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CIVIL LAW

BAR REVIEWER
FACULTY ADVISER ATTY. BENJAMIN LERMA
ACADEMICS HEAD PIERRE MARTIN REYES
SUBJECT HEADS FRANCESCO BENZON
ANBOCHI
HANNAH STEPHANIE ANG
ATENEO CENTRAL BAR OPERATIONS 2012
ACADEMICS COMMITTEE

Academics Head: Pierre Martin Reyes;


Understudy: Clariesse Jami Mari Chan

REVIEW COMMITTEE
Head: Yla Gloria Marie Paras;
Understudy: Ken Koga;
Members: Catherine Dela Rosa, Eric Lavadia, Iris Lucido,
Pearl Charisse Baustista; Mina Reyes

CIVIL LAW COMMITTEE

Heads: Francesco Benzon Anbochi, Hannah Stephanie


Ang;
Understudy: Alessandra Vilches, Ken Patrick Habana;
Volunteers: Rizza Anne Sy, John Benedict Ty, Rose
Angelique Dizon, Geoanne Christi Battad, Paolo de
Guzman, Roberto Miguel Ramiro;
CIVIL LAW
Table of Contents
PRELIMINARY TITLE……………………………………
5
1. Effect and Effectivity of Law
2. Human Relations

PERSONS…………………………………………………… PRESCRIPTION……………………………………………
…8 ……78
============================== ==============================
===== =====
A. General Provisions
B. Natural Persons A. Definition
C. Juridical Persons B. No Prescription Applicable
D. Domicile C. Prescription or limitation of actions
E. Marriage D. Interruption
F. Legal Separation
G. Rights and Obligations Between Husband and OBLIGATIONS
Wife ………………………………………………… 82
H. Property Relations Between Husband and Wife ==============================
I. The Family =====
J.
Family Home A. Definition
K. Paternity and Filiation B. Elements of an Obligation
L. Adoption C. Different Kinds of Prestations
M. Support D. Classification of Obligations
N. Parental Authority E. Sources of obligations (Arts. 1156-1157)
O. Funerals F. Nature and Effect of Obligations
P. Surname G. Kinds of Civil Obligations
Q. Absence H. Joint and Solidary Obligation
R. Civil Register I. Extinguishment of Obligations

PROPERTY…………………………………………………… CONTRACTS
37 ………………………………………………… 109
==============================
==============================
=====
=====
A. Classification of Property (Arts. 414-418, CC)
A. Essential Requisites (Art. 1261)
B. Ownership (Arts. 427-439, CC)
B. Kinds of Contracts
C. Accessions
C. Formality (Arts. 1356, 1357, 1358)
D. Quieting Title
D. Defective Contracts
E. Co-ownership
E. Effect of contracts (Art. 1311)
F. Condominium Act (RA 4726)
G. Possession
SALES ……………………………………………… 123
H. Usufruct
==============================
I. Easements
=====
J. Modes Of Acquring Ownership
K. Occupation
A. Introduction
L. Intellectual Creation
B. Parties to a Contract of Sale
M. Donation
C. Subject Matter
N. Other Modes of Acquiring Ownership
D. Obligations of the Seller to Transfer Ownership
O. Nuisance
E. Price
F. Formation of Contract of Sale

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G.

Transfer of Ownership E. General vs. Special Agency


H. Risk of Loss F. Agency Couched in General Terms
I. Documents of Title G. Agency Requiring Special Power of Attorney
J. Remedies of an Unpaid Seller H. Agency by Operation of Law
K. Performance of Contract I. Rights and Obligations of Principal
L. Warranties J. Modes of Extinguishment
M. Breach of Contract
N. Extinguishment of the Sale CREDIT
O. The Subdivision and Condominium Buyers' TRANSACTIONS…………………………………………
Protective Decree 235
P. The Condominium Act ==============================
===
SUCCESSION A. Loan
………………………………………………… 155 B. DEPOSIT
============================== C. Guaranty and Suretyship
===== D. Pledge
E. Real Mortgage
A. General Provisions F. Antichresis
B. Testamentary Succession G. Chattel Mortgage
C. Legal or Intestate Succession H. Quasi-contracts
D. Provisions Common to Testate and Intestate I. Concurrence and Preference of Credits
Succession J. Insolvency Law
E. Partition and distribution of estate

LAND TITLES AND DEEDS


LEASE………………………………………………………… …………………………………… 283
199 ==============================
============================== =====
===
A. Lease of Things A. Torrens System
B. Lease of Work or Services B. Regalian Doctrine
C. Lease of Rural and Urban Lands C. Citizen Requirements
D. Contract for Piece of Work D. Non-Registrable Properties
E. Rights and Obligations of Lessor and Lessee E. Original Registration
F. Subsequent Registration
PARTNERSHIP……………………………………………… G. Dealings With Unregistered Land
205
==============================
=== TORTS AND DAMAGES……………………………………
A. Contract Of Partnership 323
B. Rights and Obligations of Partnership ==============================
C. Rights and Obligations of Partners Among =====
Themselves
D. Obligations of Partnership/Partnership to Third Book I--Torts
Persons A. Principles
E. Dissolution B. Classification of Torts
F. Limited Partnership C. The Tortfeasor
D. Act of Omission and Its Modalities
AGENCY……………………………………………………… E. Proximate Cause
… 221 F. Legal Injury
============================== G. Intentional Torts
=== H. Negligence
A. Definition of Agency I. Special Liability in Particular Activities
B. Powers J. Strict Liability
C. Express V. Implied Agency
D. Agency By Estoppel Book II--Damages

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A.

General Considerations
B. Actual and Compensatory Damages
C. Moral Damages
D. Nominal Damages
E. Temperate or Moderate Damages
F. Liquidated Damages
G. Exemplary or Corrective Damages
H. Damages in Case of Death
I. Graduation of Damages
J. Miscellaneous Rules

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CIVIL LAW
When Laws Take Effect (art.2)
================================ General Rule - 15 days after completion of
publication in OG or newspaper of general
TOPICS UNDER THE SYLLABUS circulation
A. PRELIMINARY TITLE
1. Effect and Effectivity of Law Exception - The law can provide for its own date
a. When laws become effective of effectivity
b. Mandatory effect of laws
c. Irretroactivity of laws
d. Waiver of rights b) Mandatory Effect of Laws
e. Repeal of laws
f. Judicial decisions  Publication is MANDATORY for all
g. Presumption and Applicability statutes, including PDs and Eos
 AOs and Regulations must also be
of Custom
published if their purpose is to enforce or
h. Computation of Time implement existing law
i. Governing laws  An immediate effectivity clause does not
j. Rules on Prohibitive laws preclude the requirement of publication
2. Human Relations  Publication must be in full (otherwise,
a. Application it is not deemed published at all) since its
b. Duty to act with justice, PURPOSE is to inform the public of its
observe honesty and good faith contents
c. Actions for breach of promise  Non-publication of the law would offend
due process (persons not aware of laws
to marry would be prejudiced)
d. Unjust enrichment at the  Effect of Publication: The people are
expense of others deemed to have conclusively been
e. Rights to personal dignity and notified of the law even if they have not
privacy read them.
f. Liability of Public Officers
========================= Compliance with the Law (art.3):
Ignorance of the law excuses no one from
================
compliance therewith (Ignorantia juris neminem
CIVIL LAW – branch of law that regulates
excusat)
relations of assistance, authority and obedience
among family members as well as members of a
NOTE: Applies only to mandatory and prohibitory
society for the protection of private interests
laws (Consunji v. CA, [G.R. 137873 April 20,
2001])
NEW CIVIL CODE: took effect on August 30,
1950
c) Irretroactivity of Laws (art. 4)
==============================
===================
General rule: laws are not retroactive
TOPICS UNDER THE SYLLABUS
A. PRELIMINARY TITLE Exceptions: (PIERCER)
1. Effect and Effectivity of Laws 1. Penal laws when favorable to the accused
========================= who is not a habitual delinquent or
================= recidivist
2. Interpretative statutes
1. EFFECT AND EFFECTIVITY OF LAWS 3. When the law itself expressly provides
- Exception to the exception:
a. Ex post facto law
a) When the Laws Become Effective
b. When retroactivity impairs the
obligations of contracts

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4. Remedial statutes Customs which are contrary to law, public order
5. Curative statutes or public policy shall not be countenanced. A
6. Emergency laws custom must be proved as a fact according to the
7. Laws creating new substantive rights rules of evidence.

Mandatory and Prohibitory laws (art. 5): h) Computation of Time


General Rule - Acts executed against the
provisions of mandatory or prohibitory laws shall Legal Periods (Art. 13, as amended by Sec.
be void. 31, EO 292)
Year = 12 months; Month = 30 days, unless
Exception - If the law expressly provides for the referring to a specific calendar month; Day = 24
validity of acts committed in violation of a hours; Night = sunset to sunrise
mandatory or prohibitory provision of a statute.
i) Governing Laws (Arts. 14-17)
d) Waiver of Rights (art.6)
LAW Matters/Perso Principle/
General Rule- Rights may be waived ns Bound Doctrine
Penal Laws All those who Principle of
Exceptions - When waiver is live or Territoriality:
1. Contrary to law, public order, public sojourn in follow laws of the
policy, morals, good customs (e.g. waiver of Philippine place where
future inheritance, political rights, future support) territory crime was
2. Prejudicial to a third person with a right committed
recognized by law Status Citizens of Principle of
Laws the Nationality:
e) Repeal of Laws (art. 7) (relating to Philippines, follow one’s own
family rights including national laws
1. Express repeal - repeal of repealing law will and duties, those living
not revive the old law (unless expressly status, legal abroad
provided) capacity)
2. Implied repeal - the provisions of the Property Real and Lex rei sitae:
Laws personal follow laws of the
subsequent law are incompatible with those
property place where
of the previous law
property is
Requisites:
situated
1. Both laws cover the same subject
Laws on Forms and Lex loci
matter
Forms and solemnities celebrationis:
2. The latter law is repugnant to the
Solemnitie of contracts, follow laws of the
earlier law
s wills, public country in which
instruments they are
f) Judicial Decisions
executed
Judgment of the Courts (Arts. 8-9)
j) Rules on Prohibitive Laws (art. 17)
 Decisions of the SC form part of the law
 All judges or courts have the duty to General Rule - Prohibitive laws concerning
render judgment even in the absence of a persons, their acts or property and laws which
law have for their object public order, public policy or
good customs are not rendered ineffective by
g) Presumption & Applicability of laws, judgments promulgated or conventions
Custom (Arts. agreed upon in foreign country.
10-12)
Exception: Art. 26 (2) of Family Code
Construction and interpretation of laws come only
after it has been demonstrated that application is 2. HUMAN RELATIONS
impossible or inadequate without them.

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a) Application d) Unjust Enrichment at the Expense of
Others
PRINCIPLE OF ABUSE OF RIGHTS (ART. 19) -
When one’s right is exercised for the purpose of ACCION IN REM VERSO (Art. 22) – action for
prejudicing or injuring another recovery of what has been paid without just
cause.
Requisites/ Elements:
1. There is a legal right or duty Requisites:
2. Which is exercised in bad faith 1. Defendant has been enriched
3. For the sole intent of prejudicing or injuring 2. Plaintiff suffered a loss
another 3. Unjust Enrichment of defendant is without
just or legal ground
Standards to observe in the exercise of 4. Plaintiff has no other action based on
one’s rights: contract, quasi-contract, crime, or quasi-delict
1. Act with justice
2. Give everyone his due  Distinguished from solutio indebiti: Mistake is
3. Observe honesty and good faith an essential element in solutio indebiti but not
in accion in rem verso.
b) Duty to Act with Justice, Observe
Honesty and Good Faith DUTY TO INDEMNIFY ONE FOR DAMAGE TO
HIS PROPERTY (Art. 23): when defendant was
ACTS CONTRA BONUS MORES (ART.21)- benefitted even if not due to fault or negligence
When persons wilfully cause loss or injury to
another DUTY OF COURTS TO PROTECT A PARTY IN A
CONTRACT (Art. 24): When such party is at a
Elements: disadvantage on account of his: (MIgIMenTO)
1. There is an act which is legal - Moral dependence
2. But which is contrary to morals, good - Ignorance
customs, public order, or public policy - Indigence
3. Done with intent to injure - Mental weakness
- Tender age
Note: - Other handicap
 Similarities: In Arts. 19-21, at the core
is bad faith or malice; and the THOUGHTLESS EXTRAVAGANCE (Art. 25)
aggrieved party must be indemnified. May be prevented if the ff requisites are present:
 Difference: Under Arts. 19 & 21, the 1. During an acute public want or emergency
act must be done intentionally. Art. 2. Person seeking to stop it is the gov’t or a
20, however, does not distinguish (the private charitable institution
act may be done either willfully or
negligently, as long as the act is be e) Rights to Personal Dignity and
contrary to law). Privacy

c) Actions for Breach of Promise to Protection of Human Dignity (Art. 26)


Marry Every person shall respect the dignity,
personality, privacy and peace of mind of others
General Rule: Breach of promise to marry is not
actionable. The following acts produce a cause of action for
Exception: When one party has already made damages, prevention and other relief:
real efforts to prepare and spend for the wedding. (PryMIVex)
Such act is unjustifiably contrary to good customs 1. Prying into the privacy of another’s residence
for which the defendant must be held answerable 2. Meddling with or disturbing the private life or
for damages in accordance with Art. 21 of the family relations of another
NCC. (Wassmer v. Velez 12 SCRA 649 (1964))

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3.
Intr
iguing to cause another to be alienated from
friends
4. Vexing or humiliating another on account of
his religious beliefs, lowly station in life, place
of birth, physical defect, or other personal
condition
f) Liability of Public Officers

Relief Against Public Officials (Art. 27)


When one suffers material or moral loss because
a public officer fails without cause to perform his
duty, the officer is not protected by his office and
is personally liable.

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I.
PERSONS 2. Insanity
3. State of being Deaf-mute
==============================
4. Imbecility
===================
5. Civil Interdiction
TOPICS UNDER THE SYLLABUS 6. Prodigality – state of squandering money or
A. General Provisions property with a morbid desire to prejudice the
1. Juridical Capacity v Capacity to heirs of a person (Martinez v. Martinez, 1 Phil.
Act 182)
2. Restrictions and Modifications on
Capacity to
Act Circumstances that Modify or Limit Capacity
B. Natural Persons to Act (art. 39)
1. When Personality Begins and Age Penalty Absence
Ends Insanity Prodigality Insolvency
2. Rules on Survivorship (Art.43, CC Imbecility Family Relations Trusteeship
v Rule 131 Sec Deaf-muteness Alienage
jj)
CIVIL PERSONALITY – the aptitude of being the
C. Juridical Persons subject, active or passive, of rights and
1. Who are Juridical Persons obligations
2. When Personality Begins and
Ends B. NATURAL PERSONS
3. Rights of Juridical Persons
D. Domicile NATURAL PERSONS V. JURIDICAL PERSONS
Natural Persons Juridical Persons
=========================
A human being, has Exists only in
================= physical existence contemplation of law
Product of Product of legal
A. GENERAL PROVISIONS procreation fiction

1. Juridical Capacity v. Capacity to Act 1. When Personality Begins and Ends


(Art. 37)
JURIDICAL CAPACITY CAPACITY TO ACT Civil Personality, Natural Persons (Arts. 40-
Fitness to be the Power to do act with 43)
subject of legal legal effects
relations General Rule - Determined by birth,
Passive Active extinguished by death
Inherent Merely acquired
Lost only through death Lost through death and Exception - The conceived child shall be
other causes considered born for all purposes favorable to it,
Can exist without Cannot exist without provided it be born later under the following
capacity to act juridical capacity conditions:
Cannot be limited or Can be restricted, 1. It is alive at the time it is completely
restricted modified, or limited delivered from the mother’s womb
2. BUT if it had an inter-uterine life of less
Full Civil Rights: union of both juridical capacity than 7 months, only if it lives for at
and capacity to act least 24 hours after its complete
2. Restrictions on Capacity to Act delivery from the maternal womb
(Art. 38)
(MInD - ICIP) 2. Rules on Survivorship

Do not exempt the incapacitated person from Doubts as to Order of Death: As between two
certain obligations or more persons called to succeed each other, if
1. Minortiy there is doubt as to which of them died first,
whoever alleges the death of prior to the other

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shall prove the same. In the absence of proof, it law creating them does not fix the
is presumed that they died at the same time and domicile)
there shall be no transmission of rights from one
to the other. A minor follows the domicile of his parents
 This rule applies only to cases involving  Domicile of origin can only be lost when a
succession change of domicile occurs.

C. JURIDICAL PERSONS Requirements for the acquisition of new


domicile:
1. Who are Juridical Persons 1. Bodily presence in a new locality
2. Intention to remain therein (animus
Civil Personality, Juridical Persons (Arts. 44- manendi)
47) 3. Intention to abandon the old domicile
1. The state and its political subdivisions (animus non revertendi)
2. Other corporations, institutions, and
entities for public interest or purpose,  The husband and the wife shall fix the family
created by law domicile. In case of disagreement, the court
3. Corporations, partnerships, and shall decide
associations for private interest or
purpose Kinds of Domicile
1. Domicile of origin – received by a person at
birth
2. When Personality Begins and Ends 2. Domicile of choice – the place freely chosen by
a person sui juris
 Creation: (1) and (2) are created by the laws 3. Constructive domicile – assigned to a child by
creating or recognizing them, law at the time of his birth
private corporations are governed
by the Corp. Code (B.P. 68) and
partnership and associations are ================================
governed by the provisions of the TOPICS UNDER THE SYLLABUS
New Civil Code on partnerships
E. Marriage (Arts. 1-54, Family
 Extinguished: by termination of existence
Code)
3. Rights of Juridical Persons 1. Concept
2. Essential and Formal
1. Acquire and possess property of all kinds Requirements
2. Incur obligations 3. Non-Essential Requirements
3. Bring civil or criminal actions 4. Marriages Celebrated Outside
the Philippines
CITIZENSHIP
a. Validity and Exceptions
 In the Philippine jurisdiction, what is followed
is the concept of jus sanguinis (citizenship by b. Foreign Divorce
blood) as opposed to jus soli (citizenship by 5. Void Marriages
place of birth) a. Void ab initio under Art. 35
b. Void under Art. 36
D. DOMICILE c. Void for Being Incestuous
under Art. 37
DOMICILE ( Arts. 50-51) d. Void for Reason of Public
- For natural persons, it is the Policy under Art. 38
place of habitual residence e. Imprescriptibility of action or
- For juridical persons, it is where
their legal representation is
defense for declaration of
established or where they exercise nullity of marriage. (Art. 39)
their principal functions (when the

CIVIL LAW REVIEWER Page 12 of 383


f. Subsequent Marriage Without 2. or the residence of either party is
Judicial Declaration of Nullity of located that there is no means of
Previous Void Marriage (Art. 40) transportation to enable such
party to appear personally before
6. Annullable Marriages the civil registrar,
7. Procedure and Effects of 3. cohabitation for 5 years,
Termination of Marriage then the marriage may be
============================== solemnized without the necessity of
================== a marriage license. (Article 27 and
E. MARRIAGE 28)
1. CONCEPT
2. Defect in any of the essential requisites –
Marriage is voidable
1. A special contract 3. Irregularity in any of the formal
2. of permanent union requisites – does not affect the validity of the
3. Between a man and a woman marriage but will make the party responsible
4. Entered into in accordance with law civilly, criminally, or administratively liable
5. For the establishment of conjugal and
family life Authorized Solemnizing Officers: (JPCCCM)
1. Incumbent member of the judiciary within
the court’s jurisdiction
2. ESENTIAL AND FORMAL REQUIREMENTS 2. Duly authorized priest, rabbi, imam or the
minister of any church or religious sect
1. Legal capacity of contracting parties 3. Ship captain or airplane chief only in
a. Must be between a man and woman articulo mortis between passengers or
b. Must be at least 18 years old crew members while the ship is at sea or
2. Consent freely given, IN the PRESENCE of the plane is in flight and also during
the solemnizing officer stopover at ports of call
4. Military commander of a unit to which a
Formal Requisites of Marriage: (ALC) chaplain is assigned only in articulo
1. Authority of solemnizing officer mortis between persons within the zone of
2. Valid marriage license (except in cases where military operations whether members of
a marriage license is not required) the armed forces or civilians and only in
 valid only for 120 days from issue in any part the absence of the chaplain
of the Philippines 5. Consul-general, consul or vice-consul only
3. Marriage ceremony where the contracting when contracting parties are both Filipinos
parties appear before the solemnizing officer, abroad
with their personal declaration that they take 6. Mayor (Local Government Code of 1991)
each other as husband and wife in the The vice mayor, in case the mayor is
presence of not less than two witnesses of temporarily incapacitated to discharge his
legal age duties

Effects: Marriages Exempt from License


1. Absence of essential or formal requisites Requirements:
– void ab initio 1. Marriage in articulo mortis (one of the
Exceptions: parties is at the point of death)
a. If solemnized by unauthorized person, the 2. If the residence of either party is so located
marriage will still be valid if either or both that there is no means of transportation
contracting parties believed in good faith that to enable such party to appear personally
the solemnizing officer had legal authority before the civil registrar
(Article 35(2)) 3. Marriage solemnized outside the
Those exempt from the license requirement. Philippines where no marriage license is
If either of the contracting parties are required by the country where it was
1. at a point of death (articulo solemnized
mortis),

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4.

Marriage among Muslims or among 3.


members of ethnic cultural communities Marriage at a house or place designated by
in accordance with their customs the parties in a sworn statement upon
5. Marriage between persons who have lived their written request to the solemnizing
together as husband and wife for at least officer
five years and without any legal impediment
to marry each other
Requisites:
a. Man and woman must have been
living together as husband and wife OTHER REQUIREMENTS:
for at least five years before Either or Both Requires
marriage Parties
b. The parties must have no legal 18 years old and Parental consent
impediment to marry each other above but below 21 Marriage counseling
c. The fact of absence of legal 21 years old and Parental advice
impediment between the parties above but below 25 Marriage counseling
must be present at the time of
marriage EFFECTS
d. The parties must execute an Lack of parental Marriage is VOIDABLE
affidavit stating that they have lived consent
together for at least five years (and Lack of parental NO EFFECT on th
are without legal impediment to marry advice or marriage validity of marriage
each other) counselling However, this will
e. The solemnizing officer must suspend the issuance
execute a sworn statement that he of the marriage
had ascertained the qualifications of license for 3 months
the parties and that he had found no from the completion of
legal impediment to their marriage publication
If they get married
 No legal impediment during the entire during the 3-month
period: period without a
This 5-year period should be a period of license, the
cohabitation characterized by exclusivity – marriage shall be
meaning no third party was involved at any VOID
time – that is, unbroken. (Niñal vs. Bayadog, If they are able to
328 SCRA 122 (2000))
obtain a license
during the 3-month
AUTHORIZED VENUES FOR MARRIAGE:
period, the
marriage will still
General Rule: Must be solemnized publicly, and
be valid but civil
not elsewhere, in the:
and criminal
1. Chambers of the
liability may
judge or in open court
attach.
2. Church, chapel or
Office of consul-general, consul or vice-
consul
3. NON-ESSENTIAL REQUIREMENTS

Exceptions: Marriage Certificate


1. While a marriage certificate is considered the
Marriage at the point of death (articulo primary evidence of a marital union, it is not
mortis) regarded as the sole and exclusive evidence of
2. marriage. Jurisprudence teaches that the fact of
Marriage in remote places marriage may be proven by relevant evidence
other than the marriage certificate. Hence, even
a person’s birth certificate may be recognized as

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competent evidence of the marriage between his were Filipino citizens but, later on, one of
parents. (Anonuevo vs. Int. Estate of them becomes naturalized as a foreign citizen
Jalandoni, [GR 178221, December 1, 2010]) and obtains a divorce decree. The Filipino
spouse should be allowed to remarry as if the
4. MARRIAGES SOLEMNIZED ABROAD other party was a foreigner at the time of the
solemnization of the marriage. Republic v.
a) Validity and Exceptions Orbecido III, 472 SCRA 114 (2005)
 For the second paragraph of Article 26 to
General Rule: Marriages solemnized outside the apply, a spouse who obtained the divorce
Philippines in accordance with the laws of the must not be a Filipino at the time of the
foreign country shall be valid here (lex loci divorce. Otherwise, the divorce is not
celebrationis). – Basis: Principle of comity recognized in the Philippines. Republic v.
 However, if solemnized inside the Philippine Iyoy, G.R. No. 15277, September 21,
Consulate abroad, Philippinelaws must be 2005
observed  Additionally, an action based on
the second paragraph of Article 26 of the
Family Code is not limited to the recognition
Exceptions: of the foreign divorce decree. If the court
1. Where either or both parties are below finds that the decree capacitated the alien
18 years old spouse to remarry, the courts can declare
2. Bigamous or polygamous marriage that the Filipino spouse is likewise capacitated
(except Art. 41 on presumptive death of to contract another marriage. No court in this
spouse) jurisdiction, however, can make a similar
3. Mistake in identity declaration for the alien spouse (other than
4. Marriages void under Art. 53 – that already established by the decree),
contracted following the annulment or whose status and legal capacity are generally
declaration of nullity of a previous governed by his national law. Corpuz vs.
marriage but before partition Sto. Tomas, G.R. No. 186571, August
5. Psychological incapacity 11, 2010
6. Incestuous marriages
7. Marriage void for reasons of public 5. VOID MARRIAGES
policy
a) Void ab initio under Art. 35
b) Foreign Divorce
1. Contracted by any party below 18 years
Divorce by Foreigner-Spouse: old
 If a Filipino is married to a foreigner and the
latter subsequently obtains a valid divorce 2. Solemnized by unauthorized solemnizing
abroad capacitating him/her to remarry, the officer (Except if either or both parties
Filipino spouse shall likewise have the believed in good faith that the officer had
capacity to remarry under the Philippine law. authority)
(Art. 26, par. 2)
 Requisites: 3. Solemnized without marriage license
a.) There is a valid marriage that had been (Except when license not required)
celebrated between Filipino citizen and a
foreigner  A petition to declare the marriage void
b.) A valid divorce is obtained abroad by the due to absence of marriage license, filed
alien spouse capacitating him or her to after the court denied a petition to
remarry declare the marriage void due to
psychological incapacity, is barred by
The traditional rule applies when parties at the RES JUDICATA. There is only one cause
time of celebration are a Filipino and an alien of action which is the nullity of marriage.
BUT Petitioner is estopped from asserting that
 This includes cases involving parties who, at the first marriage had no marriage license
the time of the celebration of the marriage, because he impliedly admitted the same
when he did not question the absence of a

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marriage license in the first case. Mallion  Psychological Incapacity must be judged
v. Alcantara, G.R. No. 141528, on a case to case basis. It should refer to
October 31, 2006 no less than a mental (not physical)
incapacity. It must be characterized by a.
4. Bigamous or polygamous marriages gravity b. juridical antecedence c.
incurability. Carating-Siaynco v.
Exception: Art. 41 – Marriage contracted Siaynco, 441 SCRA 422 (2004)
by a person whose spouse has been
absent for 4 years (ordinary absence) or 2  Mere showing of irreconcilable differences
years (extraordinary absence), where and conflicting personalities does NOT
such person has a well founded belief that constitute psychological incapacity.
his/her absent spouse is already dead, Carating-Siaynco v. Siaynco, 441
and after the absent spouse is judicially SCRA 422 (2004)
declared presumptively dead, and at the
time of the marriage ceremony is in good  Mere sexual infidelity or perversion and
faith together with the subsequent spouse abandonment do not by themselves
constitute psychological incapacity within
5. Mistake in identity the contemplation of the Family Code.
 The contemplated mistake here refers Neither could emotional immaturity and
to the actual physical identity of the irresponsibility be equated with
other party, and not merely mistake in psychological incapacity. Dedel v. CA
the name, character, age, or other 421 SCRA 461 (2004)
attributes of the person.
 It must be shown that these acts are
6. Subsequent marriage void under Art. 53 manifestations of a disordered personality
- A person whose marriage has been which make respondent completely
annulled may remarry as long as after unable to discharge the essential
the marriage is annulled, the properties obligations of a marital state. Root cause
of the spouses must be partitioned and must be traceable prior to the marriage
distributed and the presumptive ceremony. Dedel v. CA 421 SCRA 461
legitimes of the children be distributed. (2004)
Furthermore, the judgment of
annulment or absolute nullity, the  One of the essential marital obligations is
partition and distribution, and the
"To procreate children based on the
delivery of the presumptive legitimes
universal principle that procreation of
must be recorded in the appropriate
children through sexual cooperation is the
civil registry and registries of property.
basic end of marriage." Constant non-
Failure to comply with these requisites
fulfillment of this obligation will finally
will make the subsequent marriage
destroy the integrity or wholeness of the
void ab initio. Further, failure to record
marriage. The senseless and protracted
in the proper registries will mean that
refusal of one of the parties to fulfill this
such will not affect third persons (Arts.
marital obligation is equivalent to
52-53)
psychological incapacity. Chi Ming Tsoi
v. CA, G.R. No. 119190, January 16,
NOTE: The enumeration of void marriages under
1997
Art. 35 is not exclusive.
 Psychological incapacity is not equated
b) Void under Art. 36
with insanity or total mental inability to
Where any of the parties, who at the time of the function in all aspects of human life…it is
celebration of the marriage, was psychologically a ground restricted to psychological
incapacitated to comply with the essential marital incapacity “to comply with marital
obligations, even if incapacity becomes manifest obligations”. Perez-Ferraris v. Ferraris
only after solemnization. GR No. 162368 (2006)

CIVIL LAW REVIEWER Page 16 of 383


 A finding of psychological incapacity on 7. Interpretations given by the National
the part of one spouse shows non- Appellate Matrimonial Tribunal of the
cognizance of one’s essential marital Catholic Church in the Philippines, while not
obligation, and therefore negates bad controlling or decisive, should be given
faith. As a consequence moral and great respect by our courts
exemplary damages cannot be awarded 8. The trial court must order the prosecuting
against him/her because bad faith is an attorney or fiscal and the Solicitor General
essential element in awarding moral and to appear as counsel for the state
exemplary damages. Award of moral
damages should be predicated, not on the  The foregoing guidelines do not require that a
mere act of entering into the marriage, physician examine the person to be declared
but on specific evidence that is was done psychologically incapacitated. What is
deliberately and with malice by a party important is that the totality of evidence can
who had known of his or her disability and adequately establish the party’s psychological
yet willfully concealed the same. condition. Republic v. CA & Molina, 268
Buenaventura v. CA, GR No. 127358, SCRA 198 (1997)
March 31, 2005
 In determining if one of the contracting
The Court emphasizes that the burden falls parties is psychologically incapable, the
upon petitioner, not just to prove that private courts should interpret the provision on a
respondent suffers from a psychological case-to-case basis. Courts should be guided
disorder, but also that such psychological by experience, the findings of experts and
disorder renders her "truly incognitive of the researchers in psychological disciplines, and
basic marital covenants that concomitantly by decisions of church tribunals. Te v. Te,
must be assumed and discharged by the parties G.R. No. 161793, February 13, 2009
to the marriage." Psychological incapacity must
be more than just a "difficulty," a "refusal," or a c) Void for Being Incestuous under Art.
"neglect" in the performance of some marital 37
obligations. An unsatisfactory marriage is not a
null and void marriage. Baccay vs. Baccay, Whether relationship is legitimate or illegitimate:
GR No. 117318, December 1, 2010 1. Between ascendants and descendants of
any degree
JURISPRUDENTIAL GUIDELINES (BRE-IGO-IC) 2. Between brothers and sisters, whether full
(Republic v. CA & Molina 268 SCRA 198 (1997)) or half blood

1. Burden of proof to show the nullity of d) Void for Reason of Public Policy
marriage is upon the plaintiff under Art. 38
2. The root cause of the psychological
incapacity must be: 1. Between collateral blood relatives up to
a. Medically or clinically identified the 4th civil degree
b. Alleged in the complaint - There is no prohibition regarding
c. Sufficiently proven by experts marriages between collateral
d. Clearly explained in the decision blood relatives by half-blood
3. The incapacity must be proven to be 2. Between step-parents and step-children
existing at the time of the celebration of the 3. Between parents-in-law and children-in-
marriage law
4. Such incapacity must be shown to be 4. Between adopting parent and adopted
medically or clinically permanent or child
incurable 5. Between surviving spouse of the adopter
5. Such illness must be grave enough to bring and the adopted
about the disability of the party to assume 6. Between surviving spouse of the adopted
the essential obligations of marriage and the adopter
6. Essential marital obligations must be those 7. Between adopted and legitimate child of
embraced by Art. 68-71, as well as Art. 220, adopter
221, and 225 of the Family Code. 8. Between adopted children of same
adopter

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9. Between parties where one, with the -In a case for concubinage, the accused
intention to marry the other, killed that need not present a final judgment declaring
other person’s spouse or his/her own his marriage void for he can adduce
spouse evidence in the criminal case of nullity of
No prior criminal conviction by the his marriage other than proof of final
court for the killing is required by the judgment declaring his marriage void.
law since mere preponderance of Hence, the pendency of the civil action for
evidence is required to prove the nullity of marriage does not pose a
killing. prejudicial question in a criminal case for
concubinage.
Article 38 is an exclusive list.
However, a judicial declaration of nullity is
Under the new Family Code, the following can not needed where no marriage ceremony
now marry each other: at all was performed by a duly authorized
a. Brother-in-law solemnizing officer as where the parties
and sister-in-law merely signed a marriage contract on
b. Stepbrother their own. The mere signing of a marriage
and stepsister contract bears no semblance to a valid
c. Guardian and marriage and thus needs no judicial
ward declaration of nullity. Lucio Morigo v.
d. Adopted and People, G.R. No. 145226, February 6,
illegitimate child of the adopter 2004
e. Parties who
have been convicted of adultery or Second marriage is still bigamous even if the
concubinage first marriage is judicially declared void
after contracting the second marriage,
NOTE: R.A. 6995 (Mail Order Bride Act) declares only if the first marriage ostensibly
as unlawful the practice of matching Filipino transpired as there was a marriage
women for marriage to foreign nationals on a ceremony. However, if the first marriage
mail-order basis and other similar practices was void due to the fact that no marriage
including the advertisement, publication, printing ceremony was solemnized at all, then the
or distribution of brochures, fliers, and other second marriage is not bigamous. Morigo
propaganda materials in furtherance thereof. v. People, 422 SCRA 376 (2004)

e) Imprescriptibility of action or NOTE: Even if a marriage is void, it must be


defense for declaration of nullity of declared void first by final judgment before
marriage. (Art. 39) the parties to such void marriage can
remarry. The parties cannot decide for
A marriage that is invalid from the beginning is themselves the invalidity of their marriage.
non-existent, and in effect, cannot be dissolved.
The judicial decree to declare its nullity is a mere EXCEPTION: When the purpose is other than
confirmation of the voidness of the marriage, remarriage, a collateral attack of the marriage is
hence this petition is imprescriptible. allowed.

f) Subsequent Marriage Without PRESUMPTION OF DEATH FOR REMARRIAGE


Judicial Declaration of Nullity of (Art. 41)
Previous Void Marriage (Art. 40) General Rule: Marriage contracted by any
person during the subsistence of a previous
-For the purposes of remarriage, the only marriage is VOID
legally acceptable basis for declaring a
previous marriage an absolute nullity is a Exception: If before the celebration of the
final judgment declaring such previous subsequent marriage:
marriage void, whereas, for purposes other a.The previous spouse had been absent for
than remarriage, other evidence is 4 consecutive years (ordinary absence)
acceptable or 2 years (extraordinary absence) and

CIVIL LAW REVIEWER Page 18 of 383


b.The remaining spouse has a well-founded b. If none, in favor of the children of
belief that the absent spouse is already the guilty spouse by previous
dead marriage
c.Judicial declaration of presumptive death c. In default of children, in favor of the
- In this case, the subsequent marriage innocent spouse
is valid but it shall be automatically 3. Donations by reason of the marriage
terminated by the recording of the remain valid except if the donee
affidavit of reappearance of the contracted the marriage in bad faith
absent spouse. 4. The innocent spouse may revoke the
- Without filing of the affidavit of designation of the spouse in bad faith as
reappearance, there will exist two the beneficiary in any insurance policy,
valid marriages (valid bigamous even if designation is stipulated as
marriage) irrevocable, and
5. The spouse who contracted the
Exception to the Exception: If both spouses of subsequent marriage in bad faith shall be
the subsequent marriage acted in bad faith, such disqualified to inherit from the innocent
marriage is void ab initio (Art. 44) spouse by testate or intestate succession

Effect of Reappearance NOTE: The above effects apply to voidable


 The subsequent bigamous marriage under bigamous marriages. Except for (1), the
Art. 41 remains valid despite reappearance of above effects also apply to marriages
the absentee spouse which are annulled or declared void ab
initio under Art. 40.
 UNLESS, the reappearance made in a sworn
statement is recorded in the civil registry in 6. ANNULLABLE MARRIAGES
the place where the parties to the subsequent
marriage resides. In such case, the Grounds for Annulment (art. 45): (PUFFIS)
subsequent marriage is automatically 1. Lack of parental consent
terminated. 2. Either party is of unsound mind
3. Fraudulent means of obtaining consent of
 HOWEVER, if there was a previous judgment either party
annulling or declaring the first marriage a
nullity, the subsequent bigamous marriage  Circumstances constituting fraud:
remains valid. (Art. 46)
a. Non-disclosure of conviction by
NOTE: Summary proceedings under the Family final judgment of crime involving
Code are final and executory pursuant to Article moral turpitude
247. Hence, summary proceeding for the b. Concealment of pregnancy by
declaration of presumptive death of an absent another man
spouse under Article 41 of the Family Code is non- c. Concealment of sexually
appealable. Republic v. Tango, G.R. No. transmissible disease, regardless
161062, July 31, 2009 of nature, existing at the time of
marriage
Effects of Termination of Subsequent d. Concealment of drug addiction,
Marriage: (LDDRI) habitual alcoholism,
1. Children of the subsequent marriage homosexuality and lesbianism
conceived prior to its termination shall be 4. Force, intimidation or undue influence
considered legitimate 5. Physical incapability of either party to
2. The absolute community or conjugal consummate the marriage with the other,
partnership shall be dissolved and and such incapacity continues and
liquidated appears to be incurable
Requisites of Annulment due to
 If either spouse acted in bad faith, Impotence:
his/her share in the net profits shall be a. Impotence exists at the time of the
forfeited: celebration of marriage
a. In favor of the common children b. Permanent

CIVIL LAW REVIEWER Page 19 of 383


c. Incurable The STD must be The STD does not have
d. Unknown to the other spouse serious and incurable to be serious and
e. The other spouse must not also be appears incurable
impotent
 Doctrine of Triennial Cohabitation:
Presumption that the husband is
impotent should the wife still remain a
virgin after 3 years of living together
with her husband.
6. Affliction of Sexually Transmissible
Disease found to be serious and which
appears incurable
Elements:
a. Existing at the time of marriage
b. Sexually transmissible disease
c. Serious
d. Appears incurable

ARTICLE 45 ARTICLE 46
The STD is a ground The STD is a type of
for annulment fraud which in turn is a
ground for annulment
The STD does not The STD must be
have to be concealed concealed

CIVIL LAW REVIEWER Page 20 of 383


EFFECTS OF TERMINATION OF MARRIAGE
GROUNDS FOR ANNULMENT WHO CAN FILE PRESCRIPTIVE PERIOD RATIFICATION
Lack of parental consent (PC) a. Underage party a. Within 5 years after Free cohabitation after reaching 21
(18-21) turning 21
b. Parent or guardian b. Before child reaches 21

Insanity of one party Sane spouse 2 views: Free cohabitation after insane spouse
(INSANITY) Sempio-Diy: regains sanity
Before death of other party

Dean Del Castillo:


Within 5 years from the time
the right or action accrues

Guardian of insane Anytime before the death


spouse of either party
Insane spouse During the lucid interval or
after regaining sanity also
before death of other party
Fraud Injured Party Within 5 years after Free cohabitation even with full
discovery of Fraud knowledge of facts constituting the
fraud
Vitiated consent Injured Party Within 5 years from time Free cohabitation after the cause (force,
force, intimidations or undue intimidation, undue influence)
influence disappeared or disappeared or ceased
ceased *intimidation can be on the person or the
property of the injured party and his/her
immediate family
Incapability to Consummate/ Injured Party Within 5 years after the No ratification since defect is permanent.
Sexually transmissible disease marriage ceremony
(CONSUMMATE/STD)

CIVIL LAW REVIEWER Page 21 of 383


EFFECTS OF VOIDABLE BIGAMOUS MARRIAGE, DECLARATION OF NULLITY, AND ANNULMENT
BASIS VOIDABLE BIGAMOUS MARRIAGE (ART. 41) DECLARATION OF ANNULMENT
NULLITY
Status of Children of subsequent marriage conceived before its termination Illegitimate except Children conceived or born before
children – legitimate Art. 36 and Art. 53 annulment decree –
legitimate
Property ACP/CPG shall be liquidated. The share in the net profits of Same Same
Relations community property of the spouse who contracted the marriage
in bad faith, shall be forfeited in favor of common children or if
there are none, children of the guilty spouse by previous
marriage or in default, the innocent spouse (common children
-> children of guilty spouse by previous marriage -> innocent
spouse)
Donations Shall remain VALID except Same Same
Propter If donee contracted the marriage in bad faith, donations
Nuptias propter nuptias made to the donee are revoked by
operation of law.
If both spouses acted in bad faith, donations propter
nuptias made by one in favor of the other are revoked by
operation of law.
Insurance If one spouse acted in bad faith, innocent spouse may revoke Same Same
his designation as beneficiary in the insurance policy even if
such designation be stipulated as irrevocable
Successio If one spouse contracted the marriage in bad faith, he shall be Same Same
n disqualified to inherit from the innocent spouse both testate and
intestate

CIVIL LAW REVIEWER Page 22 of 383


DISTINCTION BETWEEN VOID AND VOIDABLE MARRIAGES
BASIS VOID VOIDABLE
As to nature Inexistent from the time of performance Valid until annulled
As to susceptibility to Cannot be ratified Can be ratified either by free cohabitation or prescription
ratification
As to effect on property No community property, only co-ownership (Art Absolute community exists unless another system is agreed
147/148) upon in marriage settlement (Default: ACP)
As to effect on children Children are illegitimate Children are legitimate if conceived before decree of
Exceptions: annulment
a. In case of psychological incapacity (Art 36)
b. Children born of subsequent marriage (Art 53)
As to how marriage may a. May be attacked directly or collaterally but for a. Cannot be attacked collaterally, only directly,
be impugned purpose of remarriage, there must be judicial i.e. there must be a decree of annulment
declaration of nullity. b. Can no longer be impugned after death of one
b. Can still be impugned even after death of of the parties
parties c. Action prescribes
c. Action for nullity does not prescribe

CIVIL LAW REVIEWER Page 23 of 383


7. PROCEDURE AND EFFECTS OF legal charge c. During lucid
TERMINATION OF MARRAIGE of insane interval or
after
A.M. No. 02-11-10-SC c. Insane regaining
PROPOSED RULE ON DECLARATION OF spouse sanity
ABSOLUTE NULLITY OF VOID MARRIAGES 3. Fraud Injured Party Within 5 years
AND ANNULMENT OF VOIDABLE from
MARRIAGES discovery of
fraud
SCOPE: 4. Vitiated Injured Party Within 5 years
 Petitions for declaration of absolute nullity Consent from time of
of void marriages and annulment of force,
voidable marriages under the Family Code intimidation or
 The Rules of Court shall apply suppletorily undue
influence
PETITION FOR DECLARATION OF ABSOLUTE disappeared
NULLITY: or ceased
5. Injured Party Within 5 years
Who may file: solely the husband or wife Incapability to after the
Consummate/ marriage
What to allege: If based on psychological Sexually ceremony
incapacity, complete facts showing either one is Transmitted
incapacitated from complying with marital Disease
obligations at the time of the celebration of the
marriage including physical manifestations, if A. Venue: Family Court of the province or city
any where the petitioner or the respondent has
been residing for at least 6 months prior to the
 Actions or defenses shall NOT prescribe date of filing (or non-resident respondent:
where he may be found in the Philippines) AT
PETITION FOR ANNULMENT OF VOIDABLE THE ELECTION OF THE PETITIONER.
MARRIAGES
Who may file: B. Petition shall allege:
GROUND PARTY TO PRESCRIPTIV 1. Complete facts constituting the cause of
FILE THE E PERIOD action
SUIT 2. Names and ages of the common children of
1. No Parental a. Parent or a. Anytime the parties and specify the regime governing
Consent Guardian before charge their property relations, and the properties
having Legal reaches 21 involved
Charge of “no- yrs. old 3. Verified and accompanied by a certification
consent” against forum shopping, which must be
party signed personally by the petitioner

b.“No- b. Within 5  Petition may not be signed solely by


Consent” years after counsel or through an attorney-in-fact
Party reaching 21  If petitioner is in a foreign country, the
2. Insanity a. Sane a. Anytime verification/certification shall be
spouse before death authenticated by the duly authorized
without of either party officer of the Philippine embassy or
knowledge of legation, consul general, consul, vice-
insanity consul, or consular agent in said country
b. Anytime
b. Relative, before death 4. Filed in 6 copies, a copy to be served to the
guardian or of either party OSG and the Office of the City or Provincial
person having Prosecutor, w/in 5 days from the date of its

