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GENERAL PRINCIPLES the Philippines, and in payment for the construction, Y will
transfer and convey his cattle ranch located in the United
How would you compare the Civil Law system in its States in favor of X. What law would govern: (1992)
governance and trend with that of the Common Law a) The validity of the contract? (1995)
system? (1997)
What are the binding effects of an obiter dictum and a The validity of the contract will be governed by Australian
dissenting opinion? How can a decision of the Supreme Court law, because the validity refers to the element of the making
be set aside? (1994) of the contract in this case, unless the parties agreed to be
bound by another law.
After a devastating storm causing widespread destruction in
four Central Luzon provinces, the executive and legislative b) The performance of the contract?
branches of the government agreed to enact a special law
appropriating P1 billion for purposes of relief and SUGGESTED ANSWER:
rehabilitation for the provinces. In view of the urgent nature The performance will be governed by the law of the
of the legislative enactment, it is provided in its effectivity Philippines where the contract is to be performed.
clause that it shall take effect upon approval and after
completion of publication in the Official Gazette and a c) The consideration of the contract?
newspaper of general circulation in the Philippines. The law
was passed by the Congress on July 1, 1990. signed into law SUGGESTED ANSWER:
by the President on July 3, 1990, and published in such The consideration will be governed by the law of the
newspaper of general circulation on July 7, 1990 and in the United States where the ranch is located.
Official Gazette on July 10, 1990. (1990)
a) As to the publication of said legislative Juan is a Filipino citizen residing in Tokyo, Japan. State
enactment, isthere sufficient observance or what laws govern: (1998)
compliance with the requirements for a valid 1. His capacity to contract marriage in Japan.
publication? Explain your answer. (2004)


Yes, there is sufficient compliance. The law itself prescribes Juan's capacity to contract marriage is governed by Philippine law
the requisites of publication for its effectivity, and all pursuant to Art. 15, Civil Code.
requisites have been complied with. (Article 2, Civil
Code) 2. His successional rights as regards his
deceased Filipino father's property in Texas,
b) When did the law take effect? Explain your U.S.A. (1991, 1995, 2001, 2004)
SUGGESTED ANSWER: By way of exception to the general rule of lex rei sitae
The law takes effect upon compliance with all the prescribed by the first paragraph of Art. 16. Civil Code, a
conditions for effectivity, and the last condition was person's successional rights are governed by the national law
complied with on July 10, 1990. Hence, the" law became of the decedent (2nd par.. Art. 16). Since Juan's deceased
effective on that date. father was a Filipino citizen, Philippine law governs Juan's
successional rights.
c) Can the executive branch start releasing and
disbursing funds appropriated by the said law the day Felipe and Felisa, both Filipino citizens, were married in
following its approval? Explain your answer. Malolos, Bulacan on June 1, 1950. In 1960 Felipe went to
the United States, becoming a U.S. citizen in 1975. In 1980
SUGGESTED ANSWER: they obtained a divorce from Felisa, who was duly notified
No. It was not yet effective when it was approved by of the proceedings. The divorce decree became final under
Congress on July 1, 1990 and approved by the President on California Law. Coming back to the Philippines in 1982,
July 3, 1990. The other requisites for its effectivity were Felipe married Sagundina, a Filipino Citizen. In 2001, Filipe,
not yet complete at the time. then domiciled in Los Angeles, California, died, leaving one
child by Felisa, and another one by Sagundina. He left a will
It is said that “equity follows the law” What do you which he left his estate to Sagundina and his two children
understand by this phrase, and what are its basic and nothing to Felisa.
implications? (2003)
Sagundina files a petition for the probate of Felipe’s will.
Is there any difference in their legal effect between Felisa questions the intrinsic validity of the will, arguing that
ignorance of the law and ignorance or mistake of fact? (1996) her marriage to Felipe subsisted despite the divorce
obtained by Felipe because said divorce is not recognized in
II. CONFLICT OF LAWS the Philippines. For this reason, she claims that the
(PRIVATE INTERNATIONAL LAW) properties and that Sagundina has no successional rights.
(1992, 2002)
X and Y entered into a contract in Australia, whereby it was A. Is the divorce secured by Felipe in
agreed that X would build a commercial building for Y in California recognizable and valid in the


Philippines? How does it affect Felipe’s the reason that it is the law of the place where the
marriage to Felisa? Explain. (1997, 2003, 2005) contract was executed.

SUGGESTED ANSWER: The Japan Air Lines (JAL), a foreigner corporation licensed
The divorce secured by Felipe in California is recognizable to do business in the Philippines, executed in Manila a
and valid in the Philippines because he was no contract of employment with Maritess Guapa under
longer a Filipino at hat time he secured it, Aliens may which the latter was hired as a stewardess on the
obtain divorces abroad which may be recognized in the aircraft flying the Manila-Japan-Manila route. The contrast
Philippines provided that they are valid according to their specifically provides that (1) the duration of the contract
national law. shall be two (2) years, (2) notwithstanding the above
duration, JAL may terminate the agreement at any time by
B. What law governs the formalities of the will? giving her notice in writing ten (10) days in advance, and (3)
Explain. (1993, 1998) the contract shall be construed as governed under and by
the laws of Japan and only the court in Tokyo, Japan shall
SUGGESTED ANSWER: have the jurisdiction to consider any matter arising from or
The foreigner who executes his will in the Philippines may relating to the contract. JAL dismissed Maritess on the
observed the formalities described in: fourth month of her employment without giving her due
1. The Law of the country of which he is a citizen under notice. Maritess then filed a complaint with the Labor
Article 817 of the New Civil Code, or Arbiter for reinstatement, backwages and damages. The
2. The law of the Philippines being the law of the place lawyer of JAL contends that neither the Labor Arbiter nor
of execution under Article 17 of the New Civil Code. any other agency or court in the Philippines has jurisdiction
over the case in view of the above provision (3) of the
C. Will Philippine law govern the intrinsic contract which Maritess voluntarily signed. The contract
validity of the will? Explain. (1998) is the law between her and JAL. Decide the issue. (1991,
1994, 1996)
Philippine law will not govern the intrinsic validity of the SUGGESTED ANSWER:
will. Article 16 of the New Civil Code provides that Labor Legislations are generally intended as expressions of
intrinsic validity of testamentary provisions shall be public policy on employer-employee relations. The contract
governed by the National Law of the person whose therefore, between Japan Air Lines (JAL) and Maritess may
succession is under consideration. California law will govern apply only to the extent that its provisions are not
the intrinsic validity of the will. inconsistent with Philippine labor laws intended
particularly to protect employees. Under the circumstances,
What law governs the capacity of the Filipino to buy the the dismissal of Maritess without complying with Philippine
land? Explain your answer and give its legal basis. (1995, 2007) Labor law would be invalid and any stipulation in the contract
to the contrary is considered void. Since the law of the
On 8 December 1991 Vanessa purchased from the Manila forum in this case is the Philippine law the issues should-
office of Euro-Aire an airline ticket for its Flight No. 710 be resolved in accordance with Philippine law.
from Dallas to Chicago on 16 January 1992. Her flight
reservation was confirmed. On her scheduled departure Where under a State's own conflicts rule that domestic law
Vanessa checked in on time at the Dallas airport. However, of another State should apply, may the courts of the
at the check-in counter she discovered that she was former nevertheless refuse to apply the latter? If so, under
waitlisted with some other passengers because of intentional what circumstance?
overbooking, a Euro-Aire policy and practice. Euro-Alre
admitted that Vanessa was not advised of such policy when The third paragraph of Art. 17 of the Civil Code provides that:
she purchased her plane ticket. Vanessa was only able to fly "Prohibitive laws concerning persons, their acts or
two days later by taking another airline. Vanessa sued Euro- property, and those which have for their object public
Aire in Manila for breach of contract and damages. Euro- order, public policy and good customs shall not be rendered
Aire claimed that it cannot be held liable for damages ineffective by laws or judgments promulgated, or by
because its practice of overbooking passengers was allowed determinations or conventions agreed upon in a foreign
by the U.S. Code of Federal Regulations. Vanessa on the country." Accordingly, a state's own conflict of laws rule
other hand contended that assuming that the U.S. Code of may, exceptionally be inapplicable, given public policy
Federal Regulations allowed Intentional overbooking, the considerations by the law of the forum.
airline company cannot invoke the U.S. Code on the ground
that the ticket was purchased in Manila, hence, Philippine In Private International Law, what is
law should apply, under which Vanessa can recover 1. Cognovit?
damages for breach of contract of carriage. Decide. Discuss 2. A Borrowing Statute?
fully. (1995) 3. Characterization?
4. Long arm statute"? (1994)
Vanessa can recover damages under Philippine law for breach Distinguish briefly but clearly between: Domiciliary theory
of contract of carriage, Philippine law should govern as the law and nationality theory of personal law. (2004)
of the place where the plane tickets were bought and the
contract of carriage was executed. In Zalamea v. Court of Felipe is a Filipino citizen. When he went to Sydney for
Appeals, the Supreme Court applied Philippine law in vacation, he met a former business associate, who proposed
recovery of damages for breach of contract of carriage for to him a transaction which took him to Moscow. Felipe

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 2
brokered a contract between Sydney Coals Corp. (Coals), an acting under his direction immunity from suit during his
Australian firm, and Moscow Energy Corp. (Energy), a tenure. In this case, has prescription set in or not?
Russian firm, for Coals to supply coal to Energy on a Considering the differences in the cited laws, which
monthly basis for three years. Both these firms were not prescriptive period should be applied: one year under
doing, and still do not do, business in the Philippines. Felipe Philippine law, two years under HI’s law, ten years under
shuttled between Sydney and Moscow to close the contract. U.S. federal law, or none of the above? Explain. (2004)
He also executed in Sydney a commission contract with
Coals and in Moscow with Energy, under which contracts SUGGESTED ANSWER:
he was guaranteed commissions by both firms based on a The US Court will apply US law, the law of the Jorum, in
percentage of deliveries for the three-year period, payable in determining the applicable prescriptive period. While US
Sydney and in Moscow, respectively, through deposits in law is silent on this matter, the US Court will not apply
accounts that he opened in the two cities. Both firms paid Philippine law in determining the prescriptive period. It is
Felipe his commission for four months, after which they generally affirmed as a principle in private international law
stopped paying him. Felipe learned from his contacts, who that procedural law is one of the exceptions to the
are residents of Sydney and Moscow, that the two firms application of foreign law by the forum. Since prescription is
talked to each other and decided to cut him off. He now a matter of procedural law even in Philippine
files suit in Manila against both Coals and Energy for specific jurisprudence, the US Court will apply either HI or Federal law
performance. (2002) in determining the applicable prescriptive period and not
Philippine law. The Restatement of American law affirms this
A. Define or explain the principle of “lex loci principle.
Harry married Wilma, a very wealthy woman. Barely five (5)
B. Define or explain the rule of “forum non years into the marriage, Wilma fell in love with Joseph.
conveniens” (1994) Thus, Wilma went to a small country in Europe, became a
naturalized citizen of that country, divorced Harry, and
C. Should the Philippine court assume married Joseph. A year thereafter, Wilma and Joseph
jurisdiction over the case? Explain. returned and established permanent residence in the
Philippines. (1996, 1999, 2009)
SUGGESTED ANSWER: a. If Harry hires you as his lawyer, what legal recourse
No, the Philippine courts cannot acquire jurisdiction over would you advise him to take? Why?
the case of Felipe. Firstly, under the rule of forum non
conveniens, the Philippine court is not a convenient forum as SUGGESTED ANSWER:
all the incidents of the case occurred outside the I will advice Harry to:
Philippines. Neither are both Coals and Energy doing 1. dissolve and liquidate his property relations with
business inside the Philippines. Secondly, the contracts were Wilma; and
not perfected in the Philippines. Under the principle of lex 2. if he will remarry, file a petition for the recognition
loci contractus, the law of the place where the contract is and enforcement of the foreign judgment of divorce
made shall apply. Lastly, the Philippine court has no power to (Rule 39 Rules of Court).
determine the facts surrounding the execution of said
contracts. And even if a proper decision could be reached, b. Harry tells you that he has fallen in love with
such would have no binding effect on Coals and Energy as another woman, Elizabeth, and wants to marry her
the court was not able to acquire jurisdiction over the said because, after all, Wilma is already married to
corporations. Joseph. Can Harry legally marry Elizabeth? Explain.

In a class suit for damages, plaintiffs claimed they suffered SUGGESTED ANSWER:
injuries from torture during martial law. The suit was filed Yes, he can validly marry Elizabeth, applying the doctrine laid
upon President EM’s arrival on exile in HI, a U.S. state. down by the Supreme Court in Republic v. Orbecido (427
The court in HI awarded plaintiffs the equivalent of P100 SCRA 114 [2005]).
billion under the U.S. law on alien tort claims. On appeal, Under the second paragraph of Article 26 of the Family Code,
EM’s Estate raised the issue of prescription. It argued that for the Filipino spouse to have capacity to remarry, the law
since said U.S. law is silent on the matter, the court should expressly requires the spouse who obtained the divorce to
apply: (1) HI’s law setting a two-year limitation on tort be a foreigner at the time of marriage. Applying this
claims; or (2) the Philippine law which appears to require requirement to the case of Harry, it would seem that he is
that claims for personal injury arising from martial law be not given the capacity to remarry. This is because Wilma was
brought within one year. a Filipino at the time of her remarriage to Harry.

In Republic v. Orbecido, however, the Supreme Court ruled

that a Filipino spouse is given the capacity to remarry even
though the spouse who obtained the divorce was a Filipino
Plaintiffs countered that provisions of the most analogous at the time of the marriage, if the latter was already a
federal statute, the Torture Victims Protection Act, should foreigner when the divorce was obtained abroad. According
be applied. It sets ten years as the period for prescription. to the Court, to rule otherwise will violate the equal
Moreover, they argued that equity could toll the statute of protection clause of the Constitution.
limitations. For it appeared that EM had procured
Constitutional amendments granting himself and those III. PERSONS


A. Persons and Personality (Civil Code) considered a person for purposes favorable to it provided it
is born later in accordance with the Civil Code. There is no
Mr. and Mrs. Cruz, who are childless, met with a serious doubt that the designation of the unborn child as a
motor vehicle accident with Mr. Cruz at the wheel and Mrs. beneficiary is favorable to the child.
Cruz seated beside him, resulting in the instant death of Mr.
Cruz. Mrs. Cruz was still alive when help came but she also b. Between Marian and the baby, who is presumed to
died on the way to the hospital. The couple acquired have died ahead?
properties worth One Million (P1,000,000.00) Pesos during
their marriage, which are being claimed by the parents of SUGGESTED ANSWER:
both spouses in equal shares. (1998, 1999, 2000) If the baby was not alive when completely delivered from the
a) Is the claim of both sets of parents valid and why? mother’s womb, it was not born as a person, then the
question of who between two persons survived will not be
SUGGESTED ANSWER: an issue. Since the baby had an intra-uterine life of more than
No, the claim of both parents is not valid. When Mr. Cruz 7 months, it would be considered born if it was alive, at the
died, he was succeeded by his wife and his parents as his time of its complete delivery from the mother’s womb. We
intestate heirs who will share his estate equally. His estate can gather from the facts that the baby was completely
was 0.5 Million pesos which is his half share in the absolute delivered. But whether or not it was alive has to be proven
community amounting to 1 Million Pesos. His wife, will, by evidence.
therefore, inherit O.25 Million Pesos and his parents will
inherit 0.25 Million Pesos. When Mrs. Cruz died, she was If the baby was alive when completely delivered from the
succeeded by her parents as her intestate heirs. They will mother’s womb, then it was born as a person and the
inherit all of her estate consisting of her 0.5 Million half question of who survived as between the baby and the
share in the absolute community and her 0.25 Million mother shall be resolved by the provisions of the Rules of
inheritance from her husband, or a total of 0.750 Million Court on survivorship. This is because the question has
Pesos. In sum, the parents of Mr. Cruz will inherit nothing to do with succession. Obviously, the resolution of
250,000 Pesos while the parents of Mrs. Cruz will inherit the question is needed just for the implementation of an
750,000 Pesos. insurance contract. Under Rule 13, Sec. 3, (jj), (5) as between
the baby who was under 15 years old and Marian who was
b) Suppose in the preceding question, both Mr. and 18 years old, Marian is presumed to have survived.
Mrs. Cruz were already dead when help came, so
that no-body could say who died ahead of the In both cases, therefore, the baby never acquired any right
other, would your answer be the same to the under the insurance policy. The proceeds of the insurance
question as to who are entitled to the properties will then go to the estate of Marian.
of the deceased couple?
c. Will Pietro, as surviving biological father of the
baby, be entitled to claim the proceeds of the life
insurance on the life of Marian?
This being a case of succession, in the absence of proof as
to the time of death of each of the spouses, it is presumed
they died at the same time and no transmission of rights from
Since the baby did not acquire any right under the insurance
one to the other is deemed to have taken place. Therefore,
contact, there is nothing for Prieto to inherit.
each of them is deemed to have an estate valued at
P500,000,00, or one-half of their conjugal property of P1
B. Marriage (Family Code)
million. Their respective parents will thus inherit the entire
P1 Million in equal shares, of P500,000.00 per set of parents.
Distinguish juridical capacity from capacity to act
Isidro and Irma, Filipinos, both 18 years of age, were
passengers of Flight No. 317 of Oriental Airlines. The plane
they boarded was of Philippine registry. While en route
At age 18, Marian found out that she was pregnant. She
from Manila to Greece some passengers hijacked the plane,
insured her own life and named her unborn child as her sole
held the chief pilot hostage at the cockpit and ordered him
beneficiary. When she was already due to give birth, she
to fly instead to Libya. During the hijacking Isidro suffered a
and her boyfriend Pietro, the father of her unborn child,
heart attack and was on the verge of death. Since Irma was
were kidnapped in a resort in Bataan where they were
already eight months pregnant by Isidro, she pleaded to the
vacationing. The military gave chase and after one week,
hijackers to allow the assistant pilot to solemnize her
they were found in an abandoned hut in Cavite. Marian and
marriage with Isidro. Soon after the marriage,
Pietro were hacked with bolos. Marian and the baby were
Isidroexpired. As the plane landed in Libya Irma gave
both found dead, with the baby's umbilical cord already cut.
birth. However, the baby died a few minutes after
Pietro survived. (2008)
complete delivery. Back in the Philippines Irma
a. Can Marian's baby be the beneficiary of the
immediately filed a claim for inheritance. The parents of
insurance taken on the life of the mother? (1999,
Isidro opposed her claim contending that the marriage
between her and Isidro was void ab initio on the following
grounds: (a) they had not given their consent to the
marriage of their son; (b) there was no marriage license; (c)
An unborn child may be designated as the beneficiary in the
the solemnizing officer had no authority to perform the
insurance policy of the mother. An unborn child shall be

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 4
marriage; and, (d) the solemnizing officer did not file an c. Can Laica bring an action to impugn her own status
affidavit of marriage with the proper civil registrar. (1995) on the ground that based on DNA results, Roderick
1. Resolve each of the contentions ([a] to [d]) raised is her biological father?
by the parents of Isidro. Discuss fully.
SUGGESTED ANSWER: No, she cannot impugn her own filiation. The law does
The fact that the parents of Isidro and of Irma did not give not allow a child to impugn his or her own filiation. In the
their consent to the marriage did not make the marriage problem, Laica’s legitimate filiation was accorded to her by
void ab initio. The marriage is merely voidable operation of law which may be impugned only by
under Art 45 of the FC. Brad, or his heirs in the cases provided by law within
the prescriptive period.
Absence of marriage license did not make the marriage
void ab initio. Since the marriage was solemnized in d. Can Laica be legitimated by the marriage of her
articulo mortis, it was exempt from the license requirement biological parents?
under Art. 31 of the FC.
On the assumption that the assistant pilot was acting for
No, she cannot be legitimated by the marriage of her
and in behalf of the airplane chief who was under disability,
biological parents. In the first place she is not, under the law,
and by reason of the extraordinary and exceptional
the child of Roderick. In the second place, her biological
circumstances of the case, the marriage was solemnized
parents could not have validly married each other at the time
by an authorized officer under Art. 7 (3) and Art. 31. of
she was conceived and born simply because Faye was still
the FC. Failure of the solemnizing officer to file the affidavit
married to Roderick at that time. Under Article 177 of the
of marriage did not affect the validity of the marriage. It
Family Code, only children conceived or born outside of
is merely an irregularity which may
wedlock of parents who, at the time of the conception of the
subject the solemnizing officer to sanctions
child were not disqualified by any impediment to marry each
other, may be legitimated.
Roderick and Faye were high school sweethearts. When
Roderick was 18 and Faye, 16 years old, they started to live
On Valentine's Day 1996, Ellas and Fely, both single and 25
together as husband and wife without the benefit of
years of age, went to the city hall where they sought out a
marriage. When Faye reached 18 years of age, her parents
fixer to help them obtain a quickie marriage. For a fee, the
forcibly took her back and arranged for her marriage to
fixer produced an ante-dated marriage license for them,
Brad. Although Faye lived with Brad after the marriage,
Issued by the Civil Registrar of a small remote municipality.
Roderick continued to regularly visit Faye while Brad was
He then brought them to a licensed minister in a restaurant
away at work. During their marriage, Faye gave birth to a
behind the city hall, and the latter solemnized their marriage
baby girl, Laica. When Faye was 25 years old, Brad
right there and then. (1996, 2008)
discovered her continued liason with Roderick and in one of
1) Is their marriage valid, void or voidable?
their heated arguments, Faye shot Brad to death. She lost
no time in marrying her true love Roderick, without a
marriage license, claiming that they have been continuosly
cohabiting for more than 5 years. (2008)
The marriage is valid. The irregularity in the issuance of
a. Was the marriage of Roderick and Faye valid?
a valid license does not adversely affect the validity of the
marriage. The marriage license is valid
because it was in fact issued by a Civil
Registrar (Arts. 3 and 4. FC).
The marriage was void because there was no marriage
license. Their marriage was not exempt from the
2) Would your answer be the same if it should
requisite of a marriage license because Roderick and Faye
turn out that the marriage license was spurious?
have not been cohabiting for at least 5 continuous years
before the celebration of their marriage. Their lovers’ trysts
and brief visitations did not amount to “cohabitation”.
Moreover, the Supreme Court held that for the marriage
No, the answer would not be the same. The marriage would
to be exempt from a license, there should be no
be void because of the absence of a formal requisite. In
impediment for them to marry each other during
such a case, there was actually no valid marriage license.
the entire 5 years of cohabitation. Roderick and Faye could
In December 2000, Michael and Anna, after obtaining a
not have cohabited for 5 continuous years without
valid marriage license, went to the Office of the Mayor of
impediment because Faye was then legally married to Brad.
Urbano, Bulacan, to get married. The Mayor was not there,
but the Mayor’s secretary asked Michael and Anna and
b. What is the filiation status of Laica?
their witnesses to fill up and sign the required marriage
contract forms. The secretary then told them to wait, and
went out to look for the Mayor who was attending a
Having been born during the marriage of Faye and Brad, she
wedding in a neighboring municipality. When the secretary
is presumed to be the legitimate child of Faye and Brad. This
caught up with the Mayor at the wedding reception, she
presumption had become conclusive because the period of
showed him the marriage contract forms and told him that
time to impugn her filiation had already prescribed.
the couple and their witnesses were waiting in his office.
The Mayor forthwith signed all the copies of the marriage


contract, gave them to the secretary who returned to the unsuccessful. Can Baby ask for annulment of marriage,
Mayor’s office. She then gave copies of the marriage or legal separation? Explain. (1996)
contract to the parties, and told Michael and Anna that they
were already married. Thereafter, the couple lived together SUGGESTED ANSWER:
as husband and wife, and had three sons. (2009) No, Baby cannot ask for annulment of her marriage or for
a. Is the marriage of Michael and Anna valid, legal separation because both these actions had already
voidable, or void? Explain your answer. prescribed. While concealment of drug addiction existing at
the time of marriage constitutes fraud under Art. 46 of the FC
SUGGESTED ANSWER: which makes the marriage voidable under Art. 45 of the FC,
The marriage is void because of the absence of an essential the action must, however, be brought within 5 years from
and formal requisite, namely consent of the parties freely the discovery thereof under Article 47(3), FC, Since the drug
given in the presence of the solemnizing officer and a addiction of Bert was discovered by Baby in June 1989, the
marriage ceremony. action had already prescribed in June of 1994. Although
drug addiction is a ground for legal separation under Art.
b. What is the status of the three children of Michael 55(5) and Art. 57 of the FC requires that the action must
and Anna? Explain your answer. be brought within 5 years from the occurrence of the cause.
Since Bert had been a drug addict from the time of the
SUGGESTED ANSWER: celebration of the marriage, the action for legal separation
The children are illegitimate, having been born outside a valid must have been brought not later than 23 December
marriage. 1993. Hence, Baby cannot, now, bring the action for legal
c. What property regime governs the properties
acquired by the couple? Explain. Yvette was found to be positive for HIV virus, considered
sexually transmissible, serious and incurable. Her boyfriend
SUGGESTED ANSWER: Joseph was aware of her condition and yet married her.
The marriage being void, the property relationship that After two (2) years of cohabiting with Yvette, and in his
governed their union is special co-ownership under Article belief that she would probably never be able to bear him a
147. healthy child, Joseph now wants to have his marriage with
Yvette annulled. Yvette opposes the suit contending that
One of the grounds for annulment of marriage is that either Joseph is estopped from seeking annulment of their
party, at the time of their marriage was afflicted with marriage since he knew even before their marriage that she
a sexually-transmissible disease, found to be serious and was afflicted with HIV virus. Can the action of Joseph for
appears incurable. Two (2) years after their marriage, which annulment of his marriage with Yvette prosper? Discuss fully.
took place on 10 October 1988, Bethel discovered that her (1995)
husband James has a sexually-transmissible disease which he
contracted even prior to their marriage although James did SUGGESTED ANSWER:
not know it himself until he was examined two [2) years No, Joseph knew that Yvette was HIV positive at the time of
later when a child was already born to them. Bethel sues the marriage. He is, therefore, not an injured party. The FC
James for annulment of their marriage. James opposes the gives the right to annul the marriage only to an injured party.
annulment on the ground that he did not even know that he [Art. 47 (5), FC]
had such a disease so that there was no fraud or bad faith
on his part. The marriage of H and W was annulled by the competent
court. Upon finality of the judgment of nullity, H began
A. Decide. (1991) looking for his prospective second mate. He fell in love
with a sexy woman S who wanted to be married as soon as
SUGGESTED ANSWER: possible, i.e., after a few months of courtship. As a young
The marriage can be annulled, because good faith is not a lawyer, you were consulted by H: (1990)
defense when the ground is based upon sexually- (a) How soon can H be joined in lawful wedlock to
transmissible disease on the part of either party. his girlfriend S? Under existing laws, are there
certain requisites that must be complied with
B. Suppose that both parties at the time of their before he can remarry? What advice would you
marriage were similarly afflicted with sexually- give H?
transmissible diseases, serious and incurable, and
both knew of their respective infirmities, can SUGGESTED ANSWER:
Bethel or James sue for annulment of their H, or either spouse for that matter, can marry again after
marriage? complying with the provisions of Article 52 of the
Family Code, namely, there must be a partition and
SUGGESTED ANSWER: distribution, of the properties of the spouses, and
Yes, the marriage can still be annulled because the fact that the delivery of the children's presumptive legitimes
both of them are afflicted with sexually-transmissible which should be recorded in the appropriate civil registry
diseases does not efface or nullity the ground. and registries of property. H should be so advised.

Bert and Baby were married to each other on December 23, (b) Suppose that children were born from the union of
1988. Six months later, she discovered that he was a H and W, what would be the status of said
drug addict. Efforts to have him rehabilitated were children? Explain your answer.

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 6
SUGGESTED ANSWER: which shall be recorded in the appropriate Civil Registry
The children born from the union of H and W would be and Registry of Property, otherwise the same shall not
legitimate children if conceived or born before the decree of affect third persons and the subsequent marriage shall
annulment of the marriage (under Art. 45 of the Family be null and void.
Code) has become final and executory.

(c) If the subsequent marriage of H to S was contracted

before compliance with the statutory condition Gigi and Ric, Catholics, got married when they were 18
for its validity, what are the rights of the children of years old. Their marriage was solemnized on August 2, 1989
the first marriage (i.e., of H and W) and of the by Ric's uncle, a Baptist Minister, in Calamba, Laguna. He
children of the subsequent marriage (of H and S)? overlooked the fact that his license to solemnize marriage
expired the month before and that the parties do not belong
SUGGESTED ANSWER: to his congregation. After 5 years of married life and blessed
The children of the first marriage shall be considered with 2 children, the spouses developed irreconcilable
legitimate children if conceived or born before the differences, so they parted ways. While separated, Ric fell
Judgment of annulment of the marriage of H and W has in love with Juliet, a 16 year-old sophomore in a local
become final and executory. Children conceived or born of college and a Seventh-Day Adventist. They decided to get
the subsequent marriage shall likewise be legitimate even if married with the consent of Juliet's parents. She
the marriage of H and S be null and void for failure to presented to him a birth certificate showing she is 18 years
comply with the requisites of Article 52 of the Family old. Ric never doubted her age much less the authenticity
Code. of her birth certificate. They got married in a Catholic
church in Manila. A year after, Juliet gave birth to twins,
As legitimate children, they have the following rights: Aissa and Aretha. (2006)
a) To bear the surnames of the father and the mother;
b) To receive support from their parents, their a) What is the status of the marriage between
ascendants, and in proper cases, their brothers and Gigi and Ric — valid, voidable or void? Explain.
sisters, in conformity with the provisions of this Code
on Support; and SUGGESTED ANSWER:
c) To be entitled to the legitime and other Even if the Minister's license expired, the marriage is valid if
successional rights granted to them by the Civil Code either or both Gigi and Ric believed in good faith that he
(Article 174, Family Code). had the legal authority to solemnize marriage. While the
authority of the solemnizing officer is a formal requisite of
A and B, both 18 years old, were sweethearts studying in marriage, and at least one of the parties must belong to the
Manila. On August 3, 1988, while in first year college, they solemnizing officer's church, the law provides that the good
eloped. They stayed in the house of a mutual friend in town faith of the parties cures the defect in the lack of authority
X, where they were able to obtain a marriage license. On of the solemnizing officer . The absence of parental
August 30, 1988, their marriage was solemnized by the town consent despite their having married at the age of 18 is
mayor of X in his office. Thereafter, they returned to Manila deemed cured by their continued cohabitation beyond the
and continued to live separately in their respective boarding age of 21. At this point, their marriage is valid (See Art. 45,
houses, concealing from their parents, who were living in Family Code).
the province what they had done. In 1992, after graduation
from college, A and B decided to break their relation and b) What is the status of the marriage between
parted ways. Both went home to their respective towns to Ric and Juliet — valid, voidable or void?
live and work. (1993, 1994)
1) Was the marriage of A and B solemnized on August The marriage between Juliet and Ric is void. First of all, the
30, 1988 by the town mayor of X in his office a valid marriage is a bigamous marriage not falling under Article 41,
marriage? Explain your answer. a subsisting marriage constitutes a legal impediment to re-
marriage. Secondly, Juliet is below eighteen years of age.
SUGGESTED ANSWER: The marriage is void even if consented to by her parents
The marriage of A and B is void because the solemnizing officer [Art. 35(1), Family Code]. The fact that Ric was not
had no legal authority to solemnize the marriage. aware of her real age is immaterial.

2) Can either or both of them contract marriage c) Suppose Ric himself procured the falsified
with another person without committing bigamy? birth certificate to persuade Juliet to marry
Explain your answer. him despite her minority and assured her
that everything is in order. He did not divulge
SUGGESTED ANSWER: to her his prior marriage with Gigi. What
Either or both of the parties cannot contract marriage in the action, if any, can Juliet take against him?
Philippines with another person without committing Explain.
bigamy, unless there is compliance with the requirements of
Article 52 Family Code, namely: there must be a judgment of SUGGESTED ANSWER:
annulment or absolute nullity of the marriage, partition Juliet can file an action for the declaration of nullity of the
and distribution of the properties of the spouses and the marriage on the ground that he willfully caused loss
delivery of their children's presumptive legitimes, or injury to her in a manner that is contrary to morals, good


customs and public policy [Art. 21, New Civil Code]. merely shows Neil’s failure to perform his marital obligations.
She may also bring criminal actions for seduction, In a number of cases, the Supreme Court did not find the
falsification, illegal marriage and bigamy against Ric. existence of psychological incapacity in cases where the
respondents showed habitual drunkenness (Republic v.
d) If you were the counsel for Gigi, what action/s Melgar, G.R. No. 139676 [2006]), blatant display of infidelity
will you take to enforce and protect her and irresponsibility (Dedel v. CA [2004]), or being hooked to
interests? Explain. gambling and drugs (Republic v. Tanyag-San Jose, G.R. No.
168328, [2007]).
I would file an action to declare the marriage between Juliet Maria and Luis, both Filipinos, were married by a Catholic
and Ric null and void ab initio and for Ric's share in the co- priest in Lourdes Church, Quezon City in 1976, Luis was
ownership of that marriage to be forfeited in favor and drunk on the day of his wedding. In fact, he slumped at the
considered part of the absolute community in the marriage altar soon after the ceremony. After marriage, Luis never
between Gigi and Ric [Arts. 148 & 147, Family Code]. I had a steady job because he was drunk most of the time.
would also file an action for damages against Ric on the Finally, he could not get employed at all because of
grounds that his acts constitute an abuse of right and they drunkenness. Hence, it was Maria who had to earn a living
are contrary to law and morals, causing damages to Gigi. to support herself and her child begotten with Luis. In 1986,
Maria filed a petition in the church matrimonial court in
Give a brief definition or explanation of the term Quezon City to annul her marriage with Luis on the ground of
“psychological incapacity” as a ground for the declaration of psychological incapacity to comply with his marital
nullity of a marriage. If existing at the inception of marriage, obligation. Her petition was granted by the church
would the state of being of unsound mind or the matrimonial court. (1993)
concealment of drug addiction, habitual alcoholism, 1) Can Maria now get married legally to another
homosexuality or lesbianism be considered indicia of man under Philippine laws after her marriage to
psychological incapacity? Explain. (2002) Luis was annulled by the church matrimonial court?
You are a Family Court judge and before you is a Petition for
the Declaration of Nullity of Marriage (under Article 36 of SUGGESTED ANSWER:
the Family Code) filed by Maria against Neil. Maria claims No, Maria cannot validly contract a subsequent marriage
that Neil is psychologically incapacitated to comply with the without a court declaration of nullity of the first marriage.
essential obligations of marriage because Neil is a drunkard, The law does not recognize the church declaration of
a womanizer, a gambler, and a mama's boy- traits that she nullity of a marriage.
never knew or saw when Neil was courting her. Although
summoned, Neil did not answer Maria's petition and never 2) What must Maria do to enable her to
appeared in court. To support her petition, Maria presented getmarried lawfully to another man under
three witnesses- herself, Dr. Elsie Chan, and Ambrosia. Dr. Philippine laws?
Chan testified on the psychological report on Neil that she
prepared. Since Neil never acknowledged nor responded to SUGGESTED ANSWER:
her invitation for interviews, her report is solely based on To enable Maria to get married lawfully to another man,
her interviews with Maria and the spouses' minor children. She must obtain a judicial declaration of nullity of the prior
Dr. Chan concluded that Neil is suffering from Narcissistic marriage under Article 36 Family Code.
Personality Disorder, an ailment that she found to be
already present since Neil's early adulthood and one that is In 1989, Maris, a Filipino citizen, married her boss Johnson,
grave and incurable. Maria testified on the specific an American citizen, in Tokyo in a wedding ceremony
instances when she found Neil drunk, with another woman, celebrated according to Japanese laws. One year later,
or squandering the family's resources in a casino. Ambrosia, Johnson returned to his native Nevada, and he validly
the spouses' current household help, corroborated Maria's obtained in that state an absolute divorce from his wife
testimony. On the basis of the evidence presented, will you Maris. After Maris received the final judgment of
grant the petition? (1996, 2006, 2012, 2013) divorce, she married her childhood sweetheart Pedro,
also a Filipino citizen, in a religious ceremony in Cebu
SUGGESTED ANSWER: City, celebrated according to the formalities of Philippine
No. The petition should be denied. The psychological law. Pedro later left for the United States and became
incapacity under Article 36 of the Family Code must be naturalized as an American citizen. Maris followed Pedro
characterized by (a) gravity, (b) juridical antecedence, and (c) to the United States, and after a serious quarrel, Marts
incurability. It is not enough to prove that the parties failed filed a suit and obtained a divorce decree issued by the
to meet their responsibilities and duties as married persons; court in the state of Maryland. Maris then returned to the
it is essential that they must be shown to be incapable of Philippines and in a civil ceremony celebrated in Cebu
doing so, due to some psychological (not physical) illness City according to the formalities of Philippine law, she
(Republic vs. CA and Molina, G.R. No. 108763 February 13, married her former classmate Vincent likewise a Filipino
1997). In this case, the pieces of evidence presented are not citizen. (1992, 2005)
sufficient to conclude that indeed Niel is suffering from a a) Was the marriage of Maris and Pedro valid
psychological incapacity [Narcissistic Personality Disorder] when celebrated? Is their marriage still valid
existing already before the marriage, incurable and serious existing now? Reasons.
enough to prevent Neil from performing his essential marital
obligations. Dr. Chan’s report contains mere conclusions. SUGGESTED ANSWER:
Being a drunkard, a womanizer, a gambler and a mama’s boy

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 8
The marriage of Maris and Pedro was valid when c) Is the estate of Mary entitled to a share in
celebrated because the divorce validly obtained by Johnson the residential lot acquired by James and Ophelia?
in Manila capacitated Maris to marry Pedro. The marriage of
Maris and Pedro is still validly existing, because the marriage SUGGESTED ANSWER:
has not been validly dissolved by the Maryland divorce. It should be distinguished when the property was
acquired. If it was acquired before Mary's death, the estate
b) Was the marriage of Marts and Vincent valid when of Mary is entitled to 1/2 of the share of James. If it
celebrated? Is their marriage still validly existing was acquired after Mary's death, there will be no share at
now? Reasons. all for the estate of Mary.

SUGGESTED ANSWER: Cipriano and Lady Miros married each other. Lady Miros
The marriage of Maris and Vincent is void ab initio then left for the US and there, she obtained American
because it is a bigamous marriage contracted by Maris citizenship. Cipriano later learned all about this including
during the subsistence of her marriage with Pedro the fact that Lady Miros has divorced him in America and
(Art 25 and 41, Family Code). The marriage of Maris that she had remarried there. He then filed a petition for
and Vincent does not validly exist because Article 26 does authority to remarry, invoking Par. 2, Art. 26 of the Family
not apply. Pedro was not a foreigner at the time of Code. Is Cipriano capacitated to re-marry by virtue of the
his marriage with marts and the divorce abroad divorce decree obtained by his Filipino spouse who was
(in Maryland) was initiated and obtained not by the alien later naturalized as an American citizen? Explain. (2012)
spouse, but by the Filipino spouse. Hence, the Maryland
divorce did not capacitate Marts to marry Vincent. SUGGESTED ANSWER:
Yes, he is capacitated to re-marry. While the second
c) At this point in time, who is the lawful paragraph of Article 26 of the Family Code is applicable only
husband of Marts? Reasons. to a Filipino who married a foreigner at the time of the
SUGGESTED ANSWER: marriage, the Supreme Court ruled in the case of Republic v.
At this point in time, Pedro is still the lawful husband of Orbecido GR. No. 154380, 5 October 2005, that the said
Maris because their valid marriage has not been dissolved by provision equally applies to a Filipino who married another
any valid cause (Art. 26. Family Code) Filipino, at the time of the marriage, but who was already a
foreigner when the divorce was obtained.
In June 1985, James married Mary. In September 1988, he
also married Ophelia with whom he begot two (2) children, On the occasion of Digna's marriage to George, her
A and B. In July 1989, Mary died. In July 1990, he married father gave her a donation propter nuptias of a car.
Shirley and abandoned Ophelia. During their union, James Subsequently, the marriage was annulled because of the
and Ophelia acquired a residential lot worth P300,000.00. psychological immaturity of George. May Digna's father
Ophelia sues James for bigamy and prays that his marriage revoke the donation and get back the car? Explain. (1996)
with Shirley be declared null and void. James, on the other
hand, claims that since his marriage to Ophelia was SUGGESTED ANSWER:
contracted during the existence of his marriage with Mary, No, Digna's father may not revoke the donation because
the former is not binding upon him, the same being void ab Digna was not in bad faith, applying Art. 86(3) of the
initio he further claims that his marriage to Shirley is valid Family Code.
and binding as he was already legally capacitated at the time
he married her. (1991) On May 1, 1978 Facundo married Petra, by whom he had a
a) Is the contention of James correct? son Sotero. Petra died on July 1, 1996, while Facundo died
on January 1, 2002. Before his demise, Facundo had
SUGGESTED ANSWER: married, on July 1, 2002, Quercia. Having lived together as
Yes. His marriage to Ophelia is void ab initio because of his husband and wife since July 1, 1990, Facundo and Quercia
subsisting prior marriage to Mary. His marriage to Shirley, did not secure a marriage license but executed the requisite
after Mary's death, is valid and binding. affidavit for the purpose. To ensure that his inheritance
rights are not adversely affected by his father second
b) What property Relations governed the union of marriage, Sotero now brings a suit to seek a declaration of
James and Ophelia? the nullity of the marriage of Facundo and Quercia,
grounded on the absence of a valid marriage license.
SUGGESTED ANSWER: Quercia contends that there was no need for a marriage
The provisions of Art 148 of the Family Code, shall govern: license in view for her having lived continuously with
Art. 148. In cases of cohabitation not falling under the Facundo for five years before their marriage and that has
preceding Article, only the properties acquired by both of the Sotero has no legal personality to seek a declaration of nullity
parties through their actual joint contribution of money, of the marriage since Facundo is now deceased. Does Sotero
property, or industry shall be owned by them in common have the personality to seek the declaration of nullity of the
in proportion to their respective contributions. In the marriage, especially now that Facundo is already
absence, of proof to the contrary, their contributions and deceased? Explain. (2002)
corresponding shares are presumed to be equal. The same
rule and presumption shall apply to joint deposits of money SUGGESTED ANSWER:
and evidences of credit. Yes, a void marriage may be questioned by any interested
party in any proceeding where the resolution of the issue is
material. Being a compulsory heir, Soterro has the


personality to question the validity of the marriage of a) If you were Saul's counsel, how will you argue his
Facundo and Quercia. Otherwise, his participation in the case?
estate on Facundo would be affected.
A petition for declaration of nullity of a void marriage can As the counsel of Saul, I will argue that an attempt by the
only be filed by either the husband or the wife? Do you wife against the life of the husband is one of the grounds
agree? Explain your answer. (2012) enumerated by the Family Code for legal separation and
there is no need for criminal conviction for the ground to be
III. Legal Separation (Family Code) invoked (Art. 55, par. 9, Family Code).

