta AM NO. P072399, Jun. 18, 2008

property with the townhouses and other buildings and

improvements that may be thereon without indemnifying TSEI or
the intervenors; (2) demand from TSEI or the intervenors to

demolish what has been built on the property at the expense of

Agne v. Director of Lands, 181 SCRA 793, 805 (1990)

TSEI or the intervenors; or (3) ask the intervenors to pay the price
of the land. As such, the Sanchezes must choose from among

There need be no act on their part to subject the old river bed to

these options within thirty (30) days from finality of this Decision.

their ownership, as it is subject thereto ipso jurefrom the moment

Should the Sanchezes opt to ask from the intervenors the value of

the mode of acquisition becomes evident, without need of any

the land, the case shall be remanded to the RTC for the sole

formal act of acquisition. Such abandoned riverbed had fallen to

purpose of determining the fair market value of the lot at the time

the private ownership of the owner of the land through which the

the same were taken from the Sanchezes in 1988.

new river bed passes even without any formal act of his will and
any unauthorized occupant thereof will be considered as a

Pecson v. Court of Appeals, G.R. No. 115814 May 26, 1995

trespasser.

Thus in strict point of law, Article 448 is not apposite to the case at
bar. Nevertheless, we believe that the provision therein on

Bahais v. Pascual, G.R. 169272,July 11, 2012

indemnity may be applied by analogy considering that the primary

Under Articles 476 and 477 of the Civil Code, the two (2)

intent of Article 448 is to avoid a state of forced co-ownership and

indispensable requisites in an action to quiet title are: (1) that the

that the parties, including the two courts below, in the main agree

plaintiff or complainant has a legal or an equitable title to or

that Articles 448 and 546 of the Civil Code are applicable and

interest in the real property subject of the action; and (2) that a

indemnity for the improvements may be paid although they differ

deed, claim, encumbrance or proceeding is claimed to be casting

as to the basis of the indemnity.

cloud on his title. In this case, an action to quiet title is not the
proper remedy because petitioner no longer had any legal or

Vda. de Nazareno v. CA, 257 SCRA 598 (1996)

equitable title to or interest in the lots. The petitioners status as

possessor and owner of the lots had been settled in the final and

Since the subject land was the direct result of the dumping of

executory December 4, 1985 decision of the Bureau of Lands that

sawdust by the Sun Valley Lumber Co., the accretion was man-

the DENR Secretary and the OP affirmed on appeal. Thus, the

made, hence, Art. 457 does not apply. Ergo, the subject land is

petitioner is not entitled to the possession and ownership of the

part of the public domain.

lots.

Cureg v. IAC, 177 SCRA 313 (1989)

Sanchez v. Court of Appeals, 404 SCRA 541, 548, June 20,

2003

The accretion to registered land does not preclude acquisition of

the additional area by another person through prescription.

Co-ownership is a form of trust and every co-owner is a trustee for

the others, hence, the relationship of such co-owner to the other

Only the redeeming co-owner and the buyer are the

co-owners is fiduciary in character and attribute.

indispensable parties in an action for legal redemption, to the

exclusion of the seller/co-owner A party who is not the co-owner of

Santos v. Heirs of Lustre, G.R. NO. 151016, Aug. 06, 2008

a land subject of a compromise agreement cannot claim that he

was defrauded when the parties in the compromise agreement

Any adverse ruling in the earlier case will not, in any way,

entered into the same. As a third party to the agreement, he is not

prejudice the heirs who did not join, even if such case was actually

indispensable for the agreement to materialize.

filed in behalf of all the co-owners. In fact, if an action for recovery

of property is dismissed, a subsequent action by a co- heir who did
not join the earlier case should not be barred by prior judgment.

Parilla v. Pilar, G.R. NO. 167680, Nov. 30, 2006

Rey Castigador Catedrilla v. Mario and Margie Lauron, G.R.

One whose interest is merely that of a holder, such as a mere

No. 179011. April 15, 2013

tenant, agent or usufructuary, is not qualified to become a

possessor builder in good faith.

In suits to recover properties, all co-owners are real parties in

interest. However, pursuant to Article 487 of the Civil Code and

Bunyi v. Factor, G.R. NO. 172547, Jun. 30, 2009 591 SCRA

the relevant jurisprudence, any one of them may bring an action,

350

any kind of action for the recovery of co-owned properties.

Therefore, only one of the co-owners, namely the co-owner who

For one to be considered in possession, one need not have actual

filed the suit for the recovery of the co-owned property, is an

or physical occupation of every square inch of the property at all

indispensable party thereto. The other co-owners are not

times. Possession can be acquired not only by material

indispensable parties. They are not even necessary parties, for a

occupation, but also by the fact that a thing is subject to the

complete relief can be afforded in the suit even without their

action of ones will or by the proper acts and legal formalities

participation, since the suit is presumed to have been filed for the

established for acquiring such right, possession can be acquired

benefit of all co-owners.

by juridical acts.

VIRGINIA Y. GOCHAN, FELIX Y. GOCHAN III, LOUISE Y.

EDCA Publ. V. Santos, G.R. NO. 80298, Apr. 26, 1990 184

GOCHAN, ESTEBAN Y. GOCHAN, JR., and DOMINIC Y.

SCRA 614

GOCHAN v. CHARLES MANCAO, G.R. No. 182314, November

13, 2013

Actual delivery of the books having been made, Cruz acquired

ownership over the books which he could then validly transfer to

Hidalgo Enterprises v. Balandan, et. al, G.R. No. L-3422

the private respondents. The fact that he had not yet paid for

Jun. 13, 1952

them to EDCA was a matter between him and EDCA and did not
impair the title acquired by the private respondents to the books.

Nature has created streams, lakes and pools which attract

children. Lurking in their waters is always the danger of drowning.

PILAR DEVELOPMENT CORPORATION v. RAMON DUMADAG,

Against this danger children are early instructed so that they are

ET. AL., G.R. No. 194336, March 11, 2013

sufficiently presumed to know the danger; and if the owner of

private property creates an artificial pool on his own property,

Squatters have no possessory rights over the land intruded upon.

merely duplicating the work of nature without adding any new

The length of time that they may have physically occupied the

danger, . . . (he) is not liable because of having created an

land is immaterial; they are deemed to have entered the same in

attractive nuisance.

bad faith, such that the nature of their possession is presumed to

have retained the same character throughout their occupancy.

Gancayco v. Quezon City, G.R. NO. 177807,Oct 11, 2011

Quintanilla v. Abangan, G.R. NO. 160613, Feb.12, 2008

The wing walls do not per se immediately and adversely affect the
safety of persons and property. The fact that an ordinance may

As between a right of way that would demolish a fence of strong

declare a structure illegal does not necessarily make that structure

materials to provide ingress and egress to a public highway and

a nuisance.

another right of way which although longer will only require a van
or vehicle to make a turn, the second alternative should be

SMART COMMUNICATIONS, INC., v. ARSENIO ALDECOA, ET.

preferred. Mere convenience for the dominant estate is not what is

AL., G.R. No. 166330, September 11, 2013

required by law as the basis for setting up a compulsory

easement.

Commercial and industrial activities which are lawful in

themselves may become nuisances if they are so offensive to the

Reyes v. Ramos, G.R. No. 194488, February 11, 2015

senses that they render the enjoyment of life and property

uncomfortable. The fact that the cause of the complaint must be

Mere convenience for the dominant estate is not what is required

substantial has often led to expressions in the opinions that to be

by law as the basis of setting up a compulsory easement. Even in

a nuisance the noise must be deafening or loud or excessive and

the face of necessity, if it can be satisfied without imposing the

unreasonable. The determining factor when noise alone is the

easement, the same should not be imposed.

cause of complaint is not its intensity or volume. It is that the

noise is of such character as to produce actual physical discomfort

reasonable period. Only then when the non-fulfillment of the

and annoyance to a person of ordinary sensibilities, rendering

resolutory condition was brought to the donors knowledge that

adjacent property less comfortable and valuable. If the noise does

ownership of the donated property reverted to the donor as

that it can well be said to be substantial and unreasonable in

provided in the automatic reversion clause of the deed of

degree, and reasonableness is a question of fact dependent upon

donation.

all the circumstances and conditions. There can be no fixed

standard as to what kind of noise constitutes a nuisance.
LAND TITLES AND DEEDS
Republic v. Guzman, G.R. No. 132964, February 18, 2000
Legarda vs. Saleeby, G.R. NO. 8936, Oct. 2, 1915
The donation is null and void when (a) the deed of donation fails to
show the acceptance, or (b) where the formal notice of the

The real purpose of the Torrens system of registration is to quiet

acceptance made in a separate instrument is either not given to

title to land; to put a stop forever to any question of the legality of

the donor or else noted in the deed of donation, and in the

the title, except claims which were noted at the time of

separate acceptance.

registration, in the certificate, or which may arise subsequent

thereto.

Villanueva vs. Spouses Branoco, G.R. No. 172804, January

24, 2011

Sta. Lucia vs. Pasig, G.R.NO. 166838, June 15, 2011

When the donor used the words that the gift does not pass title

While a certificate of title is conclusive as to its ownership and

during my lifetime; but when I die, she shall be the true owner of

location, this does not preclude the filing of an action for the very

the two aforementioned parcels] the donor meant nothing else

purpose of attacking the statements therein. Mere reliance

than that she reserved of herself the possession and usufruct of

therefore on the face of the TCTs will not suffice as they can only

said two parcels of land until her death, at which time the donee

be conclusive evidence of the subject properties locations if both

would be able to dispose of them freely.

the stated and described locations point to the same area.

Quijada vs. CA, G.R. NO. 126444, Dec. 4, 1998

Republic vs. Santos, G.R.NO. 180027, July 18, 2012

Since no period was imposed by the donor on when must the

Jura Regalia simply means that the State is the original proprietor

donee comply with the condition, the latter remains the owner so

of all lands and, as such, is the general source of all private titles.

long as he has tried to comply with the condition within a

Thus, pursuant to this principle, all claims of private title to land,

save those acquired from native title, must be traced from some

Code. Moreover, under Section 48(b) of the PLA, as amended by

grant, whether express or implied, from the State. Absent a clear

Republic Act No. 1472, the 30-year period is in relation to

showing that land had been let into private ownership through the

possession without regard to the Civil Code, while under Section

States imprimatur, such land is presumed to belong to the State.

14(2) of P.D. No. 1529, the 30-year period involves extraordinary

prescription under the Civil Code, particularly Article 1113 in

SPOUSES BERNADETTE AND RODULFO VILBAR v. ANGELITO

relation to Article 1137.

L. OPINION, G.R. No. 176043. January 15, 2014

Krivenko vs. Register of Deeds 79 Phil 461
Registration is the operative act which gives validity to the

Aliens mat not acquire private or public agricultural lands.

transfer or creates a lien upon the land. A certificate of title serves

as evidence of an indefeasible and incontrovertible title to the

Ong Ching Po v. Court of Appeals G.R. NO. 113472, Dec. 20,

property in favor of the person whose name appears therein. Since

1994, 239 SCRA 341.

the spouses Vilbar did not cause the transfer of the certificate title
in their name, or at the very least, annotate or register such sale

The capacity to acquire private land is made dependent upon the

in the original title in the name of Dulos Realty, have no

capacity to acquire or hold lands of the public domain. Private land

indefeasible and incontrovertible title over Lot 20 to support their

may be transferred or only to individuals or entities qualified to

claim.

acquire lands of the public domain.

LUZVIMINDA APRAN CANLAS vs. REPUBLIC OF THE

Halili vs. Court of Appeals, 287 SCRA 465

PHILIPPINES
G.R. No. 200894, 10 November 2014, SECOND DIVISION

A natural-born citizen of the Philippines who has lost his

(Leonen J.)

citizenship may be a transferee of private lands, subject to

limitations provided by law.

In Heirs of Mario Malabanan v. Republic, the Court further clarified

the difference between Section 14(1) and Section 14(2) of P.D. No.

Director of Lands vs. Intermediate Appellate Court and

1529. The former refers to registration of title on the basis of

Acme, 146 SCRA 509

possession, while the latter entitles the applicant to the

registration of his property on the basis of prescription.

The time to determine whether a person acquiring land is qualified

Registration under the first mode is extended under the aegis of

is the time the right to own it is acquired and not the time to

the P.D. No. 1529 and the Public Land Act (PLA) while under the

register ownership.

second mode is made available both by P.D. No. 1529 and the Civil

Tan vs. Republic April 16, 2012

It is a recognized principle that a person dealing on a registered

land need not go beyond its certificate of title, it is also a firmly

Possession is open when it is patent, visible, apparent, notorious

settled rule that where there are circumstances which would put a

and not clandestine. It is continuous when uninterrupted,

party on guard and prompt him to investigate or inspect the

unbroken and not intermittent or occasional; exclusive when the

property being sold to him, such as the presence of

adverse possessor can show exclusive dominion over the land and

occupants/tenants thereon, it is expected from the purchaser of a

an appropriation of it to his own use and benefit; and notorious

valued piece of land to inquire first into the status or nature of

when it is so conspicuous that it is generally known and talked of

possession of the occupants. The burden of proving good faith lies

by the public or the people in the neighborhood.

with the second buyer (petitioners herein) which is not discharged

by simply invoking the ordinary presumption of good faith. After

REPUBLIC OF THE PHILIPPINES vs. EMETERIA G. LUALHATI

an assiduous assessment of the evidentiary records, this Court

G.R. No. 183511, March 25, 2015

holds that the petitioners are NOT buyers in good faith as they
failed to discharge their burden of proof.

It is not enough for the PENRO or CENRO to certify that a land is

alienable and disposable. The applicant for land registration must

SPOUSE PERALTA v. ABALON, G.R. No. 183448, June 30,

prove that the DENR Secretary had approved the land

2014

classification and released the land of the public domain as

alienable and disposable, and that the land subject of the

The established rule is that a forged deed is generally null and

application for registration falls within the approved area per

cannot convey title, the exception thereto, pursuant to Section 55

verification through survey by the PENRO or CENRO. In addition,

of the Land Registration Act, denotes the registration of titles from

the applicant for land registration must present a copy of the

the forger to the innocent purchaser for value. Thus, the qualifying

original classification approved by the DENR Secretary and

point here is that there must be a complete chain of registered

certified as a true copy by the legal custodian of the official

titles. This means that all the transfers starting from the original

records. These facts must be established to prove that the land is

rightful owner to the innocent holder for value and that includes

alienable and disposable. Respondent failed to do so because the

the transfer to the forger must be duly registered, and the title

certifications presented by respondent do not, by themselves,

must be properly issued to the transferee.

prove that the land is alienable and disposable.

Malabanan vs. Republic, 587 SCRA 172
Spouses Vallido v. Spouses Pono, et al., G.R. No. 200173.
April 15, 2013

Only when the property has become patrimonial can the

Although a deed or instrument affecting unregistered lands would

prescriptive period for the acquisition of property of the public

be valid only between the parties thereto, third parties would also

domain begin to run.

be affected by the registered deed or instrument on the theory of

constructive notice once it was further registered in accordance

Alvarez vs. PICOP Resources, Inc., 606 SCRA 444

with Section 194, i.e., the deed or instrument was written or

inscribed in the day book and the register book for unregistered

Forest lands cannot be alienated in favor of petitioner private

lands in the Office of the Register of Deeds for the province or city

persons or entities.

where the realty was located.

Tan vs. Republic, G.R. No. 193443 G.R. No. 193443, April

The only exception to the rule on constructive notice by

16, 2012

registration of the deed or instrument affecting unregistered realty

exists in favor of a third party with a better right. This

There must be an express declaration by the State that the public

exception is provided in Section 194, as amended by Act No. 3344,

dominion property is no longer intended for public service or the

to the effect that the registration shall be understood to be

development of the national wealth or that the property has been

without prejudice to a third party with a better right; and in

converted into patrimonial. Without such express declaration, the

paragraph (b) of Section 113 of P.D. No. 1529, to the effect that

property, even if classified as alienable or disposable, remains

any recording made under this section shall be without prejudice

property of the public dominion, pursuant to Article 420(2), and

to a third party with a better right.

thus incapable of acquisition by prescription.

For one to invoke the provisions of Section 14(2) and set up

WILLS AND SUCCESSION

acquisitive prescription against the State, it is primordial that the

status of the property as patrimonial be first established.

In the matter of the Testate Estate of Edward Christensen,

Furthermore, the period of possession preceding the classification

G.R. L-16749, January 31, 1963

of the property as patrimonial cannot be considered in

Whether or not, the intrinsic validity of the testamentary

determining the completion of the prescriptive period.

disposition should be governed by Philippine Law, when the

national law of the testator refers back to the Philippine Law.

AZNAR BROTHERS REALTY COMPANY vs. SPOUSES JOSE

Edward is domiciled in the Philippines hence, Philippine court must

AND MAGDALENA YBAEZ

apply its own laws which makes natural children legally

G.R. No. 161380, 21 April 2014 FIRST DIVISION (Bersamin

acknowledge as forced heirs of the parent recognizing them.

J.)

Vitug vs. Court of Appeals, G.R.NO. 82027, Mar. 29, 1990

183 SCRA 755

A will has been defined as a personal, solemn, revocable and free

the moment of death of the decedent. In this case, the purported

act by which a capacitated person disposes of his property and

waiver of hereditary rights cannot be considered effective.

rights and declares or complies with duties to take effect after his

Baltazar v. Laxa, G.R.NO. 174489, April, 11, 2012

death.

It is an established rule that [a] testament may not be disallowed

Cayatenao vs Leonidas, 129 SCRA 524

just because the attesting witnesses declare against its due

The law which governs Adoracion Campos will is the law of

execution; neither does it have to be necessarily allowed just

Pennsylvania, USA which is the national law of the decedent. It is

because all the attesting witnesses declare in favor of its

settled that as regards to the intrinsic validity of the provisions of

legalization; what is decisive is that the court is convinced by

the wills as provided for by article 16 and 1039 of the New Civil

evidence before it, not necessarily from the attesting witnesses,

Code, the national law of the decedent must apply.

although they must testify, that the will was or was not duly

Parish Priest of Victoria vs. Rigor, 89 SCRA 483

executed in the manner required by law.

The issue in this case is whether or not a male relative referred in

Echavez vs. Dozen Cons., G.R.NO. 192916, Oct. 11, 2010

the will should include those who are born after the testators

An attestation must state all the details the third paragraph of

death. To construe it as referring to the nearest male relative at

Article 805 requires. In the absence of the required avowal by the

any time after his death would render the provisions difficult to

witnesses themselves, no attestation clause can be deemed

apply and create uncertainty as to the disposition of the estate.

embodied in the Acknowledgement of the Deed of Donation Mortis

De Borja vs De Borja, G.R. No, L-28040, August 18, 1972

Causa.

There is no legal bar to a successor to dispose his or her share

Lopez v. Lopez, G.R.NO. 189984, Nov. 12, 2012

immediately after such death, even if the actual extent of such

The law is clear that the attestation must state the number of

share is not determined until the subsequent liquidation of the

pages used upon which the will is written. The purpose of the law

estate. The effect of such alienation is to be deemed limited to

is to safeguard against possible interpolation or omission of one or

what is ultimately adjudicated to the vendor heir.

some of its pages and prevent any increase or decrease in the

Bonilla vs Leon Barcena, G.R. L-41715, June 18, 1976

pages.