CIVIL LAW REVIEWER Page 24 of 383


filing and submit to the court proof of such F. Investigation Report of the Public
service w/in the same period Prosecutor
 To be made w/in 1 month after the
 Failure to comply with requirements receipt of the court order
may be a ground for immediate  Shall state whether the parties are in
dismissal of the petition. collusion and basis for such finding,
serve copies to parties & counsels
C. Service of Summons (a) there is collusion – parties shall file
 Governed by the Rule 14 of the Rules of their respective comments w/in 10
Court and the following: days from receipt of a copy
1. Respondent cannot be located at his (b) no collusion – set the case for pre-
given address or his whereabouts are trial
unknown and cannot be ascertained by  Public prosecutor shall represent the
diligent inquiry: State
(a) Service of summons by publication once  Investigation is a condition sine qua non
a week for 2 consecutive weeks in a for further proceedings in cases where
newspaper of general circulation in the the respondent does not answer. This is
Philippines and in such places as the true even if during the hearing the fiscal
court may order participated and cross-examined the
(b) Served at respondent’s last known witnesses. Corpus vs. Ochoterena,
address by registered mail or any other 435 SCRA 446 (2004)
means the court may deem sufficient
G. Court may require a social worker to conduct
2. Summons to be published shall be a case study and submit report at least 3 days
contained in a court order with the before the pre-trial
following data:
(a) title of the case H. Pre-trial is MANDATORY.
(b) docket number  Notice
(c) nature of the petition 1. Notice of pre-trial shall be served to
(d) principal grounds of the petition and the the parties, their counsels and the
reliefs prayed for public prosecutor, containing: date
(e) a directive for the respondent to answer of pre-trial conference and order
w/in 30 days from the last issue of the directing the parties to file pre-trial
publication brief, ensuring its receipt by the
adverse party at least 3 days before
D. Motion to Dismiss: not allowed, except the date of pre-trial
for lack of jurisdiction over the subject matter 2. Notice of pre-trial shall still be sent
or over the parties (however, any ground that to respondent even if he did not file
might warrant a dismissal may be raised as an an answer
affirmative defense in an answer)
 Personal Appearance
1. Parties should appear personally at
E. Answer
the pre-trial
 Verified by the respondent himself & filed 2. Failure of petitioner to appear at the
w/in 15 days from service of summons or pre-trial personally w/o the valid
w/in 30 days from the last issue of cause, case dismissed
publication in case of service of 3. Failure to file the pre-trial brief or to
summons by publication comply with its required contents,
 Failure to answer shall NOT make him in case dismissed
default 4. If respondent filed his answer but
 Court will order the public prosecutor to fails to appear at the pre-trial, the
investigate if there is collusion if no court shall proceed but public
answer is filed or when answer does not prosecutor required to investigate
tender an issue reason for non-appearance (if due to
collusion)

CIVIL LAW REVIEWER Page 25 of 383


Pre-trial conference F. LEGAL SEPARATION


Court may refer issues to mediator, 1. Grounds
but should this fail or is not availed of,
2. Procedure
proceed with pre-trial conference
 Pre-trial order
3. Defenses
1. Parties are not allowed to raise 4. Liquidation
issues or present witnesses and 5. Effects of Legal Separation
evidence other than those stated in Pendente Lite
the pre-trial order 6. Reconciliation Effects
2. Parties have 5 days from receipt of ========================
pre-trial order to make corrections or ==================
modifications
3. Public prosecutor shall appear for
1. GROUNDS
the State to prevent collusion
(PRC-FAL-BILA)
1. Repeated physical violence or grossly
J. Prohibited Compromise
abusive conduct directed against petitioner,
(a) Civil status of persons
a common child or a child of the petitioner
(b) Validity of marriage or legal separation
2. Physical violence or moral pressure to
(c) Any ground for legal separation
compel the petitioner to change religious or
(d) Future support
political affiliation
(e) Jurisdiction of courts
3. Attempt of respondent to corrupt or induce
(f) Future legitimes
the petitioner, a common child, or a child of
the petitioner, to engage in prostitution, or
K. Decision
connivance in such corruption or
 Copies will be served on the parties, inducement
including the SolGen and public 4. Final judgment sentencing respondent to
prosecutor imprisonment of more than 6 years (even if
 Final after expiration of 15 days from pardoned)
notice to the parties 5. Drug addiction or habitual alcoholism
 Should be registered in the Civil Registry 6. Lesbianism or homosexuality
where the marriage was celebrated and in 7. Subsequent bigamous marriage
the Civil Registry of the place where the 8. Sexual infidelity or perversion
Family Court is located 9. Attempt by respondent against the life of
the petitioner
L. Appeal 10. Abandonment for more than 1 year without
 Not allowed if no motion for justifiable cause
reconsideration or new trial is made w/in
15 days from notice of judgment Grounds to Deny Legal
Separation/Defenses to Legal Separation:
M. Death (C4-D-GRP)
 Party dies before entry of judgment:
case closed and terminated w/o 1. Condonation
prejudice to the settlement of the estate  failure of the husband to look for his
in proper proceedings in the regular adulterous wife is not condonation to
courts wife’s adultery
 Party dies after the entry of judgment: 2. Consent
binding upon the parties and their successors- 3. Connivance
in-interest in the settlement of the estate in the 4. Collusion
regular courts. 5. Mutual guilt
N. Date of Effectivity: March 15, 2003 6. Prescription – action for legal separation
must be filed within five years from the time
============================ of the occurrence of the cause of action
====================
TOPICS UNDER THE SYLLABUS

CIVIL LAW REVIEWER Page 26 of 383


7. 
P

Death of either party during the pendency of rocedure is almost the same as in the Rule
the case Lapuz-Sy v. Eufemio, 43 SCRA on Declaration of Absolute Nullity &
177 (1972) Annulment (see above)
8. Reconciliation of the spouses during the  Creditors are furnished copies of the
pendency of the case petition
 Pre-trial set not earlier than 6 months from
Effects of Separation: filing of the petition for possibility of
1. Spouses are entitled to live separately reconciliation (COOLING OFF PERIOD)
2. Marriage bond is not severed
3. Dissolution of property regime Exception: There is no cooling-off period if the
4. Forfeiture of the share of the guilty spouse ground alleged are those under R.A. 9262
in the net profits of the ACP/CPG (Violence Against Women & Children). The
5. Custody of minor children to innocent court shall proceed in the main case and other
spouse (subject to Art. 213: parental incidents of the case as soon as possible. R.A.
authority shall be exercised by parent 9262, Sec. 19.
designated by the court)
 The imposed custodial regime under the  The abandonment contemplated is one
second paragraph of Article 213 is limited in without justifiable cause for more than
duration, lasting only until the child’s one year. As it was established that
seventh year. From the eighth year until the Lucita left William due to his abusive
child’s emancipation, the law gives the conduct, such does not constitute
separated parents freedom, subject to the abandonment contemplated by the said
usual contractual limitations, to agree on provision. Ong Eng Kiam vs. Ong,
custody regimes they see fit to adopt. G.R. No. 153206, October 23, 2006
(Dacasin vs. Dacasin, GR168785, February
5, 2010) ============================
6. Guilty spouse is disqualified from intestate ====================
succession and provisions made by TOPICS UNDER THE SYLLABUS
innocent spouse in his favor in a will shall
be revoked by operation of law
G. RIGHTS AND OBLIGATIONS
7. Innocent spouse may revoke the donation BETWEEN HUSBAND AND WIFE
made by him in favor of the offending ========================
spouse. However, alienations, liens and ==================
encumbrances registered in good faith
before the recording of the complaint for Obligations of Husband and Wife (L2H2ds)
revocation in the registries of property shall 1. Live together
be respected. 2. Observe mutual love, respect and fidelity
8. Innocent spouse may revoke designation of 3. Render mutual help and support
guilty spouse as beneficiary in the 4. Management of the household
insurance policy even if such designation be 5. Fix the family domicile
stipulated as irrevocable 6. Joint responsibility for the support of the
family
2. PROCEDURE FOR LEGAL SEPARATION
Profession
A.M. No. 02-11-11-SC General Rule - Either spouse may exercise any
PROPOSED RULE ON LEGAL SEPARATION legitimate profession/business without the
consent of the other
 The Rules of Court shall apply suppletorily Exception - The other spouse may object on
valid, serious and moral grounds. In
Who may file: solely the husband or wife case of disagreement, the court
shall decide whether
When to file: within 5 years from the a. The objection is proper AND
occurrence of any of the grounds b. Benefit has accrued to the family
before and after the objection.

CIVIL LAW REVIEWER Page 27 of 383


  If benefit accrued to Requisites of a Valid Marriage Settlement:
the family before the objection, the (WSB-TC-CR)
resulting obligation shall be enforced 1. In writing
against the separate property of the spouse 2. Signed by the parties
who has not obtained consent 3. Executed before the celebration of marriage
4. To fix the terms and conditions of their
 If benefit accrued to the family after the property relations
objection has been made, the resulting 5. If parental consent is needed for the
obligation shall be enforced against the marriage, the parent/guardian must be
community property made a party to the agreement
6. If the party executing the settlement is
============================ under civil interdiction or any other
==================== disability, the guardian appointed by the
TOPICS UNDER THE SYLLABUS court must be made a party to the
settlement
H. PROPERTY RELATIONS BETWEEN 7. Registration (to bind 3rd persons)
HUSBAND AND WIFE
1. How Governed General Rule: Property Relations are governed
2. Marriage Settlements by Philippine laws
3. Donations by Reason of Exceptions:
Marriage 1. When both are aliens, even if married in the
Phils.
4. Property Relations of Union
2. As to extrinsic validity of contracts
with Marriage 3. Contrary stipulation
a.System of Absolute Marriage
b. Conjugal Partnership of Gains 3. DONATIONS BY REASON OF
5. Separation of Properties During MARRIAGE (Donations Propter
Marriage Nuptias)
6. Regime of Separation of
Before Marriage
Property
General Rule: Future spouses cannot donate
======================== to each other more than 1/5 of their present
================== property (excess shall be considered void)
Requisites:
1. WHAT GOVERNS PROPERTY 1. Made before celebration of marriage
RELATIONS BETWEEN SPOUSES 2. In celebration of marriage
1. Marriage settlement – future spouses may 3. In favor of one or both future spouses
agree upon the regime of ACP, CPG, Exception: If they are governed by ACP
complete separation of property, or any
other regime During Marriage
General Rule: Donations made by spouses to
2. Family Code – if there is no marriage each other during the marriage are VOID
settlement or when the regime agreed upon REASON:
therein is void, the system of ACP shall 1. To protect unsecured creditors from
govern being defrauded
2. To prevent stronger spouse from
3. Local customs imposing upon the weaker one the
transfer of the latter’s property to the
former
3. To prevent indirect modification of the
marriage settlement
2. MARRIAGE SETTLEMENT Exceptions:
1. Moderate gifts on the occasion of any
family rejoicing
2. Donation mortis causa

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Applies to common law spouses (Art. 87) Prescriptive Periods for Filing Action for
Revocation of Donation Propter Nuptias
Grounds to Revoke Donation Propter (Based on Sta. Maria)
Nuptias: (CARNIVL) If marriage is not 5 years (Art. 1149
1. Marriage is not celebrated celebrated NCC) from the time
2. Marriage is judicially declared void ab initio (Except: donations in marriage is not
3. Marriage without the needed parental marriage settlements solemnized on the
consent automatically void if fixed date
4. Marriage is annulled and donee is in bad marriage not
faith celebrated)
5. If it is with a resolutory condition and the
condition is complied with If marriage is judicially
6. In legal separation and donee is the guilty declared void, it
spouse depends: By operation of law if
7. Donee commits acts of ingratitude such as: (a) If subsequent donee-spouse
a. Commits an offense against the person, marriage is void contracted subsequent
honor or property of the donor, his wife, or pursuant to Art. 40 in void marriage in bad
his children under his parental authority relation to Arts. 52 and faith
b. Imputes to the donor any criminal offense 53, because
or any act involving moral turpitude, contracted by a
unless the crime was committed against spouse before prior
the donee himself, his wife, or his children void marriage is
under his authority judicially declared void 5 years from finality of
c. Unduly refuses to support the donor when judicial declaration of
he is legally or morally bound to give such (b) Judicially declared nullity (if action to
support void on grounds other recover property)
than Art. 40 in relation
DONATION PROPTER NUPTIAS v. to Arts. 52 and 53
ORDINARY DONATION When marriage takes 5 years
DONATIONS place without the
ORDINARY
BASIS PROPTER required parental
DONATIONS
NUPTIAS consent
Governed by the If resolutory condition 5 years from
rules on ordinary is complied with happening of condition
donations except Governed by When marriage is 5 years from finality of
Formaliti if future rules on annulled and donee in decree
es property, it must donations (Arts. bad faith
conform with 725-773 NCC) If donee commits an 1 year from donor’s
formalities of act of ingratitude knowledge of that fact
wills In cases of legal 5 years from the time
No limit except separation the decree of
May be donated
that donor shall separation has become
Present but up to 1/5 of
leave property final
Property donor's present
enough for his
property
support 4. PROPERTY RELATIONS
May be included
Future provided Cannot be a. System of Absolute Community
Property donation is included (acp)
mortis causa
Grounds The property regime of spouses in the absence
for Art. 86 of Family Arts. 760, 764, of a marriage settlement or when the regime
revocatio Code 765 NCC agreed upon is void.
n

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4.
E

NOTE: Shall commence at the precise moment xpenses of litigation between spouses
that the marriage is celebrated. Any stipulation, unless the suit is found to be groundless
express or implied, for the commencement of 5. Ante-nuptial debts which redounded to the
the regime at any other time shall be VOID. benefit of the family
6. Taxes and expenses for mere preservation
No waiver of rights allowed during the marriage made during the marriage upon the
except in case of judicial separation of property. separate property of either spouse used by
The waiver must be in a public instrument. the family
7. Expenses for professional or vocational
Property acquired during the marriage, whether course
acquisition appears to have been made in the 8. Other ante-nuptial debts, support of
name of one or both spouses, is PRESUMED to illegitimate child, and liabilities for crime or
belong to the community. quasi-delicts in absence of separate
property
9. Donated or promised to common legitimate
General Rule: The community property
children for profession, vocational course or
consists of all the property owned by the
self improvement
spouses at the time of the celebration of the
marriage or acquired thereafter.
If the community property is insufficient to
cover all these liabilities (except those falling
Exceptions/Exclusions from Community
under (8) spouses shall be solidarily liable for
Property:
the unpaid balance with their separate
1. Property acquired
properties
before the marriage by either spouse who
has legitimate descendants by a former
Dissolution of the ACP:
marriage and its fruits and income
1. Upon death of either spouse
2. Property for
2. Decree of legal separation
personal and exclusive use, except jewelry
3. Marriage is annulled or nullified
3. Property acquired
4. Judicial separation of property during the
during the marriage by gratuitous title,
marriage (Arts. 134-138)
except when the donor, testator, or grantor
expressly provides otherwise
Liquidation of the ACP:
1. Inventory of all properties
 Encumbrance or disposition of the a. Inventory of community property
community property without the consent of b. Inventory of separate property of the wife
the other spouse is totally void. Benefit to c. Inventory of separate property of the
the family must always be proven. husband
Homeowner’s Savings & Loan Bank vs. 2. Debts and obligations of ACP are paid
Dailo, G.R. No. 153802, March 11, 2005 3. Remainder of the separate properties of the
spouses are returned to the owner
Charges Upon and Obligations of the ACP: 4. Net remainder of the ACP is divided equally
1. Debts and obligations contracted during the between husband and wife
marriage: 5. Presumptive legitimes of children are
a.) By either spouse without the consent delivered
of the other to the extent that it 6. Adjudication of conjugal dwelling and
benefited the family custody of common children
b.) By designated administrator-spouse
c.) By both spouses b. System of Conjugal Property of
d.) By one with the consent of the other Gains (cpg)
2. Taxes, liens, charges and expenses
including major or minor repairs, upon The spouses contribute the following to a
community property common fund:
3. Support of spouses, their common children 1. Proceeds, products, fruits and income of
and legitimate children of either spouse separate properties of spouses

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7.
T

2. Everything acquired by spouses through hose acquired by chance


their efforts
3. Everything acquired by spouses through Rules in Cases of Improvement of
chance Exclusive Property:
 Shall commence at the precise moment that GENERAL RULE: The ownership of
the marriage is celebrated. Any stipulation, improvements made on the separate property
express or implied, for the commencement of the spouses at the expense of the
of the regime at any other time shall be partnership or through efforts of both spouses
VOID. shall pertain to the partnership.

 No waiver of rights allowed during the 1. Accession – if the cost of the improvement
marriage except in case of judicial and any resulting increase in value are equal
separation of property. The waiver must be or less than the value of the entire property
in a public instrument. at the time of the improvement, the entire
property remains the exclusive property of
 Property acquired during the marriage, the owner-spouse (subject to reimbursement
whether acquisition appears to have been of improvement cost)
made in the name of one or both spouses, 2. Reverse Accession – if the cost of the
is PRESUMED to be conjugal. improvement and any resulting increase in
value are more than the value of the entire
property at the time of the improvement, the
 The presumption is not rebutted by the property becomes conjugal (subject to
mere fact that the certificate of title of the reimbursement of the value of the property
property or the tax declaration is in the of the owner-spouse)
name of one of the spouses. Villanueva v.
CA,427 SCRA 439 (2004) Charges upon CPG:
-Same as that under ACP, except that under
 It is not even necessary to prove that the taxes and expenses for preservation of
properties were acquired with funds of the separate property of either spouse during the
partnership. The presumption shall subsist marriage -> property need not be used by the
in the absence of clear, satisfactory and family
convincing evidence to overcome the same.
Chine v. CA, 423 SCRA 371 (2004) NOTE: If the conjugal partnership is
insufficient, the spouses shall be solidarily liable
Exclusive Property in CPG: for the unpaid balance with their separate
1. That brought into the marriage as properties.
his/her own
2. That acquired during the marriage Dissolution of CPG: Same as under ACP
gratuitously
3. That acquired by redemption, barter or Liquidation of the CPG:
exchange with exclusive property 1. Inventory of all property
4. That purchased with exclusive money 2. Amounts advanced by CP as payment for
personal debts and obligations of either
What Constitutes CPG: spouse are credited
1. Fruits of conjugal property due or received 3. Reimbursement for use of exclusive funds
during the marriage and net fruits of 4. Debts and obligations of the CP are paid
separate property 5. Remains of exclusive properties are returned
2. Those acquired through occupation 6. Indemnify loss of deterioration of movables
3. Livestock in excess of what was brought to belonging to either spouse used for the
the marriage benefit of the family
4. Those acquired during the marriage with 7. Net remainder of conjugal property is divided
conjugal funds equally
5. Share in hidden treasure 8. Delivery of children’s presumptive legitimes
6. Those obtained from labor, industry, work or
profession of either or both spouse

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9.

Adjudication of conjugal dwelling and custody 2. In case one spouse is incapacitated or


of children unable to participate in the
 Prior to the liquidation of the administration of the common properties,
conjugal partnership, the interest of other spouse may assume sole powers
each spouse in the conjugal assets is  These powers do not include:
inchoate, a mere expectancy, which a. disposition and
constitutes neither a legal nor an b. encumbrance
equitable estate, and does not ripen into - Both spouses must approve any
title until after liquidation and disposition or encumbrance. Any
settlement. The right of the husband or encumbrance or disposition is void if
wife to one-half of the conjugal assets without the written consent of the other
does not vest until the dissolution and spouse or the court approval. However,
liquidation of the conjugal partnership or the transaction shall be construed as a
after dissolution of the marriage and continuing offer on the part of the
there are net assets left which can be consenting spouse, which may be
divided between the spouses or their perfected as a binding contract upon
respective heirs. Abalos v. acceptance by the spouse or court
Macatangay, 439 SCRA 649 (2004) approval.
NOTES:
 Property bought on installments paid partly Rules on Games of Chance: (ACP/CPG)
from exclusive funds of the spouses and LOSS: Borne by the loser spouse and shall
partly from conjugal funds: not be charged to the community
a. If full property
ownership is vested before the marriage WINNINGS: Form part of the community
– it shall belong to the buyer-spouse property
b. If full
ownership was vested during the Distinction between ACP and CPG
marriage – it shall belong to the ACP CPG
conjugal partnership All the properties Each spouse retains
(In any case, the amount advanced by the owned by the his/her property
partnership or by either/both spouses shall spouses at the time before the marriage
be reimbursed by the owner upon of marriage become and only the fruits
liquidation) community property and income of such
properties become
 If the community or conjugal properties are part of the conjugal
insufficient, the separate properties shall be properties during the
solidarily and subsidiarily liable for the marriage
obligations Upon dissolution and Upon dissolution of
liquidation of the the partnership, the
 The conjugal partnership property shall community property, separate property of
likewise be liable for the payment of the the net remainder is the spouses are
personal debts of either spouse insofar as divided equally returned and only the
they have redounded to the benefit of the between the spouses. net profits of the
family. partnership are
divided equally
Administration and Enjoyment of the between the spouses
ACP/CPG of their heirs
General Rule: It shall belong to both spouses
jointly c. Separation of Property
Exceptions:
1. In cases of disagreement, husband’s  Separation of property between the spouses
decision shall prevail during the marriage shall not take place
 Wife has recourse to the courts within except by judicial order.
5 years

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 1.
O

Judicial separation of property may either be ne spouse becomes guardian of the other
voluntary or for sufficient cause. 2. One spouse judicially declared absent
3. One spouse sentenced to penalty with civil
SUFFICIENT CAUSE GROUNDS FOR interdiction
FOR SEPARATION REVIVAL OF 4. One spouse becomes a fugitive from justice
OF PROPERTY FORMER or is hiding as an accused in a criminal case
PROPERTY REGIME
1. Petitioner’s 2. Civil interdiction PROPERTY REGIME OF UNIONS WITHOUT
spouse sentenced to terminates MARRIAGE
penalty with civil BASIS ARTICLE 147 ARTICLE 148
interdiction 1. Man and
2. Petitioner’s 2. Absent spouse re- woman
spouse declared an appears 2. Living 1. Man and woman
absentee together as 2. Living together
3. Loss of parental 3. Parental authority husband and as husband and
authority of judicially restored wife wife
petitioner’s spouse 3. With capacity 3. NOT
declared by court to marry capacitated to
(without legal marry (Art.35(1)
impediment) under 18 years
 At least 18 old)
years old 4. Adulterous
4. Abandonment or 4. When spouse who Applicabil  Not Art. 37 relationship
failure to comply has left conjugal ity (incestuous (e.g.
with marital home without degree void concubinage)
obligations of legal separation marriage) 5. Bigamous/polyg
resumes common life  Not Art. 38 amous marriage
with the other (void (Art.35(4))
5. Spouse abused 5. Court authorizes marriage by 6. Incestuous
power of the resumption of reason of marriages under
administration administration, being public policy) Art.37
granted satisfied that there  Not 7. Void marriages
will be no abuse bigamous by reason of
6. At the time of 6. Spouses reconcile 4. Other void public policy
petition, spouses and resume common marriages / under Art.38
have been separated life live-in
in fact for at least Exclusively owned;
one year and Salaries married party 
Owned in equal
reconciliation is and property of CPG of
shares
highly improbable wages legitimate
7. When after marriage
voluntary dissolution Propertie
of the ACP or CPG s Remains
has been judicially acquired exclusive
decreed, spouses Remains exclusive
through provided there
agree to revive exclusive is proof
former regime (no funds
subsequent Propertie Presumed to be Only the
voluntary separation s obtained in properties
may be granted) acquired equal shares acquired by both
while since it is parties through
GROUNDS FOR TRANSFER OF living presumed to their actual joint
ADMINISTRATION OF EXCLUSIVE together have been contribution of
PROPERTY OF EITHER SPOUSE: (GACA) acquired money, property,

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through joint or industry shall ===========================
efforts be owned by them ===================
in common in
If one party did proportion to their FAMILY - basic social institution which public
not participate respective policy cherishes and protects
in acquisition, contributions.  Hence, no suit between members of the
presumed to Properties owned family shall prosper unless earnest efforts
have in common shall towards a compromise have been made but
contributed be presumed to be failed.
through care equal; however,  Allegation of “earnest efforts” is
and proof may be JURISDICTIONAL, if it is absent, the court can
maintenance of shown to show dismiss the case. BUT this rule is
family and that their inapplicable to the following cases: (CLV-
household contribution and FJF)
respective shares 1. Civil status of persons
are not equal. 2. Any ground for legal separation
3. Validity of marriage or legal separation
 The registration of a property in the name 4. Future support
of the paramour who had no income 5. Jurisdiction of courts
whatsoever at the time of the donation by 6. Future legitime
another’s husband is tantamount to a
donation which is void under Article 87 of FAMILY RELATIONS INCLUDE:
the Family Code. The paramour then holds 1. Between husband and wife
the property under a constructive trust 2. Between parents and children
under Article 1456 in favor of the conjugal 3. Among other ascendants and descendants
partnership of the husband with the 4. Among brothers and sisters, full or half
legitimate spouse. Joaquino v. Reyes, 434 blood
SCRA 260 (2004)
============================
 Under Article 148, there must be proof of ====================
actual joint contribution by both the live-in TOPICS UNDER SYLLABUS
partners before the property becomes co- J.
owned by them in proportion to their FAMILY HOME
contribution. Otherwise, there are no
============================
presumptions of co-ownership and equal
====================
sharing. Villanueva v. CA, 427 SCRA 439
(2004)
FAMILY HOME It is deemed constituted from
the time it is occupied as a family residence
 No co-ownership exists between parties to
an adulterous relationship. In such a BENEFICIARIES OF A FAMILY HOME
relationship, it is necessary for each of the 1. Husband and wife, or unmarried head of the
partners to prove his or her actual family
contribution to the acquisition of property in 2. Parents (may include parent-in-laws),
order to be able to lay claim to any portion ascendants, brothers and sisters
of it. Presumptions of co-ownership and (legitimate/illegitimate) living in the family
equal contribution do not apply. Rivera v. home and dependent on head of family for
Heirs of Villanueva, G.R. No. 141501, support
July 21, 2006
1. MANNER OF CONSTITUTION
===========================
=================== GUIDELINES:
TOPICS UNDER SYLLABUS: 1. FH is deemed constituted from time of
I. The Family (Arts 149-151, FC) actual occupation as a family residence
2. FH must be owned by person constituting it

CIVIL LAW REVIEWER Page 34 of 383


3. 3.
H

FH must be permanent e has reasonable grounds to believe that


4. Rule applies to valid, voidable and even to the family home is worth more than the
common-law marriages under Arts. 147 and maximum amount fixed in Art. 157
148
5. FH continues despite death of one or more PROCEDURE:
spouses or unmarried head of family for 10 1. Creditor to file a motion in the court
years or as long as there is a minor proceeding where he obtained a favorable
beneficiary (Art. 159) for a writ of execution against FH.
6. Only one FH can be constituted 2. Hearing on the motion where the creditor
must prove that the actual value of the FH
2. QUALIFIED PROPERTY exceeds the maximum amount fixed by the
Family Code, either at the time of its
Actual value of the family home shall not constitution or as a result of improvements
exceed P300,000 in URBAN areas and P200,000 introduced thereafter its constitution.
in RURAL areas (Art.157) 3. If creditor proves that actual value exceeds
the maximum amount the, court will order
3. EXEMPTION FROM EXECUTION its sale in execution.
4. If FH is sold for more than the value
General Rule: (Art. 153) The family home allowed, the proceeds shall be applied as
(FH) is exempted from: follows:
1. Execution a. First, the obligations enumerated in Art.
2. Forced Sale 155 must be paid (listed above)
3. Attachment b. Then the judgment in favor of the
Exceptions: (Art. 155) creditor will be paid, plus all the costs of
1. Non-payment of taxes execution
2. Debts incurred prior to constitution of home c. The excess, if any, shall be delivered to
3. Debts secured by mortgages on the the judgment debtor
premises
4. Debts due laborers, mechanics, architects, ============================
builders, materialmen, and others who have ==================
rendered service or furnished materials for TOPICS UNDER SYLLABUS
the construction of the building K. Paternity and Filiation (Arts. 163-
182, FC)
NOTE: The exemption is limited to the value
allowed by the Family Code
1. Kinds of Filiation
2. Children by Nature
4. SALE a. Legitimate Children
b. Illegitimate Children
Sale, Alienation, Donation, Assignment, Or c. Legitimated Children
Encumbrance Of The Family Home 3. Actions regarding filiation
1. The person who constituted the same must
a. To claim filiation
give his/her written consent
2. The spouse of the person who constituted i. Proof of filiation
the family home must also give his/her ii. Admissibility of Scientific
written consent Testing
3. A majority of the beneficiaries of legal age b. To impugn filiation
must also give their written consent 4. Rights of
4. In case of conflict, the court shall decide Legitimate/Legitimated/Illegitimat
Requisites For Creditor To Avail Of The
e Children
Right To Execute: (Art. 160)
1. He must be a judgment creditor ========================
2. His claim is not among those excepted ==================
under Art. 155 TOPICS UNDER SYLLABUS

CIVIL LAW REVIEWER Page 35 of 383


G. PATERNITY AND FILIATION probative value. Concepcion v. CA, [G.R.
1.Kinds of Filiation No. 123450, Aug. 31, 2005]
2 Children by Nature
============================
b. Illegitimate Children
====================
ILLEGITIMATE CHILDREN -are those
1.KINDS OF FILIATION
conceived AND born outside a valid marriage.
2.CHILDREN BY NATURE
Exceptions: Those children who are:
a. Legitimate Children
1. Born of marriages which are void ab initio
such as bigamous and incestuous marriages
LEGITIMATE CHILDREN -are those conceived
and void marriages by reason of public
OR born during a valid marriage.
policy
2. Born of voidable marriages born after the
INCLUSIONS: Those children who are:
decree of annulment
1. Conceived as a result of artificial
insemination
c. Legitimated Children
2. Born of a voidable marriage before decree
of annulment
REQUISITES FOR LEGITIMATION:
3. Conceived or born before judgment of
1. The child was conceived and born outside of
annulment or absolute nullity under Art. 36
wedlock
(psychological incapacity) becomes final &
2. The parents, at the time of child’s
executory
conception, were not disqualified by any
4. Conceived or born of a subsequent
impediment to marry each other
marriage under Art. 53 (failure to record the
3. There is a valid marriage subsequent to the
judgment, partition and distribution of
child’s birth
properties, and delivery of children’s
presumptive legitime)
5. Of mothers who may have declared against  Legitimation takes place by the subsequent
their legitimacy or was sentenced as an marriage of the child’s parents
adulteress (Art.167)  Effect of legitimation:
6. Legally adopted -Confers on the child the rights of legitimate
7. Legitimated, conceived and born outside of children
wedlock of parents without impediment at -Retroacts to the time of the child’s birth
the time of conception and who  Legitimation may be impugned only by
subsequently married those who are prejudiced in their rights
within 5 years from the time the cause of
 A child born inside a valid marriage is action accrues (death of parents of
legitimate. Hence a child born inside a legitimated child)
bigamous marriage, which is void, is
considered a child under the first marriage, 3. ACTIONS REGARDING FILIATION
which has not been nullified or annulled.
Concepcion v. CA, [G.R. No. 123450, a. To claim filiation
Aug. 31, 2005] i. Proof of filiation

 An agreement by parties as to the status of PROOF OF FILIATION


a child is void. Only the law determines General Rule: (Art. 172, Par. 1) Filiation of
legitimacy or illegitimacy. Thus, the child, in legitimate or illegitimate children is established
eyes of the law, is legitimate under the first by any of the following:
marriage notwithstanding the admission in
pleadings by the wife and his second 1. The record of birth appearing in the civil
husband that the child is their legitimate register or a final judgment
son. Similarly, any declaration of the
mother that her child is illegitimate has no  Must be prepared by the father. A certificate
of live birth purportedly identifying the

CIVIL LAW REVIEWER Page 36 of 383


putative father is not competent evidence
of paternity when there is no showing that  The due recognition of an illegitimate child
the putative father had a hand in the in a record of birth, a will, a statement
preparation of said certificate. The local civil before a court of record, or in any authentic
registrar has no authority to record the writing is, in itself, a consummated act of
paternity of an illegitimate child on the acknowledgement of the child, and no
information of a third person. Cabatania v. further court action is required. In fact, any
CA, [441 SCRA 96 (2004)] authentic writing is treated not just a
 Record of Birth merely prima facie ground for compulsory recognition; it is in
evidence. In Benitez-Badua v. CA, it is well- itself a voluntary recognition that does not
settled that a record of birth is merely a require a separate action for judicial
prima facie evidence of the facts contained approval. Eceta v. Eceta, [428 SCRA 204
therein. It is not conclusive evidence of the (2004)]
truthfulness of the statements made there
by the interested parties. NOTE: For illegitimate children: when the
action is based on the par. 2 of Art. 172, the
2. An admission of legitimate or illegitimate action may be brought ONLY during the lifetime
filiation in a public document or a private of the alleged parent
handwritten instrument and signed by the
parent concerned ii. Admissibility of Scientific Evidence

Exception: (Art. 172, Par. 2) In the absence REQUISITES FOR CHILDREN BY ARTIFICIAL
of these evidences, the legitimate filiation may INSEMINATION TO BE CONSIDERED
be proved by: LEGITIMATE: (Art. 164)
1. Open and continuous possession of the 1. The artificial insemination must made on
status of a legitimate (or illegitimate) child the wife;
2. The sperm of the husband, or of a donor, or
 Definition. Continuous does not mean that both the husband and a donor must be
the concession of status shall continue used;
forever but only that it shall not be of an 3. The artificial insemination has been
intermittent character while it continues. authorized or ratified by both spouses on a
The possession of such status means that written instrument executed and signed by
the father has treated the child as his own, them before the birth of the child; AND
directly and not through others, 4. The written instrument is recorded in civil
spontaneously and without concealment registry together with the birth certificate of
though without publicity. Mendoza v. CA, the child
[G.R. No. 86302, Sept. 21, 1991]
b. To impugn filiation
 How to prove. There must be evidence of
the manifestation of the permanent WHO MAY IMPUGN THE LEGITIMACY OF A
intention of the supposed father to consider CHILD:
the child as his, by continuous and clear General Rule: Only the husband can impugn
manifestations of parental affection and the legitimacy of a child
care, which cannot be attributed to pure Exceptions: The heirs of the husband may
charity. Such acts must be of such a nature impugn the child’s filiation in the following
that they reveal not only the conviction of cases:
paternity, but also the apparent desire to a. If the husband dies before the expiration of
have and treat the child as such in all period for filing the action
relations in society and in life, not b. If the husband dies after filing without
accidentally, but continuously. Jison v. CA, desisting
[G.R. No. 124853, February 24, 1998] c. If the child was born after the death of the
husband
2. Any other evidence allowed by the Rules of
Court and special laws

CIVIL LAW REVIEWER Page 37 of 383


GROUNDS TO IMPUGN THE LEGITIMACY OF direct suit precisely filed for the purpose of
THE CHILD: (EXCLUSIVE LIST) (PBA) assailing the legitimacy of the child.
1. It was physically impossible for the husband
to have sexual intercourse with his wife RULE ON STATUS OF A CHILD BORN
within the first 120 days of the 300 days WITHIN 300 DAYS AFTER TERMINATION OF
which immediately preceded the birth of the FORMER MARRIAGE (Art. 168):
child because of: Rules in the absence of proof to the contrary:
a. Physical incapacity of the husband to
have sexual intercourse with his wife 1. If the child was born before 180 days after
b. Fact that the husband and wife were celebration of 2nd marriage provided born
living separately in such a way that within 300 days after the termination of the
sexual intercourse was not possible, or 1st marriage: considered to have been
c. Serious illness of the husband which conceived during the first marriage.
absolutely prevented intercourse
2. If its proved that for biological or other 2. If the child was born after 180 days
scientific reasons, the child could not have following the celebration of the 2nd marriage
been that of the husband, except in the whether born within 300 days after
case of children conceived through artificial termination of 1st marriage or afterwards:
insemination considered to have been conceived during
3. In case of children conceived through the second marriage.
artificial insemination, when the written
authorization or ratification of either parent ACTION TO CLAIM LEGITIMACY:
was obtained through mistake, fraud, 1. The child can bring the action during his
violence, intimidation, or undue influence lifetime
2. If the child dies after reaching majority
PERIODS FOR FILING OF ACTION TO without filing an action, his heirs can no
IMPUGN LEGITIMACY: longer file the action after death
1. If the husband (or his heirs, in proper cases) 3. If the child dies during minority or in the
resides in the SAME city or municipality: state of insanity, his heirs can file the action
within 1 year from knowledge of the birth for him within 5 years from the child’s death
OR its recording in the civil register 4. If the child dies after commencing the
2. If the husband (or his heirs) does NOT action, the action will survive and his heirs
RESIDE in the city or municipality where the will substitute for him
child’s birth took place or was recorded BUT 5. If the child is a minor, incapacitated or
his residence is IN THE PHILS.: within 2 insane, his guardian can bring the action in
years his behalf
3. If the child’s birth took place or was
recorded in the PHILS. while the husband
has his residence ABROAD, or vice-versa: 4. RIGHTS OF
within 3 years LEGITIMATE/LEGITIMATED/ILLEGITIMATE
CHILDREN
NOTE:
 The period shall be counted from the RIGHTS OF LEGITIMATE AND ILLEGITIMATE
knowledge of the child’s birth or its CHILDREN
recording in the civil register. LEGITIMAT
HOWEVER, if the child’s birth was BASIS ILLEGITIMATE
E
concealed from or was unknown to the Use of mother’s
husband or his heirs, the period shall be surname
counted from the discovery or knowledge of Use of NOTE: R.A. 9255
the birth of the child or of the act of father and amended Art. 176
registration of said birth, whichever is earlier. Surname
mother’s of FC as of March
surname 19, 2004  can
 Legitimacy CANNOT be collaterally attacked use father’s
or impugned. It can be impugned only in a surname

CIVIL LAW REVIEWER Page 38 of 383


Legitime Entitled to Entitled only to ½ 3. Father’s admission in private
legitime and of legitime of handwritten document (R.A. 9255, Sec. 1,
other legitimate child effective March 19, 2004)
successional NOTE: The father under R.A. 9255, Sec. 1
rights has the right to file an action to prove non-
granted to filiation during his lifetime.
them by the
NCC ===========================
Entitled to
==================
receive
support TOPICS UNDER SYLLABUS
from L. ADOPTION (Arts 183-193, FC)
parents,  Inter-country Adoption Law
ascendants, Receive support
 Domestic Adoption Law
Support and in according to the
proper provision of the FC 1. Construction
cases, 2. Qualifications and
brothers and Disqualifications of Adopter
sisters 3. Qualifications and
under Art. Disqualifications of Adopted
174
4. Rights Granted by Adoption
 His/her whole
His/her 5. Rules on Succession
lifetime
whole
regardless of 6. Rescission of Adoption
Action for lifetime ========================
type of proof
claim for regardless
provided under ==================
legitimacy of type of
Art.172 par. 1
or proof
illegitimacy provided  ONLY lifetime of R.A. 8043: INTER-COUNTRY ADOPTION
under Art. alleged parent ACT OF 1995
172 for Art. 172 par.
2 1. CONSTRUCTION
Transmissi
ble to heirs INTER-COUNTRY ADOPTION -is the socio-
Yes No
under legal process of adopting a Filipino child by a
Art.173? foreigner or a Filipino citizen permanently
No right to inherit residing abroad where the petition is filed, the
ab intesto from supervised trial custody is undertaken, and the
Right to legitimate children decree of adoption is issued outside the
inherit ab Yes and relative of Philippines.
intesto father and mother
under Art. 992 2. QUALIFICATIONS AND
NCC DISQUALIFICATIONS OF ADOPTER

NOTE: An alien or a Filipino citizen permanently


 Use the surname of the mother if the residing abroad may file an application for inter-
requisites of R.A. 9255 are not complied country adoption of a Filipino child if:
with 1. At least 27 years of age and at least 16
 Use the surname of the father if the child’s years older than the child to be adopted, at
filiation has been expressly recognized by the time of application unless the adopter is
the father, either through: the parent by nature of the child to be
1. Record of birth in civil register adopted or the spouse of such parent
2. Father’s admission in public document 2. If married, his/her spouse must jointly file
for the adoption

CIVIL LAW REVIEWER Page 39 of 383


3.