Under what conditions, respectively, may drug addiction be b) If you were the lawyer of Cecile, what will be your
a ground, if at all, (a) for a declaration of nullity of marriage, defense?
(b) for an annulment of the marriage contract, and (c) for
legal separation between the spouses? (1997, 2002) SUGGESTED ANSWER:
As the counsel of Cecile, I will invoke the adultery of Saul.
After they got married, Nikki discovered that Christian was Mutual guilt is a ground for the dismissal of an action for
having an affair with another woman. But Nikki decided to legal separation (Art. 56, par. 4, Family Code). The rule is
give it a try and lived with him for two (2) years. After two anchored on a well-established principle that one must come
(2) years, Nikki filed an action for legal separation on the to court with clean hands.
ground of Christian’s sexual infidelity. Will the action
prosper? Explain. (2012) c) If you were the judge, how will you decide the
Although the action for legal separation has not yet SUGGESTED ANSWER:
prescribed, the prescriptive period being five years, if ended If I were the judge, I will dismiss the action on the ground of
when Christian's affair with another woman was when Nikki mutual guilt of the parties. The Philippine Constitution
decided to live with him again. Nikki’s action will not prosper protects marriage as an inviolable social institution. An
on account at condonation. However, if such affair is still action for legal separation involves public interest and no
continuing, Nikki's action would prosper because the action such decree should be issued if any legal obstacle thereto
will surely be within live (5) years from the commission at the appears on record. This is in line with the policy that in case
latest act at sexual infifelity. Every act or sexual liaison is a of doubt, the court shall uphold the validity and sanctity of
ground for legal separation. marriage (Brown v. Yambao, G.R. No. L-10699, October 18,
Rosa and Ariel were married in the Catholic Church of
Tarlac, Tarlac on January 5. 1988. In 1990, Ariel went to IV. Property Relations of the Spouses (Family Code)
Saudi Arabia to work. There, after being converted into
Islam, Ariel married Mystica, Rosa learned of the second Paulita left the conjugal home because of the excessive
marriage of Ariel on January 1, 1992 when Ariel returned to drinking of her husband, Alberto. Paulita, out of her own
the Philippines with Mystica. Rosa filed an action for legal endeavor, was able to buy a parcel of land which she was
separation on February 5, 1994. (1994) able to register under her name with the addendum
1) Does Rosa have legal grounds to ask for legal "widow." She also acquired stocks in a listed corporation
separation? registered in her name. Paulita sold the parcel of land to
Rafael, who first examined the original of the transfer
SUGGESTED ANSWER: certificate of title. (1994)
Yes, the abandonment of Rosa by Ariel for more than one (1) 1) Has Alberto the right to share in the shares of
year is a ground for legal separation unless upon returning stock acquired by Paulita?
to the Philippines, Rosa agrees to cohabit with Ariel which
is allowed under the Muslim Code. In this case, there is SUGGESTED ANSWER:
condonation. Yes. The Family Code provides that all property
acquired during the marriage, whether the acquisition
2) Has the action prescribed? appears to have been made, contracted or registered in the
name of one or both spouses, is presumed to be absolute
SUGGESTED ANSWER: community property unless the contrary is proved.
No. Under Article 57 of the Family Code, the aggrieved
spouse must file the action within five (5) years from the 2) Can Alberto recover the land from Rafael?
occurrence of the cause. The subsequent marriage of Ariel
could not have occurred earlier than 1990, the time he went SUGGESTED ANSWER:
to Saudi Arabia. Hence, Rosa has until 1995 to bring the The parcel of land is absolute community property having
action under the Family Code. been acquired during the marriage and
through Paulita's industry despite the
Saul, a married man, had an adulterous relation with Tessie. registration being only in the name of Paulita. The
In one of the trysts, Saul's wife, Cecile, caught them in land being community property, its sale to Rafael without
flagrante. Armed with a gun, Cecile shot Saul in a fit of the consent of Alberto is void. However, since the
extreme jealousy, nearly killing him. Four (4) years after the land is registered in the name of Paulita as widow, there is
incident, Saul filed an action for legal separation against nothing in the title which would raise a suspicion for Rafael
Cecile on the ground that she attempted to kill him. (2006)
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 10
to make inquiry. He, therefore, is an innocent purchaser for Gabby and Mila got married at Lourdes Church in Quezon
value from whom the land may no longer be recovered. City on July 10, 1990. Prior thereto, they executed a
marriage settlement whereby they agreed on the regime of
Maria, wife of Pedro, withdrew P 5 Million from their conjugal partnership of gains. The marriage settlement was
conjugal funds. With this money, she constructed a building registered in the Register of Deeds of Manila, where Mila is
on a lot which she inherited from her father. Is the building a resident. In 1992, they jointly acquired a residential house
conjugal or paraphernal? Reasons. (2012) and lot, as well as a condominium unit in Makati. In 1995,
they decided to change their property relations to the
SUGGESTED ANSWER: regime of complete separation of property. Mila consented,
It depends. If the value of the building is more than the value as she was then engaged in a lucrative business. The spouses
of the land, the building is conjugal and the land becomes then signed a private document dissolving their conjugal
conjugal property under Article 120 of the Family Code. This partnership and agreeing on a complete separation of
is a case of reverse accession, where the building is property. Thereafter, Gabby acquired a mansion in Baguio
considered as the principal and the land, the accessory. If, on City, and a 5-hectare agricultural land in Oriental Mindoro,
the other hand, the value of the land is more than the value which he registered exclusively in his name. In the year
of the building, then the ordinary rule of accession applies 2000, Mila's business venture failed, and her creditors
where the land is the principal and the building, the sued her for P10,000,000.00. After obtaining a favorable
accessory. In such case, the land remains paraphernal judgment, the creditors sought to execute on the spouses'
property and the building becomes paraphernal properly. house and lot and condominium unit, as well as Gabby's
mansion and agricultural land. (2005)
In 1970, Bob and Issa got married without executing a a) Discuss the status of the first and the amended
marriage settlement. In 1975, Bob inherited from his father marriage settlements.
a residential lot upon which, in 1981, he constructed a two-
room bungalow with savings from his own earnings. At that SUGGESTED ANSWER:
time, the lot was worth P800.000.00 while the house, when The marriage settlement between Gabby and Mila
finished cost P600,000.00. In 1989 Bob died, survived only adopting the regime of conjugal partnership of gains still
by his wife, Issa and his mother, Sofia. Assuming that the subsists. It is not dissolved by the mere agreement of the
relative values of both assets remained at the same spouses during the marriage. It is clear from Article 134 of the
proportion: (1998) Family Code that in the absence of an express declaration in
1. State whether Sofia can rightfully claim that the the marriage settlement, the separation of property between
house and lot are not conjugal but exclusive the spouses during the marriage shall not take place except
property of her deceased son. by judicial order.
Since Bob and Sofia got married In 1970, then the law b) Discuss the effects of the said settlements on the
that governs is the New Civil Code (Persons), in which case, the properties acquired by the spouses.
property relations that should be applied as regards the
property of the spouses is the system of relative community or SUGGESTED ANSWER:
conjugal partnership of gains (Article 119, Civil Code). By The regime of conjugal partnership of gains governs the
conjugal partnership of gains, the husband and the wife properties acquired by the spouses. All the properties
place in a common fund the fruits of their separate acquired by the spouses after the marriage belong
property and the income from their work or Industry to the conjugal partnership. Under Article 116 of
(Article 142, Civil Code). In this instance, the lot inherited the Family Code, even if Gabby registered the mansion
by Bob in 1975 is his own separate property, he and 5-hectare agricultural land exclusively in his name,
having acquired the same by lucrative title (par. 2, Art. 148, still they are presumed to be conjugal
Civil Code). However, the house constructed from properties, unless the contrary is proved.
his own savings in 1981 during the subsistence of his
marriage with Issa is conjugal property and not exclusive c) What properties may be held answerable for
property in accordance with the principle of "reverse Mila's obligations? Explain.
accession" provided for in Art. 158, Civil Code.
2. Will your answer be the same if Bob died before Except for the residential house which is the family
August 3, 1988? home, all other properties of Gabby and Mila may be
held answerable for Mila's obligation. Since the said
SUGGESTED ANSWER: properties are conjugal in nature, they can be held liable for
Yes, the answer would still be the same. Since Bob and Issa debts and obligations contracted during the marriage to the
contracted their marriage way back in 1970, then the extent that the family was benefited or where the debts
property relations that will govern is still the relative were contracted by both spouses, or by one of them,
community or conjugal partnership of gains (Article 119, with the consent of the other.
Civil Code). It will not matter if Bob died before or after
August 3. 1988 (effectivity date of the Family Code], what Bar Candidates Patricio Mahigugmaon and Rowena Amor
matters is the date when the marriage was contracted. As decided to marry each other before the last day of the 1991
Bob and Issa contracted their marriage way back in 1970. The Bar Examinations. They agreed to execute a Marriage
property relation that governs them is still the conjugal Settlement. Rowena herself prepared the document in her
partnership of gains. (Art. 158, Civil Code) own handwriting. They agreed on the following: (1) a
conjugal partnership of gains; (2) each donates to the other


fifty percent (50%) of his/her present property, (3) Rowena properties, his subsequent transfer of all his interest therein
shall administer the conjugal partnership property; and (4) to Borromeo, a Filipino, was valid as it removed the
neither may bring an action for the annulment or disqualification. In such case, the properties are owned by
declaration of nullity of their marriage. Both signed the Borromeo and Descallar in equal shares. If, on the other
agreement in the presence of two (2) witnesses. They did hand, Jambrich and Descallar were not capacitated to marry
not, however, acknowledge it before a notary public. (1991) each other, Article 153 Coownership governs their property
relations. Under this regime, Jambrich and Descallar are
a) As to form, is the Marriage Settlement valid? owners of the properties but only if both of them contributed
May it be registered in the registry of property? If in their acquisition. If all the funds used in acquiring the
not, what steps must be taken to make it properties in question came from Jambrich, the entire
registerable? property is his even though he is disqualified from owning it.
His subsequent transfer to Borromeo, however, is valid as it
SUGGESTED ANSWER: removed the disqualification. In such case, all of the
Yes, it is valid as to form because it is in writing. No, it cannot properties are owned by Borromeo. If, on the other hand,
be registered in the registry of property because it is not a Descallar contributed to their acquisition, the properties are
public document. To make it registerable, it must be reformed co-owned by Descallar and Borromeo in proportion to the
and has to be notarized. respective contributions of Descallar and Jambrich.

b) Are the stipulations valid? As finance officer of K and Co., Victorino arranged a loan of
P5 Million from PNB for the corporation. However, he was
SUGGESTED ANSWER: required by the bank to sign a Continuing Surety
Stipulations (1) and (3) are valid because they are not Agreement to secure the repayment of the loan. The
contrary to law. Stipulation (4) is void because it is corporation failed to pay the loan, and the bank obtained a
contrary to law. Stipulation (2) is valid up to 1/5 of their judgment against it and Victorino, jointly and severally. To
respective present properties but void as to the excess (Art enforce the judgment, the sheriff levied on a farm owned by
84, Family Code). the conjugal partnership of Victorino and his wife Elsa. Is
the levy proper or not? (2000)
c) If the Marriage Settlement is valid as to
form and the above stipulations are SUGGESTED ANSWER:
likewise valid, does it now follow that said Marriage The levy is not proper there being no showing that the
Settlement is valid and enforceable? surety agreement executed by the husband redounded to the
benefit of the family. An obligation contracted by the
SUGGESTED ANSWER: husband alone is chargeable against the conjugal partnership
No. on September 15, 1991, the marriage settlement is not only when it was contracted for the benefit of the family.
yet valid and enforceable until the celebration of the When the obligation was contracted on behalf of the family
marriage, to take place before the last day of the 1991 bar business the law presumes that such obligation will redound
Examinations. to the benefit of the family. However, when the obligation
was to guarantee the debt of a third party, as in the
Jambrich, an Austrian, fell in-love and lived together with problem, the obligation is presumed for the benefit of the
Descallar and bought their houses and lots at Agro-Macro third party, not the family. Hence, for the obligation under
Subdivision. In the Contracts to Sell, Jambrich and Descallar the surety agreement to be chargeable against the
were referred to as the buyers. When the Deed of Absolute partnership it must be proven that the family was benefited
Sale was presented for registration before the Register of and that the benefit was a direct result of such agreement.
Deeds, it was refused because Jambrich was an alien and
could not acquire alienable lands of the public domain. In 1989, Rico, then a widower forty (40) years of age,
After Jambrich and Descallar separated, Jambrich cohabited with Cora, a widow thirty (30) years of age. While
purchased an engine and some accessories for his boat from living together, they acquired from their combined earnings
Borromeo. To pay for his debt, he sold his rights and a parcel of riceland. After Rico and Cora separated, Rico
interests in the Agro-Macro properties to Borromeo. lived together with Mabel, a maiden sixteen (16) years
Borromeo discovered that titles to the three (3) lots have of age. While living together, Rico was a salaried
been transferred in the name of Descallar. Who is the employee and Mabel kept house for Rico and did full-time
rightful owner of the properties? Explain. (2012) household chores for him. During their cohabitation, a
parcel of coconut land was acquired by Rico from his
SUGGESTED ANSWER: savings. After living together for one (1) year, Rico and
It depends. On the assumption that the Family Code is the Mabel separated. Rico then met and married Letty, a single
applicable law, the ownership of the properties depends on woman twenty-six (26) years of age. During the marriage
whether or not Jambrich and Descallar are capacitated to of Rico and Letty, Letty bought a mango orchard out of her
marry each other during their cohabitation, and whether or own personal earnings. (1992, 1997, 2000)
not both have contributed funds for the acquisition of the a) Who would own the riceland, and what property
properties. If both of them were capacitated to marry each relations governs the ownership? Explain.
other, Article 147-Coownership will apply to their property
relations and the properties in question are owned by them SUGGESTED ANSWER:
in equal shares even though all the funds used in acquiring Rico and Cora are the co-owners of the riceland. The
the properties came only from the salaries or wages or the Relations is that of co-ownership (Art. 147, Family Code,
income of Jambrich from his business or profession. In such first paragraph).
a case, while Jambrich is disqualified own any part of the

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 12
b) Who would own the coconut land, and what a. The artificial insemination has been authorized or ratified
property Relations governs the ownership? Explain. by the spouses in a written instrument executed and
signed by them before the birth of the child; and
SUGGESTED ANSWER: b. The written instrument is recorded in the civil registry
Rico is the exclusive owner of the coconut land. The together with the birth certificate of the child.
Relations is a sole/single proprietorship (Art. 148. Family
Code, first paragraph is applicable, and not Art. 147 Family RN and DM, without any impediment to marry each other,
Code. had been living together without benefit of church
blessings. Their common-law union resulted in the birth of
c) Who would own the mango orchard, and what ZMN. Two years later, they got married in a civil
property Relations governs the ownership? Explain. ceremony. Could ZMN be legitimated? Reason.


Rico and Letty are the co-owners. The Relations is the ZMN was legitimated by the subsequent marriage of RN
Absolute Community of Property (Arts, 75,90and9l, Family and DM because at the time he was conceived, RN and DM
Code). could have validly married each other. Under the Family
Code children conceived and born outside of wedlock of
V. Paternity and Filiation (Family Code) parents who, at the time of the former's conception, were
not disqualified by any impediment to marry each other are
Two (2) months after the death of her husband who was shot legitimated by the subsequent marriage of the parents.
by unknown criminal elements on his way home from office,
Rose married her childhood boyfriend, and seven (7) months Abraham died intestate on 7 January 1994 survived by his
after said marriage, she delivered a baby. In the absence son Braulio. Abraham's older son Carlos died on 14
of any evidence from Rose as to who is her child's father, February 1990. Danilo who claims to be an adulterous
what status does the law give to said child? Explain. (1999) child of Carlos intervenes in the proceedings for the
settlement of the estate of Abraham in representation of
SUGGESTED ANSWER: Carlos. Danilo was legally adopted on 17 March 1970 by
The child is legitimate of the second marriage under Article Carlos with the consent of the "latter's wife.” (1995, 1999)
168(2) of the Family Code which provides that a "child a. Under the Family Code, how may an illegitimate
born after one hundred eighty days following the filiation be proved? Explain.
celebration of the subsequent marriage is considered to
have been conceived during such marriage, even though it SUGGESTED ANSWER:
be born within three hundred days after the termination of Under Art. 172 in relation to Art. 173 and Art. 175 of the
the former marriage." FC, the filiation of illegitimate children may be
established in the same way and by the same evidence as
legitimate children. Art. 172 provides that the filiation of
Ed and Beth have been married for 20 years without legitimate children is established by any of the following:
children. Desirous to have a baby, they consulted Dr. Jun (1) the record of birth appearing in the civil register
Canlas, a, prominent medical specialist on human fertility. or a final Judgment; or (2) an admission of legitimate
He advised Beth to undergo artificial insemination. It was filiation in a public document or a private handwritten
found that Ed’s sperm count was inadequate to induce instrument and signed by the parent concerned. In the
pregnancy. Hence, the couple looked for a willing donor. absence of the foregoing evidence, the legitimate filiation
Andy the brother of Ed, readily consented to donate his shall be proved by: (1) the open and continuous
sperm. After a series of test, Andy's sperm was medically possession of the status of a legitimate child; or (2)
introduced into Beth's ovary. She became pregnant and 9 any other means allowed by the Rules of Court and special
months later, gave birth to a baby boy, named Alvin. (2006) laws.
a) Who is the Father of Alvin? Explain.
b. As lawyer for Danilo, do you have to prove
SUGGESTED ANSWER: Danilo's illegitimate filiation? Explain.
Andy is the biological father of Alvin being the source of the
sperm. Andy is the legal father of Alvin because there was SUGGESTED ANSWER:
neither consent nor ratification to the artificial No. Since Danilo has already been adopted by Carlos, he
insemination. Under the law, children conceived by artificial ceased to be an illegitimate child. An adopted child
insemination are legitimate children of the spouses, acquires all the rights of a legitimate child under Art, 189 of
provided, that both of them authorized or ratified the the FC.
insemination in a written instrument executed and signed by
both of them before the birth of the child (Art. 164, Family c. Can Danilo inherit from Abraham in representation
Code). of his father Carlos? Explain.

b) What are the requirements, if any, in order for Ed SUGGESTED ANSWER:

to establish his paternity over Alvin. No, he cannot. Danilo cannot represent Carlos as the latter's
adopted child in the inheritance of Abraham because
SUGGESTED ANSWER: adoption did not make Danilo a legitimate grandchild of
The following are the requirements for Ed to establish his Abraham. Adoption is personal between Carlos and Danilo. He
paternity over Alvin: cannot also represent Carlos as the latter's


illegitimate child because in such case he is barred c) Supposing that Joey died during the pendency of
by Art. 992 of the NCC from inheriting from his the action, should the action be dismissed?
illegitimate grandfather Abraham. Explain.

Steve was married to Linda, with whom he had a daughter, SUGGESTED ANSWER:
Tintin. Steve fathered a son with Dina, his secretary of 20 If Joey died during the pendency of the action, the action
years, whom Dina named Joey, born on September 20, should still be dismissed because the right of Joey or his
1981. Joey's birth certificate did not indicate the father's heirs to file the action has already prescribed. (Art. 175,
name. Steve died on August 13, 1993, while Linda died on Family Code)
December 3, 1993, leaving their legitimate daughter, Tintin,
as sole heir. On May 16, 1994, Dina filed a case on behalf of VIII. Adoption
Joey, praying that the latter be declared an acknowledged A. Domestic Adoption Act of 1998 (R.A. No. 8552)
illegitimate son of Steve and that Joey be given his share in
Steve's estate, which is now being solely held by Tintin. Despite several relationships with different women,
Tintin put up the defense that an action for recognition Andrew remained unmarried. His first relationship with
shall only be filed during the lifetime of the presumed Brenda produced a daughter, Amy, now 30 years old. His
parents and that the exceptions under Article 285 of the second, with Carla, produced two sons: Jon and Ryan. His
Civil Code do not apply to him since the said article has third, with Donna, bore him no children although Elena has
been repealed by the Family Code. In any case, according to a daughter Jane, from a previous relationship. His last, with
Tintin, Joey's birth certificate does not show that Steve is his Fe, produced no biological children but they informally
father. (2005) adopted without court proceedings, Sandy's now 13 years
a) Does Joey have a cause of action against Tintin old, whom they consider as their own. Sandy was orphaned
for recognition and partition? Explain. as a baby and was entrusted to them by the midwife who
attended to Sandy's birth. All the children, including Amy,
SUGGESTED ANSWER: now live with Andrew in his house. (2008)
No, Joey does not have a cause of action against Tintin for a. Is there any legal obstacle to the legal adoption of
recognition and partition. Under Article 175 of the Family Amy by Andrew? To the legal adoption of Sandy by
Code, as a general rule, an action for compulsory Andrew and Elena?
recognition of an illegitimate child can be brought at any b. In his old age, can Andrew be legally entitled to
time during the lifetime of the child. However, if the action is claim support from Amy, Jon, Ryan, Vina, Wilma,
based on "open and continuous possession of the status of and Sandy assuming that all of them have the
an illegitimate child, the same can be filed during the means to support him?
lifetime of the putative father." In the present case, the action c. Can Amy, Jon, Ryan, Vina, Wilma, and Sandy legally
for compulsory recognition was filed by Joey's mother, Dina, claim support from each other?
on May 16,1994, after the death of Steve, the putative father. d. Can Jon and Jane legally marry?
The action will prosper if Joey can present his birth certificate
that bears the signature of his putative father. However, the SUGGESTED ANSWER:
facts clearly state that the birth certificate of Joey did not a. No, there is no legal obstacle to the legal adoption
indicate the father's name. A birth certificate not signed of Amy by Andrew. While a person of age may not
by the alleged father cannot be taken as a record of birth to be adopted, Amy falls within two exceptions: (!) she
prove recognition of the child, nor can said birth is an illegitimate child and she is being adopted by
certificate be taken as a recognition in a public her illegitimate father to improve status; and (2)
instrument. Consequently, the action filed by Joey's mother even on the assumption that she is not an
has already prescribed. illegitimate child of Andrew, she may still be
adopted, although of legal age, because she has
b) Are the defenses set up by Tintin tenable? been consistently considered and treated by the
Explain. adopter as his own child since minority. In fact, she
has been living with him until now.
SUGGESTED ANSWER: There is a legal obstacle to the adoption of Sandy by
Yes, the defenses of Tintin are tenable. In Tayag v. Court of Andrew and Elena. Andrew and Elena cannot adopt
Appeals (G.R. No. 95229, June 9,1992), a complaint to jointly because they are not married.
compel recognition of an illegitimate child was brought
before effectivity of the Family Code by the mother of a b. Andrew can claim support from them all, except
minor child based on "open and continuous possession of from Sandy, who is not his child, legitimate,
the status of an illegitimate child." The Supreme Court held illegitimate or adopted.
that the right of action of the minor child has been vested by
the filing of the complaint in court under the regime of the c. Jon, Ryan, Vina and Wilma can ask support from
Civil Code and prior to the effectivity of the Family Code. each other because they are half-blood brothers
The ruling in Tayag v. Court of Appeals finds no and sisters, and Wilma are full-blood sisters (Art.
application in the instant case. Although the child was born 195[5], Family Code), but not Sandy who is not
before the effectivity of the Family Code, the complaint was related to any of them.
filed after its effectivity. Hence, Article 175 of the Family
Code should apply and not Article 285 of the Civil Code. d. Jon and Jane can legally marry because they are not
related to each other. Jane is not a daughter of

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 14
Honorato filed a petition to adopt his minor illegitimate
child Stephanie, alleging that Stephanie’s mother is Gemma In 1984, Eva, a Filipina, went to work as a nurse in the
Astorga Garcia; that Stephanie has been using her mother’s USA. There, she met and fell in love with Paul, an American
middle name and surname; and that he is now a widower citizen, and they got married in 1985. Eva acquired
and qualified to be her adopting parent. He prayed that American citizenship in 1987. During their sojourn in the
Stephanie’s middle name be changed from "Astorga" to Philippines in 1990, they filed a joint petition for the
"Garcia," which is her mother’s surname and that her adoption of Vicky, a 7-year old daughter of Eva's sister. The
surname "Garcia" be changed to "Catindig," which is his government, through the Office of the Solicitor General,
surname. This the trial court denied. Was the trial court opposed the petition on the ground that the petitioners,
correct in denying Hororato’s request for Stephanie’s use of being both foreigners, are disqualified to adopt Vicky. (2000,
her mother’s surname as her middle name? Explain. (1996, 2003, 2005)
a) Is the government's opposition tenable? Explain.
No, the trial court was not correct. There is no law prohibiting SUGGESTED ANSWER:
an illegitimate child adopted by his natural father to use as The government's position is untenable. Under paragraph 3,
middle name his mother's surname. The law is silent as to Article 184 of the Family Code, an alien, as a general rule
what middle name an adoptee may use. In the case of In re: cannot adopt. However, an alien who is a former Filipino
Adoption of Stephanie Nathy Astorga Garcia, G.R. No, citizen and who seeks to adopt a relative by consanguinity is
148311, March 31, 2005} the Supreme Court ruled that the qualified to adopt, (par. 3[a], Art. 184, Family Code). In the
adopted child may use the surname of the natural mother as given problem, Eva, a naturalized American citizen would
his middle name because there is no prohibition in the law like to adopt Vicky, a 7-year old daughter of her sister.
against it. Moreover, it will also be for the benefit of the Thus, under the above-cited provision, Eva is qualified to
adopted child who shall preserve his lineage on his mother’s adopt Vicky.
side and reinforce his right to inherit from his mother and her
family. Lastly, it will make the adopted child conform with the b) Would your answer be the same if they sought
time-honored Filipino tradition of carrying the mother’s to adopt Eva's illegitimate daughter? Explain.
surname as the person’s middle name.
In 1975, Carol begot a daughter Bing, out of wedlock. My answer will still be the same. Paragraph 3(a) of Article
When Bing was ten years old, Carol gave her consent for 184 of the Family Code does not make any distinction. The
Bing's legal adoption by Norma and Manuel, which was provision states that an alien who is a former Filipino citizen
granted by the court in 1990. In 1991, Carol learned that is qualified to adopt a relative by consanguinity.
Norma and Manuel were engaged in a call-girl-ring that
catered to tourists. Some of the girls lived with Norma and c) Supposing that they filed the petition to adopt
Manuel. Carol got Bing back, who in the first place wanted Vicky in the year 2000, will your answer be the
to return to her natural mother. (1994) same? Explain.
1) Who has a better right to the custody of Bing,
SUGGESTED ANSWER: Yes, my answer will still be the same. Under Sec. 7(b), Art. III
It depends on whether or not Bing was at least 18 years old at of the New Domestic Adoption Act, an alien who
the time Carol asserts the prerogative to take custody of possesses all the qualifications of a Filipino national who is
Bing. If she was at least 18 years old, then she is no longer qualified to adopt may already adopt provided that his
under parental authority and neither Carol nor Norma can country has diplomatic relations with the Philippines, that
assert the prerogative to take custody. However, if she was he has been living in the Philippines for at least three (3)
less than 18 years old, then Norma has a better right since continuous years prior to the filing of the application for
the adoption by Norma of Bing terminates the parental adoption and maintains such residence until the adoption
authority of Carol over Bing. decree is entered, that he has been certified by his
diplomatic or consular office or any appropriate
2) Aside from taking physical custody of Bing, government agency that he has the legal capacity to adopt in
what legal actions can Carol take to protect Bing? his country, and that his government allows the adoptee to
enter his country as his adopted child.
On the assumption that Bing is still a minor or otherwise A German couple filed a petition for adoption of a minor
incapacitated, Carol may petition the proper court for Filipino child with the Regional Trial Court of Makati under
resolution or rescission of the decree of adoption on the the provisions of the Child and Youth Welfare Code which
ground that the adopting parents have exposed, or are allowed alien to adopt. Before the petition could be heard,
exposing, the child to corrupt influence, tantamount to the Family Code, which repealed the Child and Youth
giving her corrupting orders or examples. She can also ask Welfare Code, came into effect. Consequently, the Solicitor
for the revesting in her of parental authority over Bing. If General filed a motion to dismiss the petition, on the
However, Bing is already 19 years of age and therefore no ground that the Family Code prohibits aliens from adopting.
longer a minor, it is not Carol but Bing herself who can If you were the judge, how will you rule on the motion?
petition the court for judicial rescission of the adoption, (2001)
provided she can show a ground for disinheritance of an


The motion to dismiss the petition for adoption should be Angel. (Adoption of Michelle P. Lim, G.R. Nos. 168992-93,
denied. The law that should govern the action is the law in May 21, 2009).
force at the time of filing of the petition. At that time, it was
the Child and Youth Welfare Code that was in effect, not the B. Inter-Country Adoption Act of 1995 (R.A. No. 8043)
Family Code. Petitioners have already acquired a vested right
on their qualification to adopt which cannot be taken away Hans Berber, a German national, and his Filipino wife,
by the Family Code. Rhoda, are permanent residents of Canada. They desire so
much to adopt Magno, an 8-year old orphaned boy and a
A Filipino couple, Mr. and Mrs. BM, Jr., decided to adopt baptismal godson of Rhoda. Since the accidental death of
YV, an orphan from St. Claire’s orphanage in New York Magno's parents in 2004, he has been staying with his aunt
City. They loved and treated her like a legitimate child for who, however, could hardly afford to feed her own family.
they have none of their very own. However, BM, Jr., died Unfortunately, Hans and Rhoda cannot come to the
in an accident at sea, followed to the grave a year later by his Philippines to adopt Magno although they possess all the
sick father, BM, Sr. Each left a sizable estate consisting of qualifications as adoptive parents. Is there a possibility for
bank deposits, lands and buildings in Manila. May the them to adopt Magno? How should they go about it? (2005)
adopted child, YV, inherit from BM, Jr.? May she also
inherit from BM, Sr.? Is there a difference? Why? Explain. SUGGESTED ANSWER:
(2004) Yes, it is possible for Hans and Rhoda to adopt Magno.
SUGGESTED ANSWER: Republic Act No. 8043 or the Inter-Country Adoption Act,
YV can inherit from BM, Jr. The succession to the estate of allows aliens or Filipinos permanently residing abroad to
BM, Jr. is governed by Philippine law because he was a apply for inter-country adoption of a Filipino child. Hans and
Filipino when he died (Article 16, Civil Code). Under Article Rhoda have to file an application to adopt Magno, either
1039 of the Civil Code, the capacity of the heir to succeed is with the Regional Trial Court having jurisdiction over
governed by the national law of the decedent and not by the Magno or with the Inter-Country Adoption Board in
national law of the heir. Hence, whether or not YV can Canada. Hans and Rhoda will then undergo a trial custody for
inherit from BM, Jr. is determined by Philippine law. Under six (6) months from the time of placement. It is only after the
Philippine law, the adopted inherits from the adopter as a lapse of the trial custody that the decree of adoption can be
legitimate child of the adopter. YV, however, cannot inherit, issued.
in his own right, from the father of the adopter, BM, Sr.,
because he is not a legal heir of BM, Sr. The legal fiction of X. Parental Authority (Family Code)
adoption exists only between the adopted and the adopter.
Neither may he inherit from BM, Sr. By representing BM, Under Article 213 of the Family Code, no child under 7
Jr. because in representation, the representative must be years of age shall be separated from the mother unless the
a legal heir not only of the person he is representing but also court finds compelling reasons to order otherwise. Explain the
of the decedent from whom the represented was supposed rationale of this provision. Give at least 3 examples of
to inherit (Article 973, Civil Code). "compelling reasons" which justify the taking away from
the mother's custody of her child under 7 years of age. (2006)
Spouses Primo and Monina Lim, childless, were entrusted
with the custody of two (2) minor children, the parents of Distinguish briefly but clearly between: Substitute parental
whom were unknown. Eager of having children of their authority and special parental authority. (2004)
own, the spouses made it appear that they were the
children’s parents by naming them Michelle P. Lim and If during class hours, while the teacher was chatting with
Michael Jude Lim. Subsequently, Monina married Angel other teachers in the school corridor, a 7 year old male pupil
Olario after Primo’s death. She decided to adopt the stabs the eye of another boy with a ball pen during a fight,
children by availing the amnesty given under R.A. 8552 to causing permanent blindness to the victim, who could be
those individuals who simulated the birth of a child. She liable for damages for the boy’s injury: the teacher, the
filed separate petitions for the adoption of Michelle, then school authorities, or the guilty boy’s parents? Explain. (2003)
25 years old and Michael, 18. Both Michelle and Michael
gave consent to the adoption. The trial court dismissed the SUGGESTED ANSWER:
petition and ruled that Monina should have filed the The school, its administrators, and teachers have special
petition jointly with her new husband. Monina, in a Motion parental authority and responsibility over the minor child
for Reconsideration argues that mere consent of her while under their supervision, instruction or custody (Article
husband would suffice and that joint adoption is not 218, FC). They are principally and solidarily liable for the
needed, for the adoptees are already emancipated. Is the damages caused by the acts or omissions of the
trial court correct in dismissing the petitions for adoption? unemancipated minor unless they exercised the proper
Explain. (2012) diligence required under the circumstances (Article 219, FC).
In the problem, the TEACHER and the SCHOOL
SUGGESTED ANSWER: AUTHORITIES are liable for the blindness of the victim,
Yes, the trial court was correct. At the time the positions for because the student who cause it was under their special
adoptions were filed, petitioner had already remarried. parental authority and they were negligent. They were
Under the law, husband and wife shall adopt jointly, except negligent because they were chatting in the corridor during
in cases enumerated in the law. The adoption cases of the class period when the stabbing incident occurred. The
Michelle and James do not fall in any of the exceptions incident could have been prevented had the teacher been
provided in the law where a spouse is permitted to adopt inside the classroom at that time. The guilty boy’s
alone. Hence, Monina should adopt jointly with her husband PARENTS are subsidiarily liable under Article 219 of the
Family Code.

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 16
City under the administrative proceeding provided in
XI. Emancipation Republic Act No. 9048. He alleged that his first name
sounds ridiculous and is extremely difficult to spell and
Julio and Lea, both 18 years old, were sweethearts. At a pronounce. After complying with the requirements of the
party at the house of a mutual friend. Lea met Jake, also 18 law, the Civil Registrar granted his petition and changed his
years old, who showed interest in her. Lea seemed to first name Zirxthoussous to "Jesus." His full name now
entertain Jake because she danced with him many times. In reads "Jesus delos Santos." Jesus delos Santos moved to
a fit of jealousy, Julio shot Jake with his father's 38 caliber General Santos City to work in a multi-national company.
revolver which, before going to the party he was able to get There, he fell in love and married Mary Grace delos Santos.
from the unlocked drawer inside his father's bedroom. Jake She requested him to have his first name changed
died as a result of the lone gunshot wound he sustained. His because his new name "Jesus delos Santos" is the same
parents sued Julio's parents for damages arising from quasi- name as that of her father who abandoned her family
delict. At the time of the incident, Julio was 18 years old and became a notorious drug lord. She wanted to forget
living with his parents. Julio's parents moved to dismiss the him. Hence, Jesus filed another petition with the Office
complaint against them claiming that since Julio was already of the Local Civil Registrar to change his first name to
of majority age, they were no longer liable for his acts. (1993) "Roberto." He claimed that the change is warranted
a) Should the motion to dismiss be granted? Why? because it will eradicate all vestiges of the infamy of Mary
Grace's father. Will the petition for change of name of Jesus
SUGGESTED ANSWER: delos Santos to Roberto delos Santos under Republic Act
No, the Motion to Dismiss should not be granted. Article No. 9048 prosper? Explain. (2006)
236 of the Family Code as amended by Republic Act 6809,
provides in the third paragraph that "nothing in this Code SUGGESTED ANSWER:
shall be construed to derogate from the duty or No, under the law, Jesus may only change his name once. In
responsibility of parents and guardians for children and addition, the petition for change of name may be denied on
wards below twenty-one years of age mentioned in the the following grounds:
second and third paragraphs of Article 2180 of the Civil (1) Jesus is neither ridiculous, nor tainted with dishonour
Code". nor extremely difficult to write or pronounce.
(2) There is no confusion to be avoided or created with
b) What is the liability of Julio's parents to Jake's the use of the registered first name or nickname of the
parents? Explain your answer. petitioner.
SUGGESTED ANSWER: (3) The petition involves the same entry in the same
The liability of Julio's parents to Jake's parents arises from document, which was previously corrected or changed under
quasi-delict and shall cover specifically the following: this Order.
a) P50,000.00 for the death of the son;
b) such amount as would correspond to lost earning What entries in the Civil Registry may be changed or
capacity; and corrected without a judicial order?
c) moral damages.
XIII. Retroactivity of the Family Code (Art. 256) Only clerical or typographical errors and first or nick names
may be changed or corrected without a judicial order under RA
On April 15, 1980, Rene and Angelina were married to each 9048. Clerical or typographical errors refer to mistakes
other without a marriage settlement. In 1985, they acquired committed in the performance of clerical work in writing,
a parcel of land in Quezon City. On June 1, 1990, when copying, transcribing or typing an entry in the civil
Angelina was away in Baguio, Rene sold the said lot to register. The mistake is harmless and innocuous, such as
Marcelo. Is the sale void or voidable? (2000) errors in spelling, visible to the eyes or obvious to the
understanding, and can be corrected or changed only by
SUGGESTED ANSWER: reference to other existing records. Provided, however, that
The sale is voidable. The provisions of the Family Code may no correction must involve the change of nationality, age,
apply retroactively but only if such application will not impair status or sex of the petitioner.
vested rights. When Rene and Angelina got married in 1980,
the law that governed their property relations was the New Gianna was born to Andy and Aimee, who at the time
Civil Code. Under the NCC, as interpreted by the Gianna's birth were not married to each other. While Andy
Supreme Court in Heirs of Felipe v. Aldon, 100 SCRA 628 was single at the time, Aimee was still in the process of
and reiterated in Heirs of Ayuste v. Malabonga, G.R No, securing a judicial declaration of nullity on her marriage to
118784, 2 September 1999, the sale executed by the her ex-husband. Gianna's birth certificate, which was signed
husband without the consent of the wife is voidable. The by both Andy and Aimee, registered the status of Gianna as
husband has already acquired a vested right on the voidable "legitimate", her surname carrying that of Andy's and that
nature of dispositions made without the consent of the wife. her parents were married to each other. (2008)
Hence, Article 124 of the Family Code which makes the sale a. Can a judicial action for correction of entries in
void does not apply. Gianna's birth certificate be successfully
maintained to:
XVII. Civil Registrar i. Change her status from "legitimate" to
Zirxthoussous delos Santos filed a petition for change of
name with the Office of the Civil Registrar of Mandaluyong SUGGESTED ANSWER:


A judicial action cannot be maintained to change the Salvador, a timber concessionaire, built on his lot a
status of Gianna from “legitimate” to “illegitimate” child warehouse where he processes and stores his timber for
of Andy and Aimee. While it is true that Gianna is the shipment. Adjoining the warehouse is a furniture factory
biological daughter of Andy and Aimee conceived and born owned by NARRAMIX of which Salvador is a majority
without marriage between them, Gianna is presumed, under stockholder. NARRAMIX leased space in the warehouse
the law as the legitimate child of Andy and her where it placed its furniture-making machinery. (1995, 1997)
husband. To correct the status of Gianna in her birth a) How would you classify the furniture-making
certificate from “legitimate child of Andy and Aimee” to machinery as property under the Civil Code? Explain.
“illegitimate child of Andy and Aimee” will amount to
indirectly impugning her filiation as the child of Aimee’s SUGGESTED ANSWER:
husband. This is not allowed unless brought by Aimee’s The furniture-making machinery is movable property
husband in a proper action. What cannot be done because it was not installed by the owner of the tenement.
directly cannot be done indirectly. To become immovable under Art. 415 (5) of the NCC,
the machinery must be installed by the owner
ii. Change her surname from that of Andy's of the tenement.
to Aimee's maiden surname?
b) Suppose the lease contract between Salvador and
SUGGESTED ANSWER: NARRAMIX stipulates that at the end of the
A judicial action to change the surname of Gianna from the lease the machinery shall become the property of
surname of Andy to the maiden surname of Aimee is also the lessor, will your answer be the same? Explain.
not allowed. Gianna, being presumed to be the legitimate
child of Aimee’s husband is required by law to be registered SUGGESTED ANSWER:
under the surname of Aimee’s husband. While it is true that It is immovable property. When there is a provision in the
Gianna’s registered surname is erroneous, a judicial action lease contract making the lessor, at the end of the lease,
for correction of entry to change the surname of Gianna to owner of the machinery installed by the lessee, the
that of Aimee’s maiden surname will also be erroneous. A said machinery is considered to have been installed
judicial action to correct an entry in the birth certificate is by the lessor through the lessee who acted merely as his
allowed to correct an error and not to commit another agent. Having been installed by the owner of the tenement,
error. the machinery became immovable under Art. 415 of
the NCC. (Davao Sawmill v. Castillo 61 Phil. 709)
b. Instead of a judicial action, can administrative
proceedings be brought for the purpose of making Manila Petroleum Co. owned and operated a petroleum
the above corrections? operation facility off the coast of Manila. The facility was
located on a floating platform made of wood and metal,
SUGGESTED ANSWER: upon which was permanently attached the heavy
Under R.A. 9048, only typographical errors are allowed to equipment for the petroleum operations and living quarters
be corrected administratively. The change of status from of the crew. The floating platform likewise contained a
legitimate to illegitimate is not a typographical garden area, where trees, plants and flowers were planted.
error and even assuming that it is, its administrative The platform was tethered to a ship, the MV 101, which was
correction is not allowed under R.A. 9048. Typographical anchored to the seabed. (2007)
errors involving status, age, citizenship, and gender a. Is the platform movable or immovable property?
are expressly excluded from what may be corrected b. Are the equipment and living quarters movable or
administratively. The change of the surname is also not immovable property?
allowed administratively. R.A. 9048 provides for an c. Are the trees, plants and flowers immovable or
administrative procedure for change of first name movable property?
only and not for change of surname. Please briefly give the reason for your answers.

c. Assuming that Aimee is successful in declaring her II. Good faith and Bad Faith of the Builder, Planter, Sower
former marriage void, and Andy and Aimee
subsequently married each other, would Gianna be Ciriaco Realty Corporation (CRC) sold to the spouses Del a
legitimated? Cruz a 500-square meter land (Lot A) in Paranaque. The land
now has a fair market value of Pl,200,000. CRC likewise sold
SUGGESTED ANSWER: to the spouses Rodriguez, a 700-square meter land (Lot B)
No, Gianna will not be legitimated. While the court may have which is adjacent to Lot A. Lot B has a present fair market
declared the marriage void ab initio and, therefore, no value of P1,500,000. The spouses Dela Cruz constructed a
marriage took place in the eyes of the law, Gianna will still house on Lot B, relying on there presentation of the CRC
not be legitimated. This is because at the time she was sales agent that it is the property they purchased. Only
conceived and born her biological parents could not have upon the completion of their house did the spouses Dela
validly married each other. For their marriage to be valid, the Cruz discover that they had built on Lot B owned by the
court must first declare the first marriage null and void. In the spouses Rodriguez, not on Lot A that they purchased. They
problem, Gianna was conceived and born before the court spent P 1 000,000 for the house. As their lawyer, advise the
has decreed the nullity of her mother’s previous marriage. spouses Dela Cruz on their rights and obligations under the
given circumstances, and the recourses and options open to
PROPERTY them to protect their interests. (1992, 2001, 2013)
I. Classification
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 18
Based on the facts as stated, the spouses Dela Cruz as the cost of construction thereof. The Court opined in that
builders and the spouses Rodriguez as landowners, are both case that to do otherwise would unjustly enrich the new
in good faith. The spouses Dela Cruz are builders in good faith owner of the land.
because before constructing the house they exercised due
diligence by asking the agent of CRC the location of Lot A. and b) In the meantime that Pedro is not yet paid,
they relied on the information given by the agent who is who is entitled to the rentals of the building,
presumed to know the identity of the lot purchased by the Pedro or Pablo?
Dela Cruz spouses (Pleasantville v. CA, 253 SCRA 10 [1996]).
On the other hand, there is no showing that the landowners, SUGGESTED ANSWER:
spouses Rodriguez, acted in bad faith. The facts do not show Pablo is entitled to the rentals of the Building. As the
that the building was done with their knowledge and without owner of the land, Pablo is also the owner of the building
opposition on their part (Art. 453, Civil Code). Good faith is being an accession thereto. However, Pedro who is entitled to
always presumed (Art. 527, Civil Code). The owner of the land retain the building is also entitled to retain the rentals. He,
on which anything has been built, sown or planted in good however, shall apply the rentals to the indemnity payable to
faith shall have the right: him after deducting reasonable cost of repair and
(1) to appropriate as his own the works after payment of the maintenance.
indemnity provided for in Articles 546 and 548, or
(2) to oblige the one who built to pay the price of the land. Demetrio knew that a piece of land bordering the beach
belonged to Ernesto. However, since the latter was studying
However, the builder cannot be obliged to buy the land if its in Europe and no one was taking care of the land, Demetrio
value is considerably more than that of the building. In such occupied the same and constructed thereon nipa sheds with
case, he shall pay reasonable rent if the owner of the land tables and benches which he rented out to people who want
does not choose to appropriate the building or trees after to have a picnic by the beach. When Ernesto returned, he
proper indemnity (Art. 448, Civil Code). demanded the return of the land. Demetrio agreed to do so
after he has removed the nipa sheds. Ernesto refused to let
The house constructed by the spouses Dela Cruz is Demetrio remove the nipa sheds on the ground that these
considered as a useful expense, since it increased the value already belonged to him by right of accession. Who is
of the lot. As such, should the spouses Rodriguez decide to correct? (2000)
appropriate the house, the spouses Dela Cruz are entitled to
the right of retention pending reimbursement of the SUGGESTED ANSWER:
expenses they incurred or the increase in value which the Ernesto is correct, Demetrio is a builder in bad faith because
thing may have acquired by reason of the improvement (Art. he knew beforehand that the land belonged to Ernesto,
546, Civil Code). Thus, the spouses Dela Cruz may demand under Article 449 of the New Civil Code, one who builds on
P1,000,000 as payment of the expenses in building the house the land of another loses what is built without right to
or increase in value of the land because of the house as a indemnity. Ernesto becomes the owner of the nipa sheds by
useful improvement, as may be determined by the court right of accession. Hence, Ernesto is well within his right in
front the evidence presented during the trial (Depra Dumlao, refusing to allow the removal of the nipa sheds.
136 SCRA 475 [985l; Technogas Phils. vs. CA. 268 SCRA 5
[1997]). Felix cultivated a parcel of land and planted it to sugar cane,
believing it to be his own. When the crop was eight months
In good faith, Pedro constructed a five-door commercial old, and harvestable after two more months, a resurvey of
building on the land of Pablo who was also in good faith. the land showed that it really belonged to Fred. What are
When Pablo discovered the construction, he opted to the options available to Fred? (2000)
appropriate the building by paying Pedro the cost thereof.
However, Pedro insists that he should be paid the current SUGGESTED ANSWER:
market value of the building, which was much higher As to the pending crops planted by Felix in good faith, Fred has
because of inflation. (2000) the option of allowing Felix to continue the cultivation and to
a) Who is correct Pedro or Pablo? harvest the crops, or to continue the cultivation and harvest
the crops himself. In the latter option, however, Felix shall
SUGGESTED ANSWER: have the right to a part of the expenses of cultivation
Pablo is correct. Under Article 448 of the New Civil Code in and to a part of the net harvest, both in proportion to
relation to Article 546, the builder in good faith is entitled to a the time of possession. (Art. 545 NCC)
refund of the necessary and useful expenses incurred by him,
or the increase in value which the land may have Alex died without a will, leaving only an undeveloped and
acquired by reason of the improvement, at the option of the untitled lot in Tagiug City. He is survived by his wife and 4
landowner. The builder is entitled to a refund of the children. His wife told the children that she is waiving her
expenses he incurred, and not to the market value of the share in the property, and allowed Bobby, the eldest son
improvement. The case of Pecson v. CA, 244 SCRA 407, is not who was about to get married, to construct his house on ¼
applicable to the problem. In the Pecson case, the builder was of the lot, without however obtaining the consent of his
the owner of the land who later lost the property at a public siblings. After settlement of Alex's estate and partition
sale due to non-payment of taxes. The Court ruled that among the heirs, it was discovered that Bobby's house was
Article 448 does not apply to the case where the owner of constructed on the portion allocated to his sister, Cathy
the land is the builder but who later lost the land; not being asked Bobby to demolish his house and vacate the portion
applicable, the indemnity that should be paid to the buyer alloted to her. In leiu of demolition, Bobby offered to
must be the fair market value of the building and not just purchase from Cathy the lot portion on which his house was


constructed. At that time, the house constructed was might possibly be found. Upon inquiry, Marcelino learns
valued at P350.000. (2008) that the owner of the land, Leopoldo, is a permanent
a. Can Cathy lawfully ask for demolition of Bobby's resident of Canada. Nobody, however, could give him
house? Leopoldo's exact address. Ultimately, anyway, he enters the
land and conducts a search. He succeeds. Leopoldo learning
SUGGESTED ANSWER: of Marcelino's "find", seeks to recover the treasure from
Yes, Cathy can ask for the demolition of Bobby’s house on the Marcelino but the latter is not willing to part with it. Failing
portion allotted to Cathy in the partition. The lot is presumed to reach an agreement, Leopoldo sues Marcelino for the
to be community property as it was acquired during the recovery of the property. Marcelino contests the action.
marriage. Upon Alex’s death there was created a co- How would you decide the case? (1997)
ownership by operation of law among the widow and the
four children. (Art. 1078, CC) Bobby’s share is only an SUGGESTED ANSWER:
undivided interest of 1/10 of the entire lot. The widow’s Marcelino appears to be a trespasser and although there may
share in the co-ownership is 6/10 of the entire lot, ½ of the be a question of whether he found it by chance or not, as he
lot being her share in the community property and 1/5 of has found the hidden treasure by means of a treasure map,
Alex’s share in the other half, because she has the same share he will not be entitled to a finder's share. The hidden treasure
as one of the four children. She has the financial majority or shall belong to the owner.
majority interest of the co-ownership. Bobby’s act of building
on ¼ of the lot is an act requiring the unanimous consent of Adam, a building contractor, was engaged by Blas to
all the o-owners since it is an act of alteration. Bobby only construct a house on a lot which he (Blas) owns. While
had the ideal share of 1/10 of the entire lot, and when he digging on the lot in order to lay down the foudation of the
built his house on the ¼ of the lot, he was arrogating unto house, Adam hit a very hard object. It turned out to be the
himself the right to partition the poverty and taking more vault of the old Banco de las Islas Filipinas. Using a
than what he legally owns. The consent given by the widow detonation device, Adam was able to open the vault
to Bobby’s act of building his house was legally insufficient. containing old notes and coins which were in circulation
As a matter of right, Cathy can ask for the demolition of the during the Spanish era. While the notes and coins are no
house and the payment of damages. longer legal tender, they were valued at P100 million
because of their historical value and the coins silver nickel
b. Can Bobby legally insist on purchasing the land? content. The following filed legal claims over the notes and
coins: (2008)
SUGGESTED ANSWER: i. Adam, as finder;
No, Bobby cannot legally insist on purchasing the land. The ii. Blas, as owner of the property where they
rules on building, planting and sowing are not applicable to were found;
co-ownership. The rules applicable to co-ownership are acts iii. Bank of the Philippine Islands, as
of alteration or acts of ownership on one hand and acts of successor-in-interest of the owner of the
mere administration on the other. Even if it were applicable, vault; and
Bobby acted in bad faith and hence, demolition is one of the iv. The Philippine Government because of
three options open to an owner. It is the owner of the land, their historical value.
not the builder, planter, sower who has the options, even if
both acted in bad faith or good faith. a. Who owns the notes and coins?