The right of the heirs to the property of the deceased vests in

Azuela v. CA, 487 SCRA 119

them even before the judicial declaration of their being declared

The signatures on the left-hand corner of every page signify,

as heirs. When Fortunata died, her claim or right to the parcel of

among others, that the witnesses are aware that the page they

land in litigation in civil case number 856 was not extinguished by

are signing forms part of the will. On the other hand, the

her death but was transmitted to her heirs upon her death.

signatures to the attestation clause establish that the witnesses

Borromeo-Herrera vs Borromeo, 152 SCRA 171

are referring to the statements contained in the attestation clause

The properties included in an existing inheritance cannot be the

itself.

subject of a contract. The heirs acquire a right to succession from

Lee v. Tambago, 544 SCRA 393

An acknowledgment is the act of one who has executed a deed in

This Court has held in a number of occasions that substantial

going before some competent officer or court and declaring it to

compliance is acceptable where the purpose of the law has been

be his act or deed. It involves an extra step undertaken whereby

satisfied, the reason being that the solemnities surrounding the

the signatory actually declares to the notary public that the same

execution of wills are intended to protect the testator from all

is his or her own free act and deed. The acknowledgment in a

kinds of fraud and trickery but are never intended to be so rigid

notarial will has a two-fold purpose: (1) to safeguard the testators

and inflexible as to destroy the testamentary privilege.

wishes long after his demise and (2) to assure that his estate is

In the case at bar, private respondent read the testators will and

administered in the manner that he intends it to be done.

codicil aloud in the presence of the testator, his three instrumental

Suroza vs. Honrado, 110 SCRA 388

witnesses, and the notary public. Prior and subsequent thereto,

In the opening paragraph of the will, it was stated that English was

the testator affirmed, upon being asked, that the contents read

a language understood and known to the testatrix but in its

corresponded with his instructions. Only then did the signing and

concluding paragraph, it was stated that the will was read to the

acknowledgement take place. There is no evidence, and petitioner

testatrix and translated into Filipino language. That could only

does not so allege, that the contents of the will and codicil were

mean that the will was written in a language not known to the

not sufficiently made known and communicated to the testator. On

illiterate testatrix and, therefore, it is void because of the

the contrary, with respect to the Huling Habilin, the day of the

mandatory provision of article 804 of the Civil Code that every will

execution was not the first time that Brigido had affirmed the truth

must be executed in a language or dialect known to the testator.

and authenticity of the contents of the draft. The uncontradicted

Garcia vs. Vasquez, 32 SCRA 489

testimony of Atty. Rino is that Brigido Alvarado already

The rationale behind the requirement of reading the will to the

acknowledged that the will was drafted in accordance with his

testator if he is blind or incapable of reading the will himself (as

expressed wishes even prior to 5 November 1977 when Atty. Rino

when he is illiterate), is to make the provisions thereof known to

went to the testators residence precisely for the purpose of

him, so that he may be able to object if they are not in accordance

securing his conformity to the draft.

with his wishes. That the aim of the law is to insure that the

Javellana vs. Ledesma GR. No. L-7179, 97 Phil 258

dispositions of the will are properly communicated to and

The subsequent signing and sealing by the notary of his

understood by the handicapped testator, thus making them truly

certification that the testament was duly acknowledged by the

reflective of his desire, is evidenced by the requirement that the

participants therein is no part of the acknowledgment itself nor of

will should be read to the latter, not only once but twice, by two

the testamentary act. Hence their separate execution out of the

different persons, and that the witnesses have to act within the

presence of the testatrix and her witnesses cannot be said to

range of his (the testators) other senses.

violate the rule that testaments should be completed without

Alvarado vs. Gaviola, Jr., 226 SCRA 348

interruption. 37
Cruz vs. Villasor NO.L-32213, 54 SCRA 31

The notary public before whom the will was acknowledged cannot

act; he is not a notary public. Any notarial act outside the limits of

be considered as the third instrumental witness since he cannot

his jurisdiction has no force and effect.

acknowledge before himself his having signed the will. This cannot

Celada v. Abena, 556 SCRA 569

be done because he cannot split his personality into two so that

While it is true that the attestation clause is not a part of the will,

one will appear before the other to acknowledge his participation

error in the number of pages of the will as stated in the attestation

in the making of the will.

clause is not material to invalidate the subject will. It must be

Caneda vs. CA, 222 SCRA 781

noted that the subject instrument is consecutively lettered with

The rule on substantial compliance in Article 809 cannot be

pages A, B, and C which is a sufficient safeguard from the

revoked or relied on by respondents since it presupposes that the

possibility of an omission of some of the pages. 38

defects in the attestation clause can be cured or supplied by the

Rodelas vs. Aranza, 119 SCRA 16

text of the will or a consideration of matters apparent therefrom

The photostatic or xerox copy of a lost or destroyed holographic

which would provide the data not expressed in the attestation

will may be admitted because then the authenticity of the

clause or from which it may necessarily be gleaned or clearly

handwriting of the deceased can be determined by the probate

inferred that the acts not stated in the omitted textual

court.

requirements were actually complied within the execution of the

Codoy vs. Calugay, 312 SCRA 333

will.

The word shall connotes a mandatory order. We have ruled that

Lopez v. Lopez, 685 SCRA 209

shall in a statute commonly denotes an imperative obligation

The statement in the Acknowledgment portion of the subject last

and is inconsistent with the idea of discretion and that the

will and testament that it consists of 7 pages including the page

presumption is that the word shall, when used in a statute is

on which the ratification and acknowledgment are written cannot

mandatory.

be deemed substantial compliance. The will actually consists of 8

Ajero vs. CA, 236 SCRA 488

pages including its acknowledgment which discrepancy cannot be

Thus, unless the unauthenticated alterations, cancellations or

explained by mere examination of the will itself but through the

insertions were made on the date of the holographic will or on

presentation of evidence aliunde.

testators signature, their presence does not invalidate the will

Guerrero v. Bihis, 521 SCRA 394

itself. The lack of authentication will only result in disallowance of

The issue in this case whether the will acknowledged by the

such changes.

testatrix and the instrumental witnesses before a notary public

Kalaw vs. Relova, 132 SCRA 237

acting outside the place of his commission satisfies the

To state that the Will as first written should be given efficacy is to

requirement under Article 806 of the Civil Code? Outside the place

disregard the seeming change of mind of the testatrix. But that

of his commission, he is bereft of power to perform any notarial

change of mind can neither be given effect because she failed to

authenticate it in the manner required by law by affixing her full

two wills contain essentially the same provisions and pertain to

signature.

property which in all probability are conjugal in nature, practical

Roxas vs. De Jesus, 134 SCRA 245

considerations dictate their joint probate.

As a general rule, the date in a holographic Will should include

Casiano vs CA 158 SCRA 451

the day, month, and year of its execution. However, when as in

Revocation under this condition to be effective must have

the case at bar, there is no appearance of fraud, bad faith, undue

complied with the two requirements: the overt act as mentioned

influence and pressure and the authenticity of the Will is

under the law; the intent to revoke on the part of the testator. The

established and the only issue is whether or not the date FEB.,61

document or paper burned by one of the witnesses was not

appearing on the holographic Will is a valid compliance with

satisfactorily established to be the will at all, much less the will of

Article 810 of the Civil Code, probate of the holographic Will

Adriana.

should be allowed under the principle of substantial compliance.

Adriana Maloto vs. CA, 158 SCRA 451

Labrador vs. CA, 184 SCRA 170

For one, the document or papers burned by Adrianas maid,

The law does not specify a particular location where the date

Guadalupe, was not satisfactorily established to be a will at all,

should be placed in the will. The only requirements are that the

much less the will of Adriana Maloto. For another, the burning was

date be in the will itself and executed in the hand of the testator.

not proven to have been done under the express direction of

Seangio v. Reyes, 508 SCRA 172

Adriana. And then, the burning was not in her presence.

Holographic wills being usually prepared by one who is not learned

Gago vs. Mamuyac NO. L-26317, 49 Phil 902

in the law, as illustrated in the present case, should be construed

Where a will which cannot be found is shown to have been in the

more liberally than the ones drawn by an expert, taking into

possession of the testator, when last seen, the presumption is, in

account the circumstances surrounding the execution of the

the absence of other competent evidence, that the same was

instrument and the intention of the testator.

cancelled or destroyed. The same presumption arises where it is

Palaganas v. Palaganas, 2011 640 SCRA 538

shown that the testator had ready access to the will and it cannot

A foreign will can be given legal effects in our jurisdiction. But,

be found after his death. It will not be presumed that such will has

reprobate or re-authentication of a will already probated and

been destroyed by any other person without the knowledge or

allowed in a foreign country is different from that probate where

authority of the testator.

the will is presented for the first time before a competent court.

Seangio v. Reyes, 2006 508 SCRA 172

Vda.De Perez vs. Tolete, 232 SCRA 722

For disinheritance to be valid, Article 916 of the Civil Code requires

What the law expressly prohibits is the making of joint wills either

that the same must be effected through a will wherein the legal

for the testators reciprocal benefit or for the benefit of a third

cause therefor shall be specified. With regard to the reasons for

person (Civil Code of the Philippines, Article 818). In the case at

the disinheritance that were stated by Segundo in his document,

bench, the Cunanan spouses executed separate wills. Since the

the Court believes that the incidents, taken as a whole, can be

considered a form of maltreatment of Segundo by his son, Alfredo,

We cannot eliminate the possibility that if the will is contested, the

and that the matter presents a sufficient cause for the

law requires that three witnesses to declare that the will was in

disinheritance of a child or descendant under Article 919 of the

the handwriting of the deceased. A visual examination of the

Civil Code.

holographic will convince us that the strokes are different when

Molo vs. Molo NO. L- 2538, 90 Phil 37

compared with other documents written by the testator.

The failure of a new testamentary disposition upon whose validity

Gallanosa vs Arcangel, 83 SCRA 676

the revocation depends, is equivalent to the non-fulfillment of a

After the finality of the allowance of a will, the issue as to the

suspensive conditions, and hence prevents the revocation of the

voluntariness of its execution cannot be raised anymore. It is not

original will. But a mere intent to make at some time a will in the

only the 1939 probate proceeding that can be interposed as res

place of that destroyed will not render the destruction conditional.

judicata with respect to private respondents complaint.

Gan vs Yap, 104 Phil. 509

Roberts vs Leonidas, 129 SCRA 33

The loss of the holographic will entail the loss of the only medium

It is anomalous that the estate of a person who died testate

of proof; if the ordinary will is lost, the subscribing witnesses are

should be settled in an intestate proceeding. Therefore, the

available to authenticate. In case of holographic will if oral

intestate case should be consolidated with the testate proceeding

testimony were admissible only one man could engineer the fraud

and the judge assigned to the testate proceeding should hearing

this way.

the two cases.

Rodelas vs Aranza 119 SCRA 16

Nepomuceno vs CA, 139 SCRA 206

If the holographic will has been lost or destroyed and no other

The general rule is that in probate proceedings, the courts area of

copy is available, the will cannot be probated because the best

inquiry is limited to an examination and resolution of the extrinsic

and only evidence is the handwriting of the testator. But a

validity of the will. Where practically considerations demand that

photostatic copy or Xerox copy of the holographic will may be

the intrinsic validity of the will be passed upon, even before it is

allowed because comparison can be made with the standard

probated, the court should meet the issue.

writings of the testator.

Aznar vs. Duncan, 17 SCRA 590

Azaola vs Singson 109 Phil. 102

To constitute preterition, the omission must be total and complete,

Since the authenticity of the will was not contested, the appellant

such that nothing must be given to the compulsory heir.

is not required to produce more than one witness. Even if the

Acain vs. IAC, 155 SCRA 100

genuiness of the holographic will were contested, article 811

Preterition annuls the institution of an heir and annulment throws

cannot be interpreted as to require the compulsory presentation of

open to intestate succession the entire inheritance. The only

three witnesses to identify the handwriting of the testator, under

provisions which do not result in intestacy are the legacies and

penalty of having denied the probate.

devises made in the will for they should stand valid and respected,

Codoy vs Calugay, 312 SCRA 333

except insofar as the legitimes are concerned.

Nuguid vs. Nuguid, 17 SCRA 449

inheriting ascendant. The reservor has the legal title and dominion

The will here does not explicitly disinherit the testatrixs parents,

to the reservable property but subject to the resolutory condition

the forced heirs. It simply omits their names altogether. Said will

that such title is extinguished if the reservor predeceased the

rather than be labeled ineffective disinheritance is clearly one in

reservee. The reservor is a usufructuary of the reservable

which the said forced heirs suffer from preterition.

property. He may alienate it subject to the reservation. The

Seangio v. Reyes G.R.NO. 140371-72, Nov. 27, 2006 508

transferee gets the revocable and conditional ownership of the

SCRA 172

reservor. The transferees rights are revoked upon the survival of

The mere mention of the name of one of the petitioners, Virginia,

the reservees at the time of the death of the reservor but become

in the document did not operate to institute her as the universal

indefeasible when the reservees predecease the reservor.

heir. Her name was included plainly as a witness to the altercation

Sienes vs. Esparcia, 1 SCRA 750

between Segundo and his son, Alfredo.

The sale made by Andrea Gutang in favor of appellees was,

Legitime and Simulated Contracts; Spousal Marital

therefore, subject to the condition that the vendees would

Estrangement

definitely acquire ownership, by virtue of the alienation, only if the

Francisco vs. Francisco-Alfonso, 354 SCRA 112

vendor died without being survived by any person entitled to the

Obviously, the sale was Gregorios way to transfer the property to

reservable property. Inasmuch much as when Andrea Gutang died,

his illegitimate daughters at the expense of his legitimate

Cipriana Yaeso was still alive, the conclusion becomes inescapable

daughter. The sale was executed to prevent respondent Alfonso

that the previous sale made by the former in favor of appellants

from claiming her legitime and rightful share in said property.

became of no legal effect and the reservable property subject

Capitle v. Elbambuena, 509 SCRA 444

matter thereof passed in exclusive ownership to Cipriana.

Although estranged from Olar, respondent Fortunata remained his

Gonzales vs. CFI, 104 SCRA 479

wife and legal heir, mere estrangement not being a legal ground

Mrs. Legarda could not convey in her holographic will to her

for the disqualification of a surviving spouse as an heir of the

sixteen grandchildren the reservable properties which she had

deceased spouse.

inherited from her daughter Filomena because the reservable

VEVENCIA ECHIN PABALAN, ET. AL. v. THE HEIRS OF

properties did not form part of her estate (Cabardo vs. Villanueva,

SIMEON A.B. MAAMO, SR., G.R. No. 174844, March 20,

44 Phil. 186, 191). The reservor cannot make a disposition mortis

2013

causa of the reservable properties as long as the reservees

survived the reservor.

Reserva troncal is a special rule designed primarily to assure the

Vizconde v. CA, 286 SCRA 217

return of a reservable property to the third degree relatives

Estrellita, it should be stressed, died ahead of Rafael, in fact, it

belonging to the line from which the property originally came, and

was Rafael who inherited from Estrellita an amount more than the

avoid its being dissipated into and by the relatives of the

value of the Valenzuela property. Hence, even assuming that the

Valenzuela property may be collated collation may not be allowed

Santillon vs Mirandan, 14 SCRA 563

as the value of the Valenzuela property has long been returned to

If there is only one legitimate child surviving with the spouse since

the estate of Rafael.

they shall equally, one-half of the estate goes to the child and the

Palacios vs Ramirez, 111 SCRA 704

other half goes to the surviving spouse. Although the law refers to

The word degree means generation and the present code has

children or descendants, the rule in the statutory construction that

obviously followed this interpretation by providing that the

the plural can be understood to include the singular.

substitution shall not go beyond one degree from the heir

Bacayo vs Borromeo, 14 SCRA 986

originally instituted. The code thus clearly indicates that the

A decedents uncle and aunt may not succeed intestate so long as

second heir must be related to and one generation from the first

nephews and nieces of the decedent survive and are willing and

heir.

qualified to succeed. In this case, the nephews and nieces were

Crisologo vs Singzon, 49 SCRA 491

not inheriting by right of representation because they only do so if

In fideicommissary substitution clearly impose an obligation upon

they concur with the brothers and sisters of the decedent.

the first heir to preserve and transmit to another the whole or part

Bagunu vs. Piedad, 347 SCRA 571

of the estate bequeathed to him, upon his death or upon the

The rule on proximity is a concept that favors the relatives nearest

happening of a particular event.

in degree to the decedent and excludes the more distant ones

Rosales vs Rosales, 148 SCRA 69

except when and to the extent that the right of representation can

The daughter-in-law is not an intestate heir of her spouses

apply. In the collateral line, the right of representation may only

parents. There is no provision in the civil code which states that a

take place in favor of the children of brothers or sisters of the

widow is an intestate heir of her mother-in-law.

decedent when such children survive with their uncles or aunts.

Delos Santos vs Dela Cruz, 37 SCRA 555

Sayson vs. CA, 205 SCRA 321

In an intestate succession, a grandniece of the deceased cannot

The relationship created by the adoption is between only the

participate in the inheritance with the surviving nieces and

adopting parents and the adopted child and does not extend to

nephews because the existence of the latter excluded the more

the blood relatives of either party.

distant relatives. In the collateral line, the right of representation

Corpus vs. Corpus, 85 SCRA 567

does not go beyond the children of brothers and sisters.

In default of natural ascendants, natural and legitimated children

Corpuz vs Corpuz, 85 SCRA 567

shall be succeeded by their natural brothers and sisters in

Since, Teodoro was an acknowledged natural child or was

accordance with the rules established for legitimate brothers and

illegitimate and since Juanita was the legitimate child of Tomas,

sisters. Hence, Teodoro R. Yangcos half brothers on the Corpus

himself was a legitimate child, appellant Tomas has no cause of

side, who were legitimate, had no right to succeed to his estate

action to recovery of the supposed hereditary share of his

under the rules of intestacy.

daughter, Juanita as a legal heir, in Yangcos estate.

Suntay v. Cojuangco-Suntay, 621 SCRA 142

Petitioners argument that the successional bar between the

brothers or sisters of the deceased survive with their uncles and

legitimate and illegitimate relatives of a decedent does not apply

aunts but if they alone survive, they shall inherit in equal portions.

in this instance where facts indubitably demonstrate the contrary

Emilio III, an illegitimate grandchild of the decedent, was actually

OBLIGATIONS AND CONTRACTS

treated by the decedent and her husband as their own son, reared
from infancy, educated and trained in their businesses, and

DEGAOS vs. PEOPLE OF THE PHILIPPINES, G.R. NO.

eventually legally adopted by decedents husband, the original

162826, October 14, 2013

oppositor to respondents petition for letters of administration.

Diaz vs. IAC, 150 SCRA 645

Degaos claims that his partial payments to the complainants

It is therefore clear from Article 992 of the New Civil Code that the

novated his contract with them from agency to loan, thereby

phrase legitimate children and relatives of his father or mother

converting his liability from criminal to civil. The incompatibility in

includes Simona Pamuti Vda. de Santero as the word relative

novation must take place in any of the essential elements of the

includes all the kindred of the person spoken of. The record shows

obligation, such as its object, cause or principal conditions thereof;

that from the commencement of this case the only parties who

otherwise, the change would be merely modificatory in nature and

claimed to be the legitimate heirs of the late Simona Pamuti Vda.

insufficient to extinguish the original obligation.

de Santero are Felisa Pamuti Jardin and the six minor natural or
illegitimate children of Pablo Santero.

BPI EXPRESS CARD CORPORATION vs. MA. ANTONIA R.

Diaz vs. IAC, 182 SCRA 427

ARMOVIT

The term relatives, although used many times in the Code, is not

G.R. No. 163654, 08 October 2014, FIRST DIVISION

defined by it. In accordance therefore with the canons of statutory

(BERSAMIN, J.)

interpretation, it should be understood to have a general and

inclusive scope, inasmuch as the term is a general one.

The relationship between the credit card issuer and the credit card

Heirs of Uriarte vs. CA, 284 SCRA 511

holder is a contractual one that is governed by the terms and

A nephew is considered a collateral relative who may inherit if no

conditions found in the card membership agreement. Such terms

descendant, ascendant, or spouse survive the decedent. That

and conditions constitute the law between the parties. In case of

private respondent is only a half-blood relative is immaterial.

their breach, moral damages may be recovered where the

Delos Santos vs Ferraris-Borromeo, 14 SCRA 986

defendant is shown to have acted fraudulently or in bad

Nephews and nieces alone do not inherit by right of representation

faith. Malice or bad faith implies a conscious and intentional

unless concurring with the brothers or sisters of the deceased

design to do a wrongful act for a dishonest purpose or moral

which is provided in article 975 when children of one or more

obliquity. However, a conscious or intentional design need not

always be present because negligence may occasionally be so

gross as to amount to malice or bad faith. Hence, bad faith in the

Delfin, the father, was held jointly and severally liable with his

context of Article 2220 of the Civil Code includes gross negligence.

minor son Dante arising from the criminal act committed by the
latter. The civil liability which the law imposes upon the father and,

FIL-ESTATE PROPERTIES, INC. AND FIL-ESTATE NETWORK,

in case of his death or incapacity, the mother, for any damages

INC., v. SPOUSES CONRADO AND MARIA VICTORIA

that may be caused by the minor children who live with them, is a

RONQUILLO, , G.R. NO.185798. January 13, 2014

necessary consequence of the parental authority they exercise

The 1997 Asian Financial Crisis cannot be said to be unforeseeable

over them which imposes upon the parents the duty of

and beyond the control of a business corporation, especially a

supporting them, keeping them in their company, educating them

corporation engaged in real estate enterprise. Such corporation is

in proportion to their means, while, on the other hand, gives

considered a master in projections of commodities and currency

them the right to correct and punish them in moderation .

movements and business risks. It has the ability to foresee such

SALUDAGA vs. FEU, G.R. NO. 179337 April 30, 2008

situation. Thus, the 1997 Asian Financial Crisis is not an instance

of caso fortuito.

Saludaga, a sophomore law student of respondent FEU filed a case

for damages against it after he was shot by one of the security

ANSAY vs. BOARD OF DIRECTORS, G.R. NO. L-13667, April

guards on duty at the school premises. When an academic

29, 1960

institution accepts students for enrollment, there is a established

contract between them, resulting in bilateral obligations which

Appellants filed against appellees in the CFI a complaint praying

both parties are bound to comply with but which FEU failed to

for a 20% Christmas bonus, contending that there exists a cause

perform when it did not provide a safe and secure environment to

of action in their complaint because their claim rests on moral

its students.

grounds or what in brief is defined by law as a natural obligation.

Article 1423 of the New Civil Code classifies obligations into civil or

NAPOCOR vs. CA, G.R. NO. 124378, March 8, 2005

natural, Civil obligations are a right of action to compel their

performance, while Natural obligations, not being based on

The negligence of NPC as a result of its inability to maintain the

positive law but on equity and natural law, do not grant a right of

level of water in its dams has been satisfactorily and extensively

action to enforce their performance, but after voluntary fulfillment

established. In crimes and quasi-delicts, the defendant shall be

by the obligor, they authorize the retention of what has been

liable for all damages, which are the natural and probable

delivered or rendered by reason thereof.

consequences of the act or omission complained of and it is not

necessary that such damages have been foreseen or could have

SALEN vs. BALCE, G.R. NO. L-14414, April 27, 1960

reasonably been foreseen by the defendant.