Has the capacity to act and assume all rights 1. CONSTRUCTION


and responsibilities of parental authority
under his national laws, and has undergone 2. QUALIFICATIONS AND
the appropriate counseling from an DISQUALIFICATIONS OF ADOPTER
accredited counselor in his/her country
4. Has not been convicted of a crime involving WHO MAY ADOPT:
moral turpitude 1. FILIPINO CITIZEN
5. Eligible to adopt under his/her national law a. Of legal age
6. In a position to provide the proper care and b. In possession of full civil capacity
support and to give the necessary moral and legal rights
values and example to all his children, c. Of good moral character
including the child to be adopted d. Has not been convicted of any crime
7. Agrees to uphold the basic rights of the involving moral turpitude
child as embodied under Philippine laws, e. Emotionally and psychologically
the U.N. Convention on the Rights of the capable of caring for children,
Child, and to abide by the rules and f. At least 16 years older than the
regulations issued to implement the person to be adopted, unless:
provisions of this Act i. The adopter is the natural parent
8. Comes from a country with whom the of the child to be adopted, or
Philippines has diplomatic relations and ii. The adopter is the spouse of the
whose government maintains a similarly legitimate parent of the person
authorized and accredited agency and that to be adopted
adoption is allowed under his/her national g. In a position to support and care for
laws his legitimate and illegitimate
9. Possesses all the qualifications and none of children, in keeping with the means
the disqualifications provided herein and in of the family
other applicable Philippine laws 2. ALIEN
a. Possessing the same qualifications
3. QUALIFICATIONS AND as above stated for Filipino nationals
DISQUALIFICATIONS OF ADOPTED b. His/her country has diplomatic
relations with the Philippines
WHO MAY BE ADOPTED: Only a legally free c. He/she has been living in the
child may be the subject of inter-country Philippines for at least 3 continuous
adoption years prior to the filing of the
application for adoption and
LEGALLY-FREE CHILD - is a child who has maintains such residence until the
been voluntarily or involuntarily committed to adoption decree is entered, EXCEPT
the Department, in accordance with the Child in the case of:
and Youth Welfare Code i. A former Filipino citizen who
seeks to adopt a relative within
 No child shall be matched to a foreign the 4th degree of consanguinity
adoptive family unless it is satisfactorily or affinity; or
shown that the child cannot be adopted ii. One who seeks to adopt the
locally legitimate child of his/her Filipino
 Qualified children: Section 25, Article 8 of spouse; or
the Rules and Regulations provide: any child iii. One who is married to a Filipino
who has been voluntarily or involuntarily citizen and seeks to adopt jointly
committed to the Department as with his/her spouse a relative
dependent, abandoned, or neglected within the 4th degree of
pursuant to the provisions of the Child and consanguinity or affinity of the
Youth Welfare Code may be the subject of Filipino spouse; or
Inter-Country Adoption 3. GUARDIAN - with respect to the ward
after the termination of the guardianship
R.A. 8552: DOMESTIC ADOPTION ACT and clearance of his/her financial
accountabilities

CIVIL LAW REVIEWER Page 40 of 383


RULE ON ADOPTION BY SPOUSES applies in case the petitioner dies before
General Rule: Husband and wife shall jointly the issuance of the decree of adoption
adopt  Where the petition for adoption was granted
Exceptions: after the child killed a girl, no retroactive
1. One spouse seeks to adopt the legitimate effect may be given to the decree of
son/daughter of the other; or adoption so as to impose a liability upon the
2. One spouse seeks to adopt his/her own adopting parents accruing at a time when
illegitimate son/daughter the adopting parents had no actual or
3. The spouses are legally separated from physically custody over the adopted child.
each other. Retroactive effect may perhaps be given
where such is essential to permit the
3. QUALIFICATIONS AND accrual of some benefit or advantage in
DISQUALIFICATIONS OF ADOPTED favor of the adopted child. To hold that
parental authority had been retroactively
WHO MAY BE ADOPTED: lodged in the adopting parents so as to
1. Any person below 18 years of age who has burden them with liability for a tortuous act
been administratively or judicially declared that they could not have foreseen nor
available for adoption; prevented would be unfair and
2. Legitimate son/daughter of one spouse by unconscionable. Tamargo v. CA, [G.R. No.
the other spouse; 85044, June 3, 1992]
3. Illegitimate son/daughter by a qualified
adopter to improve his/her status to that of 4. RIGHTS GRANTED BY ADOPTION
legitimacy;
4. Person of legal age if, prior to the adoption, EFFECTS OF ADOPTION:
said person has been consistently 1. Severance of all legal ties between the
considered and treated by the adopter as biological parents and the adoptee and the
his/her own child since minority; same shall then be vested on the adopters
5. Child whose adoption has been previously EXCEPT in cases where the biological parent
rescinded; or is the spouse of the adopter
6. Child whose biological or adoptive parents 2. Deemed a legitimate child of the adopter
have died provided that no proceedings 3. Acquired reciprocal rights and obligations
shall be initiated within 6 months from the arising from parent-child relationship
time of death of said parents. 4. Right to use surname of the adopter

WRITTEN CONSENT NECESSARY FOR 5. RULES ON SUCCESSION


ADOPTION:
(A-BLISS-A) In legal and intestate succession, the adopters
1. Adoptee, if 10 years of age or over; and the adoptee shall have reciprocal rights of
2. Biological parents of the child, if known, or succession without distinction from legitimate
the legal guardian, or the proper filiation. However, if the adoptee and his/her
government instrumentality which has legal biological parents had left a will, the law on
custody of the child testamentary succession shall govern.
3. Legitimate children of the adopter, 10 years
old or over 6. RECISSION OF ADOPTION
4. Illegitimate children of the adopter, 10
years old or over and living with him GROUNDS FOR RECISSION OF ADOPTION:
5. Spouse of the adopted, if married (MASA)
6. Spouse of the adopter, if married 1. Repeated physical and verbal maltreatment
7. Adopted children of the adopter, 10 years by the adopters despite having undergone
old or over counseling
2. Attempt on the life of the adoptee
EFFECTIVITY OF DECREE OF ADOPTION 3. Sexual assault or violence
 A decree of adoption is effective as of the 4. Abandonment and failure to comply with
date the original petition was filed. This also parental obligations.

CIVIL LAW REVIEWER Page 41 of 383


 1.
S

Adoption, being in the best interest of the child, ustenance


shall not be subject to rescission by the 2. Dwelling
adopter 3. Clothing
 Only the adoptee is given the right to 4. Medical attendance
rescind the decree of adoption 5. Education – includes schooling (formal
 However, the adopters may disinherit the education) or training (non-formal
adoptee for causes provided in Art. 919 NCC education) for some profession, trade or
vocation, even beyond the age of majority
EFFECTS OF THE RESCISSION OF THE 6. Transportation – includes expenses going to
ADOPTION: and from school, or to and from place of
1. The parental authority of the adoptee's work (art. 194)
biological parents, if known, OR the legal
custody of the DSWD shall be restored if the  Makes no distinction between natural
adoptee is still a minor or incapacitated. support (basic necessities) and civil support
2. The reciprocal rights and obligations of the (those beyond the basics)
adopters and the adoptee to each other
shall be extinguished. NOTE: Amount of support shall be in proportion
3. The court shall order the Civil Registrar to to the means of the giver and to the need of
cancel the amended certificate of birth of the recipient
the adoptee and restore his/her original
birth certificate. 2. PERSONS OBLIGED TO SUPPORT EACH
4. Succession rights shall revert to its status OTHER
prior to adoption, but only as of the date of
judgment of judicial rescission. Vested Persons Obliged To Support Each Other To
rights acquired prior to judicial rescission The Whole Extent: (Art. 195)
shall be respected. a. Spouses
b. Ascendants and
============================ Descendants
==================== c. Parents and
TOPICS UNDER SYLLABUS Legitimate/Illegitimate
M. SUPPORT (Arts 194-208) Children/Descendants
d. Legitimate/Illegitimate
1. What constitutes support
Brothers and Sisters
2. Persons Obliged to Support each
other RULES REGARDING SUPPORT TO
a. Spouses ILLEGITIMATE BROTHERS AND SISTERS
b. Ascendants and Descendants (WHETHER FULL OR HALF BLOOD):
c. Parents and Legitimate and 1. If the one asking for support is below
Illegitimate majority age, he is entitled to support from
his illegitimate brother or sister to the full
Children/Descendants extent, without any condition
d. Legitimate/Illegitimate 2. If the one asking for support is already of
Brothers and Sisters majority age, he is entitled to support only if
2. Contractual Support his need for support is not due to a cause
3. Basis of Support imputable to his fault or negligence (Art.
4. Options of Giver 196)
========================
================== PROPERTIES THAT ARE LIABLE FOR THE
SUPPORT OF THE RELATIVES (SOURCES
1. WHAT CONSTITUTES SUPPORT OF MUTUAL SUPPORT)
Spouses
SUPPORT consists of everything indispensable Absolute community
for: of conjugal

CIVIL LAW REVIEWER Page 42 of 383


partnership can be between
strangers
Common children of Not exempt from
the spouses Absolute community attachment and
or conjugal property execution because it is
not a legal obligation
Children of a spouse
by another marriage Absolute community Exception: If the giver
or conjugal property Exempt from execution contracts with a person
and attachment whom he is obliged by
law to support, in which
Under ACP, separate
case only the excess of
property of parent- what is obliged (based
spouse. But if
on need) can be
insufficient, absolute attached or subject to
community liable but
execution
considered as
Follow rules of
advances on the
contracts which says
share of the parent to
that obligation must be
be paid during If contained in a will,
fulfilled (support must
liquidation apply the rules of
Illegitimate children be given) no matter
contractual support
of either spouse what happens (even if
Under CPG, separate because there is no
you lose your job). BUT
property of parent- more obligation of
if the change in
spouse. But if support to speak of
circumstances are
insufficient, conjugal since the giver is
manifestly beyond that
partnership liable if already dead
contemplation of the
financially capable,
parties, support may be
but support paid shall
adjusted accordingly
be deducted from
share of spouse
during liquidation  Judgment of support is always provisional
Separate property of in character. Res Judicata does not apply.
the obligor-spouse Lam v. Chua, [426 SCRA 29 (2004])

if the same is not 4. OPTIONS OF GIVER


Legitimate
sufficient or there is
ascendants, other Options Of The Person Giving Support:
none, the absolute
legitimate and 1. To give a fixed monthly allowance; or
community or
illegitimate 2. To receive and maintain the recipient in the
conjugal property
descendants, and giver's home or family dwelling (Art. 204)
shall be liable if
legitimate and
financially capable,
illegitimate brothers Exception to # 2: Existence of legal or moral
which support shall be
and sisters obstacle
deducted from the
share of the spouse
upon liquidation of the ORDER OF LIABILITY IF 2 OR MORE ARE
ACP or CPG OBLIGED TO SUPPORT:
1. Spouse
2. Descendants in nearest degree
2. CONTRACTUAL SUPPORT 3. Ascendants in nearest degree
3. BASIS OF SUPPORT 4. Brothers and sisters (Art. 199)

 When the obligation to give support falls


CONTRACTUAL
LEGACY OF SUPPORT upon two or more persons, the payment of
SUPPORT
Based on law Based on contract, so it

CIVIL LAW REVIEWER Page 43 of 383


the same shall be divided between them in CHILDREN
proportion to the resources of each. From the
From the
 However, in case of urgent need and by communit From the
separate
special circumstances, the judge may order y property community
property of the
only one of them to furnish the support property
spouses
provisionally, without prejudice to his right
to claim from the other obligors the share
due from them. ============================
 When two or more recipients at the same =================
time claim support from one and the same TOPICS UNDER SYLLABUS
person legally obliged to give it, and the
obligor does not have sufficient means to
N. Parental Authority
satisfy all claims: 1. Contempt
-The order established in the preceding 2. Over Person
article shall be followed: 3. Over Property
a. Spouse 4. Substitute and Special Parental
b. Descendants in nearest degree Authority
c. Ascendants in nearest degree
5. Suspension/Termination of
d. Brothers and sisters (Art. 200)
- If the concurrent obligees should be the Parental Authority
spouse and a child subject to parental 6. Liability of Parents for Acts of
authority, the child shall be preferred Children
========================
SOURCES OF SUPPORT ==================
DURING
PENDING AFTER
THE 1. CONTEMPT
LITIGATION LITIGATION
MARRIAGE
SPOUSES PARENTAL AUTHORITY (PATRIA POTESTAS)
From the -is the mass of rights and obligations which
community parents have in relation to the person and
property assets property of their children until their
except if Art. emancipation, and even after, under certain
203 applies, i.e. circumstances.
if the claimant
spouse is the Characteristics Of Parental Authority:
guilty spouse, 1. It is a natural right and duty of the parents
No obligation to
he/she will not (Art. 209)
support except if
be entitled to 2. It cannot be renounced, transferred or
there is legal
support. waived, except in cases authorized by law
From the separation, in
communit which case the (Art. 210)
If the spouses 3. It is jointly exercised by the father and the
y property court may
are under CPG, mother (Art. 211)
require the guilty
support is 4. It is purely personal and cannot be
spouse to give
considered an exercised through agents
support
advance of such 5. It is temporary
spouses' share;
the rule does 2. OVER PERSON
not apply if the
spouses are RULES AS TO THE EXERCISE OF PARENTAL
under ACP, AUTHORITY:
based on Art 1. The father and the mother shall jointly
153 exercise parental authority over the persons
of their common children. In case of
disagreement, the father's decision shall

CIVIL LAW REVIEWER Page 44 of 383


2.
I

prevail, unless there is a judicial order to n case of disagreement, the father’s


the contrary (Art. 211) decision shall prevail, unless there is judicial
2. If the child is illegitimate, parental authority order to the contrary
is with the mother. 3. If the market value of the property or the
annual income of the child exceeds
WHO EXERCISES PARENTAL AUTHORITY P50,000, the parent is required to furnish a
Absence bond of not less than 10% of the value of
of either Parent present the child’s property or income
parent
Death of 4. SUBSTITUTE AND SPECIAL PARENTAL
either Surviving parent AUTHORITY
parent
Remarriag Order Of Substitute Parental Authority:
e of Surviving parent, unless the court 1. The surviving grandparent
surviving appoints a guardian 2. The oldest brother or sister, over 21 years
parent old, unless unfit or disqualified
Parent designated by the court, 3. The child's actual custodian, over 21 years
taking into account all relevant old, unless unfit or disqualified (Art. 216)
considerations, especially the
choice of the child over 7 years  In case of foundlings, abandoned children,
old, unless the parent chosen is neglected children, or abused children,
unfit summary judicial proceedings shall be
GR: A child under 7 years of age instituted so that they may be entrusted to:
shall not be separated from the a. Heads of children’s homes
mother UNLESS the court b. Orphanages, or
Separation
finds compelling reasons to c. Similar institutions duly accredited by
of parents
order otherwise (TENDER the proper government agency (Art.
(Art. 213)
YEARS DOCTRINE) 217)
Paramount consideration in
matters of custody of a child is the Person Exercising Special Parental
welfare and well-being of the child Authority:
Tonog v. Court of Appeals, 1. School
[G.R. No. 122906, February 7, 2. Administrators and teachers
2002] 3. Individual, entity, or institution engaged in
child care
 In case of death, absence or unsuitability of
both parents, the surviving grandparent Liability Of Those Exercising Special
shall exercise substitute parental authority Parental Authority Over The Child:
(Art. 214) 1. They are principally and solidarily liable for
 No descendant shall be compelled, in damages caused by the acts or omissions of
criminal cases, to testify against his parents the child while under their supervision,
or grandparents, except when such instruction or custody. HOWEVER, this
testimony is indispensable in a crime liability is subject to the defense that the
against the defendant or by one parent person exercising parental authority
against the other. (Art 215) exercised proper diligence.
2. The parents and judicial guardians of the
3. OVER PROPERTY minor or those exercising substitute
parental authority over the minor are
subsidiarily liable for said acts and
Effect Of Parental Authority Upon The
omissions of the minor.
Property Of The Child:
1. The father and mother shall jointly exercise
legal guardianship over the property of the
minor common child without court
appointment

CIVIL LAW REVIEWER Page 45 of 383


DISTINCTION BETWEEN SUBSTITUTE AND leg to stand on to deprive the mother of a
SPECIAL PARENTAL AUTHORITY child below seven years of age, unless there
SUBSTITUTE are compelling reasons to do so. Gualberto
SPECIAL PARENTAL
PARENTAL v. Gualberto, G.R. No. 154994, June 28,
AUTHORITY
AUTHORITY 2005
It is exercised
concurrently with the Cases Where Parental Authority May Be
parental authority of Revived:
It is exercised in 1. Adoption of child
the parents. The
case of death, 2. Appointment of general guardian
parents temporarily
absence, or 3. Judicial declaration of abandonment
relinquish parental
unsuitability of 4. Final judgment divesting parental authority
authority over the child
parents. 5. Judicial declaration of absence or incapacity
to the person with
special parental or person exercising parental authority
authority.
6. LIABILITY OF PARENTS FOR ACTS OF
CHILDREN
5. SUSPENSION/TERMINATION OF
PARENTAL AUTHORITY Liability Of Parents For Torts Committed
By Their Minor Children:
Grounds For Suspension Of Parental  Parents and other persons exercising
Authority: (CHOBA) parental authority shall be civilly liable for
1. Conviction of parent for crime with civil the injuries and damages caused by the
interdiction acts or omissions of their minors PROVIDED
2. Treats child with excessive harshness and the children are living in their company and
cruelty under their parental authority
3. Gives corrupting orders, counsel or example  This is subject to the appropriate defenses
4. Compels child to beg provided by law
5. Subjects to or allows him to be subjected to
acts of lasciviousness NOTE:
 Parental authority and responsibility are
 The suspension or deprivation may be inalienable and may not be transferred and
revoked and the parental authority revived renounced except in cases authorized by
in a case filed for the purpose or in the law
same proceeding if the court finds that the  Parents may exercise parental authority
cause therefore has ceased and will not be over their child’s property
repeated

Grounds For The Permanent Termination ===================


Of Parental Authority : ==============
1. Death of parents
2. Death of child TOPIC UNDER SYLLABUS
3. Emancipation of child N. Funerals (Arts. 305-310,CC)
4. Parents exercising parental authority has O. Surname (Arts 364-380, CC)
subjected the child or allowed him to be P. Absence (Arts. 381-396,CC)
subjected to sexual abuse Q. Civil Register (Arts. 407-413,CC)
 Lesbianism is not compelling reason to
deprive the mother of a child below seven ===================
years of age. To deprive the wife of custody, ==============
the husband must clearly establish that her
moral lapses have had an adverse effect on
N. FUNERAL
the welfare of the child or have distracted
the offending spouse from exercising proper
General Guidelines:
parental care. Writ of habeas corpus has no

CIVIL LAW REVIEWER Page 46 of 383


1.

Duty and right to make arrangement in funerals


in accordance with Art. 199 FC:
a. Spouse
b. Descendants in nearest degree
c. Ascendants in nearest degree
d. Brothers and sisters
2. The funeral shall be in keeping with the
social position of the deceased
3. The funeral shall be in accordance with the
expressed wishes of the deceased WIFE SURNAME TO BE USED
a. In the absence of expressed wishes, his a. First name and
religious beliefs or affiliation shall maiden name + her
determine husband’s surname
b. In case of doubt, the persons in Art. 199 b. First name + her
of FC shall decide husband’s surname
4. Any person who disrespects the dead or c. Her husband’s full
allows the same shall be liable for damages Husband
name, but prefixing a
is living
word indicating that
(Art.
O. SURNAME Valid she is his wife, such
370)
USE OF SURNAME marriag as “Mrs”
e d. Retain the use of her
SURNAME TO BE maiden name (use of
CHILD CONCERNED husband’s surname is
USED
Legitimate child Father’s surname not a duty but merely
Legitimated child Father’s surname an option of the wife)
Adopted child Adopter’s surname Husband
She can use the surname
1. Mother’s surname; is dead
of the husband as if he
or (Art.
were still living
2. Father’s name if 373)
they were Wife is
Illegitimate child She shall resume using
recognized by their the guilty
father in the record her maiden name
party
of birth or in an 1. Resume using her
authentic writing Marriag maiden name; or
Conceived prior to e is 2. Continue employing
the annulment of the Father’s surname annulle her husband’s surname
marriage Wife is
d UNLESS:
Conceived after the the
(Art.37 a. Court decrees
annulment of the Mother’s surname innocent
1) otherwise, or
marriage party
b. She or the former
husband is
 Since a legitimate child can ask for a married again to
change of name, an adopted child can do another person
the same. Continue using the name
and surname she was
 The interest of justice and of the child Legally separated employing prior to the
permits an illegitimate child to change his (Art.372) legal separation Laperal
name adopting the surname of his parent’s v. Republic,[6 SCRA
other spouse. Calderon vs. Republic, [19 357 (1962)]
SCRA 721] IDENTITY OF NAMES AND SURNAMES
Between Younger person is obliged to
persons (Art. use such additional name OR
374) surname as will avoid
confusion

CIVIL LAW REVIEWER Page 47 of 383


1. Son may use the word
“Junior”
2. Grandsons and other male
Between
descendants, shall either :
ascendants
a. Add a middle name
and
b. Add the mother’s
descendants
surname
(Art.
c. Add the Roman
375)
numerals II, III, and so
on

P. ABSENCE

Persons Who May Be Appointed By Way Of


Court Order As The Representative Of An
Absentee In Case Of Provisional Absence
Or As An Administrator
1. If no legal separation, the spouse present
2. If no spouse or if the spouse present is a
minor, any competent person
 The spouse who is appointed as
administratrix of the absentee spouse’s
property cannot alienate or encumber the
same, or that of the conjugal partnership,
without judicial authority.

When Administration Shall Cease


1. Absentee appears personally or by means
of an agent;
2. Death of the absentee is proved and his
estate or intestate heirs appear;
3. A third person appears, showing by a proper
document that he has acquired the
absentee's property by purchase or other
title
 The property shall be at the disposal of
those who may have a right thereto

CIVIL LAW REVIEWER Page 48 of 383


STAGES WHEN TO FILE WHO MAY FILE? Presumption of death Spouse
ORDINARY ABSENCE
Provisional Absence  4 years  person presumed dead for purposes
- A person disappears from
of remarriage of the spouse present
his domicile, whereabouts
 7 years  presumed dead for all purposes
are unknown and No statutory period a. Interested party
a. He did not b. Relative EXCEPT for those of succession
leave any agent; or c. Friend  10 years  person presumed dead for purposes
b.He left an agent but of opening succession
agent's power has EXCEPT if he disappeared after the age of 75, an
expired absence of 5 years is sufficient
Judicial Declaration of Without administrator a. EXTRAORDINARY ABSENCE
Absence - After 2 years having b. 1. If a person rode an airplane or sea vessel lost in
-Necessary for interested elapsed without any heirs the course of voyage, from the time of loss of the
persons to be able to news about the c. airplane or sea vessel
protect the interest of the absentee or since the heirs 2. If a person joined the armed forces who has
absentee last news d. taken part in war, from the time he is considered
With administrator may have over the missing in action
- After 5 years from time 3.
property of the absentee Danger of death under other circumstances,
of from time of disappearance
some right subordinated
disappearance to the condition of the
absentee's death 4 years  for all purposes including those of opening
succession
 2 years  for purposes of remarriage

CIVIL LAW REVIEWER Page 49 of 383


Q. CIVIL REGISTER 5. When the change is necessary to avoid
confusion (Sec. 4, R.A. 9048)
MATTERS RECORDED/ENTERED IN THE CIVIL  R.A. 9048 does not sanction a change of first
REGISTER: name on the ground of sex reassignment.
1. Acts, events and judicial decrees concerning Rather than avoiding confusion, changing the
the civil status of persons first name to make it compatible with the sex
2. Birth he transformed himself into through surgery
3. Marriage may only create grave complications in the civil
4. Death registry and the public interest. Silverio vs.
5. Legal separation Republic, G.R. No. 174689, Oct. 22, 2007
6. Annulment of marriage
7. Judgments declaring marriage void from the 6. When the request for change is a consequence
beginning of a change of status, such as when a natural
8. Legitimation child is acknowledged or legitimated
9. Adoption
10. Acknowledgement of natural children USURPATION OF NAME - implies some injury to
11. Naturalization the interests of the owner of the name. It consists
12. Loss of citizenship in the possibility of confusion of identity between
13. Recovery of citizenship the owner and the usurper.
14. Civil interdiction
15. Judicial determination ELEMENTS OF USURPATION OF NAME:
16. Voluntary emancipation of a minor 1. An actual use of another's name by the
17. Change of name defendant
2. Use is unauthorized
General Rule: Entries in the civil register may be 3. Use of another's name is to designate
changed or altered only upon a judicial order. personality or to identify a person

Exception: Clerical or typographical errors or REMEDIES AVAILABLE TO THE PERSON


change in the name or nickname can be changed WHOSE NAME HAS BEEN USURPED:
administratively through verified petition with the 1. Civil (insofar as private persons are concerned)
local office of the civil registrar. a. Injunction
b. Damages (actual and moral)
Who may file petition: Any person having direct 2. Criminal (when public affairs are prejudiced)
and personal interest in any act, event, order or
decree concerning the civil status of persons or WHEN USE OF ANOTHER'S NAME IS NOT
change of name ACTIONABLE:
Used as stage, screen, or pen name, provided:
PROCEDURAL REQUIREMENTS FOR A 1. Use of name is in good faith; and
PETITION FOR CHANGE OF NAME: 2. By using the name of another, no injury is
1. 3 years residency in the province where change caused to that person's right
is sought prior to the filing 3. When use is motivated by modesty, a desire to
2. Must not be filed within 30 days prior to an avoid unnecessary trouble, or other reason not
election prohibited by law or morals
3. Petition must be verified
 The law does not allow dropping of middle
PROPER AND REASONABLE CAUSES THAT MAY name from registered name unless there are
WARRANT THE GRANT OF A PETITION FOR justifiable reasons to do so. Mere convenience
CHANGE OF FIRST NAME/NICKNAME: is not justifiable. Middle names serve to identify
1. Petitioner’s true and official name is ridiculous; the maternal lineage filiation of a person as
2. Petitioner’s true and official name is tainted well as further distinguish him from others who
with dishonor may have the same given name and surname
3. Petitioner’s true and official name is extremely as he has.
difficult to write or pronounce
4. New first name or nickname has been
 An illegitimate child whose filiation is not
habitually and continuously used by the
recognized by the father bears only a given
petitioner and he has been publicly known by
name and his mother’s surname, and does not
the first names and nicknames in the
have a middle name, unless legitimated or
community
subsequently acknowledged by the father in a
public document or private handwritten
instrument. In Re: Petition for Change of 2. Change of first
legitimated
Name of Wang,[G.R. No. 159966, March name or nickname
30, 2005]
 If the correction is clerical: summary
proceeding
CHANGE OF ENTRIES IN CIVIL REGISTRY  If the rectification affects the civil status,
WITHOUT JUDICIAL WITH JUDICIAL citizenship or nationality of a party
AUTHORITY AUTHORITY (substantial): adversarial proceeding
Matters which may Change of surname
be made by the can only be done
concerned city or through a court
 Change of sex is not a mere clerical or
municipal registrar or proceeding typographical error. There is no special aw in
consul general (R.A. EXCEPT when the the Philippines governing sex reassignment and
9048): request for change is its effects. Silverio vs. Republic, [G.R. No.
1. Clerical or a consequence of a 174689, Oct. 22, 2007]
typographical error change of status,
 NOT nationality, such as when a NOTE: The new law, R.A. 9048, applies only to
natural child is clerical and typographical errors in entries of name
age, civil status 
acknowledged or and does not modify the rules mentioned above
needs court order
A. Within the commerce of man (or which
II. PROPERTY may be the objects of contracts or
===================== judicial transactions)
B. Outside the commerce of man
============== 4. Existence
TOPICS UNDER SYLLABUS A. Present property (res existents)
A. Classification of Property (Arts. 414- B. Future property (res futurae)
418, CC) NOTE: Both present and future
property may be the subject of sale but
1. Immovable Property
generally not the subject of donation.
2. Movable Property 5. Materiality or Immateriality
3. According to Ownership A. Tangible or corporeal
a. Public Dominion B. Intangible or incorporeal
b. Private Ownership 6. Dependence or Importance
A. Principal
===================== B. Accessory
============== 7. Capability of Substitution
A. Fungible – capable of substitution by
PROPERTY: An object or a right which is other things of the same quality and
appropriated or susceptible of appropriation by quantity
man, with capacity to satisfy human wants and B. Non-Fungible – incapable of such
needs. substitution, hence, the identical thing
must be given or returned
A. CLASSIFICATION OF PROPERTY 8. Nature or Definiteness
Requisites of Property: (USA) A. Generic – one referring to a group or
1. Utility for the satisfaction of some class
human wants B. Specific – one referring to a single,
 endows property with value susceptible of unique object
pecuniary estimation (e.g. food, shelter, 9. Whether in the Custody of the Court or
clothing, recreation) Free
2. Substantivity or individuality A. In “custodia legis” – in the custody of
 quality of having existence apart from the court
any other thing (e.g. blood, when B. “free” property
separated from the body)
3. Appropriability 1. IMMOVABLE PROPERTY
 susceptibility of being possessed by men
Juridical Classification of Immovable
 not susceptible of appropriation:
Properties: (NIDA)
I. Common things (res communes)
1. By nature – cannot be moved from place
 Exception: those that may be to place because of their nature (Art. 415
appropriated under certain par 1 & 8 NCC)
conditions in a limited way (e.g. A. land, buildings, roads and constructions
Electricity, oxygen) of all kinds adhered to soil
II. Due to physical impossibility (e.g.
 a structure which is merely
Sun)
superimposed on the soil may be
III. Due to legal impossibility (e.g.
considered movable.
Human body)
B. mines, quarries, and slag dumps, while
IV. Due to no ownership (e.g. wild
the matter thereof forms parts of the
animals) or abandonment by the
bed, and waters either running or
owner.
stagnant
Classification of Property
 Once a house is demolished, its character
1. Mobility and Non-mobility
A. Movable or personal property as an immovable ceases. Bicerra v.
B. Immovable or real property Teneza, [6 SCRA 649 (1962)]
2. Ownership
A. Public  A mortgage of land necessarily includes, in
B. Private the absence of stipulation of the
3. Alienability improvements thereon, buildings. Still a
building by itself may be mortgaged apart
from the land on which it has been built. Requisites: (OP)
Such would be a real estate mortgage for I. Placed by the owner of the or
the building would still be considered his agent
immovable property. Leung Yee v. Strong II. Intent to attach them
Machinery, [37 Phil. 644 (1981)] permanently to the land

 A valid real estate mortgage can be 3. By destination – movable placed on


constituted on the building erected on the immovable for the utility it gives to the
land belonging to another. Prudential activity carried thereon (Art. 415 par
Bank v. Panis, [153 SCRA 390 (1987)] 4,5,6,7,9)
A. Machinery, receptacles, instruments or
 The contracting parties may validly implements intended by owner of the
stipulate that a real property be considered tenement or his agent for an industry or
as personal. After agreeing, they are works which may be carried on in a
consequently estopped from claiming building & which tend directly to meet
otherwise. However, third persons acting in the needs of such works/industry
good faith are not affected by its stipulation  attachment or incorporation to the
characterizing the subject machinery as immovable is not essential
personal. Serg’s Products v. PCI Requisites: (COE)
Leasing, [328 SCRA 299 (2000)] I. industry or works must be
carried on inside the building or
2. By incorporation – essentially movables on the land
but attached to an immovable in a fixed II. placed by the owner of the
manner to be an integral part of it (Art. building or property or his agent
415 par 2,3,4,6) III. machines must be essential and
principal elements in carrying
A. Trees, plants & growing fruits – while out the industry
adhered to soil, immovable  does not include incidentals
 once cut or uprooted, they cease to (movables without which the
be immovables businesses can still continue or
Except: Uprooted Timber carry on their functions)

B. Everything attached to an immovable in  Equipment destined only to repair or


a fixed manner that it cannot be service a transportation business may not
separated without breaking the be deemed real property. Mindanao Bus
material or deterioration of the object v. City Assessor, [6 SCRA 197 (1962)]
 intent to attach permanently is
essential B. fertilizers – actually used on a piece of
 On temporary separation: 2 points land
of view: C. docks & floating structures – intended
I. May still be considered as by their nature and object to remain at
immovable – If there is intent to a fixed place on a river, lake or coast.
put them back. 4. By analogy/by law – contracts for public
II. Movable – because the material works, servitude & other real rights over
fact of incorporation is what immovable property (Art. 415 par 10)
determines its condition
2. MOVABLE PROPERTY
C. Statues, reliefs, painting or other Movable Property: (SIFTOS)
objects for use or ornamentation 1. Susceptible of appropriation that are not
Requisites: (OP) included in enumeration in immovables.
I. Placed by the owner of the Example−
immovable or his agent  ½ interest in the business is personal
II. Intent to attach them property. Involuntary Insolvency of
permanently to the tenements Strochechker v. Ramirez,[44 Phil
933 (1922)]
D. Animal houses, pigeon houses, 2. Immovable that are designated as movable
beehives, fish ponds, or breeding places by special provision of law. Examples−
of similar nature including the animals  Growing crops are considered
in these places immovable under Art. 415(2) but
personal property by Chattel Mortgage 3.
Law. Sibal v. Valdez, 50 Phil 512 ACCORDING TO OWNERSHIP
(1927) a. Public Dominion
 House built on leased land may be
treated insofar as the parties are Public Dominion – outside the commerce of men.
concerned as personal property and be  KINDS: (USD)
the object of a chattel mortgage. A. intended for public use– can be
Navarro v. Reyes,[9 SCRA 63 used by the public or everybody
(1963)] B. intended for specific public service
3. Forces of nature brought under control by of state, provinces, cities &
science. Examples− municipalities – can be used only by
 Electricity, gas, rays, heat, light, duly authorized persons, such as
oxygen, atomic energy, water power government buildings and vehicles
etc. C. for the development of national
 Electricity, the same as gas, is an wealth
article bought and sold like other  Characteristics:
personal property and is capable of A. Outside the commerce of men –
appropriation by another. United cannot be alienated or leased or be
States v. Carlos,[21 Phil. 364 the subject of any contract
(1946)] B. Cannot be acquired by private
4. Things which can be transported w/o individual or even municipalities
impairment of real property where they are through prescription
fixed C. Not subject to attachment &
5. Obligations which have for their object execution
movables or demandable sums (credits) D. Cannot be burdened by voluntary
 obligations and actions must be legally easement
E. Cannot be registered under the
demandable
Land Registration Law and be the
 demandable sums must be liquidated
subject of a Torrens Title
6. Shares of stocks of agricultural, commercial F. In general, can be used by
& industrial entities although they may everybody
have real estate NOTE: Fishponds are considered as part of public
dominion and cannot be acquired by private
Classification Of Movables: persons unless it is converted into patrimonial
1. According to nature property. However, fishponds may be leased by the
a. Consumable – cannot be utilized w/o government.
being consumed
 Properties which the government owns for
b. Non-consumable
fundamental purposes for rendering
2. According to intention of the
government services are properties of public
parties/purpose (whether it can be
dominion. They are held by the local
substituted by other things of same kind,
governments for public service, but at the
quality and quantity)
same time, they can be removed by the State
a. Fungible (res fungibles) – only the
from the LGUs without having to pay just
equivalent is returned
compensation because the LGUs are merely
b. Non-fungible (res nec fungibles) –
acting as agents. (City of Zamboanga Del
identical thing is returned, do not admit
Norte v. Province of Zamboanga Del
of substitution
Norte)
Test To Determine Whether Property Is Real
Or Personal
1. Whether the property can be transported or
carried from place to place (Rule of
b. Private Ownership
Description) KINDS:
2. Whether such change of location can be Patrimonial property - the property of the State
made without injuring the immovable to owned by it in its private or proprietary capacity,
which the object may be attached (Rule of the property is not intended for public use, or for
Description) some public service, or for the development of the
3. Whether the object does not fall within any national wealth.
of the cases enumerated in Art. 415 (Rule G.
of Exclusion)
- Exist for attaining economic ends of cannot withdraw a public street from public
state use, unless it has been granted such authority
- Property of public dominion when no by law. Dacanay v. Asistio Jr.,[208 SCRA
longer intended for public use/service – 404 (1992)]
declared patrimonial (Article 422
NCC)  The power to vacate or withdraw a street or
- Subject to prescription alley from public use is discretionary and such
- May be an object of ordinary contract will not be interfered with by the courts. The
- Example: property acquired in Charter of Cebu City gives such power to the
execution and tax sales, incomes or City Council. Such withdrawn portion thus
rents of the State becomes patrimonial property which can be the
H. Property for LGUs object of an ordinary contract. Cebu Oxygen
- Property for public use v. Bercilles, [66 SCRA 481 (1975)]
- roads, streets, squares, fountains,
public waters, promenades and public  A property continues to be part of the
works for public service paid for by the public domain until there is a formal
LGUs declaration on the part of the government
- all other properties possessed by LGUs to withdraw it from being such. An
without prejudice to special laws are abandonment of the intention to use the
considered patrimonial property for public service and to make it
NOTE: Patrimonial properties of LGUs cannot patrimonial property must be definite. It cannot
be removed by the State without paying just be inferred from the non-use alone. Laurel v.
compensation. Garcia, [187 SCRA 797 (1990)]
I. Property of Private Ownership - all
properties belonging to private persons and ==============================
those belonging to the State and any of its ======================
political subdivisions which are patrimonial TOPICS UNDER SYLLABUS
in nature
B. Ownership (Arts. 427-439, CC)
Conversion Of Property Of Public Dominion 1. Rights of Ownership/Limitations
To Patrimonial Property 2. Doctrines of Incomplete
1. Property of the National Government Privilege/Self Help
 formal declaration by the executive or 3. Presumption of Ownership
legislative department that the property 4. Rule of Hidden Treasure
is no longer needed for public use or for ==========================
public service
2. Property of political subdivisions
==================
OWNERSHIP -is the independent right of a person
 must be authorized by law
to the exclusive enjoyment and control of a thing
NOTE: Sacred and religious objects are outside the including its disposition and recovery subject only
commerce of man. They are neither public nor to the restrictions or limitations established by law
private party. and the rights of others.
Political subdivisions cannot register as their own TITLE -is that which constitutes a just cause of
any part of the public domain, UNLESS: exclusive possession or which is the foundation of
1. grant has been made ownership of property.
2. possession has been enjoyed during the period
necessary to establish a presumption of Kinds Of Ownership:
ownership 1. FULL OWNERSHIP (dominium or jus in re
propia) – includes all the rights of the owner
Aliens have no right to acquire any public or 2. NAKED OWNERSHIP (nuda proprietas) –
private agricultural, commercial, or residential where the right to the use and the fruits
lands except by hereditary succession. has been denied
 Naked ownership + usufruct = Full
Private individual has superior right over the
ownership
property against the state.
3. SOLE OWNERSHIP – ownership is vested
only in one person
 The right of the public to use the city
streets may not be bargained away
through contract. Rule: Local government
4. CO-OWNERSHIP/TENANCY IN COMMON
– ownership is vested in two or more
owners; unity of the property, plurality of
the subjects

1. RIGHTS OF OWNERSHIP/LIMITATIONS

Seven Rights Of Ownership:


1. JUS ABUTENDI – right to consume,
transform or abuse by its use
2. JUS ACCESIONES – right to fruits and
accessories
3. JUS DISPONENDI – right to dispose,
including the right not to dispose, or to
alienate
4. JUS FRUENDI – right to fruits
5. JUS POSSIDENDI – right to possess
 does not necessarily include the right to
use (e.g. contract of deposit)
6. JUS UTENDI – right to use and enjoy
 Includes the right to transform and
exclude any person from the enjoyment
and disposal thereof
 Limitation: use in such a manner as not
to injure the rights of a third person
7. JUS VINDICANDI – right to vindicate or
recover

Limitations on the Right of Ownership:


(CLOGS)
1. those arising from conflicts of private
rights (e.g. those which take place in
accession continua)
2. those imposed by law (e.g. Legal
easement)
3. those imposed by the owner himself (e.g.
Voluntary easement, pledge, lease)
4. those imposed by the grantor of the
property on the grantee
A. by contract (e.g. donation)
B. by last will
5. those imposed in general by the State
A. police power
B. power of taxation
C. power of eminent domain

Right of Ownership not absolute


 The welfare of the people is the
supreme law of the land. Salus populi
suprema est lex.
 Use your property so as not to impair
the rights of other. Sic utere tuo ut
alienum non laedas.
ACTIONS FOR POSSESSION:
MOVABLES – Replevin/ Manual Delivery (return of a movable)
 both principal and provisional remedy
 Plaintiff shall state in the affidavit that he is the owner of the property claimed,
particularly describing it or that he is entitled to possession, and that it is wrongfully
detained by the other.
 PERIOD: 4 or 8 years from the time the possession thereof is lost, in accordance with Art.
1132
 machinery and equipment used for an industry and indispensable for the carrying on of
such industry, cannot be the subject of replevin, because they are considered real
properties.
 property validly deposited in custodia legis cannot be the subject of a replevin suit

IMMOVABLES
ACTION CAUSE GROUND ISSUE PERIOD COURT PROCEEDIN
GS
Forcible GROUND: De facto Within 1 year MTC Summary
entry deprivation of or physical from (1) proceeding
(detenci possession through: possession unlawful
on) force, intimidation, deprivation, or
strategy, threat, or from (2)
stealth (FISTS) discovery, in
Accion case of stealth
Interdic or strategy
tal Unlawfu Lessor/person having Physical Within 1 year MTC Summary
l legal right over possession from unlawful proceeding
detainer property deprived of deprivation:
(desahui such when the date of last
co) lessee/person demand or last
withholding property letter of
refuses to surrender demand
possession of
property after
expiration of
lease/right to hold
property
Accion Publiciana Better right of Possession Within a period Depends
possession DE FACTO of 10 years, on
otherwise the ASSESSE
real right of D VALUE
possession is
lost
Accion Recovery of OWNERSH 30 years Depends Civil
Reinvindicatoria dominion of property IP on
based on ownership ASSESSE
D VALUE

I. Injunction
- Generally not available as a remedy.
- When injunction is allowed:
A. Actions for forcible entry
B. Ejectment
- possessor admittedly the owner or in possession in concept of owner
- possessor clearly not entitled to property
- extraordinary cases – where urgency, expediency and necessity so required
II. Writ of possession
- When proper:
A. Land registration cases
B. Foreclosure, judicial or extra-judicial, of mortgage – provided that the mortgagor has
possession and no third party has intervened
C. Execution sales
D. Eminent domain proceedings
E. Ejectment
2.
DOCTRINE OF STATE OF NECESSITY f. Evidence required: preponderance of
evidence.
STATE OF NECESSITY—is the principle which
authorizes the destruction of a property which is b) Eminent Domain
lesser in value to avert the danger poised to
another property the value of which is much EMINENT DOMAIN—is the superior right of the
greater. State to acquire private property whether
registered or not for public use upon payment of
REQUISITES OF STATE NECESSITY: just compensation. It is one of the limitations of
1. Interference necessary to avert an imminent the right of ownership.
danger a. Absolute necessity for expropriation is not
2. Damage to another much greater than damage required. It is enough that reasonable
to property necessity for public use is intended.
 COMPARATIVE DANGE— Danger must be b. Just compensation is equivalent to the value of
the land. (Market value plus consequential
greater than damage to property. Consider damages minus the consequential benefits)
the economic and sentimental value of the c. The market value should be determined at the
property. time of the filing of the complaint or at the
 MEASURE OF RATIONAL NECESSITY— time of taking of the property, whichever
the law does not require a person acting in transpires first.
a state of necessity to be free from d. The ownership over the property taken is
transferred only when the just compensation
negligence or mistake. He must be given
with proper interest had been made
the benefit of reasonable doubt as to
whether he employed rational means to Elements for Taking in Eminent Domain:
avert the threatened injury. (CPJD)
 The owner of the sacrificial property is 1. Taking done by Competent authority
obliged to tolerate the act of destruction a. Executive branch
but subject to his reimbursement by all b. Municipal corporations, other government
entities, and public service corporations.
those who benefited.
2. For Public use
 In case of conflict between the exercise of a. That only a few actually benefit does not
the right of self-help and a proper and licit diminish its public use
state of necessity, the latter prevails 3. Owner paid Just compensation
because there is no unlawful aggression a. Value at the time of the taking
when a person or group of persons acts 4. Due process of law observed
pursuant to the right given in a state of
Computation for Just Compensation under
necessity.
Agrarian Reform
3. PRESUMPTION OF OWNERSHIP LBP v. Cruz, [G.R. No. 175175, Sept. 29,
2008]
a) Requisites to Raise the Disputable
Presumption of Ownership: How will the computation of just computation
applied? Section 17 of R.A. No. 6657: In
1. Actual possession of the property determining just compensation, the cost of
2. Possession is under the claim of ownership acquisition of the land, the current value of like
a. Possessor of property has the presumption properties, its nature, actual use and income, the
of title in his favor sworn valuation by the owner, the tax declarations,
b. Judicial process contemplated for recovery and the assessment made by government
of property: ejectment suit or assessors, shall be considered. The social and
reinvindicatory action economic benefits contributed by the farmers and
c. The person claiming better right must the farmworkers and by government to the
prove: property as well as the non-payment of taxes or
a. That he has better title to the loans secured from any government financing
property institution on the said land shall be considered as
b. Identity of the property additional factors to determine its valuation.
d. One must depend on strength of his title
and not the weakness of the defense
e. Action is founded on positive rights
Formula by the DAR in using Section 17 POLICE POWER— is another limitation of the right
of RA 6657 (DAR A.O. No. 5, series of of ownership wherein property may be interfered
1998): with, even destroyed, if so demanded by the
LV = Land Value welfare of the community. The owner of the
CNI = Capitalized Net Income property is not entitled to compensation
CS = Comparable Sales
MV = Market Value per declaration Requisites of Police Power: (PRO)
LV = (CNI x 0.6) + (CS x 0.3) + (MV x 1. Public interest
0.1) 2. Reasonably necessary means for the
accomplishment of a purpose
Procedure of Expropriation under Agrarian 3. It is not unduly Oppressive upon individuals
Reform: a. No taking of property involved
LBP is an agency created primarily to provide b. No financial compensation
financial support in all phases of agrarian reform
pursuant to Section 74 of Republic Act (RA) No. SURFACE RIGHTS OF A LANDOWNER— right to
3844 and Section 64 of RA No. 6657. Once an surface & everything under it only as far as
expropriation proceeding for the acquisition of necessary for his practical interest (Benefit or
private agricultural lands is commenced by the Enjoyment)
DAR, the indispensable role of LBP begins. No 1. Rights subject to:
judicial determination of just compensation allowed a. Existing servitudes or easements
without LBP’s participation. Tabuena v. LBP, [G.R. b. Special laws
No. 180557, Sept. 26, 2008]. c. Local ordinances
d. Reasonable requirements of aerial
Abandonment of Property Expropriated: navigation
e. Rights of third persons
MCIAA v. Tudtud, [G.R. No. 174012, Nov. 14,
2008] 4. HIDDEN TREASURE

When a private land is expropriated for public use Concept of Treasure: (HUM)
and subsequently, the public use was abandoned, 1. Hidden and unknown
it returns to its owner unless there is a statutory 2. Unknown owner
provision that prohibits it. 3. Consists of Money, jewels, or other precious
objects. (not raw materials)
MCIAA has the obligation to return to X the land. X
has the obligation to return: Right to Hidden Treasure:
1. What he received as just compensation with 1. Finder is the same as owner of the property –
interest computed from default. treasure totally belongs to him.
2. Necessary expenses incurred by MCIAA in 2. Finder is third person and he discovered it by
sustaining lot and monetary value for services chance – finder is entitled to one half of the
in managing insofar as X was benefitted value of the treasure.
services in managing insofar as X was 3. Finder is an intruder – he is not entitled to
benefitted anything
4. Finder was given express permission by the
Following Article 1187 of the Civil Code, the MCIAA owner – subject to the contract of service and
may keep whatever income or fruits it may have principle of unjust enrichment
obtained from Lot No. 988, and X need not account
for the interests that the amounts they received as
just compensation may have earned in the
meantime.