Tim came into possession of an old map showing where a SUGGESTED ANSWER:
purported cache of gold bullion was hidden. Without any Hidden treasure is money jewelry or other precious objects
authority from the government Tim conducted a relentless the the ownership of which does not appear (Art. 439, CC)
search and finally found the treasure buried in a new river The vault of Banco de la Islas Filipinas has been buried for
bed formerly part of a parcel of land owned by spouses about a century and the Bank of the Philippine Islands cannot
Tirso and Tessie. The old river which used to cut through succeed by inheritance to the property of Banco de las islas
the land of spouses Ursula and Urbito changed its course Filipinas. The ownership of the vault, together with the notes
through natural causes. To whom shall the treasure belong? and coins can now legally be considered as hidden treasure
Explain. (1995) because its ownership is no longer apparent. The contactor,
Adams, is not a trespasser and therefore entitled to one-half
SUGGESTED ANSWER: of the hidden treasure and Blas as owner of the property, is
The treasure was found in a property of public dominion, entitled the other hald (Art. 438, CC). Since the notes and
the new river bed. Since Tim did not have authority from the coins have historical value, the government may acquire
government and, therefore, was a trespasser, he is not them at their just price which in turn will be divided equally
entitled to the one-half share allotted to a finder of hidden between Adam and Blas (Art. 438, par 3, CC)
treasure. All of it will go to the State. In addition, under Art.
438 of the NCC in order that the finder be entitled to the 1/2 b. Assuming that either or both Adam and Blas are
share, the treasure must be found by chance, that is by sheer adjudged as owners, will the notes and coins be
luck. In this case, since Tim found the treasure not by chance deemed part of their absolute community or
but because he relentlessly searched for it, he is not entitled conjugal partnership of gains with their respective
to any share in the hidden treasure. spouses? (1995)

Marcelino, a treasure hunter as just a hobby, has found a SUGGESTED ANSWER:

map which appears to indicate the location of hidden
treasure. He has an idea of the land where the treasure

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 20
Yes, the hidden treasure will be part of the absolute permission of Jose, Vicente cultivated the said area. Ten
community or conjugal property, of the respective marriages years later, a big flood occurred in the river and transferred
(Arts. 91, 93 and 106, Family Code). 1000 square meters to the opposite bank, beside the land
Anselmo is the registered owner of a land and a house that of Agustin. The land transferred is now contested by Jose
his friend Boboy occupied for a nominal rental and on the and Agustin as riparian owners and by Vicente who claims
condition that Boboy would vacate the property on ownership by prescription. Who should prevail? Why?
demand. With Anselmo's knowledge, Boboy introduced (2001)
renovations consisting of an additional bedroom, a covered
veranda, and a concrete block fence, at his own expense. SUGGESTED ANSWER:
Subsequently, Anselmo needed the property as his Jose should prevail. The disputed area, which is an alluvion,
residence and thus asked Boboy to vacate and turn it over belongs by right of accretion to Jose, the riparian owner
to him. Boboy, despite an extension, failed to vacate the (Art. 457 CC). When, as given in the problem, the very
property, forcing Anselmo to send him a written demand to same area was"transferred" by flood waters to the
vacate. In his own written reply, Boboy signified that he was opposite bank, it became an avulsion and ownership thereof is
ready to leave but Anselmo must first reimburse him the retained by Jose who has two years to remove it (Art. 459, CC).
value of the improvements he introduced on the property Vicente's claim based on prescription is baseless since his
as he is a builder in good faith. Anselmo refused, insisting possession was by mere tolerance of Jose and, therefore, did
that Boboy cannot ask for reimbursement as he is a mere not adversely affect Jose's possession and ownership (Art.
lessee. Boboy responded by removing the improvements 537, CC). Inasmuch as his possession is merely that of a
and leaving the building in its original state. (1990, 2013) holder, he cannot acquire the disputed area by
a. Resolve Boboy's claim that as a builder in good prescription.
faith, he should be reimbursed the value of the
improvements he introduced. Andres is a riparian owner of a parcel of registered land. His
land, however, has gradually diminished in area due to the
SUGGESTED ANSWER: current of the river, while the registered land of Mario on
Boboy’s claim that he is a builder in good faith has no legal the opposite bank has gradually increased in area by 200-
basis. A builder in good faith is someone who occupies the square meters. (2003)
property in the concept of an owner. The provisions on a) Who has the better right over the 200-square
builder-planter-sower under the Civil Code cover cases in meter area that has been added to Mario’s
which the builder. planter and sewer believe themselves to registered land, Mario or Andres?
be owners of the land, or at least, to have a claim of title
thereto. As Boboy is a lessee of the property, even if he was SUGGESTED ANSWER:
paying nominal rental, Article 1678 Civil Code, is applicable. Mario has a better right over the 200 square meters
Under this provision, if the lessee makes, in good faith, useful increase in area by reason of accretion, applying Article 457 of
improvements which are suitable to the use for which the the New Civil Code, which provides that “to the owners of
lease is intended without altering the form or substance of lands adjoining the banks of rivers belong the accretion
the property leased, the lessor upon the termination of the which they gradually received from the effects of the current
lease shall pay the lessee one-half of the value of the of the waters”. Andres cannot claim that the increase in
improvements at that time. Should the lessor refuse to Mario’s land is his own, because such is an accretion and not
reimburse said amount, the lessee may remove the result of the sudden detachment of a known portion of his
improvements even though the principal thing may suffer land and its attachment to Mario’s land, a process called
damage thereby. “avulsion”. He can no longer claim ownership of the
portion of his registered land which was gradually and
naturally eroded due to the current of the river, because he
b. Can Boboy be held liable for damages for had lost it by operation of law. That portion of the land has
removing the improvements over Anselmo's become part of the public domain.
b) May a third person acquire said 200-square meter
SUGGESTED ANSWER: land by prescription?
No. Boboy cannot be held liable for damages. The lessor,
Anselmo, refuse to reimburse one-half of the value of the SUGGESTED ANSWER:
improvements, so the lessee, Boboy, may remove the same, Yes, a third party may acquire by prescription the 200
even though the principal thing may suffer damage thereby. square meters, increase in area, because it is not included in
If in removing the useful improvements Boboy caused more the Torrens Title of the riparian owner. Hence, this does
impairment on the property leased that is necessary, he will not involve the imprescriptibility conferred by Section47,
be liable for damages (Art. 1678, Civil Code). P.D. No. 1529. The fact that the riparian land is registered
does not automatically make the accretion thereto a
III. Ownership registered land.

Distinguish the following concepts: Occupation v. The properties of Jessica and Jenny, who are neighbors, lie
possession. (2007) along the banks of the Marikina River. At certain times of
the year, the river would swell and as the water recedes,
For many years, the Rio Grande river deposited soil along soil, rocks and other materials are deposited on Jessica's
its bank, beside the titled land of Jose. In time, such deposit and Jenny's properties. This pattern of the river swelling,
reached an area of one thousand square meters. With the receding and depositing soil and other materials being


deposited on the neighbors' properties have gone on for SUGGESTED ANSWER:
many years. Knowing this pattern, Jessica constructed a Cesar cannot ask for the cancellation of Don's title even if he
concrete barrier about 2 meters from her property line and is the rightful owner of the lot. In an action for ejectment,
extending towards the river, so that when the water the only issue involved is one of possession de facto, the
recedes, soil and other materials are trapped within this purpose of which is merely to protect the owner from any
barrier. After several years, the area between Jessica's physical encroachment from without. The title of the land or
property line to the concrete barrier was completely filled its ownership is not involved, for if a person is in actual
with soil, effectively increasing Jessica's property by 2 possession thereof, he is entitled to be maintained and
meters. Jenny's property, where no barrier was respected in it even against the owner himself. (Garcia v.
constructed, also increased by one meter along the side of Anas, G.R. No. L-20617, May 31, 1965) Since the case filed by
the river. (2008) Don against Cesar is an ejectment case, the latter cannot ask
a. Can Jessica and Jenny legally claim ownership over for the cancellation of Don's title. He has to file the proper
the additional 2 meters and one meter, action where the issue of ownership over the property can
respectively, of land deposited along their be raised.
VI. Co-ownership
Jenny can legally claim ownership of the lands by right of X was the owner of a 10,000 square meter property. X
accession (accretion) under Article 457 of the Civil married Y and out of their union. A, B and C were born.
Code. The lands came into being over the years through the After the death of Y, X married Z and they begot as children,
gradual deposition of soil and silt by the natural D, E and F. After the death of X, the children of the first and
action of the waters of the river. Jessica cannot claim the second marriages executed an extrajudicial partition of the
two meter-wide strip of land added to her land. Jessica aforestated property on May 1, 1970. D, E and F were given
constructed the cement barrier two meters in front a one thousand square meter portion of the property. They
of her property towards the river not to protect her land were minors at the time of the execution of the document.
from the destructive forces of the water but to trap the D was 17 years old, E was 14 and F was 12; and they were
alluvium. In order that the deposition must occur made to believe by A, B and C that unless they sign the
naturally without intervention of the document they will not get any share. Z was not present
riparian owner. (Republic v. CA, 132 SCRA 514 then. In January 1974, D, E and F filed an action in court
[1984]). to nullify the suit alleging they discovered the fraud only in
1973. (1990)
a) Can the minority of D, E and F be a basis to nullify
b. If Jessica's and Jenny's properties are registered, the partition? Explain your answer.
will the benefit of such registration extend to the
increased area of their properties? SUGGESTED ANSWER:
Yes, minority can be a basis to nullify the partition
SUGGESTED ANSWER: because D, E and F were not properly represented by their
No, the registration of Jessica’s and Jenny’s adjoining parents or guardians at the time they contracted the extra-
property does not automatically extend to the accretions. judicial partition.
They have to bring their lands under the operation of the
Torrens system of land registration following the procedure b) How about fraud? Explain your answer.
prescribed in P.D. No. 1529.
c. Assume the two properties are on a cliff adjoining In the case of fraud, when through insidious words or
the shore of Laguna Lake. Jessica and Jenny had a machinations of one party the other is induced to enter into
hotel built on the properties. They had the erath the contract without which he would not have agreed to,
and rocks excavated from the properties dumped the action still prosper because under Art, 1391 of the Civil
on the adjoining shore, giving rise to a new patch Code, in case of fraud, the action for annulment may be
of dry land. Can they validly lay claim to the patch brought within four years from the discovery of the fraud.
of land?
A, B and C are the co-owners in equal shares of a residential
SUGGESTED ANSWER: house and lot. During their co-ownership, the following acts
Jessica and Jenny cannot validly lay claim to the price of dry were respectively done by the co-owners:
land that resulted from the dumping of rocks and earth 1) A undertook the repair of the foundation of the house,
materials excavated from their properties because it is a then tilting to one side, to prevent the house
reclamation without authority, the land is part of the from collapsing.
lakeshore, if not the lakebed, which is inalienable land of the 2) B and C mortgaged the house and lot to secure a loan.
public domain. 3) B engaged a contractor to build a concrete fence all
around the lot.
V. Quieting of Title to or Interest in and Removal or 4) C built a beautiful grotto in the garden.
Prevention of Cloud over Title to or Interest in Real Property 5) A and C sold the land to X for a very good price.

In an ejectment case filed by Don against Cesar, can the a) Is A's sole decision to repair the foundation of the
latter ask for the cancellation of Don's title considering that house binding on B and C? May A require B and C
he (Cesar) is the rightful owner of the lot? Explain. (2005) to contribute their 2/3 share of the expense?

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 22
SUGGESTED ANSWER: Senen’s action will prosper. Article 494 of the New Civil
Yes. A's sole decision to repair the foundation is binding Code provides that “no prescription shall run in favor of a co-
upon B and C. B and C must contribute 2/3 of the expense. owner or co-heir against his co-owners or co-heirs so long
Each co-owner has the right to compel the other co-owners as he expressly or impliedly recognizes the co-ownership
to contribute to the expense of preservation of the thing nor notified Senen of his having repudiated the same.”
(the house) owned in common in proportion to their
respective interests. Anthony bought a piece of untitled agricultural land from
Bert. Bert, in turn, acquired the property by forging Carlo's
b) What is the legal effect of the mortgage contract signature in a deed of sale over the property. Carlo had
executed by B and C? Reasons. been in possession of the property for 8 years, declared it
SUGGESTED ANSWER: for tax purposes, and religiously paid all taxes due on the
The mortgage shall not bind the 1/3 right and interest of A property. Anthony is not aware of the defect in Bert's title,
and shall be deemed to cover only the rights and but has been in actual physical possession of the property
interests of B and C in the house and lot. The mortgage from the time he bought it from Bert, who had never been
shall be limited to the portion (2/3) which may be allotted to in possession of the property for one year. (2008)
B and C in the partition (Art. 493, Civil Code). a. Can Anthony acquire ownership of the property by
acquisitive prescription? How many more years
c) Is B's sole decision to build the fence binding does he have possess it to acquire ownership?
upon A and C? May B require A and C to contribute
their 2/3 share of the expense? Reasons. SUGGESTED ANSWER:
Yes, Anthony can acquire ownership of the property by
SUGGESTED ANSWER: ordinary prescription which requires just title and good faith
B's sole decision to build the concrete fence is not binding (Art. 1117, CC). There was just title because a deed of sale
upon A and C. Expenses to improve the thing owned in was issued in his favor even though it was forged, which in
common must be decided upon by a majority of the co- fact he was not aware of. He needs to possess the land in
owners who represent the controlling interest (Arts. 489 and good faith and in the concept of owner for a total of ten years
492. Civil Code). in order to acquire ownership. Since Anthony possessed the
land for only one year, he has not completed the ten-year
d) Is C's sole decision to build the grotto binding period. Even if Anthony tacks the 8-year period of possession
upon A and B? May C require A and B to contribute by Carlo who in the deed of sale is supposed to be his grantor
their 2/3 share of the expense? Reasons. or predecessor in interest (Art. 1138[I], CC), the period is still
short of ten years.
C's sole decision to build the grotto is not binding upon A and b. If Carlo is able to legally recover his property, can
B who cannot be required to contribute to the expenses he require Anthony to account for all the fruits he
for the embellishment of the thing owned in common if has harvested from the property while in
not decided upon by the majority of the co-owners who possession?
represent the controlling interest (Arts. 489 and 492, Civil
Anthony is a possessor in good faith, Anthony cannot be
e) What are the legal effects of the contract of sale made to account for the fruits he gathered before he was
executed by A. C and X? Reasons. harvested with summons. A possessor in good faith is
entitled to the fruits received before the possession was
SUGGESTED ANSWER: legally interrupted by the service of summons (Art. 554, CC).
The sale to X shall not bind the 1/3 share of B and shall be After Anthony was served with summons, he became a
deemed to cover only the 2/3 share of A and C in the land possessor in bad faith and a builder, planter, sower in bad
(Art. 493, Civil Code). B shall have the right to redeem the 2/3 faith. He can also be made to account for the fuits but he
share sold to X by A and C since X is a third person (Art. 1620, may deduct expenses or production gathering and
Civil Code). preservation of the fruits (Art. 443, CC)

Senen and Peter are brothers. Senen migrated to Canada c. If there are standing crops on the property when
early while still a teenager. Peter stayed in Bulacan to take Carlo recovers possession, can Carlo appropriate
care of their widowed mother and continued to work on the them?
Family farm even after her death. Returning to the country SUGGESTED ANSWER:
some thirty years after he had left, Senen seeks a partition of The value of the standing crops must be prorated depending
the farm to get his share as the only co-heir of Peter. Peter upon the period of possession and the period of growing and
interposes his opposition, contending that acquisitive producing the fruits. Anthony is entitled to a part of the net
prescription has already set in and that estoppel lies to bar harvest and a part of expenses of cultivation in proportion to
the action for partition, citing his continuous possession of his period of possession. Carlo may appropriate the
the property for at least 10 years, for almost 30 years in respective parts subject to prorating the respective parts
fact. It is undisputed that Peter has never openly claimed subject to prorating the respective periods of possession.
sole ownership of the property. If he ever had the intention However, Carlos may allow Anthony to gather these growing
to do so, Senen was completely ignorant of it. Will Senen’s fruits as an indemnity for the expenses of cultivation. If
action prosper? Explain. (2000, 2002)


Anthony refuses to accept the concession, he shall lose the mother, Janine. Subsequently, she sold the property to
right to indemnity under Art. 443. (Art. 545, part. 3, CC) George. The latter required Manny to sign a prepared Lease
Contract so that he and his family could continue occupying
Ambrosio died, leaving his three daughters, Belen, Rosario the unit. Manny refused to sign the contract alleging that his
and Sylvia a hacienda which was mortgaged to the parents allowed him and his family to continue occupying
Philippine National Bank due to the failure of the daughters the premises. If you were George's counsel, what legal steps
to pay the bank, the latter foreclosed the mortgage and the will you take? Explain. (2006)
hacienda was sold to it as the highest bidder. Six months
later, Sylvia won the grand prize at the lotto and used part SUGGESTED ANSWER:
of it to redeem the hacienda from the bank. Thereafter, she If I were George's counsel, I would first demand that
took possession of the hacienda and refused to share its Manny vacate the apartment. If Manny refuses, I will file an
fruits with her sisters, contending that it was owned ejectment suit. When Manny was allowed by his parents to
exclusively by her, having bought it from the bank with her occupy the premises, without compensation, the contract of
own money. Is she correct or not? (1993, 2000) commodatum was created. Upon the death of the father,
the contract was extinguished as it is a purely personal
SUGGESTED ANSWER: contract. As the new owner of the apartment George is
Sylvia is not correct. The 3 daughters are the co-owners of entitled to exercise his right of possession over the same.
the hacienda being the only heirs of Ambrosio. When the
property was foreclosed, the right of redemption belongs Using a falsified manager's check, Justine, as the buyer, was
also to the 3 daughters. When Sylvia redeemed the entire able to take delivery of a second hand car which she had
property before the lapse of the redemption period, she also just bought from United Car Sales Inc. The sale was
exercised the right of redemption of her co-owners on their registered with the Land Transportation Office. A week
behalf. As such she is holding the shares of her two sisters in later, the seller learned that the check had been dishonored,
the property, and all the fruits corresponding thereto, in trust but by that time, Justine was nowhere to be seen. It turned
for them. Redemption by one co-owner inures to the benefit out that Justine had sold the car to Jerico, the present
of all (Adille v. CA.157 SCRA 455). Sylvia, however, is entitled possessor who knew nothing about the falsified check. In a
to be reimbursed the shares of her two sisters in the suit by United Car Sales, Inc. against Jerico for recovery of
redemption price. the car, plaintiff alleges it had been unlawfully deprived of
its property through fraud and should, consequently, be
Antonio, Bart, and Carlos are brothers. They purchased allowed to recover it without having to reimburse the
from their parents specific portions of a parcel of land as defendant for the price the latter had paid. Should the suit
evidenced by three separates deeds of sale, each deed prosper? (1998)
referring to a particular lot in meter and bounds. When the
deeds were presented for registration, the Register of Deeds SUGGESTED ANSWER:
could not issue separate certificates of Title had to be The suit should prosper as to the recovery of the car.
issued, therefore, in the names of three brothers as co- However, since Jerico was not guilty of any fraud and appears
owners of the entire property. The situation has not to be an innocent purchaser for value, he should be
changed up to now, but each of the brothers has been reimbursed for the price he paid. This is without prejudice to
receiving rentals exclusively from the lot actually purchased United Car Sales, Inc. right of action against Justine. As
by him. Antonio sells his lot to a third person, with notice between two innocent parties, the party causing the injury
to his brothers. To enable the buyer to secure a new title in should suffer the loss. Therefore, United Car Sales, Inc.
his name, the deed of sale was made to refer to undivided should suffer the loss.
interest in the property of the seller (Antonio), with the
metes and bounds of the lot sold being stated. Bart and VIII. Usufruct
Carlos reacted by signifying their exercise of their right of
redemption as co owners. Antonio in his behalf and in On 1 January 1980, Minerva, the owner of a building,
behalf of his buyer, contends that they are no longer co- granted Petronila a usufruct over the property until 01 June
owners, although the title covering the property has 1998 when Manuel, a son of Petronila, would have reached
remained in their names as such. May Bart and Carlos still his 30th birthday. Manuel, however, died on 1 June 1990
redeem the lot sold by Antonio? Explain. (2002) when he was only 26 years old. Minerva notified Petronila
that the usufruct had been extinguished by the death of
SUGGESTED ANSWER: Manuel and demanded that the latter vacate the premises
No, they may not redeem because there was no co- and deliver the same to the former. Petronila refused to
ownership among Antonio, Bart, and Carlos to start with. vacate the place on the ground that the usufruct in her favor
Their parents already partitioned the land in selling separate would expire only on 1 June 1998 when Manuel would
portions to them (Si v. Court of Appeals). have reached his 30th birthday and that the death of
Manuel before his 30th birthday did not extinguish the
VII. Possession usufruct. Whose contention should be accepted? (1997)

Alberto and Janine migrated to the United States of SUGGESTED ANSWER:

America, leaving behind their 4 children, one of whom is Petronila's contention is correct. Under Article 606 of the
Manny. They own a duplex apartment and allowed Manny Civil Code, a usufruct granted for the time that may elapse
to live in one of the units. While in the United States, before a third person reaches a certain age shall subsist for
Alberto died. His widow and all his children executed an the number of years specified even if the third person
Extrajudicial Settlement of Alberto's estate wherein the 2- should die unless there is an express stipulation in the
door apartment was assigned by all the children to their contract that states otherwise. In the case at bar, there is no

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 24
express stipulation that the consideration for the usufruct is receive the waters descending from the higher estate. Is
the existence of Petronila's son. Thus, the general rule and Hernando correct? (2002)
not the exception should apply in this case.
IX. Easements Hernando is wrong. It is true that Lauro’s land is burdened
with the natural easement to accept or receive the water
What is easement? Distinguish easement from usufruct. Can which naturally and without interruption of man descends
there be (a) an easement over a usufruct? (b) a usufruct from a higher estate to a lower estate. However, Hernando
over an easement? (c) an easement over another has constructed a waste disposal lagoon for his piggery and it
easement? Explain. (1995) is this waste water that flows downward to Lauro’s land.
Hernando has, thus, interrupted the flow of water and has
Don was the owner of an agricultural land with no access to created and is maintaining a nuisance. Under Act. 697 NCC,
a public road. He had been passing through the land of abatement of a nuisance does not preclude recovery of
Ernie with the latter's acquiescence for over 20 years. damages by Lauro even for the past existence of a nuisance.
Subsequently, Don subdivided his property into 20 The claim for damages may also be premised in Art. 2191 (4)
residential lots and sold them to different persons. Ernie NCC.
blocked the pathway and refused to let the buyers pass
through his land. (2005) Distinguish between: Continuous and discontinuous
easements; Apparent and non-apparent easements; and
a) Did Don acquire an easement of right of way? Positive and negative easements. (1998)
Tomas Encarnacion's 3,000 square meter parcel of land,
SUGGESTED ANSWER: where he has a plant nursery, is located just behind Aniceta
No, Don did not acquire an easement of right of way. An Magsino's two hectare parcel land. To enable Tomas to
easement of right of way is discontinuous in nature — it is have access to the highway, Aniceta agreed to grant him a
exercised only if a man passes over somebody's land. Under road right of way a meter wide through which he could
Article 622 of the Civil Code, discontinuous easements, pass. Through the years Tomas' business flourished which
whether apparent or not, may only be acquired by virtue of a enabled him to buy another portion which enlarged the area
title. The Supreme Court in Abellana, Sr. v. Court of of his plant nursery. But he was still landlocked. He could
Appeals ruled that an easement of right of way being not bring in and out of his plant nursery a jeep or delivery
discontinuous in nature is not acquirable by prescription. panel much less a truck that he needed to transport his
Further, possession of the easement by Don is only seedlings. He now asked Aniceta to grant him a wider
permissive, tolerated or with the acquiescence of Ernie. It is portion of her property, the price of which he was willing to
settled in the case of Cuaycong v. Benedicto that a permissive pay, to enable him to construct a road to have access to his
use of a road over the land of another, no matter how long plant nursery. Aniceta refused claiming that she had already
continued, will not create an easement of way by allowed him a previous road right of way. Is Tomas entitled
prescription. to the easement he now demands from Aniceta? (1993)

b) What are the rights of the lot buyers, if any? SUGGESTED ANSWER:
Explain. Art. 651 of the Civil Code provides that the width of the
easement must be sufficient to meet the needs of the
SUGGESTED ANSWER: dominant estate, and may accordingly change from time to
Prior to the grant of an easement, the buyers of the time. It is the need of the dominant estate which determines
dominant estate have no other right than to compel grant of the width of the passage. These needs may vary from time
easement of right of way. Since the properties of the buyers to time. As Tomas' business grows, the need for use of
are surrounded by other immovables and has no adequate modern conveyances requires widening of the easement.
outlet to a public highway and the isolation is not due to
their acts, buyers may demand an easement of a right of The coconut farm of Federico is surrounded by the lands of
way provided proper indemnity is paid and the right of Romulo. Federico seeks a right of way through a portion of
way demanded is the shortest and least prejudicial to the land of Romulo to bring his coconut products to the
Ernie. market. He has chosen a point where he will pass through a
housing project of Romulo. The latter wants him to pass
Lauro owns an agricultural land planted mostly with fruit another way which is one kilometer longer. Who should
trees. Hernando owns an adjacent land devoted to his prevail? (2000)
piggery business, which is two (2) meters higher in
elevation. Although Hernando has constructed a waste SUGGESTED ANSWER:
disposal lagoon for his piggery, it is inadequate to contain Romulo will prevail. Under Article 650 of the New Civil
the waste water containing pig manure, and it often Code, the easement of right of way shall be established at
overflows and inundates Lauro’s plantation. This has the point least prejudicial to the servient estate and where
increased the acidity of the soil in the plantation, causing the the distance from the dominant estate to a public highway is
trees to wither and die. Lauro sues for damages caused to the shortest. In case of conflict, the criterion of least prejudice
his plantation. Hernando invokes his right to the benefit of a prevails over the criterion of shortest distance. Since the
natural easement in favor of his higher estate, which route chosen by Federico will prejudice the housing project
imposes upon the lower estate of Lauro the obligation to of Romulo, Romulo has the right to demand that Federico pass
another way even though it will be longer.


concluded that pathway B is the longer route and will need
Emma bought a parcel of land from Equitable-PCI Bank, improvements and repairs, but will not significantly affect
which acquired the same from Felisa, the original owner. the use of Brando's property. On the other hand, pathway
Thereafter, Emma discovered that Felisa had granted a right A that had long been in place, is the shorter route but would
of way over the land in favor of the land of Georgina, significantly affect the use of Brando's property. In light of
which had no outlet to a public highway, but the easement the engineer's findings and the circumstances of the case,
was not annotated when the servient estate was resolve the parties' right of way dispute. (1996, 2013)
registered under the Torrens system. Emma then filed a
complaint for cancellation of the right of way, on the SUGGESTED ANSWER:
ground that it had been extinguished by such failure to Andres is not entitled to the easement of right of way for
annotate. How would you decide the controversy? (2001) Pathway A. Pathway B must be used.
The owner of a dominant estate may validly obtain a
SUGGESTED ANSWER: compulsory right of way only after he has established the
The complaint for cancellation of easement of right of way existence of four requisites, to wit:
must fail. The failure to annotate the easement upon the (1) the (dominant) estate is surrounded by other immovables
title of the servient estate is not among the grounds for and is without adequate outlet to a public highway;
extinguishing an easement under Art. 631 of the Civil Code. (2) after payment of the proper indemnity;
Under Article 617, easements are inseparable from the (3) the isolation was not due to the proprietor's own acts; and
estate to which they actively or passively belong. Once it (4) the right of way claimed is at a point least prejudicial to
attaches, it can only be extinguished under Art. 631, and the servient estate, and insofar as consistent with this rule,
they exist even if they are not stated or annotated as an where the distance from the dominant estate to the public
encumbrance on the Torrens title of the servient estate. highway may be the shortest (Art. 650, Civil Code).
However, the Supreme Court has consistently ruled that in
David is the owner of the subdivision in Sta. Rosa, Laguna, case both criteria cannot be complied with, the right of way
without an access to the highway. When he applied for a shall be established at the point least prejudicial to the
license to establish the subdivision, David represented that servient estate.
he will purchase a rice field located between his land and the The first and fourth requisites are not complied with. First,
highway, and develop it into an access road. But when the there is another available outlet to the national highway
license was already granted, he did not bother to buy the (Pathway B). Second, the right of way obtained (Pathway A)
rice field, which remains unutilized until the present. is not the least prejudicial to Brando's property as evidenced
Instead, he chose to connect his subdivision with the by the reports of the geodetic and civil engineer.
neighboring subdivision of Nestor, which has an access to When there is already an existing adequate outlet from the
the highway. Nestor allowed him to do this, pending dominant estate to a public highway, even if the said outlet,
negotiations on the compensation to be paid. When they for one reason or another, be inconvenient, the need to open
failed to arrive at an agreement, Nestor built a wall across up another servitude is entirely unjustified (Costabella Corp.
the road connecting with David's subdivision. David filed a v. CA, G.R. No. 80511, January 25, 1991). The rule that the
complaint in court, for the establishment of an easement of easement of right of way shall be established at the point
right of way through the subdivision of Nestor which he least prejudicial to the servient estate is controlling (Quimen
claims to be the most adequate and practical outlet to the v. Quimen), (CA, G.R. No. 112331, May 29, 1996).
highway. Is David entitled to a right of way in this case?
Why or why not? X. Nuisance (2005, 2006)

SUGGESTED ANSWER: A drug lord and his family reside in a small bungalow where
No, David is not entitled to the right of way being claimed. The they sell shabu and other prohibited drugs. When the police
isolation of his subdivision was due to his own act or found the illegal trade, they immediately demolished the
omission because he did not develop into an access road the house because according to them, it was a nuisance per se
rice field which he was supposed to purchase according to that should be abated. Can this demolition be sustained?
his own representation when he applied for a license to Explain. (2006)
establish the subdivision.
In 2005, Andres built a residential house on a lot whose only No, the demolition cannot be sustained. The house is not a
access to the national highway was a pathway crossing nuisance per se or at law as it is not an act, occupation, or
Brando's property. Andres and others have been using this structure which is a nuisance at all times and under any
pathway (pathway A) since 1980. In 2006, Brand0 fenced off circumstances, regardless of location or surroundings. A
his property, thereby blocking Andres' access to the nuisance per se is a nuisance in and of itself, without regard
national highway. Andres demanded that part of the fence to circumstances.
be removed to maintain his old access route to the highway
(pathway A), but Brando refused, claiming that there was XI. Modes of Acquiring Ownership
another available pathway (pathway B) for ingress and A. Donation
egress to the highway. Andres countered that pathway B
has defects, is circuitous, and is extremely inconvenient to May a person sell something that does not belong to him?
use. To settle their dispute, Andres and Brando hired Explain. May a person donate something that does not
Damian, a geodetic and civil engineer, to survey and belong to him? Explain. (2003)
examine the two pathways and the surrounding areas, and
to determine the shortest and the least prejudicial way Sometime in 1955, Tomas donated a parcel of land to his
through the servient estates. After the survey, the engineer stepdaughter Irene, subject to the condition that she may
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 26
not sell, transfer or cede the same for twenty years. Shortly they could validly have disposed of the land in favor of
thereafter, he died. In 1965, because she needed money for Ferdinand.
medical expenses, Irene sold the land to Conrado. The
following year, Irene died, leaving as her sole heir a son by Distinguish the following concepts: Illegal and impossible
the name of Armando. When Armando learned that the conditions in a simple donation v. illegal and impossible
land which he expected to inherit had been sold by Irene to conditions in an onerous donation. (1997, 2007)
Conrado, he filed an action against the latter for annulment
of the sale, on the ground that it violated the restriction Ernesto donated in a public instrument a parcel of land to
imposed by Tomas. Conrado filed a motion to dismiss, on Demetrio, who accepted it in the same document. It is there
the ground that Armando did not have the legal capacity to declared that the donation shall take effect immediately,
sue. If you were the Judge, how will you rule on this motion with the donee having the right to take possession of the
to dismiss? Explain. (1996) land and receive its fruits but not to dispose of the land
while Ernesto is alive as well as for ten years following his
SUGGESTED ANSWER: death. Moreover, Ernesto also reserved in the same deed his
As judge, I will grant the motion to dismiss. Compliance right to sell the property should he decide to dispose of it at
with a condition imposed by a donor gives rise to an action to any time - a right which he did not exercise at all. After his
revoke the donation under Art. 764, NCC. However, the right death, Ernesto's heirs seasonably brought an action to
of action belongs to the donor. Is transmissible to his heirs, recover the property, alleging that the donation was void as
and may be exercised against the donee's heirs. Since it did not comply with the formalities of a will. Will the suit
Armando is an heir of the donee, not of the donor, he has no prosper? (1990, 1998)
legal capacity to sue for revocation of the donation.
Although he is not seeking such revocation but an SUGGESTED ANSWER:
annulment of the sale which his mother, the donee, had Yes, the suit will prosper as the donation did not comply
executed in violation of the condition imposed by the with the formalities of a will. In this instance, the fact that
donor, an action for annulment of a contract may be the donor did not intend to transfer ownership or
brought only by those who are principally or subsidiarily possession of the donated property to the donee until the
obliged thereby (Art. 1397, NCC). As an exception to the donor's death, would result in a donation mortis causa and in
rule, it has been held that a person not so obliged may this kind of disposition, the formalities of a will should be
nevertheless ask for annulment if he is prejudiced in his complied with, otherwise, the donation is void. In this
rights regarding one of the contracting parties (DBP us. CA. 96 Instance, donation mortis causa embodied only in a public
SCRA 342 and other cases) and can show the detriment instrument without the formalities of a will could not have
which would result to him from the contract in which he transferred ownership of disputed property to another.
had no intervention, (Teves vs. PHHC, 23 SCRA 1141).
Such detriment or prejudice cannot be shown by Armando. As On January 21, 1986, A executed a deed of donation inter
a forced heir, Armando's interest in the property was, at best, vivos of a parcel of land to Dr. B who had earlier
a mere expectancy. The sale of the land by his mother did not constructed thereon a building in which researches on the
impair any vested right. The fact remains that the dreaded disease AIDS were being conducted. The deed,
premature sale made by his mother (premature because only acknowledged before a notary public, was handed over by A
half of the period of the ban had elapsed) was not voidable to Dr. B who received it. A few days after, A flew to Davao
at all, none of the vices of consent under Art. 139 of the City. Unfortunately, the airplane he was riding crashed on
NCC being present. Hence, the motion to dismiss should be landing killing him. Two days after the unfortunate accident.
granted. Dr. B, upon advice of a lawyer, executed a deed
acknowledged before a notary public accepting the
Spouses Michael and Linda donated a 3-hectare residential donation. Is the donation effective? Explain your answer.
land to the City of Baguio on the condition that the city (1993, 1998)
government would build thereon a public park with a
boxing arena, the construction of which shall commence SUGGESTED ANSWER:
within six (6) months from the date the parties ratify the No, the donation is not effective. The law requires that the
donation. The donee accepted the donation and the title to separate acceptance of the donee of an immovable must be
the property was transferred in its name. Five years elapsed done in a public document during the lifetime of the donor
but the public park with the boxing arena was never started. (Art. 746 & 749, Civil Code) In this case, B executed the
Considering the failure of the donee to comply with the deed of acceptance before a notary public after the donor
condition of the donation, the donor-spouses sold the had already died.
property to Ferdinand who then sued to recover the land
from the government. Will the suit prosper? (1991) Anastacia purchased a house and lot on installments at a
housing project in Quezon City. Subsequently, she was
SUGGESTED ANSWER: employed in California and a year later, she executed a deed
Ferdinand has no right to recover the land. It is true that the of donation, duly authenticated by the Philippine Consulate
donation was revocable because of breach of the in Los Angeles, California, donating the house and lot to
conditions. But until and unless the donation was revoked, it her friend Amanda. The latter brought the deed of donation
remained valid. Hence, Spouses Michael and Linda had no right to the owner of the project and discovered that Anastacia
to sell the land to Ferdinand. One cannot give what he does left unpaid installments and real estate taxes. Amanda paid
not have. What the donors should have done first was to have these so that the donation in her favor can be registered in
the donation annulled or revoked. And after that was done, the project owner's office. Two months later, Anastacia
died, leaving her mother Rosa as her sole heir. Rosa filed an