GAISANO CAGAYAN, INC. vs INSURANCE COMPANY OF

that is effected in full compliance with the specific requirements of

NORTH AMERICA, G.R. NO. 147839, June 8, 2006

the law therefor.

Petitioners argument is that it is not liable for the unpaid accounts

because the fire is a fortuitous event. If the obligation is generic in

UNLAD RESOURCES DEVELOPMENT CORPORATION vs.

the sense that the object thereof is designated merely by its class

DRAGON, G.R. NO. 149338, July 28, 2008

or genus without any particular designation or physical

segregation from all others of the same class, the loss or

Petitioners contend that they have fully complied with their

destruction of anything of the same kind even without the debtors

obligation under the Memorandum of Agreement but due to

fault and before he has incurred in delay will not have the effect of

respondents failure to increase the capital stock of the

extinguishing the obligation, based on the principle that the genus

corporation to an amount that will accommodate their

of a thing can never perish, (Genus nunquan perit) and an

undertaking, it had become impossible for them to perform their

obligation to pay money is generic; therefore, it is not excused by

end of the Agreement. In reciprocal obligations, failure of the other

fortuitous loss of any specific property of the debtor.

party to perform the obligation renders the other party to demand

fulfillment of the obligation or asked for the rescission of the

TELEFAST vs. CASTRO, G.R. NO. 73867, February 29, 1988

contract, but not simply not performing their part of the

Agreement.

Petitioner and private respondent entered into a contract whereby,

for a fee, petitioner undertook to send said private respondents

HONGKONG AND SHANGHAI BANKING CORP. vs.

message overseas by telegram but which petitioner did not do,

BROQUEZA, G.R. NO. 178610 November 17, 2010

despite performance by said private respondent of her obligation

by paying the required charges. Those who in the performance of

Respondents executed undated promissory notes. They were not

their obligations are guilty of fraud, negligence or delay, and those

able to pay the monthly amortizations of their respective loans,

who in any manner contravene the tenor thereof, are liable for

which were suppose to be paid through salary deduction, to the

damages.

petitioner because of their dismissal. Loans secured by their future

retirement benefits to which they are no longer entitled are

MANUEL vs. CA, G.R. NO. 95469 July 25, 1991

reduced to unsecured and pure civil obligations and the absence

of a period within which to pay the obligation, the fulfillment of

Petitioner contends that private respondents are in mora

which is demandable at once.

accipiendi. The failure of the owners to collect or their refusal to

accept the rentals are not valid defenses, since consignation
under such circumstances, is necessary, and by this we mean one

JAVIER vs. CA, G.R. No. L-48194 March 15, 1990

When a contract is subject to a suspensive condition, its birth and

become impossible. The court shall decree the rescission claimed,

effectivity can take place only if and when the event which

unless there be just cause authorizing the fixing of a period.

constitutes the condition happens or is fulfilled, and if the

suspensive condition does not take place, the parties would stand
as if the conditional obligation had never existed.

EDS MANUFACTURING, INC. v. HEALTHCHECK

INTERNATIONAL INC. G.R. No. 162802, October 9, 2013

PARKS vs. PROVINCE OF TARLAC, G.R. NO. L-24190, July 13,

1926

The general rule is that rescission of a contract will not be

permitted for a slight or casual breach, but only for such

Appellant contends that a condition precedent having been

substantial and fundamental violations as would defeat the very

imposed in the donation and the same not having been complied

object of the parties in making the agreement. It must be pointed

with, the donation never became effective. The characteristic of a

that in the absence of a stipulation, a party cannot unilaterally and

condition precedent is that the acquisition of the right is not

extra judicially rescind a contract. A judicial or notarial act is

effected while said condition is not complied with or is not deemed

necessary before a valid rescission can take place.

complied with, consequently, when a condition is imposed, the

compliance of which cannot be effected except when the right is

Even if Article 1191 were applicable, petitioner would still not be

deemed acquired, such condition cannot be a condition precedent

entitled to automatic rescission. Under Article 1191of the Civil

but a condition subsequent.

Code, the right to resolve reciprocal obligations, is deemed implied

in case one of the obligors shall fail to comply with what is

ALILEO A. MAGLASANG v. NORTHWESTERN UNIVERSITY,

incumbent upon him. But that right must be invoked judicially.

INC., G.R. No. 188986, March 20, 2013

Consequently, even if the right to rescind is made available to the

injured party, the obligation is not ipso facto erased by the failure

The court ruled that the power to rescind the obligations of the

of the other party to comply with what is incumbent upon him. The

injured party is implied in reciprocal obligations, such as in this

party entitled to rescind should apply to the court for a decree of

case. On this score, the CA correctly applied Article 1191, which

rescission. The right cannot be exercised solely on a partys own

provides thus: the power to rescind obligations is implied in

judgment that the other committed a breach of the obligation. The

reciprocal ones, in case one of the obligors should not comply with

operative act which produces the resolution of the contract is the

what is incumbent upon him. The injured party may choose

decree of the court and not the mere act of the vendor.

between the fulfillment and the rescission of the obligation, with

the payment of damages in either case. He may also seek
rescission, even after he has chosen fulfillment, if the latter should

UP vs. DE LOS ANGELES, G.R. NO. L-28602, September 29,

In the first place, UP and ALUMCO had expressly stipulated in the

resolutions, all have a common subject: the Shares the 187.84

Acknowledgment of Debt and Proposed Manner of Payments

Million EPCIB common shares, which, as a necessary consequence

that, upon default by the debtor ALUMCO, the creditor (UP) has

of the BDO- EPCIB merger which saw EPCIB being absorbed by the

the right and the power to consider, the Logging Agreement

surviving BDO, have been transferred to BDO and converted into

dated as rescinded without the necessity of any judicial suit.

BDO common shares under the exchange ratio set forth in the
BDO-EPCIB Plan of Merger. As thus converted, the subject Shares

The party who deems the contract violated may consider it

are no longer equity security issuances of the now defunct EPCIB,

resolved or rescinded, and act accordingly, without previous court

but those of BDO-EPCI, which, needless to stress, is a totally

action, but it proceeds at its own risk, for it is only the final

separate and distinct entity from what used to be EPCIB.

judgment of the corresponding court that will conclusively and

finally settle whether the action taken was or was not correct in

Under the law on obligations and contracts, the obligation to give

law.

a determinate thing is extinguished if the object is lost without the

fault of the debtor, and per Art. 1192 (2) of the Civil Code, a thing

AYSON-SIMON vs. ADAMOS, G.R. NO. L-39378, August 28,

is considered lost when it perishes or disappears in such a way

1984

that it cannot be recovered.

Defendants contend (1) that the fulfillment and the rescission of

ARANETA, INC., vs.PHILIPPINE SUGAR ESTATES, G.R. NO. L-

the obligation in reciprocal ones are alternative remedies, and

22558 May 31, 1967

plaintiff having chosen fulfillment in the Civil Case, she cannot

Araneta, who was not able to comply with his obligation to create

now seek rescission; and (2) that even if plaintiff could seek

side streets on the sides of the land which were sold to the PSE

rescission the action to rescind the obligation has prescribed. The

due to the presence of squatters, questions the decision of the

rule that the injured party can only choose between fulfillment and

lower court ordering him to comply with his obligation within 2

rescission of the obligation, and cannot have both, applies when

years from the finality of the decision. It must be recalled that

the obligation is possible of fulfillment, if the fulfillment has

Article 1197 of the Civil Code involves a two-step process, the

become impossible, Article 1191 (3) allows the injured party to

Court must first determine that the obligation does not fix a

seek rescission even after he has chosen fulfillment.

period, or from the nature and the circumstances it can be

inferred that a period was intended, because courts can not fix a

OSMEA III vs SSS, September 13, 2007

period merely because in its opinion it is or should be reasonable

and the complaint not having sought that the court should set a

The Letter-Agreement, the SPA, the SSC resolutions assailed in this

period, but must set the time that the parties are shown to have

recourse, and the Invitation to Bid sent out to implement said

intended.

RONQUILLO vs.CA, G.R. NO. L-55138September 28, 1984

SPS. NAMAEL AND LOURDES BONROSTRO v. SPS. JUAN AND

CONSTACIA LUNA, G.R. No. 172346. July 24, 2013

Respondent filed a modification of the order of the lower court in a

collection case praying for the execution of the decision in its

Tender of payment is the manifestation by the debtor of a desire

entirety against all defendants, jointly and severally. In the

to comply with or pay an obligation. If refused without just cause,

absence of a finding of facts that the defendants made

the tender of payment will discharge the debtor of the obligation

themselves individually liable for the debt incurred they are each

to pay but only after a valid consignation of the sum due shall

liable only for one-fourth of said amount, the obligation being

have been made with the proper court. Consignation is the

described as individually and jointly.

deposit of the proper amount with a judicial authority in

accordance with rules prescribed by law, after the tender of

SPOUSES MINIAN0 vs. CONCEPCION, G.R. 172825, October

payment has been refused or because of circumstances which

11, 2012

render direct payment to the creditor impossible or inadvisable.

Admittedly, payment of the remaining balance of P200,000.00 was

Tender of payment, without more, produces no effect. To have the

not made to the creditors themselves, but rather, it was allegedly

effect of payment and the consequent extinguishment of the

made to a certain Losloso who was the authorized agent of

obligation to pay, the law requires the companion acts of tender of

petitioners. Respondents obligation consists of payment of a sum

payment and consignation.

of money, and in general, a payment in order to be effective to

discharge an obligation, must be made to the proper person, thus,

Spouses Oscar and Thelma Cacayorin v. Armed Forces and

payment must be made to the obligee himself or to an agent

Police Mutual Benefit Association, Inc., G.R. No. 171298.

having authority, express or implied, to receive the particular

April 15, 2013

payment. Payment made to one having apparent authority to

receive the money will, as a rule, be treated as though actual

Consignation is necessarily judicial. Article 1258 of the Civil Code

authority had been given for its receipt. If payment is made to one

specifically provides that consignation shall be made by depositing

who by law is authorized to act for the creditor, it will work as a

the thing or things due at the disposal of judicial authority. The

discharge.

said provision clearly precludes consignation in venues other than

TIBAJIA vs. CA, G.R. NO. 100290, June 4, 1993

the courts.

Checks representing deposit money do not have legal tender

power and their acceptance in the payment of debts, both public

DALTON vs. FG.R. and DEVELOPMENT CORP, G.R. NO.

and private, is at the option of the creditor.

172577 January 19, 2011

consistently applied the well-settled rule that the obligation is not

The withdrawal by the creditor of the amounts consigned was

novated by an instrument that expressly recognizes the old,

subject to the express reservation of assailing the validity of the

changes only the terms of payment, and adds other obligations

consignation. In such case, the creditor is not deemed to have

not incompatible with the old ones, or where the new contract

waived the claims he reserved against his debtor. When the

merely supplements the old one.

amount consigned does not cover the entire obligation, the

creditor may accept it, reserving his right to the balance.

SPOUSES TONGSON vs. EMERGENCY PAWNSHOP BULA,

G.R. 167874. January 15, 2010

FRANCIA vs. IAC, G.R. NO. L-67649 June 28, 1988

A valid contract requires the concurrence of the following essential
Francia contends that his tax delinquency has been extinguished

elements: (1) consent or meeting of the minds, that is, consent to

by legal compensation and claims that the government owed him

transfer ownership in exchange for the price; (2) determinate

when a portion of his land was expropriated, hence, his tax

subject matter; and (3) price certain in money or its equivalent.

obligation had been set-off by operation of law.

PALATTAO vs. CA, G.R. NO. 131726, May 7, 2002
The general rule based on grounds of public policy is well-settled
that no set-off admissible against demands for taxes levied for

Appellant made a qualified acceptance of appellees letter-offer of

general or local governmental purposes because taxes are not in

a parcel of land but appellee made a new proposal to pay the

the nature of contracts between the party and party but grow out

amount in staggered amounts within two years in quarterly

of duty to, and are the positive acts of the government to the

amortizations. To convert the offer into a contract, the acceptance

making and enforcing of which, the personal consent of individual

must be absolute and must not qualify the terms of the offer, for a

taxpayers is not required.

qualified acceptance constitutes a counter-offer and is a rejection

of the original offer and such acceptance is not sufficient to

CALIFORNIA BUS LINES, INC. vs. STATE INVESTMENT

generate consent.

HOUSE, INC., G.R. NO. 147950. December 11, 2003

There was no change in the object of the prior obligations in the

GALLARDO vs.HONORABLE INTERMEDIATE APPELLATE

restructuring agreement since it merely provided for a new

COURT, G.R. NO. L-67742 October 29, 1987

schedule of payments and additional security giving Delta

authority to take over the management and operations of CBLI in

The issue here is whether or not the unnotarized deed of sale can

case CBLI fails to pay installments equivalent to 60 days. With

be considered as a valid instrument for effecting the alienation by

respect to obligations to pay a sum of money, this Court has

way of sale of a parcel of land registerd under the Torrens System.

The general rule enunciated in said Art. 1356 is that contracts are

language, should be applied according to their literal tenor and

obligatory, in whatever form they may have been entered,

the courts cannot supply material stipulations, which contradict

provided all the essential requisites for their validity are present,

the intent of the parties.

except when the law so requires requiring a contract to be in some

form for validity or enforceability.

SPOUSES FLORENDO vs. COURT OF APPEALS, G.R. NO.

101771 December 17, 1996

SANCHEZ vs. RIGOS, G.R. NO. L-25494 June 14, 1972

In order that obligations arising from contracts may have the force
of law between the parties, there must be mutuality between the

Since there may be no valid contract without a cause or

parties based on their essential equality, hence, a contract

consideration, the promisor is not bound by his promise and may,

containing a condition which makes its fulfillment dependent

accordingly, withdraw it, and pending notice of its withdrawal, his

exclusively upon the uncontrolled will of one of the contracting

accepted promise partakes, however, of the nature of an offer to

parties, is void.

sell which, if accepted, results in a perfected contract of sale.

DKC HOLDINGS CORPORATION vs. COURT OF APPEALS, G.R.
TIU vs. PLATINUM PLANS PHIL., INC., G.R. NO. 163512

NO. 118248 April 5, 2000

February 28, 2007

Being an heir there is privity of interest between the heir and the
deceased, hence, heirs are bound by contracts entered into by

Respondent contends that the inclusion of the two-year non-

their predecessors-in-interest except when the rights and

involvement clause in petitioners contract of employment was

obligations arising therefrom are not transmissible by (1) their

reasonable and needed since her job gave her access to the

nature, (2) stipulation or (3) provision of law.

companys confidential marketing strategies. A non-involvement

clause is not necessarily void for being in restraint of trade as long

PRUDENTIAL BANK AND TRUST COMPANY vs. ABASOLO,

as there are reasonable limitations as to time, trade, and place.

G.R. NO. 186738, September 27, 2010

CABAHUG vs NAPOCOR, G.R. NO. 186069, January 30, 2013

Contracts take effect only between the parties, their assigns and

Disregarding the stipulations in the contract allowing additional

heirs, and if a contract should contain some stipulation in favor of

compensation for easement fee, the CA ruled that Cabahugs

a third person, the contracting parties must have clearly and

attempt to collect further sums by way of additional easement fee

deliberately conferred a favor upon the third person.

and,or just compensation is violative of said contract. It is settled

that a contract constitutes the law between the parties who are

FLORENTINO vs. ENCARNACION, SR., G.R. NO. L-27696

bound by its stipulations which, when couched in clear and plain

September 30, 1977

another person who owns motors vehicles to operate under such

To constitute a valid stipulation pour autrui it must be the purpose

franchise for a fee, and the petitioner prays that private

and intent of the stipulating parties to benefit the third. It is not

respondents be declared liable to petitioner for whatever amount

sufficient that the third person may be incidentally benefited by

the latter has paid. It is a fundamental principle of in pari delicto

the stipulation.

that the court will not aid either party to enforce an illegal
contract, but will leave them both where it finds them.

ASIAN CATHAY FINANCE AND LEASING CORPORATION vs.

SPOUSES G.R.AVADOR et al, G.R. NO. 186550, July 5, 2010

CARLOS A. LORIA vs. LUDOLFO P. MUOZ, JR.

A contract of adhesion may be struck down as void and

G.R. No. 187240, 15 October 2014, SECOND DIVISION

unenforceable for being subversive to public policy, when the

(Leonen, J.)

weaker party is completely deprived of the opportunity to bargain

on equal footing.

The application of the doctrine of in pari delicto is not always

rigid. An accepted exception arises when its application

URETA vs. URETA, G.R. No. 165748, September 14, 2011

contravenes well-established public policy. In this jurisdiction,

public policy has been defined as that principle of the law which

Lacking in an absolutely simulated contract is consent which is

holds that no subject or citizen can lawfully do that which has a

essential to a valid and enforceable contract. Thus, where a

tendency to be injurious to the public or against the public good.

person, in order to place his property beyond the reach of his

The prevention of unjust enrichment is a recognized public policy

creditors, simulates a transfer of it to another, he does not really

of the State.

intend to divest himself of his title and control of the property;

hence, the deed of transfer is but a sham. Similarly, in this case,

CORONEL vs. CONSTANTINO, G.R. NO. 121069, February 7,

Alfonso simulated a transfer to Policronio purely for taxation

2003

purposes, without intending to transfer ownership over the subject

lands.

Applying Articles 1317 and 1403 of the Civil Code, the Court of
Appeals ruled that through their inaction and silence, the three

LITA ENTERPRISES, INC.,vs. IAC, G.R. NO. L-64693 April 27,

sons of Emilia are considered to have ratified the aforesaid sale of

1984

the subject property by their mother. Ratification means that one

under no disability voluntarily adopts and gives sanction to some

Unquestionably, the parties herein operated under an

unauthorized act or defective proceeding, which without his

arrangement, commonly known as the kabit system, whereby a

sanction would not be binding on him , hence, an alleged silence

person who has been granted a certificate of convenience allows

and inaction may not be interpreted as an act of ratification on

executed through the partial payments made by one party duly

their part.

received by the vendor, as in the present case, the contract is

taken out of the scope of the Statute.

YUVIENCO vs. DACUYCUY, G.R. NO. L-55048 May 27, 1981

AIR FRANCE vs. HONORABLE COURT OF APPEALS, G.R. NO.

104234 June 30, 1995

Respondent judge assumed that as long as the requirements of

perfection of a contract are present in a contract which involves

Petitioner moved for the issuance of an alias writ of execution on

payment in installments, the Statute of Frauds would no longer

the ground of unsatisfied judgment against respondents and It

apply as long as the total price or consideration is mentioned in

likewise moved to declare the sale to a third party of a parcel of

some note or memorandum and there is no need of any indication

land in the name of the private respondent as one in fraud of

of the manner in which such total price is to be paid. In any sale of

creditors which was granted by the lower court. Rescissible

real property on installments, the Statute of Frauds read together

contracts, not being void, they remain legally effective until set

with the perfection requirements of Article 1475 of the Civil Code

aside in a rescissory action and may convey title, and an action for

must be understood and applied in the sense that the idea of

rescission may not be raised or set up in a summary proceeding

payment on installments must be in the requisite of a note or

through a motion, but in an independent civil action and only after

memorandum therein contemplated.

a full-blown trial.

ORDUA vs. FUENTEBELLA, G.R. NO. 176841, June 29, 2010

LAW ON SALES

Gabriel Sr., during his lifetime, sold the subject property to

PEALOSA vs. SANTOS, G.R. NO. 133749, August 23, 2001

Antonita, the purchase price payable on installment basis, thus,

Gabriel Sr. appeared to have been a recipient of some partial

Respondent insist that the second deed is a complete nullity

payments but after his death, his son questions the verbal sale

because a) the consideration stated in the deed was not paid;

contract between Gabriel Sr. and Antonita, and alleged that the

b)seller was not present when the deed was notarized; c) seller did

contract is unenforceable for non-compliance with the Statute of

not surrender a copy of the title; d)real estate taxes were not paid.

Frauds. The Statute of Frauds, in context, provides that a contract

The elements of a valid contract of sale are: (1) consent or

for the sale of real property or of an interest therein shall be

meeting of the minds; (2) determinate subject matter; and (3)

unenforceable unless the sale or some note or memorandum

price certain in money or its equivalent which are present in the

thereof is in writing and subscribed by the party or his agent.

second Deed of Sale hence there is already a perfected contract of

Where the verbal contract of sale, however, has been partially

sale.

In a contract to sell, the seller retains ownership of the property

FIRST OPTIMA REALTY CORPORATION vs. SECURITRON

until the buyer has paid the price in full. A buyer who covertly

SECURITY SERVICES, INC.

usurps the sellers ownership of the property prior to the full

G.R. No. 199648, January 28, 2015

payment of the price is in breach of the contract and the seller is

entitled to rescission because the breach is substantial and

Since there is no perfected sale between the parties, respondent

fundamental as it defeats the very object of the parties in entering

had no obligation to make payment through the check; nor did it

into the contract to sell. In the case at bar, the court finds that

possess the right to deliver earnest money to petitioner in order to

respondent Rowenas act of transferring the title to the subject

bind the latter to a sale. As contemplated under Art. 1482 of the

land in her name, without the knowledge and consent of

Civil Code, there must first be a perfected contract of sale before

petitioners and despite non-payment of the full price thereof,

we can speak of earnest money. Where the parties merely

constitutes a substantial and fundamental breach of the contract

exchanged offers and counter-offers, no contract is perfected

to sell.

since they did not yet give their consent to such offers. Earnest
money applies to a perfected sale.
HEIRS OF ARTURO REYES vs SOCCO-BELTRAN, G.R. 176474
MOLDEX RAELTY INC. v. FLORA A. SABERON, G.R. No.