Respondents, as creditors, do not have to settle as


part of the process of restitution the appreciation in
value of Lot 988 which is a natural consequence of
nature and time. x x x,"

c) Police Power
BASIS ACCION

REPLEVIN FORCIBLE ENTRY UNLAWFUL ACCION REINVINDICATORIA


DETAINER PUBLICIANA
Action or provisional remedy Summary action to Action brought when It is the Action to recover
where the complainant prays recover material or possession by a preliminary ownership of real
for the recovery of the physical possession of landlord, vendor or action to recover property
possession of the personal real property when a vendee or other a better right to
Definitio property person originally in person of any land or possess
n possession was deprived building is being
* NOT APPLICABLE TO thereof by (FISTS) unlawfully withheld
(a) Movables distrained or Force, after the termination
taken for a tax assessment or Intimidation, Strategy, or expiration of the
fine pursuant to law Threat, or right to hold
(b) Those under a writ of Stealth possession, by virtue
execution or preliminary of a contract, express
attachment or implied
(c) Those under custodia legis
Where to MTC or RTC depending on the MTC MTC RTC RTC
file amount of money involved
Issue Recovery of possession of Material or physical Material or physical Better right of Ownership of real
involved personal property possession of real possession of real possession of property
property property real property.
Possession de facto Possession de facto Possession de
jure
Action In Personam Quasi in Rem Quasi in Rem Quasi in Rem Quasi in Rem
Prescripti 1 year from 1 year from the time 10 years 10 or 30 years
on dispossession the possession depending on
FIT – from dispossession became unlawful – whether it’s ordinary
SS – from discovery last date of demand or extraordinary
or letter of demand prescription
Others Steps:  May be brought  If there’s a fixed 2 kinds:  Accion
i. Complaint is filed at against the owner in period – 1 year from a) Possession not reinvindicatoria
commencement or at some cases such as the expiration of the through FISTS can be filed
any time before lease lease - can be filed simultaneously
answer of other party Immediately with FE
 Complaint must  If the reason is non-
ii. Complaint should
state FISTS or else it payment of rent or  Judgment of
allege OWTA (owner, b) 1 year period
wrongfully taken, would just be an non-fulfillment of for ownership usually
taken against law) accion publiciana the conditions of FE or UD has includes the right
iii. Pay bond double the which should be filed the lease – 1 year Elapsed of possession
amount of property with the RTC from demand to

CIVIL LAW REVIEWER Page 39 of 383


iv.  Should
remember
Sheriff takes property vacate Article 434. In an
v. Doors broken if  Complaint filed 5 action to recover
necessary days after ownership, the
demand property must be
Defendant’s remedy: (buildings) or 15 identified, and the
1. File a bond double the days (land plaintiff must rely
amount, and on the strength of
 Refers to any kind
2. Give copy to plaintiff his title and not
of land
on the weakness
Stranger’s remedy – File a 3rd  It should be
of the defendant’s
party claim alleged that the claim
right to possess
had been
terminated and
that the
continued
possession was
unlawful
 Not the remedy if
what is sought is
specific
performance
 Demand
Necessary - if there
is a breach
Not necessary – if the
fixed period just
expires

CIVIL LAW REVIEWER Page 40 of 383


================================ 2.
Usufruct
TOPICS UNDER THE SYLLABUS
3. Lease of rural lands
C. Accessions 4. Pledge
1. Accession Discreta 5. Antichresis
a. Natural Fruits
b. Industrial Fruits 2. ACCESSION CONTINUA — the extension of
c. Civil Fruits the right of ownership of a person to that
2. Accession Continua which is incorporated or attached to a thing
which belongs to such person. It may take
a.1 Accession Industrial place:
i. Builder/ Planter/ Sower a. With respect to real property
(BPS) in Good Faith a) accession industrial
ii. BPS in Bad Faith b) accession natural
iii. No Claim of Ownership b. With respect to personal property
a.2 Accession Natural i. adjunction or conjunction
a.3 For Personal Property ii. commixtion or confusion
iii. specification
i. Adjucntion/ Conjunction
ii. Mixture a.1 Accession Industrial
iii. Specification
================================ PRINCIPLES:
C. ACCESSION 1. Accessory follows the principal.
2. The incorporation or union must be intimate
ACCESSION— is the right of the owner of a that removal or separation cannot be
thing, real or personal, to become the owner of effected without substantial injury to either or
everything which is produced thereby, or which is both.
incorporated or attached thereto, either naturally 3. Good faith exonerates a person from punitive
or artificially. liability but bad faith may give rise to dire
consequences.
NOTE: It is NOT one of the modes of acquiring 4. Bad faith of one party neutralizes the bad
ownership enumerated in Article 712. faith of the other.
5. No one should enrich himself at the expense
2 KINDS OF ACCESSION: of another.

1. ACCESSION DISCRETA— the extension of OBLIGATIONS:


the right of ownership of a person to the i. Gathered Fruits
products of a thing which belongs to such
person. It takes place with respect to: PLANTER OWNER
a. NATURAL FRUITS – spontaneous Planter Keeps fruits No need to
products of the soil and the young of in Good reimburse the
animals. Faith planter of expenses
b. INDUSTRIAL FRUITS – those produced (GF) since he retains the
by lands of any kind through cultivation fruits
or labor. Planter Reimbursed Gets fruits, pay
c. CIVIL FRUITS – rents of buildings, the in Bad for planter necessary
price of lease of lands and other property Faith expenses expenses
and the amount of perpetual or life (BF) for
annuities or other similar income. production,
gathering,
GENERAL RULE: All fruits belong to the owner and
of a thing. preservation
(necessary
EXCEPTIONS: (PULPA) expenses)
1. Possession in good faith by another

CIVIL LAW REVIEWER Page 41 of


383
Exception: removal
ii. Standing Crops OM = OM exercises - provided no
BF the right of injury to the work
PLANTER OWNER LO = BF removal constructed or
Planter Reimbursed Owns fruits (as if destruction of the
in GF for expenses provided he pays both in plantings, etc. will
for planter expenses GF) be caused
production, for production, LO = BF Becomes the 1. Entitled to the
gathering, gathering, and OM = owner of the ABSOLUTE right of
and preservation. GF materials but removal and
preservation (forced co- he must pay: damages (whether
ownership) 1. Value or not substantial
Planter Loses Owns fruits 2. Damages injury is caused)
in BF everything. 2. Entitled to
No right to reimbursement and
reimburseme damages (in case
nt he chooses not to
remove)
iii. Re: Offsprng of Animals. When the
male and female animals belong to PLANTING V. SOWING
different owners, under the Partidas, the
owner of the female was considered also 1. PLANTING— pertains to a perennial fact.
the owner of the young, unless there is a Something that will grow and produce fruits
contrary custom or speculation. The legal year after year without having to be
presumption, in the absence of proof to replanted.
the contrary, is that the calf, as well as its 2. SOWING— pertains to an annual crop.
mother belong to the owner of the latter, Something that will grow and produce fruits
by the right of accretion. US v. and then you plant again before it will
Caballero, [25 Phil 356] This is also in produce fruits again.
accord with the maxim “pratus sequitor
ventrem” (the offspring follows the dam ESSENCE OF DISTINGUISHMENT
or mother). In planting: planter may be required to buy
the land.
Right of Accession with Respect to In sowing: sower may be required to pay
Immovables rents.

Two disputable presumptions as to


improvements on land:
1. Works made by the owner
2. Works made at the owner’s expense

WHERE LAND AND MATERIALS BELONG TO


DIFFERENT OWNERS
Land Owner Owner of
(LO) Materials (OM)
OM = Becomes the 1. Entitled to
GF owner of the reimbursement
LO = materials but - provided he does
GF; he must pay for not remove them
their value. 2. Entitled to
Or

CIVIL LAW REVIEWER Page 42 of


383
WHERE A PERSON BUILDS (IN GOOD OR IN THE LAND OF ANOTHER
BAD FAITH) ON

LAND OWNER (LO) BUILDER


LO = GF OPTIONS: 1. Right to indemnification
Builder= GF; 1. Appropriate a. Necessary expenses, w/ right of retention
improvements as his own until reimbursed
Or after paying for indemnity b. Useful expenses, w/ right of retention
2. Compel the builder to buy 2. Right of removal - if the thing suffers no
LO = BF the land where the injury, and if his successor in the possession
Builder = BF building has been built does not prefer to refund the amount
Exception: expended.
(as if both in Value of land > Value of improvements
GF)  rent to be paid

If builder fails to pay the rent:


- no right of retention
- LO entitled to removal of
improvement
LO = GF OPTIONS: 1. Loses what is built, planted, or sown without
Builder= BF 1. Appropriate the improvements right to indemnity
- must pay for: 2. Liability for damages
- a. necessary expenses for the 3. Entitled to reimbursement for the necessary
preservation of the land expenses of preservation of land
- b. damages
- no need to pay for its value or other
expenses
2. right to demolish or removal +
damages
- at the builder’s expense
3. compel the builder or planter to pay
the price of the land, and the sower the
proper rent + damages
- whether or not the value of the land
is considerably more than the value of
the house

- may enforce payment thru an


General Rule: LO has no right of removal or ordinary action for the recovery of a
demolition. money debt (levy and execution)

Exception: Option of right of removal is EXCEPTIONS to the Rule on Builders, etc.


compulsory on the part of the LO when builder fails (HSBC)
to pay. 1. Builder, etc. does not claim ownership over
the land but possesses it as mere Holder,
REMEDIES: agent, usufructuary or tenant; he knows
1. Demolish what has been built, that the land is not his.
sown, or planted
2. Consider price of land as an
ordinary money debt of the builder

CIVIL LAW REVIEWER Page 43 of


383
EXCEPTION TO THE EXCEPTION: Tenant whose RULES WHEN THREE PARTIES ARE
lease is about to expire, but still sows, not knowing INVOLVED:
that the crops will no longer belong to him
Parties:
2. A person constructs a building on his own 1. Land owner (LO)
land, and then Sells the land but not the 2. Builder, planter, sower (builder)
building to another 3. Owner of materials (OM)
a. no question of good faith or bad
faith on the part of the builder  Rights of LO and Builder  same as set
b. can be compelled to remove the forth in the table
building  Rights of OM
c. new owner will not be required to a. Bad faith
pay any indemnity for the building
i. Loses all rights to be indemnified
3. Builder is a Belligerent occupant ii. Can be liable for consequential
4. Builder, etc. is a Co-owner damages (as when the materials are of
a. even if later on, during the partition, an inferior quality)
the portion of land used is awarded b. Good faith
to another co-owner; i. Entitled to reimbursement
ii.In case of insolvency on the part of the
 For Art. 448 of the NCC to apply, the builder LO is subsidiarily liable, if he
construction must be of a permanent makes use of the materials.
character, attached to the soil with an idea
of perpetuity. It is of a transitory character RULE: OM bad faith, Builder bad faith, LO
or is transferable, there is no accession, good faith
and the builder must remove the 1. Between OM and Builder, good faith must
construction. Alviola v. CA, [G.R. govern.  Builder must reimburse OM,
117642, April 12, 1998]
but in case Builder cannot pay, LO will not
be subsidiarily liable because as to him,
RULES WHEN LANDOWNER SELLS LAND OM is in bad faith. If the builder pays, he
TO A 3RD PERSON WHO IS IN BAD FAITH cannot ask reimbursement from LO
1. Builder must go against him. because as to LO, builder is in bad faith
2. BUT when the 3rd person paid the landowner: 2. LO  Can ask damages from BOTH; has the
a. Builder may still file a case against him choice to:
b. 3rd person may file a 3rd party complaint
against landowner a. Appropriate what has been built as his
own
i. Without payment of any indemnity
 A promised to donate a property to B. B for useful or necessary expenses for
the building
constructed his house thereon before the
ii. With indemnity for the necessary
donation. If the property was not donated to
expenses for the preservation of the
him, can B be considered a possessor in good
land
faith? Mere promise to donate the property to
b. Demand the demolition at builder’s
B cannot convert him into a builder in good
expense
faith. At the time the improvement was built,
c. Compel builder to pay the price of the
such promise was not yet fulfilled, but a mere
land
expectancy of ownership that may or may
i. Whether the land is considerably
not be realized. If at all, B is a mere
more valuable than the building or
possessor by tolerance. A person whose
not.
occupation of a realty is by tolerance of its
owners are not possessors in good faith.
Hence, he is not entitled to the value of the  A lessee cannot be a builder in good faith.
improvements built thereon. Verona Pada- He is estopped to deny his landlord’s title,
Kilario v. CA, [G.R. No. 134329, January or to assert a better title not only in
19, 2000] himself, but also in some third person while

CIVIL LAW REVIEWER Page 44 of


383
he remains in possession of the leased owner of the land (not the court) Balatan
premises and until he surrenders v. CA, [304 SCRA 34 (1999)]
possession to the landlord. Munar v. CA,
[230 SCRA 372]; Frederico Geminiano,  Improvements made prior to the annotation
et al. v. CA, et al., [G.R. No. 120303, of the notice of lis pendens are deemed to
July 24, 1996] have been made in good faith. After such
annotation, P can no longer invoke the
 Estoppel applies even if the lessor had no rights of a builder in good faith. Should E
title at the time. The relation of lessor and opt to appropriate the improvements made
lessee was created and may be asserted by P, it should only be made to pay for
not only by the original lessor, but also by those improvements at the time good faith
those who succeed to his title. As lessees, existed to be pegged at its current market
they knew that their occupation of the value. Carrascoso v. CA, [G.R. No.
premises would continue only for the life of 123672, December 14, 2005]
the lease. They cannot be considered as
possessors nor builders in good faith.
Racaza v. Susan Realty, Inc., [18 SCRA
1172]; Vda. De Bacaling v. Laguna, [54
SCRA 243]; Santos v. CA, [221 SCRA
42]

 Even if the lessor promised to sell, it would


not make the lessee possessor or builder in
good faith so as to be covered by the
provisions of Art. 448 of the NCC, if he
improves the land. The latter cannot raise
the mere expectancy of ownership of the
land because the alleged promise to sell
was not fulfilled nor its existence even
proven. (Jurado)

 The owner of the land on which a building


has been built in good faith by another has
the option to buy the building or sell his
land to the builder, he cannot refuse to
exercise either option. Sarmiento v.
Agana, [129 SCRA 122 (1984)]

 Owner of the land on which improvement


was built by another in good faith is entitled
to removal of improvement only after
landowner chose to sell the land and the
builder refused to pay for the same. Where
the land’s value is greater than the
improvement, the landowner cannot
compel the builder to buy the land. A
“forced lease” is then created and the court
shall fix the terms thereof in case the
parties disagree thereon. Depra v.
Dumlao, [136 SCRA 475 (1985)]

 The right to choose between appropriating


the improvement or selling the land on
which the improvement of the builder,
planter or sower stands, is given to the

CIVIL LAW REVIEWER Page 45 of


383
ACCESSION

Accession Accession
Discreta Continua

Natural Industrial Civil Real Personal


Fruits Fruits Fruits

rents of buildings
price of leases of
land & Accession Accession Adjunction/ Specification Mixed
Spontaneous Industrial Natural Conjunction
products of the other property
soil, amount of
Young and other perpetual or life
products of annuities or
Building Alluvium commixtion
animals other similar (ISTEP)
Planting Avulsion confusion
income Inclusion or
Sowing Change of course
engraftment
of rivers
Formation of
Soldadura or
soldering
islands
Tejido or weaving
Escritura or writing
Pintura or Painting
Accession Natural AVULSION - accretion which takes place when
the current of a river, creek, or torrent
i. Alluvium segregates from an estate on its bank a known
portion and transfers it to another estate, in
ALLUVION - the accretion which the banks of which case, the owner of the estate to which the
rivers gradually receive from the effects of the segregated portion belonged, retain the
current of the waters and which belong to the ownership thereof.
owners of lands adjoining the said banks.
ALLUVIUM vs. AVULSION
ACCRETION - act or process by which a riparian ALLUVIUM AVULSION
land gradually and imperceptively receives Deposit of soil is Deposit of soil is sudden
addition made by the water to which the land is gradual and or abrupt.
contiguous. imperceptible.
Soil cannot be Soil is identifiable and
ESSENTIAL ELEMENTS: identified. verifiable.
1. Deposit or accumulation of soil or sediment Deposit of soil belongs Deposit of soil belongs to
must be gradual and imperceptible. to the owner of the the owner from whose
2. Accretion results from the effects or action of property to which it is property it was detached.
the current of the waters of the river. attached.
3. The land where accretion takes place must be
adjacent to the bank of a river. ESSENTIAL ELEMENTS:
1. Segregation and transfer must be caused by
 Registration under the Torrens System the Current of a river, creek or torrent.
does not protect the riparian owner 2. Segregation and transfer must be Sudden or
against the diminution of the area of his abrupt.
registered land through gradual changes 3. The portion of land transported must be
in the course of an adjoining stream. Known or identifiable.
Viajar v. CA, [168 SCRA 405 (1988)]
NOTE: The owner should remove the transferred
 Failure to register the acquired alluvial portion within two years; otherwise, it
deposit by accretion for 50 years becomes permanently attached.
subjected said accretion to acquisition
through prescription by third persons. Uprooted Trees
Reynante v. CA, [207 SCRA 794 1. Trees uprooted and carried away by the
(1992)] current of the waters
a. Owners do not claim them w/in
 The rules on alluvion do not apply to 6mos  Belong to the owner of the
man-made or artificial accretions to lands land upon which they may be cast
that adjoin canals or esteros or artificial b. Owners claim them  owners pay
drainage system. Ronquillo v. CA, [195 the expenses incurred in gathering
SCRA 433 (1991)] them or putting them in a safe
place
 Law of Waters: “ART. 4. Lands added to
the shores by accretions and alluvium iii. Change of Riverbed
deposits caused by the action of the sea,
form part of the public domain. When Requisites:
they are no longer washed by the waters 1. There must be a natural change in the course
of the sea, and are not necessary for the of the waters of the river.
purposes of public utility, or for the 2. The change must be abrupt or sudden.
establishment of special industries, or for
the coastguard service, the Government Right of owner of land occupied by new
shall declare them to be the property of river course:
the owners of the estates adjacent 1. Right to old bed ipso facto in proportion to
thereto and as an increment thereof.” area lost
Lanzar v. Dir. Of Lands, [78 SCRA 2. Owner of adjoining land to old bed: right to
152] acquire the same by paying its value – Value
not to exceed the value of area occupied by
ii. Avulsion new bed
New River Banks b. Indemnifies the owner of the
1. New river banks created  public dominion accessories for the values thereof.
2. New river bed may itself be abandoned, due
to natural or artificial causes authorized by Test To Determine Principal:
law. 1. Rule of importance and purpose
a. owners will get back this previous 2. Greater value - If they are of unequal value
property if the course of the river reverts 3. Greater volume - If they are of equal value
back to its original place 4. Greater merits

iv. Formation of Islands When Separation Allowed:


1. Separation without injury
ISLAND BELONGS TO THE STATE: 2. Separation with injury – accessory is much
1. On seas within the jurisdiction of the more precious than the principal; the owner
Philippines of the former may demand its separation
2. on lakes even though the principal may suffer injury.
3. on navigable or floatable rivers 3. Owner of principal in bad faith

Islands formed in Non-navigable or Non-


floatable Rivers: RULES AS TO OWNERSHIP
1. Island  to the owners of the margins or OWNER OF OWNER OF
banks of the river nearest to each of them. PRINCIPAL ACCESSORY (OA)
2. If in the MIDDLE of the river  divided (OP)
longitudinally in halves OP = Acquires the May demand
GF accessory reparation:
a.3 For Personal Property OA = - indemnifies a. If no injury will be
GF the former caused
i. Adjunction/ Conjunction owner for its b. If value of
Or value accessory is greater
ADJUNCTION OR CONJUNCTION — Is a process than principal -
whereby two movable things owned by different OP = even if damages
persons are joined together without bad faith, in BF will be caused to
such a way that they form a single object. OA = principal (expenses
GF is to the one who
Requisites: caused the
1. The two things conjunction)
belong to different owners. OP 1. Owns the 1. Loses the thing
2. They form a =GF accessory incorporated
single object. OA = 2. Right to
BF
2. Indemnify the
3. They are damages
OP for the damages
inseparable; that their separation would
OP may have
impair their nature or result in substantial
suffered
injury to either component.
OP = 1. Pay OA Right to choose
CLASSES OF ADJUNCTION: (ISTEP) BF value of between
1. Inclusion (engraftment) OA = accessory or 1. OP paying him
i.e. setting a precious stone on a golden GF 2. Principal its value or
ring and accessory 2. That the thing
2. Soldadura (soldering) be separated belonging to him be
i.e. joining a piece of metal to another PLUS separated even
metal Liability for though it be
a. Feruminatio – same metal damages necessary to
b. Plumbatura – different metals destroy the
principal thing
3. Tejido (weaving)
4. Escritura (writing) ii. Mixture
5. Pintura (painting)
a. Owner of the principal: MIXTURE— takes place when two or more things
a. By law becomes the owner of the belonging to different owners are mixed or
resulting object combined to such extent that the components
lose their identity.
KINDS: principal results
1. COMMIXTION – mixture of solid things The things May either The new object
2. CONFUSION – mixture of liquid things joined retain retain or retains or
their nature lose preserves the
RULES: respective nature of the
1. Mixture by the will of the owners natures original object
a. Rights governed by stipulations
b. Without stipulation: each acquires a right
or interest in proportion to the value of
his material ================================
2. Mixture caused by an owner in GF or by TOPICS UNDER THE SYLLABUS
chance D. Quieting Title
a. Each share shall still be in proportion to ================================
the value of their thing
3. Mixture caused by owner in BF QUIETING OF TITLE— is a remedy or
a. The actor forfeits his thing proceeding which has for its purpose an
b. Liable for damages adjudication that a claim of title to realty or an
interest thereon, adverse to the plaintiff, is
iii. Specification invalid or inoperative, or otherwise defective and
hence, the plaintiff and those claiming under him
SPECIFICATION — imparting of a new form to may forever be free of any hostile claim.
the material belonging to another; or the making
of the material of another into a thing of a Reasons:
different kind.
1. Prevent litigation
RULES: 2. Protect true title & possession
1. When the maker (considered principal) is 3. Real interest of both parties which requires
in GF that precise state of title be known
a. May appropriate but must
indemnify the owner of the ACTION TO QUIET TITLE
material 1. Puts an end to vexatious litigation in respect
b. May not appropriate – when to property involved; plaintiff asserts his own
material transformed > new thing. estate & generally declares that defendant’s
The OM may: claim is w/o foundation
i. Appropriate the new thing 2. Remedial
subject to the payment of 3. QUASI IN REM - suits against a particular
the value of the work, or person or persons in respect to the res May
ii. Demand indemnity for the not be brought for the purpose of settling a
material with damages boundary disputes
b. When the maker is in BF 4. Applicable to real property or any interest
a. OM can appropriate the work therein. The law, however, does not exclude
without paying for the labor or personal property from actions to quiet title.
industry 5. An action to quiet title brought by the person
b. OM can demand indemnity plus in possession of the property is
damages IMPRESCRIPTIBLE.
c. OM cannot appropriate if the value of the 6. If he is not in possession, he must invoke his
work is considerably more than the value remedy within the prescriptive period.
of the material due to artistic or scientific
importance Classifications:
1. Remedial action –to remove cloud on title
COMPARISON OF THE 3 TYPES OF 2. Preventive action –to prevent the casting of a
ACCESSION OF MOVABLES (threatened ) cloud on the title.
ADJUNCTION MIXTURE SPECIFICATION Requisites: (TICR)
Involves at Involves at Involves at least 2 1.
least 2 things least 2 things Plaintiff must have a legal or equitable Title or
things interest in the real property
As a rule, As a rule, As a rule, 2.
accessory co- accessory follows Cloud in such title
follows ownership principal
3.
Such cloud must be due to some Instrument, Purpose To end Procure
record, claim, encumbrance or vexatious cancellation,
proceeding which is: litigation in release of an
a) apparently valid respect to the instrument,
b) but is in truth invalid, ineffective, voidable property encumbrance or
or unenforceable concerned claim in the
c) prejudicial to the plaintiff’s title plaintiff’s title-
4. which affects the
Plaintiff must Return to the defendant all title or enjoyment
benefits received from the latter or reimburse of the property
him for expenses that may have redounded Nature Plaintiff asserts Plaintiff declares
to his benefit own claim and his own claim and
declares that title, and at the
NO APPLICATION TO: the claim of the same time
1. Questions involving interpretation of defendant is indicates the
documents unfounded and source and nature
2. Mere written or oral assertions of claims, calls on the of the defendant’s
EXCEPT defendant to claim, pointing its
a. If made in a legal proceeding justify his claim defects and prays
b. If it is being asserted that the instrument on the property for the declaration
of entry in plaintiff’s favor is not what it that the same of its invalidity
purports to be may be
3. Boundary disputes determined by
4. Deeds by strangers to the title UNLESS the court
purporting to convey the property of the
plaintiff Except: In one case, a piece of land was owned
5. Instruments invalid on their face by as a husband and wife, and it was offered for
6. Where the validity of the instrument involves bail. They executed a mortgage in the land in
pure questions of law favor of the Court. Later on, the land was
foreclosed and the State was the sole bidder.
Deed of Sale was issued in favor of the State. The
ACTION TO REMOVE CLOUD owner of the land could not redeem it. But the
1. Intended to procure cancellation, delivery, State did not change the title to be under its
release of an instrument, encumbrance, or name. Many years after that, the heirs of the
claim constituting a on plaintiff’s title which couple brought an action to quiet title. The
may be used to injure or vex him in the Supreme Court denied the claim. The Court
enjoyment of his title failure of the State to have it registered does not
2. Preventive mean that the title is invalid. The Court also held
CLOUD—is a semblance of title, either legal or that the right for action to quiet title is
equitable, or a claim or a right in real property, imprescriptible so long as the plaintiff is in
appearing in some legal form but which is, in possession of the property.
fact, invalid or which would be inequitable to
enforce. Ruinous Buildings and Trees in Danger of
Falling
Existence of Cloud: (AIP) Liability for damages:
1. Instrument or record or claim or 1. Collapse – engineer, architect or contractor
encumbrance or proceeding which is 2. Collapse resulting from total or partial
Apparently valid or effective damage; no repair made – owner; state may
2. BUT is, in truth and in fact, Invalid, compel him to demolish or make necessary
ineffective, voidable, or unenforceable, or work to prevent if from falling
extinguished (or terminated) or barred by 3. If no action – done by government at expense
extinctive prescription of owner
3. May be Prejudicial to the title
 To constitute an Act of God:
DISTINCTIONS BETWEEN ACTION FOR Requisites:
QUIETING OF TITLE AND ACTION FOR 1. The cause of the breach of obligation
REMOVAL OF CLOUD must be independent of the will of the
BASIS ACTION TO ACTION TO debtor
QUIET TITLE REMOVE CLOUD
3.
2. The event must be either unforeseeable 3.
or unavoidable Succession
3. The event must be such as to render it 4. Fortuitous event/chance (i.e., commixtion)
impossible for the debtor to fulfill his 5. Occupancy (i.e.,2 persons catch a wild
obligation in a normal manner animal)
4. The debtor must be free form any 6. Donation
participation in, or aggravation of the
injury to the creditor. Nakpil v. CA, [144 Kinds of Co-ownership:
SCRA 595 (1986)] 1. Ordinary – right of partition exists
2. Compulsory – no right partition exists (party
wall)
================================ 3. Legal – created by law
TOPICS UNDER THE SYLLABUS 4. Contractual – created by contract
E. Co-ownership 5. Universal – over universal things (co-heirs)
1. Elements 6. Singular or Particular – over particular or
2. How Created specific thing
3. Rights of Co-owners 7. Incidental – exists independently of the will of
the parties
a. Ownership over Whole
Property DISTINGUISHED FROM PARTNERSHIP
b. Sale/ Alienation BASIS CO- PARTNERSHI
i. Of Individual Interest OWNE P
ii. Of Entire Property RSHIP
iii. Redemption by Other Co- Legal No legal Has legal or
owners personality personality juridical
personality
iv. Prescription
Source Created by Created by
c. Benefits/ Fruits/ Interest/ contract or contract only
Income other things (express or
d. Use/ Possession implied)
e. Management/ Administration Purpose Collective Profit
4. Partition enjoyment of a
a. Demandable Anytime thing
b. Prohibition for Indivision Term Agreement for No term limit
it to exist for set by law
5. Obligations of Co-owners 10 years –
6. Termination valid (If more
================================ than 10 years,
the excess is
void)

NOTE: 20
years is the
E. CO-OWNERSHIP maximum if
imposed by
CO-OWNERSHIP —is a form of ownership which the testator or
exists whenever an undivided thing or right donee of the
belongs to different persons. common
property
1. ELEMENTS Representatio As a rule, no As a rule,
1. Plurality of subjects – many owners n mutual there is
2. Object of ownership must be undivided representation mutual
3. Recognition of ideal shares; no one is an representatio
owner of a specific portion of the property n
until it is partitioned. Effect of death Not dissolved Dissolved by
by death or the death or
2. HOW CREATED incapacity of a incapacity of
1. Law co-owner a partner
2. Contracts Substitution Can dispose of Cannot
his share substitute ii. Of Entire Property
without another as
consent of partner in his iii. Redemption by Other Co-
others place without owners
consent of
others Right of redemption
Profits Must always May be i. Right to be adjudicated thing (subject
depend on stipulated to right of others to be indemnified)
proportionate upon ii. Right to share in proceeds of sale of
shares thing if thing is indivisible and they
cannot agree that it be allotted to one
DISTINGUISHED FROM JOINT TENANCY of them
BASIS CO- JOINT
OWNERSHIP TENANCY NOTE:
Shares Involves a Involves a  To be exercised w/in 30days from
physical whole. physical whole. written notice of sale of undivided
But there is an But there is no share of another co-owner to a
ideal (abstract) ideal (abstract) stranger
division; each division; each and  Redemption of the whole property
co-owner being all of them own by a co-owner does not vest in
the owner of the whole thing him sole ownership over said
his ideal share property. Redemption within the
Disposal Each co-owner Each co-owner period prescribed by law by a co-
of shares may dispose of may not dispose owner will inure to the benefit of
his ideal or of his own share all co-owners. Hence, it will not
undivided without the put an end to existing co-
share (without consent of all the ownership. Mariano v. CA, [222
boundaries) rest, because he SCRA 736 (1993)]
without the really has no ideal
other’s consent share iv. Prescription
Effect of share goes to share goes by
death his own heirs accretion to the General Rule - A co-owner cannot acquire the
other joint- whole property as against the other co-
tenants by virtue owners by acquisitive prescription.
of their
survivorship or jus Exception - When there is valid repudiation –
accrecendi prescription shall start from such repudiation
Effect of If a co-owner is If one joint-tenant
disability a minor, this is under legal Exception to the Exception - In constructive
does not disability (like trusts, prescription does not run
benefit the minority), this
others for the benefits the other i. A co-owner cannot sell the property
purpose of against whom without the other co-owners’ consent,
prescription, prescription will otherwise, the selling co-owner’s share
and not run shall be the only one valid. Paulmitan v.
prescription CA, [215 SCRA 866 (1992)]
therefore runs
against them ii. While the husband is the recognized
administrator of the conjugal property
3. RIGHTS OF CO-OWNERS under the Civil Code, there are instances
a. Ownership over Whole Property when the wife may assume administrative
powers or ask for the separation of
b. Sale/ Alienation property. Where the husband is absent
and incapable of administering the
i. Of Individual Interest conjugal property, the wife must be
o Right to alienate, assign or expressly authorized by the husband or
mortgage own part; except seek judicial authority to assume powers
personal rights like right to use of administration. Thus, any transaction
and habitation entered by the wife without the court or
the husband’s authority is unenforceable. owned in common, insofar as his share is
Being an unenforceable contract, the 2nd concerned.
Contract is susceptible to ratification. The
husband continued remitting payments b. Prohibition for Indivision
for the satisfaction of the obligation under
the questioned contract. These acts Exception - A co-owner may not successfully
constitute ratification of the contract. demand a partition:
Fabrigas v. San Francisco, [G.R. No. 1. If by agreement (for a period not
152346, Nov. 25, 2005] exceeding 10 years, renewable) partition is
prohibited
c. Benefits/ Fruits/ Interest/ Income 2. When partition is prohibited by a
o Right to benefits proportional to donor or testator (for a period not exceeding
respective interest 20 years) – from whom the property came
i. Stipulation to contrary is void 3. When partition is prohibited by law
o Right to full ownership of his part and 4. When a physical partition would
fruits render the property unserviceable, but in this
case, the property may be allotted to one of
d. Use/ Possession the co-owners, who shall indemnify the
o Right to use thing co-owned others, or it will be sold, and the proceeds
i. For purpose for which it is distributed
intended 5. When the legal nature of the
ii. Without prejudice to interest common property does not allow partition
of ownership
iii. Without preventing other co- REQUISITES OF REPUDIATION:
owners from making use 1. Unequivocal acts of repudiation of the co-
thereof ownership amounting to an ouster of the
other co-owners
e. Management/ Administration 2. Positive acts of repudiation have been made
Known
3. Evidence is clear and conclusive
o Right to change purpose of co-
4. Open, continuous, exclusive, notorious
ownership by agreement
possession
o Right to bring action in ejectment in
behalf of other co-owner
o Right to compel co-owners to
5. OBLIGATIONS OF CO-OWNERS
contribute to necessary expenses for
preservation of thing and taxes
1. Share in charges proportional to respective
o Right to exempt himself from
interest; stipulation to contrary is void
obligation of paying necessary 2. Pay necessary expenses and taxes – may be
expenses and taxes by renouncing exercised by only one co-owner
his share in the pro indiviso interest; 3. Pay useful and luxurious expenses – if
but can’t be made if prejudicial to determined by majority
co-ownership 4. Duty to obtain consent of all if thing is to be
o Right to make repairs for altered even if beneficial; resort to court if
preservation of things; can be made non-consent is manifestly prejudicial
at will of one co-owner; receive 5. Duty to obtain consent of majority with
reimbursement therefrom; notice of regards to administration and better
necessity of such repairs must be enjoyment of the thing; majority means
given to co-owners, if practicable majority in the interest not in the number of
o Right to ask for partition anytime co-owners; court intervention if prejudicial –
o Right of pre-emption appointment of administrator
6. No prescription to run in favor co-owner as
4. PARTITION long as he recognizes the co-ownership;
requisites for acquisition through prescription
a. Demandable Anytime i. He has repudiated through
unequivocal acts
General Rule: No co-owner shall be obliged to ii. Such act of repudiation is made
remain in the co-ownership. Each co-owner may known to other co-owners
at any time demand the partition of the thing
iii. Evidence must be clear and General Rule: Common areas shall remain
convincing undivided, and there shall be no judicial partition
7. Co-owners cannot ask for physical division if thereof
it would render thing unserviceable; but can
terminate co-ownership Exceptions
8. After partition, duty to render mutual 1. When the project has not been rebuilt or
accounting of benefits and reimbursements repaired substantially to its state prior to its
for expenses damage or destruction 3 years after damage or
9. Under Art. 493 of the NCC, each co-owner destruction which rendered a material part
has full ownership of his part and of the fruits thereof unfit for use;
and benefits pertaining thereto, and he may 2. When damage or destruction has rendered ½
alienate, assign or mortgage the portion or more of the units untenable and that the
which may be allotted to him upon the condominium owners holding more than 30%
termination of the co-ownership. It appears interest in the common areas are opposed to
that while there is a single certificate of title, restoration of the projects;
the three lots are distinguishable from each 3. When the project has been in existence for
other. more than 50 years, and the condominium
owners holding in aggregate more than 50%
RIGHTS OF 3RD PARTIES interest in the common areas are opposed to
1. Creditors of assignees may take part in restoration, remodeling or modernizing;
division and object if being effected 4. When a project or a material part thereof has
without their concurrence, but cannot been condemned or expropriated and the project
impugn unless there is fraud or made is no longer viable or that the condominium
notwithstanding their formal opposition owners holding in aggregate more than 70%
2. Non-intervenors – retain rights of interest in the common areas are opposed to the
mortgage and servitude and other real continuation of the condominium regime.
rights and personal rights belonging to 5. When conditions for partition by sale set forth
them before partition was made in the declaration of restrictions duly registered
have been met.
================================
TOPICS UNDER THE SYLLABUS
F. Condominium Act (RA 4726) ================================
================================ TOPICS UNDER THE SYLLABUS
G. Possession
CONDOMINIUM – an interest in real property 1. Elements
consisting of a separate interest in a unit in a 2. Kinds
residential, commercial or industrial building and 3. Requirements—To Ripen into
an undivided interest in common, directly or Ownership
indirectly, in the land on which it is located and in 4. Acquisitive Prescription
other common areas of the building. 5. Rights of Legal Processor
a. Any transfer or conveyance of a unit or an
apartment office or store or other space a. Peaceful & Uninterrupted
therein shall include the transfer and Possession
conveyance of the undivided interest in i. Co-possession
the common areas or in a proper case, ii. Actions in Case of
the membership or shareholdings in the Deprivation of Possession
condominium: provided however, that b. Fruits
where the common areas in the
condominium project are held by the
i. Civil Fruits
owners of separate units as co-owners ii. Natural/ Industrial Fruits
thereof, no condominium unit therein iii. Pending Fruits
shall be conveyed or transferred to c. Indemnity for Expenses/
persons other than Filipino citizens or Improvements
corporations at least 60% of the capital i. Necessary
stock of which belong to Filipino citizens,
ii. Useful
except in cases of hereditary succession.
iii. Luxurious
iv. Possession by Lessee
6. Prescription of Just Title b. Capacity to possess
a. When Applicable c. Object must be capable of being
possessed
b. Meaning of Just Title
2. Thru authorized person (agent or legal
7. Possession of Movables representative)
a. When Lost Requisites:
b. Unlawful Deprivation a. Intent to possess for principal (not for
8. Loss of Possession agent)
================================ b. Authority or capacity to possess (for
another)
POSSESSION— is the holding of a thing or c. Principal has intent and capacity to
enjoyment of a right possess
3. Thru Unauthorized person (but only if
subsequently ratified)
1. ELEMENTS
Requisites:
a. Occupancy
a. Intent to possess for another (the
– actual or constructive (corpus)
principal)
b. Intent to
b. Capacity of “principal” to possess
possess (animus possidendi) c. Ratification by principal
c. Must be by
virtue of one’s own right 2. REQUIREMENTS—TO RIPEN INTO
OWNERSHIP
Extent of Possession:
1. Physical/actual – occupancy in fact of the Classes of Possession:
whole or at least substantially the whole 1. In concept of owner – owner himself or
2. Constructive – occupancy in part in the name adverse possessor
of the whole under such circumstances that Effects:
the law extends the occupancy to the A. May be converted into ownership
possession of the whole through acquisitive prescription
B. Bring actions necessary to protect
Subject of possession: things or rights which possession
are susceptible of being appropriated C. Ask for inscription of possession
D. Demand fruits and damages from
Exceptions: one unlawfully detaining property
1. Res communes 2. In concept of holder – usufruct, lessee,
2. Property of public dominion bailee in commodatum
3. Discontinuous servitudes 3. In oneself – personal acquisition
4. Non-apparent servitudes A. must have capacity to acquire
possession
DEGREES OF POSSESSION: B. intent to possess
1. Holding w/o title and in violation of right C. possibility to acquire possession
of owner (grammatical degree) 4. In name of another – agent; subject to
Ex. possession of a thief authority and ratification if not
2. Possession with juridical title but not that authorized; negotiorum gestio
of owner (juridical possession) A. Voluntary – as when an agent
Ex. that of a lessee, pledge, possesses for the principal
depositary B. Necessary – as when a mother
3. Possession with just title but not from true possesses for a child still in the
owner (possessory right) maternal womb
Ex. A in good faith buys a car C. Unauthorized – this will become
from B who delivers the same to A the principal’s possession only
but B merely pretended to be the after there has been a ratification
owner without prejudice to the effects of
4. Possession with just title from true owner negotiorum gestio
ACQUISITION OF POSSESSION FROM THE
 Possession and ownership are distinct
VIEWPOINT OF WHO POSSESSES:
legal concepts. Ownership confers
1. Personal
certain rights to the owner, among which
Requisites:
are the right to enjoy the thing owned
a. Intent to possess
and the right to exclude other persons 1. Possession of hereditary property:
from possession thereof. On the other a. If ACCEPTED  deemed transmitted w/o
hand, possession is defined as the interruption from moment of death
holding of a thing or the enjoyment of a b. If NOT ACCEPTED  deemed never to
right. Literally, to possess means to have possessed the same
actually and physically occupy a thing 2. Except from date of death of decedent.
with or without a right. Thus, a person
may be declared an owner but he may EFFECTS OF BAD FAITH OF DECEDENT ON
not be entitled to possession. Heirs of HEIR
Roman Soriano v. CA, [363 SCRA 86 1. Heir shall not suffer the consequences of the
(2001)] wrongful possession of the decedent (bad
faith is personal)
4. ACQUISITIVE PRESCRIPTION EXCEPTION: when he becomes aware
of the flaws affecting the decedent’s title
POSSESSOR IN GOOD FAITH is one who is not 2. Interruption of good faith may take place at
aware that there exist a flaw in the title or mode the date of summons or that of the answer if
w/c invalidates it. the date of summons does not appear.
HOWEVER, there is a contrary view espousing
POSSESSOR IN BAD FAITH is one who is aware that summons is insufficient to make the
of defect. possessor in bad faith.
3. Effects of possession in good faith  counted
Notes on Good Faith/Bad Faith only from the date of the decedent’s death
 Mistake upon a doubtful/difficult question
of law  may be the basis of good faith MINORS/INCAPACITATED:
 Good faith is always presumed. Burden of 1. May acquire MATERIAL possession but not
proof lies on the one alleging bad faith right to possession;
 Possession is presumed to be enjoyed in 2. May only acquire them through guardian or
the same character in which it is legal representatives
acquired, until contrary is proven.
ACQUISITION: cannot be acquired through force
Ways of Acquiring Possession or intimidation when a possessor objects thereto
1. Material occupation or exercise of a – resort to courts
right
a. TRADICION BREVI MANU– when one  The execution of a deed of sale is merely a
already in possession of a thing by a title prima facie presumption of delivery of
other than ownership continues to possession of a piece of real property, which
possess the same under a new title, that is destroyed when the delivery is not effected
of ownership because of a legal impediment. Said
construction or symbolic delivery, being
b. TRADICION CONSTITUTUM merely presumptive, may be negated by the
POSSESSORIUM— when the owner failure of the vendee to take actual
continues in possession of the property possession of the land sold. Copuyoc v. De
alienated not as owner but in some other Sola, [G.R. No. 151322, October 26,
capacity. 2006]

b. By the subjection of the thing or right to 5. RIGHTS OF LEGAL POSSESSOR


our will
a. TRADICION LONGA MANU– effected by a. Peaceful & Uninterrupted
mere consent or agreement of the parties Possession
b. TRADICION SIMBOLICA– effected by
delivering an object (such as key) o Right to be respected in his
symbolizing the placing of one thing possession; if disturbed – protected
under the control of the vendee by means established by law;
spoliation
c. By proper acts and legal formalities o Possession acquired and enjoyed in
established for acquiring such right of concept of owner can serve as title for
possession acquisitive prescription

POSSESSION THROUGH SUCCESSION


4.
 Possession has to be in concept of Im
provements caused by nature or time to inure
owner, public, peaceful and
to the benefit of person who has succeeded
uninterrupted
in recovering possession
 Title short of ownership
5. Wild animals possessed while in one’s
o Legal presumption of just title (prima
control; domesticated – possessed if they
facie) – for person in concept of owner retain habit of returning back home
o Possession of real property presumes 6. One who recovers, according to law,
that movables are included possession unjustly lost is deemed to have
enjoyed it w/o interruption
i. Co-possession
Liabilities/ Duties Of Possessors
Co-possessors deemed to have exclusively 1. Return of fruits if in bad faith – fruits
possessed part which may be allotted to him; legitimate possessor could have received
interruption in whole or in part shall be to the 2. Bear cost of litigation
prejudice of all 3. Possessor in good faith not liable for loss
ii. Actions in Case of or deterioration or loss except when fraud
Deprivation of Possession and negligence intervened
4. Possessor in bad faith liable for loss or
b. Fruits deterioration even if caused by fortuitous
event
For possessors in good faith: 5. Person who recovers possession not
1. Entitled to fruits received before possession obliged to pay for improvements which
is legally interrupted (natural and industrial – have ceased to exist at the time of
gathered or severed; civil – accrue daily ) occupation
2. Entitled to part of net harvest and part of
expenses of cultivation if there are natural or General Rule Re: possession as a fact:
industrial fruits ( proportionate to time of Possession as a fact cannot be recognized at the
possession ) same time in two different personalities
a. Owner has option to require possessor to
finish cultivation and gathering of fruits Exceptions:
and give net proceeds as indemnity for 1. Co-possessor – there is no conflict of interest,
his part of expenses; both of them acting as co-owners, as in the
b. If possessor in good faith refuses – barred case of property owned or possessed in
from indemnification in other manner common
2. Possession of different concepts or different
c. Indemnity for Expenses/ Improvements degrees

For possessors in good faith: SUMMARY OF RULES ON NECESSARY/


1. Right to be reimbursed for useful expenses USEFUL/ LUXURIOUS POSSESSION &
with right of retention; owner has option of POSSESSION BY LESSEE
paying expenses or paying the increase in BASIS IF IN GOOD IF IN BAD
value of property which thing acquired by FAITH FAITH
reason of useful expenses
2. May remove improvements if can be done
w/o damage to principal thing- unless owner
exercises option of paying; possessor in bad
faith not entitled.

