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SCENARIO 1. The Landowner is the Builder, Planter and Sower using material of another.

Landowner is the Builder, Planter and Sower (LO + BPS) Owner of the Material (OM)
Good Faith Good Faith
Since both acted in good faith the principal (landowner + builder) has the Since both acted in good faith the OM may demand as long as no
first right to choose a remedy: damages will be incurred:
1. Appropriate/ acquire improvements but reimburse the cost of 1. Right to be indemnified (paid) for the value of the materials; (Art.
materials to the OM. (Art. 447) 447)
(No person shall unjustly enrich himself at the expense of 2. Limited right of removal if there would be no injury to work
another.) constructed, or without plantings or constructions being destroyed.
(Art. 447)
Legal effect: Since he is responsible for the attachment or incorporation
and having acted in good faith, he is exonerated from punitive liability and
damages. (Art. 447)

Bad Faith (BOTH)


Since both acted in bad faith it follows the rule as though both acted in good faith (Art. 453)
(The bad faith of one party is neutralized by the bad faith of the other, therefore both should be considered as having acted in good faith.)

Bad Faith Good Faith


Since LO acted in bad faith he is obliged to: Since OM acted in good faith he has the first right to choose remedy:
1. Indemnify (pay) OM for the value of the materials; (Art. 447) 1. Right to be indemnified (paid) for the value of the materials; (Art.
2. Indemnify (pay) OM for damages; (Art. 447) 447)
2. Right to be indemnified for damages; (Art. 447)
Legal effect: Having acted in bad faith LO shall also suffer the other 3. Absolute right of remove/retrieve of the work constructed, in any
unfavorable consequences of his act. (whatever OM chooses) event. (Art. 447)

Good Faith Bad Faith


Since LO acted in good faith the principal (land owner + builder) has the Since OM acted in bad faith he has:
first right to choose a remedy: 1. Loses his material without any right to indemnity; (Art. 449)
1. Appropriate/ acquire improvements without paying indemnity for the 2. Liable to the land owner for damages.
cost of materials to the OM; (Art. 449)
2. Right to be indemnified for damages.

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SCENARIO 2. The Builder, Planter and Sower using his own material, plants, build or sows at the Land of Another.

Landowner (LO) Builder, Planter and Sower is the Owner of the Material (BPS + OM)
Good Faith Good Faith
Since both acted in good faith, a conflict of rights arises (state of forced co- Since both acted in good faith the Builder, Planter, and Sower and the
ownership). It is necessary to protect the owner of the improvements (OM) Owner of the Material
without causing injustice to the owner of the land. 1. Right to be indemnified (paid) for the value of the materials and
cost of labor; (Art. 448) *if LO insolvent  Right to retention
The owner of the land choses the first option because his right is older and by (non-payment of rent pending reimbursement)
the principle of accession he is entitled of the ownership of the accessory thing 2. He cannot be compelled to buy the land but instead pay
(the accessory follows the principal): (HE MUST CHOOSE ONE, otherwise the reasonable rent.
COURT WILL FIX IT)
1. Appropriate/ acquire improvements after paying indemnity;
2. Sell the land to BP (unless the value of the land is considerably
greater than the improvements  forced lease) or collect rent from the
sower (Art 448)
*if BP/OM is insolvent  remedy of remotion (removal of the improvement)
 remedy of retention (as is where is)

Bad Faith (BOTH)


Since both acted in bad faith it follows the rule as though both acted in good faith (Art. 453)
(The bad faith of one party is neutralized by the bad faith of the other, therefore both should be considered as having acted in good faith.)

Bad Faith Good Faith


Since LO acted in bad faith he is obliged to: Since BPS/OM acted in good faith he has the first right to choose
1. Indemnify (pay) OM for the value of the materials; (*Art.447 ) remedy:
2. Indemnify (pay) OM for damages; (*Art. 447) 1. Right to be indemnified (paid) for the value of the materials and
3. Landowner has no option to sell the land and cannot compel BPS/OM to cost of labor; (*Art. 447)
buy the land. 2. Absolute right of remove/retrieve of the work constructed, in
any event, even if it will damage the property (except sower);
(*Art. 447)
3. Right to buy the land for BP and non-payment rental for Sower
until harvest.
*All options has a RIGHT to be indemnified for damages;
(*Art. 447)
Good Faith Bad Faith
Since LO acted in good faith the principal (land owner) has the first right to Since BPS/OM acted in bad faith he has:
choose a remedy: 1. Loses improvements without any right to indemnity; (Art. 449)
1. Appropriate/ acquire improvements (built, planted or sown) without 2. Entitled to reimbursement of necessary expenses in
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paying indemnity for the cost of materials and labor to BPS/OM; (Art. preservation of the land;
449) 3. No right to remove or demolish the improvements;
2. Order demolition of improvements or restoration of lands to its former 4. Liable to the land owner for damages.
condition at the expense of the BPS/OM.(Art 450) (right of remotion)
3. Compel BP/OM to pay the price of the land (EVEN IF the value of the
land is considerably greater than the improvements  forced lease)
or collect rent from the sower; (Art. 451)
*All options has a RIGHT to be indemnified for damages;

*Except when the owner of the materials is the sower…


SCENARIO 3. The Builder, Planter and Sower plants, build or sows at the Land of Another using material of another.

Landowner Builder, Planter and Sower Owner of the Material


Good Faith Good Faith Good Faith
Since all acted in good faith, owner of the land choses 1. Right of retention until necessary and 1. Collect value of material primarily
the first option because his right is older and by the useful expenses are paid; from BPS and if BPS is insolvent 
principle of accession he is entitled of the ownership of 2. Pay value of the materials to OM landowner is subsidiary liable;
the accessory thing (the accessory follows the principal):: *no damages incurred 2. Limited right of removal if there
1. Right to appropriate/ acquire improvements and would be no injury to work
pay indemnity to BPS; subsidiary liable to OM for constructed, or without plantings or
value of materials. constructions being destroyed.
2. OPTION TO: *no damages incurred
A. Sell land to BP except if the value of land is
considerably more;
B. Rent to sower
*no damages incurred
Good Faith Good Faith Bad Faith
1. Right to appropriate/ acquire improvements and 1. Right of retention until necessary and 1. Lose the material without right to
pay indemnity to BPS; useful expenses are paid; indemnity
2. OPTION TO: 2. Keep BPS without indemnity to OM and 2. Must pay damages to BPS
A. Sell land to BP except if the value of land is collect damages from him
considerably more; then FORCED LEASE;
B. Rent to sower
*Without subsidiary liable to OM for value of
materials.
Good Faith Bad Faith Bad Faith
1. Right to appropriate/ acquire improvements 1. Entitled to reimbursement of necessary 1. Collect value of material primarily
without indemnity; expenses in preservation of the land; from BPS and if BPS is insolvent 
2. Demolition or restoration; landowner is subsidiary liable

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3. A. Sell land to BP except if the value of land is (except when landowner acted in
considerably more; then FORCED LEASE; bad faith wherein he becomes
B. Rent to sower PRIMARILY LIABLE ;
*All options has a RIGHT to be indemnified for
damages.
*Pay necessary expenses to BPS in preservation of the
land

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