November 27, 2008

176289. April 8, 2013

It was unmistakably stated in the Contract to Sell and made clear

The lack of a license to sell or the failure on the part of a

to both parties thereto that the vendor was not yet the owner of

subdivision developer to register the contract to sell or deed of

the subject property and was merely expecting to inherit the

conveyance with the Register of Deeds does not result to the

same. The law specifically requires that the vendor must have

nullification or invalidation of the contract to sell it entered into

ownership of the property at the time of delivery hence, there was

with a buyer. The contract to sell remains valid and subsisting. The

no valid sale from which ownership of the subject property could

intrinsic validity of the contract to sell is not affected by the

have been transferred.

developers violation of Section 5 of PD 957.Nevertheless, the

respondent in this case is entitled to 50% refund under the

DACLAG vs. MACAHILIG et al., G.R. NO. 159578, February

Maceda Law.

18, 2009

SPOUSES DELFIN O. TUMIBAY AND AURORA T. TUMIBA-

Petitioners contend that the 10-year period for reconveyance is

DECEASED ET AL. v. SPOUSES MELVIN A. LOPEZ, G.R. No.

applicable if the action is based on an implied or a constructive

171692, June 3, 2013

trust. However, since respondents action for reconveyance was

based on fraud, the action must be filed within four years from the

discovery of the fraud. Respondents action for reconveyance was

ARCENIO vs. JUDGE PAGOROGON, A.M. NO. MTJ-89-270 July

not even subject to prescription, since the deed of sale that was

5, 1993

executed in favor of petitioners was null and void because the

OFFICE OF THE COURT ADMINISTRATOR vs. JUDGE

seller was not the owner of the land, nor has the authority when

PAGOROGON, A.M. NO. MTJ-92-637 July 5, 1993

she sold it to petitioners, hence, being an absolute nullity, the

deed is subject to attack anytime because an action to declare the

The respondent judge engaged the services of a mechanic to tow

inexistence of a void contract does not prescribe.

the jeep in custodia legis and to place the jeep in good running
condition, spending in the process her own money and also

NOOL vs. COURT OF APPEALS, G.R. NO. 116635 July 24,

registered the same in her brothers name. The act of respondent

1997

judge is not unlike the prohibited acquisition by purchase

Petitioners contend that they could repurchase the property that

described in Article 1491 of the New Civil code and is in fact, even

they sold to private respondents when they allowed the

worse when she did not acquire the said vehicle from its owner

respondent to redeem the properties for them from DBP but DBP

but instead whimsically spent for its repairs and automatically

certified that the mortgagors right of redemption was not

appropriated the jeep for her own use and benefit.

exercised within the period. Article 1505 of the Civil Code provides
that where goods are sold by a person who is not the owner

VALENCIA vs. ATTY. CABANTING, A.M. Nos. 1302, 1391 and

thereof, and who does not sell them under authority or with

1543 April 26, 1991

consent of the owner, the buyer acquires no better title to the

Paulino alleged that the trial court failed to provide a workable

goods than the seller had, unless the owner of the goods is by his

solution concerning his house and while the petition for certiorari

conduct precluded from denying the sellers authority to sell.,

was pending the trial court issued an order of execution stating

hence, petitioners sold nothing, it follows that they can also

that the decision in this case has already become final and

repurchase nothing.

executory. While it is true that Atty. Cabanting purchased the lot

after finality of judgment, there was still a pending certiorari

DAROY vs. ATTY. ABECIA, A.C. NO. 3046, October 26, 1998

proceeding, and a thing is said to be in litigation not only if there is

some contest or litigation over it in court, but also from the

The prohibition in Art. 1491 does not apply to the sale of a parcel

moment that it becomes subject to the judicial action of the judge.

of land, acquired by a client to satisfy a judgment in his favor to

his counsel as long as the property was not the subject of the

FABILLO vs. THE HONORABLE INTERMEDIATE APPELLATE

litigation.

COURT, G.R. NO. L-68838 March 11, 1991

After the court declared with finality that the petitioners are the

fiduciary relationship with such property and rights, as well as with

lawful owners, they refused to comply when the respondent

the client.

lawyer proceeded to implement the contract of services between

him and the petitioners by taking possession and exercising rights

IN RE: SUSPENSION FROM THE PRACTICE OF LAW IN THE

of ownership over 40% of said properties which are the subject of

TERRITORY OF GUAM OF ATTY. LEON G. MAQUERA, B.M. NO.

litigation. A contract between a lawyer and his client stipulating a

793. July 30, 2004

contingent fee is not covered by said prohibition under Article

1491 (5) of the Civil Code because the payment of said fee is not

Maquera was suspended from the practice of law in Guam for

made during the pendency of the litigation but only after

misconduct, as he acquired his clients property by exercising the

judgment has been rendered in the case handled by the lawyer.

right of redemption previously assigned to him by the client in

payment of his legal services, then sold it and as a consequence

MANANQUIL vs. ATTY. VILLEGAS, A.M. NO. 2430 August 30,

obtained an unreasonably high fee for handling his clients case.

1990

The prohibition extends to sales in legal redemption and such

prohibition is founded on public policy because, by virtue of his

Complainant alleges that for over a period of 20 years, respondent

office, an attorney may easily take advantage of the credulity and

counsel allowed lease contracts to be executed between his client

ignorance of his client and unduly enrich himself at the expense of

and a partnership of which respondent is one of the partners,

his client.

covering parcels of land of the estate, but respondent claims that

he is only acting as an agent. Even if the respondent signed

PROVINCE OF CEBU vs. HEIRS OF RUFINA MORALES, G.R.

merely as an agent, the lease contracts are covered by the

NO. 170115, FEBRUARY 19, 2008

prohibition against any acquisition or lease by a lawyer of

properties involved in litigation in which he takes part.

The City of Cebu was no longer the owner of the lot when it ceded
the same to petitioner under the compromise agreement and at

BAUTISTA vs. ATTY. GONZALES, A.M. NO. 1625 February 12,

that time, the city merely retained rights as an unpaid seller but

1990

had effectively transferred ownership of the lot to Morales. A

successor-in-interest could only acquire rights that its predecessor

The Solicitor General found that respondent counsel transferred to

had over the lo which include the right to seek rescission or

himself one-half of the properties of his clients during the

fulfillment of the terms of the contract and the right to damages in

pendency of the case where the properties were involved. Persons

either case.

mentioned in Art. 1491 of the Civil Code are prohibited from

purchasing the property mentioned therein because of the existing

HEIRS OF AMPARO DEL ROSARIO vs. SANTOS, G.R. NO. L-

in the price. Article 1542 is not hard and fast and admits of an

46892 September 30, 1981

exception and the use of more or less or similar words in

designating quantity covers only a reasonable excess or

By the terms of the Deed of Sale itself, appellants declared

deficiency, and clearly, the discrepancy of 10,475 sq m cannot be

themselves to be owners of one-half (1,2) interest thereof and

considered a slight difference in quantity.

contend that the deed of assignment of one-half (1,2) interest

thereof executed by said Custodio in their favor is strictly personal

SEMIRA vs. COURT OF APPEALS, G.R. NO. 76031 March 2,

between them. Notwithstanding the lack of any title to the said lot

1994

by appellants at the time of the execution of the deed of sale in

favor of appellee, the said sale may be valid as there can be a sale

Private respondent sold Lot 4221 to his nephew by means of a

of an expected thing.

Kasulatan ng Bilihan ng Lupa which incorporated both the area

and the definite boundaries of the lot, the former transferred not

JAVIER vs. COURT OF APPEALS, G.R. NO. L-48194 March 15,

merely the 822.5 square meters stated in their document of sale

1990

but the entire area circumscribed within its boundaries.

The efficacy of a deed of assignment is subject to the condition

that the application of private respondent for an additional area

If besides mentioning the boundaries, which is indispensable in

for forest concession be approved by the Bureau of Forestry which

every conveyance of real estate, its area or number should be

was not obtained. The efficacy of the sale of a mere hope or

designated in the contract, the vendor shall be bound to deliver all

expectancy is deemed subject to the condition that the thing will

that is included within said boundaries, even when it exceeds the

come into existence, which did not happen, hence the agreement

area or number specified in the contract; and, should he not be

executed never became effective or enforceable.

able to do so, he shall suffer a reduction in the price, in proportion

to what is lacking in the area or number, unless the contract is

DEL PRADO vs SPOUSES CABALLERO, G.R. NO. 148225,

rescinded because the vendee does not accede to the failure to

March 3,2010 7

deliver what has been stipulated.

The parties agreed on the purchase price of P40,000.00 for a

DANGUILAN vs. IAC, G.R. NO. L-69970 November 28, 1988

predetermined area of 4,000 sq m, more or less, but when the

Respondent admits that she did not take physical possession of

OCT was issued, the area was declared to be 14,475 sq m, with an

property but argues that symbolic delivery was effected through

excess of 10,475 sq m. Petititiomer, however, claims that

the notarized deed of sale. The thing is considered to be delivered

respondents are, therefore, duty-bound to deliver the whole area

when it is placed in the hands and possession of the vendee,

within the boundaries stated, without any corresponding increase

and in order that this symbolic delivery may produce the effect of

tradition, it is necessary that the vendor shall have had such

MUNICIPALITY OF VICTORIAS vs. THE COURT OF APPEALS,

control over the thing sold at the moment of the sale, but if there

G.R. NO. L-31189 March 31, 1987

is no impediment to prevent the thing sold passing into the

tenancy of the purchaser by the sole will of the vendor, symbolic

Respondent discovered that a parcel of land she owns is being

delivery through the execution of a public instrument is sufficient.

used by Petitioner, Municipality of Victorias, as a cemetery for 29

years and when the Mayor replied that Petitioner bought the land

CHUA vs COURT OF APPEALS, G.R. NO. 119255, April 9,

from her grandmother, she asked to be shown the papers

2003

concerning the sale but petitioner refused to show the same.

Petitioner insists that he was ready to pay the balance of the

Where there is no express provision that title shall not pass until

purchase price but withheld payment because he required that the

payment of the price, and the thing sold has been delivered, title

property be registered first in his name before he would turn over

passes from the moment the thing sold is placed in the possession

the check to the private respondent. 8

and control of the buyer.

The obligation of the seller is to transfer to the buyer ownership of

DE LEON vs. ONG, G.R. NO. 170405, February 2, 2010

the thing sold, but in the sale of a real property, the seller is not
obligated to transfer in the name of the buyer a new certificate of

Petitioner sold three parcels of land to respondent which were

title, but rather to transfer ownership of the real property, because

mortgaged to a bank, hence petitioner and respondent executed a

as between the seller and buyer, ownership is transferred not by

notarized deed of absolute sale with assumption of mortgage, but

the issuance of a new certificate of title in the name of the buyer

petitioner some time thereafter paid the mortgage and sold the

but by the execution of the instrument of sale in a public

properties to another person. Settled is the rule that the seller is

document.

obliged to transfer title over the properties and deliver the same
to the buyer, and as a rule, the execution of a notarized deed of

VISAYAN SAWMILL COMPANY, INC., vs. COURT OF APPEALS,

sale is equivalent to the delivery of a thing sold.

G.R. NO. 83851. March 3, 1993.

The seller gave access to the buyer to enter his premises,

PUROMINES, INC., vs. COURT OF APPEAL, G.R. NO. 91228.

manifesting no objection thereto but even sending people to start

March 22, 1993.

digging up the scrap iron. The seller has placed the goods in the
control and possession of the vendee and such action or real

Petitioner argues that the sales contract does not include the

delivery (traditio) transfered ownership.

contract of carriage which is a different contract entered into by

the carrier with the cargo owners.

As worded, the sales contract is comprehensive enough to include

there is a stipulation to the contrary, when the sale is made

claims for damages arising from carriage and delivery of the

through a public instrument, the execution thereof is equivalent to

goods. As a general rule, the seller has the obligation to transmit

the delivery of the thing which is the object of the contract.

the goods to the buyer, and concomitant thereto, the contracting

of a carrier to deliver the same. Art. 1523 of the Civil Code

SPOUSES BUENAVENTURA et al vs. COURT OF APPEALS,

provides:

G.R. NO. 126376. November 20, 2003

Art. 1523. Where in pursuance of a contract of sale, the seller in

authorized or required to send the goods to the buyer, delivery of

Petitioners assert that their respondent siblings did not actually

the goods to a carrier, whether named by the buyer or not, for the

pay the prices stated in the Deeds of Sale to their respondent

purpose of transmission to the buyer is deemed to be a delivery of

father and assuming that there is consideration, the same is

the goods to the buyer, except in the cases provided for in article

grossly inadequate as to invalidate the Deeds of Sale. If there is a

1503, first, second and third paragraphs, or unless a contrary

meeting of the minds of the parties as to the price, the contract of

intent appear.

sale is valid and gross inadequacy of price does not affect a

Unless otherwise authorized by the buyer, the seller must take

contract of sale, except if there is a defect in the consent, or that

such contract with the carrier on behalf of the buyer as may be

the parties really intended a donation or some other contract.

reasonable, having regard to the nature of the goods and the

other circumstances of the case. If the seller omit so to do, and

HO, JR. vs TENG GUI, G.R. NO. 130115, July 16, 2008

the goods are lost or damaged in course of transit, the buyer may

RTC considered that although the sales of the properties on the lot

decline to treat the delivery to the carrier as a delivery to himself,,

were simulated, it can be assumed that the intention of Ho in such

or may hold the seller responsible in damages.

transaction was to give and donate such properties to the

xxx xxx xxx

respondent. The Court holds that the reliance of the trial court on

The disputed sales contact provides for conditions relative to the

the provisions of Article 1471 of the Civil Code to conclude that

delivery of goods, such as date of shipment, demurrage, weight as

the simulated sales were a valid donation to the respondent is

determined by the bill of lading at load port.

misplaced because its finding was based on a mere assumption

when the law requires positive proof, which the respondent was

BOY vs. COURT OF APPEALS, G.R. NO. 125088, April 14,

unable to show.

2004
Petitioner sold the subject property to respondents as evidenced

HYATT ELEVATORS vs. CATHEDRAL HEIGHTS, G.R. NO.

by a notarized Deed of Absolute Sale, but contends that the

173881 December 1, 2010

respondents have no right to material possession of the property

As revealed by the records, it was only Hyatt who determined the

since the respondents have not paid the property in full. Unless

price, without the acceptance or conformity of CHBCAI. The fixing

of the price can never be left to the decision of one of the

CENTRAL BANK OF THE PHILIPPINES vs. SPOUSES

contracting parties, but a price fixed by one of the contracting

ALFONSO, G.R. NO. 131074, March 27, 2000

parties, if accepted by the other, gives rise to a perfected sale.

Respondents aver that they are entitled to cancel the obligation
CHUA vs. COURT OF APPEALS, G.R. NO. 119255, April 9,

altogether in view of petitioners failure to pay the purchase price

2003

when the same became due, while Petitioner claims that the

On the agreed date, Chua refused to pay the balance of the

respondent failed to comply with their contractual obligations

purchase price as required by the contract to sell, the signed

hence it was entitled to withhold payment of the purchase price.

Deeds of Sale, and imposes another condition. The vendee is

Should the vendee be disturbed in the possession or ownership of

bound to accept delivery and to pay the price of the thing sold at

the thing acquired, he may suspend the payment of the price until

the time and place stipulated in the contract.

the vendor has cause the disturbance or danger to cease. This is

not, however, the only justified cause for retention or withholding

FULE vs. COURT OF APPEALS, G.R. NO. 112212, March 2,

the payment of the agreed price, but also, if the vendor fails to

1998

perform any essential obligation of the contract.

While it is true that the amount of P40,000.00 forming part of the

MANUEL UY & SONS, INC. v. VALBUECO, INCORPORATED,

consideration was still payable to petitioner, its nonpayment by Dr.

G.R. No. 179594. September 11, 2013

Cruz is not a sufficient cause to invalidate the contract or bar the

transfer of ownership and possession of the things exchanged

Articles 1191 and 1592 of the Civil Code are applicable to

considering the fact that their contract is silent as to when it

contracts of sale, while R.A. No. 6552 applies to contracts to sell.

becomes due and demandable.

R.A. No. 6552, otherwise known as the Realty Installment Buyer

Neither may such failure to pay the balance of the purchase price

Act, applies to the subject contracts to sell. R.A. No. 6552 (Maceda

result in the payment of interest thereon. Article 1589 of the Civil

Law) recognizes in conditional sales of all kinds of real estate

Code prescribes the payment of interest by the vendee for the

(industrial, commercial, residential) the right of the seller to cancel

period between the delivery of the thing and the payment of the

the contract upon non-payment of an installment by the buyer,

price in the following cases:

which is simply an event that prevents the obligation of the

(1) Should it have been so stipulated;

vendor to convey title from acquiring binding force.

(2) Should the thing sold and delivered produce fruits or income;
(3) Should he be in default, from the time of judicial or

SPOUSES JAIME SEBASTIAN AND EVANGELINE SEBASTIAN

extrajudicial demand for the payment of the price.

vs. BPI FAMILY BANK, INC., CARMELITA ITAPO AND

BENJAMIN HAO

G.R. No. 160107, 22 October 2014, FIRST DIVISION

(Bersamin, J.)

The requisites that must concur for Article 1544 to apply are: (a)
The two (or more sales) transactions must constitute valid sales;

The protection of Republic Act No. 6552 (Realty Installment Buyer

(b) The two (or more) sales transactions must pertain to exactly

Protection Act) does not cover a loan extended by the employer to

the same subject matter; (c) The two (or more) buyers at odds

enable its employee to finance the purchase of a house and lot.

over the rightful ownership of the subject matter must each

The law protects only a buyer acquiring the property by

represent conflicting interests; and (d) The two (or more) buyers

installment, not a borrower whose rights are governed by the

at odds over the rightful ownership of the subject matter must

terms of the loan from the employer.

each have bought from the very same seller.

SPOUSES MICHELLE M. NOYNAY AND NOEL S.

Obviously, said provision has no application in cases where the

NOYNAY vs. CITIHOMES BUILDER AND DEVELOPMENT, INC.

sales involved were initiated not by just one but two vendors.

G.R. No. 204160, September 22, 2014

SPOUSES CLEMENCIO C. SABITSANA, JR v. JUANITO F.
In Pagtalunan v. Manzano, the Court stressed the importance of

MUERTEGUI, G.R. No. 181359 August 5, 2013

complying with the provisions of the Maceda Law as to the

cancellation of contracts to sell involving realty installment

Article 1544 of the Civil Code does not apply to sales involving

schemes. There it was held that the cancellation of the contract by

unregistered land. Suffice it to state that the issue of the buyers

the seller must be in accordance with Section 3 (b) of the Maceda

good or bad faith is relevant only where the subject of the sale is

Law, which requires the notarial act of rescission and the refund to

registered land, and the purchaser is buying the same from the

the buyer of the full payment of the cash surrender value of the

registered owner whose title to the land is clean. In such case, the

payments made on the property. The actual cancellation of the

purchaser who relies on the clean title of the registered owner is

contract takes place after thirty (30) days from receipt by the

protected if he is a purchaser in good faith for value. Act No. 3344

buyer of the notice of cancellation or the demand for rescission of

applies to sale of unregistered lands. What applies in this case is

the contract by a notarial act and upon full payment of the cash

Act No. 3344, as amended, which provides for the system of

surrender value to the buyer.

recording of transactions over unregistered real estate. Act No.

3344 expressly declares that any registration made shall be

SKUNAC CORPORATION AND ALFONSO F. ENRIQUEZ vs.

ROBERTO S. SYLIANTENG AND CAESAR S. SYLIANTENG
G.R. No. 205879, 23 April 2014, THIRD DIVISION (Peralta,
J.)

without prejudice to a third party with a better right.

INDUSTRIAL TEXTILE MANUFACTURING COMPANY OF THE

ANG vs. COURT OF APPEALS, G.R. NO. 177874, September

PHILIPPINES, INC., vs. LPJ ENTERPRISES, INC., G.R. NO.

29, 2008

66140, January 21, 1993 21

The seller, in declaring that he owned and had clean title to the
vehicle at the time the Deed of Absolute Sale, is giving an implied

Respondent alleges that it cannot be held liable for the 47,000

warranty of title which prescribes six months after the delivery of

plastic bags which were not used for packing cement as originally

the vehicle.

intended invoking its right of return. Article 1502 of the Civil

Code, has no application at all to this case, since the provision in

PNB vs MEGA PRIME REALTY AND HOLDINGS

the Uniform Sales Act and the Uniform Commercial Code from

CORPORATION, G.R. NO. 173454, October 6, 2008

which Article 1502 was taken, clearly requires an express written

MEGA PRIME REALTY AND HOLDINGS CORPORATION vs.

agreement to make a sales contract either a sale or return or a

PNB, G.R. NO. 173456, October 6, 2008

sale on approval, which is absent in this case.