Regardless of good faith/bad faith:


1. Right to be indemnified for necessary
expenses;
2. Possessor in good faith has right of retention
over thing unless necessary expenses paid by
owner
3. Not entitled to payment for luxurious
expense but may remove them provided
principal is not injured – provided owner does
not refund the amount expended
Necessary 1. Right to Right to 1. On capital  1. On capital 
Expenses reimbursemen reimbursement charged to charged to
t - no right of owner owner
2. Right of retention
retention Taxes and 2. On fruits  2. On fruits 
1. Right to Charges charged to charged to
reimbursemen possessor owner
t of either the
amount spent 3. Charges 
Useful or the increase Possessor must
expenses in value – return value of
“plus value” – fruits already
at owner’s received as well
option (art. as value of fruits
546) which the owner
2. Right of or legitimate
retention until No right to Regarding possessor (not
paid reimbursement gathered or To possessor the possessor in
3. Right of severed BF)
removal fruits could have
(provided no received with
substantial due care or
damage or diligence, MINUS
injury is necessary
caused to the expenses for
principal, cultivation,
reducing its gathering, and
value) – harvesting, to
UNLESS the Cultivation prevent the to
Reimbursed
winner (owner expenses of possessor
or lawful gathered fruits
possessor) – not
exercises the reimbursed to
option in (1) possessor
In general, no In general, no Regarding pro-rating To owner
Luxurious right to refund right of refund or pending or between
or or retention retention but ungathered possessor and
Ornamenta but can can remove if no fruits owner of
l Expenses remove if no substantial expenses, net
substantial injury is caused. harvest, and
injury is However, owner charges
caused. has OPTION to
However, allow:
owner has 1. Possessor to
OPTION to remove
allow: 2. Or retain for
a. Possessor himself (the
to remove owner) the
b. Or retain ornament by
for himself refunding the
(the owner) value it has at
the ornament the time owner
by refunding enters into
the amount possession (art.
spent (art. 549)
548)
1.
Production No indemnity G
expenses of ood faith
pending fruits 2. Owner voluntarily parted with the possession
– indemnity of the thing
pro rata to 3. In the concept of owner
possessor: a. Possession in good faith - Equivalent
(owner’s to title
option) money b. One who has lost or has been
allowing full unlawfully deprived of it may recover
cultivation and the thing from whomever possesses
gathering of all it, ordinarily, w/o reimbursement.
fruits; if c. Owner must prove:
possessor i. Ownership of the thing
refused, he ii. Loss or unlawful deprivation or
shall lose all bad faith of the possessor
the right to be NOTE: Owner acts negligently or voluntarily
indemnified in parts w/ the thing owned  cannot recover from
any other possessor
manner.
Improveme No No SUMMARY OF RECOVERY OR NON-
nts no reimbursemen reimbursement RECOVERY PRINCIPLE
longer t Owner may1. from possessor in bad
existing recover without faith
reimbursement2. from possessor in good
Liability for Only if acting Liable in every
faith (if owner had lost the
accidental w/ fraudulent case
property or been
loss or intent or
unlawfully deprived of it)
deterioratio negligence,
the acquisition being from
n after summons
a private person [art. 559]
Improveme To owner or To owner or
Owner may if possessor acquired
nts due to lawful lawful possessor
recover but the object in good faith at
time or possessor
should a public sale or auction;
nature
REIMBURSE the owner to pay the price
possessor paid.
Rules in case of conflict or dispute
Owner cannot 1. if possessor had
regarding possession
recover, even if acquired it in good faith by
1. Present possessor shall be preferred
he offers to purchase from a
2. If both are present, the one longer in
reimburse merchant’s store, or in
possession
(whether or not fairs, or markets in
3. If both began to possess at the same time,
the owner had accordance with the Code
the one who present (or has) title
lost or been of Commerce and special
4. If both present a title, the Court will
unlawfully laws
determine. (Meantime, the thing shall be
deprived) 2. if owner is by his
judicially deposited.)
conduct precluded from
denying the seller’s
A NOTICE OF LIS PENDENS is proper in the
authority to sell
following cases: (PORC-Q)
3. if seller has voidable
1. Action to recover possession of real estate
title which has not been
2. Action to quiet title thereto
avoided at the time of sale
3. Action to remove clouds thereon
to the buyer in good faith
4. Action for partition
for value and without
5. Any other proceedings of any kind in Court
notice of the sellers defect
directly affecting the title to the land or the use
in title
or occupation thereof of the buildings thereon
4. if recovery is no longer
possible because of
6. PRESCRIPTION OF JUST TITLE prescription
5. if sale is sanctioned by
7. POSSESSION OF MOVABLES statutory or judicial
authority
Requisites:
6. if possessor had
obtained the goods Possession Equivalent To Title:
because he was an 1. Possession is in good faith
innocent purchaser for 2. Owner has voluntarily parted with the
value and holder of a possession of the thing - Possessor is in concept
negotiable document of of an owner
title to the goods

ANIMALS
================================
WILD ANIMALS – possessor is the one who has
TOPICS UNDER THE SYLLABUS
control over them H. USUFRUCT
DOMESTICATED AND TAMED ANIMALS – the 1. Nature/Elements
possessor does not lose possession as long as 2. Application to Personal and Real
habitually they return to the possessor’s Properties
premises 3. How constituted
4. Rights of the Usufructuary
NOTE: For ownership, the owner must claim them
a. Fruits
within 20 days from their occupation by another
b. Possession and enjoyments
person
c. Lease of property
Loss Of Possession: (PALA) d. Sale/Alienation of Usufructuary
1. Abandonment of the thing – renunciation rights
of right; intent to lose the thing 5. Obligations of the Usufructuary
2. Assignment made to another by onerous a. Before the Usufruct
or gratuitous title commences
3. Destruction or total loss of the thing or
b. During the Usufruct
thing went out of commerce
4. Possession of another if new possession i. Alteration of form and
lasted longer that 1 year (possession as substance
a fact); real right of possession not lost ii. Exercise of diligence
except after 10 years iii. Repairs
iv. Charges and Taxes
8. LOSS OF POSSESSION v. Insurance
Acts Not Affecting Possession: (not deemed
6. Termination of Usufruct
abandonment of rights); possession not ================================
interrupted
1. Acts merely tolerated USUFRUCT is the right to enjoy the property of
2. Clandestine and unknown acts another with the obligation of preserving its form
3. Acts of violence and substance, unless the title constituting it or
the law otherwise provides
Possession Not Lost When:
2. Even for time being he may not know their Quasi-usufruct is the usufruct pertaining to
whereabouts, possession of movable is not immovables.
deemed lost
3. When agent encumbered property without 1. NATURE/ELEMENTS
express authority – except when ratified
4. Possession may still be recovered: Characteristics or Elements
a. Unlawfully deprived or lost 1. Essential – those without which it cannot be
b. Acquired at public sale in good termed usufruct
faith – with reimbursement a. A real right (whether
c. Provision of law enabling the registered in the Registry of Property or
apparent owner to dispose as if he is not)
owner b. Of a temporary nature or
d. Sale under order of the court duration
e. Purchases made at merchant c. Purpose: to enjoy the benefits
stores, fairs or markets and derive all advantages from the object
f. Negotiable document of title
as a consequence of normal use or right
exploitation Creator Can be created The lessor may or
2. Natural – that which ordinarily is present, only by the may not be the
but a contrary stipulation can eliminate it owner, or by a owner as when
because it is not essential duly authorized there is a sub-lease
a. Obligation of conserving or agent, acting or when the lessor
preserving the form and substance in behalf of the is only a
(value) of the thing owner usufructuary
3. Accidental – those which may be present Origin May be created May be created as
or absent depending upon the stipulation of by law, a rule only by
the parties contract, last contract; and by
a. Whether it be a pure or a will, or way of exception
conditional usufruct prescription by law (as in the
b. The number of years it will case of an implied
exist new lease, or when
c. Whether it is in favor of one a builder has built
person or several, etc in good faith on
the land of another
DISTINGUISHED FROM EASEMENT a building, when
the land is
BASIS USUFRUCT EASEMENT considerably worth
Object May be real or Involves only more in value than
personal real property the building
property. Can Cause The owner is The owner or
also be on rights, more or less lessor is more or
but not personal passive, and less active, and he
rights he allows the makes the lessee
Extent What can be Limited to a usufructuary to enjoy the thing
enjoyed here are particular use enjoy the thing being leased
all uses and given in
fruits of the usufruct
property Repairs The The lessee
Coverag Cannot be May be usufructuary generally has no
e constituted on an constituted in has the duty to duty to pay for
easement; but it favor or, or make the repairs
may be burdening, a ordinary
constituted on piece of land repairs
the land held in usufruct Taxes The The lessee
burdened by an usufructuary generally pays no
easement pays for the taxes
Effect of Usually Not annual charges
death extinguished by extinguished by and taxes on
death of the death of the the fruits
usufructuary owner of the As to A usufructuary The lessee cannot
dominant estate other may lease the constitute a
things property itself usufruct on the
DISTINGUISHED FROM LEASE to another property leased
BASIS USUFRUCT LEASE
Extent Covers all fruits Generally covers KINDS:
and uses as a only a particular or 1. As to Origin
rule specific use a. Legal – created by law such as usufruct of
Nature Always a real A real right only if, parents over the properties of their
right as in the case of a children
lease over real b. Voluntary or conventional
property, the lease i. Created by will of the parties inter
is registered, or is vivos
for more than 1 ii. Created mortis causa
year, otherwise, it c. Mixed – partly created by law and partly
is only a personal by will
2.
d. Prescriptive – is one acquired by a third Us
person through continuous use of the ufruct CANNOT be constituted on an object
usufruct for the period required by law subject to Pledge
3. Usufruct can be constituted on an object
2. As to quantity or extent subjected previously to a Lease.
a. As to fruits 4. Usufructuary can lease out the property to
i. Total other parties
ii. Partial 5. Usufructuary can construct improvements
b. As to extent over property subject to usufruct
i. Universal – if over the entire
patrimony 3. HOW CONSTITUTED
ii. Particular/Singular - if only individual
things are included How to constitute Usufruct
1. Legal Usufruct – but is not evident in today’s
3. As to the number of persons enjoying laws
the right 2. Act Inter Vivos
a. Simple – if only one usufructuary enjoys 3. By Prescription
the right
b. Multiple – if several usufructuaries enjoy 4. RIGHTS OF USUFRUCTUARY
the right a. Fruits
i. Simultaneous – at the same time b. Possession and enjoyments
ii. Successive – one after the other
Right to civil, natural & industrial fruits of
BUT, in this case, if the usufruct is created by property (jus fruendi and jus utendi)
donation, all the donees must be alive, or at least a. Civil Fruits accrue daily
already conceived, at the time of the perfection I. Belong to the usufructuary in
of the donation. proportion in proportion to the time the
usufruct may last
4. As to the quality or kind of objects II. Both stock dividends and cash
involved dividends are considered civil fruits
a. Usufruct over rights – rights must not be b. Industrial and Natural Fruits
personal or intransmissible in character, I. Fruits pending at the beginning of
so present or future support cannot be an the usufruct
object of usufruct  Belong to the usufructuary
b. Usufruct over things  No necessity of refunding the
i. Normal (or perfect or regular) – this owner for expenses incurred, (for the
involves non-consumable things owner gave the usufruct evidently
where the form and substance are without any thought of being
preserved reimbursed for the pending fruits, or
ii. Abnormal (or imperfect or irregular) – because the value of said fruits must
involves consumable things have already been taken into
consideration in fixing the terms and
5. As to terms or conditions conditions of the usufruct, if for
a. Pure – no term or condition instance, the usufruct came about
b. With a term or period because of contract)
i. Ex die – from a certaign day  BUT without prejudice to the right
ii. In diem – up to a certain day of 3rd persons. (Thus, if the fruits had
iii. Ex die in diem – from a certain day up been planted by a possessor in good
to a certain day faith, the pending crop expenses and
c. With a condition charges shall be pro-rated between
i. Suspensive said possessor and the usufructuary)
ii. Resolutory II. Fruits pending at the termination
of usufruct
2. APPLICATION TO PERSONAL AND REAL  Belong to the owner
PROPERTIES
 BUT the owner must reimburse the
Some rules regarding Usufruct: usufructuary for ordinary cultivation
1. Usufruct can be constituted even if the object expenses and for seeds and similar
is subject to Mortgage expenses, from the proceeds of the
fruits. (Hence, the excess of expenses
7.
over the proceeds need not be Ri
reimbursed) ght of usufructuary of woodland –
ordinary cutting as owner does habitually or
c. Lease of Property custom of place; cannot cut down trees
unless it is for the restoration of improvement
Right to lease the property of things in usufruct – must notify owner first

General Rule: The lease expires at the end of 8. Right to leave dead, uprooted trees at
the usufruct or earlier the disposal of owner with right to demand
Exception: In the case of leases of rural lands that owner should clear and remove them – if
which continues for the remainder of the caused by calamity or extraordinary event –
agricultural year;. impossible to replace them

If the usufruct should expire before the 9. Right to oblige owner to give authority
termination of the lease, he or his heirs and and furnish him proofs if usufruct is
successors shall receive only the proportionate extended to recover real property or real
share of the rent that must be paid by the right
lessees. (Art 568) If the naked owner allows the
lease to continue even after the expiration of the 10. Right to introduce useful and luxurious
usufruct, he will be entitled to the rentals expenses but with no obligation of
pertaining to such extension. reimbursement on part of owner; may
remove improvement if can be done without
d. Sale/Alienation of Usufructuary damage
rights
11. Right to set-off improvements against
Right to transfer usufructuary rights – damages he made against the property
gratuitous or onerous; but is co-terminus with
term of usufruct; but cannot do acts of ownership 12. Right to administer when property is co-
such as alienation or conveyance except when owned; if co-ownership cease – usufruct of
property is: part allotted to co-owner belongs to
a. Consumable usufructuary – not affected
b. Intended for sale
13. Right to demand the increase in value of
c. Appraised when delivered; if not
property if owner did not spend for
appraised and consumable – return same extraordinary repairs; when urgent and
quality (mutuum) necessary for preservation of thing
OTHER RIGHTS OF THE USUFRUCTUARY: 5. OBLIGATIONS OF THE USUFRUCTUARY
1. Right to hidden treasure as stranger
 Pay expenses to 3rd persons for
cultivation and production at beginning
2. Right not exempt from execution and
of usufruct; those who have right to fruits
can be sold at public auction by owner
should reimburse expenses incurred
 Generally, usufructuary has no liability
3. Naked owner still have rights but w/o
prejudice to usufructuary; may still when due to wear and tear, thing
exercise act of ownership – bring action to deteriorates, obliged to return in that
preserve ownership state; except when there is fraud or
negligence, then he shall be liable
4. Right to necessary expenses from
cultivation at end of usufruct a. Before the Usufruct commences

5. Right to enjoy accessions and servitudes Before entering into Usufructuary:


in its favor and all benefits inherent a. Notice of inventory of property
therein (appraisal of movables and description)
6. Right to make use of dead trunks of b. Posting of security
fruit bearing trees and shrubs or those i. Not applicable to parents who are
uprooted/cut by accident but obliged to usufructuary of children except when 2nd
plant anew marriage contracted
ii. Caucion Juratoria – promise under
oath to deliver:
A. Furniture necessary for the use of the OTHER OBLIGATIONS OF THE
usufructuary USUFRUCTUARY
B. House included in the usufruct 1. Obliged to notify owner of act of 3 rd
C. Implements, tools and other movable person prejudicial to rights of ownership
property necessary for an industry or – he is liable if he does not do so for damages
vocation for which he is engaged – as if it was caused through his own fault
iii. Excused – allowed by owner, not
required by law or no one will be injured 2. If usufruct is constituted on animals –
duty bound to replace dead animals that
Failure to give security, owner may demand die from natural causes or became prey;
that: if all of them perish w/o fault but due to
A. Immovables be placed under administration contagious disease / uncommon event –
B. Negotiable instruments can be converted into deliver remains saved; if perish in part due to
registered certificates or deposited in bank accident – continue on remaining portion; if
C. Capital and proceeds of sale of movables be on sterile animals – as if fungible – replace
invested in safe securities same kind & quality
D. Interest on proceeds or property under
administration belong to usufructuary RIGHTS OF THE NAKED OWNER
E. Owner may retain property as administrator 1. Alienate thing
w/ obligation to deliver fruits to usufructuary 2. Cannot alter form or substance
until he gives sufficient security 3. Cannot do anything prejudicial to
F. Effect of security is retroactive to day he is usufructuary
entitled to fruits 4. Construct any works and make any
b. During the Usufruct improvement provided it does not diminish
value or usufruct or prejudice right of
i. Alteration of form and substance usufructuary

ii. Exercise of diligence OBLIGATIONS OF THE NAKED OWNER


1. Extraordinary expenses; usufructuary obliged
Obligation to exercise diligence: to inform owner when urgent and there is the
1. Take care of property as a good father of need to make them
family 2. Expenses after renunciation of usufruct
2. Liable for negligence and fault of person who 3. Taxes and expenses imposed directly on
substitute him capital
4. If property is mortgaged, usufructuary has no
iii. Repairs obligation to pay mortgage; if attached,
owner to be liable for whatever is lost by
Obligation to make ordinary repairs – wear usufructuary
and tear due to natural use of thing and are 5. If property is expropriated for public use –
indispensable for preservation; owner may make owner obliged to either replace it or pay legal
them at expense of usufructuary – during interest to usufructuary of net proceeds of
existence of usufruct the same

iv. Charges and Taxes 6. TERMINATION OF USUFRUCT

Obligation to charges and taxes: Extinguishment of Usufruct: (PLDTERM)


A. Obliged to make expenses due to his fault; 1. Prescription – use by 3rd person
cannot escape by renouncing usufruct 2. Termination of right of person constituting
B. Pay legal interest from extraordinary usufruct
expenses made by owner 3. Total loss of thing
C. Payment of expenses, charges and taxes 4. Death of usufructuary – unless contrary
affecting fruits intention appears
D. Payment of interest on amount paid by owner 5. Expiration of period of usufruct
charges on capital 6. Renunciation of usufructuary – express
E. Expenses, cost and liabilities in suits brought 7. Merger of usufruct and ownership
with regard to usufructuary – borne by
usufructuary  Loss in part – remaining part shall
continue to be held in usufruct
v. Insurance

Usufruct cannot be constituted in favor of a town, 1.
corporation or association for more than 50 KINDS
years a) According to purpose of easement or
the nature of limitation
 Usufruct constituted on a. Positive – one which imposes upon the
immovable whereby a building is erected – servient estate the obligation of allowing
and building is destroyed – right to make use something to be done or of doing it
of land and materials himself
b. Negative – that which prohibits the
 If owner wishes to construct a new owner of the servient estate from doing
building – pay usufructuary the value of something which he could lawfully do if
interest of land and materials the easement did not exist

 Both share in insurance if both b) According to party given the benefit


pay premium; if owner only – then proceeds a. Real (or predial) – for the benefit of
will go to owner only another belonging to a different owner
(e.g. easement of water where lower
 Effect of bad use of the thing – estates are obliged to allow water
owner may demand the delivery of and naturally descending from upper estates
administration of the thing with responsibility to flow into them)
to deliver net fruits to usufructuary at b. Personal – for the benefit of one or more
termination of usufruct persons or community (e.g. easement of
right of way for passage of livestock)
 Thing to be delivered to owner
with right of retention for taxes and c) According to the manner they are
extraordinary expenses w/c should be exercised
reimbursed, security of mortgage shall be i. Continuous – their use is incessant or may
cancelled be incessant
a. for legal purposes for acquisitive
================================ prescription, the easement of
TOPICS UNDER THE SYLLABUS aqueduct is considered continuous;
easement of light and view is also
I. EASEMENTS
continuous
1. Kinds of Easements ii. Discontinuous – used at intervals and
2. Rights and Obligations depend upon
3. Modes of Extinguishment the acts of man
4. Legal Easements Ex. right of way because it can only
a. Public be used if a man passes
b. Private
d) According to whether or not their
i. Waters existence is indicated
ii. Right of Way i. Apparent – make known and continually
iii. Party Wall kept in view
iv. Light and View by external signs that reveal the use and
v. Drainage of Building enjoyment of
vi. Intermediate Distances the same
Ex. right of way when there is an
vii. Against Nuisance alley or a permanent path
viii. Lateral and Subjacent ii. Non-apparent – they show no external
Support indication of
================================ their existence
Ex. easement of not building to more
EASEMENT is an encumbrance imposed upon an than certain height
immovable for the benefit of another immovable
belonging to a different owner. The immovable DOCTRINE OF APPARENT SIGN - Easements
in favor of which the easement is established is are inseparable from the estate to which they
called the dominant estate; that which is actively or passively pertain. The existence of
subject thereto, the servient estate. the apparent sign under Art. 624 is equivalent to
a 2.
title. It is as if there is an implied contract M
between the two new owners that the easement ake any works necessary for the use and
should be constituted, since no one objected to preservation of the servitude; subject to the
the continued existence of the windows. Amor v. following conditions:
Florentino, 74 Phil 404 (1951) A. The works shall be at his expense, are
necessary for the use and preservation of
e) According to right given the servitude;
i. Right to partially use the servient B. They do not alter or render the servitude
estate more burdensome;
Ex. right of way C. The dominant owner, before making the
ii. Right to get specific materials or works, must notify the servient owner;
objects from the servient estate and
iii. Right to participate in ownership D. They shall be done at the most
Ex. easement of party wall convenient time and manner so as to
iv. Right to impede or prevent the cause the least inconvenience to the
neighboring estate from performing a servient owner
specific act of ownership 3. Renounce the easement if he desires to
exempt himself from contribution to
f) According to source or origin and necessary expenses
establishment of easement 4. Ask for mandatory injunction to prevent
a. Voluntary – constituted by will or impairment of his use of the easement
agreement of the parties or by a testator
b. Mixed – created partly by agreement and b) Obligations Of The Dominant Owner
partly by law 1. Notify the servient owner of works necessary
c. Legal – constituted by law for public use for the use and preservation of the servitude
or for private interest 2. Contribute to the necessary expenses if there
are several dominant estates in proportion to
How established: the benefits derived from the works
1. By law (Legal) 3. Cannot alter or impose added burden on the
2. By the will of the owners (Voluntary) easement
3. Through prescription (only for continuous and 4. Choose the most convenient time and
apparent easements) manner in making the necessary works as to
cause the least inconvenience to the servient
 Resultantly, when the court says that an owner
easement exists, it is not creating one. For,
c) Rights Of The Servient Owner
even an injunction cannot be used to create
1. Retain ownership of the portion on which the
one as there is no such thing as a judicial
easement is established, and may use it in
easement. The court merely declares the
such a manner as not to affect the exercise of
existence of an easement created by the
the easement
parties. La Vista Association v. CA, 278
2. Change the place or manner of the use of the
SCRA 498 (1997)
easement, provided it be equally convenient
3. Use the property subject of the easement,
Essential qualities of easements:
unless there is an agreement to the contrary
1. Incorporeal
2. Imposed upon corporeal property
d) Obligations Of The Servient Owner
3. Confer no right to a participation in the
1. Contribute to the necessary expenses in case
profits arising from it
he uses the easement, unless there is an
4. Imposed for the benefit of corporeal property agreement to the contrary
5. Has 2 distinct tenements – dominant and 2. Not to impair the use of the easement
servient estate
6. Cause must be perpetual 3. MODES OF EXTINGUISHMENT

2. RIGHTS AND OBLIGATIONS How extinguished:


1. Merger in the same person of the ownership
a) Rights Of Dominant Owner of the dominant and servient estates;
1. Exercise all rights necessary for the use of 2. Non-user for 10 years
the easement a. If discontinuous easements  period
computed from the day it was ceased to
be used

b. If continuous  period from the day on Co
which an act contrary to the same took mpulsory easements for drawing of water
place and for watering animals can be imposed for
3. Expiration of the term or fulfillment of the reasons of public use in favor of a town or
condition (if temporary or conditional) village, after payment of the proper
4. Renunciation of the owner of the dominant indemnity
estate  Use of any water by anyone can be
5. Redemption agreed upon between owners of disposed by having the water flow through
the dominant and servient estates the intervening estates but is obliged to do
6. When either or both estates fall into a the following:
condition that the easement cannot be used; 1. Prove that he can dispose of the water
revived if subsequent condition should again and that it is sufficient for the use
permit its use, unless sufficient time for intended
prescription has elapsed 2. Show that the proposed right of way is
the most convenient and least onerous to
4.LEGAL EASEMENTS 3rd persons
3. Indemnify the owner of the servient
LEGAL EASEMENTS are those imposed by law estate
having for their object either public use or the  Easement of aqueduct is continuous and
interest of private persons. They shall be apparent even though the flow of water may
governed by the special laws and regulations not be continuous
relating thereto, and in the absence thereof, by
the Civil Code. b) Easement Of Right Of Way
 Right granted to a person or class of persons
Kinds Of Legal Easements: to pass over the land of another by using a
1. Public – for public or communal use particular pathway therein, to reach the
2. Private – for the interest of private former’s estates, which have no adequate
persons/private use, including those relating outlet to a public highway, subject, however
to: (WRPL-DIAL) to payment of indemnity to the owner of the
a. Waters servient estate
b. Right of Way
c. Party Wall Requisites: (LIPO NA)
d. Light and View 1. Claimant must be an owner of enclosed
e. Drainage of Building immovable or one w/ real right
f. Intermediate Distances 2. No adequate outlet to public highway
g. Against Nuisance 3. Right of way is absolutely necessary
h. Lateral and Subjacent Support 4. Least prejudicial
5. Isolation not due to claimant’s own act
a) Easement Relating To Waters 6. Proper indemnity
a. Not compulsory if the isolation of the
 Lower estates are obliged to receive the immovable is due to the proprietor’s own
waters which naturally and without the acts
intervention of man descend from the higher b. Right of Way is granted without indemnity
estates, as well as stones or earth which they if land was acquired by and is surrounded
carry with them by the other estates of the vendor,
 Cannot construct works which will impede exchanger or co-owner through:
the easement; neither can the owner of the i. Sale
higher estate make works which will increase ii. Exchange
the burden iii. Partition
 Banks of rivers and streams, although of
private ownership, are subject throughout  Burden of proof of proving the requisites
their entire length and within a zone of 3 on the owner of the dominant estate
meters along their margins, to the easement
of public use in the general interest of
EXTINGUISHMENT: Legal or compulsory
navigation, floatage, fishing and salvage
right of way
 Estates adjoining the banks of navigable
 When the dominant estate is joined to
and floatable rivers are, subject to the
another estate (such as when the dominant
easement of towpath, for the exclusive
owner bought an adjacent estate) which is
service of river navigation and floatage
2.
abutting a public road, the access being Di
adequate and convenient viding wall is on one side straight and plumb
 When a new road is opened giving access on all its facement, and on the other, it has
similar conditions on the upper part but the
to the isolated estate
lower part slants or projects outward
 In both cases: must substantially meet
3. Entire wall is built within the boundaries of
the needs of the dominant estate. Otherwise,
one of the estates
the easement may not be extinguished.
4. The dividing wall bears the burden of the
binding beams, floors and roof frame of one
 Extinguishment NOT ipso facto of the buildings, but not those of the others
5. The dividing wall between courtyards,
 If extinguished, must return the amount gardens and tenements is constructed in
received as indemnity to the dominant owner such a way that the coping sheds the water
without any interest. Interest shall be upon only one of the estates
deemed in payment for the rent. 6. The dividing wall, being built by masonry, has
stepping stones, which at certain intervals
 The only servitude w/c a private owner is project from the surface of one side only, but
required to recognize in favor of the not on the other
government is the easement of a public 7. The lands enclosed by fences or live hedges
highway, way, private way established by adjoin others which are not enclosed
law, or any government canal or lateral that
has been pre-existing at the time of the In all these cases, the ownership is deemed to
registration of the land. If the easement is belong exclusively to the owner of the property
NOT PRE-EXISTING and is sought to be which has in its favor the presumption based on
imposed only AFTER the land has been any of these signs.
registered under the Land Registration Act,
proper expropriation proceedings should be d) Easement Of Light And View
had, and just compensation paid to the  Period of prescription for the acquisition shall
registered owner. Eslaban v. Vda. De be counted:
Onorio, G.R. No. 146062 (2001) 1. From the time of opening of the window,
if through a party wall
 Easement of right of way is DISCONTINUOUS. 2. From the time of the formal prohibition
It may be exercised only if a person passes or upon the proprietor of the adjoining land,
sets foot on somebody else’s land. An if window is through a wall on the
easement of right of way of railroad tracks is dominant estate
discontinuous because the right is exercised
only if and when a train operation by a 4. VOLUNTARY EASEMENTS are those which
person passes over another’s property. may be established by the owner of a tenement
Bomedco v. Valdez, G.R. No. 124669 of piece of land as he may deem suitable, and in
(2003) the manner and form which he may deem best,
provided that he does not contravene the laws,
c) Easement Of A Party Wall public policy or public order.
 A wall erected on the line between two
adjoining properties belonging to different ================================
persons, for the use of both estates.
TOPICS UNDER THE SYLLABUS
 Presumed, unless there is a title, or exterior
sign, or proof to the contrary: J. Modes of Acquiring Ownership
1. In dividing walls of adjoining buildings up 1. Mode v. Title
to the point of common elevation 2. Original/Derivative Modes
2. In dividing walls of gardens or yards K. Occupation
situated in cities, towns, or in rural L. Intellectual Creation
communities M. Donation
3. In fences, walls and live hedges dividing
rural lands
1. Essential Elements
2. Kinds
Exterior signs rebutting presumption: 3. Conditional Donations
1. There is a window or opening in the dividing a. Effect of Impossible/Illegal
wall of buildings Conditions
4. Inter Vivos/Mortis Causa Derivative Mode – there was a preceding
Donations owner
5. Form
Modes Of Extinguising Ownership:
a. Onerous Donations 1. Absolute – all persons are affected
6. Capacity a. Physical loss or destruction
a. Of Donor b. Legal loss or destruction (when it
b. Of Donee goes out of the commerce of man)
7. Revocation 2. Relative – only for certain persons for
a. Birth, Survival or Adoption others may acquire their ownership
a. Law
b. Ingratitude b. Succession
c. Non-fulfillment of Condition c. Tradition as a consequence of
d. Innoficiousness certain contracts
N. OTHER MODES OF ACQUIRING d. Donation
OWNERSHIP e. Abandonment
1. Law f. Destruction of the prior title or
right (like expropriation, rescission,
2. Prescription
annulment, fulfillment of a resolutory
O. NUISANCE condition)
================================ g. Prescription
MODES OF ACQUIRING OWNERSHIP:
(OLDTIPS) OCCUPATION is the acquisition of ownership by
1. Occupation seizing corporeal things w/c have no
2. Law owner, made with the intention of
3. Donation acquiring them, and accomplished
4. Tradition according to legal rules
5. Intellectual Creation
6. Prescription Requisites:
7. Succession 1. Seizure or apprehension
 The holding of the material is not
1. MODE V. TITLE
required as long as there is right of
disposition
Difference between Mode and Title
2. Property must be corporeal personal property
3. Property must be susceptible of appropriation
MODE is the process of acquiring or transferring
a. Abandoned
ownership property – res derelicata, a thing is
considered abandoned when:
TITLE is the juridical act, right or condition which i. The
gives the juridical justification for a mode or
spes recuperandi (expectation to
means to their acquisition but which in itself is recover) is gone
insufficient to produce them
ii. The
animo revertendi (intention to return
Mode Title or to have it returned) has been given
Directly and Serves merely to up by the owner
immediately give the occasion for b. Unowned
produces a real right its acquisition or property – res nullius
existence 4. Without an owner
The cause The means 5. Intent to appropriate
Proximate cause Remote cause 6. Compliance with the requisites or conditions
Essence of the right Means whereby that of the law
which is to be essence is  Abandonment requires (1) a clear and
created or transmitted absolute intention to renounce a right or a
transmitted claim or to abandon a right or property; and
(2) an external act by which that intention is
2. ORIGINAL/DERIVATIVE MODES expressed or carried into effect. The intention
to abandon implies a departure, with the
Original Mode – independent of any pre- avowed intent of never returning, resuming
existing or preceding title or right of another or claiming the right and the interest that
have been abandoned. Castellano v. d. If finder retains the thing found – he may
Francisco, [G.R. No. 155640, May 7, be charged with theft
2008] e. If owner is unknown, give to mayor;
mayor shall announce finding of the
Things Susceptible to Occupation movable for 2 weeks in a way he deems
1. Things w/c has no owner – res nullius; best
abandoned f. If owner does not appear 6 months after
2. Stolen property cannot be subject of publication, thing found shall be awarded
occupation to the finder
3. Animals that are the object of hunting and g. If owner appears, he is obliged to pay the
fishing finder 1/10 of value of property as price
h. If movable is perishable or cannot be kept
NOTE: Hunting and fishing are regulated by w/o deterioration or w/o expenses it shall
special laws: Act 2590; Fisheries Act 4003 as be sold at public auction 8 days after the
amended by CA 116, CA 147 and RA 659; Act publication
1499 as amended by Act 1685; PD 534;
Municipal ordinances. Ownership of a piece of land cannot be
acquired by occupation
Kinds Of Animals  Because when a land is without an owner, it
a. Wild – considered res nullius when not yet pertains to the State
captured; when captured and escaped –  Land that does not belong to anyone is
becomes res nullius again presumed to be public land
b. Domesticated animals – originally wild but  But when a property is private and it is
have been captured and tamed; now belong abandoned it can be object of occupation
to their capturer; has habit of returning to
premises of owner; becomes res nullius if
J. INTELLECTUAL CREATION
they lose that habit of returning and regain
their original state of freedom
c. Domestic/tamed animals – born and  By Article 722 and Decree Intellectual
ordinarily raised under the care of people; Property (P.D. 49), the author, composer,
become res nullius when abandoned by artist, or scientist can be considered as the
owner owner of the creation or product even if it has
not been copyrighted or patented. (Jurado)
 Hidden treasure (only when found on  Letters and other private communications in
things not belonging to anyone) writing are owned by the person to whom
 Abandoned movables they are addressed and delivered, but they
cannot be published or disseminated without
the consent of the writer or his heirs EXCEPT
Animals
when the court so authorize if the public good
1. Swarm of bees
or the interest of justice so requires.
- owner shall have right to pursue
them to another’s land (owner to identify
latter for damages, if any) K. DONATION
- land owner shall occupy/retain the
bees if after 2 days, owner did not pursue DONATION is an act of liberality whereby a
the bees person disposes gratuitously of a thing or right in
2. Domesticated animals favor of another, who accepts it
- may be redeemed within 20 days
from occupation of another person; if no 1. ESSENTIAL ELEMENTS
redemption is made, they shall pertain to
the one who caught them Characteristics
3. Pigeons and fish 1. Unilateral – obligation imposed on the donor
- when they go to another breeding 2. Consensual – perfected at time donor knows
place, they shall be owned by the new of acceptance
owner provided they are not enticed
Requisites: (CIDA)
Movables: 1. The donor must have capacity to make the
1. Treasure found on another’s property donation of a thing or right
2. Movable found w/c is not treasure:
c. Must be returned to owner
2.
Donative intent (animus donandi) or intent to reasons provided for
make the donation out of liberality to benefit by law (except
the donee onerous donations)
3. Delivery, whether actual or constructive of
the thing or right donated b) As to Consideration
4. donee must accept or consent to donation 1. Simple – the cause of which is the pure
 The donation is perfected once the liberality of the donor in consideration of
acceptance of the donation was made known the donee’s merits
to the donor. Accordingly, ownership will only 2. Remuneratory or compensatory – it is
revert to the donor if the resolutory condition given out of gratitude on account of the
is not fulfilled. Quijada v. CA, 299 SCRA services rendered by the donee to the
695 (1998) donor, provided they do not constitute a
demandable debt.
Requirements of a Donation: 3. Modal – imposes upon the donee a
1. Subject matter – anything of value; burden less than the value of the gift
present and not future property, must 4. Onerous – the value of which is
not impair legitime considered the equivalent of the
2. Cause – anything to support a consideration for which it is given and
consideration, generosity, charity, thus governed by the rules of obligations
goodwill, past service, debt and contracts
3. Capacity to donate, dispose and accept
donation c) As to Effectivity of Extinguishment
4. Form – depends on value of donation 1. Pure – not subject to any condition
(uncertain event) or period
2. KINDS 2. Conditional – subject to suspensive or
resolutory condition
a) As to Effectivity 3. With a Term – subject to a period,
1. Inter vivos – takes effect during the suspensive or resolutory
lifetime of the donor 3. CONDITIONAL DONATIONS
2. Mortis Causa – takes effect upon the
death of the donor a. Effect of Impossible/Illegal
3. Propter Nuptias – made by reason of Conditions
marriage and before its celebration, in
consideration of the same and in favor of Conditional – subject to suspensive or
one or both of the future spouses. resolutory condition

DONATION INTER DONATION MORTIS 4. INTER VIVOS/MORTIS CAUSA DONATIONS


VIVOS CAUSA
Disposition and Disposition happens Inter vivos – takes effect during the lifetime of
acceptance to take upon the death of the donor
effect during lifetime donor
of donor and donee Mortis Causa – takes effect upon the death of
Already pertains to Even if there is a term the donor
the donee unless of effectivity and
there is a contrary effectivity is upon the 5. FORM
intent death of the donor, still a. Onerous Donations
entitled to fruits
Formalities required - Formalities required - ONEROUS – the value of which is considered the
follow law on follow law on equivalent of the consideration for which it is
donations and certain succession to be valid, given and thus governed by the rules of
kinds of donations and and donation must be obligations and contracts
law on obligations and in the form of a will
contracts (suppletory) 6. CAPACITY
Irrevocable at the Revocable ad mutuum a. Of Donor
instance of the donor; (exclusive will of
may be revoked only donor) Who may give donations
by reasons provided All persons who may contract and dispose of
by law their property ― donor’s capacity shall be
Revoked only for
determined as of the time of the making of the delivery of thing/document & acceptance
donation need not be in writing
above 5,000 - must be written and
b. Of Donee accepted also in writing
 Immovable - must be in a public
Who may accept donations instrument and acceptance must also be
1. Natural and juridical persons not especially in a public instrument (in same
disqualified by law instrument or in other instrument);
2. Minors and other incapacitated otherwise it is void
A. By themselves c. Must be made during the lifetime of the
I. If pure and simple donation donor and donee
II. If it does not require written
acceptance In case of doubt with regard to nature of
B. By guardian, legal representatives if donation: inter vivos
needs written acceptance
I. Natural guardian – not more than Badges of mortis causa:
50,000 2. Title remains with donor (full or naked
II. Court appointed – more than 50,000 ownership) and conveyed only upon
4. Conceived and unborn child, represented by death
person who would have been guardian if 3. Donor can revoke ad mutuum
already born 4. Transfer is void if transferor survives
transferee
Who are disqualified to donate
 A donation mortis causa must comply with
1. Guardians and trustees with respect to
the formalities of a last will and testament
property entrusted to them
otherwise, it would be void and would
2. Husband and wife
produce no effect. If the donation is made in
3. Between paramours/persons guilty of
such a way that the full and naked ownership
adultery or concubinage at the time of
will pass to the donee upon the death of the
donation
donor, then it is at that time when the
4. Between parties guilty of same criminal
donation will take effect and it is the donation
offense
mortis causa which should be embodied in
5. Made to public officers, wife, descendant,
the last will and testament. Maglasang v.
ascendant, by reason of his office
Cabatingan, [G.R. No. 131953, June 2,
2002]
The prohibition against donations between
spouses must likewise apply to donations
SOME RULES ON DETERMINATION WHETHER
between persons living together in illicit
MORTIS CAUSA OR INTER VIVOS:
relations. Joaquino v. Reyes, [G.R. No.
1. A donation made “in consideration of love and
154645, July 13, 2003]
affection of the donor and the donee” but further
stipulates that “It became effective upon the
Other persons disqualified to receive
death of the donor provided that in the event the
donations
donee should die before the donor, the present
1. Priest who heard confession of donor during
donation shall be deemed automatically
his last illness
rescinded and of no force and effect.”  mortis
2. Relatives of priest within 4th degree, church,
order or community where priest belongs causa since the right of disposition is not
3. Physician, nurse, etc. who took care of donor transferred to donee while donor is still alive.
during his last illness Sicad v. CA
4. Individuals, corporations and associations not 5. A donation made stipulating that it will take
permitted effect after the death of the donor but further
stipulates that (1) the donor will not dispose
Acceptance nor take it away from the donee and that (2)
a. Acceptance must be made personally or the donor is parting with the beneficial
thru agent ownership while he lived  inter vivos
b. Donation may be made orally or in
writing: Donation Of The Same Thing To 2 Or More
 Movable: Different Persons
5,000 and below – may be oral or written,  Rules on double sale will apply
if oral it must be with simultaneous
CLASSIFICATION OF DONATION INTER VIVOS  Inter vivos – takes effect
1. From the viewpoint of motive, purpose, before the death
or cause
 In praesenti – to be
PURE/ REMUNERA COND ONEROU delivered in future (also considered inter
SIMPLE TORY ITION S vivos)
AL  Mortis causa
Consider Liberality Valuable Valuable 3. From the viewpoint of occasion
a-tion or merits considera considera  Ordinary donation
Merits of of donee -tion is -tion  Donation propter nuptias
donee or imposed given 4. From the viewpoint of object donated
burden/ but value  Corporeal property
charge of is less A. Donation of real property
past than B. Donation of personal property
services value of  Incorporeal property – donation of
provided thing inalienable rights
they do donated
not What may be given
constitute  All or part of donor’s present property
demanda
provided he reserves sufficient means for the
ble debt
support of the ff:
Law to Law on Extent of Law on a. Himself
apply/ donations burden obligation
b. Relatives who by law are entitled to his
forms s support
Law on imposed
c. Legitimes shall not be impaired
donations >
 when w/o reservation or if inofficious, may be
ObliCon
reduced on petition of persons affected
excess>
donation  Exception: conditional donation and
Form of Required Required Required donation mortis causa
accepta  Exception To The Exception: future
nce property (cannot be disposed of at the time
Required of donation)
Reservat Applicabl Applicabl Not
ion e e Applicabl  A donation would not be legally feasible if the
w/regar e donor has neither ownership nor real rights
d to that he can transmit to the donee. Hemedes
personal v. CA, [G.R. No. 107132, October 8,
support 2008]
and
legitime DOUBLE DONATIONS:
Applicabl Rule: Priority in time, priority in right
e 1. If movable – one who first takes possession in
Warrant In bad In bad Applies good faith
y faith only faith only 2. If immovable – one who recorded in registry
against of property in good faith
eviction  No inscription, one who first took
and possession in good faith
hidden  In absence thereof, one who presents
defects oldest title
In bad
faith only 7. REVOCATION
Revocati Applicabl Applicabl Applicabl
on e e e Grounds For Revocation
Applicabl 1. Birth, Adoption, Reappearance of a child
e  Period of 4 years from the time of birth,
adoption or reappearance to revoke the
donation
2. From the viewpoint of the taking effect
 Transmissible to the heirs of the donor if General rule is that if the period is not fixed
the donor dies within the 4 year period, in in the contract, the court can fix the period.
which case the remaining period shall However, it has been 50 years, more than
apply to the donor’s heirs enough time to comply. The Court refused to
 Reduction shall be based on the fix a period and ruled that the donation can
inofficiousness of the donation be revoked for failure to comply with
2. Non-fulfillment of the conditions condition. Central Philippine University v.
3. Ingratitude CA, 246 SCRA 511
 Cannot be passed to the donor’s heir
Action for revocation by reason of
 Period of 1 year from knowledge of the
ingratitude
act of ingratitude, and it was possible for 1. Donee commits offense against person,
him to bring the action honor, property of donor, spouse, children
under his parental authority
Grounds For Reduction 2. Donee imputes to donor any criminal
1. Failure of the donor to reserve sufficient offense or any act involving moral
means for support of himself or dependent turpitude even if he should prove it unless
relatives act/crime has been committed against
2. Failure of donor to reserve sufficient donee himself, spouse or children under
property to pay off existing debts his parental authority
3. Inofficiousness, that is, the donation 3. Donee unduly refuses to give support to
exceeds that which the donor can give by will donor when legally or morally bound to
4. Birth, appearance or adoption of a child give support to donor

AUTOMATIC REVOCATION BIRTH OF NON- INGRTITAUD


 In contracts providing for automatic CHILD FULFILLMEN E
revocation, judicial intervention is necessary T OF
not for purposes of obtaining a judicial CONDITION
declaration rescinding a contract already Ipso jure Needs court Needs court
deemed rescinded by virtue of an agreement revocation, no action action
providing for rescission even without judicial need for
intervention, but in order to determine action, court
whether or not the rescission was proper the decision is
stipulation of the parties providing for merely
automatic revocation of the deed of donation, declaratory
without prior judicial action for that purpose, Extent: Extent: whole Extent: Whole
is valid subject to the determination of the portion which portion but portion
propriety of the rescission sought. Where may impair court may returned
such propriety is sustained, the decision of legitime of rule partial
the court will be merely declaratory of the heirs revocation
revocation, but it is not in itself the only
revocatory act. Zamboanga Barter Traders Property must Property in Property to be
v. Plagata, [G.R. No. 148433] be returned excess returned
Alienation/mor Alienations/m Prior ones are
Revocation Of Donations tgages done ortgages void; demand
 Affects the whole donation prior to imposed are value of
 Applies only to donation inter vivos recording in void unless property
 Not applicable to onerous donations Register of registered when
Deeds: with Register alienated and
 Donor can revoke donation if the donee
If already sold of Deeds cannot be
fails to comply with the conditions imposed or cannot be recovered or
by the donor. Prescription: 4 years from the returned – the redeemed
non-compliance with condition. value must be from 3rd
returned persons
 X donated a parcel of land to the University If mortgaged –
on the condition that the latter will establish donor may
a medical college named after X. After 50 redeem the
years, X’s heirs filed annulment for failure to mortgage with
abide by the condition. Can this be revoked? right to
recover from 6. Effect of declaration as inofficious: the
donee donation is annulled only as to the
Fruits to be Fruits to be portion diminishing the legitime
returned at returned at
filing of action filing of  Cause of action arising from the
for revocation complainant inofficiousness of donation arises only upon
Prescription of Prescription is Prescription is death of the donor, as the value of the
action is 4 4 years from 1 year from donation will be contrasted with the net value
years from non- knowledge of of the estate of the donor decedent. Eloy
birth, etc. fulfillment fact and it Imperial v. CA,[ G.R. No. 112483 (1999)]
was possible
for him to Checklist For Donation:
bring action 1. Whether onerous or gratuitous – if onerous,
Action cannot Action cannot governed by law on contracts
be renounced be renounced 2. If gratuitous, whether mortis causa or inter
in advance vivos – if mortis causa, governed by law on
Right of action Right of action Heirs cannot succession
transmitted to at instance of file action 3. If inter vivos, whether perfected or not (made
heirs donor but known to the donor). If no perfection,
may be donation is void.
transmitted to 4. If perfected, check for the capacity of the
heirs donor to give and the donee to receive. If no
Action extends Action does capacity, donation is void.
to donee’s not extend to 5. Compliance with Art 748 (movable) and 749
heirs donee’s heirs (immovable) of NCC. Non-compliance,
donation is void.
Exception to rule on intransmissibility of
action with regard to revocation due to ILLEGAL AND IMPOSSIBLE CONDITIONS
ingratitude: - In Simple/Remunatory donations – shall be
1. Personal to the donor; general rule is heir considered as not imposed (Art 727)
cannot institute if donor did not institute - In Onerous/Contract – annuls obligation;
2. Heirs can only file in the following cases: obligation and conditions are void (Art 1183)
a. Donor has instituted proceedings but dies
before bringing civil action for revocation N. Other Modes of Acquiring
b. Donor already instituted civil action but Ownership
died, heirs can substitute 1. LAW
c. Donee killed donor or his ingratitude
caused the death of the donor Refers to those instances where the law,
d. Donor died w/o having known the independently of the other modes of acquiring
ingratitude done ownership, automatically and directly vests the
e. Criminal action filed but abated by death ownership of the thing in a certain individual
3. Can only make heirs of donee liable if once the prescribed requisites or conditions are
complaint was already filed when donee died present or complied with (Jurado).