action to annul the donation on the ground that Amanda 11550, located in San Fernando, Pampanga. This
did not give her consent in the deed of donation or in a donation shall take effect upon my death."
separate public instrument. Amanda replied that the
donation was an onerous one because she had to pay The deed also contained Jennifer's signed acceptance, and
unpaid installments and taxes; hence her acceptance may be an attached notarized declaration by Josefa and Jennifer
implied. Who is correct? that the land will remain in Josefa's possession and cannot
be alienated, encumbered, sold or disposed of while Josefa
SUGGESTED ANSWER: is still alive. Advise Jennifer on whether the deed is a
Rosa is correct because the donation is void. The property donation inter vivos or mortis causa and explain the reasons
donated was an immovable. For such donation to be valid, supporting your advice. (2013)
Article 749 of the New Civil Code requires both the donation
and the acceptance to be in a public instrument. There being
no showing that Amanda's acceptance was made in a public
instrument, the donation is void. The contention that the
I. Sources of Obligations
donation is onerous and, therefore, need not comply with
What are obligations without an agreement"? Give five
Article 749 for validity is without merit. The donation is not
examples of situations giving rise to this type of obligations?
onerous because it did not impose on Amanda the obligation
to pay the balance on the purchase price or the arrears in real
II. Kinds of Civil Obligations
estate taxes. Amanda took it upon herself to pay those
amounts voluntarily. For a donation to be onerous, the
Pedro promised to give his grandson a car if the latter will
burden must be imposed by the donor on the donee. In the
pass the bar examinations. When his grandson passed the
problem, there is no such burden imposed by the donor on
said examinations, Pedro refused to give the car on the
the donee. The donation not being onerous, it must comply
ground that the condition was a purely potestative one. Is
with the formalities of Article 749.
he correct or not? (2000)
In 1950, Dr. Alba donated a parcel of land to Central
University on condition that the latter must establish a
No, he is not correct. First of all, the condition is not purely
medical college on the land to be named after him. In the
potestative, because it does not depend on the sole will of
year 2000, the heirs of Dr. Alba filed an action to annul the
one of the parties. Secondly, even if it were, it would be
donation and for the reconveyance of the property donated
valid because it depends on the sole will of the creditor (the
to them for the failure, after 50 years, of the University to
donee) and not of the debtor (the donor).
established on the property a medical school named after
their father. The University opposed the action on the
ground of prescription and also because it had not used the
property for some purpose other than that stated in the
donation. Should the opposition of the University to the
action of Dr. Alba’s heirs be sustained? Explain. (2003, 2006)
In two separate documents signed by him, Juan Valentino
"obligated" himself each to Maria and to Perla, thus -'To
The donation may be revoked. The non-established of the
Maria, my true love, I obligate myself to give you my one
medical college on the donated property was a resolutory
and only horse when I feel like It."
condition imposed on the donation by the donor. Although the
- and -
Deed of Donation did not fix the time for the
'To Perla, my true sweetheart, I obligate myself to pay you
established of the medical college, the failure of the donee
the P500.00 I owe you when I feel like it."
to establish the medical college after fifty (50) years from
Months passed but Juan never bothered to make good his
the making of the donation should be considered as
promises. Maria and Perla came to consult you on whether
occurrence of the resolutory condition, and the donation
or not they could recover on the basis of the foregoing
may now be revoked. While the general rule is that in case
settings. What would your legal advice be? (1997)
the period is not fixed in the agreement of the parties, the
period must be fixed first by the court before the obligation
may be demanded, the period of fifty (50) years was more
I would advise Maria not to bother running after Juan for
than enough time for the donee to comply with the
the latter to make good his promise. This is because a
condition. Hence, in this case, there is no more need for the
promise is not an actionable wrong that allows a party to
court to fix the period because such procedure with the
recover especially when she has not suffered damages
condition. (Central Philippine University v. CA. 246 SCRA
resulting from such promise. A promise does not create an
obligation on the part of Juan because it is not something
which arises from a contract, law, quasi-contracts or quasi-
Josefa executed a deed of donation covering a one-hectare delicts (Art, 1157)]. Under Art. 1182, Juan's promise to Maria
rice land in favor of her daughter, Jennifer. The deed is void because a conditional obligation depends upon the sole
specifically provides that: will of the obligor. As regards Perla, the document is an
express acknowledgment of a debt, and the promise to pay
"For and in consideration of he love and service what he owes her when he feels like it is equivalent to a
Jennifer has shown and given to me, I hereby promise to pay when his means permits him to do so, and is
freely, voluntarily and irrevocably donate to her deemed to be one with an indefinite period under Art. 1180.
my one-hectare rice land covered by TCT No. Hence the amount is recoverable after Perla asks the court
to set the period as provided by Art. 1197, par. 2.
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 28
amount of the unpaid telephone bills, but the latter is willing
In 1997, Manuel bound himself to sell Eva a house and lot to pay only one fourth of it. Who is correct? Why? (2001)
which is being rented by another person, if Eva passes the
1998 bar examinations. Luckily for Eva, she passed said SUGGESTED ANSWER:
examinations. (1999) The fourth student is correct. His liability is only joint,
a) Suppose Manuel had sold the same house and lot hence, pro rata. There is solidary liability only when the
to another before Eva passed the 1998 bar obligation expressly so states or when the law or nature of
examinations, is such sale valid? Why? the obligation requires solidarity (Art. 1207, CC). The
contract of lease in the problem does not, in any way,
SUGGESTED ANSWER: stipulate solidarity.
Yes, the sale to the other person is valid. However, the
buyer acquired the property subject to a resolutory
condition of Eva passing the 1998 Bar Examinations. Joey, Jovy and Jojo are solidary debtors under a loan
Hence, upon Eva's passing the Bar, the rights of the other obligation of P300,000.00 which has fallen due. The creditor
buyer terminated and Eva acquired ownership of the has, however, condoned Jojo's entire share in the debt.
property. Since Jovy has become insolvent, the creditor makes a
demand on Joey to pay the debt. (1998)
b) Assuming that it is Eva who is entitled to buy said a) How much, if any, may Joey be compelled to
house and lot, is she entitled to the rentals pay?
collected by Manuel before she passed the 1998
bar examinations? Why? SUGGESTED ANSWER:
Joey can be compelled to pay only the remaining balance of
P200.000, in view of the remission of Jojo's share by the
creditor. (Art. 1219, Civil Code)
No, she is not entitled to the rentals collected by Manuel b) To what extent, if at all, can Jojo be compelled by
because at the time they accrued and were collected, Eva Joey to contribute to such payment?
was not yet the owner of the property.
In a deed of sale of a realty, it was stipulated that the buyer Jojo can be compelled by Joey to contribute P50.000 Art. 1217.
would construct a commercial building on the lot while the par. 3, Civil Code provides. "When one of the solidary debtors
seller would construct a private passageway bordering the cannot, because of his insolvency, reimburse his share to
lot. The building was eventually finished but the seller failed the debtor paying the obligation, such share shall be borne
to complete the passageway as some of the squatters, who by all his co-debtors, in proportion to the debt of each." Since
were already known to be there at the time they entered into the insolvent debtor's share which Joey paid was P100,000,
the contract, refused to vacate the premises. In fact, prior to and there are only two remaining debtors - namely Joey
its execution, the seller filed ejectment cases against the and Jojo - these two shall share equally the burden of
squatters. The buyer now sues the seller for specific reimbursement. Jojo may thus be compelled by Joey to
performance with damages. The defense is that the contribute P50.000.00.
obligation to construct the passageway should be with a
period which, incidentally, had not been fixed by them, In June 1988, X obtained a loan from A and executed with Y
hence, the need for fixing a judicial period. Will the action for as solidary co-maker a promissory note in favor of A for the
specific performance of the buyer against the seller prosper? sum of P200,000.00. The loan was payable at
(1991) P20,000.00 with interest monthly within the first week of
each month beginning July 1988 until maturity in April
SUGGESTED ANSWER: 1989. To secure the payment of the loan, X put up as
No. the action for specific performance filed by the buyer is security a chattel mortgage on his car, a Toyota Corolla
premature under Art. 1197 of the Civil Code. If a period has not sedan. Because of failure of X and Y to pay the principal
been fixed although contemplated by the parties, the amount of the loan, the car was extrajudicially foreclosed. A
parties themselves should fix that period, failing in which, acquired the car at A's highest bid of P120,000.00 during the
the Court maybe asked to fix it taking into consideration the auction sale. After several fruitless letters of demand
probable contemplation of the parties. Before the period is against X and Y, A sued Y alone for the recovery of
fixed, an action for specific performance is premature. P80.000.00 constituting the deficiency. Y resisted the suit
raising the following defenses: (1992)
VIII. Joint and Solidary Obligation a) That Y should not be liable at all because X was
not sued together with Y.
Four foreign medical students rented the apartment of
Thelma for a period of one year. After one semester, three SUGGESTED ANSWER:
of them returned to their home country and the fourth This first defense of Y is untenable. Y is still liable as solidary
transferred to a boarding house. Thelma discovered that debtor. The creditor may proceed against any one of the
they left unpaid telephone bills in the total amount of solidary debtors. The demand against one does not
P80,000.00. The lease contract provided that the lessees preclude further demand against the others so long as the
shall pay for the telephone services in the leased premises. debt is not fully paid.
Thelma demanded that the fourth student pay the entire


b) That the obligation has been paid completely by share and of all the other co-debtors. Hence, A cannot avail of
A's acquisition of the car through "dacion en the defense of D’s insolvency.
pago" or payment by cession.
(d) The extension of six (6) months given by X to E may
SUGGESTED ANSWER: be availed of by A as a partial defense but only for the share
The second defense of Y is untenable. Y is still liable. The of E, there is no novation of the obligation but only an act of
chattel mortgage is only given as a security and not as liberality granted to E alone.
payment for the debt in case of failure to pay. Y as a
solidary co-maker is not relieved of further liability on the IX. Extinguishment of Obligations
promissory note as a result of the foreclosure of the chattel
mortgage. The sugar cane planters of Batangas entered into a long-
term milling contract with the Central Azucarera de Don
c) That Y should not be held liable for the deficiency Pedro Inc. Ten years later, the Central assigned its rights to
of P80,000.00 because he was not a co-mortgagor the said milling contract to a Taiwanese group which would
in the chattel mortgage of the car which take over the operations of the sugar mill. The planters filed
contract was executed by X alone as owner and an action to annul the said assignment on the ground that
mortgagor. the Taiwanese group was not registered with the Board of
Investments. Will the action prosper or not? Explain briefly.
The third defense of Y is untenable. Y is a surety of X and the
extrajudicial demand against the principal debtor is not SUGGESTED ANSWER:
inconsistent with a judicial demand against the surety. A The action will prosper not on the ground invoked but on the
suretyship may co-exist with a mortgage. ground that the farmers have not given their consent to the
assignment. The milling contract imposes reciprocal
d) That assuming that Y is liable, he should only pay obligations on the parties. The sugar central has the
the proportionate sum of P40,000.00. Decide each obligation to mill the sugar cane of the farmers while the
defense with reasons. latter have the obligation to deliver their sugar cane to the
sugar central. As to the obligation to mill the sugar cane, the
SUGGESTED ANSWER: sugar central is a debtor of the farmers. In assigning its
The fourth defense of Y is untenable. Y is liable for the entire rights under the contract, the sugar central will also transfer
prestation since Y incurred a solidary obligation with X.(Arts. to the Taiwanese its obligation to mill the sugar cane of the
1207, 1216. 1252 and 2047 Civil Code; Bicol Savings and Loan farmers. This will amount to a novation of the contract by
Associates vs. Guinhawa 188 SCRA 642) substituting the debtor with a third party. Under Article
1293 of the Civil Code, such substitution cannot take effect
A,B,C,D, and E made themselves solidarity indebted to X for without the consent of the creditor. The formers, who are
the amount of P50,000.00. When X demanded payment creditors as far as the obligation to mill their sugar cane is
from A, the latter refused to pay on the following grounds: concerned, may annul such assignment for not having given
(2003) their consent thereto.
a) B is only 16 years old.
b) C has already been condoned by X TX filed a suit for ejectment against BD for non-payment of
c) D is insolvent. condominium rentals amounting to P150,000. During the
d) E was given by X an extension of 6 months without pendency of the case, BD offered and TX accepted the full
the consent of the other four co-debtors. amount due as rentals from BD, who then filed a motion to
State the effect of each of the above defenses put up by A dismiss the ejectment suit on the ground that the action is
on his obligation to pay X, if such defenses are found to be already extinguished. Is BD’s contention correct? Why or
true. why not? Reason. (2004)


(a) A may avail the minority of B as a defense, but BD's contention is not correct. TX can still maintain the suit
only for B’s share of P 10,000.00. A solidary debtor may for ejectment. The acceptance by the lessor of the
avail himself of any defense which personally belongs to a payment by the lessee of the rentals in arrears even during
solidary co-debtor, but only as to the share of that co- the pendency of the ejectment case does not constitute a
debtor. waiver or abandonment of the ejectment case. (Spouses
Clutario v. CA, 216 SCRA 341 [1992]).
(b) A may avail of the condonation by X of C’s share of Define compensation as a mode of extinguishing an
P 10, 000.00. A solidary debtor may, in actions filed by the obligation, and distinguish it from payment. (1998)
creditor, avail himself of all defenses which are derived from
the nature of the obligation and of those which are Stockton is a stockholder of Core Corp. He desires to sell
personal to him or pertain to his own share. With respect to his shares in Core Corp. In view of a court suit that Core
those which personally belong to others, he may avail Corp. has filed against him for damages in the amount of P
himself thereof only as regards that part of the debt for 10 million, plus attorney’s fees of P 1 million, as a result of
which the latter are responsible. (Article 1222, NCC). statements published by Stockton which are allegedly
defamatory because it was calculated to injure and damage
(c) A may not interpose the defense of insolvency of D the corporation’s reputation and goodwill. The articles of
as a defense. Applying the principle of mutual guaranty incorporation of Core Corp. provide for a right of first
among solidary debtors, A guaranteed the payment of D’s refusal in favor of the corporation. Accordingly,

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 30
Stockton gave written notice to the corporation of his void. Since the mortgage, insofar as Ricardo is concerned is
offer to sell his shares of P 10 million. The response of Core not violated, a requirement under Act 3135 for a valid
corp. was an acceptance of the offer in the exercise of its foreclosure of real estate mortgage is absent. In the case of
rights of first refusal, offering for the purpose payment in DBP vs. Licuanan (516 SCRA 644 [2007]), it was held that: “the
form of compensation or set-off against the amount of issue of whether demand was made before the foreclosure
damages it is claiming against him, was effected is essential. If demand was made and duly
exclusive of the claim for attorney’s fees. Stockton rejected received by the respondents and the latter still did not pay,
the offer of the corporation, arguing that compensation then they were already in default and foreclosure was
between the value of the shares and the amount of damages proper. However, if demand was not made, then the loans
demanded by the corporation cannot legally take effect. Is had not yet become due and demandable. This meant that
Stockton correct? Give reason for your answer. (1998, 2002) respondents had not defaulted in their payment and the
foreclosure was premature”.
Stockton is correct. There is no right of compensation c. Does Recardo have basis under the Civil Code for
between his price of P10 million and Core Corp.’s claiming that the original contract was novated?
unliquidated claim for damages. In order that compensation SUGGESTED ANSWER:
may be proper, the two debts must be liquidated and None of the three kinds of novation is applicable. There is no
demandable. The case for the P10 million damages being objective novation, whether express or implied, because
still pending in court, the corporation has as yet no claim there is no change in the object or principal conditions of the
which is due and demandable against Stockton. obligation. There is no substitution of debtors, either.
Compensation is concerned as abbreviated or simplified
Eduardo was granted a loan by XYZ Bank for the purpose of payment and since Recardo bound himself solidarily with
improving a building which XYZ leased from him. Eduardo Eduardo, any facultative compensation which occurs does
executed the promissory note ("PN") in favor of the bank, not result in partial legal subrogation. Neither Eduardo nor
with his friend Recardo as co-signatory. In the PN, they both Recardo is a third person interested in the obligation under
acknowledged that they are "individually and collectively" Art. 1302, CC.
liable and waived the need for prior demand. To secure the
PN, Recardo executed a real estate mortgageon his own Arturo borrowed P500,000.00 from his father. After he had
property. When Eduardo defaulted on the PN, XYZ stopped paid P300,000.00, his father died. When the administrator
payment of rentals on the building on the ground that legal of his father's estate requested payment of the balance of
compensation had set in. Since there was still a balance due P200,000.00. Arturo replied that the same had been
on the PN after applying the rentals, XYZ foreclosed the real condoned by his father as evidenced by a notation at the
estate mortgage over Recardo's property. Recardo opposed back of his check payment for the P300,000.00 reading: "In
the foreclosure on the ground that he is only a co-signatory; full payment of the loan". Will this be a valid defense in an
that no demand was made upon him for payment, and action for collection? (2000)
assuming he is liable, his liability should not go beyond half
the balance of the loan. Further, Recardo said that when the SUGGESTED ANSWER:
bank invoked compensation between the reantals and the It depends. If the notation "in full payment of the loan" was
amount of the loan, it amounted to a new contract or written by Arturo's father, there was an implied
novation, and had the effect of extinguishing the security condonation of the balance that discharges the obligation. In
since he did not give his consent (as owner of the property such case, the notation is an act of the father from which
under the real estate mortgage) therto. (2008) condonation may be inferred. The condonation being
a. Can XYZ Bank balidly assert legal compensation? implied, it need not comply with the formalities of a
donation to be effective. The defense of full payment will,
SUGGESTED ANSWER: therefore, be valid. When, however, the notation was written
XYZ Bank may validly assert the partial compensation of both by Arturo himself. It merely proves his intention in making that
debts, but it should be facultative compensation because not payment but in no way does it bind his father (Yam v. CA, G.R
all of the fie requisites of legal compensation are present No. 104726. 11 February 1999). In such case, the notation was
(Article 1279, NCC). The payment of the rentals by XYZ Bank not the act of his father from which condonation may be
is not yet due, but the principal obligation of load where both inferred. There being no condonation at all the defense
Eduardo and Recardo are bound solidarily and therefore any of full payment will not be valid.
of them is principally bound to pay the entire loan, is due and
demandable without need of demand. XYZ Bank may declare On July 1, 1998, Brian leased an office space in a building
its obligation to pay rentals as already due and demand for a period of five years at a rental rate of P1,000.00 a
payment from any of the two debtors. month. The contract of lease contained the proviso that "in
case of inflation or devaluation of the Philippine peso, the
b. Can Recardo's property be foreclosed to pay the monthly rental will automatically be increased or decreased
full balance of the loan? depending on the devaluation or inflation of the peso to the
dollar." Starting March 1, 2001, the lessor increased the
SUGGESTED ANSWER: rental to P2,000 a month, on the ground of inflation proven
No, because there was no prior demand on Ricardo, by the fact that the exchange rate of the Philippine peso to
depriving him of the right to reasonable block the foreclosure the dollar had increased from P25.00=$1.00 to
by payment. The waiver of prior demand in the PN is against P50.00=$1.00. Brian refused to pay the increased rate and
public policy and violates the right to due process. Without an action for unlawful detainer was filed against him. Will
demand, there is no default and the foreclosure is null and the action prosper? Why? (2001)


b. Can XY Corp. unilaterrally and immediately cancel
the contract?

SUGGESTED ANSWER: No. XY Corporation cannot unilaterally and immediately
The action will not prosper. The existence of inflation or cancel the contract because there is need for a
deflation requires an official declaration by the Bangko Sentral judicial action for rescission. The provisions of
ng Pilipinas. Article. 1191 of the Civil Code providing for rescission in
reciprocal obligations can only be invoked
In 1971, Able Construction, Inc. entered into a contract judicially (Escuesta v. Pando, 76 Phil. 256 [1964];
with Tropical Home Developers, Inc. whereby the former Republic v. Hospital de San Juan de Dios, 84 Phil.
would build for the latter the houses within its subdivision. 820 [1949]).
The cost of each house, labor and materials included, was
P100,000.00. Four hundred units were to be constructed c. Must AB Corp. return the 50% downpayment?
within five years. In 1973, Able found that it could no
longer continue with the job due to the increase in the price SUGGESTED ANSWER:
of oil and its derivatives and the concomitant worldwide No, under the principle of quantum meruit, AC corporation
spiraling of prices of all commodities, including basic raw has the right to retain payment corresponding to his
materials required for the construction of the houses. The percentage of accomplishment less the amount of damages
cost of development had risen to unanticipated levels and to suffered by XY corporation because of the delay or default.
such a degree that the conditions and factors which formed
the original basis of the contract had been totally changed. In 1978, Bobby borrowed Pl,000,000.00 from Chito payable
Able brought suit against Tropical Homes praying that the in two years. The loan, which was evidenced by a
Court relieve it of its obligation. Is Able Construction entitled promissory note, was secured by a mortgage on real
to the relief sought? (1993) property. No action was filed by Chito to collect the loan or
to foreclose the mortgage. But in 1991, Bobby, without
SUGGESTED ANSWER: receiving any amount from Chito, executed another
Yes, the Able Construction. Inc. is entitled to the relief promissory note which was worded exactly as the 1978
sought under Article 1267, Civil Code. The law provides: promissory note, except for the date thereof, which was the
"When the service has become so difficult as to be date of its execution. (1994)
manifestly beyond the contemplation of the parties, the a) Can Chito demand payment on the 1991
obligor may also be released therefrom, in whole or in part." promissory note in 1994?
AB Corp. entered into a contract with XY Corp. whereby the Yes, Chito can demand payment on the 1991 promissory note
former agreed to construct the research and laboratory in 1994. Although the 1978 promissory note for P1 million
facilities of the latter. Under the terms of the contract, AB payable two years later or in 1980 became a natural
Corp. agreed to complete the facility in 18 months, at the obligation after the lapse of ten (10) years, such natural
total contract price of P10 million. XY Corp. paid 50% of the obligation can be a valid consideration of a novated
total contract price, the balance to be paid upon completion promissory note dated in 1991 and payable two years later,
of the work. The work stated immediately, but AB Corp. or in 1993. All the elements of an implied real novation are
later experienced work slippage because of labor unrest in present. The two promissory notes cannot stand together,
his company. AB Corp.'s employees claimed that they are hence, the period of prescription of ten (10) years has not yet
not being paid on time; hence, the work slowdown. As of lapsed.
the 17th month, work was only 45% completed. AB Corp.
asked for extension of time, claiming that its labor problems b) Can Chito foreclose the real estate mortgage if
is a case of fortuitous event, but this was denied by XY Corp. Bobby fails to make good his obligation under
When it became certain that the contruction could not be the 1991 promissory note?
finished on time, XY Corp. sent written notice cancelling the SUGGESTED ANSWER:
contract, and requiring AB Corp. to immediately vacate the No. The mortgage being an accessory contract prescribed with
premises. (2008) the loan. The novation of the loan, however, did not
a. Can the labor unrest be considered a fortuitous expressly include the mortgage, hence, the mortgage is
event? extinguished under Article 1296 of the NCC. The contract has
been extinguished by the novation or extinction of the
SUGGESTED ANSWER: principal obligation insofar as third parties are concerned.
Labor unrest is not a fortuitous event that will excuse AB
Corporation from complying with its obligation of In 1983 PHILCREDIT extended loans to Rivett-Strom
constructing the research and laboratory facilities of XY Machineries, Inc. (RIVETTT-STROM), consisting of US$10
Corporation. The labor unrest, which may even be attributed Million for the cost of machineries imported and directly
in large part to AB Corporation itself, is not the direct cause paid by PHTLCREDIT, and 5 Million in cash payable in
of non-compliance by AB corporation. It is independent of its installments over a period of ten (10) years on the basis of the
obligation. It is similar to the failure of a DBP borrower to pay value thereof computed at the rate of exchange of the U.S.
her loan just because her plantation suffered losses due to dollar vis-à-vis the Philippine peso at the time of payment.
the cadang-cadang disease. It does not excuse compliance RIVETT-STROM made payments on both loans which if
with the obligation (DBP vs. Vda. de Moll, 43 SCRA 82 based on the rate of exchange in 1983 would have fully
[1972]). settled the loans. PHILCREDIT contends that the payments
on both loans should be based on the rate of exchange

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 32
existing at the time of payment, which rate of exchange has under RA 8183, payment may be made in the currency
been consistently increasing, and for which reason agreed upon by the parties, and the rate of exchange to be
there would still be a considerable balance on each loan. Is followed is at the time of payment. (C.F. Sharp & Co. Inc vs.
the contention of PHILCREDIT correct? Discuss fully. (1995) Northwest Airlines, Inc., 381 SCRA 314 [2002]).

SUGGESTED ANSWER: Kristina brought her diamond ring to a jewelry shop for
As regards the loan consisting of dollars, the contention of cleaning. The jewelry shop undertook to return the ring by
PHILCREDIT is correct. It has to be paid in Philippine February 1, 1999. When the said date arrived, the jewelry
currency computed on the basis of the exchange rate at the shop informed Kristina that the Job was not yet finished.
TIME OF PAYMENT of each installment, as held in Kalalo They asked her to return five days later. On February 6,
v. Luz, 34 SCRA 337. As regards the P5 Million loan in 1999, Kristina went to the shop to claim the ring, but she
Philippine pesos, PHILCREDIT is wrong. The payment thereof was informed that the same was stolen by a thief who
cannot be measured by the peso-dollar exchange rate. entered the shop the night before. Kristina filed an action
That will be violative of the Uniform Currency Act (RA, for damages against the jewelry shop which put up the
529] which prohibits the payment of an obligation which, defense of force majeure. Will the action prosper or not?
although to be paid in Philippine currency, is measured by (1994, 2000)
a foreign currency. (Palanca v. CA, 238 SCRA 593).
Felipe borrowed $100 from Gustavo in 1998, when the Phil The action will prosper. Since the defendant was already in
P - US$ exchange rate was P56 - US$1. On March 1, 2008, default not having delivered the ring when delivery was
Felipe tendered to Gustavo a cashier's check in the amount demanded by plaintiff at due date, the defendant is liable for
of P4,135 in payment of his US$ 100 debt, based on the Phil the loss of the thing and even when the loss was due to
P - US$ exchange rat at that time. Gustavo accepted the force majeure.
check, but forgot to deposit it until Sept. 12, 2008. His bank
refused to accepted the check because it had become stale. CONTRACTS
Gustavo now wants Felipe to pay him in cash the amount of
P5,600. Claiming that the previous payment was not in legal Don, an American businessman, secured parental consent
tender, and that there has been extraordinary deflation for the employment of five minors to play certain roles in
since 1998, and therefore, Felipe should pay him the value two movies he was producing at home in Makati. They
of the debt at the time it was incurred. Felipe refused to pay worked at odd hours of the day and night, but always
him again, claiming that Gustavo is estopped from raising accompanied by parents or other adults. The producer paid
the issue of legal tender, having accepted the check in the children talent fees at rates better than adult wages. But
March, and that it was Gustavo's negligence in not a social worker, DEB, reported to OSWD that these
depositing the check immediately that caused the check to children often missed going to school. They sometimes
become stale. (2008) drank wine, aside from being exposed to drugs. In some
a. Can Gustavo now raised the issue that the cashier's scenes, they were filmed naked or in revealing costumes. In
check is not legal tender? his defense, Don contended all these were part of artistic
freedom and cultural creativity. None of the parents
SUGGESTED ANSWER: complained, said Don. He also said they signed a contract
No, because Gustavo is guilty if estoppel by laches, he led containing a waiver of their right to file any complaint in
Felipe to believe he could pay by cashier’s check, and Felipe any office or tribunal concerning the working conditions of
relied that such cashier’s check would be encashed thus their children acting in the movies. Is the waiver valid and
extinguishing his obligation. Because of Gustavo’s inaction of binding? Why or why not? Explain. (2004)
more than six months the check became stale and Felipe will
be prejudiced if he will be required to pay $100 at the SUGGESTED ANSWER:
exchange rate of P56 to $1.00. The exchange should be the The waiver is not valid. Although the contracting parties
rate at the time of the time of payment. may establish such stipulations, clauses, terms and
conditions as they may deem convenient, they may not do
b. Can Felipe validly refuse to pay Gustavo again? so if such are contrary to law, morals, good customs, public
order, or public policy (Article 1306, Civil Code). The
SUGGESTED ANSWER: parents' waiver to file a complaint concerning the working
Yes, if the payment is valid. Since the bank considered the conditions detrimental to the moral well-being of their
cashier’s check as being stale for not having been encashed children acting in the movies is in violation of the Family
on time, then the cashier’s check may be issued again. At any Code and Labor laws. Thus, the waiver is invalid and not
rate, non-payment of the amount o Gustavo would binding. The Child Labor Law is a mandatory and prohibitory
constitute unjust enrichment. law and the rights of the child cannot be waived as it is
contrary to law and public policy.
c. Can Felipe compel Gustavo to receive US$100
instead? Roland, a basketball star, was under contract for one year to
play-for-play exclusively for Lady Love, Inc. However, even
SUGGESTED ANSWER: before the basketball season could open, he was offered a
Yes. Felipe can compel Gustavo to pay US $100 instead. more attractive pay plus fringes benefits by Sweet Taste,
Under the prior law, RA 529, as amended by R.A. 4100, Inc. Roland accepted the offer and transferred to Sweet
payment can only be in the Philippine currency as it would be Taste. Lady Love sues Roland and Sweet Taste for breach of
against public policy, null and void and of no effect. However, contract. Defendants claim that the restriction to play for


Lady Love alone is void, hence, unenforceable, as it Suplico and Printado was for the benefit of Publico. Are the
constitutes an undue interference with the right of Roland contentions of Printado tenable? Explain your answers as to
to enter into contracts and the impairment of his freedom each contention. (2002)
to play and enjoy basketball. Can Roland be bound by the
contract he entered into with Lady Love or can he disregard SUGGESTED ANSWER:
the same? Is he liable at all? How about Sweet Taste? Is it No, the contentions of Printado are untenable. Printado
liable to Lady Love? (1991) having failed to pay for the printing paper covered by the
delivery invoices on time, Suplico has the right to cease
making further delivery. And the latter did not violate the
SUGGESTED ANSWER: order agreement (Integrated Packaging Corporation v. Court
Yes, Roland is liable under the contract as far as Lady Love is of Appeals, (333 SCRA 170, G.R. No. 115117, June 8, [2000]).
concerned. He is liable for damages under Article 1170 of the Suplico cannot be held liable for damages, for breach of
Civil Code since he contravened the tenor of his obligation. contract, as it was not he who violated the order agreement,
Not being a contracting party, Sweet Taste is not bound by the but Printado. Suplico cannot be held liable for Printado’s
contract but it can be held liable under Art. 1314. The basis breach of contract with Publico. He is not a party to the
of its liability is not prescribed by contract but is founded on agreement entered into by and between Printado and
quasi-delict, assuming that Sweet Taste knew of the Publico. Theirs is not a stipulation pour atrui. [Aforesaid]
contract. Article 1314 of the Civil Code provides that any Such contracts do could not affect third persons like Suplico
third person who induces another to violate his contract because of the basic civil law principle of relativity of
shall be liable for damages to the other contracting party. contracts which provides that contracts can only bind the
parties who entered into it, and it cannot favor or
Baldomero leased his house with a telephone to Jose. The prejudice a third person, even if he is aware of such
lease contract provided that Jose shall pay for all electricity, contract and has acted with knowledge thereof. (Integrated
water and telephone services in the leased premises during Packaging Corporation v. CA, supra.)
the period of the lease. Six months later. Jose surreptitiously
vacated the premises. He left behind unpaid telephone bills I. Essential Requisites
for overseas telephone calls amounting to over P20,000.00.
Baldomero refused to pay the said bills on the ground that Lolita was employed in a finance company. Because she
Jose had already substituted him as the customer of the could not account for the funds entrusted to her, she was
telephone company. The latter maintained that Baldomero charged with estafa and ordered arrested. In order to secure
remained as his customer as far as their service contract was her release from jail, her parents executed a promissory note
concerned, notwithstanding the lease contract between to pay the finance company the amount allegedly
Baldomero and Jose. Who is correct, Baldomero or the misappropriated by their daughter. The finance company
telephone company? Explain. (1996) then executed an affidavit of desistance which led to the
withdrawal of the information against Lolita and her release
SUGGESTED ANSWER: from jail. The parents failed to comply with their
The telephone company is correct because as far as it is promissory note and the finance company sued them for
concerned, the only person it contracted with was specific performance. Will the action prosper or not? (2000)
Baldomero. The telephone company has no contract with
Jose. Baldomero cannot substitute Jose in his stead without SUGGESTED ANSWER:
the consent of the telephone company (Art. 1293, NCC). The action will prosper. The promissory note executed by
Baldomero is, therefore, liable under the contract. Lolita's parents is valid and binding, the consideration being
the extinguishment of Lolita's civil liability and not the
Printado is engaged in the printing business. Suplico stifling of the criminal prosecution.
supplies printing paper to Printado pursuant to an order
agreement under which Suplico binds himself to deliver the
same volume of paper every month for a period of 18 Mr. ZY lost P100,000 in a card game called Russian poker,
months, with Printado in turn agreeing to pay within 60 but he had no more cash to pay in full the winner at the
days after each delivery. Suplico has been faithfully time the session ended. He promised to pay PX, the
delivering under the order agreement for 10 months but winner, two weeks thereafter. But he failed to do so despite
thereafter stopped doing so, because Printado has not made the lapse of two months, so PX filed in court a suit to
any payment at all. Printado has also a standing contract collect the amount of P50,000 that he won but remained
with publisher Publico for the printing of 10,000 volumes unpaid. Will the collection suit against ZY prosper? Could
of school textbooks. Suplico was aware of said printing Mrs. ZY file in turn a suit against PX to recover the
contract. After printing 1,000 volumes, Printado also fails to P100,000 that her husband lost? Reason. (2004)
perform under its printing contract with Publico. Suplico
sues Printado for the value of the unpaid deliveries under SUGGESTED ANSWER:
their order agreement. At the same time Publico sues The suit by PX to collect the balance of what he won from ZY
Printado for damages for breach of contract with respect to will not prosper. Under Article 2014 of the Civil Code, no
their own printing agreement. In the suit filed by Suplico, action can be maintained by the winner for the collection
Printado counters that: (a) Suplico cannot demand payment of what he has won in a game of chance. Although
for deliveries made under their order agreement until poker may depend in part on ability, it is fundamentally a
Suplico has completed performance under said contract; (b) game of chance. If the money paid by ZY to PX was
Suplico should pay damages for breach of contract; and (c) conjugal or community property, the wife of ZY could sue to
with Publico should be liable for Printado’s breach of his recover it because Article 117(7) of the Family Code
contract with Publico because the order agreement between provides that losses in gambling or betting are borne

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 34
exclusively by the loser-spouse. Hence, conjugal or day period, he breached the option contract. (Article 1324,
community funds may not be used to pay for such losses. If Civil Code)
the money were exclusive property of ZY, his wife may also
sue to recover it under Article 2016 of the Civil Code if she c) Supposing that Carlos accepted the offer
and the family needed the money for support. before Marvin could communicate his
withdrawal thereof? Discuss the legal
SUGGESTED ANSWER: consequences.
Mrs. ZY cannot file a suit to recover what her husband
lost. Art 2014 of the Civil Code provides that any loser in a SUGGESTED ANSWER:
game of chance may recover his loss from the winner, with A contract to construct the house of Carlos is perfected.
legal interest from the time he paid the amount lost. This Contracts are perfected by mere consent manifested by the
means that only he can file the suit. Mrs. ZY cannot meeting of the offer and the acceptance upon the thing and
recover as a spouse who has interest in the absolute the cause which are to constitute the contract. Under Article
community property or conjugal partnership of gains, 1315 of the Civil Code, Carlos and Marvin are bound to fulfill
because under Art. 117(7} of the Family Code, losses are what has been expressly stipulated and all consequences
borne exclusively by the loser-spouse. Therefore, these thereof. Under Article 1167, if Marvin would refuse to
cannot be charged against absolute community property or construct the house, Carlos is entitled to have the
conjugal partnership of gains. This being so, Mrs. ZY has no construction be done by a third person at the expense of
interest in law to prosecute and recover as she has no legal Marvin. Marvin in that case will be liable for damages under
standing in court to do so. Article 1170.

II. Kinds of Contracts III. Defective Contracts

Distinguish consensual from real contracts and name at Distinguish briefly but clearly between Inexistent contracts
least four (4) kinds of real contracts under the present law. and annullable contracts. (2004)
IV. Effect of Contracts
Marvin offered to construct the house of Carlos for a very
reasonable price of P900,000.00, giving the latter 10 days In December 1985, Salvador and the Star Semiconductor
within which to accept or reject the offer. On the fifth day, Company (SSC) executed a Deed of Conditional Sale
before Carlos could make up his mind, Marvin withdrew his wherein the former agreed to sell his 2,000 square meter lot
offer. (2005) in Cainta, Rizal, to the latter for the price of P1,000,000.00,
a) What is the effect of the withdrawal of Marvin's payable P100,000.00 down, and the balance 60 days after
offer? the squatters in the property have been removed. If the
squatters are not removed within six months, the
SUGGESTED ANSWER: P100,000.00 down payment shall be returned by the vendor
The withdrawal of Marvin's offer will cause the offer to to the vendee, Salvador filed ejectment suits against the
cease in law. Hence, even if subsequently accepted, there squatters, but in spite of the decisions in his favor, the
could be no concurrence of the offer and the acceptance. In squatters still would not leave. In August, 1986, Salvador
the absence of concurrence of offer and acceptance, there offered to return the P100,000.00 down payment to the
can be no consent. (Laudico v. Arias Rodriguez, G.R. No. vendee, on the ground that he is unable to remove the
16530, March 31, 1922) Without consent, there is no squatters on the property. SSC refused to accept the
perfected contract for the construction of the house of money and demanded that Salvador execute a deed of
Carlos. (Salonga v. Farrales, G.R. No. L-47088, July 10, 1981) absolute sale of the property in its favor, at which time it
Article 1318 of the Civil Code provides that there can be no will pay the balance of the price. Incidentally, the value of
contract unless the following requisites concur: (1) consent the land had doubled by that time. Salvador consigned the P
of the parties; (2) object certain which is the subject matter of 100,000.00 in court, and filed an action for rescission of the
the contract; and (3) cause of the obligation. Marvin will not deed of conditional sale, plus damages. Will the action
be liable to pay Carlos any damages for withdrawing the prosper? Explain. (1996)
offer before the lapse of the period granted. In this case,
no consideration was given by Carlos for the option given, SUGGESTED ANSWER:
thus there is no perfected contract of option for lack of No, the action will not prosper. The action for rescission
cause of obligation. Marvin cannot be held to have may be brought only by the aggrieved party to the contract.
breached the contract. Thus, he cannot be held liable for Since it was Salvador who failed to comply with his
damages. conditional obligation, he is not the aggrieved party who
may file the action for rescission but the Star
b) Will your answer be the same if Carlos paid Semiconductor Co. The company, however, is not opting to
Marvin P10,000.00 as consideration for that rescind the contract but has chosen to waive Salvador's
option? Explain. compliance with the condition which it can do
under Art. 1545, NCC.
My answer will not be the same if Carlos paid Marvin SALES
P10,000.00 because an option contract was perfected. Thus, if
Marvin withdrew the offer prior to the expiration of the 10- I. Definition and Essential Requisites of a Contract of Sale


A contract to sell is the same as a conditional contract of contends that he has merely given Bert an option to buy
sale. Do you agree? Explain your answer. (2012) and nothing more, and offers to return the option money
which Bert refuses to accept. (1993, 2002)
Spouses Biong and Linda wanted to sell their house. They a) Will Bert’s action for specific performance
found a prospective buyer, Ray. Linda negotiated with Ray prosper? Explain.
for the sale of the property. They agreed on a fair price of
P2 Million. Ray sent Linda a letter confirming his intention SUGGESTED ANSWER:
to buy the property. Later, another couple, Bernie and Bert’s action for specific performance will prosper because
Elena, offered a similar house at a lower price of P1.5 there was a binding agreement of sale, not just an option
Million. But Ray insisted on buying the house of Biong and contract. The sale was perfected upon acceptance by Simeon
Linda for sentimental reasons. Ray prepared a deed of sale of 10% of the agreed price. This amount is in really earnest
to be signed by the couple and a manager's check for P2 money which, under Art. 1482, “shall be considered as part
Million. After receiving the P2 Million, Biong signed the of the price and as proof of the perfection of the contract.”
deed of sale. However, Linda was not able to sign it because (Topacio v. CA, 211 SCRA 291 [1992]; Villongco Realty v.
she was abroad. On her return, she refused to sign the Bormaheco, 65 SCRA 352 [1975]).
document saying she changed her mind. Linda filed suit for
nullification of the deed of sale and for moral and b) May Simeon justify his refusal to proceed with the
exemplary damages against Ray. Will the suit prosper? sale by the fact that the deal is financially
Explain. (2006) disadvantageous to him? Explain.


No, the suit will not prosper. The contract of sale was Simeon cannot justify his refusal to proceed with the sale
perfected when Linda and Ray agreed on the object of the by the fact that the deal is financially disadvantageous
sale and the price [Art. 1475, New Civil Code]. The consent of to him. Having made a bad bargain is not a legal ground for
Linda has already been given, as shown by her agreement to pulling out a biding contract of sale, in the absence of some
the price of the sale. There is therefore consent on her part actionable wrong by the other party (Vales v. Villa, 35 Phil
as the consent need not be given in any specific form. Hence, 769 [1916]), and no such wrong has been committed by
her consent may be given by implication, especially since she Bert.
was aware of, and participated in the sale of the property Sergio is the registered owner of a 500-square meter land.
(Pelayo v. CA, G.R. No. 141323, June 8, 2005). Her action for His friend, Marcelo, who has long been interested in the
moral and exemplary damages will also not prosper because property, succeeded in persuading Sergio to sell it to him.
the case does not fall under any of those mentioned in Art. On June 2, 2012, they agreed on the purchase price
2219 and 2232 of the Civil Code. of P600,000 and that Sergio would give Marcelo up to
June30, 2012 within which to raise the amount. Marcelo, in
Does Ray have any cause of action against Biong and Linda? a light tone usual between them, said that they should seal
Can he also recover damages from the spouses? Explain. their agreement through a case of Jack Daniels Black
and P5,000 "pulutan" money which he immediately handed
SUGGESTED ANSWER: to Sergio and which the latter accepted. The friends then sat
Considering that the contract has already been perfected down and drank the first bottle from the case of bourbon.
and taken out of the operation of the statute of frauds, Ray On June 15, 2013, Sergio learned of another buyer, Roberto,
can compel Linda and Biong to observe the form required by who was offering P800,000 in ready cash for the land. When
law in order for the property to be registered in the name of Roberto confirmed that he could pay in cash as soon as
Ray which can be filed together with the action for the Sergio could get the documentation ready, Sergio decided
recovery of house [Art. 1357 New Civil Code]. In the to withdraw his offer to Marcelo, hoping to just explain
alternative, he can recover the amount of Two million pesos matters to his friend. Marcelo, however, objected when the
(P2,000,000.00) that he paid. Otherwise, it would result in withdrawal was communicated to him, taking the position
solutio indebiti or unjust enrichment. Ray can recover moral that they have a firm and binding agreement that Sergio
damages on the ground that the action filed by Linda is cannot simply walk away from because he has an option to
clearly an unfounded civil suit which falls under malicious buy that is duly supported by a duly accepted valuable
prosecution (Ponce v. Legaspi, G.R. No. 79184, May 6,1992). consideration. (2013)
a. Does Marcelo have a cause of action against
II. Price Sergio?