Parol or extrinsic testimony could not be admitted for the purpose

In a contract of sale, unless a contrary intention appears, there is

of showing that an invoice or bill of sale that was complete in

an implied warranty on the part of the seller that he has a right to

every aspect and purporting to embody a sale without condition or

sell the thing at the time when the ownership is to pass, and that

restriction constituted a contract of sale or return. If the purchaser

the buyer shall have a peaceful possession of the thing and it shall

desired to incorporate a stipulation securing to him the right of

be free from any hidden faults or defects, or any charge or

return, he should have done so at the time the contract was made.

encumbrance not declared or known to the buyer.

On the other hand, the buyer cannot accept part and reject the
rest of the goods since this falls outside the normal intent of the

ANG vs. COURT OF APPEALS, G.R. NO. 177874, September

parties in the on approval situation.

29, 2008
The seller, in pledging that he will defend the same from all

LO vs. KJS ECO-FORMWORK SYSTEM PHIL., INC., G.R. NO.

claims or any claim whatsoever [and] will save the vendee from

149420 October 8, 2003

any suit by the government of the Republic of the Philippines, is

giving a warranty against eviction. A breach of this warranty

The vendor in good faith shall be responsible for the existence and

requires the concurrence of these four requisites:(1) The purchaser

legality of the credit at the time of the sale, unless it should have

has been deprived of the whole or part of the thing sold; (2) This

been sold as doubtful; but not for the solvency of the debtor,

eviction is by a final judgment; (3) The basis thereof is by virtue of

unless it has been so expressly stipulated or unless the insolvency

a right prior to the sale made by the vendor; and (4) The vendor

was prior to the sale and of common knowledge.

has been summoned and made co-defendant in the suit for

eviction at the instance of the vendee.

LAFORTEZA vs. MACHUCA, G.R. NO. 137552, June 16, 2000

DE YSASI vs. ARCEO, G.R. NO. 136586, November 22, 2001
Petitioner admitted that he inspected the premises three or four

A MOA has this stipulation .SELLER-LESSOR hereby agrees to

times before signing the lease contract and during his inspection,

sell unto BUYER-LESSEE the property described within six (6)

he noticed the rotten plywood on the ceiling which in his opinion

months from the execution date hereof, or upon issuance by the

was caused by leaking water or anay (termites), yet he decided

Court of a new owners certificate of title and the execution of

to go through with the lease agreement. The lessor is responsible

extrajudicial partition with sale of the estate of Francisco

for warranty against hidden defects, but he is not answerable for

Laforteza, whichever is earlier;. Petitioner contends that since

patent defects or those which are visible.

the condition was not met, they no longer had an obligation to

proceed with the sale of the house and lot. The petitioners fail to

ENGINEERING & MACHINERY CORPORATION vs. COURT OF

distinguish between a condition imposed upon the perfection of

APPEALS, G.R. NO. 52267, January 24, 1996

the contract and a condition imposed on the performance of an

obligation, failure to comply with the first condition results in the

The original complaint is one for damages arising from breach of a

failure of a contract, while the failure to comply with the second

written contract and not a suit to enforce warranties against

condition only gives the other party the option either to refuse to

hidden defects. The remedy against violations of the warranty

proceed with the sale or to waive the condition.

against hidden defects is either to withdraw from the contract

(redhibitory action) or to demand a proportionate reduction of the

INTEGRATED PACKAGING CORP. vs. COURT OF APPEALS,

price (accion quanti minoris), with damages in either case.

G.R. NO. 115117, June 8, 2000

There is no dispute that the agreement provides for the delivery of

DINO vs COURT OF APPEALS, G.R. NO. 113564, June 20,

printing paper on different dates and a separate price has been

2001 23

agreed upon for each delivery. When there is a contract of sale of

goods to be delivered by stated installments, which are to be

Respondent made the last delivery of the vinyl products to

separately paid for, and the seller makes defective deliveries in

petitioners on September 28, 1988 and the action to recover the

respect of one or more installments, it depends in each case on

purchase price of the goods petitioners returned to the respondent

the terms of the contract and the circumstances of the case,

was filed on July 24, 1989, more than nine months from the date

whether the breach of contract is so material as to justify the

of last delivery. Actions arising from breach of warranty against

injured party in refusing to proceed further and suing for damages

hidden defects shall be barred after six months from the delivery

for breach of the entire contract, or whether the breach is

of the thing sold.

severable, giving rise to a claim for compensation but not to a

right to treat the whole contract as broken.

was executed by the parties, Later, petitioners resisted the action

VISAYAN SAWMILL COMPANY, INC., vs. THE HONORABLE

for redemption. The transaction between the petitioners and

COURT OF APPEALS, G.R. NO. 83851. March 3, 1993.

private respondents was not a sale with right to repurchase, the

second instrument is just an option to buy since it is not embodied

The petitioner agreed to deliver the scrap iron only upon payment

in the same document of sale but in a separate document, and

of the purchase price by means of an irrevocable and

since such option is not supported by a consideration distinct from

unconditional letter of credit, which the respondent failed to

the price, said deed for right to repurchase is not binding upon

obtain, thus, there was no actual sale. Where the goods have not

them.

been delivered to the buyer, and the buyer has repudiated the
contract of sale, or has manifested his inability to perform his

BAUTISTA vs UNANGST, G.R. NO. 173002, July 4, 2008

obligations, thereunder, or has committed a breach thereof, the

Where in a contract of sale with pacto de retro, the vendor

seller may totally rescind the contract of sale by giving notice of

remains in possession, as a lessee or otherwise, the contract shall

his election to do to the buyer.

be presumed to be an equitable mortgage because in a contract of

sale with pacto de retro, the legal title to the property is

DIAMANTE vs. HON. COURT OF APPEALS, G.R. NO. L-51824

immediately transferred to the vendee, subject to the vendors

February 7, 1992

right to redeem and retention by the vendor of the possession of

A right to repurchase was granted subsequently in an instrument

the property is inconsistent with the vendees acquisition of the

different from the original document of sale which caused the

right of ownership under a true sale.

cancellation of the permit or lease by the Secretary of Fisheries.

An agreement to repurchase becomes a promise to sell when

ABILLA vs. ANG GOBONSENG, JR., G.R. NO. 146651, January

made after the sale, because when the sale is made without such

17, 2002

an agreement, the purchaser acquires the thing sold absolutely,

The legal question to be resolved is May the vendors in a sale

and if he afterwards grants the vendor the right to repurchase, it is

judicially declared as a pacto de retro exercise the right of

a new contract entered into by the purchaser, as absolute owner

repurchase under Article 1606, third paragraph, of the Civil Code,

already of the object.

after they have taken the position that the same was an equitable
mortgage? No, where the proofs established that there could be

VASQUEZ vs. HONORABLE COURT OF APPEALS, G.R. NO.

no honest doubt as to the parties intention, that the transaction

83759 July 12, 1991

was clearly and definitely a sale with pacto de retro, the vendor a

Respondents sold the lot to the petitioners under a Deed of Sale,

retro is not entitled to the benefit of the third paragraph of Article

On the same day and along with the execution of the Deed of

1606.

Sale, a separate instrument, denominated as Right to Repurchase

AGAN vs. HEIRS OF SPS. NUEVA, G.R. NO. 155018,

and was also way below the amount paid by the highest bidder-

December 11, 2003

purchaser of the properties during the auction sale. The

The lower courts dispositive position states: However, the

redemption price should either be fully offered in legal tender or

vendors can still exercise the right to repurchase said property

else validly consigned in court because only by such means can

within thirty (30) days from receipt of this decision pursuant to

the auction winner be assured that the offer to redeem is being

Article 1606 and 1607 of the New Civil Code. Article 1606 grants

made in good faith.

the vendor a retro thirty (30) days from the time final judgment
was rendered, not from the defendants receipt of the judgment,

LEE CHUY REALTY CORPORATION vs.HON. COURT OF

final judgment must be construed to mean one that has become

APPEALS, G.R. NO. 104114 December 4, 1995

final and executory.

Petitioner questions the ruling of the Court of Appeals which

concluded that a prior tender or offer of redemption is a

Spouses CRUZ vs. LEIS et al., G.R. NO. 125233, March 9,

prerequisite or precondition to the filing of the action for legal

2000 26

redemption. To avail of the right of redemption what is essential is

to make an offer to redeem within the prescribed period. There is

The lower court rationalized that petitioners failed to comply with

actually no prescribed form for an offer to redeem to be properly

the provisions of Article 1607 of the Civil Code requiring a judicial

effected. It can either be through a formal tender with

order for the consolidation of the ownership in the vendee a retro

consignation, or by filing a complaint in court coupled with

to be recorded in the Registry of Property. A judicial order is

consignation of the redemption price within the prescribed period.

necessary in order to determine the true nature of the transaction

and to prevent the interposition of buyers in good faith while the

VILLANUEVA vs. HON. ALFREDO C. FLORENDO, G.R. NO. L-

determination is being made, however, notwithstanding Article

33158, October 17, 1985

1607, the recording in the Registry of Property of the consolidation

of ownership of the vendee is not a condition sine qua non to the

It is not disputed that co-ownership exists but the lower court

transfer of ownership for the method prescribed thereunder is

disallowed redemption because it considered the vendee,

merely for the purpose of registering the consolidated title.

Vallangca, a co-heir, being married to Concepcion Villanueva. The

term third person or stranger in Art. 1620 refers to all persons

BPI FAMILY SAVINGS BANK, INC. vs. SPS. VELOSO, G.R. NO.

who are not heirs in succession, either by will or the law or any

141974, August 9, 2004

one who is not a co-owner.

The respondents offer to redeem the foreclosed properties and the

subsequent consignation in court were made within the period of
redemption, but the amount consigned did not include the interest

PRIMARY STRUCTURES CORP. vs. SPS. VALENCIA, G.R. NO.

Co-owners with actual notice of the sale are not entitled to written

150060. August 19, 2003

notice. A written notice is a formal requisite to make certain that

the co-owners have actual notice of the sale to enable them to

Article 1621 of the Civil Code expresses that the right of

exercise their right of redemption within the limited period of

redemption it grants to an adjoining owner of the property

thirty days. But where the co-owners had actual notice of the sale

conveyed may be defeated if it can be shown that the buyer or

at the time thereof and/or afterwards, a written notice of a fact

grantee does not own any other rural land.

already known to them, would be superfluous. The statute does

not demand what is unnecessary.

G.R. NO. 134117. February 9, 2000

SEN PO EK MARKETING CORPORATION vs. MARTINEZ

FRANCISCO vs. BOISER, G.R. NO. 137677, May 31, 2000

Petitioner invokes its right of first refusal against private

respondents, when Teodora sold the property that petitioner has

Art. 1623 of the Civil Code is clear in requiring that the written

been leasing. Article 1622 of the New Civil Code only deals with

notification should come from the vendor or prospective vendor,

small urban lands that are bought for speculation where only

not from any other person. Since the vendor of an undivided

adjoining lot owners can exercise the right of pre-emption or

interest is in the best position to know who are his co-owners who

redemption. It does not apply to a lessee trying to buy the land

under the law must be notified of the sale, and is in the best

that it was leasing, especially when such right was never

position to confirm whether consent to the essential obligation of

stipulated in any of the several lease contracts.

selling the property and transferring ownership thereof to the

vendee has been given.

CABALES vs. COURT OF APPEALS, G.R. NO. 162421, August

31, 2007

LEDONIO vs. CAPITOL DEVELOPMENT CORPORATION, G.R.

Petitioners may redeem the subject property from respondents-

NO. 149040, July 4, 2007

spouses, but they must do so within thirty days from notice in

writing of the sale by their co-owners vendors. In requiring written

An assignment of credit has been defined as an agreement by

notice, Art. 1623 seeks to ensure that the redemptioner is properly

virtue of which the owner of a credit (known as the assignor), by a

notified of (a) the sale and (b) the date of such notice, as the date

legal cause such as sale, dation in payment or exchange or

thereof becomes the reckoning point of the 30-day period of

donation and without need of the debtors consent, transfers

redemption.

that credit and its accessory rights to another (known as the

assignee), who acquires the power to enforce it, to the same

SPOUSES SI vs. COURT OF APPEALS, G.R. NO. 122047,

October 12, 2000

extent as the assignor could have enforced it against the debtor.

TEOCO, JR.,vs METROPOLITAN BANK AND TRUST COMPANY,

Petitioner argues that Mercados delay in registering the Deed of

G.R. NO. 162333, December 23, 2008

Absolute Sale and transferring the land title shows that the real
agreement was an equitable mortgage. Delay in transferring title

Would the exercise by the brothers Teoco of the right to redeem

is not one of the instances enumerated by law in which an

the properties in question be precluded by the fact that the

equitable mortgage can be presumed.

assignment of right of redemption was not contained in a public

document? NO, the phrase effect as against third person in

DEHEZA-INAMARGA vs ALANO, G.R. NO. 171321, December

Article 1625 of the Civil Code is interpreted as to be damage or

18, 2008

prejudice to such third person, hence if the third person would not

The provisions of Article 1602 shall also apply to a contract

be prejudiced then the assignment of right to redeem may not be

purporting to be an absolute sale, and in case of doubt, a contract

in a public instrument.

purporting to be a sale with right to repurchase shall be construed

as an equitable mortgage in consonance with the rule that the law

HEIRS OR REYNALDO DELA ROSA, Namely: TEOFISTA DELA

favors the least transmission of property rights.

ROSA, JOSEPHINE SANTIAGO AND JOSEPH DELA

ROSA, vs. MARIO A. BATONGBACAL, IRENEO BATONGBACAL,

EUGENIO vs. EXECUTIVE SECRETARY, G.R. NO. 109404,

JOCELYN BA TONGBACAL, NESTOR BATONGBACAL AND

January 22, 1996

LOURDES BA TONGBACAL

Did the failure to develop a subdivision constitute legal

G.R. No. 179205, July 30, 2014

justification for the non-payment of amortizations by a buyer on

installment under land purchase agreements entered into prior to

An equitable mortgage is defined as one although lacking in some

the enactment of P.D. 957, The Subdivision and Condominium

formality, or form or words, or other requisites demanded by a

Buyers Protective Decree?

statute, nevertheless reveals the intention of the parties to charge

P.D. 957 is undeniably applicable to the contracts in question, it

real property as security for a debt, and contains nothing

follows that Section 23 thereof had been properly invoked by

impossible or contrary to law. For the presumption of an equitable

private respondent when he desisted from making further

mortgage to arise, two requisites must concur: (1) that the parties

payment to petitioner due to petitioners failure to develop the

entered into a contract denominated as a sale; and (2) the

subdivision project according to the approved plans and within the

intention was to secure an existing debt by way of mortgage.

time limit for complying with the same.

CEBALLOS vs. Intestate Estate of the Late EMIGDIO

PNB vs. OFFICE OF THE PRESIDENT, G.R. NO. 104528,

MERCADO, G.R. NO. 155856, May 28, 2004 30

January 18, 1996

A buyer of a property at a foreclosure sale cannot disposses prior

purchasers on installment of individual lots therein, or compel

Section 20 of R.A. No. 4726, otherwise known as the Condominium

them to pay again for the lots which they previously bought from

Act, provides:

the defaulting mortgagor-subdivision developer on the theory that

P.D. 957, The Subdivision and Condominium Buyers Protective

Sec. 20. An assessment upon any condominium made in

Decree, is not applicable to the mortgage contract in question,

accordance with a duly registered declaration of restrictions shall

the same having been executed prior to the enactment of P.D.

be an obligation of the owner thereof at the time the assessment

957.

is made. The amount of any such assessment plus any other

Moreover, the SC held that, P.D. 957 being applicable, Section 18

charges thereon, such as interest, costs (including attorneys fees)

of said law obliges petitioner Bank to accept the payment of the

and penalties, as such may be provided for in the declaration of

remaining unpaid amortizations tendered by private respondents.

restrictions, shall be and become a lien upon the condominium

Privity of contracts as a defense does not apply in this case for the

assessed when the management body causes a notice of

law explicitly grants to the buyer the option to pay the installment

assessment to be registered with the Register of Deeds of the city

payment for his lot or unit directly to the mortgagee (petitioner),

or province where such condominium project is located. The notice

which is required to apply such payments to reduce the

shall state the amount of such assessment and such other charges

corresponding portion of the mortgage indebtedness secured by

thereon as may be authorized by the declaration of restrictions, a

the particular lot or unit being paid for.

description of the condominium unit against which the same has

been assessed, and the name of the registered owner thereof.

HULST vs. PR BUILDERS, INC., G.R. NO. 156364, September

Such notice shall be signed by an authorized representative of the

25, 2008

management body or as otherwise provided in the declaration of

Petitioner contends that the Contract to Sell between petitioner

restrictions. Upon payment of said assessment and charges or

and respondent involved a condominium unit and did not violate

other satisfaction thereof, the management body shall cause to be

the Constitutional proscription against ownership of land by aliens.

registered a release of the lien.

The law expressly allows foreigners to acquire condominium units

and shares in condominium corporations up to not more than 40%

Such lien shall be superior to all other liens registered subsequent

of the total and outstanding capital stock of a Filipino-owned or

to the registration of said notice of assessment except real

controlled corporation, since under this set up, the ownership of

property tax liens and except that the declaration of restrictions

the land is legally separated from the unit itself.

may provide for the subordination thereof to any other liens and

CARDINAL BUILDING OWNERS ASSOCIATION, INC. vs. ASSET

encumbrances. Such liens may be enforced in the same manner

RECOVERY AND MANAGEMENT CORPORATION, G.R. No.

provided for by law for the judicial or extra-judicial foreclosure of

149696, July 14, 2006

mortgage or real property. Unless otherwise provided for in the

declaration of restrictions, the management body shall have

Being a consensual contract, it is perfected at the moment there is

power to bid at foreclosure sale. The condominium owner shall

a meeting of the minds on the thing and the cause and

have the right of redemption as in cases of judicial or extra-judicial

consideration which are to constitute the contract. Without the

foreclosure of mortgages.

agreement of both parties, no contract of lease can be said to

have been created or established. Nobody can force an owner to

Records do not show that petitioner had its notice of assessment

lease out his property if he is not willing.

registered with the Registry of Deeds of Manila in order that the

amount of such assessment could be considered a lien upon

CA-AG.R.O-INDUSTRIAL DEVELOPMENT CORP. vs. Court of

Maruals two condominium units. Clearly, pursuant to the above

Appeals, G.R. NO. 90027, March 3, 1993

provisions, petitioners claim can not be considered superior to

that of respondent. As mentioned earlier, the deed of sale wherein

We agree with the petitioners contention that the contract for the

Marual conveyed to respondent his two condominium units, was

rent of the safety deposit box is not an ordinary contract of lease

registered in the Registry of Deeds of Manila.

as defined in Article 1643 of the Civil Code. It cannot be

characterized as an ordinary contract of lease under Article 1643

CHATEAU DE BAIE CONDOMINIUM CORPORATION vs.

because the full and absolute possession and control of the safety

SPOUSES MORENO, G.R. NO. 186271, February 23, 2011

deposit box was not given to the joint renters the petitioner and
the Pugaos.

The petition sought to prohibit the scheduled extrajudicial sale for

lack of a special power to sell from the registered owner. Under RA

PARTNERSHIP, AGENCY AND TRUST

4726 (the Condominium Act), when a unit owner fails to pay the
association dues, the condominium corporation can enforce a lien

LIM TONG LIM vs. PHILIPPINE FISHING GEAR INDUSTRIES,

on the condominium unit by selling the unit in an extrajudicial

INC., G.R. NO. 136448, November 3, 1999

foreclosure sale, and a special authority from the condominium

owner before a condominium corporation can initiate a foreclosure

A partnership may be deemed to exist among parties who agree

proceeding is not needed.

to borrow money to pursue a business and to divide the profits or

losses that may arise therefrom, even if it is shown that they have

Pagurayan vs. Reyes, G.R. NO. 154577, July 23, 2008

not contributed any capital of their own to a common fund. Their

contribution may be in the form of credit or industry, not

A contract of lease is a consensual, bilateral, onerous and

commutative contract by which the owner temporarily grants the
use of his property to another who undertakes to pay the rent.

necessarily cash or fixed assets.

ROSARIO U. YULO vs. YANG CHIAO SENG, G.R. NO. L-12541,

(c) As an annuity to a widow or representative of a deceased

August 28, 1959

partner;
(d) As interest on a loan, though the amount of payment vary with

The following are the requisites of partnership: (1) two or more

the profits of the business;

persons who bind themselves to contribute money, property, or

(e) As the consideration for the sale of a goodwill of a business or

industry to a common fund; (2) intention on the part of the

other property by installments or otherwise.

partners to divide the profits among themselves. (Art. 1767, Civil

Code.).

ALFREDO N. AGUILA, JR vs. COURT OF APPEALS and

FELICIDAD S. VDA. DE ABROGAR, G.R. NO. 127347,

HEIRS OF TAN ENG KEE vs .COURT OF APPEALS and

November 25, 1999

BENGUET LUMBER COMPANY, G.R. NO. 126881; October 3,

2000

Under Art. 1768 of the Civil Code, a partnership has a juridical

In determining whether a partnership exists, these rules shall

personality separate and distinct from that of each of the

apply:

partners. The partners cannot be held liable for the obligations of

the partnership unless it is shown that the legal fiction of a

(1) Except as provided by Article 1825, persons who are not

different juridical personality is being used for fraudulent, unfair,

partners as to each other are not partners as to third persons;

or illegal purposes, hence it is the partnership, not its officers or

(2) Co-ownership or co-possession does not of itself establish a

agents, which should be impleaded in any litigation involving

partnership, whether such co-owners or co-possessors do or do

property registered in its name, violation of this rule will result in

not share any profits made by the use of the property;

the dismissal of the complaint.