Inofficious donations: 2. PRESCRIPTION


1. Shall be reduced with regard to the PRESCRIPTION is a mode by which one acquires
excess ownership and other real rights thru lapse of
2. Action to reduce shall be filed by heirs time; also a means by which one loses
who have right to legitime at time of ownership, rights and actions; retroactive from
donation the moment period began to run; founded on
3. Donees/creditors of deceased donor grounds of public policy; regarded as a statute of
cannot ask for reduction of donation repose
4. If there are 2 or more donation: recent
ones shall be suppressed Kinds:
5. If 2 or more donation at same time – 1. Acquisitive
treated equally and reduction is pro rata General Requisites:
but donor may impose preference which A. Capacity to acquire by prescription
must be expressly stated in donation B. Thing capable of acquisition by
prescription
C. Possession of thing under certain
conditions
D. Lapse of time provided by law
2. Extinctive – also called as limitation of actions
Morales v CFI, 97 SCRA 872, 1980

Who may acquire by prescription


1. Person who is capable of acquiring property
by other legal modes
2. State
3. Minors – through guardians or personally

Against whom prescription may run


1. Minors and incapacitated person who
have guardians
2. Absentees who have administrators
3. Persons living abroad who have
administrators
4. Juridical persons except the state with
regard to property not patrimonial in
character
5. Between husband and wife
6. Between parents and children (during
minority/insanity)
7. Between guardian and ward (during
guardianship)
8. Between co-heirs/co-owners
9. Between owner of property and
person in possession of property in concept
of holder

Prescription does NOT run Re
1. Between husband and wife, even asonable belief that person who transferred
though there be a separation of property the thing is the owner and could validly
agreed upon in the marriage settlements or transmit ownership
by judicial decree  Must exist throughout the entire period
2. Between parents and children, during required for prescription
the minority or insanity of the latter
3. Between guardian and ward during JUST TITLE (TRUE and VALID) – must be
the continuance of the guardianship proved and never presumed; only Titulo Colorado
is required
Things subject to prescription: all things  Titulo Colorado – such title where there was a
within the commerce of men mode of transferring ownership but
1. Private property something is wrong because the grantor is
2. Patrimonial property of the State not the owner
 Titulo putativo - a person believes he has
Things not subject to prescription obtained title but he has not because there
1. Public domain was no mode of acquiring ownership, as
2. Intransmissible rights when one is in possession of a thing in the
3. Movables possessed through a crime mistaken belief that it had been bequeathed
4. Registered land to him. Doliendo v Biarnesa, 7 Phil. 232,
1906
Renunciation of Prescription  Title must be one which would have been
 Persons with capacity to alienate may sufficient to transfer ownership if grantor had
renounce prescription already obtained but been the owner
not the right to prescribe in the future  Through one of the modes of transferring
 May be express or tacit ownership but there is vice/defect in capacity
 Prescription is deemed to have been of grantor to transmit ownership
tacitly renounced; renunciation results from
the acts w/c imply abandonment of right IN CONCEPT OF OWNER
acquired  Possession not by mere tolerance of owner
 Creditors and persons interested in but adverse to that of the owner
making prescription effective may avail it  Claim that he owns the property
themselves notwithstanding express or tacit
renunciation PUBLIC, PEACEFUL & UNINTERRUPTED
 Must be known to the owner of the
PRESCRIPTION OF OWNERSHIP AND OTHER thing
REAL RIGHTS  Acquired and maintained w/o violence
 Uninterrupted (no act of deprivation
Kinds of Acquisitive prescription by others) in the enjoyment of property
1. Ordinary
a. Possession in good faith INTERRUPTION
b. Just title 1. Natural
c. Within time fixed by law A. Through any cause, possession ceases for
i. 4 years for movables more than 1 year
ii. 8 years for immovables B. If 1 year of less – as if no interruption
d. In concept of an owner 2. Civil
e. Public, peaceful, uninterrupted A. Produced by judicial summons; EXCEPT:
i. Void for lack of legal solemnities
2. Extra-ordinary ii. Plaintiff desists from complaint/allows
a. Just title is proved proceedings to lapse
b. Within time fixed by law iii. Possessor is absolved from complaint
i. 10 years for movables  Express or tacit renunciation
ii. 30 years for immovables  Possession in wartime
1. In concept of an owner
2. Public, peaceful, uninterrupted
RULES IN COMPUTATION OF PERIOD
 Present possessor may tack his possession to
GOOD FAITH
that of his grantor or predecessor in interest
 4.
Present possessor presumed to be in continuous O
possession even with intervening time unless bstructs or interferes with the free passage of
contrary is proved any public highway or street, or any body of
 First day excluded, last day included water
5. Hinders or impairs the use of property
TACKING PERIOD
 Lapse of time cannot legalize any nuisance,
 There must be privity between previous and
whether public or private
present possessor
 Possible when there is succession of rights
Kinds of Nuisances According To Number of
 If character of possession different: Persons Affected:
- predecessor in bad faith possessor in 1. Public (or common) nuisance – affects a
good faith – use extraordinary community or neighborhood or considerable
prescription number of persons
2. Private nuisance – affects a an individual or
PRESCRIPTION OF ACTIONS few persons only
PRESCRIPTIV ACTION
E PERIOD Other Classification:
30 yrs 1. action over immovables - 1. Nuisance Per Se – always a nuisance
from time possession is lost because of its nature regardless of location or
10 yrs 1. m surroundings
ortgage action 2. Nuisance Per Accidens – nuisance by
2. action upon written contract reason of location, surrounding or in the
3. action upon obligation manner it is conducted or managed.
created by law
4. action upon a judgment DOCTRINE OF ATTRACTIVE NUISANCE:
8 yrs 1. action to recover movables - 1. REASON for the doctrine: one who maintains
from time possession is lost on his premises dangerous instrumentalities
6 yrs 1. action upon an oral contract or appliances of a character likely to attract
2. action upon a quasi-contract children in play, and who fails to exercise
4 yrs 1. upon injury to rights of ordinary care to prevent children from
plaintiff playing therewith or resorting thereto, is
2. upon a quasi-delict liable to a child of tender years who is injured
1 yr 1. forcible entry and unlawful thereby, even if the child is technically a
detainer trespasser in the premises. The principal
2. defamation reason for the doctrine is that the condition
5 yrs 1. others where periods are not or appliance in question although its danger
fixed by law is apparent to those of age, is so enticing or
alluring to children of tender years as to
Rights not extinguished by prescription: induce them to approach, get on or use it,
1. Demand right of way and this attractiveness is an implied
2. Abate public/private nuisance invitation to such children. Hidalgo
3. Declare contract void Enterprises, Inc. v. Balandan, 91 Phil.
4. Recover property subject to expressed trust 488 (1952)
5. Probate of a will 2. Application to bodies of water – generally not
6. Quiet title applicable to bodies of water, artificial as well
as natural in the absence of some unusual
O. NUISANCE condition or artificial feature other than the
mere water and its location.
NUISANCE is any act, omission, establishment,
business, condition of property, or anything else Remedies against a public nuisance:
which: 1. Prosecution under the Penal Code or any local
1. Injures or endangers the health or safety of ordinance
others 2. Civil action
2. Annoys or offends the senses 3. Extra-judicial abatement
3. Shocks, defies or disregards decency or  All remedies may be simultaneously pursued
morality to remove a nuisance
Requirements for abatement of a
public/private nuisance by a private person:
1. Demand has been made
2. Demand has been rejected
3. Abatement be approved by the district health
officer and executed with the assistance of
the local police
4. Value of the destruction does not exceed
P3000
5. If public nuisance, it must be specially
injurious to him

A private person or a public official extra-


judicially abating a nuisance shall be liable
for damages:
1. If he causes unnecessary injury
2. If an alleged nuisance is later declared by the
courts to be not a real nuisance

Remedies against a private nuisance:


1. Civil action
2. Abatement, without judicial proceedings

NOTE:
1. No legalization of nuisance, whether private
or public, by prescription
2. Even if nuisance no longer exists, the
aggrieved person may still pursue a civil
action for damages for the injuries suffered
during the existence of nuisance
3. Subsequent owner of the property, having full
knowledge of the existence of the nuisance,
did not remove the nuisance is solidarily
liable for the injuries and damages caused
4. Owner of nuisance property is not entitled to
compensation
5. Civil action against a public nuisance shall be
commenced by the mayor of the locality
6. A private person may commence a civil
action to eliminate a public nuisance only if
he suffered a particular harm or injury which
is different from the harm or damage suffered
by the general public by reason thereof
OBLIGATIONS by reason of which the debtor is bound in favor
of the creditor to perform the obligation. It can
be established by various sources of obligations
A. GENERAL PROVISIONS (law, contract, quasi-contracts, delicts, and
quasi-delicts) and may arise either from bilateral
================================ or unilateral acts of persons.
TOPICS UNDER THE SYLLABUS
A. GENERAL PROVISIONS D. OBJECT/ SUBJECT MATTER: the prestation
1. Definition or conduct which has to be observed by the
2. Elements of an Obligation debtor/obligor. It is not a thing but a particular
conduct of the debtor.
3. Different Kinds of Prestation
4. Classification of Obligations REQUISITES OF A VALID PRESTATION:
5. Sources of Obligations a. Licit
A. Art. 1157 b. Possible
B. Natural obligations c. Determinate/ Determinable
C. Extra-contractual obligations d. Must have pecuniary value

========================================= Ang Yu Asuncion vs Court of Appeals [G.R.


TOPICS UNDER THE SYLLABUS No. 109125, December 2, 1994].
A. GENERAL PROVISIONS
The obligation is constituted upon the
1. Definition
concurrence of the essential elements thereof,
=========================================
viz.: (a) The vinculum juris or the juridical tie
which is the efficient cause established by the
1. DEFINITION various sources of obligations (law, contracts,
quasi-contracts, delicts and quasi-delicts); (b)
OBLIGATION: the object which is the prestation or conduct,
1. A juridical necessity to give, to do or not to required to be observed (to give, to do, or not to
do. (Art. 1156) do); and (c) subject-persons who, viewed from
2. It is a “legal bond whereby constraint is laid the demandability of the obligation, are the
upon a person or group of persons to act or active (obligee) and the passive (obligor)
forbear on behalf of another person or group of subjects.
persons.”1

========================================= NOTE: The form in which the obligation is


TOPICS UNDER THE SYLLABUS manifested is sometimes added as a fifth
A. GENERAL PROVISIONS element. This element, however, cannot be
2. Elements of an Obligation considered as essential as there is no particular
========================================= form required to make obligations binding,
except in rare cases.
2. ELEMENTS OF AN OBLIGATION
=========================================
ELEMENTS OF AN OBLIGATION: ARTS. 1156 TOPICS UNDER THE SYLLABUS
– 1162 (PAVO) A. GENERAL PROVISIONS
A. PASSIVE SUBJECT (obligor/debtor): one who
has the duty of giving, doing or not doing;
person bound to the fulfillment
3. Different Kinds of Prestation
=========================================
B. ACTIVE SUBJECT (obligee/creditor): one in
whose favor the obligation is constituted; person 3. DIFFERENT KINDS OF OBLIGATION
entitled to demand a) To give
b) To do
C. VINCULUM JURIS/ LEGAL TIE: the efficient c) Not to do – consists in abstaining from some
cause or the juridical tie between two subjects act, includes “not to give,” both being negative
obligations
1 William F. Elliot, Commentaries on the Law of Contracts,
Volume 1, 1913 edition, Indianapolis, The Bobbs-Merrill
Company, page 6, citing Anson Cont. 5, 23.

CIVIL LAW REVIEWER Page 85 of 383


conscience of the
========================================= debtor
TOPICS UNDER THE SYLLABUS
A. GENERAL PROVISIONS =========================================
TOPICS UNDER THE SYLLABUS
4. Classification of Obligations A. GENERAL PROVISIONS
=========================================
5. Sources of Obligations
4. CLASSIFICATION OF OBLIGATIONS
=========================================
A. Viewpoint of Sanction
a. Civil Obligations – give a right of action 5. SOURCES OF OBLIGATION
to compel their performance
A. ARTICLE 1157. OBLIGATIONS ARISE
b. Natural Obligations – not based on
FROM
positive law but on equity and natural
(1) Law;
law, do not grant a right of action to (2) Contracts;
enforce their performance, but after (3) Quasi-contracts;
voluntary fulfillment by the obligor, they (4) Acts or omissions punished by law; and
authorize retention of what has been (5) Quasi-delicts
delivered or rendered by reason thereof.
c. Moral Obligations – those that cannot NOTE: The list is exclusive (Sagrado Orden v.
be enforced by action but which are Nacoco, [G.R. No. L-37756, June 30, 1952]).
binding on the party who makes it in However, some writers expressly recognize that
conscience and natural law. a UNILATERAL PROMISE can give rise to
obligations (Tolentino, Volume IV, p. 62).
B. Viewpoint of Performance
a. Positive Obligation – to give; to do. A.1. LAW (OBLIGATION EX LEGE)
b. Negative Obligation – not to do.  The law cannot exist as a source of
obligations, unless the acts to which its
C. Viewpoint of Subject Matter principles may be applied exist.
a. Personal Obligation
 Once the acts or facts exist, the
b. Real Obligation
I. Determinate or Specific obligations arising therefrom by virtue of
II. Generic the express provisions of the law are
III. Limited Generic entirely independent of the agreement of
the parties. And such obligations and
D. Viewpoint of Person Obliged their correlative rights are governed by
a. Unilateral – only one party is bound the law by which they are created.
b. Bilateral – both parties are bound
 It must be expressly or impliedly set
Distinguish a Civil Obligation from Natural forth and cannot be presumed.
Obligation
A.2. CONTRACTS (OBLIGATION EX
CONTRACTU)
CIVIL OBLIGATION NATURAL
 A juridical conventions manifested in
OBLIGATION
legal form, by virtue of which one or
Art. 1156 Arts. 1423- 1430 more persons bind themselves in favor
another, or others, or reciprocally, to the
Based on positive Based on equity and fulfillment of a prestation to give, to do,
law natural justice or not to do. (Sanchez Roman)
 Obligations arising from contracts have
Enforceable by court Cannot be compeled
the force of law between the
action by cour action but
contracting parties and should be
depends exclusively
complied with in good faith. (Art. 1159)
upon the good

CIVIL LAW REVIEWER Page 86 of 383


 The terms of the contracts determine the A.4. DELICTS (OBLIGATION EX MALEFICIO
OR EX DELICTO)
respective obligations of the parties.
 Article 100 of the Revised Penal Code –
 If the terms of the contract are clear and
Every person criminally liable for a felony is
leave no doubt upon the contracting
also civilly liable.
parties’ intention, such terms should be
 The civil liability springs out and is
applied in their literal meaning.
 Neither party may unilaterally evade his dependent upon the facts which, if true,
would constitute a crime.
obligation in the contract, unless the
 Such civil liability is a necessary
contract authorizes it or the other party
consequence of criminal responsibility, and
assents.
 Parties may freely enter into any is to be declared and generally enforced in
the criminal proceeding except where the
stipulations provided they are not
injured party reserves his right to avail
contrary to law, morals, good customs,
himself of it in a distinct civil action or in
public order or public policy.
cases where an independent civil action is
allowed by law.
A.3. QUASI-CONTRACTS (Obligation Ex
Quasi-Contractu) GOVERNING RULES:
 Juridical relations resulting from lawful, 1. Articles 100-113 of the RPC and other penal
laws subject to Art 2177 Civil Code (quasi-
voluntary and unilateral acts, which has
delict);
for its purpose, the payment of 2. Chapter 2, Preliminary title, on Human
indemnity to the end that no one shall be Relations ( Civil Code )
unjustly enriched or benefited at the 3. Title 18 of Book IV of the Civil Code on
expense of another. damages
 Distinguished from other Sources
(LUV) SCOPE OF CIVIL LIABILITY
a. The act giving rise to a quasi-contract 1. Restitution
2. Reparation for damage caused
must be LAWFUL distinguishing it from
3. Indemnity for Consequential damages
delict;
b. The act must be VOLUNTARY EFFECT OF ACQUITTAL IN CRIMINAL CASE
distinguishing it from a quasi-delict GENERAL RULE: The acquittal of the accused
which is based on fault or negligence; in the criminal case does not prejudice the civil
c. The act must be UNILATERAL action, in which the offended party may still be
distinguishing it from contract which is able to recover damages by a preponderance of
based on agreement. (Tolentino, Volume evidence.
IV, p. 68)
EXCEPTION: Where the judgment of acquittal
KINDS OF QUASI-CONTRACT contained a declaration that no negligence can
a. Negotiorum Gestio: is the voluntary
be attributed to the accused and that the fact
management of the property or affairs of
from which the civil action might arise did not
another without the knowledge or consent of
exist
the latter. (Art. 2144)
b. Solutio indebiti: is the juridical relation, CRIMES WITHOUT CIVIL LIABILITY
which is created when something is received 1. Contempt
when there is no right to demand it and it 2. Insults to persons in authority
was unduly delivered through mistake. (Art. 3. Gambling
2145) The requisites are: 4. Violations of traffic regulations (De
c. There is no right to receive the thing Leon, 2003 ed.,p. 23)
delivered;
d. The thing was delivered through mistake. EXTINGUISHMENT OF LIABILITY: The civil
e. Other cases (Art. 2164-2175) liability for crimes is extinguished by the same
causes provided by the Civil Code for the
extinguishment of other obligations.

CIVIL LAW REVIEWER Page 87 of 383


2.
A.5. QUASI-DELICT/TORTS (OBLIGATION EX It
QUASI-DELICTO/ EX QUASI MALEFICIO) is patrimonial, and presupposes a prestation.
 It is an act or omission arising from fault 3. The binding tie of these obligations is in
or negligence which causes damage to the conscience of man, for under the law, they
another, there being no pre-existing do not have the necessary efficacy to give rise
contractual relations between the parties to an action.
 ELEMENTS:
1. That there exists a wrongful act or EXAMPLES OF NATURAL OBLIGATIONS
omission imputable to the defendant by ENUMERATED UNDER THE CIVIL CODE:
1. Performance after the civil obligation has
reason of his fault or negligence;
2. That there exists a damage or injury, prescribed
2. Reimbursement of a third person for a
which must be proved by the person
debt that has prescribed
claiming recovery;
3. Restitution by minor after annulment of
3. That there must be a direct causal
contract
connection or a relation of cause and
4. Delivery by minor of money or fungible
effect between the fault or negligence
thing in fulfillment of obligation
and the damage or injury; or that the 5. Performance after action to enforce civil
fault or negligence be the cause of the obligation has failed
damage or injury. 6. Payment by heir of debt exceeding value
of property inherited
DISTINCT FROM A CRIME: An injured party or 7. Payment of legacy after will have been
his heirs has the choice of either:
declared void.
(a) An action to enforce civil liability arising from
crime under Article 100 of the RPC, or C. EXTRA-CONTRACTUAL OBLIGATIONS
(b) An action from quasi-delict under Articles
2176-2194 of the Civil Code.
NEGLIGENCE: Failure to observe for the
protection of the interests of another person, C.1. ESTOPPEL (Arts. 1431 – 1439)
that degree of care, precaution and vigilance ESTOPPEL - a condition or state by virtue of
which the circumstances justly demand, which an admission or representation is
whereby such other person suffers injury. US v.
rendered conclusive upon the person making it
Barrias, [23 Phil. 434, (1912)]
and cannot be denied or disproved as against
 ELEMENTS OF NEGLIGENCE: (DFI) the person relying thereon.
a. A duty on the part of the defendant
KINDS:
to protect the plaintiff from the
1. Estoppel in pais (by conduct)
injury of which the latter complains; a. Estoppel by silence
b. A failure to perform that duty; and b. Estoppel by acceptance of benefits
c. An injury to the plaintiff through
such failure. 2. Technical Estoppel
 TEST of NEGLIGENCE: “Would a prudent a. Estoppel by deed
man, in the position of the person to whom b. Estoppel by record
negligence is attributed, foresee harm to the c. Estoppel by judgment
person injured as a reasonable consequence d. Estoppel by laches
of the course about to be pursued?” Picart
C.2. LACHES OR STALE DEMANDS
v. Smith, [37 Phil. 809] LACHES – Failure or neglect, for an
unreasonable and unexplained length of time to
B. NATURAL OBLIGATIONS (Arts. 1423 –
do that which, by exercising due diligence, could
1430)
or should have been done earlier; it is
NATURAL OBLIGATIONS negligence or omission to assert a right within
1. They are real obligations to which the reasonable time warranting a presumption that
law denies an action, but which the debtor the party entitled to assert it either has
may perform voluntarily. abandoned it or declined to assert it

CIVIL LAW REVIEWER Page 88 of 383


2. Obligation to do or not to do
ELEMENTS (CDLI) 3. Breaches of obligations
1. Conduct on part of the defendant, or of one
A. Complete failure to perform
under whom he claims, giving rise to the
situation of which complaint is made and for B. Default or Delay (Art. 1169)
which the complaint seeks a remedy B.1. Mora solvendi
2. Delay in asserting the complainant’s B.2. Mora accipiendi
rights, the complainant having knowledge or B.3. Compesatio morae
notice, of the defendant’s conduct and having
C. Fraud
been afforded the opportunity to institute a suit
3. Lack of knowledge or notice on the part C.1. Waiver of future fraud is void
of the defendant that the complainant would (Art. 1171)
assert the right on which he bases his suit D. Negligence
4. Injury to the defendant in the event relief D.1. Ordinary Diligence
is accorded to the complainant, or the suit in not
D.2 Exceptions
held to be barred.
E. Contravention of the tenor of
Distinguish Laches from Prescription obligation
F. Fortuitous Event
LACHES PRESCRIPTION

Concerned with effect of Concerned with 4. Remedies of Obligations


delay fact of delay A. Specific Performance
Question of inequity of Question or A.1. Substituted performance by a
permitting the claim to be matter of time third person on obligation to deliver
enforced generic thing and in obligation to do,
unless a purely personal act
Not statutory Statutory
B. Rescission (resolution in
Applies in equity Applies at law reciprocal obligations)
C. Damages, in any event
Not based on a fixed time Based on a fixed
time D. Subsidiary remedies of creditors
(Art. 1177)
D.1. Accion subrogatoria
D.2. Accion pauliana
END OF DISCUSSION ON TOPIC
D.3. Accion directa (Arts. 1652,
A. GENERAL PROVISIONS
1608, 1729, 1893)
================================ ========================================
B. NATURE AND EFFECT OF TOPICS UNDER THE SYLLABUS
OBLIGATIONS B. NATURE AND EFFECT OF
================================ OBLIGATIONS
TOPICS UNDER THE SYLLABUS 1. Obligation to give
B. NATURE AND EFFECT OF =========================================
OBLIGATIONS Personal Obligations: obligations to do or not
1. Obligation to give to do; where the subject matter is an act to be
A. A determinate or specific thing done or not to be done
B. An indeterminate or generic a. Positive – obligation to do
b. Negative – obligation not to do
thing

CIVIL LAW REVIEWER Page 89 of 383


Real Obligations: obligations to give; where 4. To pay damages in case of breach of the
the subject matter is a thing which the obligor obligation by reason of delay, fraud, negligence
must deliver to the obligee or contravention of the tenor of the obligation.
a. Determinate or specific – object is
RIGHTS OF THE CREDITOR TO THE FRUITS
particularly designated or physically
1. Before Delivery – personal right
segregated from all other things of the 2. After Delivery – real right
same class
b. Generic –object is designated by its class RIGHTS OF THE CREDITOR IN REAL
or genus OBLIGATION TO GIVE (Art. 1165)
c. Limited Generic – generic objects 1. GENERIC REAL OBLIGATION (Obligation to
confined to a particular class deliver a generic thing):
a. Ex: An obligation to deliver one a. To ask for performance of the obligation
of my horses (Tolentino, Volume b. To ask that obligation be complied with at
IV, p. 91; De Leon, 2003 ed., p. 7) the expense of the obligor
c. To recover damages in case of breach of
1. OBLIGATION TO GIVE obligation

A. DUTIES OF OBLIGOR IN AN OBLIGATION NOTE: A generic real obligation can be


TO GIVE A DETERMINATE THING (Arts. performed by a third person since the object is
1163, 1164, 1166.)
expressed only according to its family or genus.
To preserve or take care of the thing due with
2. DETERMINATE OR SPECIFIC REAL
the diligence of a good father of a family
OBLIGATION (Obligation to deliver a
determinate thing):
EXCEPTION: if the law requires or the parties
a.To demand specific performance or
stipulate another standard of care
fulfillment (if it is still possible) of the
B. DUTIES OF OBLIGOR IN AN OBLIGATION obligation with a right to indemnity for
TO GIVE A GENERIC THING (Arts. 1246 AND damages
1170) b. To demand rescission of the obligation
with right to recover damages
To deliver the thing of the quality intended c.To demand payment of damages when it
by the parties, taking into consideration the is the only feasible remedy
purpose of the obligation, intent of the parties, d. If the obligor delays, or has promised
and other circumstances;
to deliver the same thing to two or more
To be liable for damages in case of fraud, persons who do not have the same interest,
negligence, or delay, in the performance of his he shall be responsible for any fortuitous
obligation, or contravention of the tenor thereof. event until he has effected delivery.

1. To deliver the fruits of the thing: Right to NOTE: In an obligation to deliver a determinate
the fruits of the thing from the time the thing, the very thing itself must be delivered and
obligation to deliver it arises; consequently, only the debtor can comply with
2. To deliver its accessions and accessories the obligation.
(Art. 1166)
a. Accessions – additions to or improvements WHEN OBLIGATION TO DELIVER THE THING
upon a thing. Ex: air conditioner in a car. AND FRUIT ARISES
b. Accessories – things joined to, or included
with the principal thing for its better use, 1. If the source of the obligation is law, quasi-
embellishment or completion. Ex: key of a contract, delict, quasi-delict, it arises from
house; frame of a picture (De Leon, 2003 the time designated by the law creating or
ed., pp. 37-38) regulating them;
3. To deliver the thing itself (Specific 2. If the source is contract, it arises from the
Performance) time of the perfection of the contract (i.e.
meeting of the minds between the parties),
unless

CIVIL LAW REVIEWER Page 90 of 383


a.the parties made a stipulation to the fulfillment of the against whom the
contrary, prestation to give, right may be
b. the obligation is subject to a suspensive to do or not to do. personally enforced
condition or period; arises upon fulfillment
of the condition or arrival of the period
c.in a contract to sell, the obligation arises ========================================
from the perfection of the contract even if TOPICS UNDER THE SYLLABUS
the obligation is subject to a suspensive B. NATURE AND EFFECT OF
condition or a suspensive period where the OBLIGATIONS
price has been paid
3. Breaches of obligations
========================================= ========================================
TOPICS UNDER THE SYLLABUS
B. NATURE AND EFFECT OF 3. BREACHES OF OBLIGATIONS (Arts. 1170
OBLIGATIONS – 1174)
A. Voluntary – debtor in the performance of the
2. Obligation to do or not to do obligation is guilty of:
========================================= 1. Delay (Mora)
2. Fraud (Dolo)
3. Negligence (Culpa)
2. OBLIGATION TO DO OR NOT TO DO
4. Contravention of the tenor of the
RIGHTS OF A CREDITOR IN PERSONAL obligation
OBLIGATION (TO DO OR NOT TO DO)
NOTE: debtor is liable for damages
A. POSITIVE PERSONAL OBLIGATIONS:
1. Performance at debtor’s cause: The B. Involuntary – debtor is unable to comply
obligee is entitled to have the thing done in a with his obligation due to fortuitous event/s
proper manner, by himself or by a third person,
at the expense of the debtor. NOTE: debtor is not liable for damages
2. To demand what has been poorly done be
A.1. DEFAULT OR DELAY
undone
GENERAL RULE: Those obliged to deliver or to
3. To recover damages because of breach of the
do something incur in delay from the time the
obligation
obligee judicially or extrajudicially demands
B. NEGATIVE PERSONAL OBLIGATION from them the fulfillment of their obligation.
1. To have it undone at the expense of the (Art. 1169)
obligor; and
2. To ask for damages EXCEPTION: Demand by the creditor shall not
be necessary in order that delay may exist:
DISTINGUISH PERSONAL RIGHT FROM (1) When the obligation or the law expressly so
REAL RIGHT declares;
(2) When from the nature and the circumstances
PERSONAL REAL of the obligation it appears that the designation
of the time when the thing is to be delivered or
Jus ad rem, a right Jus in re, a right the service is to be rendered was a controlling
enforceable only enforceable against motive for the establishment of the contract; or
against a definite the whole world (3) When the demand would be useless, as
person or group of when the obligor has rendered it beyond his
persons power to perform.

Right pertaining to a Right pertaining to a In reciprocal obligations, neither party incurs in


person to demand person over a delay if the other does not comply or is not
from another, as a specific thing, ready to comply in a proper manner with what is
definite passive without a definite incumbent upon him. From the moment one of
subject, the passive subject

CIVIL LAW REVIEWER Page 91 of 383


a
the parties fulfills his obligation, delay by the dishonest purpose or some moral obliquity and
other begins. conscious doing of wrong. Bad faith is thus
synonymous with fraud and involves a design to
NOTE: Art. 1169 is applicable only when the mislead or deceive another, not prompted by an
obligation is to do something other than the honest mistake as to one’s rights or duties, but
by some interested or sinister motive.
payment of money. In case of obligation for
payment of sum of money, the interest replaces
the damages.

KINDS OF DELAY:
1. Mora solvendi – delay or default committed by TYPES OF FRAUD:
debtor 1. Causal Fraud (Dolo Causante): fraud
2. Mora accipiendi – delay or default committed employed in the execution of the contract
by creditor 2. Incidental Fraud (Dolo Incidente): fraud
3. Compensatio Morae – default of both parties in performance of obligation already existing
in reciprocal obligations because of a contract
GENERAL RULE: An action or suit can be filed
at anytime after the non-compliance of the other
FRAUD IN THE CAUSAL FRAUD/
party. However, damages or interest shall only
PERFORMANCE/ DOLO CAUSANTE
start to run after judicial or extra-judicial
DOLO INCIDENTE (ART. 1338)
demand.
(ART. 1170)
EXCEPTION: In ejectment and consignment
Present during the Present during the
cases, the extra-judicial demand should first be
performance of a perfection of a
made prior to the filing of a civil suit.
pre-existing obligation contract
DEMAND IS NOT NECESSARY WHEN: Purpose is to evade Purpose is to secure
1. Law or obligation expressly declares so
the normal the consent of
2. Time is of the essence
3. Demand would be useless fulfillment of the another to enter into
obligation the contract
NOTE: In reciprocal obligations, a party does not
incur in delay for failure of the other party to Results in the breach Results in vitiation of
assume and perform the obligation imposed of an obligation consent; voidable
upon him/her. contract

A.2. FRAUD (Dolo) Gives rise to a right in Gives rise to a right of


It is the deliberate or intentional evasion of the favor of the creditor to an innocent party to
normal fulfillment of an obligation. (8 Manresa recover damages annul the contract
72)

It is the fraud in the performance or fulfillment NOTE: Future fraud cannot be waived. However,
of an obligation already existing, as the law does not prohibit renunciation of the
distinguished from the fraud referred to in action for damages on the ground of past fraud.
Article 1338 which is the cause of nullity of
contracts and which exists before and at the REMEDIES OF DEFRAUDED PARTY
moment of creating the obligation. a. Specific performance (Art 1233)
b. Resolve contract (Art 1191)
Samson vs Court of Appeals [G.R. No. c. Damages, in either case
108245, November 25, 1994].
A.3. NEGLIGENCE (Culpa)
Bad faith is essentially a state of mind  Any voluntary act or omission, there
affirmatively operating with furtive design or being no malice which prevents the
with some motive of ill-will. It does not simply normal fulfillment of an obligation
connote bad judgment or negligence. It imports

CIVIL LAW REVIEWER Page 92 of 383


 Consists in the omission of that diligence DISTINGUISH FRAUD FROM NEGLIGENCE
which is required by the nature of the
obligation and corresponds with the
FRAUD
circumstances of the persons, of the
NEGLIGENCE
time and of the place (Art. 1173)
There is deliberate There is no
intention to cause deliberate intention
damage. to cause damage.
KINDS OF NEGLIGENCE
a. Quasi-Delict (Culpa aquiliana/culpa Liability cannot be Liability may be
extra contractual) – source of obligation; mitigated. mitigated.
wrong or negligence committed independent
Presumed from the Must be clearly
of contract and without criminal intent
b. Contractual Negligence (Culpa breach of a proved
Contractual) – wrong or negligence in the contractual obligation
performance of a obligation/contract
Waiver for future Waiver for future
c. Criminal Negligence (Culpa
fraud is void. negligence may be
Criminal) – wrong or negligence in the
allowed in certain
commission of a crime
cases
INSTANCES WHERE THE LAW REQUIRES A
HIGHER STANDARD OF CARE:
DISTINGUISH NEGLIGENCE FROM CRIME
C.1. Banks – as a business affected with public
interest, and because of the nature of its NEGLIGENCE CRIME
functions, the bank is under obligation to treat
WHAT IT Any act with Acts
the accounts of its depositors with
PUNISHABLE fault or punishable by
meticulous care, always having in mind the
negligence law
fiduciary nature of their relationship. (Simex v.
CA, 183 SCRA 360) CONDITION Criminal intent Necessary
OF THE unnecessary
EXCEPTION: Extraordinary diligence does not MIND
cover transactions outside bank deposits, ie: LIABILITY Damages may Some crimes
commercial transactions (Reyes v. CA, 363 FOR be awarded to do not give
SCRA 51) DAMAGES injured party rise to civil
liability
C.2. Common Carriers – from the nature of their NATURE OF Violation of Public rights
business and for reasons of public policy, THE RIGHT private rights
common carriers are bound to observe VIOLATED
extraordinary diligence in the vigilance over the AMOUNT OF Preponderance Proof beyond
goods and for the safety of the passengers EVIDENCE of evidence reasonable
transported by them, according to all the doubt
circumstances of each case (Art. 1733)
COMPROMIS Can be Criminal
Diligence of a good father of a family: E compromised liability can
ordinary care or that diligence which an average as any other never be
or reasonably prudent person would exercise civil liability compromised
PRESUMPTIO Presumption of Presumption
over his own property.)
N negligence of innocence
NOTE: Rule on Standard of Care
KINDS OF NEGLIGENCE, DISTINGUISHED
 That which the law requires; or
 That stipulated by the parties; or
CULPA AQUILIANA CULPA CONTRACTUAL
 In the absence of the two, diligence of a
good father of a family

CIVIL LAW REVIEWER Page 93 of 383


Negligence is Negligence merely an impossible
substantive and incident of performance condition for
independent of an obligation existence

There may or may not There is a pre-existing Condition ONLY THE AFFECTED
be a pre-existing contractual relation IMPOSSIBLE BUT OBLIGATION IS VOID.
contractual obligation Obligation
DIVISIBLE
Source of the Source of the obligation
obligation is the is the breach of the
negligence itself contractual obligation A.4. CONTRAVENTION OF THE TENOR OF
THE OBLIGATION
Negligence must be Proof of existing of the
proved contract and its breach B. FORTUITOUS EVENT (Force Majeure)
is prima facie sufficient GENERAL RULE: No one should be held to
to warrant recovery account for fortuitous cases, which are those
situations that could not be foreseen, or which
Diligence in the Diligence in the though foreseen, were inevitable.
selection and selection and
supervision of the supervision of the EXCEPTION: There concurs a corresponding
employees is a employees is not fraud, negligence, delay or violation or
defense available as a defense contravention in any manner of the tenor of the
obligation.

EFFECTS OF CONTRIBUTORY NEGLIGENCE ELEMENTS OF A FORTUITOUS EVENT:


OF THE OBLIGEE 1. The cause of breach is independent of the
GENERAL RULE: Reduces or mitigates the debtor’s will.
damages which he can recover 2. The event must be unforeseeable or
unavoidable
EXCEPTION: If the negligent act or omission of 3. The events render performance impossible
the creditor is the proximate cause of the event, 4. The debtor must be free from any
which led to the damage or injury complained participation, or aggravation of the injury.
of, he cannot recover.
NOTE: In the case of Republic v. Luzon
EFFECTS OF IMPOSSIBLE AND ILLEGAL Stevedoring [G.R. No. L-21749, September
CONDITIONS 29, 1967], the Court held that the person
obliged to perform an obligation shall not be
CONDITION EFFECT ON EFFECT ON excused from a fortuitous event when the nature
OBLIGATIO CONDITION of the obligation requires the assumption of risk.
N In other words, it is not enough that the event
should not be foreseen or anticipated, but it
TO DO VOID VOID must be one that is impossible to foresee or to
impossible OR avoid.
illegal
========================================
NOT to Do an VALID VALID TOPICS UNDER THE SYLLABUS
Illegal Thing B. NATURE AND EFFECT OF
NOT to do an VALID DISREGARD OBLIGATIONS
impossible thing CONDITION
4. Remedies of obligations
Condition is pre- VALID VOID ========================================
existing and NOT
dependent on
the fulfillment of

CIVIL LAW REVIEWER Page 94 of 383


GENERAL RULE: The law protects the creditors. 3. Accion Directa - (Arts. 1652, 1608, 1729,
The creditors are given by law all possible 1893)
remedies to enforce such obligations.

A. SPECIFIC PERFORMANCE END OF DISCUSSION ON TOPIC


B. NATURE AND EFFECT OF
To demand specific performance or fulfillment OBLIGATIONS
of the obligation with a right to indemnity for ================================
damages

B. RESCISSION C. KINDS OF CIVIL



It means to abrogate the contract from the
OBLIGATIONS
beginning and to restore the parties to their
================================
relative positions as if no contract has been
TOPICS UNDER THE SYLLABUS
made.

