USUFRUCT. Write your answers on yellow pad paper. No computer print-outs.

1. Usufruct is the right to enjoy the property of another person for a period of time. In
includes jus utendi and jus fruendi. Jus disponendi remains with the naked owner.
Explain these concepts according to the case of Eleizegui v. Manila Lawn Tennis
Club, 2 Phil 309.
Usufruct is a right of superior degree to that which arises from a lease. It is a
real right and includes all the jus utendi and jus fruendi. Nevertheless, the
utmost period for which a usufruct can endure, if constituted in favor a natural
person, is the lifetime of the usufructuary; and if in favor of juridical person, it cannot
be created for more than thirty years.
Jus utendi is the right to use. Jus fruendi is the right to the fruits. Jus
disponendi is the right to dispose or alienate.
2. The usufructuary is considered a stranger when hidden treasure is found on the
property. How much is his share of the treasure? Explain.

The usufructuary, not being the landowner, is not entitled as owner, but is
entitled as finder to one-half of the treasure, as a rule, unless there is a
contrary agreement. If somebody else is the finder, the usufructuary gets
nothing.

3. When the usufructuary gives a portion of the income of the property in usufruct to her
sisters-in-law every month for a year from January to December 2000, can she ask
them to return what she has given because they insulted her on January 2001?
Explain.
No, because Article 572 of the Civil Code provides that the usufructuary has
the right to alienate her right to the usufruct, even by a gratuitous title. Article
566 further provides that the usufructuary shall be entitled to all the civil fruits
of the property in usufruct. Income of the property in usufruct is considered a
civil fruit. Thus, if it is proved that the alienation was made knowingly and
freely, such must be upheld.
4. Can the usufructuary of a coconut plantation cut some of the coconut trees to create
a wider space between the trees to allow more sunlight? Explain.
No, because Article 577 of the Civil Code provides that in any case the felling
or cutting of trees shall be made in such manner as not to prejudice the
preservation of the land. The usufructuary cannot cut down trees unless it be
to restore or improve some of the things in usufruct, and in such case he shall
first inform the owner of the necessity for the work.
5. What is the effect of the failure of the usufructuary to make an inventory after he
takes possession of the property? Explain.
Article 585 provides that the usufructuary may be excused from the obligation
of making an inventory, when no one will be injured thereby.
6. Who pays for extraordinary repairs? Explain.
 Article 593 provides that extraordinary repairs shall be at the expense of the
owner. He shall have a right to demand of the usufructuary the legal interest on
the amount expended for the time that the usufruct lasts. Should he not make
them when they are indispensable for the preservation of the thing, the
usufructuary may make them; but he shall have a right to demand of the owner,
at the termination of the usufruct, the increase in value which the immovable
may have acquired by reason of the repairs (Article 594).

7. Who pays the taxes? Explain.

Article 596 provides that the payment of annual charges and taxes shall be at
the expense of the usufructuary for all the time that the usufruct lasts.
However, the taxes which, during the usufruct, may be imposed directly on the
capital, shall be at the expense of the owner, subject to the payment of the
usufructuary of the proper interest (Article 597).
8. Mr. and Mrs. Cruz owned 20 hectares rice land. They wanted to live in town near the
hospital since they were growing old. They asked Mr. and Mrs. Santos, who owned a
500 sq.m. vacant lot in town, to exchange 5 hectares of their rice land with 150 sq. m.
of the lot in town. Mr. and Mrs. Santos agreed on condition that if their daughter, who
was studying in Manila should decide to return and use the lot, Mr. and Mrs. Cruz will
leave, and the 5 hectare rice land will also be returned to them. They signed an
agreement entitled Barter and Mr. and Mrs. Cruz built a house on the lot, while Mr.
and Mrs. Santos enjoyed the rice harvests. When the daughter of Mr. and Mrs.
Santos returned after 5 years, she informed everyone that she wants to use the lot to
build a store. Is this a usufruct? Explain.

Yes. Contracts are not what the parties may see fit to call them but what they
really are as determined by the principles of law. Thus, the use of the term
"barter" in describing the agreement is not controlling. The stipulations in said
document are clear enough to indicate that there was no intention at all on the
part of the signatories thereto to convey the ownership of their respective
properties; all that was intended was to transfer the material possession
thereof. With the material ion being the only one transferred, all that the parties
acquired was the right of usufruct which in essence is the right to enjoy the
Property of another.

9. Why is the period of usufruct in favour of a town limited to fifty years? Explain.
As discussed in NHA v. CA, a usufruct is meant only as a lifetime grant. Unlike
a natural person, a corporation or associations lifetime may be extended
indefinitely. The usufruct would then be perpetual.
10. There are seven modes of extinguishing a usufruct. Enumerate according to Art.
603.
Usufruct is extinguished:
(1) By the death of the usufructuary, unless a contrary intention clearly
appears;
(2) By the expiration of the period for which it was constituted, or by the
fulfilment of any resolutory condition provided in the title creating the usufruct;
(3) By merger of the usufruct and ownership in the same person;
 (4) By renunciation of the usufructuary;
(5) By the total loss of the thing in usufruct;
(6) By the termination of the right of the person constituting the usufruct;
(7) By prescription.

PROPERTY LAW for G01 and G02. To be submitted on 2 Nov. 2016. Atty. D. Gasgonia