(3) The sharing of gross returns does not of itself establish a

partnership, whether or not the persons sharing them have a joint

Villareal vs. Ramirez, G.R. NO. 144214. July 14, 2003

or common right or interest in any property which the returns are

derived;

Since it is the partnership, as a separate and distinct entity, that

(4) The receipt by a person of a share of the profits of a business is

must refund the shares of the partners, the amount to be refunded

a prima facie evidence that he is a partner in the business, but no

is necessarily limited to its total resources. In other words, it can

such inference shall be drawn if such profits were received in

only pay out what it has in its coffers, which consists of all its

payment:

assets. However, before the partners can be paid their shares, the

(a) As a debt by installment or otherwise;

creditors of the partnership must first be compensated. After all

(b) As wages of an employee or rent to a landlord;

the creditors have been paid, whatever is left of the partnership

assets becomes available for the payment of the partners shares.

doctrine of delectus personae allows them to have the power,

Angeles vs. Secretary of Justice, G.R. NO. 142612, July 29,

although not necessarily the right, to dissolve the partnership. An

2005

unjustified dissolution by the partner can subject him to a possible

action for damages.

The Angeles spouses position that there is no partnership

because of the lack of a public instrument indicating the same and

Liwanag vs. CA, G.R. NO. 114398, October 24, 1997

a lack of registration with the Securities and Exchange

Commission (SEC) holds no water for the following reasons: first,

Petitioner was charged with the crime of estafa and advances the

the Angeles spouses contributed money to the partnership and

theory that the intention of the parties was to enter into a contract

not immovable property; and second, mere failure to register the

of partnership, wherein Rosales (private complainant for Estafa)

contract of partnership with the SEC does not invalidate a contract

would contribute the funds while she would buy and sell the

that has the essential requisites of a partnership. The purpose of

cigarettes, and later divide the profits between them But even

registration of the contract of partnership is to give notice to third

assuming that a contract of partnership was indeed entered into

parties. Failure to register the contract of partnership does not

by and between the parties, SC ruled that when money or

affect the liability of the partnership and of the partners to third

property have been received by a partner for a specific purpose

persons. Neither does such failure to register affect the

(such as that obtaining in the instant case) and he later

partnerships juridical personality. A partnership may exist even if

misappropriated it, such partner is guilty of estafa.

the partners do not use the words partner or partnership.

Moran, Jr. vs. CA, G.R. NO. L-59956, October 31, 1984
Ortega vs. CA, G.R. NO. 109248, July 3, 1995
The rule is, when a partner who has undertaken to contribute a
The right to choose with whom a person wishes to associate

sum of money fails to do so, he becomes a debtor of the

himself is the very foundation and essence of that partnership. Its

partnership for whatever he may have promised to contribute (Art.

continued existence is, in turn, dependent on the constancy of

1786, Civil Code) and for interests and damages from the time he

that mutual resolve, along with each partners capability to give it,

should have complied with his obligation (Art. 1788, Civil Code).

and the absence of a cause for dissolution provided by the law

Thus in Uy v. Puzon (79 SCRA 598), which interpreted Art. 2200 of

itself. Verily, any one of the partners may, at his sole pleasure,

the Civil Code of the Philippines, we allowed a total of P200,000.00

dictate a dissolution of the partnership at will. He must, however,

compensatory damages in favor of the appellee because the

act in good faith, not that the attendance of bad faith can prevent

appellant therein was remiss in his obligations as a partner and as

the dissolution of the partnership but that it can result in a liability

prime contractor of the construction projects in question.

for damages. Among partners, mutual agency arises and the

Tai Tong Chuache & Co. vs. Insurance Commission, G.R. NO.

ISLAND SALES, INC. vs. UNITED PIONEERS GENERAL

L-55397 February 29, 1988

CONSTRUCTION COMPANY, G.R. NO. L-22493, July 31, 1975

Petitioner being a partnership may sue and be sued in its name or

Defendant company, a general partnership purchased from the

by its duly authorized representative. Thus, Chua as the managing

plaintiff a motor vehicle on an installment basis with the condition

partner of the partnership may execute all acts of administration

that failure to pay any of said installments as they fall due would

including the right to sue debtors of the partnership in case of

render the whole unpaid balance immediately due and

their failure to pay their obligations when it became due and

demandable. Having failed to receive the installment, the plaintiff

demandable.

sued the defendant company for the unpaid balance with

Benjamin C. Daco, Daniel A. Guizona, Noel C. Sim, Romulo B.

Catalan vs. Gatchalian, G.R. NO. L-11648, April 22, 1959

Lumauig, and Augusto Palisoc were included as co-defendants in

their capacity as general partners of the defendant company. In

Catalan and Gatchalian as partners mortgaged two lots together

this case, there were five (5) general partners when the

with the improvements thereon to secure a credit. Catalan

promissory note in question was executed for and in behalf of the

redeemed the property and he contends that title should be

partnership. Since the liability of the partners is pro rata, the

cancelled and a new one must be issued in his name. Under

liability of the appellant Benjamin C. Daco shall be limited to only

Article 1807 of the NCC every partner becomes a trustee for his

one-fifth of the obligations of the defendant company. The fact

co-partner with regard to any benefits or profits derived from his

that the complaint against the defendant Romulo B. Lumauig was

act as a partner. Consequently, when Catalan redeemed the

dismissed, upon motion of the plaintiff, does not unmake the said

properties in question, he became a trustee and held the same in

Lumauig as a general partner in the defendant company. In so

trust for his co partner Gatchalian, subject to his right to demand

moving to dismiss the complaint, the plaintiff merely condoned

from the latter his contribution to the amount of redemption.

Lumauigs individual liability to the plaintiff.

Evangelista & Co. vs. Abad Santos, G.R. NO. L-31684 June

ELMO MUASQUE vs. COURT OF APPEALS, G.R. NO. L-

28, 1973

39780, November 11, 1985

Respondent industrial partner has the right to demand for a formal

There is a general presumption that each individual partner is an

accounting and to receive her share in the net profit that may

authorized agent for the firm and that he has authority to bind the

result from such an accounting.

firm in carrying on the partnership transactions. The presumption

is sufficient to permit third persons to hold the firm liable on

transactions entered into by one of members of the firm acting

apparently in its behalf and within the scope of his authority.

PRIMELINK PROPERTIES AND DEVELOPMENT CORPORATION

vs. LAZATIN-MAGAT, et.al, G.R. NO. 167379, June 27, 2006

ANTONIO C. GOQUIOLAY, ET AL. vs. WASHINGTON Z. SYCIP,

ET AL, G.R. NO. L-11840, December 10, 1963

On dissolution, the partnership is not terminated but continues

until the winding up of partnership affairs is completed. Winding

Where the partnership business is to deal in merchandise and

up means the administration of the assets of the partnership for

goods, i.e., movable property, the sale of its real property

the purpose of terminating the business and discharging the

(immovables) is not within the ordinary powers of a partner,

obligations of the partnership.

because it is not in line with the normal business of the firm. But
where the express and avowed purpose of the partnership is to

MARJORIE TOCAO vs. COURT OF APPEALS, G.R. NO. 127405,

buy and sell real estate (as in the present case), the immovables

October 4, 2000

thus acquired by the firm from part of its stock-in-trade, and the
sale thereof is in pursuance of partnership purposes, hence within

An unjustified dissolution by a partner can subject him to action

the ordinary powers of the partner.

for damages because by the mutual agency that arises in a

partnership, the doctrine of delectus personae allows the partners

1.

TIOSEJO INVESTMENT CORP. vs. Ang, G.R. NO.

to have the power, although not necessarily the right to dissolve

174149, September 8, 2010

the partnership.

Petitioner cannot avoid liability by claiming that it was not in any

COMMISSIONER OF INTERNAL REVENUE vs. WILLIAM J.

way privy to the Contracts to Sell executed by PPGI and

SUTER, G.R. NO. L-25532, February 28, 1969

respondents. As correctly argued by the respondent, a joint

venture is considered in this jurisdiction as a form of partnership

A limited partnership, named William J. Suter Morcoin Co., Ltd.,

and is, accordingly, governed by the law of partnerships and under

was formed on 30 September 1947 by herein respondent William J.

Article 1824 of the Civil Code of the Philippines, all partners are

Suter as the general partner, and Julia Spirig and Gustav Carlson,

solidarily liable with the partnership for everything chargeable to

as the limited partners. The thesis that the limited partnership,

the partnership, including loss or injury caused to a third person or

William J. Suter Morcoin Co., Ltd., has been dissolved by

penalties incurred due to any wrongful act or omission of any

operation of law because of the marriage of the only general

partner acting in the ordinary course of the business of the

partner, William J. Suter to the originally limited partner, Julia

partnership or with the authority of his co-partners.

Spirig one year after the partnership was organized is not tenable.
The subsequent marriage of the partners does not operate to

dissolve it, such marriage not being one of the causes provided for

of attorney are necessary to convey real rights over immovable

that purpose either by the Spanish Civil Code or the Code of

properties. Further the special power of attorney mandated by law

Commerce. The appellants view, that by the marriage of both

must be one that expressly mentions a sale or that includes a sale

partners the company became a single proprietorship, is equally

as a necessary ingredient of the authorized act. Such power must

erroneous. The capital contributions of partners William J. Suter

be must express in clear and unmistakable language. In the

and Julia Spirig were separately owned and contributed by

present case, the pieces of documentary evidence by Sally did not

them before their marriage; and after they were joined in wedlock,

convince the Court as to the existence of agency. Necessarily, the

such contributions remained their respective separate property

absence of a contract of agency renders the contract of sale

under the Spanish Civil Code.

unenforceable. Joy Training effectively did not enter into a valid

contract of sale with the spouses Yoshizaki.

Country Bankers Insurance Corp.. vs. Keppel Cebu

Shipyard, June 18, 2012, G.R. NO. 166044

Lintoja vs. Eternit Corp., G.R. NO. 144805, June 8, 2006

In a contract of agency, a person, the agent, binds himself to

It bears stressing that in an agent-principal relationship, the

represent another, the principal, with the latters consent or

personality of the principal is extended through the facility of the

authority. Thus, agency is based on representation, where the

agent. In so doing, the agent, by legal fiction, becomes the

agent acts for and in behalf of the principal on matters within the

principal, authorized to perform all acts which the latter would

scope of the authority conferred upon him. Such acts have the

have him do. Such a relationship can only be effected with the

same legal effect as if they were personally done by the principal.

consent of the principal, which must not, in any way, be compelled

By this legal fiction of representation, the actual or legal absence

by law or by any court.

of the principal is converted into his legal or juridical presence.

Eurotech Industrial Technologies, Inc. Cuizon, G.R. NO.
SALLY YOSHIZAKI v. JOY TRAINING CENTER OF AURORA,

167552, April 23, 2007

INC., G.R. No. 174978. July 31, 2013

In a contract of agency, a person binds himself to render some
As a general rule, a contract of agency may be oral. However, it

service or to do something in representation or on behalf of

must be written when the law requires a specific form. Specifically,

another with the latters consent. The underlying principle of the

Article 1874 of the Civil Code provides that the contract of agency

contract of agency is to accomplish results by using the services

must be written for the validity of the sale of a piece of land or any

of others to do a great variety of things like selling, buying,

interest therein. Otherwise, the sale shall be void. A related

manufacturing, and transporting. Its purpose is to extend the

provision, Article 1878 of the Civil Code, states that special powers

personality of the principal or the party for whom another acts and

from whom he or she derives the authority to act. It is said that

The Court of Appeals recognized the existence of an agency by

the basis of agency is representation, that is, the agent acts for

estoppels citing Article 1873 of the Civil Code. Apparently, it

and on behalf of the principal on matters within the scope of his

considered that at the very least, as a consequence of the

authority and said acts have the same legal effect as if they were

interaction between Naguiat and Ruebenfeldt, Queao got the

personally executed by the principal. By this legal fiction, the

impression that Ruebenfeldt was the agent of Naguiat, but Naguiat

actual or real absence of the principal is converted into his legal or

did nothing to correct Queaos impression. In that situation, the

juridical presence qui facit per alium facit per se. The elements

rule is clear. One who clothes another with apparent authority as

of the contract of agency are: (1) consent, express or implied, of

his agent, and holds him out to the public as such, cannot be

the parties to establish the relationship; (2) the object is the

permitted to deny the authority of such person to act as his agent,

execution of a juridical act in relation to a third person; (3) the

to the prejudice of innocent third parties dealing with such person

agent acts as a representative and not for himself; (4) the agent

in good faith, and in the honest belief that he is what he appears

acts within the scope of his authority.

to be. The Court of Appeals is correct in invoking the said rule on

agency by estoppel.

Lintoja vs. Eternit Corp., G.R. NO. 144805, June 8, 2006

Siasat vs. Intermediate Appellate Court, G.R. NO. L-67889,
An agency may be expressed or implied from the act of the

October 10, 1985

principal, from his silence or lack of action, or his failure to

repudiate the agency knowing that another person is acting on his

A general agent is one authorized to do all acts pertaining to a

behalf without authority. Acceptance by the agent may be

business of a certain kind or at a particular place, or all acts

expressed, or implied from his acts which carry out the agency, or

pertaining to a business of a particular class or series. He has

from his silence or inaction according to the circumstances.

usually authority either expressly conferred in general terms or in

Agency may be oral unless the law requires a specific form.

effect made general by the usages, customs or nature of the

However, to create or convey real rights over immovable property,

business which he is authorized to transact. An agent, therefore,

a special power of attorney is necessary. Thus, when a sale of a

who is empowered to transact all the business of his principal of a

piece of land or any portion thereof is through an agent, the

particular kind or in a particular place, would, for this reason, be

authority of the latter shall be in writing, otherwise, the sale shall

ordinarily deemed a general agent. A special agent is one

be void.

authorized to do some particular act or to act upon some

particular occasion, acts usually in accordance with specific

Naguiat vs. Court of Appeals, G.R. NO. 118375, October 3,

instructions or under limitations necessarily implied from the

2003

nature of the act to be done

Veloso vs. Court of Appeals, G.R. NO. 102737, August 21,

granting specific powers to the agent pertaining to the petition for

1996

annulment of judgment she instituted in behalf of her father. As

Justice Paras has noted, a general power of attorney may include a

There was no need to execute a separate and special power of

special power if such special power is mentioned or referred to in

attorney since the general power of attorney had expressly

the general power.

authorized the agent or attorney in fact the power to sell the

subject property. The special power of attorney can be included in

Country Bankers Insurance Corp. vs. Keppel Cebu

the general power when it is specified therein the act or

Shipyard, June 18, 2012, G.R. NO. 166044

transaction for which the special power is required. Whether the

instrument be denominated as general power of attorney or

Our law mandates an agent to act within the scope of his

special power of attorney, what matters is the extent of the

authority. The scope of an agents authority is what appears in the

power or powers contemplated upon the agent or attorney in fact.

written terms of the power of attorney granted upon him. Under

If the power is couched in general terms, then such power cannot

Article 1878(11) of the Civil Code, a special power of attorney is

go beyond acts of administration. However, where the power to

necessary to obligate the principal as a guarantor or surety.

sell is specific, it not being merely implied, much less couched in

general terms, there cannot be any doubt that the attorney in fact

Mercado vs. Allied Banking Corpporation, G.R. NO. 171460,

may execute a valid sale. An instrument may be captioned as

July 24, 2007

special power of attorney but if the powers granted are couched

in general terms without mentioning any specific power to sell or

Equally relevant is the rule that a power of attorney must be

mortgage or to do other specific acts of strict dominion, then in

strictly construed and pursued. The instrument will be held to

that case only acts of administration may be deemed conferred

grant only those powers which are specified therein, and the agent
may neither go beyond nor deviate from the power of attorney.

Orbeta vs. Sendiong, G.R. NO. 155236, July 8, 2005

Where powers and duties are specified and defined in an

instrument, all such powers and duties are limited and are

A special power of attorney simply refers to a clear mandate

confined to those which are specified and defined, and all other

specifically authorizing the performance of a specific power and of

powers and duties are excluded. This is but in accord with the

express acts subsumed therein, and there is a specific authority

disinclination of courts to enlarge the authority G.R.anted beyond

given to Mae Sendiong to sign her name in behalf of Paul Sendiong

the powers expressly given and those which incidentally flow or

in contracts and agreements and to institute suits in behalf of her

derive therefrom as being usual and reasonably necessary and

father. Neither would the fact that the document is captioned

proper for the performance of such express powers.

General Power of Attorney militate against its construction as

Angeles vs. Philippines National Railways, G.R. NO.

the very word agency has come to connote control by the

150128, August 31, 2006

principal. The control factor, more than any other, has caused the

A power of attorney is only but an instrument in writing by which a

courts to put contracts between principal and agent in a separate

person, as principal, appoints another as his agent and confers

category.

upon him the authority to perform certain specified acts on behalf

of the principal. The written authorization itself is the power of

Republic vs. Evangelista, G.R. NO. 156015, August 11,

attorney, and this is clearly indicated by the fact that it has also

2005

been called a letter of attorney. Its primary purpose is not to

define the authority of the agent as between himself and his

A contract of agency is generally revocable as it is a personal

principal but to evidence the authority of the agent to third parties

contract of representation based on trust and confidence reposed

with whom the agent deals. Except as may be required by statute,

by the principal on his agent. As the power of the agent to act

a power of attorney is valid although no notary public intervened

depends on the will and license of the principal he represents, the

in its execution.

power of the agent ceases when the will or permission is

withdrawn by the principal. Thus, generally, the agency may be

SHOPPERS PARADISE REALTY & DEVELOPMENT

revoked by the principal at will. However, an exception to the

CORPORATION vs. EFREN P. ROQUE, G.R. NO. 148775,

revocability of a contract of agency is when it is coupled with

January 13, 2004

interest, i.e., if a bilateral contract depends upon the agency. The

reason for its irrevocability is because the agency becomes part of

Article 1878 of the Civil Code expresses that a special power of

another obligation or agreement. It is not solely the rights of the

attorney is necessary to lease any real property to another person

principal but also that of the agent and third persons which are

for more than one year. The lease of real property for more than

affected. Hence, the law provides that in such cases, the agency

one year is considered not merely an act of administration but an

cannot be revoked at the sole will of the principal.

act of strict dominion or of ownership. A special power of attorney

is thus necessary for its execution through an agent.

Lim vs. Saban, G.R. NO. 163720, December 16, 2004

VICTORIAS MILLING CO., INC. vs. COURT OF , G.R. NO.

Under Article 1927 of the Civil Code, an agency cannot be revoked

117356, June 19, 2000

if a bilateral contract depends upon it, or if it is the means of

fulfilling an obligation already contracted, or if a partner is

One factor which most clearly distinguishes agency from other

appointed manager of a partnership in the contract of partnership

legal concepts is control; one person the agent agrees to act

and his removal from the management is unjustifiable. Stated

under the control or direction of another the principal. Indeed,

differently, an agency is deemed as one coupled with an interest

where it is established for the mutual benefit of the principal and

Petitioner assails the validity of the mortgage between Lozano and

of the agent, or for the interest of the principal and of third

PBCOM arguing that on the day the deed was executed there was

persons, and it cannot be revoked by the principal so long as the

yet no principal obligation to secure as the loan of P75,000.00 was

interest of the agent or of a third person subsists. In an agency

not received by the Lozano spouses, so that in the absence of a

coupled with an interest, the agents interest must be in the

principal obligation, there is want of consideration in the accessory

subject matter of the power conferred and not merely an interest

contract, which consequently impairs its validity and fatally affects

in the exercise of the power because it entitles him to

its very existence. A contract of loan being a consensual contract,

compensation. When an agents interest is confined to earning his

said contract of loan was perfected at the same time the contract

agreed compensation, the agency is not one coupled with an

of mortgage was executed, and the promissory note is only an

interest, since an agents interest in obtaining his compensation as

evidence of indebtedness and does not indicate lack of

such agent is an ordinary incident of the agency relationship.

consideration of the mortgage at the time of its execution.

RAMON RALLOS, Administrator of the Estate of

SAURA IMPORT and EXPORT CO., INC. vs. DEVELOPMENT

CONCEPCION RALLOS vs. FELIX GO CHAN & SONS REALTY

BANK OF THE PHILIPPINES, G.R. NO. L-24968, April 27,

CORPORATION, G.R. NO. L-24332, January 31, 1978

1972

By reason of the very nature of the relationship between principal

The trial court rendered judgment for the plaintiff, ruling that there

and agent, agency is extinguished ipso jure upon the death of

was a perfected contract between the parties when the

either principal or agent. Although a revocation of a power of

application of Saura, Inc. for a loan was approved by resolution of

attorney to be effective must be communicated to the parties

the defendant, and the corresponding mortgage was executed and

concerned, yet a revocation by operation of law, such as by death

registered and that the defendant was guilty of breach thereof.

of the principal is, as a rule, instantaneously effective inasmuch as

An accepted promise to deliver something, by way of

by legal fiction the agents exercise of authority is regarded as an

commodatum or simple loan is binding upon the parties, but the

execution of the principals continuing will. With death, the

commodatum or simple loan itself shall not be perferted until the

principals will ceases or is the authority is extinguished.

delivery of the object of the contract.

CREDIT TRANSACTIONS

FRANCISCO HERRERA vs. PETROPHIL CORPORATION, G.R.