Explain the nature of an option contract. (2002) SUGGESTED ANSWER:

Yes. Marcelo has a cause of action against Sergio. Under
Bert offers to buy Simeon’s property under the following Article 1324, when the offerer has allowed the offeree a
terms and conditions: P1 million purchase price, 10% certain period to accept, the offer may be withdrawn at any
option money, the balance payable in cash upon the time before acceptance by communicating such withdrawal,
clearance of the property of all illegal occupants. The option except when the option is founded upon a consideration, as
money is promptly paid and Simeon clears the property of something paid or promised. An accepted unilateral promise
illegal occupants in no time at all. However, when Bert to buy or to sell a determinate thing for a price certain is
tenders payment of the balance and ask Simeon for the deed binding upon the promissor if the promise is supported by a
for absolute sale, Simeon suddenly has a change of heart, consideration distinct from the price (Art. 1479).
claiming that the deal is disadvantageous to him as he has Consideration in an option contract may be anything of
found out that the property can fetch three time the agreed value, unlike in sale where it must be the price certain in
purchase price. Bert seeks specific performance but Simeon money or its equivalent (San Miguel Properties Inc v. Spouse:

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 36
Huang, GR. No. 137290, July 31, 2000). Here, the ease of Jack Yes, the answer will be the same. The action will not prosper
Daniels Black and the 15,000 “pulutan” money was a because an option must be supported by a consideration
consideration to “seal their agreement", an agreement that separate and distinct from the purchase price. In this case
Marcelo is given until June 30, 2012 to buy the parcel of land. there is no separate consideration. Therefore, the option
There is also no showing that such consideration will be may be withdrawn by Ubaldo at any time. (Art. 1324, NCC)
considered part of the purchase price. Thus, Sergio‘s
unilateral withdrawal of the offer violated the Option Dux leased his house to Iris for a period of 2 years, at the
Contract between him and Marcelo. rate of P25,000.00 monthly, payable annually in advance.
The contract stipulated that it may be renewed for another
b. Can Sergio claim that whatever they might have 2-year period upon mutual agreement of the parties. The
agreed upon cannot be enforced because any contract also granted Iris the right of first refusal to
agreement relating to the sale of real property purchase the property at any time during the lease, if Dux
must be supported by evidence in writing and they decides to sell the property at the same price that the
never reduced their agreement to writing? property is offered for sale to a third party. Twenty-three
months after execution of the lease contract, Dux sold
SUGGESTED ANSWER: breach of her right of first refusal. Dux said there was no
No. Sergio‘s claim has no legal basis. The contract at issue in breach because the property was sold to his mother who is
the present case is the option contract, not the contract of not a third party. Iris filed an action to rescind the sale and
sale for the real property. Therefore, Article I403 does not to compel Dux to sell the property to her at the same price.
apply. The Statute of Frauds covers an agreement for the sale Alternatively, she asked the court to extend the lease for
of real property or of an interest therein. Snell agreement is another 2 years on the same terms. (2008)
unenforceable by action, unless the same, or some note or a. Can Iris seek rescission of the sale of the property
memorandum, thereof, be in writing. (Art. 1403 (e), Civil to Dux's mother?
Code) Here, Marcelo and Sergio merely entered into an
Option Contract, which refers to a unilateral promise to buy SUGGESTED ANSWER:
or sell, which need not be in writing to be enforceable Iris can seek rescission because pursuant to Equatorial Realty
(Sanchez v. Rigos, GR. No. L-25494, June 14, I972, citing Co v. Mayfair Theater (264 SCRA 483 [1996]) rescission
Atkins, Kroll and Co., Inc. v. Cua Hian Tek and Southwestern is a relief allowed for the protection of one of the
Sugar & Molasses Co. v. Atlantic Gulf & Pacific Co.). contracting parties and even third persons from
all injury and damage the contract of sale may cause
Ubaldo is the owner of a building which has been leased by or the protection of some incompatible and preferred right.
Remigio for the past 20 years. Ubaldo has repeatedly
assured Remigio that if he should decide to sell the building, b. Will the alternative prayer for extension of the
he will give Remigio the right of first refusal. On June 30, lease prosper?
1994, Ubaldo informed Remigio that he was willing to sell
the building for P5 Million. The following day, Remigio sent a SUGGESTED ANSWER:
letter to Ubaldo offering to buy the building at P4.5 No, the extension of the lease should be upon the
Million. Ubaldo did not reply. One week later, Remigio mutual agreement of the parties.
received a letter from Santos informing him that the
building has been sold to him by Ubaldo for P5 Million, and On January 2, 1980, A and B entered into a contract
that he will not renew Remigio's lease when it expires. whereby A sold to B a parcel of land for and in
Remigio filed an action against Ubaldo and Santos for consideration of P10.000.00. A reserving to himself the
cancellation of the sale, and to compel Ubaldo to execute a right to repurchase the same. Because they were friends, no
deed of absolute sale in his favor, based on his right of first period was agreed upon for the repurchase of the property.
refusal. (1996, 1998) (1993)
a) Will the action prosper? Explain. a) Until when must A exercise his right of repurchase?


No, the action to compel Ubaldo to execute the deed of A can exercise his right of repurchase within four (4) years
absolute sale will not prosper. According to Ang Yu v. Court of from the date of the contract (Art. 1606, Civil Code).
Appeals (238 SCRA 602), the right of first refusal is not
based on contract but is predicated on the provisions of b) If A fails to redeem the property within the
human relations and, therefore, its violation is predicated on allowable period, what would you advise B to
quasi-delict. Secondly, the right of first refusal implies that do for his better protection?
the offer of the person in whose favor that right was given
must conform with the same terms and conditions as those SUGGESTED ANSWER:
given to the offeree. In this case, however, Remigio was I would advise B to file an action for consolidation of title
offering only P4.5 Million instead of P5 Million. and obtain a judicial order of consolidation which must be
recorded in the Registry of Property (Art. 1607. Civil Code).
b) If Ubaldo had given Remigio an option to purchase
the building instead of a right of first refusal, V. Formation of Contract of Sale
will your answer be the same? Explain.
Distinguish between a conditional sale, on the one hand,
SUGGESTED ANSWER: and an absolute sale, on the other hand. (1997)


A granted B the exclusive right to sell his brand of Maong State the basic difference (only in their legal effects)
pants in Isabela, the price for his merchandise payable between a contract to sell, on the one hand, and a contract
within 60 days from delivery, and promising B a of sale, on the other. (1997)
commission of 20% on all sales. After the delivery of the
merchandise to B but before he could sell any of them, B’s
store in Isabela was completely burned without his fault, A is the lessee of an apartment owned by Y. A allowed his
together with all of A's pants. Must B pay A for his lost married but employed daughter B, whose husband works in
pants? Why? (1999) Kuwait, to occupy it. The relationship between Y and A
soured. Since he has no reason at all to eject A, Y, in
SUGGESTED ANSWER: connivance with the City Engineer, secured from the latter
The contract between A and B is a sale not an agency to sell an order for the demolition of the building. A immediately
because the price is payable by B upon 60 days from delivery filed an action in the Regional Trial Court to annul the order
even if B is unable to resell it. If B were an agent, he is not and to enjoin its enforcement. Y and A were able to forge a
bound to pay the price if he is unable to resell it. As a buyer, compromise agreement under which A agreed to a twenty
ownership passed to B upon delivery and, under Art. 1504 of percent (20%) increase in the monthly rentals. They further
the Civil Code, the thing perishes for the owner. Hence, B agreed that the lease will expire two (2) years later and that
must still pay the price. in the event that Y would sell the property, either A or his
VI. Transfer of Ownership daughter B shall have the right of first refusal. The
Compromise Agreement was approved by the court. Six (6)
Peter Co, a trader from Manila, has dealt business with months before the expiration of the lease, A died. Y sold
Allied Commodities in Hongkong for five years. All the property to the Visorro Realty Corp. without notifying
through the years, Peter Co accumulated an indebtedness of B. B then filed an action to rescind the sale in favor of the
P500,000.00 with Allied Commodities. Upon demand by its corporation and to compel Y to sell the property to her
agent in Manila, Peter Co paid Allied Commodities by check since under the Compromise Agreement, she was given the
the amount owed. Upon deposit in the payee's account in right of first refusal which, she maintains is a stipulation
Manila, the check was dishonored for insufficiency of funds. pour atrui under Article 1311 of the Civil Code. Is she
For and in consideration of P1.00, Allied Commodities correct? (1991)
assigned the credit to Hadji Butu who brought suit against
Peter Co in the RTC of Manila for recovery of the amount SUGGESTED ANSWER:
owed. Peter Co moved to dismiss the complaint against him B is not correct. Her action cannot prosper. Article 1311
on the ground that Hadji Butu was not a real party in requires that the third person intended to be benefited must
interest and, therefore, without legal capacity to sue and that communicate his acceptance to the obligor before the
he had not agreed to a subrogation of creditor. Will Peter revocation. There is no showing that B manifested her
Co's defense of absence of agreement to a subrogation acceptance to Y at any time before the death of A and
of creditor prosper? (1993) before the sale. Hence, B cannot enforce any right under
the alleged stipulation pour atrui.
No, Co's defense will not prosper. This is not a case of JV, owner of a parcel of land, sold it to PP. But the deed of
subrogation, but an assignment of credit. ASSIGNMENT OF sale was not registered. One year later, JV sold the parcel
CREDIT is the process of transferring the right of the assignor again to RR, who succeeded to register the deed and to
to the assignee. The assignment may be done either obtain a transfer certificate of title over the property in his
gratuitously or onerously, in which case, the assignment has own name. Who has a better right over the parcel of land,
an effect similar to that of a sale (Nyco Sales Corp.v.BA RR or PP? Why? Explain the legal basis for your answer.
Finance Corp. G.R No.71694. Aug.16, 1991 200 SCRA 637). As (2001, 2004)
a result of the assignment, the plaintiff acquired all the
rights of the assignor including the right to sue in his own SUGGESTED ANSWER:
name as the legal assignee. In assignment, the debtor's It depends on whether or not RR is an innocent purchaser for
consent is not essential for the validity of the assignment value. Under the Torrens System, a deed or instrument
(Art. 1624; 1475. CC; Rodriguez v. CA, et al, G. R No. 84220, operated only as a contract between the parties and as
March 25. 1992 207 SCRA 553). evidence of authority to the Register of Deeds to make the
registration. It is the registration of the deed or the instrument
Arturo gave Richard a receipt which states: that is the operative act that conveys or affects the land. (Sec.
51, P.D. No. 1529). In cases of double sale of titled land, it is a
Receipt well-settled rule that the buyer who first registers the
Received from Richard as down payment for my 1995 sale in good faith acquires a better right to the land. (Art.
Toyota Corolla with plate No. XYZ-1 23...P50.000.00 1544, Civil Code). Persons dealing with property covered by
Balance payable: 12/30/01... .. P50 000.00 Torrens title are not required to go beyond what appears on
September 15, 2001. its face. (Orquiola v. CA 386, SCRA 301, [2002]; Domingo v.
Sgd.) Arturo Races 401 SCRA 197, [2003]). Thus, absent any showing that
Does this receipt evidence a contract to sell? Why? (2001) RR knew about, or ought to have known the prior sale of the
land to PP or that he acted in bad faith, and being first to
SUGGESTED ANSWER: register the sale, RR acquired a good and a clean title to the
It is a contract of sale because the seller did not reserve property as against PP.
ownership until he was fully paid.
Equitable Mortgage

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 38
On 20 December 1970, Juliet, a widow, borrowed from equitable mortgage, given the circumstances expressed in
Romeo P4,000.00 and, as security therefore, she executed a Art. 1602. The reserved right to repurchase is then deemed an
deed of mortgage over one of her two (2) registered lots original intention.
which has a market value of P15,000.00. The document and
the certificate of title of the property were delivered to b) If you decide in favor of Romeo and Y, would
Romeo. you uphold the validity of the promise to sell?
On 2 June 1971, Juliet obtained an additional sum of P3,000 (1991)
from Romeo. On this date, however, Romeo caused the
preparation of a deed of absolute sale of the above SUGGESTED ANSWER:
property, to which Juliet affixed her signature without first If I were to decide in favor of Romeo and Y, I would not
reading the document. The consideration indicated is uphold the validity of the promise to sell, so as to
P7,000.00. She thought that this document was similar to enforce it by an action for specific performance. The
the first she signed. When she reached home, her son X, promise to sell would only amount to a mere offer and,
after reading the duplicate copy of the deed, informed her therefore, it is not enforceable unless it was sought to be
that what she signed was not a mortgage but a deed of exercised before a withdrawal or denial thereof. Even
absolute sale. On the following day, 3 June 1971, Juliet, assuming the facts given at the end of the case, there would
accompanied by X, went back to Romeo and demanded the have been no separate consideration for such promise to
reformation it, Romeo prepared and signed a document sell. The contract would at most amount to an option which
wherein, as vendee in the deed of sale above mentioned, he again may not be the basis for an action for specific
obligated and bound himself to resell the land to Juliet or performance.
her heirs and successors for the same consideration as
reflected in the deed of sale (P7,000) within a period of two On July 14, 2004, Pedro executed in favor of Juan a Deed of
(2) years, or until 3 June 1973. It is further stated therein Absolute Sale over a parcel of land covered by TCT No. 6245.
that should the Vendor (Juliet) fail to exercise her right to It appears in the Deed of Sale that Pedro received from
redeem within the said period, the conveyance shall be Juan P120,000.00 as purchase price. However, Pedro
deemed absolute and irrevocable. Romeo did not take retained the owner's duplicate of said title. Thereafter, Juan,
possession of the property. He did not pay the taxes as lessor, and Pedro, as lessee, executed a contract of lease
thereon. over the property for a period of one (1) year with a
monthly rental of Pl,000.00. Pedro, as lessee, was also
Juliet died in January I973 without having repurchased the obligated to pay the realty taxes on the property during the
property. Her only surviving heir, her son X, failed to period of lease. Subsequently, Pedro filed a complaint
repurchase the property on or before 3 June 1973. In 1975, against Juan for the reformation of the Deed of Absolute
Romeo sold the property to Y for P50,000.00. Upon Sale, alleging that the transaction covered by the deed was
learning of the sale, X filed an action for the nullification of an equitable mortgage. In his verified answer to the
the sale and for the recovery of the property on the ground complaint, Juan alleged that the property was sold to him
that the so-called deed of absolute sale executed by his under the Deed of Absolute Sale, and interposed
mother was merely an equitable mortgage, taking into counterclaims to recover possession of the property and
account the inadequacy of the price and the failure of to compel Pedro to turn over to him the owner's
Romeo to take possession of the property and to pay the duplicate of title. Resolve the case with reasons. (2005)
taxes thereon. Romeo and Y maintain that there was a valid
absolute sale and that the document signed by the former SUGGESTED ANSWER:
on 3 June 1973 was merely a promise to sell. The complaint of Pedro against Juan should be dismissed.
a) If you were the Judge, would you uphold the The instances when a contract — regardless of its
theory of X? nomenclature — may be presumed to be an equitable
mortgage are enumerated in Article 1602 of the Civil Code:
"Art. 1602. The contract shall be presumed to be an
SUGGESTED ANSWER: equitable mortgage, in any of the following cases:
I will not uphold the theory of X for the nullification of the sale 1. When the price of a sale with right to repurchase
and for the recovery of the property on the ground that the is unusually inadequate:
so-called sale was only an equitable mortgage. An equitable 2. When the vendor remains in possession as lessee
mortgage may arise only if, in truth, the sale was one with or otherwise;
the right of repurchase. The facts of the case state that the 3. When upon or after the expiration of the right
right to repurchase was granted after the absolute deed of to repurchase another instrument extending the period of
sale was executed. Following the rule in Cruzo vs. Carriaga redemption or granting a new period is executed;
(174 SCRA 330), a deed of repurchase executed 4. When the purchaser retains for himself a part of
independently of the deed of sale where the two stipulations the purchase price;
are found in two instruments instead of one document, the 5. When the vendor binds himself to pay the taxes on
right of repurchase would amount only to one option the thing sold;
granted by the buyer to the seller. Since the contract 6. In any other case where it may be fairly inferred
cannot be upheld as a contract of sale with the right to that the real intention of the parties is that the transaction
repurchase, Art. 1602 of the Civil Code on equitable shall secure the payment of a debt or the performance of any
mortgage will not apply. The rule could have been different if other obligation.
both deeds were executed on the same occasion or date, in "In any of the foregoing cases, any money, fruits, or other
which case, under the ruling in spouses Claravall v. CA (190 benefit to be received by the vendee as rent or otherwise
SCRA 439), the contract may still be sustained as an


shall be considered as interest which shall be subject to the No. The suit will not prosper because Pablo was not
usury laws." unlawfully deprived of the car although he was unlawfully
Article 1604 states that "the provisions of article 1602 shall deprived of the price. The perfection of the sale and the
also apply to a contract purporting to be an absolute sale." delivery of the car was enough to allow Alfonso to have a
right of ownership over the car, which can be lawfully
For Articles 1602 and 1604 to apply, two requisites must transferred to Gregorio. Art. 559 applies only to a person
concur: 1) the parties entered into a contract denominated who is in possession in good faith of the property, and not to
as a contract of sale; and 2) their intention was to secure an the owner thereof. Alfonso, in the problem, was the
existing debt by way of mortgage. (Heirs of Balite v. Lim, owner, and, hence, Gabriel acquired the title to the car. Non-
G.R. No. 152168, December 10, 2004) payment of the price in a contract of sale does not render
ineffective the obligation to deliver. The obligation to deliver
In the given case, although Pedro retained possession of the a thing is different from the obligation to pay its price. EDCA
property as lessee after the execution of the Deed of Sale, Publishing Co. v. Santos (1990)
there is no showing that the intention of the parties was to
secure an existing debt by way of mortgage. Hence, the Rica petitioned for the annulment of her ten-year old
complaint of Pedro should be dismissed. marriage to Richard. Richard hired Atty. Cruz to represent
him in the proceedings. In payment for Atty. Cruz's
Eulalia was engaged in the business of buying and selling acceptance and legal fees, Richard conveyed to Atty. Cruz a
large cattle. In order to secure the financial capital, she parcel of land in Taguig that he recently purchased with his
advanced for her employees (biyaheros). She required them lotto winnings. The transfer documents were duly signed
to surrender TCT of their properties and to execute the and Atty. Cruz immediately took possession by fencing off
corresponding Deeds of Sale in her favor. Domeng Bandong the property's entire perimeter. Desperately needing
was not required to post any security but when Eulalia money to pay for his mounting legal fees and his other
discovered that he incurred shortage in cattle procurement needs and despite the transfer to Atty. Cruz, Richard offered
operation, he was required to execute a Deed of Sale over the same parcel of land for sale to the spouses Garcia. After
a parcel of land in favor of Eulalia. She sold the property to inspection of the land, the spouses considered it a good
her grandneice Jocelyn who thereafter instituted an action investment and purchased it from Richard. Immediately
for ejectment against the Spouses Bandong. after the sale, the spouses Garcia commenced the
construction of a three-story building over the land, but
To assert their right, Spouses Bandong filed an action for they were prevented from doing this by Atty. Cruz who
annulment of sale against Eulalia and Jocelyn alleging that claimed he has a better right in light of the prior conveyance
there was no sale intended but only equitable mortgage for in his favor. Is Atty. Cruz's claim correct? (2013)
the purpose of securing the shortage incurred by Domeng
in the amount of P 70, 000.00 while employed as "biyahero" SUGGESTED ANSWER:
by Eulalia. Was the Deed of Sale between Domeng and No, Atty. Cruz is not correct. At first glance, it may appear
Eulalia a contract of sale or an equitable mortgage? Explain. that Atty. Cruz is the one who has a better right because he
(2012) first took possession of the property. However, a lawyer is
prohibited under Article 1491 of the Civil Code from acquiring
SUGGESTED ANSWER: the property and rights which may be the object of any
The contract between Domeng Bandong and Eulalia was an litigation in which they may take part by virtue of their
equitable mortgage rather than a contract of sale. The profession. While the suit is for annulment of marriage and it
purported deed of sale was actually intended to merely may be argued that the land itself is not the object of the
secure the payment of the shortage incurred by Domeng in litigation, the annulment of marriage, if granted, will carry
the conduct of the cattle-buying operations. Under Article with it the liquidation of the absolute community or conjugal
1602, Civil Code, the contract shall be presumed to be an partnership of the spouses as the case may be (Art. 50 in
equitable mortgage when it may be fairly interred that the relation to Art. 43 of the Family Code). Richard purchased the
real intention of the parties is simply to secure the payment land with his lotto winnings during the pendency of the suit
of a debt or the performance of any other obligation. The for annulment and on the assumption that the parties are
present transaction was clearly intended to just secure the governed by the regime of absolute community or conjugal
shortage incurred by Eulalia because Bandong remained in partnership, winnings front gambling or betting will form part
possession of the property inspite of the execution of the thereof. Also, since the land is part of the absolute
sale. community or conjugal partnership o [of] Richard and Rica, it
may not be sold or alienated without the consent of the latter
Pablo sold his car to Alfonso who issued a postdated check and any disposition or encumbrance of the property of the
in full payment therefor. Before the maturity of the check, community or conjugal property without the consent of the
Alfonso sold the car to Gregorio who later sold it to Gabriel. other spouse is void (Art. 96 and Art. 124, Family Code).
When presented for payment, the check issued by Alfonso
was dishonored by the drawee bank for the reason that he, X. Remedies of an Unpaid Seller
Alfonso, had already closed his account even before he issued
his check. Pablo sued to recover the car from Gabriel X sold a parcel of land to Y on 01 January 2002, payment
alleging that he (Pablo) had been unlawfully deprived of and delivery to be made on 01 February 2002. It was
it by reason of Alfonso's deception. Will the suit prosper? stipulated that if payment were not to be made by Y on 01
(1990, 1991) February 2002, the sale between the parties would
automatically be rescinded. Y failed to pay on 01 February
SUGGESTED ANSWER: 2002, but offered to pay three days later, which payment X
refused to accept, claiming that their contract of sale had
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 40
already been rescinded. Is X’s contention correct? Why? 30 days from such notarial notice before rescission may be
(2003) effected. All these requirements for a valid rescission were
not complied with by the seller. Hence, the rescission is
No, X is not correct. In the sale of immovable property,
even though it may have been stipulated, as in this case, that What are the so-called "Maceda" and "Recto" laws in
upon failure to pay the price at the time agreed upon the connection with sales on installments? Give the most
rescission of the contract shall of right take place, the vendee important features of each law. (1999)
may pay, even after the expiration of the period, as long as
no demand for rescission of the contract has been made XIV. Extinguishment of the Sale
upon him either judicially or by a notarial act (Article 1592,
New Civil code). Since no demand for rescission was made on Adela and Beth are co-owners of a parcel of land. Beth sold
Y, either judicially or by a notarial act, X cannot refuse to her undivided share of the property to Xandro, who
accept the payment offered by Y three (3) days after the promptly notified Adela of the sale and furnished the latter
expiration of the period. a copy of the deed of absolute sale. When Xandro presented
the deed for registration, the register of deeds also notified
Priscilla purchased a condominium unit in Makati City from Adela of the sale, enclosing a copy of the deed with the
the Citiland Corporation for a price of P10 Million, payable notice. However, Adela ignored the notices. A year later,
P3 Million down and the balance with interest thereon at Xandro filed a petition for the partition of the property.
14% per annum payable in sixty (60) equal monthly Upon receipt of summons, Adela immediately tendered the
installments of P198,333.33. They executed a Deed of requisite amount for the redemption. Xandro contends that
Conditional Sale in which it is stipulated that should the Adela lost her right of redemption after the expiration of 30
vendee fail to pay three (3) successive installments, the sale days from her receipt of the notice of the sale given by him.
shall be deemed automatically rescinded without the May Adela still exercise her right of redemption? Explain.
necessity of judicial action and all payments made by the (2001, 2002)
vendee shall be forfeited in favor of the vendor by way of
rental for the use and occupancy of the unit and as SUGGESTED ANSWER:
liquidated damages. For 46 months, Priscilla paid the Adela can no longer exercise her right of redemption. As co-
monthly installments religiously, but on the 47th and 48th owner, she had only 30 days from the time she received
months, she failed to pay. On the 49th month, she tried to written notice of the sale which in this case took the form of
pay the installments due but the vendor refused to receive a copy of the deed of sale being given to her (Conejero v. CA,
the payments tendered by her. The following month, the 16 SCRA 775 [1966]). The law does not prescribe any
vendor sent her a notice that it was rescinding the Deed of particular form of written notice, nor any distinctive method
Conditional Sale pursuant to the stipulation for automatic for notifying the redemptioner (Etcuban v. CA, 148 SCRA
rescission, and demanded that she vacate the premises. She 507 [1987]). So long as the redemptioner was informed in
replied that the contract cannot be rescinded without writing, he has no cause to complain (Distrito v. CA, 197
judicial demand or notarial act pursuant to Article 1592 of SCRA 606, 609 [1991]). In fact, in Distrito, a written notice
the Civil Code. (2000) was held unnecessary where the co-owner had actual
a) Is Article 1592 applicable? knowledge of the sale, having acted as middleman and being
present when the vendor signed the deed of sale.
Article 1592 of the Civil Code does not apply to a
conditional sale. In Valarao v. CA, 304 SCRA 155, the XV. The Subdivision and Condominium Buyers' Protective
Supreme Court held that Article 1592 applies only to a Decree (P.D. 957)
contract of sale and not to a Deed of Conditional Sale
where the seller has reserved title to the property until full Bernie bought on installment a residential subdivision lot
payment of the purchase price. The law applicable is the from DEVLAND. After having faithfully paid the
Maceda Law. installments for 48 months, Bernie discovered that
DEVLAND had failed to develop the subdivision in
b) Can the vendor rescind the contract? accordance with the approved plans and specifications
within the time frame in the plan. He thus wrote a letter to
SUGGESTED ANSWER: DEVLAND informing it that he was stopping payment.
No, the vendor cannot rescind the contract under the Consequently, DEVLAND cancelled the sale and wrote
circumstances. Under the Maceda Law, which is the law Bernie, informing him that his payments are forfeited in its
applicable, the seller on installment may not rescind the favor. (2005)
contract till after the lapse of the mandatory grace period of a) Was the action of DEVLAND proper? Explain.
30 days for every one year of installment payments, and
only after 30 days from notice of cancellation or demand for SUGGESTED ANSWER:
rescission by a notarial act. In this case, the refusal of the No, the action of DEVLAND is not proper. Under Section 23 of
seller to accept payment from the buyer on the 49th month Presidential Decree No. 957, otherwise known as the
was not justified because the buyer was entitled to 60 days Subdivision and Condominium Buyer's Protection Decree,
grace period and the payment was tendered within that non-payment of amortizations by the buyer is justified if
period. Moreover, the notice of rescission served by the non-payment is due to the failure of the subdivision owner
seller on the buyer was not effective because the notice was to develop the subdivision project according to the
not by a notarial act. Besides, the seller may still pay within


approved plans and within the limit for complying. Theodore. (Rabadilla v. Conscoluella, 334 SCRA 522 [2000] GR
(Eugenio v. Drilon, G.R. No. 109404, January 22, 1996) 113725, 29 June 2000).

b) Discuss the rights of Bernie under the Raymond, single, named his sister Ruffa in his will as a
circumstances. devisee of a parcel of land which he owned. The will
imposed upon Ruffa the obligation of preseving the land
SUGGESTED ANSWER: and transferring it, upon her death, to her illegitimate
Under P.D. No. 957, a cancellation option is available to daughter Scarlet who was then only one year old. Raymond
Bernie. If Bernie opts to cancel the contract, DEVLAND must later died, leaving behind his widowed mother, Ruffa and
reimburse Bernie the total amount paid and the Scarlet. (2008)
amortizations interest, excluding delinquency interest, plus a. Is the condition imposed upon Ruffa, to preserve
interest at legal rate. the property and to transmit it upon her death to
Scarlet, valid?
c) Supposing DEVLAND had fully developed the
subdivision but Bernie failed to pay SUGGESTED ANSWER:
further installments after 4 years due to business When an obligation to preserve and transmit the property to
reverses. Discuss the rights and obligations of the Scarlet was imposed on Ruffa, the testator Raymond
parties. intended to create a fideicommissary substitution where
Ruffa is the fiduciary and Scarlet is the fideicommissary.
SUGGESTED ANSWER: Having complied with the requirements of Articles 863 and
In this case, pursuant to Section 24 of P.D. No. 957, R.A. No. 869 (N.C.C.) the fideicommisary substitution is valid.
6552 otherwise known as the Realty Installment Buyer
Protection Act, shall govern. Under Section 3 thereof, b. If Scarlet predeceases Ruffa, who inherits the
Bernie is entitled: 1) to pay without additional interest the property?
unpaid installments due within a grace period of four (4)
months or one month for every year of installment paid; 2) if SUGGESTED ANSWER:
the contract is cancelled, Bernie is entitled to the refund of If Scarlet predeceases Ruffa, the fideicommissary
the cash surrender value equal to 50% of the total substitution is rendered null or ineffective under Article 863
payments made. DEVLAND on the other hand has the right (N.C.C.), the fideicommisary clause is disregarded without
to cancel the contract after 30 days from receipt by Bernie prejudice to the validity of the institution of the fiduciary. In
of notice of cancellation. DEVLAND is however obliged to such case, Ruffa shall inherit the devise free from the
refund to Bernie 50% of the total payments made. (Rillo v. condition.
Court of Appeals, G.R. No. 125347, June 19,1997)
SUCCESSION c. If Ruffa predeceases Raymond, can Scarlet inherit
the property directly from Raymond?
I. Testamentary Succession
What do you understand by "presumptive legitime", in what In a fideicommissary substitution, the intention of the
case or cases must the parent deliver such legitime to the testator is to make the second heir his ultimate heir. The
children, and what are the legal effects in each case if the right of the second heir is simply postponed by the
parent fails to do so? (1999) delivery of the inheritance to the first heir for him
to enjoy the usufruct over the inheritance. Hence,
By virtue of a Codicil appended to his will, Theodore when the first heir predeceased the testator, the first heir did
devised to Divino a tract of sugar land, with the obligation not qualify to inherit and the right of the second
on the part of Divino or his heirs to deliver to Betina a heir to receive the inheritance will no longer be delayed
specified volume of sugar per harvest during Betina’s provided the second heir is qualified to inherit at the
lifetime. It is also stated in the Codicil that in the event the time of the testator’s death. In fideicommissary
obligation is not fulfilled, Betina should immediately seize substitution, the first and the second heirs inherit
the property from Divino or latter’s heirs and turn it over to from the testator, hence, both should be qualified to
Theodore’s compulsory heirs. Divino failed to fulfill the inherit from the testator at the time of his death. In the
obligation under the Codicil. Betina brings suit against problem, when Ruffa predeceased Raymond, she did not
Divino for the reversion of the tract of land. (2002) qualify to receive the inheritance to enjoy its usufruct,
a) Distinguish between modal institution and hence, the right of Scarlet to receive the inheritance
substation of heirs. upon the death of the testator will no longer
b) Distinguish between simple and be delayed. However, Scarlet is not qualified to inherit frim
fideicommissary substitution of heirs. Raymond because she is barred by Article 992 of the
c) Does Betina have a cause of action against New Civil Code being an illegitimate child of
Divino? Explain. Raymond’s legitimate father. The devise will
therefore be ineffective and the property will be
SUGGESTED ANSWER: disposed of by intestacy.
Betina has a cause of action against Divino. This is a case of a
testamentary disposition subject to a mode and the will If a will is executed by a testator who is a Filipino
itself provides for the consequence if the mode is not citizen, what law will govern if the will is executed in the
complied with. To enforce the mode, the will itself gives Betina Philippines? What law will govern if the will is executed in
the right to compel the return of the property to the heirs of another country? Explain your answers. If a will is executed
by a foreigner, for instance, a Japanese, residing in the
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 42
Philippines, what law will govern if the will is executed in insisted on signing her will by thumb mark and said that she
the Philippines? And what law will govern if the will is can sign her full name later. While the will was being signed,
executed in Japan, or some other country, for instance, the Roberta experienced a stomach ache and kept going to the
U.S.A.? Explain your answers. (1990) restroom for long periods of time. Hannah, while waiting for
her turn to sign the will, was reading the 7 th Harry Potter
Stevie was born blind. He went to school for the blind, and book on the couch, beside the table on which everyone was
learned to read in Baille Language. He Speaks English signing. Benjamin, aside from witnessing the will, also
fluently. Can he: (2008) offered to notarize it. A week after, Clara was run over by a
a. Make a will? drunk driver while crossing the street in Greenbelt. May the
b. Act as a witness to a will? will of Clara be admitted to probate? Give your reasons
c. In either of the above instances, must the will be briefly. (1994, 2007)
read to him?
Johnny, with no known living relatives, executed a notarial
H died leaving a last will and testament wherein it is stated will giving all his estate to his sweetheart. One day, he had a
that he was legally married to W by whom he had two serious altercation with his sweetheart. A few days later, he
legitimate children A and B. H devised to his said forced was introduced to a charming lady who later became a dear
heirs the entire estate except the free portion which he gave friend. Soon after, he executed a holographic will expressly
to X who was living with him at the time of his death. In said revoking the notarial will and so designating his new friend
will he explained that he had been estranged from his wife as sole heir. One day when he was clearing up his desk,
W for more than 20 years and he has been living with X as Johnny mistakenly burned, along with other papers, the only
man and wife since his separation from his legitimate copy of his holographic will. His business associate,
family. In the probate proceedings, X asked for the Eduardo knew well the contents of the will which was
issuance of letters testamentary in accordance with the will shown to him by Johnny the day it was executed. A few
wherein she is named sole executor. This was opposed by days after the burning incident, Johnny died. Both wills
W and her children. (1990) were sought to be probated in two separate petitions. Will
a) Should the will be admitted in said probate either or both petitions prosper? (1997)
SUGGESTED ANSWER: The probate of the notarial will will prosper. The
Yes, the will may be probated if executed according to the holographic will cannot be admitted to probate because a
formalities prescribed by law. holographic will can only be probated upon evidence of the
will itself unless there is a photographic copy. But since the
b) Is the said devise to X valid? holographic will was lost and there was no other copy, it
cannot be probated and therefore the notarial will will be
SUGGESTED ANSWER: admitted to probate because there is no revoking will.
The institution giving X the free portion is not valid, because
the prohibitions under Art. 739 of the Civil Code on Mr. Reyes executed a will completely valid as to form. A
donations also apply to testamentary dispositions (Article week later, however, he executed another will which
1028, Civil Code), Among donations which are considered expressly revoked his first will, which he tore his first will to
void are those made between persons who were pieces. Upon the death of Mr. Reyes, his second will was
guilty of adultery or concubinage at the time of the presented for probate by his heirs, but it was denied probate
donation. due to formal defects. Assuming that a copy of the first will
is available, may it now be admitted to probate and given
c) Was it proper for the trial court to consider the effect? Why? (2003)
intrinsic validity of the provisions of said will? Explain
your answers. SUGGESTED ANSWER:
Yes, the first will may be admitted to probate and given
SUGGESTED ANSWER: effect. When the testator tore first will, he was under the
As a general rule, the will should be admitted in probate mistaken belief that the second will was perfectly valid and
proceedings if all the necessary requirements for its extrinsic he would not have destroyed the first will had he known
validity have been met and the court should not consider that the second will is not valid. The revocation by
the intrinsic validity of the provisions of said will. However, the destruction therefore is dependent on the validity of the
exception arises when the will in effect contains only one second will. Since it turned out that the second will was
testamentary disposition. In effect, the only invalid, the tearing of the first will did not produce the
testamentary disposition under the will is the giving of the effect of revocation. This is known as the doctrine of
free portion to X, since legitimes are provided by law. Hence, dependent relative revocation (Molo v. Molo, 90 Phil 37.)
the trial court may consider the intrinsic validity of the
provisions of said will. (Nuguid v. Nuguid, etal.. No. L-23445, In 1986, Jennifer and Brad were madly in love. In 1989,
June 23, 1966, 17 SCRA; Nepomuceno v. CA, L-62952, 9 because a certain Picasso painting reminded Brad of her,
October 1985. 139 SCRA 206). Jennifer acquired it and placed it in his bedroom. In 1990,
Brad and Jennifer broke up. While Brad was mending his
Clara, thinking of her mortality, drafted a will and asked broken heart, he met Angie and fell in love. Because the
Roberta, Hannah, Luisa and Benjamin to be witnesses. Picasso painting reminded Angie of him, Brad in his will
During the day of signing of her will, Clara fell down the bequeathed the painting to Angie. Brad died in 1995.
stairs and broke her arms. Coming from the hospital, Clara Saddened by Brad's death, Jennifer asked for the Picasso


painting as a remembrance of him. Angie refused and not cover his properties acquired, which should be by
claimed that Brad, in his will, bequeathed the painting to intestate succession. Manuel claims otherwise. Who is
her. Is Angie correct? Why or why not? (2007) correct? Explain. (1996)

Don died after executing a Last Will and Testament leaving SUGGESTED ANSWER:
his estate valued at P12 Million to his common-law wife Manuel is correct because under Art. 793, NCC, property
Roshelle. He is survived by his brother Ronie and his half- acquired after the making of a will shall only pass thereby, as
sister Michelle. (2006) if the testator had possessed it at the time of making the
a) Was Don's testamentary disposition of his will, should it expressly appear by the will that such was his
estate in accordance with the law on intention. Since Alfonso's intention to devise all properties he
succession? Whether you agree or not, explain owned at the time of his death expressly appears on the will,
your answer. Explain. then all the 20 parcels of land are included in the devise.

SUGGESTED ANSWER: Natividad’s holographic will, which had only one (1)
Yes, Don's testamentary disposition of his estate is in substantial provision, as first written, named Rosa as her
accordance with the law on succession. Don has no sole heir. However, when Gregorio presented it for probate,
compulsory heirs not having ascendants, descendants nor it already contained an alteration, naming Gregorio, instead
a spouse [Art. 887, New Civil Code]. Brothers and sisters are of Rosa, as sole heir, but without authentication by
not compulsory heirs. Thus, he can bequeath his entire Natividad’s signature. Rosa opposes the probate alleging
estate to anyone who is not otherwise incapacitated to such lack of proper authentication. She claims that the
inherit from him. A common-law wife is not incapacitated unaltered form of the will should be given effect. Whose
under the law, as Don is not married to anyone. claim should be granted? Explain. (1996, 2012)

b) If Don failed to execute a will during his SUGGESTED ANSWER:

lifetime, as his lawyer, how will you distribute
his estate? Explain. It depends. If the cancellation of Rosa's name in the will was
done by the testator himself, Rosa's claim that the
SUGGESTED ANSWER: holographic will in its original tenor should be given effect
After paying the legal obligations of the estate, I will give must be denied. The said cancellation has revoked the entire
Ronie, as full-blood brother of Don, 2/3 of the net estate, will as nothing remains of the will alter the name of Rosa was
twice the share of Michelle, the half- cancelled. Such cancellation is valid revocation of the will and
sister who shall receive 1/3. Roshelle will not receive does not require authentication by the full signature of the
anything as she is not a legal heir [Art. 1006 New Civil testator to be effective. However, if the cancellation of Rosa's
Code]. name was not done by the testator himself, such cancellation
shall not be effective and the will in its original tenor shall
c) Assuming he died intestate survived by his remain valid. The efficacy of a holographic will cannot be left
brother Ronie, his half-sister Michelle, and his to the mercy of unscrupulous third parties. The writing of
legitimate son Jayson, how will you distribute Gregorio‘s name as sole heir was ineffective, even though
his estate? Explain. written by the testator himself, because such is an alteration
that requires the authentication by the full signature of the
SUGGESTED ANSWER: testator to be valid and effective. Not having been
Jayson will be entitled to the entire P12 Million as the authenticated. The designation of Gregorio as an heir was
brother and sister will be excluded by a legitimate son of the ineffective. (Kalaw v. Relova, GR. No. L-40207. September 28,
decedent. This follows the principle of proximity, where "the 1984).
nearer excludes the farther."
John Sagun and Maria Carla Camua, British citizens at birth,
d) Assuming further he died intestate, survived by acquired Philippine citizenship by naturalization after their
his father Juan, his brother Ronie, his half-sister marriage. During their marriage, the couple acquired
Michelle, and his legitimate son Jayson, how substantial landholdings in London and in Makati. Maria
will you distribute his estate? Explain. begot three (3) children, Jorge, Luisito, and Joshur. In one of
their trips to London, the couple executed a joint will
SUGGESTED ANSWER: appointing each other as their heirs and providing that upon
Jayson will still be entitled to the entire P12 Million as the the death of the survivor between them, the entire estate
father, brother and sister will be excluded by a legitimate son would go to Jorge and Luisito only but the two (2) could not
of the decedent [Art. 887, New Civil Code]. This follows the dispose of nor divide the London estate as long as they live.
principle that the descendants exclude the ascendants from John and Maria died tragically in the London subway
inheritance. terrorist attack in 2005. Jorge and Luisito filed a petition for
probate of their parents’ will before a Makati Regional Trial
Alfonso, a bachelor without any descendant or ascendant, Court. Joshur vehemently objected because he was
wrote a last will and testament in which he devised." all the preterited. (2000, 2008, 2012)
properties of which I may be possessed at the time of my a. Should the will be admitted to probate? Explain.
death" to his favorite brother Manuel. At the time he wrote
the will, he owned only one parcel of land. But by the time SUGGESTED ANSWER:
he died, he owned twenty parcels of land. His other No, the will should not be adnitted to probate. Since the
brothers and sisters insist that his will should pass only the couple are both Filipino citizens. Articles 818 and 819 0f the
parcel of land he owned at the time it was written, and did NCC shall apply. Said Articles prohibit the execution of joint

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 44
wills and make them void. even though authorized by the However, the baby died a few minutes after complete
laws of the country where they were executed. delivery. Back in the Philippines, Irma Immediately filed a
claim for inheritance. The parents of Isidro opposed her
b. Are the testamentary dispositions valid? Explain. claim contending that the marriage between her and
Isidro was void ab initio on the following grounds: (a) they
SUGGESTED ANSWER: had not given their consent to the marriage of their son;
Since the joint will is void, all the testamentary dispositions (b) there was no marriage license; (c) the solemnizing
written therein are also void. However, it the will is valid, the officer had no authority to perform the marriage; and, (d)
institutions of heirs shall be annulled because Joshur was the solemnizing officer did not file an affidavit of marriage
preterited. He was preterited because he will receive nothing with the proper civil registrar. Does Irma have any
from the will, will receive nothing by intestacy, and the facts successional rights at all? Discuss fully. (1995, 1999)
do not show that he received anything as an advance on his
inheritance. He was totally excluded from the inheritance of SUGGESTED ANSWER:
his parents. Irma succeeded to the estate of Isidro as his surviving
spouse to the estate of her legitimate child. When Isidro
died, he was succeeded by his surviving wife Irma, and his
legitimate unborn child. They divided the estate equally
c. Is the testamentary prohibition against the division
between them, the child excluding the parents of Isidro. An
of the London estate valid? Explain.
unborn child is considered born for all purposes favorable to
it provided it is born later. The child was considered born
because, having an intra-uterine life of more than seven
Assuming the will of John and Maria is valid, the
months, it lived for a few minutes after its complete
testamentary prohibition on the division of the London
delivery. It was legitimate because it was born within the
estate shall be valid but only for 20 years. Under Articles 1083
valid marriage of the parents. Succession is favorable to it.
and 494 of the NCC, a testamentary disposition of the
When the child died, Irma inherited the share of the child.
testator cannot forbid the partition of all or part of his estate
However, the share of the child in the hands of Irma is
for a period longer than twenty (20) years.
subject to reserva troncal for the benefit of the relatives of
the child within the third degree of consanguinity and who
Ricky and Arlene are married. They begot Franco during
belong to the line of Isidro.
their marriage. Franco had an illicit relationship with
Audrey and out of which, they begot Arnel. Frnaco
F had three (3) legitimate children: A, B, and C. B has one
predeceased Ricky, Arlene and Arnel. Before Ricky died, he
(1) legitimate child X. C has two (2) legitimate children: Y
executed a will which when submitted to probate was
and Z. F and A rode together in a car and perished together
opposed by Arnel on the ground that he should be given the
at the same time in a vehicular accident, F and A died,
share of his father, Franco. Is the opposition of Arnel
each of them leaving substantial estates in intestacy.
correct? Why? (2012)
a) Who are the intestate heirs of F? What are their
respective fractional shares?
SUGGESTED ANSWER: b) Who are the intestate heirs of A? What are their
respective fractional shares?
No, his opposition is not correct. Arnel cannot inherit from c) If B and C both predeceased F, who are F’s intestate
Ricky in representation of his father Franco. The heirs? What are their respective fractional shares? Do they
representative must not only be a legal heir of the person he inherit in their own right or by representation? Explain
is representing, he must also be a legal heir at the decedent your answer.
he seeks to inherit from. d) If B and C both repudiated their shares in the estate of F
who are F's intestate heirs? What are their respective
While Arnel is a legal heir of Franco, he is not a legal heir of
fractional shares? Do they inherit in their own right or by
Ricky because under Article 992 of the NCC, an illegitimate
representation? Explain your answer. (1992, 2008)
child has no right to inherit ab intestate from the legitimate
children and relatives of his father or mother. Arnel is
disqualified to Inherit from Ricky because Arnel is an
(a) B = 1/2
illegitimate child of Franco and Ricky is a legitimate relative
(b) B = 1/2, Z = 1/4 by representation of C C= 1/2
of Franco.
Article 982 of the Civil Code provides that grandchildren
II. Legal or Intestate Succession inherit by right of representation.
(c) X = 1/2 by representation of B C=l/2 Y = ¼ by
Isidro and Irma, Filipinos, both 18 years of age, were representation of C
passengers of Flight No. 317 of Oriental Airlines. The plane (d) X - 1/3 in his own right Y- 1/3 in his own right 2 - 1/3 in his
they boarded was of Philippine registry. While en route own right Article 977 of the Civil Code provides that heirs
from Manila to Greece some passengers hijacked the plane, who repudiate their share cannot be represented.
held the chief pilot hostage at the cockpit and ordered him
to fly instead to Libya. During the hijacking Isidro suffered a Enrique died, leaving a net hereditary estate of P1.2 million.
heart attack and was on the verge of death. Since Irma was He is survived by his widow, three legitimate children, two
already eight months pregnant by Isidro, she pleaded to the legitimate grandchildren sired by a legitimate child who
hijackers to allow the assistant pilot to solemnize her predeceased him, and two recognized illegitimate children.
marriage with Isidro. Soon after the marriage, Isidro Distribute the estate in intestacy. (1997, 1998, 2003)
expired. As the plane landed in Libya Irma gave birth.