It is “to declare the contract void at its C. KINDS OF CIVIL OBLIGATIONS
inception and to put an end to it as though it 1. Pure Obligations (Arts. 1179-1180)
never was.”2 2. Conditional Obligations (Art. 1181)

It is predicated on the breach of faith by any A. Suspensive Condition
party that violates the reciprocity between B. Resolutory Condition
them.
C. Potestative; casual or mixed
NOTE: In the case of Adorable v. Court of C.1. Obligations subject to
Appeals [G.R. No. 119466, November 25, potestative suspensive conditions
1999], the Court held that unless a debtor are void (Art. 1182)
acted in fraud of his creditor, the creditor has no
D. Effect of the happening of
right to rescind a sale made by the debtor to
suspensive condition or resolutory
someone on the mere ground that such sale will
prejudice the creditors’ rights in collecting later condition (Art. 1187)
on from the debtor. The creditor’s right against D.1. Extent of retroactivity
the debtor is only a personal right to receive E. Effect of improvement, loss or
payment for the loan; it is not a real right over deterioration of specific thing
the lot subject of the deed of sale transferring before the happening of a
the debtor’s property.3
suspensive condition in obligation
C. DAMAGES to do or not to do (Art. 1189)
To demand payment of damages when it is a F. Effect when a resolutory
feasible remedy
condition in obligation to do or not
D. SUSIDIARY REMEDIES OF CREDITORS to do happens and there is
1. Accion Subrogatoria – action which the improvement, loss or deterioration
creditor may exercise in the place of his of the specific thing (Art. 1190, par.
negligent debtor in order to preserve or recover
3)
for the patrimony of the debtor the product of
such action, and then obtain therefrom the 3. Obligation with a period or a term
satisfaction of his own credit (Art.1193)
2. Accion Pauliana – action to revoke or A. Presumption that period is for
rescind acts which the debtor may have done to the benefit of both debtor and
defraud his creditor.
creditor (Art. 1196)

2 SPOUSES VELARDE V. COURT OF APPEALS, [G.R. NO. 108346,


JULY 11,2001].
3 MELENCIO S. STA. MARIA, JR., OBLIGATIONS AND CONTRACTS:
TEXT AND CASES 101 (2 ND ED. 2003).

CIVIL LAW REVIEWER Page 95 of 383


B. Effect if suspensive period is for A. RESOLUTORY CONDITION
 Demandable at once
the benefit of both debtor and
 Once the condition is established or
creditor acknowledged, the right to demand
C. Effect if given to debtor alone performance immediately exists and
C.1. Instances when debtor losses therefore the obligation concomitant to the
benefit of period (Art. 1198) right can be demanded at once.
D. Resolutory period  It is also known as “condition subsequent”
 It extinguishes obligations
E. Definite or indefinite period
E.1. Instances when courts may fix NOTE: In case of a contract with a reciprocal
the period (Art. 1197) obligation, the obligation of one is a resolutory
E.2. Creditor must ask court to set condition of the obligation of the other, the non-
the period before he can demand fulfillment of which entitles the other party to
rescind the contract.
payment
4. Alternative or facultative (Art. B. SUSPENSIVE CONDITION
1199)  Not demandable at once
A. Difference between alternative  It gives rise to the performance of an
and facultative obligations obligation (ex. Contract to Sell)
 It is also known as “condition precedent”
B. Effect of loss of specific things or  It gives birth to obligations
impossibility of performance of
alternative, through fault of C. POTESTATIVE CONDITION
debtor/creditor or through The fulfillment of the condition entirely depends
upon the sole will of the debtor.
fortuitous events
GENERAL RULE: All potestative conditions are
========================================= void.
TOPICS UNDER THE SYLLABUS EXCEPTION: Potestative resolutory conditions
C. KINDS OF CIVIL OBLIGATION are not void. If the potestative condition is
1. Pure Obligations imposed not on the birth (suspensive) of the
========================================= obligation but on its fulfillment (resolutory), only
the condition is avoided, leaving unaffected the
1. PURE OBLIGATIONS obligation itself.
It is an unqualified obligation which is
demandable immediately. It is an obligation D. EFFECT OF SUSPENSIVE AND
whose performance does not depend upon a RESOLUTORY CONDITIONS
future and uncertain event, or past event Art. 1187:
unknown to the parties. (Art. 1179)  When the obligation imposes reciprocal
prestations, the fruits and interests during
========================================= the pendency of the condition shall be
TOPICS UNDER THE SYLLABUS deemed to have been mutually
C. KINDS OF CIVIL OBLIGATION compensated.
2. Conditional Obligations  If the obligation is unilateral, the debtor or
=========================================
obligor shall appropriate the fruits and
interests received, unless from the nature
2. CONDITIONAL OBLIGATIONS
It is exactly the reverse of a pure obligation. The and circumstances of the obligation it should
performance in conditional obligations depends be inferred that the intention of the person
upon a future or uncertain event or upon a past constituting the same is different.
event unknown to parties.

CIVIL LAW REVIEWER Page 96 of 383


D.1. Extent of Retroactivity
C. KINDS OF CIVIL OBLIGATION
 In resolutory conditions, retroactivity is 3. Obligations with a Period or Term
=========================================
irrelevant.

 In suspensive conditions, the effect of a


conditional obligation “to give” retroacts to 3. OBLIGATIONS WITH A PERIOD OR
the day of the constitution of the obligation TERM
(Art 1187)
 WITH A PERIOD – An obligation whose
demandability or extinguishment depends
E. IMPROVEMENT, LOSS, AND on a future and certain event; subject to the
DETERIORATION expiration of a term of period (Arts 1193,
Constructive fulfillment - The condition shall
1196)]
be deemed fulfilled when the obligor (debtor)
 PERIOD – Interval of time, which, exerting
voluntarily prevents its fulfillment (Art. 1186)
an influence on an obligation as a
NOTE: “LOSS” happens when the thing consequence of a juridical act, either
perishes, goes out of commerce, or it disappears suspends its demandability or produces its
in such a way that its existence is unknown or it extinguishment
REQUISITES:
cannot be recovered. (Art. 1189)
1. Future
2. Certain
E.1. Before the happening of a suspensive
3. Legally and physically possible
condition in an obligation to do or not to
do (Art. 1189) WHEN STIPULATION SAYS “PAYABLE WHEN
 If the thing is lost without the fault of debtor, ABLE”
the obligation shall be extinguished.  When the obligor binds himself to pay when
 If the thing is lost with the fault of debtor, he his means permit him to do so, the
shall be obliged to pay damages. obligation shall be deemed to be one with a
 If the thing deteriorates without the fault of period.
debtor, the impairment is to be borne by  Remedy:
creditor 1. Agreement among parties
 If the thing deteriorates with the fault of 2. Court shall fix period of payment when
debtor, the creditor may choose between parties unable to agree
rescission of the obligation and its
fulfillment, with indemnity for damages in KINDS OF OBLIGATIONS WITH A PERIOD:
1. According to effect:
either case
a. Resolutory (in diem) – demandable at
 If the thing improves by its nature or by
once but terminates upon arrival of the
time, the benefit shall inure to the benefit of
day certain
the creditor.
 Day certain – that which must
 If the thing improves at the expense of
necessarily come, although it may not be
debtor, he shall have no other right than
known when
that granted to the usufructuary. b. Suspensive (ex die) – obligation
becomes demandable on the day
E.2. When a resolutory condition in an
stipulated
obligation to do or not to do happens (Art.
2. According to source
1190, par. 3) a. Legal - when it is provided by laws
 In obligations to do and not to do, the court b. Conventional or Voluntary - when it is
shall determine the effect of the agreed to by the parties
extinguishment of the obligation c. Judicial - when it is fixed by the court
3. According to definiteness:
=========================================
TOPICS UNDER THE SYLLABUS

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4.
a.Definite - when it is fixed or it is known If
when it will come the debtor binds himself when his means
b. Indefinite - when it is not fixed or it is permit him to do so
not known when it will come
PERIOD, FOR WHOSE BENEFIT
GENERAL RULE: When a period is designated
for the performance or fulfillment of an
obligation, it is presumed to have been
established for the benefit of both parties.
EXCEPTION: When it appears from the tenor of
the obligation or other circumstances that the
TERM VS. CONDITION, DISTINGUISHED period has been established in favor of one or
the other.
TERM CONDITION
PERIOD FOR THE BENEFIT OF THE
Interval of time Fact or event which is
CREDITOR
which is future and future or uncertain or a
 Creditor may demand the fulfillment of the
certain past event unknown to
obligation at any time but the debtor cannot
the parties
compel him to accept before the expiration
Time w/c must Future and uncertain of the period
necessarily come fact or event which may
PERIOD FOR THE BENEFIT OF THE DEBTOR
although it may not or may not happen
 Debtor may oppose any premature demand
be known when
of the creditor but he may renounce the
Exerts an influence Exerts an influence benefit of the period by performing his
upon the time of upon the very existence obligation in advance (Manresa)
demandability or of the obligation itself WHEN DEBTOR LOSES RIGHT TO PERIOD
extinguishment of an (Art 1198)
1. Insolvency of debtor, unless security
obligation
provided
Does not have any Has retroactive effect 2. Did not deliver security promised
3. Impaired security through his own acts or
retroactive effect
through fortuitous event unless he gives new
unless there is an
securities equally satisfactory
agreement to the
4. Violates undertaking in consideration of
contrary
extension of period
When it is left When it is left 5. Attempts to abscond
exclusively to the will exclusively to the will of
=========================================
of the debtor, the the debtor, the TOPICS UNDER THE SYLLABUS
existence of the obligation is void C. KINDS OF CIVIL OBLIGATION
obligation is affected 4. Alternative or Facultative
Obligation
WHEN COURTS MAY FIX PERIOD: =========================================
1. If the obligation does not fix a period, but
from its nature and circumstances it can be 4. ALTERNATIVE OR FACULTATIVE
inferred that a period was intended by the OBLIGATION
parties (ARTS. 1199 – 1206)
2. If the duration of the period depends
upon the will of the debtor FACULTATIVE - only one prestation has been
3. In case of reciprocal obligations, when there agreed upon but another may be given in
is a just cause for fixing a period substitution

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2.
EFFECT OF LOSS OR DETERIORA0TION If
THRU NEGLIGENCE, DELAY OR FRAUD OF right of choice belongs to the creditor
OBLIGOR:  If 1 of the things is lost through a
 Of thing intended as substitute - no liability fortuitous event, the debtor shall
 Of the substitute after substitution is made – perform the obligation by delivering that
with liability which the creditor should choose from
among the remainder or that which
ALTERNATIVE – bound by different prestations remains if only 1 subsists
but only one is due  If the loss of 1 of the things occurs
through the fault of the debtor, the
RIGHT OF CHOICE IN ALTERNATIVE creditor may claim any of those
OBLIGATIONS subsisting or the price of that which,
GENERAL RULE: the right of choice belongs to
through the fault of the former, has
debtor
disappeared with a right to damages
EXCEPTION:
 If all the things are lost through the fault
1. Expressly granted to creditor
2. Expressly granted to third person of the debtor, the choice by the creditor
shall fall upon the price of any 1 of them,
LIMITATIONS ON THE RIGHT OF CHOICE OF also with indemnity for damages.
THE DEBTOR
The debtor shall not have the right to choose the REQUISITES FOR MAKING THE CHOICE:
prestations, which are: 1. Made properly so that creditor or his agent
a. Impossible will actually know
b. Unlawful 2. Made with full knowledge that a selection is
c. Those which could not have been the indeed being made
object of the obligation 3. Made voluntarily and freely
4. Made in due time – before or upon maturity
WHEN CONVERTED TO SIMPLE OBLIGATION: 5. Made to all proper persons
1. When the person who has a right of choice 6. Made w/o conditions unless agreed by the
has communicated his choice creditor
2. Only one is practicable 7. May be waived, expressly or impliedly

EFFECT OF LOSS OF OBJECTS OF DISTINGUISH ALTERNATIVE FROM


ALTERNATIVE OBLIGATIONS FACULTATIVE
1. If the right of choice belongs to the
debtor ALTERNATIVE FACULTATIVE
 If through a fortuitous event all were lost,
Various things are due Only one thing is due
debtor cannot be held liable for damages
 If 1 or more but not all of the things are but the giving but a substitute may
lost or one or some but not all of the principally of one is be given to render
prestations cannot be performed due to sufficient payment/fulfillment
fortuitous event or fault of the debtor, easy
creditor cannot hold the debtor liable for If one of prestations is If principal
damages because the debtor can still illegal, others may be obligations is void
comply with his obligation valid but obligation and there is no
 If all things, except one, were lost, the
remains necessity of giving
debtor must comply by performing that the substitute; nullity
which remain of P carries with it
 If all were lost by fault of the debtor the
nullity of S
later is liable for the value of the last
thing or service which became
impossible

CIVIL LAW REVIEWER Page 99 of 383


If it is impossible to If it is impossible to 2. Joint (Indivisible) Obligation
give all except one, give the principal, A. Obligation cannot be performed in
the last one must still the substitute does parts but debtors are bound jointly
be given not have to be given;
B. In case of failure of one joint
if it is impossible to
give the substitute,
debtor to perform his part (share),
the principal must there is default but only the guilty
still be given shall be liable for damages

Right to choose may The right of choice is


3. Solidary Obligation
be given either to given only to the
debtor or creditor debtor A. Mutual agency among solidary
debtors (Arts. 1214-1215)
B. Mutual guaranty among solidary
END OF DISCUSSION ON TOPIC debtors (Arts. 1216, 1217, 1222)
C. KINDS OF CIVIL OBLIGATION C. Each one of solidary creditors may
================================ do whatever may be useful to the
others, but not anything prejudicial
D. JOINT AND SOLIDARY to them (Art. 1212)
C.1. Effect of any novation,
OBLIGATION
compensation, confusion or
================================
TOPICS UNDER THE SYLLABUS remission of debt executed by a
solidary creditor
D. JOINT AND SOLIDARY OBLIGATION
1. Joint (Divisible) Obligation 4. Divisible and Indivisible (Art.
A. Concurrence of two or more 1225)
creditors and/or two or more debtors
A.1. Joint obligation is presumed, 5. Obligations with a Penal Clause
unless otherwise indicated by the (Arts. 1226, 1228-1230)
law or nature of obligation (Art. =========================================
1207) TOPICS UNDER THE SYLLABUS
A.2. Obligation presumed to be D. JOINT AND SOLIDARY
divided into as many equal shares OBLIGATIONS
as there are creditors or debtors 1. Joint (Divisible) Obligation
A.3. Each credit is distinct from one =========================================
another, therefore a joint debtor 1. JOINT (DIVISIBLE) OBLIGATION
cannot be required to pay for the
share of another with debtor, JOINT OBLIGATION (Obligacion
Mancumunada) – The whole obligation is to be
although he may pay if he wants to
paid or fulfilled proportionately by different
(Art. 1209)
debtors or demanded proportionately by the
A.4. Insolvency of a joint debtor, different obligees
others not liable for his share (Art.
1209) GENERAL RULE: The presumption of the law is
that an obligation is always joint.

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383
EXCEPTIONS TO THE PRESUMPTION be enforced only by proceeding against all of
1. When expressly stated that there is the debtors.
solidarity 2. If there are 2 or more creditors, the
2. When the law requires solidarity concurrence or collective act of all the
3. When the nature of the obligation requires
creditors, although each for his own share, is
solidarity
also necessary for the enforcement of the
4. When a charge or condition is imposed upon
obligation
heirs or legatees and the testament
expressly makes the charge or condition in EFFECT OF BREACH
solidum (Manresa) If one of the joint debtors fails to comply with his
5. When a solidary responsibility is imputed by undertaking, the obligation can no longer be
a final judgment upon several defendants fulfilled or performed. Consequently, it is
(Gutierrez v. Gutierrez) converted into one of indemnity for damages.
Innocent joint debtor shall not contribute to the
EFFECTS OF JOINT LIABILITY
1. Demand on one produces delay only with indemnity beyond their corresponding share of
respect to the debt the obligation.
2. Interruption in payment by one does not
INDIVISIBILITY and SOLIDARITY,
benefit or prejudice the other
3. Vices of one debtor to creditor has no effect DISTINGUISHED
on the others
INDIVISIBILITY SOLIDARITY
4. Insolvency of one debtor does not affect
other debtors Refers to the Refers to the legal tie
prestation which and consequently to
JOINT DIVISIBLE OBLIGATIONS
1. Each creditor can demand for the payment constitutes the the subjects or parties
of his proportionate share of the credit, while object of the of the obligation
each debtor can be held liable only for the obligation
payment of his proportionate share of the
Plurality of subjects Plurality of subjects is
debt
is not required indispensable
2. A joint creditor cannot act in representation
of the other creditors while a joint debtor In case of breach, When there is liability
cannot be compelled to answer for the acts obligation is on the part of the
or liability of the other debtors converted into 1 of debtors because of the
indemnity for breach, the solidarity
NOTE: Unless there is no specification as to
damages because among the debtors
their proportionate share in the credit or in the
debt, the creditors and debtors in a joint of breach, remains
obligation shall be entitled or shall make indivisibility of the
payment in equal proportion. obligation is
terminated
=========================================
TOPICS UNDER THE SYLLABUS
D. JOINT AND SOLIDARY PASSIVE SOLIDARITY SURETYSHIP
OBLIGATIONS Stands for some other person
2. Joint (Indivisible) Obligation May be reimbursed after payment
========================================= liable for his and co- only the
debtor's share principal's share
2. JOINT (INDIVISIBLE) OBLIGATION
Primary Secondary
1. If there are 2 or more debtors, the fulfillment
Extension of time, Released
of or compliance with the obligation requires not released
the concurrence of all the debtors, although
each for his own share. The obligation can

CIVIL LAW REVIEWER Page 101 of


383
========================================= a. Payment made before debt is due, no
TOPICS UNDER THE SYLLABUS interest can be charged, otherwise –
D. JOINT AND SOLIDARY interest can be charged
OBLIGATIONS b. Insolvency of one – others are liable for
3. Solidary Obligation share pro-rata
========================================= c. If different terms and conditions – collect
only what is due, later on collect from
3. SOLIDARY OBLIGATION any
d. No reimbursement if payment is made
SOLIDARY OBLIGATION (Obligacion after prescription or became illegal
Solidaria) – must be expressed in stipulation or e. Remission made after payment is made –
provided by law or by nature of obligation co-debtor still entitled to reimbursement
f. Effect of insolvency or death of co-debtor
1. Active – on the part of creditor or oblige – still liable for whole amount
EFFECTS: g. Fault of any debtor – everyone is
 Death of 1 solidary creditor transmits share responsible – price, damage and interest
to heirs (but collectively) h. Complete/ personal defense – total or
 Each creditor represents the other in the act partial ( up to amount of share only ) if
of recovery of payment not personal to him
 Credit is divided equally between creditors
as among themselves EFFECT OF LOSS OR IMPOSSIBILITY OF THE
 Debtor may pay any of the solidary creditors PRESTATION:
1. If without fault – no liability
2. Passive – on the part of debtors or obligors 2. If with fault – there is liability (also for
EFFECTS: damage and interest)
 Each debtor may be requested to pay whole 3. Loss due to fortuitous event after default –
obligation with right to recover from co- there is liability (because of default)
debtors
 Interruption of prescription to one creditor NOTE: The law clearly provides that the creditor
affects all who may have executed any acts mentioned in
 Interest from delay on 1 debtor is borne by Art. 1215 (Novation, Compensation, Merger or
all Confusion), as well as he or she who collects the
debts, shall be liable to the others for the share
3. Mixed – on the part of the obligors and in the obligation corresponding to them.
obligees, or the part of the debtors and the
creditors =========================================
TOPICS UNDER THE SYLLABUS
4. Conventional – agreed upon by the parties D. JOINT AND SOLIDARY
OBLIGATIONS
5. Legal – imposed by law 4. Divisible and Indivisible Obligation
 Instances where law imposes =========================================
solidary obligation:
a. Obligations arising from tort 4. DIVISIBLE AND INDIVISIBLE OBLIGATION
b. Obligations arising from quasi-contracts
c. Legal provisions regarding obligation of DIVISIBLE - obligation that is capable of partial
devisees and legatees performance
d. Liability of principals, accomplices, and  Execution of certain no of days work
accessories of a felony  Expressed by metrical units
e. Bailees in commodatum  Nature of obligation – susceptible of
partial fulfillment
 EFFECTS:

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INDIVISIBLE - one not capable of partial obligation
performance
 To give definite things Debtor may not Debtor may choose
choose between among the
 Not susceptible of partial performance
principal and penalty prestations
 Provided by law
 Intention of parties

NOTES: PENAL CLAUSE DISTINGUISHED FROM


FACULTATIVE OBLIGATION
 Divisibility or indivisibility of the obligation
PENAL CLAUSE FACULTATIVE
refers to the performance of the prestation OBLIGATION
and not to the thing which is the object Penalty of payment Power to choose
thereof in lieu of the prestation is absolute
 Intention of parties should be taken into principal must be
account to determine whether obligation is expressly granted
divisible or not Creditor may Creditor may not
demand both if demand both principal
========================================= expressly granted and penalty
TOPICS UNDER THE SYLLABUS
D. JOINT AND SOLIDARY
OBLIGATIONS
5. Obligations with a Penal Clause
=========================================

5. OBLIGATIONS WITH A PENAL CLAUSE

WITH A PENAL CLAUSE – One to which an


accessory undertaking is attached for the PENAL CLAUSE DISTINGUISHED FROM
GUARANTEE
purpose of insuring its performance by virtue of
PENAL CLAUSE GUARANTEE
which the obligor is bound to pay a stipulated
Insure performance of principal obligation
indemnity or perform a stipulated prestation in
Accessory and subsidiary obligations
case of breach.
Obligation to pay the Object of the
penalty is different from principal and the
PENAL CLAUSE DISTINGUISHED FROM the principal obligation guarantee is the
CONDITION same
PENAL CLAUSE CONDITION Principal and penalty No
Constitutes an Not an obligation can be assumed by the
obligation same person
Demandable in default Never demandable Penalty is extinguished Guarantee subsists
Obligation exists No obligation until by the nullity of the even if the principal
condition happens principal obligation is
Depends on the non- Principal itself is voidable,
performance of the dependent on an unenforceable or a
principal obligation uncertain event natural one, same
applies if penal
clause is assumed
PENAL CLAUSE DISTIGUISHED FROM by a guarantee
ALTERNATIVE OBLIGATIONS
PENAL CLAUSE ALTERNATIVE PURPOSE OF PENALTY:
OBLIGATIONS 1. Funcion coercitiva o de garantia – to
Only 1 prestation Several prestations insure the performance of the obligation
Impossibility of Impossibility of 1 2. Funcion liquidatoria – to liquidate the
principal extinguishes prestation does not amount of damages to be awarded to the
penalty extinguish the

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383
1.
injured party in case of breach of the P
principal obligation (compensatory), and artial/irregular performance
3. Funcion estrictamente penal – in certain 2. Penalty provided is iniquitous/
exceptional cases, to punish the obligor in unconscionable
case of breach of the principal obligation
(punitive). END OF DISCUSSION ON TOPIC
CHARACTERISTICS OF PENAL CLAUSES: D. JOINT AND SOLIDARY OBLIGATION
1. Subsidiary - As a general rule, only penalty ================================
can be demanded, principal cannot be
demanded, except: Penalty is joint or E. EXTINGUISHMENT OF
cumulative
2. Exclusive - takes place of damage, damage OBLIGATIONS
can only be demanded in the ff. cases: ================================
a. Stipulation – granting right TOPICS UNDER THE SYLLABUS
b. Refusal to pay penalty
c. With dolo ( not of creditor )
E. EXTINGUISHMENT OF
PENALTY AS SUSTITUTE FOR DAMAGES OBLIGATIONS
GENERAL RULE: the penalty fixed by the 1. Payment (Arts. 1236-1238)
parties is or substitute for damages in case of
A. Dation in payment (Art. 1245)
breach
EXCEPTIONS: B. Form of payment (Art. 1249)
1. When there is a stipulation to the contrary C. Extraordinary inflation or
2. When the debtor is sued for refusal to pay deflation (Art. 1250)
the agreed penalty; and
3. When debtor is guilty of fraud D. Application of payment (Arts.
1252-1254)
DOUBLE FUNCTIONS OF PENALTY E. Tender of payment and
1. to provide for liquidated damages
2. to strengthen the coercive force of consignation (Arts. 1256-1261)
the obligation by the threat of greater
responsibility in the event of breach 2. Loss of determinate thing due or
impossibility or difficulty of
KINDS OF PENALTIES:
1. Legal – constituted by law performance (Arts. 1262, 1266-
2. Conventional – constituted by 1267)
agreement of the parties
3. Compensatory – established
3. Condonation or remission of debt
for the purpose of indemnifying the damages
A. Express condonations and
suffered by the obligee or creditor in case of
breach of the obligation required formality thereof (Art.
4. Punitive – established for the 1270)
purpose of punishing the obligor or debtor in B. Implied (Arts. 1271, 1272,
case of breach of the obligation 1274)
5. Subsidiary or alternative- in
case of non-performance only the penalty is
demandable 4. Confusion or Merger of Rights
6. Joint or cumulative – both the (Arts. 1275, 1272)
principal undertaking and the penalty may
be demanded 5. Compensation
CAUSES FOR REDUCTION OF PENALTY: A. Kinds (Arts. 1278, 1279)

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383
A.1. Legal compensation (Arts. Delivery of money and performance, in any
other manner of the obligation
1286-1290)
A.2. Agreement (Art. 1282) REQUISITES FOR VALID
A.3. Voluntary (Art. 1282) PAYMENT/PERFORMANCE
A.4. Judicial (Art. 1283) 1. With respect to prestation itself
a. Identity
A.5. Facultative b. Integrity or completeness
B. Obligations not compensable c. Indivisibility
(Arts. 1287-1288)
2. With respect to parties - must be made by
proper party to proper party
6. Novation (Arts. 1291-1288) a. Payor
1. Payor - the one performing, he can be the
========================================= debtor himself or his heirs or assigns or his
TOPICS UNDER THE SYLLABUS agent, or anyone interested in the fulfillment of
E. EXTINGUISHMENT OF the obligation; can be anyone as long as it is
OBLIGATIONS with the creditor's consent
1. Payment 2. 3RD person pays/performs - only the
========================================= creditor's consent; if performance is done also
with debtor's consent - he takes the place of the
Principal Modes: (PAL-CoCoCo-No) debtor. There is subrogation except if the 3rd
1. Payment or performance
person intended it to be a donation
2. Loss of the thing due
3. 3rd person pays/performs with consent of
3. Condonation or remission of debt
4. Confusion or merger of rights creditor but not with debtor's consent, the
5. Compensation repayment is only to the extent that the
6. Novation payment has been beneficial to debtor
b. Payee
Other Modes: i. Payee - creditor or obligee or successor
7. Annulment in interest of transferee, or agent
8. Rescission ii. 3rd person - if any of the ff. concur:
9. Fulfillment of resolutory condition a.It must have redounded to the
10. Prescription obligee's
b. benefit and only to the extent of
Not Stated in the Civil Code: such benefit
11. Death of a Party in Personal Obligations c.It falls under art 1241, par 1,2,3 - the
12. Mutual Desistance
benefit is total so, performance is total
13. Compromise
iii. Anyone in possession of the credit - but
14. Impossibility of Fulfillment
15. Happening of Fortuitous Event will apply only if debt has not been
16. Arrival of Resolutory Period previously garnished
17. Will of One of the Parties Due to
Indeterminate Duration or Nature of the PRINCIPLE OF INTEGRITY (Art. 1233)
GENERAL RULE: A debt shall not be
Prestation/ Unilateral Withdrawal in
understood to have been paid unless a thing or
Partnerships
18. Change of Civil Status service of which the obligation consists has been
19. Rebus Sic Stantibus (Art. 1267) completely delivered or rendered, as the case
20. Want of Interest in Some Circumstances maybe.
21. Abandonment in Special Cases EXCEPTIONS:
22. Insolvency Judicially Declared and Debtor is 1. When the obligation has been substantially
Discharged performed in good faith (Art. 1234);
2. When the obligee accepts performance
despite its incompleteness or irregularity and
1. PAYMENT OR PERFORMANCE without expressing any protest or correction.
(Art. 1235)

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1.
PERSONS FROM WHOM THE CREDITOR P
MUST ACCEPT PAYMENT ayment by debtor must be made in good faith
1. Debtor himself or his legal representative 2. Creditor must be in possession of the
2. Any person who has interest in the credit and not merely the evidence of
obligation (i.e., guarantor) indebtedness
3. A 3rd person who has no interest in the
obligation, when there is a stipulation to the NOTE: With respect to time and place of
contrary payment - must be according to the obligation

PAYMENT MADE BY 3Rd PERSON WHERE PAYMENT SHOULD BE MADE


1. In the place designated in the obligation
 If payment was made without the knowledge
2. If there is no express stipulation and the
or against the will: the recovery is only up to
undertaking is to deliver a specific thing – at the
the extent or the amount of the debt at the
place where the thing might be at the moment
time of the payment; the defense may only
the obligation was constituted
be availed of by the obligor 3. In other case – in the place of the domicile of
 If payment was with knowledge: the rights of the debtor
reimbursements and subrogation are  Time of payment - time stipulated
acquired by the 3rd person  Effect of payment – extinguish obligation
Except: order to retain debt
TO WHOM PAYMENY MUST BE MADE
1. The person in whose favor the obligation has
SUBSTANTIAL PERFORMANCE
been constituted A debt shall not be understood to have been
2. His successor-in-interest
paid unless the thing or service in which the
3. Any person authorized by law or by the
obligation consists has been completely
obligee at the time when payment is due to
delivered or rendered, as the case may be.
receive it (not during the time when the
If the obligation has been substantially
obligation is constituted) performed in good faith, the obligor may recover
as though there had been a strict and complete
PAYMENT TO AN INCAPACITATED PERSON, fulfillment, less damages suffered by the
VALID IF: obligee.
1. Incapacitated person kept the thing When the obligee accepts the performance,
delivered, or knowing its incompleteness or irregularity, and
2. Insofar as the payment has been without expressing any protest or objection, the
beneficial to him obligation is deemed fully complied with
 Attempt in Good Faith to perform without
PAYMENT TO 3RD PERSON willful or intentional departure
GENERAL RULE: Payment is not valid, even  Deviation is slight
though made in good faith  Omission/Defect is technical or unimportant
EXCEPTIONS:  Must not be so material that intention of
1. Payment which redounded to the benefit of
parties is not attained
the obligee
 Instances when the presumption that the EFFECT OF SUBSTANTIAL PERFORMANCE IN
payment redounded to the benefit of the GOOD FAITH
obligee:  Obligor may recover as though there has
1. After payment, 3rd person acquires the been strict and complete fulfillment, less
creditor’s rights (subrogation) damages suffered by the oblige
2. Creditor ratifies payment to 3rd person  Right to rescind cannot be used for slight
3. By creditor’s conduct, debtor has been
breach
led to make the payment (estoppel)
2. Payment to the possessor of the credit, when
SPECIAL RULES/FORMS OF PAYMENT
made in good faith 1. Application of Payments
 REQUISITES:

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2. Dation in Payment/ Dacion en Pago/ b. When monthly statements were made by
Adjudication/ Dacion in Solutum/ the bank specifying the application and the
Adjudicacion en Pago/ Payment in Kind/ debtor signed said statements approving the
Dation en Paiement status of her account as thus sent to her
3. Payment by Cession/Cession en Pago monthly by the bank
4. Tender of Payment and Consignation c. In case no application is made:
 Apply payment to the most onerous
A. APPLICATION OF PAYMENTS – the  If debts are of the same nature and
designation of the debt which payment shall burden, application shall be made to
be made, out of 2 or more debts owing the all proportionately
same creditor: stipulation or application of
party given benefit of period – OK; to be B. DACION EN PAGO: mode of extinguishing
valid: must be debtor’s choice or w/ consent an obligation whereby the debtor alienates
of debtor in favor of the creditor property for the
satisfaction of monetary debt; extinguish up
REQUISITES FOR THE APPLICATION OF to amount of property unless w/ contrary
PAYMENT: stipulation; A special form of payment
a. There must be only one debtor and
because 1 element of payment is missing:
only one creditor
IDENTITY
b. Two or more debts of the same kind
c. All debts must be due
REQUISITES FOR A VALID DACION EN PAGO:
EXCEPTION: there may be application of
a. There must be the performance of the
payment even if all debts are not yet due
prestation in lieu of payment (animo
if:
solvendi) which may consist in the delivery
i. Parties so stipulate
ii. When application of payment is of a corporeal thing or a real right or a credit
made by the party for whose benefit against the third person
b. There must be some difference between the
the term has been constituted
iii. Payment is not enough to extinguish prestation due and that which is given in
all debts substitution (aliud pro alio)
c. There must be an agreement between the
d. Amount paid by the debtor is insufficient creditor and debtor that the obligation is
to cover the total amount of all debts. immediately extinguished by reason of the
performance of a prestation different from
HOW APPLICATION IS MADE: that due
a. Debtor makes the designation
b. If not, creditor makes it by so stating in CONDITIONS FOR A VALID DACION:
the receipt that he issues – unless a. If creditor consents, because a sale
there is cause for invalidating the presupposes the consent of both parties
contract b. If dacion will not prejudice the other
c. If neither the debtor nor creditor has creditors
made the application or if the c. If debtor is not judicially declared
application is not valid, then insolvent
application, is made by operation of
NOTE: DACION is governed by the law on sales
law

WHO MAKES APPLICATION OF DEBTS DACION EN PAGO DISTINGUISHED FROM


GENERAL RULE: Debtor PACTUM COMMISORIUM
EXCEPTION: Creditor DACION EN PAGO PACTUM
a. Debtor without protest accepts receipt in COMMISORIUM
There is an Generally, only one
which creditor specified expressly and
intervening single contract
unmistakably the obligation to which such agreement where the parties
payment was to be applied – debtor in this subsequent and agree that in the event
case renounced the right of choice independent from debtor fails to pay, the

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the original mortgaged or pledged KINDS OF ASSIGNMENT:
contract is entered property shall a. Legal – governed by the insolvency law
into by the parties automatically be b. Voluntary – agreement of creditors
to have the appropriated or owned
property by the creditor REQUISITES OF VOLUNTARY ASSIGNMENT:
collaterizes in the a. More than one debt
original agreement b. More than one creditor
as payment of the c. Complete or partial insolvency of debtor
debt d. Abandonment of all debtor’s property not
Valid Void exempt from execution
e. Acceptance or consent on the part of the
creditors

EFFECTS OF ASSIGNMENT:
a. Creditors do not become the owner; they
are merely assignees with authority to
sell
DACION EN PAGO DISTINGUISHED FROM
b. Debtor is released up to the amount of
PLEDGE
DACION EN PAGO PLEDGE the net proceeds of the sale, unless
Delivery and Delivery but no there is a stipulation to the contrary
transfer of transfer of ownership c. Creditors will collect credits in the order
ownership of preference agreed upon, or in default
Presumed since less of agreement, in the order ordinarily
transmission of rights established by law

DACION EN PAGO DISTINGUISHED FROM DATION IN PAYMENT DISTINGUISHED FROM


SALE CESSION IN PAYMENT
DACION EN PAGO SALE
Preexisting credit None DATION IN PAYMENT CESSION IN
Obligation extinguished Obligation rises PAYMENT
Less freedom in Greater freedom
determining the price One creditor Plurality of creditors
Total or partial Payment of price
extinguishment generally totally Not necessarily in Debtor must b
extinguishes state of financial partially or relatively
if done by mistake, ... recovery of the difficulty insolvent
recovery of the thing price paid
Thing delivered is Universality of
DACION EN PAGO DISTINGUISHED FROM considered as property of debtor is
ASSIGNMENT equivalent of what is ceded
DACION EN PAGO ASSIGNMENT
performance
Substitute forms of performance
1 creditor Several creditors Payment extinguishes Merely releases
Debtor not partially Debtor partially obligation to the debtor for net
insolvent insolvent
extent of the value of proceeds of things
C. CESSION or ASSIGNMENT (IN FAVOR the thing delivered as ceded of, assigned,
OF CREDITORS) – the process by which debtor agreed upon, proved unless there is a
transfer all the properties not subject to or implied from the contrary intention
execution in favor of creditors is that the latter conduct of the creditor
may sell them and thus, apply the proceeds to
their credits; extinguish up to amount of net D. TENDER AND CONSIGNATION
proceeds ( unless w/ contrary stipulation)

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TENDER -the act of offering the creditor what is
due him together with a demand that the TENDER OF PAYMENT DISTINGUISHED
creditor accept the same (When creditor refuses FROM CONSIGNATION
TENDER OF CONSIGNATION
w/o just cause to accept payment, he becomes
PAYMENT
in mora accepiendi and debtor is released from antecedent act; principal act;
responsibility if he consigns the thing or sum preparatory produces the effects
due) of payment
extrajudicial judicial
CONSIGNATION – the act of depositing the
thing due with the court or judicial authorities =========================================
whenever the creditor cannot accept or refuses TOPICS UNDER THE SYLLABUS
to accept payment; generally requires prior E. EXTINGUISHMENT OF
tender of payment OBLIGATIONS
REQUISITES OF VALID CONSIGNATION:
2. Loss of determinate thing due or
a. Existence of valid debt impossibility or difficulty of
b. Consignation was made because of some performance
legal cause - previous valid tender was =========================================
unjustly refused or circumstances
making previous tender exempt 2. LOSS OF DETERMINATE THING OR
c. Prior Notice of Consignation had been IMPOSSIBILITY OR DIFFICULTY OF
given to the person interested in PERFORMANCE
performance of obligation (1st notice)
d. Actual deposit/Consignation with proper LOSS OF THE THING DUE: partial or total/
judicial authorities includes impossibility of performance
e. Subsequent notice of Consignation (2nd
notice) WHEN IS THERE A LOSS
a. When the object perishes (physically)
EFFECTS: EXTINGUISHMENT OF b. When it goes out of commerce
OBLIGATION c. When it disappears in such a way that:
a. Debtor may ask judge to order its existence is unknown or it cannot be
cancellation of obligation recovered
b. Running of interest is suspended
c. Before creditor accepts or before judge
declares consignation has been properly WHEN IS THERE IMPOSSIBILITY OF
made, obligation remains (debtor bears PERFORMANCE:
risk of loss at the meantime, after a. Physical impossibility
acceptance by creditor or after judge b. Legal impossibility
declares that consignation has been i. Directly – caused as when prohibited
properly made – risk of loss is shifted to by law
ii. Indirectly – caused as when debtor is
creditor)
required to enter a military draft
CONSIGNATION W/O PRIOR TENDER –
EFFECT OF LOSS IN OBLIGATION TO
allowed in:
a. Creditor absent or unknown/ does not DELIVER A SPECIFIC THING
appear at the place of payment
GENERAL RULE: Loss shall extinguish the
b. Incapacitated to receive payment at the
obligation
time it is due
EXCEPTIONS:
c. Refuses to issue receipt w/o just cause
a. If by law the obligor is liable even for
d. 2 or more creditor claiming the same
fortuitous event
right to collect
e. Title of obligation has been lost

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b. If by stipulation the obligor is liable even Presumption: Loss due to debtor’s fault
for fortuitous event (disputable)
c. If the nature of the obligation requires the Exception: natural calamity, earthquake, flood,
assumption of the risk storm
d. If the loss of the thing occurs after the
obligor incurred in delay REBUS SIC STANTIBUS: agreement is valid
e. If the loss of the thing occurs after the only if the same conditions prevailing at time of
obligor incurred delay contracting continue to exist at the time of
f. If the obligor promised to deliver the same performance; Obligor may be released in whole
thing to two or more persons who do not or in part based on this ground
have the same interest
g. IF the obligation is generic, unless the REQUISITES:
object is a particular class or group with A. The event or change could not have been
specific or determinate qualities foreseen at the time of the execution of the
contract
OBLIGATION TO DELIVER A GENERIC THING B. The performance is extremely difficult, but
GENERAL RULE: Not extinguished not impossible (because if it is impossible, it is
EXCEPTIONS: extinguished by impossibility)
a. If the generic thing is delimited
b. If the generic thing has already been C. The event was not due to the act of any of the
segregated parties
c. Monetary obligation
D. The contract is for a future prestation
EFFECT OF IMPOSSIBILITY OF
PERFROMANCE IN OBLIGATION TO DO ==========================================
TOPICS UNDER THE SYLLABUS
GENERAL RULE: Debtor is released when
E. EXTINGUISHMENT OF
prestation becomes legally or physically
impossible without fault on part of debtor OBLIGATIONS
3. Condonation or Remission of Debt
EFFECT OF PARTIAL LOSS =========================================
a. When loss is significant – may be
enough to extinguish obligation 3. CONDONATION OR REMISSION OF DEBT
b. When loss insignificant – not enough to
extinguish obligation CONDONATION/REMISSION OF THE DEBT –
NOTE: gratuitous abandonment of debt; right to
 Judicial determination of extent is claim; donation; rules of donation applies;
necessary express or implied
 Doctrine of Unforeseen Events: The
court is authorized to release the obligor, REQUISITES:
in whole or in part, when the service has a. There must be an agreement
become so difficult as to be manifestly b. There must be a subject matter (object
beyond the contemplation of the parties. of the remission, otherwise there would
 Doctrine of Subjective Impossibility: be nothing to condone)
The obligation undoubtedly becomes c. Cause of consideration must be liberality
impossible if there is no physical or legal (Essentially gratuitous, an act of
loss but the object obligation belongs to liberality )
d. Parties must be capacitated and must
another person; the obligor must
consent; requires acceptance by obligor;
indemnify the obligee for the damages
implied in mortis causa and expressed
suffered by the latter.
inter vivos
WHEN THING IS LOST IN THE POSSESSION
OF THE DEBTOR

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e. Formalities of a donation are required in 4. CONFUSION OR MERGER
the case of an express remission
f. Revocable – subject to rule on inofficious CONFUSION OR MERGER: – character of
donation ( excessive, legitime is debtor and creditor is merged in same person
impaired ) and ingratitude and condition with respect to same obligation
not followed
g. Obligation remitted must have been REQUISITES:
demandable at the time of remission a. It must take place between principal
h. Waivers or remission are not to be debtor and principal creditor only
presumed generally b. Merger must be clear and definite
c. The obligation involved must be same and
identical – one obligation only
FORMS EXTENT KINDS d. Revocable, if reason for confusion
ceases, the obligation is revived
a. Express – a. Total a. Principal –
formalities of accessory also =========================================
donation condoned TOPICS UNDER THE SYLLABUS
E. EXTINGUISHMENT OF
b. Implied – b. Partial b. Accessory – OBLIGATIONS
conduct is principal still 5. Compensation
=========================================
sufficient outstanding

c. Accessory 5. COMPENSATION
obligation of pledge
– condoned; COMPENSATION: Set off; it is a mode of
presumption only, extinguishment to the concurrent amount the
rebuttable obligation of persons who are in their own right
reciprocally debtors or creditors
REQUISITES:
REQUISITES OF IMPLIED CONDONATION a. Both parties must be mutually creditors
1. Voluntary delivery – presumption; when and debtors - in their own right and as
evidence of indebtedness is w/ debtor – principals
presumed voluntarily delivery by creditor; b. Both debts must consist in sum of money
rebuttable or if consumable , of the same kind or
2. Effect of delivery of evidence of quality
indebtedness is conclusion that debt is c. Both debts are due
condoned – already conclusion; voluntary d. Both debts are liquidated and
delivery of private document demandable (determined)
a. If in hands of joint debtor – only his share e. Neither debt must be retained in a
is condoned controversy commenced by 3rd person
b. If in hands of solidary debtor - whole and communicated w/ debtor (neither
debt is condoned debt is garnished)
c. Tacit – voluntary destruction of
instrument by creditor; made to prescribe w/o
demanding 1. Kinds OF COMPENSATION
a. Legal – by operation of law; as long as 5
========================================== requisites concur- even if unknown to
TOPICS UNDER THE SYLLABUS parties and if payable in diff places;
E. EXTINGUISHMENT OF indemnity for expense of exchanges;
OBLIGATIONS even if not equal debts – only up to
4. Confusion or Merger concurring amount
=========================================