NO. L-48349, December 29, 1986

BONEVIE vs CA, G.R. NO. L-49101 October 24, 1983

Pursuant to a contract, the defendant-appellee paid to the
plaintfff-appellant advance rentals for the first eight years,

subtracting therefrom the amount of the interest or discount for

Conditions Governing the Issuance and Use of the BPI Credit Card,

the first eight years, Plaintiff-appellant insists that the lower court

which governs the transaction between petitioner Macalinao and

erred in the computation of the interest collected out of the rentals

respondent BPI.

paid for the first eight years; that such interest was excessive and

The courts may reduce the interest rate as reason and equity

violative of the Usury Law.

demand, for stipulations demanding interest excessive, iniquitous,

The contract between the parties is one of lease and not of loan

unconscionable and exorbitant interest rates are void for being

since the provision for the payment of rentals in advance cannot

contrary to morals, if not against the law.

be construed as a repayment of a loan because there was no

grant or forbearance of money as to constitute an indebtedness

ECE REALTY and DEVELOPMENT, INC. vs. HAYDYN

on the part of the lessor, hence usury law will not apply.

HERNANDEZ
G.R. No. 212689, August 11, 2014

PNB vs. CA, G.R. NO. 75223, March 14, 1990

Since July 1, 2013, the rate of twelve percent (12%) per annum
An escalation clause is a valid provision in the loan agreement

from finality of the judgment until satisfaction has been brought

provided that (1) the increased rate imposed or charged does

back to six percent (6%). Section 1 of Resolution No. 796 of the

not exceed the ceiling fixed by law or the Monetary Board; (2) the

Monetary Board of the Bangko Sentral ng Pilipinas dated May 16,

increase is made effective not earlier than the effectivity of the

2013 provides: The rate of interest for the loan or forbearance of

law or regulation authorizing such an increase; and (3) the

any money, goods or credits and the rate allowed in judgments, in

remaining maturities of the loans are more than 730 days as of

the absence of an express contract as to such rate of interest,

the effectivity of the law or regulation authorizing such an

shall be six percent (6%) per annum. Thus, the rate of interest to

increase.

be imposed from finality of judgments is now back at six percent

(6%), the rate provided in Article 2209 of the Civil Code.

ILEANA DR. MACALINAO vs BANK OF THE PHILIPPINE

ISLANDS, G.R. NO. 175490, September 17, 2009

CATHOLIC VICAR APOSTOLIC CHURCH vs. CA, G.R. L-8029495, September 21, 1988

In its Complaint, respondent BPI originally imposed the interest

When respondents allowed the free use of the property they

and penalty charges at the rate of 9.25% per month or 111% per

became bailors in commodatum and the petitioner the bailee. The

annum which was declared as unconscionable by the lower courts

bailees failure to return the subject matter of commodatum to the

for being clearly excessive, and was thus reduced to 2% per

bailor did not mean adverse possession on the part of the

month or 24% per annum but which the CA modified increased

borrower. The bailee held in trust the property subject matter of

them to 3% per month or 36% per annum based on the Terms and

commodatum. Hence, an adverse claim could not ripen into title

by way of ordinary acquisitive prescription because of the absence

The disputed property is private land and this possession was

of just title.

interrupted only by the occupation of the land by the U.S. Navy

which eventually abandoned the premises. The heirs of the late

REPUBLIC OF THE PHILIPPINES vs BAGTAS, G.R. NO. L-

Baloy, are now in actual possession, and this has been so since

17474, October 25, 1962

the abandonment by the U.S. Navy. The occupancy of the U.S.

Navy partakes of the character of a commodatum, and ones

The appellant had been in possession of the bull even after the

ownership of a thing may be lost by prescription by reason of

expiration of the contract. He contends, however, that since the

anothers possession if such possession be under claim of

contract was commodatum the appellee retained ownership or

ownership, not where the possession is only intended to be

title to the bull. Hence, it should suffer its loss due to force

transient, in which case the owner is not divested of his title,

majeure.

although it cannot be exercised in the meantime.

A contract of commodatum is essentially gratuitous. If the

breeding fee be considered a compensation, then the contract

HERRERA vs. PETROPHIL CORPORATION, G.R. NO. L-48349

would be a lease of the bull. Under article 1671 of the Civil Code

December 29, 1986

the lessee would be subject to the responsibilities of a possessor

in bad faith, because she had continued possession of the bull

The difference between a discount and a loan or forbearance is

after the expiry of the contract. And even if the contract

that the former does not have to be repaid. The loan or

be commodatum, still the appellant is liable, because article 1942

forbearance is subject to repayment and is therefore governed by

of the Civil Code provides that a bailee in a contract

the laws on usury.

of commodatum
. . . is liable for loss of the things, even if it should be through a

BRIONES vs. CAMMAYO, G.R. NO. L-23559, October 4, 1971

fortuitous event:
In simple loan with stipulation of usurious interest, the prestation
(2) If he keeps it longer than the period stipulated . . .

of the debtor to pay the principal debt, which is the cause of the

(3) If the thing loaned has been delivered with appraisal of its

contract is not illegal. The illegality lies only as to the prestation to

value, unless there is a stipulation exempting the bailee from

pay the stipulated interest. Hence, being separable, the latter only

responsibility in case of a fortuitous event; xxx

should be deemed void, since it is the only one that is illegal.

REPUBLIC OF THE PHILIPPINES vs. CA, G.R. NO. L-46145

INTEGRATED REALTY CORPORATION vs. PHILIPPINE

November 26, 1986

NATIONAL BANK, G.R. NO. L-60705, June 28, 1989

OBM contends that it had agreed to pay interest only up to the

honor the time deposit is failure to pay s obligation as a debtor

dates of maturity of the certificates of time deposit and that

and not a breach of trust arising from depositarys failure to return

respondent Santos is not entitled to interest after the maturity

the subject matter of the deposit

dates had expired, unless the contracts are renewed. When

respondent invested his money in time deposits with OBM they

COMMONWEALTH INSURANCE CORPORATION vs. CA, G.R.

entered into a contract of simple loan or mutuum, not a contract

NO. 130886. January 29, 2004

of deposit.
Petitioners liability under the suretyship contract is different from
BPI vs. CA, G.R. NO. L-66826 August 19, 1988

its liability under the law. There is no question that as a surety,

petitioner should not be made to pay more than its assumed

The document which embodies the contract states that the

obligation under the surety bonds. However, it is clear from the

US$3,000.00 was received by the bank for safekeeping. A deposit

above-cited jurisprudence that petitioners liability for the

is constituted from the moment a person receives a thing

payment of interest is not by reason of the suretyship agreement

belonging to another, with the obligation of safely keeping it and

itself but because of the delay in the payment of its obligation

of returning the same, but if the safekeeping of the thing delivered

under the said agreement.

is not the principal purpose of the contract, there is no deposit but

some other contract.

THE MANILA INSURANCE CO INC vs SPOUSES AMURAO, G.R.

NO. 179628, January 16, 2013

BPI vs. CA, G.R. NO. 104612, May 10, 1994

Bank deposits are in the nature of irregular deposits; they are

Petitioner imputes error on the part of the CA in treating petitioner

really loans because they earn interest. The relationship then

as a solidary debtor instead of a solidary guarantor and argues

between a depositor and a bank is one of creditor and debtor, and

that while a surety is bound solidarily with the obligor, this does

the deposit under the questioned account was an ordinary bank

not make the surety a solidary co-debtor. A suretys liability is joint

deposit; hence, it was payable on demand of the depositor.

and several and although the contract of suretyship is secondary

to the principal contract, the suretys liability to the obligee is

SERRANO vs. CENTRAL BANK OF THE PHILIPPINES, G.R. NO.

nevertheless direct, primary, and absolute.

L-30511, February 14, 1980

THE IMPERIAL INSURANCE, INC. vs. DE LOS ANGELES, G.R.
All kinds of bank deposits, whether fixed, savings, or current are to
be treated as loans and are to be covered by the law on loans
because it can use the same. Failure of he respondent Bank to

NO. L-28030, January 18, 1982

Imperial Insurance, Inc. bound itself solidarily with the principal,

upon a principal one which, in this case is the loan obtained by

the deceased defendant Reyes. In accordance with Article 2059,

Daicor as evidenced by a promissory note. By the terms, it can be

par. 2 of the Civil Code of the Philippines, excussion (previous

clearly seen that the surety agreement was executed to guarantee

exhaustion of the property of the debtor) shall not take place if

future debts which Daicor may incur with petitioner since a

he (the guarantor) has bound himself solidarily with the debtor,

guaranty may also be given as security for future debts, the

hence the petitioner cannot escape liability on its counter-bonds.

amount of which is not yet known; there can be no claim against

the guarantor until the debt is liquidated.

MANILA SURETY & FIDELITY CO., INC. vs. ALMEDA, G.R. NO.
L-27249 July 31, 1970

REPUBLIC OF THE PHILIPPINES vs. PAL-FOX LUMBER CO.,

INC., G.R. NO. L-26473, February 29, 1972

There is no question that under the bonds posted in favor of the

On whether the suretys liability can exceed the amount of its

NAMARCO in this case, the surety company assumed to make

bond, it is enough to remark that while the guarantee was for the

immediate payment to said firm of any due and unsettled

original amount of the debt of Gabino Marquez, the amount of the

accounts of the debtor-principal, even without demand and notice

judgment by the trial court in no way violates the rights of the

of the debtors non-payment, the surety, in fact, agreeing that its

surety. If it (the guaranty) be simple or indefinite, it shall comprise

liability to the creditor shall be direct, without benefit of

not only the principal obligation but also all its accessories,

exhaustion of the debtors properties, and to remain valid and

including judicial costs, provided with respect to the latter, that

continuous until the guaranteed obligation is fully satisfied. In

the guarantor shall only be liable for those costs incurred after he

short, appellant secured to the creditor not just the payment by

has been judicially required to pay.

the debtor-principal of his accounts, but the payment itself of such

accounts. Clearly, a contract of suretyship was thus created, the

CENTRAL BANK OF THE PHILIPPINES vs. CA, G.R. NO. L-

appellant becoming the insurer, not merely of the debtors

45710 October 3, 1985

solvency or ability to pay, but of the debt itself. Under the Civil
Code, with the debtors insolvency having been judicially

The fact that when Sulpicio M. Tolentino executed a real estate

recognized, herein appellants resort to the courts to be released

mortgage, no consideration was then in existence, as there was no

from the undertaking thus assumed would have been appropriate.

debt yet because Island Savings Bank had not made any release
on the loan, does not make the real estate mortgage void for lack

RCBC vs. ARRO, G.R. NO. L-49401, July 30, 1982

of consideration. It is not necessary that any consideration should

pass at the time of the execution of the contract of real mortgage,

The surety agreement which was earlier signed by Enrique and

it may either be a prior or subsequent matter, but when the

private respondent, is an accessory obligation, it being dependent

consideration is subsequent to the mortgage, the mortgage can

take effect only when the debt secured by it is created as a

The defendant bank as pledgee was therefore entitled to the

binding contract to pay.

actual possession of the vessels, and while it is true that plaintiff

continued operating the vessels after the pledge contract was

CENTRAL BANK OF THE PHILIPPINES vs. CA, G.R. NO. L-

entered into, his possession was expressly made subject to the

45710, October 3, 1985

order of the pledgee. On the other hand, there is an authority

supporting the proposition that the pledgee can temporarily

Where the indebtedness actually owing to the holder of the

entrust the physical possession of the chattels pledged to the

mortgage is less than the sum named in the mortgage, the

pledgor without invalidating the pledge. In such a case, the

mortgage cannot be enforced for more than the actual sum due.

pledgor is regarded as holding the pledged property merely as

trustee for the pledgee.

INTEG.R.ATED REALTY CORPORATION vs. PHILIPPINE

NATIONAL BANK, G.R. NO. L-60705, June 28, 1989

MAKATI LEASING and FINANCE CORPORATION vs.

OVERSEAS BANK OF MANILA vs.CA, G.R. NO. L-60907 June

WEAREVER TEXTILE MILLS, INC., G.R. NO. L-58469, May 16,

28, 1989

1983

The facts and circumstances leading to the execution of the deed

A house of strong materials may be considered as personal

of assignment, has satisfied the requirements of a contract of

property for purposes of executing a chattel mortgage thereon as

pledge (1) that it be constituted to secure the fulfillment of a

long as the parties to the contract so agree and no innocent third

principal obligation; (2) that the pledgor be the absolute owner of

party will be prejudiced thereby. There is absolutely no reason why

the thing pledged; (3) that the persons constituting the pledge

a machinery, which is movable in its nature and becomes

have the free disposal of their property, and in the absence

immobilized only by destination or purpose, may not be likewise

thereof, that they be legally authorized for the purpose. The

treated as such. This is really because one who has so agreed is

further requirement that the thing pledged be placed in the

estopped from denying the existence of the chattel mortgage.

possession of the creditor, or of a third person by common

agreement was complied with by the execution of the deed of

BUNDALIAN vs. CA, G.R. NO. L-55739, June 22, 1984

assignment in favor of PNB.

The contract also provides that it is agreed that the vendor shall
YULIONGSIU vs. PNB, G.R. NO. L-19227, February 17,

have the right to possess, use, and build on, the property during

1968 67

the period of redemption. When the vendee acknowledged the

right of the vendor to retain possession of the property the

contract is one of loan guaranteed by mortgage, not a conditional

CENTRAL BANK OF THE PHILIPPINES vs. CA, G.R. NO. L-

sale or an option to repurchase.

45710, October 3, 1985

TIOSECO vs. CA, G.R. NO. L-66597, August 29, 1986

Where the indebtedness actually owing to the holder of the
When the respondents chose to enforce their right of redemption

mortgage is less than the sum named in the mortgage, the

thru a court action they were well within their right as the action

mortgage cannot be enforced for more than the actual sum due.

was filed within one year from the registration of the foreclosure
sale of the real estate. The law does not even require any previous

RAMIREZ vs. CA, G.R. NO. L-38185, September 24, 1986

notice to the vendee, nor a meeting between him and the

redemptioner, much less a previous formal tender before any

The antichretic creditor cannot ordinarily acquire by prescription

action is begun in court to enforce the right of redemption.

the land surrendered to him by the debtor. The petitioners are not
possessors in the concept of owner but mere holders placed in

PNB vs. CA, G.R. NO. L-60208, December 5, 1985

possession of the land by its owners, thus, their possession cannot

serve as a title for acquiring dominion.

When the foreclosure proceedings are completed and the

mortgaged property is sold to the purchaser then all interest of the

OCAMPO vs. DOMALANTA, G.R. NO. L-21011, August 30,

mortgagor are cut off from the property Prior to the completion of

1967

the foreclosure, the mortgagor is liable for the interests on the

mortgage. However, after the foreclosure proceedings and the

A proceeding for judicial foreclosure of mortgage is an action quasi

execution of the corresponding certificate of sale of the property

in rem. It is based on a personal claim sought to be enforced

sold at public auction in favor of the successful bidder, the

against a specific property of a person named party defendant.

redemptioner mortgagor would be bound to pay only for the

And, its purpose is to have the property seized and sold by court

amount of the purchase price with interests thereon at the rate of

order to the end that the proceeds thereof be applied to the

one per centum per month in addition up to the time of

payment of plaintiffs claim.

redemption, together with the amount of any assessments or

taxes which the purchaser may have paid thereon after the

CENTRAL BANK OF THE PHILIPPINES vs. CA, G.R. NO. L-

purchase and interest on such last named amount at the same

45710, October 3, 1985

rate.
A pledge or mortgage is indivisible even though the debt may be
divided among the successors in interest of the debtor or creditor.

Therefore, the debtors heirs who has paid a part of the debt can
not ask for the proportionate extinguishment of the pledge or
mortgage as long as the debt is not completely satisfied, neither

680 HOME APPLIANCES, INC. vs. THE HONORABLE COURT

can the creditors heir who have received his share of the debt

OF APPEALS

return the pledge or cancel the mortgage, to the prejudice of other

G.R. No. 206599, September 29, 2014

heirs who have not been paid.

The remedy provided under Section 8 of Act No. 3135 to the
PHILNICO INDUSTRIAL CORPORATION vs. PRIVATIZATION

debtor becomes available only after the purchaser acquires actual

AND MANAGEMENT OFFICE

possession of the property. This is required because until then the

G.R. No. 199420, August 27, 2014

debtor, as the owner of the property, does not lose his right to
possess. However, upon the lapse of the redemption period

The Pledge Agreement secures, for the benefit of PMO, the

without the debtor exercising his right of redemption and the

performance by PIC of its obligations under both the ARDA and the

purchaser consolidates his title, it becomes unnecessary to require

Pledge Agreement itself. It is with the execution of the Pledge

the purchaser to assume actual possession thereof before the

Agreement that PIC turned over possession of its certificates of

debtor may contest it. Possession of the land becomes an absolute

shares of stock in PPC to PMO. As the RTC pertinently observed in

right of the purchaser, as this is merely an incident of his

its Order dated June 19, 2003, there had already been a shift in

ownership. The debtor contesting the purchasers possession may

the relations of PMO and PIC, from mere seller and buyer, to

no longer avail of the remedy under Section 8 of Act No. 3135, but

creditor-pledgee and debtor-pledgor. Having enjoyed the security

should pursue a separate action e.g., action for recovery of

and benefits of the Pledge Agreement, PMO cannot now insist on

ownership, for annulment of mortgage and/or annulment of

applying Section 8.02 of the ARDA and conveniently and arbitrarily

foreclosure.

exclude and/or ignore the Pledge Agreement so as to evade the

prohibition against pactum commissorium.

TORTS AND DAMAGES

More importantly, the Court, in determining the existence of

Ylarde vs. Aquino, 163 SCRA 697

pactum commissorium, had focused more on the evident intention

Teacher Edgardo Aquino, after bringing his pupils to an excavation

of the parties, rather than the formal or written form. In A.

site dug by them, left them all by themselves, and one of the

Francisco Realty and Development Corporation v. Court of

pupils fell into the pit. A teacher acted with fault and gross

Appeals, therein petitioner similarly denied the existence of

negligence because a teacher who standsin loco parentis to his

pactum commissorium because the proscribed stipulation was

pupils would have made sure that the children are protected from

found in the promissory note and not in the mortgage deed.

all harm in his company.

The driver of a dump truck parked it improperly at night near his

Cogeo-Cubao Operators and Drivers Association vs. Court

residence and it was bumped by the driver of a car, who suffered

of Appeals, G.R. NO. 100727, March 18, 1992

damages. The proximate cause of the accident was the improper

parking of the dump truck.

Cogeo-Cubao Operators and Drivers Association, a group of

drivers, took over all jeepneys of a transportation company,

Africa vs. Caltex, 16 SCRA 448

Lungsod Corporation, as well as the operation of the service in the

companys route without authority from the Public Service

A fire broke out at a gasoline station while gasoline was being

Commission. The act was in violation of Article 21 of the Civil Code

hosed from a tank truck into the underground storage, right at the

[Any person who willfully causes loss or injury to another in a

opening of the receiving tank where the nozzle of the hose was

manner that is contrary to morals, good customs or public policy

inserted, as a result of which several houses were burned. Under

shall compensate the latter for damages] because the

the principle of res ipsa loquitor, the employees negligence was

constitutional right of the drivers to redress their grievances with

the proximate cause of the fire which in the ordinary course of

the company should not undermine public peace and order nor

things does not happen.

should it violate the legal rights of other persons.

F.F. Cruz and Co. vs. Court of Appeals, 164 SCRA 731

Gabeto vs. Araneta, 42 Phil. 232

A fire that broke out in the furniture shop of the petitioner spread

Araneta stopped a calesa with passengers aboard on the street

to an adjacent house because of the shop owners failure to

and seized the rein of the horses bridle, by reason of which the

construct a firewall as required by a city ordinance. The doctrine

driver brought the carromata to the adjacent curb and alighted to

of res ipsa loquitur, which is applied by the Court in this case, may

fix the bridle, and while the driver was engaged at the horses

be stated as follows: Where the thing which caused the injury

head, the horse moved forward bringing down a police telephone

complained of is shown to be under the management of the

box, and because of the noise caused thereby, the horse was

defendant or his servants and the accident is such as in the

frightened and it ran away and one of the passengers jumped and

ordinary course of things does not happen if those who have its

was killed. Aranetas act in stopping the horse was held as not the

management or control use proper care, it affords reasonable

proximate cause of the accident because the bridle was old, and

evidence, in the absence of explanation by the defendant, that the

the leather of which it was made was probably so weak as to be

accident arose from want of care.

easily broken.