SUGGESTED ANSWER: Dr. Lopez, a 70-year old widower, and his son Roberto both
Under the theory of Concurrence, the shares are as follows: A died in a fire that gutted their home while they were
(legitimate child) = P200,000 sleeping in their air-conditioned rooms. Roberto’s wife,
B (legitimate child) = P200,000 Marilyn, and their two children were spared because they
C (legitimate child) = P200,000 were in the province at the time. Dr. Lopez left an estate
D (legitimate child) = O (predeceased] worth P20M and a life insurance policy in the amount of
E (legitimate child of D) = P100,000 - by right of representation P1M with his three children --- one of whom is Roberto ---
F (legitimate child of D) = P100,000 - by right of representation as beneficiaries. Marilyn is now claiming for herself and her
G (illegitimate child) = P100,000 - 1/2 share of the legitimate children her husband’s share in the estate left by Dr. Lopez,
child H (illegitimate child) = P100,000 - 1/2 share of the and her husband’s share in the proceeds of Dr. Lopez’s life
legitimate child W (Widow) = P200.000 - same share as insurance policy. Rule on the validity of Marilyn’s claims
legitimate child with reasons. (1999, 2009)

Tessie died survived by her husband Mario, and two nieces, SUGGESTED ANSWER:
Michelle and Jorelle, who are the legitimate children of an As to the estate of Dr. Lopez:
elder sister who had predeceased her. The only property she
left behind was a house and lot worth two million pesos, Marilyn is not entitled to a share in the estate of Dr. Lopez.
which Tessie and her husband had acquired with the use of For purposes of succession, Dr. Lopez and his son Roberto are
Mario's savings from his income as a doctor. How much of presumed to have died at the same time, there being no
the property or its value, if any, may Michelle and Jorelle evidence to prove otherwise, and there shall be no
claim as their hereditary shares? (1998) transmission of rights from one to the other (Article 43, NCC).
Hence, Roberto inherited nothing form his father that
SUGGESTED ANSWER: Marilyn would in turn inherit from Roberto. The children of
Article 1001 of the Civil Code provides, "Should brothers Roberto, however, will succeed their grandfather, Dr. Lopez,
and sisters or their children survive with the widow or in representation of their father Roberto and together will
widower, the latter shall be entitled to one-half of the receive 1/3 of the estate of Dr. Lopez since their father
inheritance and the brothers and sisters or their children to Roberto was one of the three children of Dr. Lopez. Marilyn
the other half." Tessie's gross estate consists of a house and cannot represent her husband Roberto because the right is
lot acquired during her marriage, making it part of the not given by law to a surviving spouse.
community property. Thus, one-half of the said property
would have to be set aside as Mario's conjugal share from the As to the proceeds of the insurance on the life of Dr. Lopez:
community property. The other half, amounting to one million
pesos, is her conjugal share (net estate), and should be
Since succession is not involved as regards the insurance
distributed to her intestate heirs. Applying the above
contract, the provisions of the Rules of Court on survivorship
provision of law, Michelle and Jorelle, Tessie's nieces, are
shall apply. Under the Rules, Dr. Lopez, who was 70 years old,
entitled to one-half of her conjugal share worth one million
is presumed to have died ahead of Roberto, who is
pesos, or 500,000 pesos, while the other one-half amounting
presumably between the ages of 15 and 60. Having survived
to P500,000 will go to Mario, Tessie's surviving spouse.
the insured, Roberto’s right as a beneficiary became vested
Michelle and Jorelle are then entitled to P250,000 pesos each
upon the death of Dr. Lopez. When Roberto died after Dr.
as their hereditary share.
Lopez, his right to receive the insurance proceeds became
part of his hereditary estate, which in turn was inherited in
Eugenio died without issue, leaving several parcels of land
equal shares by his legal heirs, namely, his spouse and
in Bataan. He was survived by Antonio, his legitimate
children. Therefore, Roberto’s children and his spouse are
brother; Martina, the only daughter of his predeceased sister
entitled to Roberto’s one-third share in the insurance
Mercedes; and five legitimate children of Joaquin, another
predeceased brother. Shortly after Eugenio's death, Antonio
also died, leaving three legitimate children. Subsequently,
A is the acknowledged natural child of B who died when A
Martina, the children of Joaquin and the children of
was already 22 years old. When B's full blood brother, C,
Antonio executed an extrajudicial settlement of the estate of
died he (C) was survived by his widow and four children of
Eugenio, dividing it among themselves. The succeeding year,
his other brother D. Claiming that he is entitled to inherit
a petition to annul the extrajudicial settlement was filed by
from his father's brother C. A brought suit to obtain his
Antero, an illegitimate son of Antonio, who claims he is
share in the estate of C. Will his action prosper? (1993)
entitled to share in the estate of Eugenio. The defendants
filed a motion to dismiss on the ground that Antero is
barred by Article 992 of the Civil Code from inheriting
No, the action of A will not prosper. On the premise that B, C
from the legitimate brother of his father. How will you
and D are legitimate brothers, as an illegitimate child of B, A
resolve the motion? (2000)
cannot inherit in intestacy from C who is a legitimate
brother of B. Only the wife of C in her own right and the
legitimate relatives of C (i.e. the children of D as C's legitimate
The motion to dismiss should be granted. Article 992 does
nephews inheriting as collateral relatives) can inherit in
not apply. Antero is not claiming any inheritance from
intestacy. (Arts. 992, 1001, 1OO5 and 975, Civil Code)
Eugenio. He is claiming his share in the inheritance of his
father consisting of his father's share in the inheritance of
Cristina the illegitimate daughter of Jose and Maria, died
Eugenio (Dela Merced v. Dela Merced, Gr No. 126707, 25
intestate, without any descendant or ascendant. Her valuable
February 1999).
estate is being claimed by Ana, the legitimate daughter of
Jose, and Eduardo, the legitimate son of Maria. Is either,
*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 46
both, or neither of them entitled to inherit? Explain. the will was signed on the same occasion by Arthur and his
(1996) instrumental witnesses who all signed in the presence of
each other, and the notary public who notarized the will.
SUGGESTED ANSWER: There are no marginal signatures or pagination appearing
Neither Ana nor Eduardo is entitled to inherit of ab intestato on any of the 3 pages. Upon his death, it was discovered
from Cristina. Both are legitimate relatives of Cristina's that apart from the house and lot, he had a P 1 million
illegitimate parents and therefore they fall under the account deposited with ABC bank. (2008)
prohibition prescribed by Art. 992, NCC (Manuel v. Ferrer, a. Was Erica preterited?
242 SCRA 477; Diaz v. Court of Appeals, 182 SCRA 427). b. What other defects of the will, if any, can cause
denial of probate?
For purpose of this question, assume all formalities and c. Was the disinheritance valid?
procedural requirements have been complied with. In 1970, d. How should the house and lot, and the cash be
Ramon and Dessa got married. Prior to their marriage, distributed?
Ramon had a child, Anna. In 1971 and 1972, Ramon and
Dessa legally adopted Cherry and Michelle respectively. In SUGGESTED ANSWER:
1973, Dessa died while giving birth to Larry Anna had a a. No, Erica was not preterited under Art. 854 of the
child, Lia. Anna never married. Cherry, on the other hand, New Civil Code because she was not related in the
legally adopted Shelly. Larry had twins, Hans and Gretel, direct line. Moreover, since there is an intestate
with his girlfriend, Fiona. In 2005, Anna, Larry and Cherry portion in Arthur’s estate from which Erica will
died in a car accident. In 2007, Ramon died. Who may inherit as an intestate heir, she was not totally
inherit from Ramon and who may not? Give your reason excluded or omitted from the inheritance of Arthur.
brieftly. (2007) To be preterited, the heir who must be a compulsory
heir in the direct line should be totally excluded
III. Provisions Common to Testate and Intestate from the inheritance, i.e., the heir will not receive
Succession anything by will, or by intestacy, and has not
received any advance by way of donation inter
Maria, to spite her husband Jorge, whom she suspected was Even assuming that Erica was preterited, her
having an affair with another woman, executed a will, preterition will not have any effect on the provisions
unknown to him, bequeathing all the properties she of the will. The effect of preterition is simply to
inherited from her parents, to her sister Miguela. Upon her annul the institution of an heir made in the will.
death, the will was presented for probate. Jorge opposed Legacies and devises are respected unless they are
probate of the will on the ground that the will was executed inofficious. In the problem, since the will contains
by his wife without his knowledge, much less consent, and nothing but a devise, there is no institution that will
that it deprived him of his legitime. After all, he had given be annulled even on the assumption that there was
her no cause for disinheritance, added Jorge in his preterition.
opposition. How will you rule on Jorge's opposition to the b. There are no other defects of the will that can cause
probate of Maria's will. If you were the Judge? (1993) the denial of the probate. Art. 805 of the Civil Code
provides that the will must be subscribed at the end
SUGGESTED ANSWER: thereof by the testator, and subscribed by three or
As Judge, I shall rule as follows: Jorge's opposition should be more credible witnesses in the presence of the
sustained in part and denied in part. Jorge's omission as testator and on one another. The driver, the cook
spouse of Maria is not preterition of a compulsory heir in and the lawyer who prepared the will are credible
the direct line. Hence, Art. 854 of the Civil Code does not witnesses. The testator and the instrumental
apply, and the institution of Miguela as heir is valid, but only witnesses of the will, shall also sign, each and every
to the extent of the free portion of one-half. Jorge is still page of the will proper, except the last, on the left
entitled to one-half of the estate as his legitime. (Art. 1001, margin, and all the pages shall be numbered
Civil Code) correlatively in letter placed on the upper part of
each page.
Arthur executed a will which contained only: (i) a provision It has been held, however, that the testator’s
disinheriting his daughter Bernica for running off with a signature is not necessary in the attestation clause,
married man, and (ii) a provision disposing of his share in and that if a will consists of two sheets, the first of
the family house and lot in favor of his other children which contains the testamentary dispositions, and is
Connie and Dora. He did not make any provisions in favor signed at the bottom by the testator and the three
of his wife Erica, because as the will stated, she would witnesses, and the second sheet contains the
anyway get ½ of the house and lot as her conjugal share. attestation clause, as in this case, signed by 3
The will was very brief and straightforward and both the witnesses, marginal signatures and paging are not
above provisions were contained in page 1, which Arthur necessary. After all, the object of the law is to avoid
and his instrumental witness, signed at the bottom. Page 2 substitution of any of the sheets of the will.
contained the attestation clause and the signatures, at the (Abangan v. Abangan, 40 Phil. 476 [1919]; In Re:
bottom thereof, of the 3 instrumental witnesses which Will of Tan Diuco, 45 Phil 807 [1924]).
included Lambert, the driver of Arthur; Yoly, the family c. The fact that the daughter disinherited ran off with
cook, and Attorney Zorba, the lawyer who prepared the a married man is a valid ground of disinheritance
will. There was a 3rd page, but this only contained the under the Civil Code. One ground for disinheritance
notarial acknowledgement. The attestation clause stated of a descendant is when the descendant leads a


dishonourable or disgraceful life (Art. 919[7], CC. compulsory heirs since they are not included in the
running away with a married man leads to a enumeration under Article 887 of the Civil Code.
dishonourable or disgraceful life. The remaining balance of P300,000.00 is the free portion
which can be given to the illegitimate child Ramon as an
d. On the assumption that the house and lot and the instituted heir. (Art. 914, Civil Code) If so given by the
Cash were all conjugal property, the distribution will decedent, Ramon would receive a total of P400,000.00.
be as follows:
House and Lot Four children, namely: Alberto, Baldomero, Caridad, and
One half of the house shall be conjugal share of Erica. The Dioscoro, were born to the spouses Conrado and Clarita de
other half is the conjugal share of Arthur which was inherited la Costa. The children’s birth certificates were duly signed
by Erica, Connie and Dora will be undivided co-owners of the by Conrado, showing them to be the couple’s legitimate
house and lot with Erica getting 2/3 share thereof and Connie children. Later, one Edilberto de la Cruz executed a notarial
and Dora with 1/6 share each. document acknowledging Alberto and Baldomero as his
Cash illegitimate children with Clarita. Edilberto died leaving
The one million cash shall be divided in the same manner. ½ substantial properties. In the settlement of his estate,
thereof or 500,000 shall be conjugal share of Erica while Alberto and Baldomero intervened claiming shares as the
500,000 shall be share of Arthur. This amount shall be divided deceased’s illegitimate children. The legitimate family of
in 3 equal shares, or 166, 666.66 per share. Erica will get Edilberto opposed the claim. Are Alberto and Baldomero
166,666.66 as her share, while Dora and Connie will get entitled to share in the estate of Edilberto? Explain. (2009)
166,666.66 each as their inheritance.

Mr. Palma, widower, has three daughters D, D-l and D-2. SUGGESTED ANSWER:
He executes a Will disinheriting D because she married a
man he did not like, and instituting daughters D-1 and D-2 No, Alberto and Baldomero are not entitled to share in
as his heirs to his entire estate of P 1,000,000.00, Upon Mr, Edilberto’s estate. They are not related at all to Edilberto.
Palma's death, how should his estate be divided? Explain. They were born during the marriage of Conrado and Clarita,
(1999, 2000) hence, are considered legitimate children of the said
spouses. This status is conferred on them at birth by law.
This is a case of ineffective disinheritance because marrying a
Under Philippine law, a person cannot have more than one
man that the father did not approve of is not a ground for
natural filiation. The legitimate filiation of a person can be
disinheriting D. Therefore, the institution of D-l and D-2 shall
changed only if the legitimate father will successfully impugn
be annulled insofar as it prejudices the legitime of D, and the
such status.
institution of D-l and D-2 shall only apply on the free portion
in the amount of P500,000.00. Therefore, D, D-l and D-2 will
In the problem, therefore, the filiation of Alberto ad
get their legitimes of P500.000.00 divided
Baldomero as the legitimate children of Conrado cannot be
into three equal parts and D-l and D-2 will get a reduced
changed by their recognition by Edilberto as his illegitimate
testamentary disposition of P250,000.00 each. Hence, the
children. Before they can be conferred the status of
shares will be:
Edilberto’s illegitimate children, Conrado must first impugn
D P166,666.66
their legitimacy. Since Conrado has not initiated any action to
D-l P166,666.66 + P250.000.00
impugn their legitimacy, they continue to be the legitimate
D-2 P166,666.66 + P250,000.00
children of Conrado. They cannot be the illegitimate children
of Edilberto at the same time. Not being the illegitimate
Emil, the testator, has three legitimate children, Tom, Henry
children of Edilberto, they have no right to inherit from him.
and Warlito; a wife named Adette; parents named Pepe and
Pilar; an illegitimate child, Ramon; brother, Mark; and a
sister, Nanette. Since his wife Adette is well-off, he wants to Because her eldest son Juan had been pestering her for
leave to his illegitimate child as much of his estate as he can capital to start a business, Josefa gave him P100,000. Five
legally do. His estate has an aggregate net amount of years later, Josefa died, leaving a last will and testament in
Pl,200,000.00, and all the above-named relatives are still which she instituted only her four younger children as her
living. Emil now comes to you for advice in making a will. How sole heirs. At the time of her death, her only properly left
will you distribute his estate according to his wishes was P900,000.00 in a bank. Juan opposed the will on the
without violating the law on testamentary succession? (2005) ground of preterition. How should Josefa's estate be divided
among her heirs? State briefly the reason(s) for your answer.
P600,000.00 — legitime to be divided equally between Tom,
Henry and Warlito as the legitimate children. Each will be SUGGESTED ANSWER:
entitled to P200,000.00. (Art. 888, Civil Code) P100,000.00 -- There was no preterition of the oldest son because the
share of Ramon the illegitimate child. Equivalent to 1/2 testatrix donated 100,000 pesos to him. This donation is
of the share of each legitimate child. (Art. 176, Family Code) considered an advance on the son's inheritance. There being
P200,000.00 — Adette the wife. Her share is equivalent to no preterition, the institutions in the will shall be respected
the share of one legitimate child. (Art. 892, par. 2, Civil but the legitime of the oldest son has to be completed if he
Code). Pepe and Pilar, the parents are only secondary received less. After collating the donation of P100.000 to the
compulsory heirs and they cannot inherit if the primary remaining property of P900,000, the estate of the
compulsory heirs (legitimate children) are alive. (Art. 887, testatrix is P1,000,000. Of this amount, one-half or
par. 2, Civil Code). Brother Mark and sister Nanette are not P500,000, is the legitime of the legitimate children and it

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 48
follows that the legitime of one legitimate child is a) Is the dissolution done by Patricia and Priscilla
P100,000. The legitime, therefore, of the oldest son is without the consent of Pauline or Philip valid?
P100,000. However, since the donation given him was Explain.
P100,000, he has already received in full his legitime and he
will not receive anything anymore from the decedent. The SUGGESTED ANSWER:
remaining P900,000, therefore, shall Under Art. 1830 (1) (c) of the NCC, the dissolution by Patricia
go to the four younger children by institution in the will, to be and Priscilla is valid and did not violate the contract of
divided equally among them. Each will receive P225,000. partnership even though Pauline and Philip did not consent
thereto. The consent of Pauline is not necessary because
For purposes of succession, when is death deemed to occur she had already assigned her interest to Philip. The consent
or take place? May succession be conferred by contracts or of Philip is not also necessary because the assignment to
acts inter vivos? Illustrate. Is there any law which allows him of Pauline's interest did not make him a partner, under
the delivery to compulsory heirs of their presumptive Art, 1813 of the NCC.
legitimes during the lifetime of their parents? If so, in what
instances? (1991) b) Does Philip have any right to petition for the
dissolution of the partnership before the
PARTNERSHIP expiration of its specified term? Explain.

I. Contract of Partnership SUGGESTED ANSWER:

No, Philip has no right to petition for dissolution because
Can a husband and wife form a limited partnership to he does not have the standing of a partner (Art. 1813 NCC).
engage in real estate business, with the wife being a
limited partner? Can two corporations organize a general A, B and C formed a partnership for the purpose of
partnership under the Civil Code of the Philippines? Can a contracting with the Government in the construction of one
corporation and an individual form a general of its bridges. On June 30, 1992, after completion of the
partnership? (1994) project, the bridge was turned over by the partners to the
Dielle, Karlo and Una are general partners in a Government. On August 30, 1992, D, a supplier of
merchandising firm. Having contributed equal amounts to materials used in the project sued A for collection of the
the capital, they also agree on equal distribution of whatever indebtedness to him. A moved to dismiss the complaint
net profit is realized per fiscal period. After two years of against him on the ground that it was the ABC partnership
operation, however, Una conveys her whole interest in the that is liable for the debt. D replied that ABC partnership
partnership to Justine, without the knowledge and consent was dissolved upon completion of the project for which
of Dielle and Karlo. (1998) purpose the partnership was formed. Will you dismiss the
a) Is the partnership dissolved? complaint against A If you were the Judge? (1993)


No, a conveyance by a partner of his whole interest in a As Judge, I would not dismiss the complaint against A
partnership does not of itself dissolve the partnership in the because A is still liable as a general partner for his pro rata
absence of an agreement. (Art. 1813. Civil Code) share of 1/3 (Art. 1816, C. C.J. Dissolution of a partnership
caused by the termination of the particular undertaking
b) What are the rights of Justine, if any, should she specified in the agreement does not extinguish obligations,
desire to participate in the management of the which must be liquidated during the "winding up" of the
partnership and in the distribution of a net profit partnership affairs (Articles 1829 and 1830. par. 1-a, Civil
of P360.000.00 which was realized after her Code).
purchase of Una's interest?
A partner cannot demand the return of his share
SUGGESTED ANSWER: (contribution) during the existence of a partnership. Do you
Justine cannot interfere or participate in the management agree? Explain your answer. (2012)
or administration of the partnership business or affairs. She
may, however, receive the net profits to which Una would Stating briefly the thesis to support your answer to each of
have otherwise been entitled. In this case, P120.000 (Art. 1813, the following cases: will the death of a partner terminate
Civil Code) the partnership? (1997)

Pauline, Patricia and Priscilla formed a business partnership W, X, Y and Z organized a general partnership with W and X
for the purpose of engaging in neon advertising for a term as industrial partners and Y and Z as capitalist partners. Y
of five (5) years. Pauline subsequently assigned to Philip her contributed P50,000.00 and Z contributed P20,000.00 to
interest in the partnership. When Patricia and Priscilla the common fund. By a unanimous vote of the partners, W
learned of the assignment, they decided to dissolve the and X were appointed managing partners, without any
partnership before the expiration of its term as they had an specification of their respective powers and duties. A applied
unproductive business relationship with Philip in the past. for the position of Secretary and B applied for the position of
On the other hand, unaware of the move of Patricia and Accountant of the partnership. The hiring of A was decided
Priscilla but sensing their negative reaction to his acquisition upon by W and X, but was opposed by Y and Z. The hiring
of Pauline's interest, Philip simultaneously petitioned for the of B was decided upon by W and Z, but was opposed by X
dissolution of the partnership. (1995) and Y. Who of the applicants should be hired by the
partnership? Explain and give your reasons. (1992)



SUGGESTED ANSWER: Richard sold a large parcel of land in Cebu to Leo for P100
A should be hired as Secretary. The decision for the hiring of million payable in annual installments over a period of ten
A prevails because it is an act of administration which can years, but title will remain with Richard until the purchase
be performed by the duly appointed managing partners, W price is fully paid. To enable Leo to pay the price, Richard
and X. B cannot be hired, because in case of a tie in the decision gave him a power-of-attorney authorizing him to subdivide
of the managing partners, the deadlock must be decided by the land, sell the individual lots, and deliver the proceeds to
the partners owning the controlling interest. In this case, Richard, to be applied to the purchase price. Five years later,
the opposition of X and Y prevails because Y owns the Richard revoked the power of attorney and took over the
controlling Interest (Art. 1801, Civil Code). sale of the subdivision lots himself. Is the revocation valid
or not? Why? (2001)
Joe and Rudy formed a partnership to operate a car repair
shop in Quezon City. Joe provided the capital while Rudy SUGGESTED ANSWER:
contributed his labor and industry. On one side of their The revocation is not valid. The power of attorney given to the
shop, Joe opened and operated a coffee shop, while on the buyer is irrevocable because it is coupled with an interest:
other side, Rudy put up a car accessories store. May they the agency is the means of fulfilling the obligation of the
engage in such separate businesses? Why? (2001) buyer to pay the price of the land (Article 1927, CC). In other
words, a bilateral contract (contract to buy and sell the land)
SUGGESTED ANSWER: is dependent on the agency.
Joe, the capitalist partner, may engage in the restaurant
business because it is not the same kind of business the As an agent, AL was given a guarantee commission, in
partnership is engaged in. On the other hand, Rudy may not addition to his regular commission, after he sold 20 units of
engage in any other business unless their partnership refrigerators to a customer, HT Hotel. The customer,
expressly permits him to do so because as an industrial however, failed to pay for the units sold. AL’s principal,
partner he has to devote his full time to the business of the DRBI, demanded from AL payment for the customer’s
partnership [Art. 1789, CC). accountability. AL objected, on the ground that his job was
only to sell and not to collect payment for units bought by
AGENCY the customer. Is AL’s objection valid? Can DRBI collect
from him or not? Reason. (2004)
I. Definition of Agency
Jo-Ann asked her close friend, Aissa, to buy some groceries No, AL's objection is not valid and DRBI can collect from AL.
for her in the supermarket. Was there a nominate contract Since AL accepted a guarantee commission, in addition to his
entered into between Jo-Ann and Aissa? In the affirmative, regular commission, he agreed to bear the risk of
what was it? Explain. (2003) collection and to pay the principal the proceeds of the sale
on the same terms agreed upon with the purchaser (Article
SUGGESTED ANSWER: 1907, Civil Code)
Yes, there was a nominate contract. On the assumption
that Aissa accepted the request of her close friend Jo-Ann to CX executed a special power of attorney authorizing DY to
but some groceries for her in the supermarket, what they secure a loan from any bank and to mortgage his property
entered into was a nominate contract of Agency. Article covered by the owner’s certificate of title. In securing a loan
1868 of the New Civil Code provides that by the contract of from MBank, DY did not specify that he was acting for CX in
agency a person binds himself to render some service or to the transaction with said bank. Is CX liable for the bank loan?
do something in representation or on behalf of another, Why or why not? Justify your answer. (2004)
with the consent or authority of the latter. SUGGESTED ANSWER:
CX is liable for the bank loan because he authorized the
A foreign manufacturer of computers and a Philippine mortgage on his property to secure the loan contracted by
distributor entered into a contract whereby the distributor DY. If DY later defaults and fails to pay the loan, CX is liable
agreed to order 1,000 units of the manufacturer's computers to pay. However, his liability is limited to the extent of the
every month and to resell them in the Philippines at the value of the said property.
manufacturer's suggested prices plus 10%. All unsold units
at the end of the year shall be bought back by the X appoints Y as his agent to sell his products in Cebu City.
manufacturer at the same price they were ordered. The Can Y appoint a sub-agent and if he does, what are the
manufacturer shall hold the distributor free and harmless effects of such appointment? (1999)
from any claim for defects in the units. Is the agreement
one for sale or agency? (2000) A as principal appointed B as his agent granting him general
SUGGESTED ANSWER: and unlimited management over A's properties, stating that
The contract is one of agency, not sale. The notion of sale is A withholds no power from B and that the agent may
negated by the following indicia: (1) the price is fixed by the execute such acts as he may consider appropriate.
manufacturer with the 10% mark-up constituting the Accordingly, B leased A's parcel of land in Manila to C for
commission; (2) the manufacturer reacquires the unsold four (4) years at P60,000.00 per year, payable annually in
units at exactly the same price; and (3) warranty for the units advance. B leased another parcel of land of A in Caloocan
was borne by the manufacturer. The foregoing City to D without a fixed term at P3,000.00 per month
indicianegate sale because they indicate that ownership payable monthly. B sold to E a third parcel of land belonging
over the units was never intended to transfer to the to A located in Quezon City for three (3) times the price that
distributor. was listed in the inventory by A to B. All those contracts

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 50
were executed by B while A was confined due to illness in onrush of Lahar from Mt Pinatubo, the Jeep that was
the Makati Medical Center. Rule on the validity and loaned to him was wrecked. (1993)
binding effect of each of the above contracts upon A the a) What do you call the contract that was
principal. Explain your answers. (1992) entered into by A and B with respect to the
passenger Jeepney that was loaned by A to B
SUGGESTED ANSWER: to transport the latter's sick wife to Manila?
The agency couched in general terms comprised only acts of
administration (Art. 1877, Civil Code). The lease contract on SUGGESTED ANSWER:
the Manila parcel is not valid, not enforceable and not The contract is called "commodatum". [Art. 1933. Civil Code).
binding upon A. For B to lease the property to C, for more than COMMODATUM is a contract by which one of the parties
one (1) year, A must provide B with a special power of attorney (bailor) delivers to another (bailee) something not
(Art. 1878. Civil Code). The lease of the Caloocan City consumable so that the latter may use it for a certain time
property to D is valid and binding upon A. Since the lease is and return it.
without a fixed term, it is understood to be from month to
month, since the rental is payable monthly (Art. 1687, Civil b) Is B obliged to pay A for the use of the
Code). The sale of the Quezon City parcel to E is not valid and passenger jeepney?
not binding upon A. B needed a special power of attorney
to validly sell the land (Arts. 1877 and 1878, Civil Code). The SUGGESTED ANSWER:
sale of the land at a very good price does not cure the defect No, B is not obliged to pay A for the use of the
of the contract arising from lack of authority passenger Jeepney because commodatum is essentially
gratuitous. (Art. 1933. Civil Code]
Prime Realty Corp. appointed Nestor the exclusive agent in
the sale of lots of its newly developed subdivision. Prime c) Is B liable to A for the loss of the Jeepney?
Realty told Nestor that he could not collect or receive
payments from the buyers. Nestor was able to sell ten lots SUGGESTED ANSWER:
to Jesus and to collect the down payments for said lots. He Yes, because B devoted the thing to a purpose different from
did not turn over the collections to Prime Realty. Who shall that for which it has been loaned (Art. 1942, par. 2, Civil
bear the loss for Nestor's defalcation, Prime Realty or Jesus? Code)
Before he left for Riyadh to work as a mechanic, Pedro left
his Adventure van with Tito, with the understanding that
the latter could use it for one year for his personal or family
SUGGESTED ANSWER: use while Pedro works in Riyadh. He did not tell Tito that
The general rule is that a person dealing with an agent must the brakes of the van were faulty. Tito had the van tuned up
inquire into the authority of that agent. In the present case, if and the brakes repaired. He spent a total amount of
Jesus did not inquire into that authority, he is liable for the P15,000.00. After using the vehicle for two weeks, Tito
loss due to Nestor's defalcation unless Article 1900, Civil Code discovered that it consumed too much fuel. To make up for
governs, in which case the developer corporation bears the the expenses, he leased it to Annabelle. Two months later,
loss. Pedro returned to the Philippines and asked Tito to return
Art. 1900 Civil Code provides: "So far as third persons are the van. Unfortunately, while being driven by Tito, the van
concerned, an act is deemed to have been performed within was accidentally damaged by a cargo truck without his fault.
the scope of the agent's authority, if such act is within the (2005)
terms of the power of attorney, as written, even if the agent a) Who shall bear the P15,000.00 spent for the repair
has in fact exceeded the limits of his authority according to of the van? Explain.
an understanding between the principal and the agent.
However, if Jesus made due inquiry and he was not SUGGESTED ANSWER:
informed by the principal Prime Realty of the limits of Tito must bear the P15,000.00 expenses for the van.
Nestor's authority. Prime Realty shall bear the loss. Generally, extraordinary expenses for the preservation of
the thing loaned are paid by the bailor, he being the owner
Stating briefly the thesis to support your answer to each of of the thing loaned. In this case however, Tito should bear
the following cases, will the death of an agent end an the expenses because he incurred the expenses without first
agency? (1997) informing Pedro about it. Neither was the repair shown to be
urgent. Under Article 1949 of the Civil Code, bailor
CREDIT TRANSACTIONS generally bears the extraordinary expenses for the
preservation of the thing and should refund the said
I. Loan expenses if made by the bailee; Provided, The bailee brings
the same to the attention of the bailor before incurring
A, upon request, loaned his passenger Jeepney to B to them, except only if the repair is urgent that reply cannot be
enable B to bring his sick wife from Paniqui. Tarlac to the awaited.
Philippine General Hospital in Manila for treatment. On the
way back to Paniqui, after leaving his wife at the hospital, b) Who shall bear the costs for the van's fuel, oil and
people stopped the passenger Jeepney. B stopped for them other materials while it was with Tito? Explain.
and allowed them to ride on board, accepting payment from
them just as in the case of ordinary passenger Jeepneys SUGGESTED ANSWER:
plying their route. As B was crossing Bamban, there was an


Tito must also pay for the ordinary expenses for the use and judgment until judgment credit is fully paid. The court
preservation of the thing loaned. He must pay for the considers the latter as a forbearance of money. (Eastern
gasoline, oil, greasing and spraying. He cannot ask for Shipping Lines, Inc. v. CA, 234 SCRA 78 [1994]; Art 2210 and
reimbursement because he has the obligation to return the 2211, CC)
identical thing to the bailor. Under Article 1941 of the Civil
Code, the bailee is obliged to pay for the ordinary expenses The parties in a contract of loan of money agreed that the
for the use and preservation of the thing loaned. yearly interest rate is 12% and it can be increased if there is
a law that would authorize the increase of interest rates.
c) Does Pedro have the right to retrieve the van even Suppose OB, the lender, would increase by 5% the rate of
before the lapse of one year? Explain. interest to be paid by TY, the borrower, without a law
authorizing such increase, would OB’s action be just and
valid? Why? Has TY a remedy against the imposition of
SUGGESTED ANSWER: the rate increase? Explain. (2001, 2004)
No, Pedro does not have the right to retrieve the van before
the lapse of one year. The parties are mutually bound by the SUGGESTED ANSWER:
terms of the contract. Under the Civil Code, there are only 3 OB's action is not just and valid. The debtor cannot be
instances when the bailor could validly ask for the return of required to pay the increase in interest there being no law
the thing loaned even before the expiration of the period. authorizing it, as stipulated in the contract. Increasing the
These are when: (1) a precarium contract was entered rate in the absence of such law violates the principle of
(Article 1947); (2) if the bailor urgently needs the thing mutuality of contracts.
(Article 1946); and (3) if the bailee commits acts of
ingratitude (Article 1948). Not one of the situations is present Siga-an granted a loan to Villanueva in the amount of P 540,
in this case. The fact that Tito had leased the thing loaned to 000.00. Such agreement was not reduced to writing. Siga-
Annabelle would not justify the demand for the return of an demanded interest which was paid by Villanueva in cash
the thing loaned before expiration of the period. Under and checks. The total amount Villanueva paid accumulated
Article 1942 of the Civil Code, leasing of the thing loaned to P 1, 200, 000.00. Upon advice of her lawyer, Villanueva
to a third person not member of the household of the bailee, demanded for the return of the excess amount of P 660,
will only entitle bailor to hold bailee liable for the loss of the 000.00 which was ignored by Siga-an. (2012)
thing loaned.
a. Is the payment of interest valid? Explain.
d) Who shall bear the expenses for the accidental b. Is solution indebiti applicable? Explain
damage caused by the cargo truck, granting that
the truck driver and truck owner are insolvent?
a. No. Article 1966, Civil Code, provides that "no
SUGGESTED ANSWER: interest shall be due unless it has been expressly
Generally, extraordinary expenses arising on the occasion of stipulated In writing".
the actual use of the thing loaned by the bailee, even b. Yes, solutio indebiti is applicable because
ifincurred without fault of the bailee, shall be shouldered Villanueva overpaid by P660.000 representing
equally by the bailor and the bailee. (Art. 1949 of the Civil interest payment which is not due. He can,
Code). However, if Pedro had an urgent need for the therefore, demand its return.
vehicle, Tito would be in delay for failure to immediately
return the same, then Tito would be held liable for the II. Deposit
extraordinary expenses.
In order to secure a bank loan, XYZ Corporation
Distinguish usufruct from commodatum and state whether surrendered its deposit certificate, with a maturity date of 01
these may be constituted over consumable goods. (1998) September 1997 to the bank. The corporation defaulted on
the due repayment of the loan, prompting the bank to
Distinguish briefly but clearly between Mutuum and encash the deposit certificate. XYZ Corporation questioned
commodatum. (2004) the above action taken by the bank as being a case of
pactum commissorium. The bank disagrees. What is your
Carlos sues Dino for (a) collection on a promissory note for a opinion? (1997)
loan, with no agreement on interest, on which Dino
defaulted, and (b) damages caused by Dino on his (Carlos’)
priceless Michaelangelo painting on which Dino is liable on
the promissory note and awards damages to Carlos for the SUGGESTED ANSWER:
damaged painting, with interests for both awards. What We submit that there is no pactum commissorium here.
rates of interest may the court impose with respect to both Deposits of money in banks and similar institutions are
awards? Explain. (2002) governed by the provisions on simple loans (Art. 1980. Civil
Code). The relationship between the depositor and a bank is
SUGGESTED ANSWER: one of creditor and debtor. Basically this is a matter of
With respect to the collection of money or promissory note, it compensation as all the elements of compensation are
being a forbearance of money, the legal rate of interest for present in this case (BPI vs. CA, 232 SCRA 302).
having defaulted on the payment of 6% will apply. With
respect to the damages to the painting, it is 6% from the X and Y staged a daring bank robbery in Manila at 10:30
time of the final demand up to the time of finality of AM in the morning of a regular business day, and escaped

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 52
with their loot of two (2) bags, each bag containing A contract of antichresis was entered into between Olivia
P50,000,00. During their flight to elude the police, X and Y and Peter. Under Article 2132 of the New Civil Code, by a
entered the nearby locked house of A, then working in his contract of antichresis the creditor acquires the right to
Quezon City office. From A's house, X and Y stole a box receive the fruits of an immovable of his debtor, with the
containing cash totaling P50,000.00 which box A had been obligation to apply them to the payment of the interest,
keeping in deposit for his friend B. In their hurry, X and Y and thereafter to the principal of his credit.
left in A's bedroom one (1) of the bags which they had taken
from the bank. With X and Y now at large and nowhere to b) What specific obligations are imposed by law on
be found, the bag containing P50.000.00 is now claimed Peter as a consequence of their contract?
by B, by the Mayor of Manila, and by the bank. B claims that
the depository. A, by force majeure had obtained the bag SUGGESTED ANSWER:
of money in place of the box of money deposited by B. The Peter must pay taxes and charges upon the land and bear
Mayor of Manila, on the other hand, claims that the bag the necessary expenses for preservation and repair which he
of money should be deposited with the Office of the may deduct from the fruits. (Art, 2135, NCC)
Mayor as required of the finder by the provisions of the
Civil Code. The bank resists the claims of B and the Mayor of c) Does the law require any specific form for the
Manila. To whom should a deliver the bag of money? validity of their contract? Explain
Decide with reasons. (1992)
SUGGESTED ANSWER: The amount of the principal and interest must be
B would have no right to claim the money. Article 1990 of the specified in writing, otherwise the antichresis will be void.
Civil Code is not applicable. The law refers to another thing (Art. 2134, NCC)
received in substitution of the object deposited and is
predicated upon something exchanged. The Mayor of Manila d) May Olivia re-acquire the plantation before her
cannot invoke Article 719 of the Civil Code which requires the entire indebtedness shall have been fully paid?
finder to deposit the thing with the Mayor only when the Explain.
previous possessor is unknown. In this case, a must return the
bag of money to the bank as the previous possessor and SUGGESTED ANSWER:
known owner (Arts. 719 and 1990. Civil Code.) No. Art. 2136 specifically provides that the debtor cannot
re-acquire the enjoyment of the immovable without first
III. Guaranty and Suretyship having totally paid what he owes the creditor. However, it
is potestative on the part of the creditor to do so in order to
AB sold to CD a motor vehicle for and in consideration of exempt him from his obligation under Art. 2135, NCC, The
P120,000.00 to be paid in twelve monthly equal installments debtor cannot re-acquire the enjoyment unless Peter
of P10,000,00, each installment being due and payable on compels Olivia to enter again the enjoyment of the property.
the 15th day of each month starting January 1997. To secure
the promissory note, CD (a) executed a chattel mortgage V. Pledge
on the subject motor vehicle, and (b) furnished a surety
bond issued by Philam life, CD failed to pay more than two In 1982, Steve borrowed P400.000.00 from Danny,
(2) installments, AB went after the surety but he was only collateralized by a pledge of shares of stock of Concepcion
able to obtain three-fourths (3/4) of the total amount Corporation worth P800,000,00. In 1983, because of the
still due and owing from CD. AB seeks your advice on how he economic crisis, the value of the shares pledged fell to only
might, if at all, recover the deficiency. How would you counsel P100,000.00. Can Danny demand that Steve surrender the
AB? (1997) other shares worth P700,000.00? (1994)


Yes, he can recover the deficiency. The action of AB to go No. Danny's right as pledgee is to sell the pledged shares
after the surety bond cannot be taken to mean a waiver of at a public sale and keep the proceeds as collateral for the
his right to demand payment for the whole debt, The loan. There is no showing that the fall in the value of the
amount received from the surety is only payment pro tanto, pledged property was attributable to the pledger's fault or
and an action may be maintained for a deficiency debt. fraud. On the contrary, the economic crisis was the
culprit. Had the pledgee been deceived as to the substance
IV. ANTICHRESIS or quality of the pledged shares of stock, he would have had
the right to claim another thing in their place or to the
Olivia owns a vast mango plantation which she can no immediate payment of the obligation. This is not the case
longer properly manage due to a lingering illness. Since she here.
is indebted to Peter in the amount of P500.000.00 she asks
Peter to manage the plantation and apply the harvest to the ABC loaned to MNO P40,000 for which the latter pledged
payment of her obligation to him, principal and interest, 400 shares of stock in XYZ Inc. It was agreed that if the
until her indebtedness shall have been fully paid. Peter pledgor failed to pay the loan with 10% yearly interest
agrees. (1995) within four years, the pledgee is authorized to foreclose on
a) What kind of contract is entered into between the shares of stock. As required, MNO delivered
Olivia and Peter? Explain. possession of the shares to ABC with the understanding
that the shares would be returned to MNO upon the
SUGGESTED ANSWER: payment of the loan. However, the loan was not paid on


time. A month after 4 years, may the shares of stock SUGGESTED ANSWER:
pledged be deemed owned by ABC or not? Reason. (2004) No, the clause in question is not a pactum
commissorium. It is pactum commissorium when default
SUGGESTED ANSWER: in the payment of the loan automatically vests ownership
The shares of stock cannot be deemed owned by ABC upon of the encumbered property in the bank. In the problem
default of MNO. They have to be foreclosed. Under Article given, the bank does not automatically become owner of the
2088 of the Civil Code, the creditor cannot appropriate the property upon default of the mortgagor. The bank has to
things given by way of pledge. And even if the parties have sell the property and apply the proceeds to the indebtedness.
stipulated that ABC becomes the owner of the shares in
case MNO defaults on the loan, such stipulation is void for X borrowed money from Y and gave a piece of land as
being a pactum commissorium. security by way of mortgage. It was expressly agreed
between the parties in the mortgage contract that upon
In the province, a farmer couple borrowed money from the nonpayment of the debt on time by X, the mortgaged land
local merchant. To guarantee payment, they left the Torrens would already belong to Y. If X defaulted in paying, would Y
Title of their land with the merchant, for him to hold until now become the owner of the mortgaged land? Why?
they pay the loan. Is there a -
a) contract of pledge, SUGGESTED ANSWER:
b) contract of mortgage, No, Y would not become the owner of the land. The
c) contract of antichresis, or stipulation is in the nature of pactum commissorium which is
d) none of the above? prohibited by law. The property should be sold at public
Explain. (1996) auction and the proceeds thereof applied to the
SUGGESTED ANSWER: indebtedness. Any excess shall be given to the mortgagor.
None of the above. There is no pledge because only movable
property may be pledged (Art. 2094. NCC). If at all, there Suppose in the preceding question, the agreement
was a pledge of the paper or document constituting the between X and Y was that if X failed to pay the
Torrens Title, as a movable by itself, but not of the land mortgage debt on time, the debt shall be paid with the land
which the title represents. There is no mortgage because no mortgaged by X to Y. Would your answer be the same as in
deed or contract was executed in the manner required the preceding question? Explain.
by law for a mortgage (Arts. 2085 to 2092, NCC; 2124 to
2131, NCC). There is no contract of antichresis because no SUGGESTED ANSWER:
right to the fruits of the property was given to the creditor No, the answer would not be the same. This is a valid
(Art. 2132 NCC). stipulation and does not constitute pactum commissorium.
A contract of simple loan was entered into with security In pactum commissorium, the acquisition is automatic
arrangement agreed upon by the parties which is not one of without need of any further action. In the instant problem
those mentioned above. another act is required to be performed, namely, the
conveyance of the property as payment (dacion en pago).
VI. Real Mortgage
Are the right of redemption and the equity of redemption
Does the right to request for the issuance of a writ of given by law to a mortgagor the same? Explain. (1999)
possession over a foreclosed real property prescribe in five Lito obtained a loan of P1,000,000 from Ferdie, payable
(5) years? (2012) within one year. To secure payment, Lito executed a chattel
mortgage on a Toyota Avanza and a real estate mortgage on
To secure a loan obtained from a rural bank, Purita assigned a 200-square meter piece of property. (2013)
her leasehold rights over a stall in the public market in favor a. Would it be legally significant - from the point of
of the bank. The deed of assignment provides that in case view of validity and enforceability - if the loan and
of default in the payment of the loan, the bank shall have the mortgages were in public or private
the right to sell Purita's rights over the market stall as her instruments?
attorney-in-fact, and to apply the proceeds to the payment
of the loan. (2001) SUGGESTED ANSWER:
a. Was the assignment of leasehold rights a From the point of view of validity and enforceability, there
mortgage or a cession? Why? would be legal significance if the mortgage was in n public or
private instrument. As for the loan, there is no legal
SUGGESTED ANSWER: significance except if interest were charged on the loan, in
The assignment was a mortgage, not a cession, of the which case the charging of interest must be in writing. A
leasehold rights. A cession would have transferred contract of loan is a real contract and is perfected upon the
ownership to the bank. However, the grant of authority to delivery of the bject of the obligation. (Art. 1914, Civil Code)
the bank to sell the leasehold rights in case of default is Thus, a contract of loan is valid and enforceable even if it is
proof that no such ownership was transferred and that a neither in a private nor in a public document. As a rule,
mere encumbrance was constituted. There would have been contracts shall he obligatory in whatever form they may have
no need for such authority had there been a cession. been entered into provided all the essential requisites for
their validity are present. With regard to its enforceability, a
b. Assuming the assignment to be a mortgage, contract of loan is not among those enumerated under
does the provision giving the bank the power Article 1403 (2) of the Civil Code, which are covered by the
to sell Purita's rights constitute pactum Statute of Frauds. It is important to note that under Article
commissorium or not? Why? 1358 of the Civil Code, all other contracts where the amount
involved exceeds five hundred pesos must appear in writing,

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 54
even a private one. However, the requirement is not for the Rules of Civil Procedure). Unless there is an express
validity of the contract, but only for its greater efficacy. With stipulation to that effect, the creditor cannot be compelled
regard the chattel mortgage, Act No. 1508, the Chattel to receive partial payment of the prestation (Art. 1248, Civil
Mortgage Law, requires an affidavit of good faith stating that Code).
the chattel mortgage is supposed to stand as security for the
loan; thus, for validity of the chattel mortgage, it must be in VII. Chattel Mortgage
a public document and recorded in the Chattel Mortgage
Register in the Registry of Deeds. A real estate mortgage Distinguish a contract of chattel mortgage from a contract
under the provisions of Article 2125 of the Civil Code requires of pledge. (1999)
that in order that a mortgage may be validly constituted the
document in which it appears be recorded. If the instrument X constructed a house on a lot which he was leasing from
is not recorded, the mortgage is nevertheless valid and Y. Later, X executed a chattel mortgage over said house in
binding between the parties. Hence, for validity of both favor of Z as security for a loan obtained from the latter.
chattel and real estate mortgages, they must appear in a Still later, X acquired ownership of the land where his house
public instrument. But for purposes of enforceability, it is was constructed, after which he mortgaged both house and
submitted that the form of the contract, whether in a public land in favor of a bank, which mortgage was annotated on
or private document, would be immaterial (Mobil Oil v. the Torrens Certificate of Title. When X failed to pay his
Diocaresa, 29 SCRA 656 [1969]). Also, under Article 1358, acts loan to the bank, the latter, being the highest bidder at the
and contracts which have for their object the creation or foreclosure sale, foreclosed the mortgage and acquired X’s
transmission of real rights over immovable property must he house and lot. Learning of the proceedings conducted by
in a public document fur greater efficacy and a real estate the bank, Z is now demanding that the bank reconvey to
mortgage is a real right over immovable property. him X’s house or pay X’s loan to him plus interests. Is Z’s
demand against the bank valid and sustainable? Why? (1994,
b. Lito's failure to pay led to the extra-judicial 2003)
foreclosure of the mortgaged real property. Within
a year from foreclosure, Lito tendered a manager's SUGGESTED ANSWER:
check to Ferdie to redeem the property. Ferdie No, Z’s demand is not valid. A building is immovable or real
refused to accept payment on the ground that he property whether it is erected by the owner of the land, by a
wanted payment in cash: the check does not usufructuary, or by a lessee. It may be treated as a
qualify as legal tender and does not include the movable by the parties to chattel mortgage but such is
interest payment. Is Ferdie's refusal justified? binding only between them and not on third parties
(Evangelista v. Alto Surety Col, inc. 103 Phil. 401 [1958]). In
SUGGESTED ANSWER: this case, since the bank is not a party to the chattel
Ferdie’s refusal is justified. A check, whether a manager’s mortgage, it is not bound by it, as far as the Bank is
check or ordinary check, is not legal tender, and an offer of a concerned, the chattel mortgage, does not exist. Moreover,
check in payment of a debt is not a valid tender if the chattel mortgage does not exist. Moreover, the chattel
payment and may be refused receipt by the obligee or mortgage is void because it was not registered. Assuming
creditors (Philippine Airlines v. CA and Amelia Tan. GR. that it is valid, it does not bind the Bank because it was not
No. L-49188 [1990]). Mere delivery of checks does not annotated on the title of the land mortgaged to the bank. Z
discharge the obligation under a judgment. A check shall cannot demand that the Bank pay him the loan Z extended to
produce the effect of payment only when they have been X, because the Bank was not privy to such loan
cashed or when through the fault of the creditor, they have transaction.
been impaired (Art. 1249, Civil Code). However, it is not
necessary that the right of redemption be exercised by A, about to leave the country on a foreign assignment,
delivery of legal tender. A check may be used for the exercise entrusted to B his brand new car and its certificate of
of right of redemption, the same being a right and not an registration. Falsifying A's signature, B sold A's car to C for
obligation. The tender of a check is sufficient to compel P200,000.00. C then registered the car in his name. To
redemption but is not in itself a payment that relieves the complete the needed amount, C borrowed P100.000.00
redemptioner from his liability to pay the redemption price from the savings and loan association in his office,
(Bianca v. Gimenez, G.R. No. 132768, September 9, 2005, constituting a chattel mortgage on the car. For failure of C
citing Fortunado v. CA). Redemption within the period to pay the amount owed, the savings and loan association
allowed by law is not a matter of intent but a question of filed in the RTC a complaint for collection with application
payment ot valid tender of full redemption price within the for issuance of a writ of replevin to obtain possession of the
said period. Whether the redemption is being made under vehicle so that the chattel mortgage could be foreclosed.
Act 3135 or under the General Banking Law, the mortgagor The RTC issued the writ of replevin. The car was then
or his assignee is required to tender payment to make said seized from C and sold by the sheriff at public auction at
redemption valid (Heirs of Quisumbing v. PNB and SLDC, GR. which the savings and loan association was the lone bidder.
No. 178242. January 20, 2009). Moreover, Ferdie's refusal Accordingly, the car was sold to it. A few days later, A
was justified on the ground that the amount tendered does arrived from his foreign assignment. Learning of what
not include interest. In order to effect the redemption of the happened to his car, A sought to recover possession and
foreclosed property, the payment to the purchaser must ownership of it from the savings and loan association. Can A
include the following sums: (a) the bid price; (b) the interest recover his car from the savings and loan association?
on the bid price, computed at one per centum (1%) per Explain your answer. (1993)
month; and (e) them assessments or taxes, if any, paid by the
purchaser, with the same rate of interest (Section 28, I997 SUGGESTED ANSWER:


Yes, A can recover his car from the Savings and Loan X must pay the loan obtained by Y from W because X must
Association. In a Chattel Mortgage, the mortgagor must be answer for obligations contracted with third persons in the
the absolute owner of the thing mortgaged. Furthermore, interest of the owner (Art. 2150, Civil Code),
the person constituting the mortgage must have the free
disposal of the property, and in the absence thereof, must d) What legal effects will result if X expressly
be legally authorized for the purpose. In the case at bar, ratifies Y's management and what would be
these essential requisites did not apply to the mortgagor B, the obligations of X in favor of Y?
hence the Chattel Mortgage was not valid.
Lawrence, a retired air force captain, decided to go into the Express ratification by X provides the effects of an express
air transport business. He purchased an aircraft in cash agency and X is liable to pay the commissions habitually
except for an outstanding balance of P500,000.00. He received by the gestor as manager (Art. 2149, Civil Code).
incurred an indebtedness of P300,000.00 for repairs with an
aircraft repair company. He also borrowed P1 Million from a In September 1972, upon declaration of martial rule in the
bank for additional capital and constituted a chattel Philippines. A, together with his wife and children
mortgage on the aircraft to secure the loan. While on a test disappeared from his residence along A. Mabini Street.
flight the aircraft crashed causing physical injuries to a Ermita, Manila. B, his immediate neighbor, noticing that
third party who was awarded damages of P200,000.00. mysterious disappearance of A and his family, closed the
Lawrence's insurance claim for damage to the aircraft was doors and windows of his house to prevent it from being
denied thus leaving him nothing else but the aircraft which burglarized. Years passed without B hearing from A and his
was then valued only at P1 Million. Lawrence was declared family, B continued taking care of A's house, even causing
insolvent. Assuming that the aircraft was sold for Pl Million, minor repairs to be done at his house to preserve it. In
give the order of preference of the creditors of Lawrence 1976, when business began to perk up in the area, an
and distribute the amount of P1 Million. (1995) enterprising man. C, approached B and proposed that they
build stores at the ground floor of the house and convert its
second floor into a pension house. B agreed to Cs proposal
SUGGESTED ANSWER: and together they spent for the construction of stores at the
Assuming that the aircraft was sold for P1 Million, there is no ground floor and the conversion of the second floor into a
order of preference. The P1 Million will all go to the bank pension house. While construction was going on, fire
as a chattel mortgagee because a chattel mortgage under occurred at a nearby house. The houses at the entire block,
Art. 2241 (4) NCC defeats Art. 2244 (12) and (14}. Art. 2241 including A's were burned. After the EDSA revolution in
(3) and (5) are not applicable because the aircraft is no longer February 1986, A and his family returned from the United
in the possession of the creditor. States where they took refuge in 1972. Upon learning of
what happened to his house. A sued B for damages, B
VIII. Quasi-contracts pleaded as a defense that he merely took charge of his
house under the principle of negotiorum gestio. He was not
In fear of reprisals from lawless elements besieging his liable as the burning of the house is a fortuitous event. Is B
barangay, X abandoned his fishpond, fled to Manila and left liable to A for damages under the foregoing
for Europe. Seeking that the fish in the fishpond were ready circumstances? (1993)
for harvest, Y, who is in the business of managing
fishponds on a commission basis, took possession of the SUGGESTED ANSWER:
property, harvested the fish and sold the entire harvest to Z. He would be liable under Art. 2147 (1) of the Civil Code,
Thereafter, Y borrowed money from W and used the money because he used the property for an operation which the
to buy new supplies of fish fry and to prepare the fishpond operator is not accustomed to, and in so doing, he exposed
for the next crop. (1992) the house to increased risk, namely the operation of a
a) What is the Juridical relation between X and Y pension house on the second floor and stores on the first
during X's absence? floor

SUGGESTED ANSWER: Armando owns a row of residential apartments in San Juan,

The juridical relation is that of the quasi-contract of Metro Manila, which he rents out to tenants. On 1 April
"negotiorum gestio". Y is the "gestor" or "officious 1991 he left for the United States without appointing any
manager" and X is the "owner" (Art. 2144, Civil Code). administrator to manage his apartments such that
uncollected rentals accumulated for three (3) years. Amparo,
b) Upon the return of X to the barangay, what are a niece of Armando, concerned with the interest of her
the obligations of Y to X as regards the contract uncle, took it upon herself to administer the property. As a
with Z? consequence, she incurred expenses in collecting the rents
and in some instances even spent for necessary repairs to
SUGGESTED ANSWER: preserve the property. What rights and obligations, if any,
Y must render an account of his operations and deliver to X the does Amparo have under the circumstances? Explain. (1995)
price he received for the sale of the harvested fish (Art, 2145,
Civil Code). DPO went to a store to buy a pack of cigarettes worth
P225.00 only. He gave the vendor, RRA, a P500-peso bill. The
c) Upon X's return, what are the obligations of vendor gave him the pack plus P375.00 change. Was there
X as regards Y's contract with W? a discount, an oversight, or an error in the amount given?
What would be DPO’s duty, if any, in case of an excess in
SUGGESTED ANSWER: the amount of change given by the vendor? How is this

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 56
situational relationship between DPO and RRA of the three-year period, Mario allowed Nestor to remain in
denominated? Explain. (2004) the leased premises at the same rental rate. On June 15,
1983, Nestor tendered the amount of P500,000.00 to Mario
SUGGESTED ANSWER: and demanded that the latter execute a deed of absolute sale
There was error in the amount of change given by RRA. This of the fishpond in his favor. Mario refused, on the ground
is a case of solutio indebiti in that DPO received that Nestor no longer had an option to buy the fishpond.
something that is not due him. He has the obligation to Nestor filed an action for specific performance. Will the
return the P100.00; otherwise, he will unjustly enrich action prosper or not? Why? (2001)
himself at the expense of RRA. (Art. 2154, Civil Code)
LEASE No, the action will not prosper. The implied renewal of the
lease on a month-to-month basis did not have the effect of
Under what circumstances would an implied new lease or a extending the life of the option to purchase which expired at
tacita reconduccion arise? (1999) the end of the original lease period. The lessor is correct in
refusing to sell on the ground that the option had expired.
I. Lease of Rural and Urban Lands
Under a written contract dated December 1, 1989, Victor
In 1995, Mark leased the rice land of Narding in Nueva leased his land to Joel for a period of five (5) years at a
Ecija for an annual rental of P1,000.00 per hectare. In 1998, monthly rental of Pl,000.00, to be increased to Pl,200.00
due to the El Nino phenomenon, the rice harvest fell to and Pl,500.00 on the third and fifth year, respectively. On
only 40% of the average harvest for the previous years. January 1, 1991, Joel subleased the land to Conrad for a
Mark asked Narding for a reduction of the rental to P500.00 period of two (2) years at a monthly rental of Pl,500.00. On
per hectare for that year but the latter refused. Is Mark December 31, 1992, Joel assigned the lease to his
legally entitled to such reduction? (2000) compadre, Ernie, who acted on the belief that Joel was the
rightful owner and possessor of the said lot. Joel has been
SUGGESTED ANSWER: faithfully paying the stipulated rentals to Victor. When
No, Mark is not entitled to a reduction. Under Article 1680 of Victor learned on May 18, 1992 about the sublease and
the Civil Code, the lessee of a rural land is entitled to a assignment, he sued Joel, Conrad and Ernie for rescission of
reduction of the rent only in case of loss of more than 1/2 of the contract of lease and for damages. (2005)
the fruits through extraordinary and unforeseen
fortuitous events. While the drought brought about by the a) Will the action prosper? If so, against whom?
"El Nino" phenomenon may be classified as extraordinary, it Explain.
is not considered as unforeseen.
II. Rights and Obligations of Lessor and Lessee Yes, the action of for rescission of the contract of lease and
for damages will prosper. Under Article 1659 of the Civil
A is the owner of a lot on which he constructed a building Code, "if the lessor or the lessee should not comply with the
in the total cost of P10,000,000.00. Of that amount B obligations set forth in Art. 1654 and 1657, the aggrieved
contributed P5,000,000.00 provided that the building as a party may ask for rescission of the contract and
whole would be leased to him (B) for a period of ten years indemnification for damages, or only the latter, allowing the
from January 1. 1985 to December 31, 1995 at a rental of contract to remain in force." Article 1649 of the same Code
P100,000.00 a year. To such condition, A agreed. On provides that "the lessee cannot assign the lease without the
December 20, 1990, the building was totally burned. Soon consent of the lessor, unless there is a stipulation to the
thereafter, A's workers cleared the debris and started contrary." Consent is necessary because assignment would
construction of a new building. B then served notice upon cause novation by the substitution of one of the parties.
A that he would occupy the building being constructed (Bangayan v. Court of Appeals, G.R. No. 123581, August 29,
upon completion, for the unexpired portion of the lease 1997) However, the rule is different in the case of
term, explaining that he had spent partly for the subleasing. When there is no express prohibition in the
construction of the building that was burned. A rejected B's Contract of Lease, the lessee may sublet the thing leased.
demand. Did A has a right in rejecting B's demand? (1993) (Art. 1650, Civil Code) In the given case, when Joel assigned
the lease to Ernie, the same was done without the consent
of Victor. The assignment is void. However, there is no
SUGGESTED ANSWER: indication that in the written contract of lease between
Yes. A was correct in rejecting the demand of B. As a result of Victor and Joel, that subleasing the premises is prohibited.
the total destruction of the building by fortuitous event, the Hence, the sublease of Joel with Conrad is valid. In view
lease was extinguished. (Art. 1655, Civil Code.) of the foregoing, Victor can file the case of rescission and
damages only against Joel and Ernie but he cannot include
Stating briefly the thesis to support your answer to each of Conrad.
the following cases, will the death of the lessee extinguish
the lease agreement? (1997) b) In case of rescission, discuss the rights and
obligations of the parties.
On January 1, 1980, Nestor leased the fishpond of Mario
for a period of three years at a monthly rental of P1,000.00, SUGGESTED ANSWER:
with an option to purchase the same during the period of Rescission of the lease necessarily requires the return of the
the lease for the price of P500,000.00. After the expiration thing to the lessor. Hence, the judgment granting rescission of


the contract should also order the lessee to vacate and A leased his house to B with a condition that the leased
return the leased premises to the lessor. However, since the premises shall be used for residential purposes only. B
sublessee can invoke no right superior to that of his subleased the house to C who used it as a warehouse for
sublessor, the moment the sublessor is duly ousted from the fabrics. Upon learning this, A demanded that C stop using
premises, the sublessee has no leg to stand on. The the house as a warehouse, but C ignored the demand, A
sublessee's right, if any, is to demand reparation for then filed an action for ejectment against C, who raised the
damages from his sublessor, should the latter be at fault. defense that there is no privity of contract between him and
(Heirs ofSevilla v. Court of Appeals G.R. No. 49823, February A, and that he has not been remiss in the payment of rent.
26, 1992). Will the action prosper? (2000)

In January 1993, Four-Gives Corporation leased the entire SUGGESTED ANSWER:

twelve floors of the GQS Towers Complex, for a period of ten Yes, the action will prosper. Under Article 1651 of the Civil
years at a monthly rental of P3,000,000.00. There is a Code, the sublessee is bound to the lessor for all acts which
provision in the contract that the monthly rentals should be refer to the use and preservation of the thing leased in the
paid within the first five days of the month. For the month manner stipulated between the lessor and the lessee.
of March, May, June, October and December 1993, the
rentals were not paid on time with some rentals being A leased a parcel of land to B for a period of two years. The
delayed up to ten days. The delay was due to the heavy lease contract did not contain any express prohibition
paper work involved in processing the checks. Four-Gives against the assignment of the leasehold or the subleasing of
Corporation also subleased five of the twelve floors to the leased premises. During the third year of the lease, B
wholly-owned subsidiaries. The lease contract expressly subleased the land to C. In turn, C, without A's consent,
prohibits the assignment of the lease contract or any assigned the sublease to D. A then filed an action for the
portion thereof. The rental value of the building has rescission of the contract of lease on the ground that B has
increased by 50% since its lease to Four-Gives Corporation. violated the terms and conditions of the lease agreement. If
(1994) you were the judge, how would you decide the case,
a) Can the building owner eject Four-Gives particularly with respect to the validity of: (1990)
Corporation on grounds of the repeated delays in a) B's sublease to C?
the payment of the rent?
B's sublease to C is valid. Although the original period of two
SUGGESTED ANSWERS: years for the lease contract has expired, the lease
The building owner cannot eject Four-Gives continued with the acquiescence of the lessor during the
Corporation on the ground of repeated delays in the third year. Hence, there has been an implied renewal of the
payment of rentals. The delay in the payment of the rentals contract of lease. Under Art. 1650 of the Civil Code, the
is minimal and cannot be made the basis of an ejectment lessee may sublet the thing leased, in whole or in part, when
suit. The delay was due to the heavy paperwork involved in the contract of lease does not contain any express
processing the checks. It would be otherwise if the lease prohibition. [Articles 1650, 1670 Civil Code). A's action for
contract stated that in the payment of rentals within the first rescission should not prosper on this ground.
five days of the month, time is of the essence or that the
lessee will be in delay if he falls to pay within the agreed b) C's assignment of the sublease to D?
period without need of demand. In this case he can
judicially eject the tenant on the ground of lack of payment SUGGESTED ANSWER:
of the price stipulated after a demand to vacate, C's assignment of the sublease to D is not valid. Under Art.
(Article1673(2), New Civil Code). 1649, of the Civil Code, the lessee cannot assign the lease
without the consent of the lessor, unless there is a
b) Can the building owner ask for the cancellation of stipulation to the contrary. There is no such stipulation in
the contract for violation of the provision against the contract. If the law prohibits assignment of the lease
assignment? without the consent of the lessor, all the more would the
assignment of a sublease be prohibited without such
SUGGESTED ANSWERS: consent. This is a violation of the contract and is a valid
No, the lessor cannot have the lease cancelled for alleged ground for rescission by A.
violation of the provision against assignment. The lessee did
not assign the lease, or any portion thereof, to the LAND TITLES AND DEEDS
subsidiaries. It merely subleased some floors to its I. Torrens System
subsidiaries. Since the problem does not state that the
contract of lease contains a prohibition against sublease, the Section 70 of Presidential Decree No. 1529, concerning
sublease is lawful, the rule being that in the absence of an adverse claims on registered land, provides a 30-day period
express prohibition a lessee may sublet the thing leased, in of effectivity of an adverse claim, counted from the date of
whole or in part, without prejudice to his/its responsibility to its registration. Suppose a notice of adverse claim based
the lessor for the performance of the contract. upon a contract to sell was registered on March 1, 1997 at
the instance of the BUYER, but on June 1, 1997, or after
May a lessee sublease the property leased without the the lapse of the 30-day period, a notice of levy on execution
consent of the lessor, and what are the respective liabilities in favor of a JUDGMENT CREDITOR was also registered to
of the lessee and sub-lessee to the lessor in case of such enforce a final judgment for money against the registered
sublease? (1999) owner. Then, on June 15, 1997 there having been no formal
cancellation of his notice of adverse claim, the BUYER pays to

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 58
the seller-owner the agreed purchase price in full and (2) If the land is suited or actually used for fishpond or
registers the corresponding deed of sale. Because the aquaculture purposes, it comes under the Jurisdiction of the
annotation of the notice of levy is carried over to the new Bureau of Fisheries and Aquatic Resources (BFAR) and can only
title in his name, the BUYER brings an action against the be acquired by lease. (P.D. 705)
JUDGMENT CREDITOR to cancel such annotation, but the (3) Free Patent is a mode of concession under Section 41,
latter claims that his lien is superior because it was Chapter VII of the Public Land Act, which is applicable only
annotated after the adverse claim of the BUYER had ipso for agricultural lands.
facto ceased to be effective. Will the suit prosper? (1998) (4) The certificate of the district forester that the land
is already "alienable and disposable" simply means that
SUGGESTED ANSWER: the land is no longer needed for forest purposes, but the
The suit will prosper. While an adverse claim duly annotated Bureau of Lands could no longer dispose of it by free
at the back of a title under Section 7O of P.D. 1529 is good patent because it is already covered by a lease contract
only for 30 days, cancellation thereof is still necessary to between BFAR and Regina. That contract must be respected.
render it ineffective, otherwise, the inscription thereof will (5) The free patent of Jorge is highly irregular and void ab
remain annotated as a lien on the property. While the life of initio, not only because the Bureau has no statutory
adverse claim is 3O days under P.D. 1529, it continuous to be authority to issue a free patent over a foreshore area, but
effective until it is canceled by formal petition filed with the also because of the false statements made in his sworn
Register of Deeds. The cancellation of the notice of levy is application that he has occupied and cultivated the land
justified under Section 108 of P.D. 1529 considering that since July 4, 1945, as required by the free patent law. Under
the levy on execution can not be enforced against the Section 91 of the Public Land Act, any patent concession or
buyer whose adverse claim against the registered owner title obtained thru false representation is void ab initio. In
was recorded ahead of the notice of levy on execution. cases of this nature, it is the government that shall institute
annulment proceedings considering that the suit carries with
Mario sold his house and lot to Carmen for P1 million it a prayer for the reversion of the land to the state.
payable in five (5) equal annua linstallments. The sale was However, Regina is a party in interest and the case will
registered and title was issued in Carmen's name. Carmen prosper because she has a lease contract for the same land
failed to pay the last three installments and Mario filed an. with the government.
action for collection, damages and attorneys fees against
her. Upon filing of the complaint, he caused a notice of lis Rod, the owner of an FX taxi, found in his vehicle an
pendens to be annotated on Carmen's title. Is the notice of envelope containing TCT No. 65432 over a lot registered in
lis pendens proper or not? Why? (2001) Cesar's name. Posing as Cesar, Rod forged Cesar's signature
on a Deed of Sale in Rod's favor. Rod registered the said
SUGGESTED ANSWER: document with the Register of Deeds, and obtained a new
The notice of lis pendens is not proper for the reason that title in his name. After a year, he sold the lot to Don, a
the case filed by Mario against Carmen is only for collection, buyer in good faith and for value, who also registered the lot
damages, and attorney's fees. Annotation of a lis pendens in his name. (1991, 2005)
can only be done in cases involving recovery of a) Did Rod acquire title to the land? Explain.
possession of real property, or to quiet title or to remove
cloud thereon, or for partition or any other proceeding SUGGESTED ANSWER:
affecting title to the land or the use or occupation thereof. No, Rod did not acquire title to the land. The inscription in the
The action filed by Mario does not fall on anyone of these. registry, to be effective, must be made in good faith. The
defense of indefeasibility of a Torrens Title does not extend
II. Regalian Doctrine to a transferee who takes the certificate of title with notice
of a flaw. A holder in bad faith of a certificate of title is not
Regina has been leasing foreshore land from the Bureau of entitled to the protection of the law, for the law cannot
Fisheries and Aquatic Resources for the past 15 years. be used as a shield for frauds. (Samonte v. Court of Appeals,
Recently, she learned that Jorge was able to obtain a free G.R. No. 104223, July 12, 2001). In the case at bar, Rod only
patent from the Bureau of Agriculture, covering the same forged Cesar's signature on the -Deed of Sale. It is very
land, on the basis of a certification by the District Forester apparent that there was bad faith on the part of Rod from the
that the same is already "alienable and disposable". very beginning. As such, he is not entitled to the protection of
Moreover, Jorge had already registered the patent with the the Land Registration Act.
Register of Deeds of the province, and he was issued an
Original Certificate of Title for the same. Regina filed an b) Discuss the rights of Don, if any, over the
action for annulment of Jorge's title on the ground that it property.
was obtained fraudulently. Will the action prosper? (2000)
SUGGESTED ANSWER: It is a well-known rule in this jurisdiction that persons dealing
An action for the annulment of Jorge's Original Certificate of with registered land have the legal right to rely on the face
Title will prosper on the following grounds: of the Torrens Certificate of Title and to dispense with the
(1) Under Chapter IX of C .A, No. 141, otherwise known as the need to inquire further, except when the party concerned
Public Land Act, foreshore lands are disposable for has actual knowledge of facts and circumstances that would
residential, commercial, industrial, or similar impel a reasonably cautious man to make such inquiry.
productive purposes, and only by lease when not (Naawan Community Rural Bank v. Court of Appeals, G.R.
needed by the government for public service. No. 128573, January 13, 2003) In the given problem, the
property was already registered in the name of Rod when he


bought the same from the latter. Thus, Don could be prescribed and that furthermore, A was in pari delicto.
considered as a buyer in good faith and for value. However, Decide. (1999)
since Rod did not actually sell any property to him, Don has
no right to retain ownership over the property. He has only SUGGESTED ANSWER:
the right to recover the purchase price plus damages. The sale of the land by A to B 3 years after issuance of the
homestead patent, being in violation of Section 118 of the
In 1979, Nestor applied for and was granted a Free Patent Public Land Act, is void from its inception The action filed by
over a parcel of agricultural land with an area of 30 hectares, the heirs of B to declare the nullity or inexistence of the
located in General Santos City. He presented the Free contract and to recover the land should be given due course.
Patent to the Register of Deeds, and he was issued a B's defense of prescription is untenable because an action
corresponding Original Certificate of Title (OCT) No. 375, which seeks to declare the nullity or inexistence of A
Subsequently, Nestor sold the land to Eddie. The deed of contract does not prescribe. On the other hand, B's
sale was submitted to the Register of Deeds and on the defense of pari delicto is equally untenable. While as a
basis thereof, OCT No. 375 was cancelled and Transfer rule, parties who are in pari delicto have no recourse against
Certificate of Title (TCT) No. 4576 was issued in the name of each other on the principle that a transgressor cannot profit
Eddie. In 1986, the Director of Lands filed a complaint for from his own wrongdoing, such rule does not apply to
annulment of OCT No, 375 and TCT No. 4576 on the ground violations of Section 118 of the Public Land Act because of
that Nestor obtained the Free Patent through fraud. Eddie the underlying public policy in the said Act "to conserve the
filed a motion to dismiss on the ground that he was an land which a homesteader has acquired by gratuitous grant
innocent purchaser for value and in good faith and as from the government for himself and his family". In keeping
such, he has acquired a title to the property which is valid, with this policy, it has been held that one who purchases a
unassailable and indefeasible. Decide the motion. (2000) homestead within the five-year prohibitory period can only
recover the price which he has paid by filing
SUGGESTED ANSWER: a claim against the estate of the deceased seller (Labrador vs.
The motion of Nestor to dismiss the complaint for Delos Santos 66 Phil. 579) under the principle that no one
annulment of O.C.T. No. 375 and T.C.T. No. 4576 should be shall enrich himself at the expense of another. Applying the
denied for the following reasons: pari delicto rule to violation of Section 118 of the Public Land
1) Eddie cannot claim protection as an innocent Act, the Court of Appeals has ruled that "the homesteader
purchaser for value nor can he interpose the defense suffers the loss of the fruits realized by the vendee who in
of indefeasibility of his title, because his TCT is rooted turn forfeits the improvement that he has introduced into
on a void title. Under Section 91 of CA No. 141, as the land." (Obot vs. SandadiUas, 69 OG, April 35, 1966}
amended, otherwise known as the Public Land
Act, statements of material facts in the applications Cesar bought a residential condominium unit from High
for public land must be under oath. Section 91 of the Rise Co. and paid the price in full. He moved into the unit,
same act provides that such statements shall be but somehow he was not given the Condominium
considered as essential conditions and parts of the Certificate of Title covering the property. Unknown to him,
concession, title, or permit issued, any false High Rise Co. subsequently mortgaged the entire
statement therein, or omission of facts shall ipso condominium building to Metrobank as security for a loan
facto produce the cancellation of the concession. of P500 million. High Rise Co. failed to pay the loan and
The patent issued to Nestor in this case is void ab the bank foreclosed the mortgage. At the foreclosure sale,
initio not only because it was obtained by fraud the bank acquired the building, being the highest bidder.
but also because it covers 30 hectares which is far When Cesar learned about this, he filed an action to annul
beyond the maximum of 24 hectares provided by the the foreclosure sale insofar as his unit was concerned. The
free patent law. bank put up the defense that it relied on the condominium
2) The government can seek annulment of the certificates of title presented by High Rise Co., which were
original and transfer certificates of title and the clean. Hence, it was a mortgagee and buyer in good faith. Is
reversion of the land to the state. Eddie's defense this defense tenable or not? Why? (2001)
is untenable. The protection afforded by the
Torrens System to an innocent purchaser for SUGGESTED ANSWER:
value can be availed of only if the land has been Metrobank's defense is untenable. As a rule, an innocent
titled thru judicial proceedings where the issue of purchaser for value acquires a good and a clean title to the
fraud becomes academic after the lapse of one year property. However, it is settled that one who closes his eyes
from the issuance of the decree of registration. to facts that should put a reasonable man on guard is not an
In public land grants, the action of the innocent purchaser for value. In the present problem the
government to annul a title fraudulently obtained bank is expected, as a matter of standard operating
does not prescribe such action and will not be barred procedure, to have conducted an ocular inspection, of the
by the transfer of the title to an innocent purchaser promises before granting any loan. Apparently, Metrobank
for value. did not follow this procedure. Otherwise, it should have
discovered that the condominium unit in question was
In 1950, the Bureau of Lands issued a Homestead patent to occupied by Cesar and that fact should have led it to make
A. Three years later, A sold the homestead to B. A died in further inquiry. Under the circumstances, Metrobank cannot
1990, and his heirs filed an action to recover the homestead be considered a mortgagee and buyer in good faith.
from B on the ground that its sale by their father to the
latter is void under Section 118 of the Public Land Law. B In 1950's, the Government acquired a big landed estate in
contends, however, that the heirs of A cannot recover the Central Luzon from the registered owner for subdivision
homestead from him anymore because their action has into small farms and redistribution of bonafide occupants, F

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 60
was a former lessee of a parcel of land, five hectares in area. in pursuance thereof “shall be conclusive upon and against
After completion of the resurvey and subdivision, F applied all persons, including the national government and all
to buy the said land in accordance with the guidelines of the branches thereof, whether mentioned by name in the
implementing agency. Upon full payment of the price in application or not.”
1957, the corresponding deed of absolute sale was executed
in his favor and was registered, and in 1961, a new title was The spouses X and Y mortgaged a piece of registered land
issued in his name. In 1963, F sold the said land to X; and in to A, delivering as well the OCT to the latter, but they
1965 X sold it to Y, new titles were successively issued in continued to possess and cultivate the land, giving 1/2 of
the names of the said purchasers. In 1977, C filed an action to each harvest to A in partial payment of their loan to the
annul the deeds of sale to F, X and Y and their titles, on the latter, A, however, without the knowledge of X and Y,
ground that he (C) had been in actual physical possession of forged a deed of sale of the aforesaid land in favor of
the land, and that the sale to F and the subsequent sales himself, got a TCT in his name, and then sold the land to B,
should be set aside on the ground of fraud. Upon motion who bought the land relying on A's title, and who thereafter
of defendants, the trial court dismissed the complaint, also got a TCT in his name. It was only then that the
upholding their defenses of their being innocent spouses X and Y learned that their land had been titled in
purchasers for value, prescription and laches. Plaintiff B's name. May said spouses file an action for reconveyance
appealed. (1990) of the land in question against b? Reason. (1999)
a) Is the said appeal meritorious? Explain your answer
SUGGESTED ANSWER: The action of X and Y against B for reconveyance of the land
The appeal is not meritorious. The trial court ruled will not prosper because B has acquired a clean title to the
correctly in granting defendant's motion to dismiss for the property being an innocent purchaser for value. A forged
following reasons: deed is an absolute nullity and conveys no title. The fact
1. While there is the possibility that F, a former lessee of that the forged deed was registered and a certificate of title
the land was aware of the fact that C was the was issued in his name, did not operate to vest upon an
bona fide occupant thereof and for this reason his ownership over the property of X and Y. The
transfer certificate of title may be vulnerable, the registration of the forged deed will not cure the infirmity.
transfer of the same land and the issuance of new However, once the title to the land is registered in the name
TCTs to X and Y who are innocent purchasers for of the forger and title to the land thereafter falls into the
value render the latter's titles indefeasible. A hands of an innocent purchaser for value, the latter acquires a
person dealing with registered land may safely rely clean title thereto. A buyer of a registered land is not
on the correctness of the certificate of title and the required to explore beyond what the record in the registry
law will not in any way oblige him to go behind the indicates on its face in quest for any hidden defect or
certificate to determine the condition of the inchoate right which may subsequently defeat his right
property in search for any hidden defect or thereto. This is the "mirror principle' of the Torrens system
inchoate right which may later invalidate or which makes it possible for a forged deed to be the root of a
diminish the right to the land. This is the mirror good title. Besides, it appears that spouses X and Y are
principle of the Torrens System of land registration. guilty of contributory negligence when they delivered this
OCT to the mortgagee without annotating the mortgage
2. The action to annul the sale was instituted in thereon. Between them and the innocent purchaser for
1977 or more than (10) years from the date of value, they should bear the loss.
execution thereof in 1957, hence, it has long
prescribed. Rommel was issued a certificate of title over a parcel of land
in Quezon City. One year later Rachelle, the legitimate
3. Under Sec 45 of Act 496, “the entry of a certificate owner of the land, discovered the fraudulent registration
of title shall be regarded as an agreement obtained by Rommel. She filed a complaint against Rommel
running with the land, and binding upon the for reconveyance and caused the annotation of a notice of
applicant and all his successors in title that the land lis pendens on the certificate of title issued to Rommel.
shall be and always remain registered land. A title Rommel now invokes the indefeasibility of his title
under Act 496 is indefeasible and to preserve that considering that one year has already elapsed from its
character, the title is cleansed anew with every issuance. He also seeks the cancellation of the notice of Lis
transfer for value (De Jesus v City of Manila; 29 pendens. May the court cancel the notice of lis pendens
Phil. 73; Laperal v City of Manila, 62 Phil 313; even before final judgment is rendered? Explain. (1995)
Penullar v PNB 120 S 111).
b) Suppose the government agency concerned joined C A Notice of Lis Pendens may be canceled even before final
in filing the said action against the defendants, Judgment upon proper showing that the notice is for the
would that change the result of the litigation? purpose of molesting or harassing the adverse party or that
Explain. the notice of lis pendens is not necessary to protect the right
of the party who caused it to be registered. (Section 77, P.D.
SUGGESTED ANSWER: No. 1529) In this case, it is given that Rachelle is the legitimate
Even if the government joins C, this will not alter the owner of the land in question. It can be said, therefore, that
outcome of the case so much because of estoppel as an when she filed her notice of lis pendens her purpose was
express provision in Sec 45 of Act 496 and Sec 31 of PD 1529 to protect her interest in the land and not just to molest
that a decree of registration and the certificate of title issued Rommel. It is necessary to record the Lis pendens to


protect her interest because if she did not do it, there is a get a new tax declaration under her name. She was
possibility that the land will fall into the hands of an surprised to find out that the property was already declared
innocent purchaser for value and in that event, the court for tax purposes in the name of XYZ Bank which had
loses control over the land making any favorable judgment foreclosed the mortgage on the property before it was sold
thereon moot and academic. For these reasons, the notice to her. XYZ Bank was also the purchaser in the foreclosure
of lis pendens may not be canceled. sale of the property. At that time, the property was still
unregistered but XYZ Bank registered the Sheriff's Deed of
Sancho and Pacifico are co-owners of a parcel of land. Conveyance in the day book of the Register of Deeds under
Sancho sold the property to Bart. Pacifico sued Sancho and Act. 3344 and obtained a tax declaration in its name. (2008)
Bart for annulment of the sale and reconveyance of the a. Was Dehlma a purchaser in good faith?
property based on the fact that the sale included his one- b. Who as between Dehlma and XYZ Bank has a
half pro-indiviso share. Pacifico had a notice of lis pendens better right to the house and lot?
annotated on the title covering the property and ordered the c. Who owns the movables inside the house?
cancellation of the notice of lis pendens. The notice of lis
pendens could not be cancelled immediately because the SUGGESTED ANSWER:
title over the property was with a bank to which the a. Yes, Dehlma is a purchaser in good faith. She learned
property had been mortgaged by Bart. Pacifico appealed the about the XYZ tax declaration and foreclosure sale
case. While the appeal was pending and with the notice of only afer the sale to her was registered. She relied
lis pendens still uncancelled, Bart sold the property to on the certificate of title of her predecessor-in-
Carlos, who immediately caused the cancellation of the interest. Under the Torrens system, a buyer of
notice of lis pendens, as well as the issuance of a new title in registered lands is not required by law to inquire
his name. Is Carlos (a) a purchaser in good faith, or (b) a further than what the Torrens certificate indicates
transferee pendente lite? If your answer is (a), how can on its face. If a person proceeds to buy it relying on
the right of Pacifico as co-owner be protected? Explain. the title, that person is considered as buyer in god
(2002) faith
The “priority in time” rule could not be invoked by
SUGGESTED ANSWER: XYZ Bank because the foreclosure sale of the land in
A. Carlos is a buyer in bad faith. The notice of lis favour of the bank was recorded under Act No.
pendens was still annotated at the back of the title 3344, the law governing transaction affecting
at the time he bought the land from Bart. The unregistered land, adnd thus, does not bind the
uncancelled notice of lis pendens operates as land.
constructive notice of its contents as well as
interests, legal or equitable, included therein. All b. Between Dehlma and the bank, the former has a
persons are charged with the knowledge of what it better right to the house and lot.
contains. In an earlier case, it was held that a
notice of an adverse claim remains effective and c. Unless there is a contrary stipulation in the absolute
binding notwithstanding the lapse of the 30 days deed of sale, Dehlma owns the movables covered by
from its inscription in the registry. This ruling is even the Deed of Sale and her ownership is perfected by
more applicable in a lis pendens. Carlos is a transferee the execution and delivery of public document of
pendente lite insofar as Sancho’s share in the co- sale. The delivery of the house and lot, including the
ownership in the land is concerned because the contents of the house. This is an obligation to deliver
land was transferred to him during the pendency a specific thing, which all of its accessions and
of the appeal. accessories even though they may not have been
B. Pacifico can protect his right as a co-owner by
pursuing his appeal; asking the Court of Appeals to In an action brought to collect a sum of money based on a
order the re-annotation of the lis pendens on the surety agreement, the defense of laches was raised as the
title of Carlos; and by invoking his right of claim was filed more than seven years from the maturity of
redemption of Bart’s share under Articles 1620 of the obligation. However, the action was brought within the
the New Civil Code. ten-year prescriptive period provided by law wherein actions
based on written contracts can be instituted. What are the
Juliet offered to sell her house and lot, together with all the essential elements of laches? (2002) Will the defense prosper?
furniture and appliances therein to Dehlma. Before Reason. (2000)
agreeing to purchase the property, Dehlma went to the
Register of Deeds to verify Juliet's title. She discovered that SUGGESTED ANSWER:
while the property was registered in Juliet's name under the No, the defense will not prosper. The problem did not give
Land Registration Act, as amended by the Property facts from which laches may be inferred. Mere delay in filing an
Registration Decree, it property, Dehlma told Juliet to action, standing alone, does not constitute laches (Agra v. PNB.
redeem the property from Elaine, and gave her an advance 309 SCRA 509).
payment to be used for purposes of realesing the mortgage
on the property. When the mortgage was released, Juliet In 1960, an unregistered parcel of land was mortgaged by
executed a Deed of Absolute Sale over the property which owner O to M, a family friend, as collateral for a loan. O
was duly registered with the Registry of Deeds, and a new acted through his attorney-in-fact, son S, who was duly
TCT was issued in Dehlma's name. Dehlma immediately authorized by way of a special power of attorney, wherein O
took possession over the house and lot and the movables declared that he was the absolute owner of the land, that the
therein. Thereafter, Dehlma went to theAssessor's Office to tax declarations/receipts were all issued in his name, and