Phoenix Construction, Inc. vs. Dionisio, 148 SCRA 353

Gregorio vs. Go, 102 Phil. 556

Go ordered his cargador, who had only a students permit to drive

contributory negligence as an absolute bar to recovery by the

his truck, but a policeman who boarded the truck took the wheel,

plaintiff, has itself been rejected, as it has been in Article 2179 of

and while driving the truck, it hit and ran over a pedestrian. There

the Civil Code of the Philippines.

was no direct and proximate casual connection between the

defendants negligence and the death because the proximate

Is there perhaps a general concept of last clear chance that may

immediate and direct cause of the death was the negligence of

be extracted from its common law matrix and utilized as a general

the policeman.

rule in negligence cases in a civil law jurisdiction like ours? We do

not believe so. Under Article 2179, the task of a court, in technical

Phoenix Construction, Inc. vs. Intermediate Appellate

terms, is to determine whose negligence the plaintiffs or the

Court, 148 SCRA 353

defendants was the legal or proximate cause of the injury. That

task is not simply or even primarily an exercise in chronology or

Dionisios negligence was only contributory, that the immediate

physics, as the petitioners seem to imply by the use of terms like

and proximate cause of the injury remained the truck drivers

last or intervening or immediate. The relative location in the

lack of due care and that consequently respondent Dionisio may

continuum of time of the plaintiffs and the defendants negligent

recover damages though such damages are subject to mitigation

acts or omissions, is only one of the relevant factors that may be

by the courts (Article 2179, Civil Code of the Philippines).

taken into account. Of more fundamental importance are the

nature of the negligent act or omission of each party and the

Phoenix Construction, Inc. vs. Intermediate Appellate

character and gravity of the risks created by such act or omission

Court, 148 SCRA 353

for the rest of the community. The petitioners urge that the truck
driver (and therefore his employer) should be absolved from

Petitioners sought the application of the doctrine of last clear

responsibility for his own prior negligence because the unfortunate

chance. The Supreme Court said that the common law rule of

plaintiff failed to act with that increased diligence which had

contributory negligence prevented any recovery at all by a plaintiff

become necessary to avoid the peril precisely created by the truck

who was also negligent, even if the plaintiffs negligence was

drivers own wrongful act or omission. To accept this proposition is

relatively minor as compared with the wrongful act or omission of

to come too close to wiping out the fundamental principle of law

the defendant. The common law notion of last clear chance

that a man must respond for the forseeable consequences of his

permitted courts to grant recovery to a plaintiff who had also been

own negligent act or omission. Our law on quasi-delicts seeks to

negligent provided that the defendant had the last clear chance to

reduce the risks and burdens of living in society and to allocate

avoid the casualty and failed to do so. Accordingly, it is difficult to

them among the members of society. To accept the petitioners

see what role, if any, the common law last clear chance doctrine

pro-position must tend to weaken the very bonds of society.

has to play in a jurisdiction where the common law concept of

Philippine Bank of Commerce vs. Court of Appeals, 269

made liable for all the consequences of the accident

SCRA 695

notwithstanding the prior negligence of the plaintiff.

Respondent entrusted companys cash for deposit to his secretary

Cebu Shipyard and Engineering Works, Inc. vs. William

who defrauded the company by depositing the money, not to the

Lines, Inc., 306 SCRA 762

companys account, but to her husband who maintained similar

account with the bank, made possible because the duplicate slip

The passenger ship of William Lines, Inc. caught fire and sank

was not compulsory required by the bank in accepting the

while in the custody of Cebu Shipyard and Engineering Works to

deposits. Under the doctrine of last clear chance, an antecedent

which it was brought for annual repair. The doctrine of res ipsa

negligence of a person does not preclude the recovery of damages

loquitor applies here because the fire that occurred and consumed

for the supervening negligence of, or bar a defense against

MV Manila City would not have happened in the ordinary course of

liability sought by another, if the latter, who had the last fair

things if reasonable care and diligence had been exercised by

chance, could have avoided, the impending harm by the exercise

Cebu Shipyard.

of due diligence. Here, assuming that the respondent company

was negligent in entrusting cash to a dishonest employee, thus

Radio Communications of the Phils., Inc. [RCPI] vs. Court of

providing the latter with the opportunity to defraud the company,

Appeals, 143 SCRA 657

as advanced by the petitioner, yet it cannot be denied that the

petitioner bank, thru its teller, had the last clear opportunity to

Defamatory words were inserted in the telegram sent by

avert the injury incurred by its client, simply by faithfully

respondent Timan, which were not noticed and were included by

observing their self-imposed validation procedure.

the RCPI in the teleG.R.am when delivered. Since negligence may

be hard to substantiate in some cases, we may apply the doctrine

Pantranco North Express, Inc. vs. Baesa, 179 SCRA 384

of RES IPSA LOQUITUR (the thing speaks for itself), by considering

the presence of facts or circumstances surrounding the injury.

The driver of a Pantranco bus encroached into the lane of an

incoming jeepney and failed to return the bus immediately to its

Custodio vs. Court of Appeals, 253 SCRA 483

own lane upon seeing the jeepney coming from the opposite
direction, resulting to the death of eight passengers of the jeep.

Custodio filed a case for damages because his tenants cancelled

The doctrine of last clear chance does not take into operation here

their contract of lease due to adobe fences constructed by

because it applies only in a situation where the plaintiff was guilty

adjoining lot owners which restricted passage from and to his

of prior or antecedent negligence but the defendant, who had the

apartment. To warrant the recovery of damages, there must be

last fair chance to avoid the impending harm and failed to do so, is

both a right of action for a legal wrong inflicted by the defendant,

and damage resulting to the plaintiff therefrom as a wrong without

damage, or damage without wrong, does not constitute a cause of

Valenzuela did not receive his full commission which amounted to

action, since damages are merely part of the remedy allowed for

P1.6 Million from the P4.4 Million insurance coverage of the Delta

the injury caused by a breach or wrong.

Motors he obtained for Philippine American General Insurance

(Philamgen) because the Philamgen terminated their agency

Metropolitan Bank and Trust Company vs. Tan Chuan

agreement after Valenzuela refused to share his commission with

Leong, 42 SCRA 352

the company. Philamgen was found to have acted with bad faith
and with abuse of right in terminating the agency under the

Although B&I Trading had knowledge of the simulated sale

principle that every person must in the exercise of his rights and

between Tan Chuan Leong and his son and had entered into the

in the performance of his duties act with justice, give everyone his

contract of mortgage pursuant to a design to defraud Leongs

due, and observe honesty and good faith (Art. 19, Civil Code), and

creditors, no damage or prejudice appears to have been suffered

every person who, contrary to law, willfully or negligently causes

by the petitioner thereby. Absent damage or prejudice, no right of

damages to another, shall indemnify the latter for the same.

action arises in favor of the petitioner because wrongful violation

of a legal right is not a sufficient element of a cause of action

Sanitary Steam Laundry, Inc. vs. Court of Appeals, 300

unless it has resulted in an injury causing loss or damages.

SCRA 20 83

Yu vs. Court of Appeals, 217 SCRA 328

The driver was in violation of the Land Transportation and Traffic

Code when its vehicle got involved in an accident that killed three

House of Mayfair, a foreign manufacturer of wall covering

persons. For the driver to be found negligent petitioner must show

products, with which Yu has had an exclusive distributorship

that the violation of the statute was the proximate or legal cause

aageement was duped into believing that the goods ordered

of the injury or that it substantially contributed thereto because

through the FNF Trading were to be shipped to Nigeria only, but

such negligence, consisting in whole or in part, of violation of law,

the goods were actually sent to and sold in the Philippines. A ploy

like any other negligence is without legal consequence unless it is

of this character is akin to the scenario of a third person who

a contributing cause of the injury.

induces a party to renege on or violate his undertaking under a

contract, thereby entitling the other contracting party to relief

Mckee vs. Intermediate Appellate Court, 211 SCRA 517

therefrom.
A head-on-collision took place between a cargo truck driver and a
Valenzuela vs. Court of Appeals, G.R. NO. 83122, October

car driver Jose Koh, which resulted in the death of Jose Koh and

19, 1990

two others because the Koh avoided hitting two boys who

suddenly darted across the lane. Under the Emergency Rule, Koh

proximity of a place frequented by many persons, with the

was not negligent because his entry into the lane of the truck was

possibility of coming in contact with a highly charged and

necessary in order to avoid what was, in his mind at that time, a

defectively insulated wire.

greater peril of death or injury to the two boys. Under this rule, a
person who, without fault or negligence on his part, is suddenly

Bernardo vs. Legaspi, 29 Phil. 12

placed in an emergency or unexpected danger and compelled to

act instantly and instinctively with no time for reflection and

Two automobiles, going in opposite directions, collide on turning a

exercise of the required precaution, is not guilty of negligence and,

street corner, and it appears from the evidence that the drivers

therefore, exempt from liability, if he did not make the wisest

were equally negligent and contributed equally to the collision.

choice of the available courses of conduct to avoid injury which a

Under the doctrine of contributory negligence, neither can recover

reasonably prudent person would have made under normal

from the other for the damages suffered.

circumstances.
Negros Navigation Co., Inc. vs. Court of Appeals, 281 SCRA
Del Rosario vs. Manila Electric Co., 57 Phil. 478

534

An overhead wire of Meralco conducting electricity parted and one

The ship captain of MT Tacloban City, an oil tanker owned by

of the charged ends fell to the ground, and a nine (9) year old

PNOC, was playing mah-jong when it collided off the Tablan Strait

school child touched the wire and was electrocuted. It is doubtful

in Mindoro, with M,V Don Juan owned by petitioner NENACO. The

whether contributory negligence can properly be imputed to the

owner of the ship was found equally negligent with the ship

deceased, owing to his immature years and the natural curiosity

captain because of tolerating the playing of mahjong by the ship

which a child would feel to do something out of the ordinary, and

captain and other crew members while on board the ship and

the mere fact that the deceased ignored the caution of a

failing to keep the ship seaworthy.

companion of the age of 8 years does not, in our opinion, alter the
case.

Philippine Long Distance Telephone Co., Inc. vs. Court of

Appeals, 178 SCRA 94

Astudillo vs. Manila Electric Co., 55 Phil. 327

The jeepney of the respondents fell into an open excavation when
A young man by the name of Juan Diaz Astudillo met his death

the jeep swerved from the inside lane of the street, respondents

through electrocution, when he placed his right hand on a wire

being aware of the presence of said excavation. The negligence of

connected with an electric light pole owned by Meralco. Meralco

respondent Antonio Esteban was not only contributory to his

was negligent in so placing the pole and wires as to be within the

injuries and those of his wife but goes to the very cause of the

occurrence of the accident, as one of its determining factors, and

Atty. Gunigundo was charged by his client Roque with G.R.oss

thereby precludes their right to recover damages.

negligence in not seasonably filing their motion for reconsideration

and in not perfecting an appeal from the trial courts order of

Ramos vs. Court of Appeals, 321 SCRA 584

dismissal. Atty. Gunigundos filing of motions for extension on the

last day and sending them by registered mail (thus giving the

At the time of her admission, patient Erlinda Ramos was

court insufficient time to act before the extension sought had

neurologically sound but during the administration of anesthesia

expired) and his omission to verify whether his second motion for

and prior to the performance of a gall bladder operation, she

extension was granted are indicative of lack of competence,

suffered irreparable damage to her brain and was diaganosed to

diligence and fidelity in the dispatch of his clients business.

be suffering from diffuse cerebral parenchymal damage. The

damage sustained by Erlinda Erlinda in her brain prior to a

Adarne vs. Aldaba, 83 SCRA 734

scheduled gall bladder operation presents a case for the

application of res ipsa loquitur in medical malpractice as it was

Adarne was declared in default for failure to appear in the hearing

found out that brain damage does not normally occur in the

because his one of his lawyers honestly believed that he had

process of gall bladder operations, and does not happen in the

appeared for the complainant only for a special purpose and that

absence of negligence of someone in the administration of

the complainant had agreed to contact his attorney of record to

anesthesia and in the use of endotracheal tube.

handle his case after the hearing of October 23, 1964, so that he
did nothing more about it. An attorney is not bound to exercise

Batiquin vs. Court of Appeals, 258 SCRA 334

extraordinary diligence, but only a reasonable degree of care and

skill having reference to the character of the business he

A piece of rubber glove was left in the abdomen of a patient after

undertakes to do.

a caesarean section operation. The doctrine of res ipsa loquitor

applies because aside from the caesarean section, private

Vestil vs. Intermediate Appellate Court, 179 SCRA 47

respondent Villegas underwent no other operation which could

have caused the offending piece of rubber to appear in her uterus,

Theness, a three-year old child, was killed after she was bitten by

it stands to reason that such could only have been a by-product of

a dog while she was playing with the child of Purita Vestil in the

the caesarean section performed by Dr. Batiquin.

house of Vicente Miranda, the late father of Purita. Spouses

Vestils contention that they cannot be faulted as they are not the

Roque vs. Gunigundo, 89 SCRA 178

owner of the house where the child was bitten cannot be accepted
because under the Article 2183 of the Civil Code the possessor of

animal is liable even if the animal should escape or be lost and

cause and effect between the fault or negligence of the defendant

so be removed from his control.

and the damages incurred by the plaintiff.

Amadora vs. Court of Appeals, 160 SCRA 315

PONCE vs. LEGASPI, G.R. NO. 79184 May 6, 1992

Amadora was shot dead by his classmate Daffon inside the school

The present case stemmed from the filing before the Supreme

auditorium, when the classes had formally ended. As long as it can

Court OF a complaint for disbarment against respondent by

be shown that the student is in the school premises in pursuance

petitioner which was dismissed. Respondent thereafter filed a

of a legitimate student objective, in the exercise of a legitimate

complaint for damages against the petitioner. The adverse result

student right, and even in the enjoyment of a legitimate student

of an action does not per se make the action wrongful and subject

privilege, the responsibility of the school authorities over the

the actor to make payment of damages for the law could not have

student continues.

meant to impose a penalty on the right to because one who

exercises his rights does no injury, and if damage results from a

Caedo vs. Yu Khe Thai, 26 SCRA 410

persons exercising his legal rights, it is damnum absque injuria.

Yu was inside his car when his driver bumped a carretela in front

MERALCO vs. RAMOY, G.R. NO. 158911, March 4, 2008

and at the same time hit another car coming from the opposite
direct. Under [Article 2184], if the causative factor was the drivers

In the present case, MERALCO wilfully caused injury to Leoncio

negligence, the owner of the vehicle who was present is likewise

Ramoy by withholding from him and his tenants the supply of

held liable if he could have prevented the mishap by the exercise

electricity to which they were entitled under the Service Contract.

of due diligence.

MERALCOs failure to exercise utmost care and diligence in the

performance of its obligation to its customer, is tantamount to bad

ANDAMO vs. IAC, G.R. NO. 74761November 6, 1990

faith hence is entitled to moral damages.

Clearly, from petitioners complaint, the waterpaths and

MINDANAO TERMINAL AND BROKERAGE SERVICE, INC. vs.

contrivances built by respondent corporation are alleged to have

PHOENIX ASSURANCE COMPANY OF NEW YORK,MCGEE &

inundated the land of petitioners. All the elements of a quasi-delict

CO., INC., G.R. NO. 162467, May 8, 2009

or culpa aquiliana are present, to wit: (a) damages suffered by the

plaintiff, (b) fault or negligence of the defendant, or some other

The Court ruled that Mindanao Terminal had duly exercised the

person for whose acts he must respond; and (c) the connection of

required degree of diligence in loading and stowing the cargoes,

which is the ordinary diligence of a good father of a family. There

is no basis for the award of attorneys fees in favor of petitioner

Two days before the wedding, defendant, who was then 28 years

since none of the circumstances enumerated in Article 2208 of the

old, simply left a note for plaintiff stating: Will have to postpone

Civil Code exists because the present case is clearly not an

wedding My mother opposes it , then enplaned to his home

unfounded civil action against the plaintiff as there is no showing

city in Mindanao, and never returned and was never heard from

that it was instituted for the mere purpose of vexation or injury.

again. This is not a case of mere breach of promise to marry but

unjustifiably contrary to good customs for which defendant must

AIR FRANCE vs.CARRASCOSO, G.R. NO. L-21438,

be held answerable in damages in accordance with Article 21

September 28, 1966

aforesaid and per express provision of Article 2219 (10) of the New
Civil Code, moral damages are recoverable in the cases mentioned

Plaintiff was forced out of his seat in the first class compartment of

in Article 21 of said Code.

the plane belonging to the defendant Air France while at Bangkok,

and was transferred to the tourist class without his consent and

SANTOS VENTURA HOCORMA FOUNDATION, INC. vs.

against his will. The contract of air carriage, therefore, generates a

ERNESTO V. SANTOS and RIVERLAND, INC., G.R. NO.

relation attended with a public duty, and neglect or malfeasance

153004, November 5, 2004

of the carriers employees, naturally, could give ground for an

action for damages.

The demand letter sent to the petitioner on October 28, 1992, was
in accordance with an extra-judicial demand contemplated by law.

BAYANI vs. PANAY ELECTRIC CO., INC., G.R. NO. 139680,

When the debtor knows the amount and period when he is to pay,

April 12, 2000

interest as damages is generally allowed as a matter of right.

The requisites for an action for damages based on malicious

prosecution are:

TELEFAST COMMUNICATIONS vs. CASTRO, G.R. NO. 73867,

(1) the fact of the prosecution and the further fact that the

February 29, 1988

defendant was himself the prosecutor, and that the action was
finally terminated with an acquittal;

Petitioner and private respondent entered into a contract whereby,

(2) that in bringing the action, the prosecutor acted without

for a fee, petitioner undertook to send said private respondents

probable cause; and

message overseas by teleG.R.am but which petitioner did not do,

(3) the prosecutor was actuated or impelled by legal malice.

despite performance by said private respondent of her obligation

by paying the required charges. The award of exemplary damages

WASSMER vs VELEZ, G.R. NO. L-20089, December 26, 1964

by the trial court is likewise justified and, therefore, sustained as a

warning to all teleG.R.am companies to observe due diligence in
transmitting the messages of their customers.

plaintiff-appellee great damage and prejudice particularly when

BANK OF THE PHILIPPINE ISLANDS vs.COURT OF APPEALS,

she had already issued checks drawn against the said account and

G.R. NO. 136202, January 25, 2007

as can be expected, the said checks bounced, thereby causing

private respondent Salazar undue embarrassment and inflicting

Upon the prompting of Templonuevo and with full knowledge of

damage to her standing in the business community.

the brewing dispute between Salazar and Templonuevo, petitioner

A depositor has the right to recover reasonable moral damages

debited the account held in the name of the sole proprietorship of

even if the banks negligence may not have been attended with

Salazar without even serving due notice upon her. The award of

malice and bad faith, if the former suffered mental anguish,

exemplary damages is justified when the acts of the bank are

serious anxiety, embarrassment and humiliation.

attended by malice, bad faith or gross negligence and the award

of reasonable attorneys fees is proper where exemplary damages

VILLA REY TRANSIT, INC., vs. THE COURT OF APPEALS, G.R.

are awarded because depositors are compelled to litigate to

NO. L-25499 February 18, 1970

protect their interest.

The trial court and the Court of Appeals, both found that the
VELASCO vs.MERALCO, G.R. NO. L-18390, August 6, 1971

accident and the death of Policronio had been due to the

negligence of the bus driver, for whom petitioner was liable under

It is undisputed that a sound unceasingly emanates from the

its contract of carriage with the deceased but the only issue raised

substation of MERALCO and whether this sound constitutes an

in this appeal is the amount of damages recoverable by private

actionable nuisance or not is the principal issue in this case and

respondents herein. The determination of the indemnity to be

appellant asked that he be declared entitled to recover

awarded to the heirs of a deceased person has therefore no fixed

compensatory, moral and other damages. Article 2203 clearly

basis and much is left to the discretion of the court considering the

obligates the injured party to undertake measures that will

moral and material damages involved, and so it has been said that

alleviate and not aggravate his condition after the infliction of the

(t)here can be no exact or uniform rule for measuring the value of

injury, and places upon him the burden of explaining why he could

a human life and the measure of damages cannot be arrived at by

not do so.

precise mathematical calculation, but the amount recoverable

depends on the particular facts and circumstances of each case.

BPI vs CA, G.R. NO. 136202, January 25, 2007

PEOPLE vs. EBAROLA, G.R. NO. L-69666, January 23, 1992
The bank froze and later unilaterally debited an amount from the
account of A.A. Salazar Construction and Engineering Services

Appellant had been convicted of homicide and the trial court

without informing her that it had already done so, which caused

awarded the amount of P100,000.00 to the heirs of Manahan as

indemnity for death. The indemnity for death must be reduced to

Nominal damages are recoverable where a legal right is

P50,000.00 conformably with prevailing jurisprudence on the

technically violated and must be vindicated against an invasion

matter and aside from the ordinary indemnity for death appellant

that has produced no actual present loss of any kind, or where

is obliged: (1) to compensate the heirs for the latters loss of

there has been a breach of contract and no substantial injury or

earning capacity; (2) to give support in the form of expenses for

actual damages whatsoever have been or can be shown.

education to dependents of the deceased and (3) to pay the heirs

for moral damages for the mental anguish suffered by them.
COJUANGCO vs. COURT OF APPEALS, G.R. NO. 119398. July
2, 1999
To hold public officers personally liable for moral and exemplary
damages and for attorneys fees for acts done in the performance
of official functions, the plaintiff must prove that these officers
exhibited acts characterized by evident bad faith, malice, or gross
negligence, but even if their acts had not been so tainted, public
officers may still be held liable for nominal damages if they had
violated the plaintiffs constitutional rights.
PLENO vs. COURT OF APPEALS, G.R. NO. L-56505, May 9,
1988
Temperate damages are included within the context of
compensatory damages and in arriving at a reasonable level of
temperate damages to be awarded, trial courts are guided by our
ruling that: There are cases where from the nature of the case,
definite proof of pecuniary loss cannot be offered, although the
court is convinced that there has been such loss.
AREOLA vs. COURT OF APPEALS, G.R. NO. 95641
September 22, 1994