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 62
that he has been in open, continuous and adverse of ownership. Decide on these claims, giving your reasons.
possession in the concept of owner. As O was unable to pay (1992)
back the loan plus interest for the past five [5) years, M had
to foreclose the mortgage. At the foreclosure sale, M was SUGGESTED ANSWER:
the highest bidder. Upon issuance of the sheriff’s final deed At this point in time, X cannot claim the right of vested
of sale and registration in January, 1966, the mortgage ownership over the Pangasinan parcel by acquisitive
property was turned over to M's possession and control prescription. In addition to the requisites common to
M has since then developed the said property. In 1967, O ordinary and extraordinary acquisitive prescription
died, survived by sons S and P. In 1977, after the tenth consisting of uninterrupted, peaceful, public, adverse and
(10th) death anniversary of his father O. son P filed a suit actual possession in the concept of owner, ordinary
to annul the mortgage deed and subsequent sale of the acquisitive prescription for ten (10) years requires (1)
property, etc., on the ground of fraud. He asserted that possession in good faith and (2) just title. "Just title" means
the property in question was conjugal in nature actually that the adverse claimant came into possession of the
belonging, at the time of the mortgage, to O and his wife, property through one of the modes recognized by law for
W, whose conjugal share went to their sons (S and P) and to the acquisition of ownership but the grantor was not the
O. (1990) owner or could not transmit any right (Art. 1129. Civil
a) Is the suit filed by P barred by prescription? Code). In this case, there is no "just title" and no "mode"
Explain your answer. that can be invoked by X for the acquisition of the
Pangasinan parcel. There was no constructive delivery of
SUGGESTED ANSWER: the Pangasinan parcel because it was not the subject-matter
Under Art. 173 of the Civil Code, the action is barred by of the deed of sale. Hence, B retains ownership of the
prescription because the wife had only ten (10) years from Pangasinan parcel of land.
the transaction and during the marriage to file a suit for the
annulment of the mortgage deed. In 1965, Renren bought from Robyn a parcel of registered
land evidenced by a duly executed deed of sale. The owner
b) After the issuance of the sheriff's final deed presented the deed of sale and the owner's certificate of title
of sale in 1966 in this case, assuming that M to the Register of Deeds. The entry was made in the
applied for registration under the Torrens daybook and corresponding fees were paid as evidenced by
System and was issued a Torrens Title to the official receipt. However, no transfer of certificate of title
said property in question, would that added was issued to Renren because the original certificate of title
fact have any significant effect on your in Robyn's name was temporarily misplaced after fire partly
conclusion? State your reason. gutted the Office of the Register of Deeds. Meanwhile, the
land had been possessed by Robyn's distant cousin,
SUGGESTED ANSWER: Mikaelo, openly, adversely and continuously in the concept
If M had secured a Torrens Title to the land, all the more of owner since 1960. It was only in April 1998 that Renren
S and P could not recover because if at all their remedies sued Mikaelo to recover possession. Mikaelo invoked:
would be: a) acquisitive prescription
1. A Petition to Review the Decree of Registration. This can
be availed of within one (1) year from-the entry thereof, but
only upon the basis of "actual fraud." There is no
showing that M committed actual fraud in securing his title SUGGESTED ANSWER:
to the land; or Renren's action to recover possession of the land will
2. An action in personam against M for the reconveyance of prosper. In 1965, after buying the land from Robyn, he
the title in their favor. Again, this remedy is available within submitted the Deed of Sale to the Registry of Deeds for
four years from the date of the discovery of the fraud but registration together with the owner's duplicate copy of the
not later than ten (10) years from the date of registration of title, and paid the corresponding registration fees. Under
the title in the name of M. Section 56 of PD No. 1529, the Deed of Sale to Renren is
considered registered from the time the sale was entered in
A owned a parcel of unregistered land located on the Tarlac the Day Book (now called the Primary Entry Book). For all legal
side of the boundary between Tarlac and Pangasinan. His intents and purposes, Renren is considered the registered
brother B owned the adjoining parcel of unregistered land owner of the land. After all, it was not his fault that the
on the Pangasinan side. Registry of Deeds could not issue the corresponding
A sold the Tarlac parcel to X in a deed of sale executed as a transfer certificate of title. Mikaelo's defense of prescription
public instrument by A and X. After X paid in full the, price of can not be sustained. A Torrens title is imprescriptible. No
the sale, X took possession of the Pangasinan parcel in the title to registered land in derogation of the title of the
belief that it was the Tarlac parcel covered by the deed of registered owner shall be acquired by prescription or
sale executed by A and X. After twelve (12) years, a adverse possession. (Section 47, P.D. No, 1529) The right to
controversy arose between B and X on the issue of the recover possession of registered land likewise does not
ownership of the Pangasinan parcel, B claims a vested right prescribe because possession is just a necessary incident of
of ownership over the Pangasinan parcel because B ownership.
never sold that parcel to X or to anyone else. On the other
hand, X claims a vested right of ownership over the b) laches, asking that he be declared owner of the
Pangasinan parcel by acquisitive prescription, because X land. Decide the case by evaluating these
possessed this parcel for over ten (10] years under claim defences. (1998)


SUGGESTED ANSWER: opposed by Marilou who claimed ownership of the said
Mikaelo's defense of laches, however, appears to be land by a series of sales. She claimed that Gavino had sold
more sustainable. Renren bought the land and had the sale the property to Bernardo way back in 1941 and as evidence
registered way back in 1965. From the facts, it thereof, she presented a Tax Declaration in 1948 in the
appears that it was only in 1998 or after an inexplicable name of Bernardo, which cancelled the previous Tax
delay of 33 years that he took the first step asserting Declaration in the name of Gavino. Then she presented two
his right to the land. It was not even an action to recover deeds of sale duly registered with the Register of Deeds, the
ownership but only possession of the land. By first one executed by Bernardo in 1954 selling the same
ordinary standards, 33 years of neglect or inaction is too property to Carlos, and the second one executed by Carlos
long and maybe considered unreasonable. As often held in 1963, selling the same property to her. She also claimed
by the Supreme Court, the principle of imprescriptibility that she and her predecessors in interest have been in
sometimes has to yield to the equitable principle of laches possession of the property since 1948. If you were the
which can convert even a registered land owner's claim into judge, how will you decide the petition? Explain. (1996)
a stale demand. Mikaelo's claim of laches, however, is weak
insofar as the element of equity is concerned, there being
no showing in the facts how he entered into the ownership SUGGESTED ANSWER:
and possession of the land. If I were the judge, I will give due course to the petition of the
heirs of Gavino despite the opposition of Marilou for the
How do you register now a deed of mortgage of a parcel of following reasons:
land originally registered under the Spanish Mortgage Law? a) Judicial reconstitution of a certificate of title under RA.
(1994) No. 26 partakes of a land registration proceeding and is
perforce a proceeding in rem. It denotes restoration
On June 30, 1986, A filed in the RTC of Abra an of an existing instrument which has been lost or destroyed
application for registration of title to a parcel of land under in its original form and condition. The purpose
P. D. No. 1529, claiming that since June 12, 1945, he has of reconstitution of title or any document is to have the
been in open, continuous, exclusive and notorious same reproduced, after proceedings. In the same form they
possession and occupation of said parcel of land of the were when the loss or destruction occurred.
public domain which was alienable and disposable, under a b) If the Court goes beyond that purpose, it acts without
bona fide claim of ownership. After issuance of the notice or in excess of jurisdiction. Thus, where the
of initial hearing and publication, as required by law, the Torrens Title sought to be reconstituted is in the name of
petition was heard on July 29, 1987. On the day of the Gavino, the court cannot receive evidence proving that
hearing nobody but the applicant appeared. Neither was Marilou is the owner of the land. Marilou's dominical
there anyone who opposed the application. Thereupon, on claim to the land should be ventilated in a separate
motion of the applicant, the RTC issued an order of general civil action before the Regional Trial Court in its capacity as a
default and allowed the applicant to present his evidence. court of general jurisdiction. REFERENCES: Heirs of Pedro
That he did. On September 30, 1989, the RTC dismissed A's Pinate vs. Dulay. 187 SCRA 12-20 (1990); Bunagan vs. CF1
application for lack of sufficient evidence. A appealed to the Cebu Branch VI. 97 SCRA 72 (1980); Republic vs. IAC. 157
Court of Appeals. The appellant urged that the RTC erred in SCRA 62,66 (1988); Margolles vs. CA, 230 SCRA 709; Republic
dismissing his application for registration and in not us, Feliciano, 148 SCRA 924.
ordering registration of his title to the parcel of land in
question despite the fact that there was no opposition filed What is the procedure of consulta when an instrument is
by anybody to his application. Did the RTC commit the error denied registration? (1994)
attributed to it? (1993)
SUGGESTED ANSWER: Louie, before leaving the country to train as a chef in a five-
No, the RTC did not commit the error attributed to it. In an star hotel in New York, U.S.A., entrusted to his first-degree
application for Judicial confirmation of imperfect or cousin Dewey an application for registration, under the
incomplete title to public agricultural land under Section 48 of Land Registration Act, of a parcel of land located in
the Public Land Act, the lack of opposition and the Bacolod City. A year later, Louie returned to the Philippines
consequent order of default against those who did not and discovered that Dewey registered the land and obtained
answer or show up on the date of initial hearing, does not an Original Certificate of Title over the property in his
guarantee the success of the application. It is still incumbent Dewey’s name. Compounding the matter, Dewey sold the
upon the applicant to prove with well nigh incontrovertible land to Huey, an innocent purchaser for value. Louie
evidence that he has acquired a title to the land that is fit for promptly filed an action for reconveyance of the parcel of
registration. Absent such registrable title, it is the clear duty land against Huey. (2003)
of the Land Registration Court to dismiss the application a) Is the action pursued by Louie the proper
and declare the land as public land. An application for land remedy?
registration is a proceeding in rem. Its main objective is to
establish the status of the res whether it is still part of SUGGESTED ANSWER:
our public domain as presumed under the Regalian doctrine An action for reconveyance against Huey is not the proper
or has acquired the character of a private property. It is the remedy, because Huey is an innocent purchaser for value.
duty of the applicant to overcome that presumption with The proper recourse is for Louie to go after Dewey for
sufficient evidence. damages by reason of the fraudulent registration and
subsequent sale of the land. If Dewey is insolvent, Louie
In 1989, the heirs of Gavino, who died on August 10, 1987, may file a claim against the Assurance Fund (Heirs of Pedro
filed a petition for reconstitution of his lost or destroyed Lopez v. De Castro 324 SCRA 591 [2000] citing Sps. Eduarte
Torrens Title to a parcel of land in Ermita, Manila. This was v. CA, 323 Phil. 462, 467 [1996]).

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 64
Solicitor General filed in behalf of the Republic of the
b) Assuming that reconveyance is the proper Philippines a complaint for cancellation of the free
remedy, will the action prosper if the case was patent and the OCT issued in the name of Melvin and the
filed beyond one year, but within ten years, reversion of the land to public domain on the ground of
from the entry of the decree of registration? fraud and misrepresentation in obtaining the free patent.
On the same date, Percival sued Martin for the
SUGGESTED ANSWER: reconveyance of Lot B. Melvin filed his answers
Yes, the remedy will prosper because the action interposing the sole defense in both cases that the
prescribes in ten (10) years, not within one (1) year when Certificate of Title issued in his name became
a petition for the reopening of the registration decree may incontrovertible and indefeasible upon the lapse of one year
be filed. The action for reconveyance is from the issuance of the free patent. Given the
distinct from the petition to reopen the decree circumstances, can the action of the Solicitor General
of registration (Grey Alba v. De la Cruz, 17 Phil. 49 [1910}). and the case for reconveyance filed by Percival possibly
There is no need to reopen the registration proceedings, but prosper? (1997)
the property should just be reconveyed to the real
owner. The action for reconveyance is based on SUGGESTED ANSWER:
implied or constructive trust, which prescribes in ten "If fraud be discovered in the application which led to the
(10) years from the date of issuance of the original issuance of the patent and Certificate of Title, this Title
certificate of title. This rule assumes that the becomes ipso facto null and void. Thus, in a case where a
defendant is in possession of the land. Where it is the plaintiff person who obtained a free patent, knowingly made a false
who is in possession of the land, the action for reconveyance statement of material and essential facts in his application
would be in the nature of a suit for quieting for the title which for the same, by stating therein that the lot in question was
action is imprescriptible (David v. Malay, 318 SCRA 711 part of the public domain not occupied or claimed by any
[1999]). other person, his title becomes ipso facto canceled and
consequently rendered null and void."
Rommel was issued a certificate of title over a parcel of land "It is to the public interest that one who succeeds In
in Quezon City. One year later Rachelle, the legitimate fraudulently acquiring title to public land should not be
owner of the land, discovered the fraudulent registration allowed to benefit therefrom and the State, through the
obtained by Rommel. She filed a complaint against Rommel Solicitor General, may file the corresponding action for
for reconveyance and caused the annotation of a notice of annulment of the patent and the reversion of the land
lis pendens on the certificate of title issued to Rommel. involved to the public domain" (Dinero us. Director of
Rommel now invokes the indefeasibility of his title Lands; Kayaban vs. Republic L-33307,8-20-73; Director of
considering that one year has already elapsed from its Lands us. Hon. Pedro Samson Animas, L-37682, 3-29-74.) This
issuance. He also seeks the cancellation of the notice of Lis action does not prescribe. With respect to Percival's action
pendens. Will Rachelle's suit for reconveyance prosper? for reconveyance, it would have prescribed, having been
Explain. (1995) filed more than ten (10) years after registration and
issuance of an O.C.T. in the name of Melvin, were it not for the
SUGGESTED ANSWER: inherent infirmity of the latter's title. Under the facts, the
Yes, Rachelle's suit will prosper because all elements for an statute of limitations will not apply to Percival because
action for reconveyance are present. Rommel can invoke the Melvin knew that a part of the land covered by his title
indefeasibility of his title if Rachelle had filed a petition to actually belonged to Percival. So, instead of nullifying in
reopen or review the decree of registration. But Rachelle toto the title of Melvin, the court, in the exercise of equity
instead filed an ordinary action in personam for and jurisdiction, may grant prayer for the reconveyance of
reconveyance. In the latter action, indefeasibility is not a Lot B to Percival who has actually possessed the land under a
valid defense because, in filing such action, Rachelle is not claim of ownership since 1947. After all, if Melvin's title is
seeking to nullify nor to impugn the indefeasibility of declared void ab initio and the land is reverted to the public
Rommel's title. She is only asking the court domain, Percival would just the same be entitled to
to compel Rommel to reconvey the title to her as the preference right to acquire the land from the government.
legitimate owner of the land. Besides, well settled is the rule that once public land has
been in open, continuous, exclusive and notorious
On 10 September 1965, Melvin applied for a free patent possession under a bonafide claim of acquisition of
covering two lots - Lot A and Lot B - situated in Santiago, ownership for the period prescribed by Section 48 of the
Isabela. Upon certification by the Public Land Inspector Public Land Act, the same ipso jure ceases to be public and in
that Melvin had been in actual, continuous, open, notorious, contemplation of law acquired the character of private
exclusive and adverse possession of the lots since 1925, the land. Thus, reconveyance of the land from Melvin to Percival
Director of Land approved Melvin's application on 04 June would be the better procedure, (Vitale vs. Anore, 90 Phil. 855;
1967. On 26 December 1967, Original Certificate of Title Pena, Land Titles and Deeds, 1982, Page 427)
(OCT) No. P-2277 was issued in the name of Melvln. On 7
September 1971, Percival filed a protest alleging that Lot B What are the essential requisites or elements for the
which he had been occupying and cultivating since 1947 allowance of the reopening or review of a decree of
was included in the Free Patent issued in the name of registration? (1992)
Melvin. The Director of Lands ordered the investigation of Distinguish the Torrens system of land registration from the
Percival's protest. The Special Investigator who conducted system of recording of evidence of title. (1994)
the investigation found that Percival had been in actual
cultivation of Lot B since 1947. On 28 November 1986, the


Maria Enriquez failed to pay the realty taxes on her counsel to prepare a manual containing a summary of the
unregistered agricultural land located in Magdugo, Toledo pertinent laws and regulations relating to land registration
City. In 1989, to satisfy the taxes due, the City sold it at and acquisition of title to land. The manual should include
public auction to Juan Miranda, an employee at the the following items: (2007)
Treasurer's Office of said City, whose bid at P10,000.00 was a. What is the governing law?
the highest. In due time, a final bill of sale was executed in b. What properties are not registrable?
his favor. Maria refused to turn-over the possession of the
property to Juan alleging that (1) she had been, in the Manuel was born on 12 March 1940 in a 1 000-square meter
meantime, granted a free patent and on the basis thereof an property where he grew up helping his father, Michael,
Original Certificate of Title was issued to her, and (2) the sale cultivate the land. Michael has lived on the property since
in favor of Juan is void from the beginning in view of the the land was opened for settlement at about the time of the
provision in the Administrative Code of 1987 which Commonwealth government in 193 5, but for some reason
prohibits officers and employees of the government from never secured any title to the property other than a tax
purchasing directly or indirectly any property sold by declaration in his name. He has held the property through
the government for nonpayment of any tax, fee or other the years in the concept of an owner and his stay was
public charge. (1991) uncontested by others. He has also conscientiously and
a) Is the sale to Juan valid? If so, what is the effect of continuously paid the realty taxes on the land.
the Issuance of the Certificate of Title to Maria? Michael died in 2000 and Manuel - as Michael’s only son and
heir -now wants to secure and register title to the land in
SUGGESTED ANSWER: his own name. He consults you for legal advice as he wants
The sale of the land to Juan is not valid, being contrary to perfect his title to the land and secure its registration in
to law. Therefore, no transfer of ownership of the land his name. (2013)
was effected from the delinquent taxpayer to him. a. What are the laws that you need to consider in
The original certificates of title obtained by Maria thru a advising Manuel on how he can perfect his title
free patent grant from the Bureau of Lands under Chapter and register the land in his name? Explain the
VII, CA 141 is valid but in view of her relevance of these laws to your projected
delinquency, the said title is subject to the right of course of action.
the City Government to sell the land at public auction. b. What do you have to prove to secure Manuel's
The issuance of the OCT did not exempt the land objectives and what documentation are
from the tax sales. Section 44 of P.O. No. 1529 necessary?
provides that every registered owner receiving a
Certificate of Title shall hold the same free SUGGESTED ANSWER:
from an encumbrances, subject to certain I would advise Manuel to file an application for registration
exemptions. under Sec. 14 of Pres. Decree No. 1529, or the Property
Registration Decree (PRD), specifically See. 14 (1) which
b) If the sale is void, may Juan recover the requires (a) that the land applied for forms part of the
P10,000.00? If not, why not? alienable and disposable (A & D) portion of the public
domain, and (b) that the applicant has been in open,
SUGGESTED ANSWER: continuous and notorious possession and occupation thereof
Juan may recover because he was not a party to the under a bona fide claim of ownership since June 12, 1945, or
violation of the law. earlier. However, it is only necessary that the land is already
declared A & D land “at the time the application for
c) If the sale is void, did it not nevertheless, operate registration is filed" (Malabanan v. Republic, GR. No.
to divert Maria of her ownership? If it did, who 180067, June 30, 2009).
then is the owner of the property?
Manuel could also invoke Sec. 14 (2) of the same Decree,
SUGGESTED ANSWER: which allows registration through ordinary acquisitive
No, the sale did not divest Maria of her title precisely because prescription for thirty years, provided, however, that the land
the sale is void. It is as good as if no sale ever took place. In is “patrimonial” in character, i.e., already declared by the
tax sales, the owner is divested of his land initially upon government (a) as A & D land, and (b) no longer needed for
award and issuance of a Certificate of Sale, and finally after public use or public service (Malabanan, supra).
the lapse of the 1 year period from date of registration, to
redeem, upon execution by the treasurer of an instrument Manuel could also file an application for “confirmation of
sufficient in form and effects to convey the property. Maria imperfect or incomplete title" through "judicial legalization
remained owner of the land until another tax sale is to be under Sec. 48 (b) of CA No. 141 or the Public Land Act (PLA).
performed in favor of a qualified buyer. But, as held in Malabanan, there is no substantial difference
between this provision and Sec. 14 (1) of the PRD. Both refer
Bedrock Land & Property Development Corp. is a to agricultural lands already classified us alienable and
development company engaged in developing and selling disposable at the time the application is filed, and require
subdivisions, condominium units and industrial estates. In possession and occupation since June 12, 1945. The only
order to replenish its inventories, it embarked on an difference is that under the PRD, there already exists a title
aggressive land banking program. It employed "scouts" who which is to he confirmed, whereas under the PLA, the
roam all over the Philippines to look for and conduct presumption is that land is still public land (Republic v.
investigations on prospective sites for acquisition and Aquino, G.R. No. L-33983, January 27, I983).
development, whether developed, semi-developed or raw
land. The management of Bedrock asks you as the company

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 66
Manuel may also invoke “vested rights" acquired under Rep. spouses Juan and Juana de la Cruz because at the time they
Act No. 1942 dated June 2, 1957, which amended Sec. 48 (b) acquired ownership over the land, albeit imperfect, they
of the PLA by providing for a prescriptive period of thirty were still Filipino citizens. The application for registration is a
years or judicial confirmation of imperfect title. It must only mere confirmation of the imperfect title which the
he demonstrated that possession and occupation spouses have already acquired before they became Canadian
commenced on January 24, 1947 and the 30-year period was citizens. (Republic v. CA, 235 SCRA 567 [1994]).
completed prior to the effectivity of PD No. 1073 on January
25, 1977. PD No. 1073 now requires possession and TORTS AND DAMAGES
occupation since June 12, 1945 (Republic v. Espinosa, GR.
No. 171514, July 18, 2012). Explain the following concepts and doctrines and give an
example of each: concept of trust de son tort (constructive
Another alternative is for Manuel to secure title through trust) and doctrine of discovered peril (last clear chance)
administrative proceedings under the homestead or free (2007)
patent provisions of the PLA. The title issued has the same Mr and Mrs R own a burned-out building, the firewall of
efficacy and validity as a title issued through judicial which collapsed and destroyed the shop occupied by the
proceedings, but with the limitation that the land cannot be family of Mr and Mrs S, which resulted in injuries to said
sold or disposed of within five years from the issuance of couple and the death of their daughter. Mr and Mrs S had
patent (Sec. 118, CA No. 141, as amended). been warned by Mr & Mrs R to vacate the shop in view of
its proximity to the weakened wall but the former failed to
SUGGESTED ANSWER: do so. Mr & Mrs S filed against Mr and Mrs R an action
Manuel has the burden to overcome the presumption of for recovery of damages the former suffered as a result of
State ownership by “well-nigh incontrovertible” evidence the collapse of the firewall. In defense, Mr and Mrs R rely
(Ong v'. Republic, G.R. No. 175746. March 12, 2008). on the doctrine of last clear chance alleging that Mr and Mrs
Accordingly, he must show that the land is already classified S had the last clear chance to avoid the accident if only
as A & D “at the time the application for registration is filed" they heeded the former’s warning to vacate the shop,
and that he has been in “possession and occupation thereof" and therefore Mr and Mrs R’s prior negligence should
in the manner required by law since June 12, 1945, or earlier. be disregarded. If you were the judge, how would you decide
the case? State your reasons. (1990)
Manuel may tack his possession to that of his predecessor-
in-interest (Michael) by the testimony of disinterested and SUGGESTED ANSWER:
knowledgeable eyewitnesses. Overt acts of possession may I would decide in favor of Mr & Mrs S. The proprietor of a
consist in introducing valuable improvements like fencing the building or structure is responsible for the damages
land, constructing a residential house thereon, cultivating resulting from its total or partial collapse, if it should be due to
the land and planting fruit hearing trees, declaring the land the lack of necessary repairs (Art 2190 Civil Code) As regards
for taxation purposes and paying realty taxes. all of which are the defense of “last clear chance,” the same is not tenable
corroborative proof of possession. because according to the SC in one case (De Roy v CA L-
80718, Jan 29, 1988, 157 S 757) the doctrine of last clear
To identify the land. he must submit the tracing cloth plan or chance is not applicable to instances covered by Art 2190 of
a duly-certified blueprint or whiteprint copy thereof the Civil Code. Further, in Phoenix Construction, Inc. v.
(Director of Lands v. Reyes, GR. No. L-27594, November 28, Intermediate Appellate Court (G.R. L-65295, March 10,
1975; Director of Lands v. CA and Iglesia ni Cristo, GR No. L- 1987. 148 SCRA 353) the Supreme Court held that the role
56613, March 14, 1988). of the common law "last clear chance" doctrine in relation to
Article 2179 of the Civil Code is merely to mitigate damages
To show the classification of the land as A & D, the application within the context of contributory negligence.
must be accompanied by (1) a CENRO or PENRO certification;
and (2) a certified true copy of the original classification On her third month of pregnancy, Rosemarie married to
approved by the DENR Secretary (Republic v. Bantigue, GR. Boy. For reasons known only to her, and without informing
No. 162322, March 14, 2012). A presidential or legislative act Boy, went to the clinic of X, a known abortionist, who for a
may also be considered. fee, removed and expelled the fetus from her womb, Boy
learned of the abortion six (6) months later. Availing of that
III. Citizenship Requirement portion of Section 12 of Article II of the 1987 Constitution
which reads;
In 1970, the spouses Juan and Juana de la Cruz, then The State x xx shall equally protect the life of the mother and
Filipinos, bought the parcel of unregistered land in the the life of the unborn from conception, "xxx" which he claims
Philippines on which they built a house which became their confers a civil personality on the unborn from the moment
residence. In 1986, they migrated to Canada and became of conception. Boy filed a case for damages against the
Canadian citizens. Thereafter, in 1990, they applied, opposed abortionist, praying therein that the latter be ordered to pay
by the Republic, for the registration of the aforesaid land him: (a) P30,000.00 as indemnity for the death of the fetus,
in their names. Should the application of the spouses de la (b) P100.000.00 as moral damages for the mental anguish
Cruz be granted over the Republic’s opposition? Why? (2003) and anxiety he suffered, (c) P50,000.00 as exemplary
damages, (d) P20,000.00 as nominal damages, and (e)
SUGGESTED ANSWER: P25,000.00 as attorney's fees. May actual damages be also
Yes, the application should be granted. As a rule, the recovered? If so, what facts should be alleged and proved?
Constitution prohibits aliens from owning private lands in (1991)
the Philippines. This rule, however, does not apply to the


SUGGESTED ANSWER: that the downhill slope caused the van to gain speed and
Yes, provided that the pecuniary loss suffered should be that, as he stepped on the brakes to check the acceleration,
substantiated and duly proved. the brakes locked, causing the van to go even faster and
eventually to hit the car in front of it. Orlando and Diego
If a pregnant woman passenger of a bus were to suffer an contend that the sudden malfunction of the van’s brake
abortion following a vehicular accident due to the gross system is a fortuitous even and that, therefore, they are
negligence of the bus driver, may she and her husband exempt from any liability. Is this contention tenable? Explain.
claim damages from the bus company for the death of their (2002)
unborn child? Explain. (2003)
SUGGESTED ANSWER: No. Mechanical defects of a motor vehicle do not constitute
No, the spouses cannot recover actual damages in the form of fortuitous event, since the presence of such defects would
indemnity for the loss of life of the unborn child. This is have been readily detected by diligent maintenance check.
because the unborn child is not yet considered a person and The failure to maintain the vehicle in safe running condition
the law allows indemnity only for loss of life of person. The constitutes negligence.
mother, however may recover damages for the bodily injury
she suffered from the loss of the fetus which is considered
part of her internal organ. The parents may also recover
damages for injuries that are inflicted directly upon them, Dr. and Mrs. Almeda are prominent citizens of the country
e.g., moral damages for mental anguish that attended the and are frequent travelers abroad. In 1996, they booked
loss of the unborn child. Since there is gross negligence, round-trip business class tickets for the Manila-Hong Kong-
exemplary damages can also be recovered. (Gelus v. CA, Manila route of the Pinoy Airlines, where they are holders
2SCRA 801 [1961]) of Gold Mabalos Class Frequent Flier cards. On their return
flight, Pinoy Airlines upgraded their tickets to first class
Johnny Maton's conviction for homicide was affirmed by without their consent and, inspite of their protestations to
the Court of Appeals and in addition although the be allowed to remain in the business class so that they could
prosecution had not appealed at all. The appellate court be with their friends, they were told that the business class
increased the indemnity for death from P30,000.00 to was already fully booked, and that they were given priority
P50,000.00. On his appeal to the Supreme Court, among in upgrading because they are elitemembers/holders of
the other things Johnny Maton brought to the high court's Gold Mabalos Class cards. Since they were embarrassed at
attention, was the increase of indemnity imposed by the the discussions with the flight attendants, they were forced
Court of Appeals despite the clear fact that the People had to take the flight at the first class section apart from their
not appealed from the appellate court's judgment. Is Johnny friends who were in the business class. Upon their return to
Maton correct? (1994) Manila, they demanded a written apology from Pinoy
Airlines. When it went unheeded, the couple sued Pinoy
SUGGESTED ANSWER: Airlines for breach of contract claiming moral and
In Abejam v. Court of Appeals, the Supreme Court said that exemplary damages, as well as attorney's fees. Will the action
even if the issue of damages were not raised by the prosper? Give reasons. (2004, 2005)
appellant in the Court of Appeals but the Court of Appeals in
its findings increased the damages, the Supreme Court will SUGGESTED ANSWER:
not disturb the findings of the Court of Appeals. Yes, the action will prosper. Article 2201 of the Civil Code
entitles the person to recover damages which may be
As a result of a collision between the taxicab owned by A attributed to non-performance of an obligation. In Alitalia
and another taxicab owned by B, X, a passenger of the first Airways v. Court of Appeals (G.R. No. 77011, July 24, 1990),
taxicab, was seriously injured. X later filed a criminal action when an airline issues ticket to a passenger confirmed on a
against both drivers. May both taxicab owners raise the particular flight, a contract of carriage arises and the
defense of due diligence in the selection and supervision of passenger expects that he would fly on that day. When the
their drivers to be absolved from liability for damages to X? airline deliberately overbooked, it took the risk of having to
Reason. (1992, 1997, 2003) deprive some passengers of their seat in case all of them
would show up. For the indignity and inconvenience of
SUGGESTED ANSWER: being refused the confirmed seat, said passenger is entitled
It depends. If the civil action is based on a quasi-delict the to moral damages. In the given problem, spouses Almeda had
taxicab owners may raise the defense of diligence of a good a booked roundtrip business class ticket with Pinoy Airlines.
father of a family in the selection and supervision of the When their tickets were upgraded to first class without their
driver; if the action against them is based on culpa consent, Pinoy Airlines breached the contract. As ruled in
contractual or civil liability arising from a crime, they cannot Zulueta v. Pan American (G.R. No. L-28589, January 8, 1973),
raise the defense. in case of overbooking, airline is in bad faith. Therefore,
spouses Almeda are entitled to damages.
A van owned by Orlando and driven by Diego, while
negotiating a downhill slope of a city road, suddenly gained A Gallant driven by John and owned by Art, and a Corolla
speed, obviously beyond the authorized limit in the area, driven by its owner, Gina, collided somewhere along
and bumped a car in front of it, causing severed damage to Adriatico Street. As a result of the accident, Gina had a
the care and serious injuries to its passengers. Orlando was concussion. Subsequently. Gina brought an action for
not in the car at the time of the incident. The car owner and damages against John and Art. There is no doubt that the
the injured passengers sued Orlando and Diego for damages collision is due to John's negligence. Can Art, who was in
caused by Diego’s negligence. In their defense, Diego claims

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 68
the vehicle at the time of the accident, be held solidarily The public officer is not automatically considered to have
liable with his driver, John? (1996, 1998, 2002) violated the rights or liberties of a person simply because the
rule the public officer issued was declared invalid by the
Court. The complainant must still allege and prove the
SUGGESTED ANSWER: particular injury or prejudice he has suffered from the
Yes. Art may be held solidary liable with John, if it was violation of his constitutional right by the issuance of the
proven that the former could have prevented the invalidated rule.
misfortune with the use of due diligence. Article 2184 of the
Civil Code states: "In motor mishaps, the owner is solidary The problem does not state any fact from which any malice,
liable with his driver, if the former, who was in the vehicle, bad faith or gross negligence on the part of Vinzons-Chato
could have, by the use of due diligence, prevented the may be inferred, or the particular injury or prejudice the
misfortune, x x x" complainant may have suffered as a result of the violation of
his constitutional rights. Hence, she cannot be held liable.
Roberto was in Nikko Hotel when he bumped into a friend The facts presented are similar to the facts of the case of
who was then on her way to a wedding reception being held Vinzons-Chato v. Fortune, G.R. No. 141309. December 23,
in said hotel. Roberto alleged that he was then invited by 2008.
his friend to join her at the wedding reception and carried
the basket full of fruits which she was bringing to the affair. A collision occurred at an intersection involving a bicycle
At the reception, the wedding coordinator of the hotel and a taxicab. Both the bicycle rider (a businessman then
noticed him and asked him, allegedly in a loud voice, to doing his morning exercise) and the taxi driver claimed that
leave as he was not in the guest list. He retorted that he had the other was at fault. Based on the police report, the
been invited to the affair by his friend, who however denied bicycle crossed the intersection first but the taxicab,
doing so. Deeply embarrassed by the incident, Roberto then crossing at a fast clip from the bicycle's left, could not brake
sued the hotel for damages under Articles 19 and 21 of the in time and hit the bicycle's rear wheel, toppling it and
Civil Code. Will Roberto’s action prosper? Explain. (2012) throwing the bicycle rider into the sidewalk 5 meters away.

SUGGESTED ANSWER: The bicycle rider suffered a fractured right knee, sustained
It depends. While the hotel has the right to exclude an when he fell on his right side on the concrete side walk. He
uninvited guest from the wedding reception, that does not was hospitalized and was subsequently operated on,
give the hotel the license to humiliate Roberto. If the rendering him immobile for 3 weeks and requiring physical
wedding coordinator of the hotel acted wrongfully e.g. with rehabilitation for another 3 months. In his complaint for
abuse of right, unfairly, or in a manner that exposed Roberto damages, the rider prayed for the award ofP1,000,000
to unnecessary ridicule or shame, his action will proper. actual damages,P200,000 moral damages, P200,000
Otherwise, Roberto’s action will prosper. The hotel is liable exemplary damages, P1 00,000 nominal damages
for the wrongful acts of its employees. and P50,000 attorney's fees.

Liwayway Vinzons-Chato was then the Commissioner of Assuming the police report to be correct and as the lawyer
Internal Revenue while Fortune Tobacco Corporation is an for the bicycle rider, what evidence (documentary and
entity engaged in the manufacture of different brands of testimonial) and legal arguments will you present in court
cigarettes, among which are "Champion," "Hope," and to justify the damages that your client claims? (1994, 2002,
"More" cigarettes. 2013)

Fortune filed a complaint against Vinzons-Chato to recover SUGGESTED ANSWER:

damages for the alleged violation of its constitutional rights I will base the claim of my client on quasi-delict under Article
arising from Vinzons-Chato’s issuance of Revenue 2176 of the Civil Code of the Philippines.
Memorandum Circular No. 37-934 (which re-classified The requisites for a claim under quasi-delict to prosper are as
Fortune cigarettes as locally manufactured with foreign follows:
brands and thereby imposed higher taxes), which the 1. Act or omission, there being fault or negligence;
Supreme Court later declared invalid. 2. Damage or injury; and
3. Causal connection between the damage and the act
Vinzons-Chato filed a Motion to Dismiss arguing that she or omission
cannot be held liable for damages for acts she performed The case clearly involves a quasi-delict where my client, the
while in the discharge of her duties as BIR Commissioner. Is bicycle rider, suffered injury as a result of the negligence of
she correct? Explain (2012) the over-speeding taxi driver, without fault on my client’s

To prove actual damages, aside from the testimony of my

SUGGESTED ANSWER: client, I will present his hospital and medical bills. Receipts of
Yes. As a general rule, a public officer is not liable for acts the fees paid on the rehabilitation will also be presented.
performed in the discharge of his duties. The exceptions are [The sentence in red should be replaced with the following
when he acted with malice, bad faith, or gross negligence in sentence because he is a businessman and not an employee.
the performance of his duty, or when his act is in violation of – Furthermore, I will present income tax returns, contracts
the Constitutionally guaranteed rights and liberties of a and other documents to prove unrealized profits as a result
person under Article 32 of the NCC. of this temporary injury.] I will also call the attending
physician to testify as to the extent of the injuries suffered by


my client, and to corroborate the contents of the medical that his check is sufficiently funded. When the car dealer
documents. deposited the check, it was dishonored on the ground of
Based on Article 2202, in quasi-delicts, the defendant shall be "Account Closed." After an investigation, it was found that
liable for all damages which are the natural and probable an employee of the bank misplaced Tony's account ledger.
consequences of the act or omission complained of. It is not Thus, the bank erroneously assumed that his account no
necessary that such damages have been foreseen or could longer exists. Later it turned out that Tony's account has
have been foreseen by the defendant. more than sufficient funds to cover the check. The dealer
however, immediately filed an action for recovery of
Unlike actual damages, no proof of pecuniary loss is possession of the vehicle against Tony for which he was
necessary in order that moral, nominal, temperate, terribly humiliated and embarrassed. Does Tony have a
liquidated or exemplary damages may be adjudicated. The cause of action against Premium Bank? Explain. (2006)
assessment is left to the discretion of the Court (Art. 2216,
Civil Code). There must still be proof of pecuniary estimation, SUGGESTED ANSWER:
however. Yes, Tony may file an action against Premium Bank for
damages under Art. 2176. Even if there exists a contractual
Moral damages can be recovered by my client under Articles relationship between Tony and Premium Bank, an action
2219 and 2200. Moral damages may be recovered in case of for quasi-delict may nonetheless prosper. The Supreme
a quasi-delict causing physical injuries. Additionally, it must Court has consistently ruled that the act that breaks the
be proved that such damages were the proximate result of contract may also be a tort. There is a fiduciary relationship
the act complained of. Medical certificates will be presented, between the bank and the depositor, imposing utmost
along with the testimony from my client and other diligence in managing the accounts of the depositor. The
eyewitness accounts, in order to support the award for moral dishonor of the check adversely affected the credit standing
damages. of Tony, hence, he is entitled to damages (Singson v. BPI,
G.R. No. L-24932, June 27, 1968; American Express
Exemplary damages may be granted if the defendant acted International, Inc. v. IAC, G.R. No. 72383, November 9, 1988;
in wanton, fraudulent, reckless, oppressive, or malevolent Consolidated Bank and Trust v. CA, G.R. No. L-70766
manner. While the amount of exemplary damages need not November 9,1998).
be proved, the plaintiff must show that he is entitled to moral
or compensatory damages. In support of this, I will present Romano was bumped by a minivan owned by the Solomon
the police report showing the circumstances under which the School of Practical Arts (SSPA). The minivan was driven by
accident took place, taking into account the actions of the Peter, a student assistant whose assignment was to clean the
parties. I will ask the officials who responded to the accident school passageways daily one hour before and one hour
to testify as to the conduct of the parties at the time of the after regular classes, in exchange for free tuition. Peter was
accident in order to determine whether defendant was guilty able to drive the school vehicle after persuading the regular
of gross negligence. driver, Paul, to turn over the wheel to him (Peter). Romano
suffered serious physical injuries. The accident happened at
Finally, attorney’s fees may be recovered when exemplary night when only one headlight of the vehicle was
damages are awarded (Art. 2208, Civil Code). functioning and Peter only had a student driver's permit. As a
consequence, Peter was convicted in the criminal case.
Rosa was leasing an apartment in the city. Because of the Thereafter, Romano sued for damages against Peter and
Rent Control Law, her landlord could not increase the rental SSPA. (1991)
as much as he wanted to, nor terminate her lease as long a) Will the action for damages against Peter and
as she was paying her rent. In order to force her to leave SSPA prosper?
the premises, the landlord stopped making repairs on the
apartment, and caused the water and electricity services to SUGGESTED ANSWER:
be disconnected. The difficulty of living without Yes. It will prosper (Art, 2180) because at the time he drove
electricity and running water resulted in Rosa's suffering a the vehicle, he was not performing his assigned tasks as
nervous breakdown. She sued the landlord for actual and provided for by Art. 2180. With respect to SSPA, it is not liable
moral damages. Will the action prosper? Explain. (1996) for the acts of Peter because the latter was not an
employee as held by Supreme Court in Filamer Christian
SUGGESTED ANSWER: Institute vs. CA. (190 SCRA 485). Peter belongs to a special
Yes, based on quasi-delict under the human category of students who render service to the school in
relationsprovisions of the New Civil Code (Articles 19, 20 exchange for free tuition fees.
and 21) because the act committed by the lessor is
contrary to morals. Moral damages are recoverable under b) Will your answer be the same if, Paul, the
Article 2219 (10) in relation to Article 21. Although the regular driver, was impleaded as party defendant
action is based for allowing Peter to drive the minivan without a
on quasi-delict and not on contract, actual damages may be regular driver's license.
recovered if the lessee is able to prove the losses and
expenses she suffered. SUGGESTED ANSWER:
I would maintain the same answer because the incident did not
Tony bought a Ford Expedition from a car dealer in occur while the employee was in the performance of his duty
Muntinlupa City. As payment, Tony issued a check drawn as such employee. The incident occurred at night time, and
against his current account with Premium Bank. Since he in any case, there was no indication in the problem that
has a good reputation, the car dealer allowed him to he was performing his duties as a driver.
immediately drive home the vehicle merely on his assurance

*QUAMTO is a compilation of past bar questions with answers as suggested by UPLC and other distinct luminaries in
the academe, and updated by the UST Academics Committee to fit for the 2014 Bar exams. 70
c) Is the exercise of due diligence in the selection family (Metro Manila Transit v. CA, 223 SCRA 521 [1993];
and supervision of Peter and Paul a material Delsan Transport Lines v, C&tA Construction, 412 SCRA
issue to be resolved in this case? 524 2003). Likewise, if the driver is charged and convicted in a
criminal case for criminal negligence, BT is subsidiarily liable
SUGGESTED ANSWER: for the damages arising from the criminal act.
In the case of Peter, if he were to be considered as
employee, the exercise of due diligence in the selection and Arturo sold his Pajero to Benjamin for P1 Million.
supervision of peter would not be a material issue since the Benjamin took the vehicle but did not register the sale with
conviction of Peter would result in a subsidiary liability the Land Transportation Office. He allowed his son Carlos,
where the defense would not be available by the employer. a minor who did not have a driver's license, to drive the car
In the case of Paul, since the basis of subsidiary liability is to buy pan de sal in a bakery. On the way, Carlos driving in
the pater familias rule under Art. 2180, the defense of a reckless manner, sideswiped Dennis, then riding a bicycle.
selection and supervision of the employee would be a valid As a result, he suffered serious physical injuries. Dennis
defense. filed a criminal complaint against Carlos for reckless
imprudence resulting in serious physical injuries. (2006)
After working overtime up to midnight, Alberto, an a) Can Dennis file an independent civil action against
executive of an insurance company drove a company Carlos and his father Benjamin for damages based
vehicle to a favorite Videoke bar where he had some drinks on quasi-delict? Explain.
and sang some songs with friends to "unwind". At 2:00
a.m., he drove home, but in doing so, he bumped a tricycle, SUGGESTED ANSWER:
resulting in the death of its driver. May the insurance Yes, Dennis can file an independent civil action against Carlos
company be held liable for the negligent act of Alberto? and his father for damages based on quasi-delict there
Why? (2001) being an act or omission causing damage to another
without contractual obligation. Under Section 1 of Rule 111
SUGGESTED ANSWER: of the 2000 Rules on Criminal Procedure, what is deemed
The insurance company is not liable because when the instituted with the criminal action is only the action to
accident occurred, Alberto was not acting within the recover civil liability arising from the act or omission
assigned tasks of his employment. punished by law. An action based on quasi-delict is no
It is true that under Art. 2180 (par. 5), employers are liable longer deemed instituted and may be filed separately [Section
for damages caused by their employees who were acting 3, Rule 111, Rules of Criminal Procedure].
within the scope of their assigned tasks. However, the mere
fact that Alberto was using a service vehicle of the employer at b) Assuming Dennis' action is tenable, can Benjamin
the time of the injurious accident does not necessarily raise the defense that he is not liable because the
mean that he was operating the vehicle within the scope of vehicle is not registered in his name? Explain.
his employment. In Castilex Industrial Corp. v. Vasquez Jr
(321 SCRA393 [1999]). the Supreme Court held that SUGGESTED ANSWER:
notwithstanding the fact that the employee did some No, Benjamin cannot raise the defense that the vehicle is
overtime work for the company, the former was, not registered in his name. His liability, vicarious in
nevertheless, engaged in his own affairs or carrying out a character, is based on Article 2180 because he is the father
personal purpose when he went to a restaurant at 2:00 a.m. of a minor who caused damage due to negligence. While
after coming out from work. The time of the accident (also the suit will prosper against the registered owner, it is the
2:00 a. m.) was outside normal working hours. actual owner of the private vehicle who is ultimately liable (See
Duavit v. CA, G.R. No. L-29759, May 18, 1989). The purpose
Explain the concept of vicarious liability in quasi-delicts. of car registration is to reduce
(2002) difficulty in identifying the party liable in case of accidents
(Villanueva v. Domingo, G.R. No. 144274, September 14,
OJ was employed as professional driver of MM Transit bus 2004)
owned by Mr. BT. In the course of his work, OJ hit a
pedestrian who was seriously injured and later died in the
hospital as a result of the accident. The victim’s heirs sued
the driver and the owner of the bus for damages. Is there a
presumption in this case that Mr. BT, the owner, had been
negligent? If so, is the presumption absolute or not?
Explain. (2004)

Yes, there is a presumption of negligence on the part of the
employer. However, such presumption is rebuttable. The
liability of the employer shall cease when they prove that
they observed the diligence of a good father of a family to
prevent damage (Article 2180, Civil Code). When the
employee causes damage due to his own negligence
while performing his own duties, there arises the juris tantum
presumption that the employer is negligent, rebuttable only
by proof of observance of the diligence of a good father of a