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b. Conventional – agreement of parties is capacity not capacity to dispose and
enough, forget other requirement as long necessary capacity to receive
required
as both consented
c. Facultative – one party has choice of may be partial must be complete
performance performance
claiming/opposing one who has benefit
Simpler
of period may choose to compensate:
i. Not all requisites are present more guarantee and
ii. Depositum; commodatum; less risk
criminal offense; claim for future may take place by involves action or
operation of law delivery of the amount
support; taxes
paid
d. Judicial – set off; upon order of the
court; needs pleading and proof; all
requirements must concur except
liquidation
e. Total – when 2 debts are of the same
amount COMPENSATION DISTINGUISHED FROM
f. Partial – when 2 debts are not of the COUNTERCLAIM
COMPENSATION COUNTERCLAIM
same amount
takes place by operation must be pleaded
EFFECT OF ASSIGNMENT OF CREDIT TO 3 RD of law and extinguishes to be effectual
reciprocally 2 claims as
PERSON; CAN THERE STILL BE
soon as they exist
COMPENSATION simultaneously to the
a. If made after compensation took place – concurrent amounts
no effect; compensation already
perfected
b. If made before compensation took place 2. Obligations Not Compensable
– depends  When one of the debts arises from a
i. With consent of debtor – debtor is depositum or from the obligations of a
estopped unless he reserves his right depositary or of a baliee in
and gave notice to assignee commodatum. (Art. 1287)
ii. With knowledge but w/o consent of
debtor – compensation may be set  Against a creditor who has a claim for
up as to debts maturing prior to support due by gratuitous title, without
assignment prejudice to Article 301 par. 2 (Article
iii. W/o knowledge – compensation may 1287)
be set-up on all debts prior to his
knowledge  If one of the debts consists in civil
liability arising from a penal offense. (Art.
1288)
COMPENSATION DISTINGUISHED FROM
CONFUSION
COMPENSATION CONFUSION =========================================
2 persons; each is a only 1 person who is TOPICS UNDER THE SYLLABUS
debtor and creditor of creditor and debtor
each other of himself
E. EXTINGUISHMENT OF
OBLIGATIONS
2 obligations one obligation
5. Novation
indirect payment impossibility of =========================================
payment
5. NOVATION
COMPENSATION DISTINGUISHED FROM
PAYMENT NOVATION: Extinguishment of obligation by
COMPENSATION PAYMENT creating/ substituting a new one in its place

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Changing object or principal conditions from obligation; subject to full
 Substituting person of debtor reimbursement and subrogation
 Subrogating 3rd person in right of creditor if made w/ consent of old
debtor; if w/o consent or against
REQUISITES:
will , only beneficial
a.Valid obligation
b. Intent to extinguish old obligation – reimbursement; if new debtor is
expressed or implied: insolvent, not responsible since
completely/substantially incompatible old w/o his consent
and new obligation on every point
 DELEGACION: initiative of old
c.Capacity and consent of parties to the new
obligation debtor; all parties to consent;
d. Valid new obligation full reimbursement; if insolvent
new debtor – not responsible old
EFFECTS OF NOVATION: debtor because obligation
a. Extinguishment of principal carries extinguished by valid novation
accessory, except: unless: insolvency already
i. Stipulation to contrary existing and of public knowledge
ii. Stipulation pour autrui unless
or know to him at time of
beneficiary consents
delegacion
iii. Modificatory novation only; obliged
1. Delegante – old debtor
to w/c is less onerous 2. Delegatario - creditor
iv. Old obligation is void 3. Delegado – new debtor
b. Old obligation subsists if new obligation is
void or voidable but annulled already
(except: intention of parties)
c. If old obligation has condition
i. If Resolutory and it occurred – old
EXPROMISION DISTINGUISHED FROM
obligation already extinguished; no
DELEGACION
new obligation since nothing to EXPROMISIO DELEGACION
novate N
ii. If Suspensive and it never occurred Intention: old debtor be released from the
–as if no obligation; also nothing to obligation
novate Consent of creditor may be express or tacit
d. If old obligation has condition, must be but not presumed by acceptance of
compatible with the new obligation; if new is payment from third person
w/o condition – deemed attached to new Donation cannot be presumed
e. If new obligation has condition consent of consent of debtor
i. If resolutory: valid creditor and (initiates), creditor and
ii. If suspensive and did not third person third person; need not be
materialize: old obligation is enforced given simultaneously
governed by same applies in the
KINDS OF NOVATION: the rules of absence of an agreement
1. REAL/OBJECTIVE – change object, payment by by old and new debtors
third persons
cause/consideration or principal condition
if w/o subrogation
2. PERSONAL/SUBJECTIVE knowledge of
i. Substituting person of debtor debtor,
beneficial
(passive) reimbursement
, no
 EXPROMISION: initiative is subrogation
from 3rd person or new debtor; new debtor's same unless new debtor is
new debtor and creditor to insolvency known to the public as
consent; old debtor released does not make insolvent or old debtor

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old debtor knows of such insolvency 3rd person has no new debtor is obliged to
liable at the time of delegacion obligation to pay pay
creditor may not recover
if insolvent
from old debtor if he
knows of such insolvency
of the new debtor
quite rare delegante (old)
delegado (new) CONVENTIONAL SUBROGATION
delegatario (creditor)
DISTINGUISHED FROM ASSIGNMENT OF
ii. Subrogating 3 person to rights of creditor
rd RIGHTS
( active )
CONVENTIONA ASSIGNMENT OF RIGHTS
1. Conventional - agreement and consent of all
L
parties; clearly established
2. Legal - takes place by operation of law; no SUBROGATION
need for consent; not presumed
Governed by Governed by Arts. 1624 to
except as provided for in law:
Arts. 1300-1304 1627
PRESUMED WHEN -
debtor’s consent debtor’s consent is not
• Creditor pays another preferred creditor
is required required
even w/o debtor’s knowledge
• 3rd person not interested in obligation pays extinguishes the transmission of right of the
w/ approval of debtor obligation and creditor to third person
• Person interested in fulfillment of obligation
gives rise to a without modifying or
pays debt even w/o knowledge of debtor
new one extinguishing the obligation

defects and vices defects and vices in the old


in the old obligation and not cured
obligation are
cured

takes effect upon as far as the debtor is


DIFFERENCE FROM PAYMENT BY 3 rd moment of concerned, takes effect
PERSON vs CHANGE OF DEBTOR novation or upon notification
subrogation
DIFFERENCE CHANGE OF DEBTOR
FROM PAYMENT
BY 3RD PERSON
END OF DISCUSSION ON TOPIC
debtor is not debtor is released ================================
necessarily
released from
debt

can be done w/o needs consent of creditor


consent of – express or implied
creditor

one obligation two obligations; one is


extinguished and new one
created

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CONTRACTS (2) Pactum de non alienando (Art.
2130)
(3) Pactum leonine (Art. 1799)
A. GENERAL PROVISIONS
================================
TOPICS UNDER THE SYLLABUS 7. Effect of contracts (Art. 1311)

=========================================
A. GENERAL PROVISIONS TOPICS UNDER THE SYLLABUS
1. Essential Requisites (Art. 1261) A. GENERAL PROVISIONS
1. Essential Requisites
2. Kinds of Contracts =========================================
A. Consensual
1. ESSENTIAL REQUISITES
B. Real
C. Formal or solemn ESSENTIAL ELEMENTS:
C.1. Donations (Arts. 748-749) 1. Consent
C.2. Partnership where real 2. Subject Matter
3. Consideration
property contributed (Arts. 1771,
1773) A. CONSENT
C.3. Antichresis (Art. 2134) CONSENT – meeting of minds between parties
on subject matter and cause of contract;
C.4. Agency to sell real property
concurrence of offer and acceptance
or an interest therein (Art. 1874)
C.5. Stipulation to charge interest REQUIREMENTS:
(Art. 1956) 1. Must be manifested by the concurrence of
the offer and payment;
C.6. Stipulation limiting common
2. Parties are legally capacitate to enter into
carrier’s duty of extraordinary contracts
diligence to ordinary diligence 3. Consent must be intelligent, free,
(Art. 1744) spontaneous, and real
C.7. Chattel mortgage AUTO CONTRACTS - made by a person acting
C.8. Sale of large cattle in another’s name in one capacity

3. Formality (Arts. 1356, 1357, 1358) COLLECTIVE CONTRACTS - will of majority


binds a minority to an agreement
4. Reformation of Contracts
notwithstanding the opposition of the latter
5. Interpretation of Contracts
6. Defective Contracts CONTRACTS OF ADHESION - one party has
A. Rescissible contracts (Art. 1381) already a prepared form of a contract,
A.1. Difference with rescission containing the stipulations he desires, and he
simply asks the other party to agree to them if
(resolution) under Art. 1191
he wants to enter into the contract
B. Voidable contracts (Arts. 1328-
1344, 1390-1402) NOTE: We follow the theory of cognition and not
C. Unenforceable contracts (Arts. the theory of manifestation.
1403-1408, 1317) Under our Civil Law, the offer and acceptance
D. Void contracts (Arts. 1409, 1346) concur only when the offeror comes to know,
(1) Pactum commissorium (Arts. and not when the offeree merely manifests his
2088, 2130, 1390) acceptance.

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OFFER – a proposal made by one party to the other and acceptance of both is
another to enter into a contract; must be certain necessary.
or definite, complete and intentional
 Offer inter praesentes must be
ELEMENTS OF VALID OFFER / ELEMENTS OF accepted IMMEDIATELY. If the parties
VALID ACCEPTANCE intended that there should be an express
1. Definite--unequivocal acceptance, the contract will be
2. Complete--unconditional
perfected only upon knowledge by the
3. Intentional
offeror of the express acceptance by the
WHEN OFFER BECOMES INEFFECTIVE: offeree of the offer. An acceptance which
1. Death, civil interdiction, insanity or is not made in the manner prescribe by
insolvency of either party before acceptance the offeror is NOT EFFECTIVE, BUT A
is conveyed COUNTER-OFFER which the offeror may
2. Express or implied revocation of the offer by accept or reject. Malbarosa v. CA,
the offeree [G.R. No. 125761, April 30, 2003]
3. Qualified or conditional acceptance of the
offer, which becomes a counter-offer RULE ON ADVERTISEMENTS AS OFFERS
4. Subject matter becomes illegal or impossible
before acceptance is communicated Business advertisements – Not a definite
offer, but mere invitation to make an offer,
ACCEPTANCE - manifestation by the offeree of unless it appears otherwise
his assent to the terms of the offer; must be
absolute Advertisement for Bidders – only invitation to
make proposals and advertiser is not bound to
NOTE: A qualified acceptance constitutes accept the highest or lowest bidder, unless
counter-offer appears otherwise

PERIOD FOR ACCEPTANCE THE 4 THEORIES IN ACCEPTANCE OF OFFER


1. Stated fixed period in the offer BY TELEGRAM OR LETTER
2. No stated fixed period 1. Manifestation – perfected from the moment
a. Offer is made to a person present –
the acceptance is declared or made
acceptance must be made immediately 2. Expedition – perfected from the moment the
b. Offer is made to a person absent –
offeree transmits the notification of acceptance
acceptance may be made within such 3. Reception – perfected from the moment the
time that, under normal circumstances, offeror receives the letter
an answer can be received from him 4. Cognition – perfected from the moment the
NOTE: Acceptance may be revoked before it acceptance comes to the knowledge of the
comes to the knowledge of the offeror.
offeror
(withdrawal of offer)
NOTE: Contracts under the Civil Code generally
AMPLIFIED ACCEPTANCE
Under certain circumstances, a mere adhere to the Cognition Theory while
amplification on the offer must be understood as transactions under the Code of Commerce use
an acceptance of the original offer, plus a new the Manifestation Theory.
offer, which is contained in the amplification.
When the offeror refuses to open the letter or
RULE ON COMPLEX OFFERS telegram he is held to have a constructive notice
1. Offers are interrelated – contract is of the contents thereof and will be bound by the
perfected if all the offers are accepted acceptance of the offeree. (Jurado citing Castan)
2. Offers are not interrelated – single
acceptance of each offer results in a OPTION: option may be withdrawn anytime
perfected contract unless the offeror has before acceptance is communicated but not
made it clear that one is dependent upon when supported by a consideration other than
purchase price: option money

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EFFECTS OF OPTION: DISQUALIFIED TO ENTER INTO CONTRACTS:
 NOT supported by independent (contracts entered into are void)
consideration – the offeror can withdraw 1. Those under civil interdiction
the privilege at any time by 2. Hospitalized lepers
3. Prodigals
communicating the withdrawal before 4. Deaf and dumb who are unable to read
acceptance and write
 Supported by independent consideration 5. Those who by reason of age, disease,
– the offeror cannot withdraw his offer weak mind and other similar causes, cannot
without outside aid, take care of themselves and
PERSONS WHO CANNOT GIVE CONSENT TO
manage their property, becoming an easy prey
A CONTRACT:
1. Minors for deceit and exploitation (Rule 92, Sec.2, Rules
2. Insane or demented persons, unless the of Court)
contract was entered into during a lucid
interval
3. Illiterates/ deaf-mutes who do not know
INCAPACITY DISTINGUISHED FROM
how to write
DISQUALIFICATION
4. Intoxicated and under hypnotic spell
5. Art 1331 - person under mistake; mistake
INCAPACITY DISQUALIFICATION
may deprive intelligence
6. Art 1338 - person induced by fraud (dolo Restrains the Restrains the very right
causante) exercise of the right itself
NOTE: Dolus bonus (usual exaggerations in
to contract
trade) are not in themselves fraudulent
May still enter into Absolutely disqualified
RULE ON CONTRACTS ENTERED INTO BY
contract through
MINORS
GENERAL RULE: VOIDABLE parent, guardian or
EXCEPTIONS: legal representative
a. Upon reaching age of majority – they
Based upon Based upon public
ratify the same
b. They were entered unto by a guardian subjective policy and morality
and the court having jurisdiction had circumstance of
approved the same certain person
c. They were contracts for necessities
Contracts entered Contracts entered into
such as food, but here the persons who
into are merely are void
are bound to give them support should
voidable
pay therefor
d. Minor is estopped and cannot be
absolved from the contract they CAUSES WHICH VITIATE FREEDOM
entered into for having 1. Violence
misrepresented his age and misled  REQUISITES
the other party through his active a. Irresistible physical force
misrepresentation. Mercado vs. b. Such force is the determining cause for
Espiritu, [37 Phil 215] HOWEVER, giving consent
minors can set up the defense of
2. Intimidation
minority to resist the claim when there
 REQUISITES:
is only passive misrepresentation, as
b. Determining cause for the contract
they did not disclose their minority c. Threatened act is unjust and unlawful
because they had no juridical duty to d. Real and serious
disclose their inability. (Braganza vs.
De Villa Abrille, [105 Phil 456]

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o
e. Produces a well grounded fear that the I
person making it will carry it over ncidental Fraud (Dolo Incidente)- Fraud in
Reluctant consent – a contract is valid the PERFORMANCE of an obligation
even though one of the parties entered  Deception which are not serious and
into it against his wishes and desires or without which the other party would still
even against his better judgment. have entered into the contract
Contracts are also valid even though  It is not the cause which induced the
they are entered into by one of the party to enter into a contract
parties without hope of advantage or  Renders the party liable for damages
profit. Martinez vs. Hongkong and 5. Undue influence
 When a person takes improper
Shanghai Bank, [15 Phil 252]
advantage of his power over the will of
3. Mistake another, depriving the latter of a
 Not only wrong conception of the thing reasonable freedom of choice
but also the lack of knowledge with
respect to it (Manresa) SIMULATED CONTRACTS
1. Absolute – no intention to be bound at
Two General Kinds of Mistake: all, fictitious only – void from beginning
a.Mistake of Fact – when one or both of 2. Relative – there is intention to be
the contracting parties believe that a fact bound but concealed; concealed contract
exist when in reality it does not, or that such binds:
fact does not exist when in reality it does c. No prejudice to 3rd persons
b. d. Not contrary to law, morals, etc.
Mistake of Law
B. OBJECT
General Rule: Mistake does not vitiate
REQUISITES:
consent 1. Within the commerce of man – either
Exception: Mutual error as to the effect of
existing or in potency
an agreement when the real purpose of the 2. Licit or not contrary to law, good customs
parties is frustrated 3. Possible
4. Determinate as to its kind or determinable
4. Fraud w/o need to enter into a new contract
 When, through insidious words or 5. Transmissible
machinations of 1 of the contracting
parties, the other is induced to enter into THINGS WHICH CANNOT BE THE OBJECT OF
a contract which, without them, he would CONTRACT:
not have agreed to. 1. Things which are outside the commerce of
KINDS: men
o Causal Fraud (Dolo Causante)- Fraud in 2. Intransmissible rights
the PERFECTION of the contract 3. Future inheritance, except in cases expressly
 Deception of serious character, without authorized by law
which the other party would not have
entered into
 It is the cause which induces the party to
enter into a contract
 Renders the contract voidable. Insidious
words or machinations are employed
 Not employed by both or by third person
 Ground for annulment

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4.
WANT OF EFFECT proximate reason of a reasons
CAUSE contract

ABSENCE Void - produce no legal effect Objective and juridical Psychological or purely
OF CAUSA reason of contract personal reason

ILLEGALITY Void - produce no legal effect Cause us always same The motive differs for
OF CAUSA for each contracting each contracting party
party
FALSITY OF Voidable – party must prove
CAUSA that cause is untruthful; Legality or illegality of Legality or illegality of
presumption of validity but cause affects the motive does not affect
rebuttable existence or validity of the existence or
the contract validity of contract
CAUSA NOT Presumed to Exist - burden of
STATED IN proof is on the person
CONTRACT assailing its existence CAUSA IN SOME CONTRACTS:
1. Onerous contracts – the prestation of
INADEQUAC Does not Invalidate Contract promise of a thing or service by the other
Y OF CAUSA per se 2. Remuneratory contracts – the service or
Exceptions: benefit remunerated
3. Pure Beneficence – mere liberality of the
* Fraud donor or benefactor
* Mistake 4. Accessory – identical with cause of principal
* Undue influence contract, the loan which it derived its life
* Cases specified by law and existence (ex: mortgage or pledge)
- contracts entered when
ward suffers lesion of more Want of Cause - There is a total lack or
than 25% absence of cause

Services which are contrary to law, morals, good Illegal Cause – The cause is contrary to law,
customs, public order or public policy morals, good customs, public order and public
5. Impossible things or services policy
6. Objects which are not possible of
determination as to their kind False Cause – The cause is stated but it is not
true
C. CAUSE (CAUSA)
CAUSA- Immediate, direct and most proximate Moral Obligation as Cause
reason why parties enter into contract  Where the moral obligation arises wholly
REQUISITES:
from ethical considerations, unconnected with
1. It must exist
2. It must be true any civil obligations, it cannot constitute a
3. It must be licit sufficient cause or consideration to support an
onerous contract. Fisher vs. Robb [69 Phil
MOTIVE: 101]
Purely private reason; illegality does not  Where such moral obligation is based upon a
invalidate contract except when it previous civil obligation which has already been
predetermines purpose of contract; when barred by the statute of limitations at the time
merged into one when the contract is entered into, it constitutes
a sufficient cause or consideration to support a
CAUSE DISTINGUISHED FROM MOTIVE
contract Villaroel vs. Estrada 71 Phil 14]
CAUSE MOTIVE A contract is a meeting of minds between two
Direct and most Indirect or remote persons whereby one binds himself, with respect

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to the other, to give something or to render
some service B. EXCEPTION TO RELATIVITY:
1. Accion Pauliana
2. Accion directa
CONTRACT DISTINGUISHED FROM 3. Stipulation pour autrui
OBLIGATION
C. REQUISITES OF STIPULATION POUR
CONTRACT OBLIGATION AUTRUI
1. Parties must have clearly and
One of the sources of Legal tie or relation deliberately conferred a favor upon a 3rd person
obligations itself 2. The stipulation in favor of a 3rd person
should be a part of, not the whole contract
There must be an There need not be a 3. That the favorable stipulation should not
obligation contract be conditioned or compensated by any kind of
obligation whatsoever
4. Neither of the contracting parties bears
CONTRACT DISTINGUISHED FROM
the legal representation or authorization of 3rd
AGREEMENT
party
5. The third person communicates his
CONTRACT AGREEMENT
acceptance before revocation by the original
Agreements Cannot be enforced parties
enforceable through by action in courts of 6. Art 1312; Art 1314
legal proceedings justice
In contracts creating real rights, third persons
Should have all the Need not have all who come into possession of the object of the
requisites of a contract the requisites contract are bound thereby, subject to the
provisions of the Mortgage Law and the Land
There must be an There need not be a Registration Laws
agreement contract
D. REQUISITES:
1. Existence of a valid contract
A. PRINCIPAL CHARACTERISTICS: 2. Knowledge of the contract by a 3rd person
1. Autonomy of wills – parties may 3. Interference by the 3rd person
stipulate anything as long as not illegal,
immoral, etc. E. TEST OF BENFICIAL SITUATION
2. Mutuality – performance or validity  The fairest to determine whether the
binds both parties; not left to will of one of interest of 3rd person in a contract is a
parties stipulation pour autrui or merely an
3. Obligatory Force and Consensuality incidental interest is to rely upon the
– parties are bound from perfection of intention of the parties as disclosed by
contract; contracts are perfected by mere their contract. Determine whether
consent and from that moment the parties contracting parties desired to tender him
are bound not only to the fulfillment of what such interest Uy Tam vs. Leonard, [30
has been expressly stipulated but also to all Phil 471]
consequences which, according to their =========================================
nature may be in keeping with good faith, TOPICS UNDER THE SYLLABUS
usage and law. A. GENERAL PROVISIONS
4. Fulfill what has been expressly 2. Kinds of Contracts
stipulated =========================================
5. All consequences w/c may be in keeping
with good faith, usage and law 2. KINDS OF CONTRACTS
6. Relativity – binding only between the 1. As to perfection or formation
parties, their assigns, heirs; strangers cannot
demand enforcement

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a. Consensual – perfected by agreement NOTE: According to some authorities, do ut des
of parties is no longer an innominate contract. It has
b. Real – perfected by delivery (e.g. already been given a name of its own, i.e. barter
commodatum, pledge, deposit) or exchange. (Art. 1638)
c. Formal/solemn – perfected by
conformity to essential formalities STAGES IN A CONTRACT:
(donation ) 1. Preparation - negotiation
2. As to cause 2. Perfection/birth
a. Onerous – with valuable consideration 3. Consummation – performance
b. Gratuitous – founded on liberality
c. Remunerative – prestation is given for FORMAL CONTRACTS
service previously rendered not as 1. Donation
obligation  The donation of a movable may be made
3. As to importance or dependence of one orally or in writing (Article 748)
upon another  An oral donation requires the
a. Principal – contract may stand alone simultaneous delivery of the thing or of
b. Accessory – depends on another the document representing the right
contract for its existence; may not exist donated. (Article 748)
on its own  If the value of the personal property
c. Preparatory – not an end by itself; a donated exceeds five thousand pesos,
means through which future contracts the donation and the acceptance shall be
may be made made in writing. Otherwise, the donation
4. As to parties obliged shall be void. (Article 748)
a. Unilateral – only one of the parties has  In order that the donation of an
an obligations immovable may be valid, it must be
b. Bilateral – both parties are required to
made in a public document, specifying
render reciprocal prestations
therein the property donated and the
5. As to form
a. Common or informal – require no value of the charges which the donee
particular form must satisfy. (Article 749)
b. Special or formal – require some  The acceptance may be made in the
particular same deed of donation or in a separate
Form public document, but it shall not take
6. As to their purpose effect unless it is done during the
a. Transfer of ownership lifetime of the donor. (Article 749)
b. Conveyance of use  If the acceptance is made in a separate
c. Rendition of service instrument, the donor shall be notified
7. As to their subject matter
thereof in an authentic form, and this
a. Things
b. Services step shall be noted in both instruments.
8. As to the risk involved (Article 749)
a. Commutative – example lease
b. Aleatory – example insurance 2. Partnership
9. As to name or designation  A partnership may be constituted in any
a. Nominate – those which have their own form, except where immovable property
distinctive individuality and are or real rights are contributed thereto, in
regulated by special provisions of law which case a public instrument shall be
b. Innominate – those which lack necessary. (Article 1771)
individuality and are not regulated by  A contract of partnership is void,
special provisions of law whenever immovable property is
II. Do ut des – I give that you may give contributed thereto, if an inventory of
III. Do ut facias – I give that you may do
said property is not made, signed by the
IV. Facio ut des – I do that you may give
V. Facio ut facias – I do that you may do parties, and attached to the public
instrument. (Article 1773)

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3.
Antichresis =========================================
 The amount of the principal and of the TOPICS UNDER THE SYLLABUS
interest shall be specified in writing; A. GENERAL PROVISIONS
otherwise, the contract of antichresis 3. Formality
shall be void =========================================

4. Agency to Sell Real Property 3. FORM OF CONTRACTS


 When a sale of a piece of land or any
interest therein is through an agent, the
FORM: in some kind of contracts only as
authority of the latter shall be in writing;
contracts are generally consensual; form is a
otherwise, the sale shall be void. (Article
manner in which a contract is executed or
1874)
manifested
5. Interest
1. Informal – may be entered into whatever
 No interest shall be due unless it has form as long as there is consent, object and
been expressly stipulated in writing cause
2. Formal – required by law to be in certain
(Article 1876)
specified form such as: donation of real
6. Ordinary Diligence property, stipulation to pay interest, transfer
of large cattle, sale of land thru agent,
 A stipulation between the common contract of antichresis, contract of
carrier and the shipper or owner limiting partnership, registration of chattel
the liability of the former for the loss, mortgage, donation of personal prop in
destruction, or deterioration of the goods excess of 5,000
to a degree less than extraordinary 3. Real – creation of real rights over
diligence shall be valid, provided it be: immovable prop must be written

o In writing, signed by the shipper WHEN FORM IS IMPORTANT:


1. For validity (formal/solemn contracts)
or owner;
2. For enforceability (statute of frauds)
3. For convenience
o Supported by a valuable
consideration other than the  GENERAL RULE: contract is valid and
service rendered by the common binding in whatever form provided that 3
carrier; and essential requisites concur
 EXCEPTIONS
o Reasonable, just and not contrary a. Law requires contract to be in some
to public policy. (Article 1744) form for validity - donation and
acceptance of real property
b. Law requires contract to be in some
7. Chattel Mortgage
form to be enforceable - Statute of
 By a chattel mortgage, personal property
Frauds; contract is valid but right to
is recorded in the Chattel Mortgage
enforce cannot be exercised; need
Register as a security for the
ratification to be enforceable
performance of an obligation. If the
c. Law requires contract to be in some
movable, instead of being recorded, is
form for convenience - contract is valid
delivered to the creditor or a third
and enforceable, needed only to bind
person, the contract is a pledge and not
3rd parties
a chattel mortgage. Ex: public documents needed for the ff:
i. Contracts w/c object is creation,
8. Sale of Large Cattle
transmission or reformation of real
 The form of sale of large cattle shall be
rights over immovables
governed by special laws. (Article 1581)

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ii. Cession, repudiation, renunciation c.True intention not expressed in instrument
of hereditary rights/CPG d. Clear and convincing proof
iii. Power to administer property for e.Facts put in issue in pleadings
another
iv. Cession of action of rights NOTE:
proceeding from an act appearing  Prescribes in 10 years from date of execution
in a public inst. of instrument
v. All other docs where amount  When one of the parties has brought an
involved is in excess of 500 (must action to enforce the instrument, no subsequent
be written even private docs ) reformation can be asked. (principle of estoppel)
 Reformation is based on justice and equity
NOTE: RA 8792 (E-COMMERCE ACT) – formal  When there is no meeting of the minds, the
requirements to make contracts effective as proper remedy is annulment and not reformation
against third persons and to establish the
existence of a contract are deemed complied WHEN REFORMATION NOT AVAILABLE:
with provided that the electronic document is 1. Simple donation inter vivos
2. Wills
unaltered and can be authenticated as to be
3. When real agreement is void
useable for future reference. 4. Estoppel when party has brought suit to
enforce it
=========================================
TOPICS UNDER THE SYLLABUS =========================================
A. GENERAL PROVISIONS TOPICS UNDER THE SYLLABUS
4. Reformation of Instruments A. GENERAL PROVISIONS
========================================= 5. Interpretation of Contracts
=========================================
4. REFORMATION OF INSTRUMENTS
5. INTERPRETATION OF CONTRACTS
REFORMATION OF CONTRACTS: remedy to
conform to real intention of parties due to GENERAL RULE: If the terms of the contract
mistake, fraud, inequitable conduct, accident are clear and leave no doubt upon the intention
of the contracting parties, the literal meaning of
CAUSES/GROUNDS: its stipulations shall control. (Art. 1370)
1. Mutual: instrument includes something w/c
should not be there or omit what should be EXCEPTION: It is alleged and proved that the
there intention of the parties is otherwise.
a. Mutual
b. Mistake of fact Sec. 13 Rule 130 of the Rules of Court:
c. Clear and convincing proof “When an instrument consists partly of written
d. Causes failure of instrument to express words and partly of a printed form, and the two
are inconsistent, the former controls the latter.”
true intention
2. Unilateral
NOTE:
a. One party was mistaken
1. If the law is clear, there is no room for
b. Other either acted fraudulently or
interpretation
inequitably or knew but concealed 2. In case of ambiguity, the most important
c. Party in good faith may ask for guideline is intention of the parties.
reformation 3. Ambiguity is construed against the one who
3. Mistake by 3rd persons – due to ignorance, caused it because he had control (e.g. contract
lack of skill, negligence, bad faith of drafter, of adhesion). However, this rule does not apply
clerk or typist to all contracts of adhesion (e.g. if contract is
4. Others specified by law – to avoid negotiated)
frustration of true intent 4. In order to judge the intention of the
Requisites: contracting parties, their contemporaneous and
a.There is a written instrument subsequent acts shall be principally considered.
b. There is meeting of minds (Art. 1371)

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2.
5. Words which may have different significations A
shall be understood in that which is most in greed upon in representation of absentees, if
keeping with the nature and object of the absentee suffers lesion by more than ¼ of
contract. (Art. 1375) value of property
6. The interpretation of obscure words or 3. Contracts where rescission is based on fraud
stipulations in a contract shall not favor the committed on creditor (accion pauliana)
party who caused the obscurity. (Art. 1377) 4. Objects of litigation; contract entered into by
7. If the court cannot resolve the ambiguity
defendant w/o knowledge or approval of
based on the elements of the contract:
a. If a gratuitous contract, the least litigants or judicial authority
transmission of rights and interests shall 5. Provided for by law – Arts 1526, 1534, 1539,
prevail 1542, 1556, 1560, 1567 and 1659
b. If an onerous contract, doubt shall be  Art. 1526 – Unpaid seller of goods,
settled in favor of the greatest notwithstanding that the ownership
reciprocity of interest in the goods may have passed to the
8. The principles of interpretation stated in Rule buyer, subject to other provisions on
123 of the Rules of Court shall likewise be
Sales
observed in the construction of contracts
 Art. 1534 – Unpaid seller having the
In the case of Felipe v. Heirs of Maximo right of lien or having stopped the
Aldon [G.R. No. L-60174, February 16, goods in transit, where he expressly
1983], the Court stated that the description reserved his right to do so in case
that a contract is “invalid” is no longer precise, the buyer should make default, or
since the Civil Code uses specific names in the buyer has been in default in
designating defective contract (e.g. rescissible,
the payment of the price for an
voidable, unenforceable, and void or inexistent
contracts) unreasonable time
 Art. 1539 – In the sale of real estate
at a rate of a certain price for a unit
========================================= of measure or number, at the will of
TOPICS UNDER THE SYLLABUS the vendee, when the inferior value
A. GENERAL PROVISIONS of the thing sold exceeds one-
6. Defective Contracts tenth of the price agreed upon, or if
========================================= the vendee would not have bought
the immovable had he known of
6. DEFECTIVE CONTRACTS its smaller area or inferior quality
 Art. 1542 – In the sale of real estate,
KINDS OF DEFECTIVE CONTRACTS: made for a lump sum, where the
boundaries are mentioned and the
A. RESCISSIBLE CONTRACTS area or number within the
RESCISSIBLE CONTRACTS - Those which have
boundaries exceed that specified in
caused a particular economic damage either to
the contract, when the vendee does
one of the parties or to a 3rd person and which
not accede to the failure to
may be set aside even if valid. It may be set
deliver what has been stipulated
aside in whole or in part, to the extent of the
 Art. 1556 – Should the vendee lose,
damage caused
by reason of eviction, a part of the
REQUISITES: thing sold of such importance, in
(a) Contract must be rescissible relation to the whole, that he would
Under Art 1381: Contracts entered into by not have bought it without said part
persons exercising fiduciary capacity:  Art. 1560 – Vendee may ask for
1. Entered into by guardian whenever ward recession if the immovable sold
suffers damage by more than 1/4 of value of should be encumbered with any
object non-apparent burden or
servitude, not mentioned in the

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agreement, of such a nature that it Under Art. 1382 - Payments made in a state of
must be presumed that the vendee insolvency
would not have acquired it had he 1. Plaintiff has no other means to obtain
been aware thereof reparation.
 Art. 1567 – In cases of breach of 2. Plaintiff must be able to return whatever he
warranty against hidden defects of may be obliged to return due to rescission
3. The things must not have been passed to 3rd
or encumbrances upon the thing sold
parties who did not act in bad faith
 Art. 1658 – If the lessor or lessee
4. It must be made within the prescribed period
should not comply with their
(of 4 years)
obligations, the aggrieved party
may ask for rescission REQUISITES before a contract entered into
in fraud of creditors may be rescinded:
ART 1191 COMPARED TO ART 1381 1. There must be credit existing prior to the
celebration of the contract.
RESCISSION IN RESCISSION 2. There must be fraud, or at least, the intent
ART 1191 PROPER IN ART to commit fraud to the prejudice of the
1381 creditor seeking rescission
3. The creditor cannot in any legal manner
It is a principal it is a subsidiary
collect his credit (subsidiary character of
action retaliatory in remedy
rescission)
character 4. The object of the contract must not be
Only ground is non- There are 5 grounds legally in the possession of a 3rd person who
performance of to rescind. Non- did not act in bad faith.
one’s obligation or performance by the
OBLIGATION CREATED BY THE RESCISSION
what is incumbent other is not important
OF THE CONTRACT: Mutual Restitution
upon him a. Things w/c are the objects of the contract
and their fruits
Applies only to Applies to both
b. Price with interest
reciprocal obligation unilateral and
reciprocal obligations MUTUAL RESTITUTION NOT APPLICABLE
WHEN
Only a party to the Even a third person a. creditor did not receive anything from
contract may who is prejudiced by contract
demand fulfillment the contract may b. thing already in possession of party in
or seek the demand the rescission good faith; subject to indemnity only; if
rescission of the of the contract. there are 2 or more alienations – liability
contract of 1st infractor
Court may fix a Court cannot grant BADGES OF FRAUD
period or grant extension of time for a. consideration of the conveyance is
extension of time fulfillment of the inadequate or fictitious
for the fulfillment of obligation b. transfer was made by a debtor after a
the obligation suit has been begun and while it is
pending against him
Its purpose is to Its purpose is to seek c. sale upon credit by an insolvent debtor
cancel the contract reparation for the d. evidence of indebtedness or complete
damage or injury insolvency
caused, thus allowing e. transfer of all his property by a debtor
partial rescission of when he is financially embarrassed or
the contract insolvent

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f. transfer made between father and son spouse, ascendants or descendants (moral
where there is present any of the above coercion)
circumstances
g. failure of the vendee to take exclusive UNDUE INFLUENCE
Person takes improper advantage of his power
possession of the property
over will of another depriving latter of
B. VOIDABLE CONTRACTS reasonable freedom of choice

VOIDABLE CONTRACTS -intrinsic defect; valid The doctrine on reluctant consent provides
until annulled; defect is due to vice of consent or that a contract is still valid even if one of the
legal incapacity parties entered it against his wishes or even
against his better judgment. Contracts are also
CHARACTERISTICS:
valid even though they are entered into by one
a. Effective until set aside
b. May be assailed or attacked only in an of the parties without hope of advantage or
action for that purpose profit. Martinez vs. HSBC, [12 Phil 252]
c. Can be confirmed (NOTE: confirmation is
FRAUD
the proper term for curing the defect of a
Thru insidious words or machinations of
voidable contract)
contracting parties, other is induced to enter
d. Can be assailed only by the party whose
into contract w/o w/c he will not enter (dolo
consent was defective or his heirs or assigns
causante)
WHAT CONTRACTS ARE VOIDABLE:
a. Minors KINDS OF FRAUD IN THE PERFORMANCE OF
b. Insane unless acted in lucid interval OBLIGATION OR CONTRACTS
c. Deaf mute who can’t read or write a. Causal Fraud (dolo causante) – deception
d. Persons specially disqualified: civil of serious character without which the other
interdiction party would not have entered into; contract is
e. In state of drunkenness VOIDABLE (Art. 1338)
f. In state of hypnotic spell b. Incidental Fraud (dolo incidente) –
deception which are not serious and without
MISTAKE which the other party would still have entered
False belief of something which is contrary to
into the contract; holds the guilty party liable for
the real intention of the parties
DAMAGES (Art. 1344)
c. Tolerated Fraud – includes minimizing the
REQUISITES:
a. Refers to the subject of the thing which is defects of the thing, exaggeration of its god
the object of the contract qualities and giving it qualities it does not have;
b. Refers to the nature of the contract LAWFUL misrepresentation
c. Refers to the principal conditions in an
agreement NOTE:
d. Error as to person - when it is the principal Expression of an opinion – not fraud unless
consideration of the contract made by expert and other party relied on the
e. Error as to legal effect - when mistake is former’s special knowledge
mutual and frustrates the real purpose of
Fraud by third person – does not vitiate
parties
consent; only action for damages except if there
VIOLENCE is collusion between one party and the third
Serious or irresistible force is employed to wrest person, or resulted to substantial mistake,
consent mutual between parties.

INTIMIDATION CAUSES OF EXTINCTION OF ACTION TO


One party is compelled by a reasonable and ANNUL
well-grounded fear of an imminent and grave a.PRESCRIPTION - Period to bring an action
danger upon person and property of himself, for Annulment

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i. Intimidation, violence, undue influence - 4 b. Curable by Ratification - Both parties
years from time defect of consent ceases incapable of giving consent -2 minor or 2
ii.Mistake, fraud – 4 years from time of insane persons
discovery c. Curable by Acknowledgment - Failure
iii. Incapacity - to comply with Statute of Frauds
From time guardianship ceases
STATUTE OF FRAUDS:
 Discovery of fraud must be reckoned to have Agreement to be performed within a year
taken place from the time the document was after making contract
registered in the office of the register of Special promise to answer for debt, default
deeds. Registration constitutes constructive or miscarriage of another
notice to the whole world. Carantes v. CA, Agreement made in consideration of promise
[76 SCRA 514] to marry
Agreement for sale of goods, chattels or
b. RATIFICATION things in action at price not less than 500;
REQUISITES: exception: auction when recorded sale in
i. Knowledge of reason rendering sales book
contract voidable Agreement for lease of property for more
ii. Such reason must have ceased, except than one year and sale of real property
in case of ratification effected by the regardless of price
guardian to contracts entered into by Representation as to credit of another
an incapacitated,
iii. The injured party must have executed TWO WAYS OF CURING UNENFORCEABLE
an act which expressly or impliedly CONTRACTS:
conveys an intention to waive his right a. Failure of defendant to object in time,
to the presentation of parole evidence in
c. LOSS OF THE THING which is the object of court, the defect of unenforceability is cured
the contract through fraud or fault of the
person who is entitled to annul the contract b. Acceptance of benefits under the
contract. If there is performance in either
NOTE: Object is lost through a fortuitous event, part and there is acceptance of performance,
the contract can still be annulled, but the person it takes it out of unenforceable contracts;
obliged to return the same can be held liable also estoppel sets in by accepting
only for the value of the thing at the time of the performance, the defect is waived
loss, but without interest thereon.
NOTES:
Ratification cleanses the contract of its defects  The contracts/agreements under the Statute
from the moment it was constituted. of Frauds require that the same be
evidenced by some note or memorandum or
C. UNENFORCEABLE CONTRACT writing, subscribed by the party charged or
UNENFORCEABLE CONTRACT – valid but cannot by his agent, otherwise, the said contracts
compel its execution unless ratified; extrinsic shall be unenforceable.
 The Statute of Frauds applies only to
defect; produce legal effects only after ratified
executory contracts, not to those that are
KINDS: partially or completely fulfilled.
a. Unauthorized or No sufficient
authority – entered into in the name of D. VOID OR INEXISTENT
another when: VOID OR INEXISTENT – of no legal effect
i. No authority conferred
ii. In excess of authority conferred (ultra CHARACTERISTICS:
vires) a. It produces no effect whatsoever
either against or in favor of anyone

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b. There is no action for annulment 2. There should be a stipulation for automatic
necessary as such is ipso jure. A appropriation by the creditor of the thing
mortgaged in case of non-payment of the
judicial declaration to that effect is
principal obligation within the stipulated period.
merely a declaration
c. It cannot be confirmed, ratified or 2. PACTUM DE NON ALIENANDO (Art.
cured 2130)
d. If performed, restoration is in order,
except if pari delicto will apply  A stipulation forbidding the owner from
e. The right to set up the defense of
alienating the immovable mortgaged shall
nullity cannot be waived
f. Imprescriptible be void.
g. Anyone may invoke the nullity of the
 It is a clause in a mortgage giving the
contract whenever its juridical effects
are asserted against him mortgagee the right to foreclose by
executory process directed solely against the
KINDS OF VOID CONTRACT: mortgagor, and giving him or her the right to
a. Those lacking in essential elements: seize and sell the mortgaged property,
no consent, no object, no cause regardless of any subsequent alienations.
(inexistent ones) – essential formalities
are not complied with ( ex: donation
propter nuptias – should conform to 3. PACTUM LEONINA (Art. 1799)
formalities of a donation to be valid )
A stipulation which excludes one or more
i. Those w/c are absolutely simulated
partners from any share in profit or loss is void.
or fictitious – no cause
ii. Those which cause or object did not
KINDS OF ILLEGAL CONTRACTS
exist at the time of the transaction – PARI DELICTO DOCTRINE
no cause/object Both parties are guilty, no action against each
iii. Those whose object is outside the other; those who come in equity must come with
commerce of man – no object clean hands; applies only to illegal contracts and
iv. Those w/c contemplate an
not to inexistent contracts; does not apply when
impossible service – no object
a superior public policy intervene
v. Those w/c intention of parties
relative to principal object of the EXCEPTION TO PARI DELICTO RULE - If
contract cannot be ascertained purpose has not yet been accomplished and if
b. Prohibited by law
damage has not been caused to any 3rd person
c. Those expressly prohibited or
declared void by law - Contracts w/c OTHER EXCEPTIONS:
violate any legal provision, whether it a. Payment of Usurious interest
amounts to a crime or not b. payment of money or delivery of
d. Illegal/Illicit ones – Those whose property for an illegal purpose, where
cause, object or purpose is contrary to the party who paid or delivered
law, morals, good customs, public order repudiates the contract before the
or public policy ; Ex: Contract to sell purpose has been accomplished, or
marijuana before any damage has been caused to a
3rd person
OTHER VOID CONTRACTS: c. payment of money or delivery of
1. PACTUM
property made by an incapacitated
COMMISSORIUM (Arts. 2088, 2130, 1390)
person
d. agreement or contract which is not
ELEMENTS:
illegal per se and the prohibition is
1. There should be a property mortgaged by way
of security for the payment of the principal designed for the protection of the
obligation. plaintiff

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e. payment of any amount in excess of the does not know what he is entering into;
maximum price of any article or unable to understand the consequences
commodity fixed by law or regulation by of his own action
competent authority b. If agreement is not illegal per se but
f. contract whereby a laborer undertakes to merely prohibited and prohibition is
work longer than the maximum number designated for the protection of the
of hours fixed by law plaintiff – may recover what he has paid
g. One who lost in gambling because of or delivered by virtue of public policy
fraudulent schemes practiced on him is
allowed to recover his losses (Art. 313 MUTUAL RESTITUTION IN VOID CONTRACTS
RPC) even if gambling is prohibited. GENERAL RULE: parties should return to each
other what they have given by virtue of the void
REQUISITES OF ILLEGAL CONTRACTS: contract in case
a. Contract is for an illegal purpose  Where nullity arose from defect in essential
b. Contract must be repudiated by any of elements
the parties before purpose is a. return object of contract
accomplished or damage is caused to 3rd and fruits
parties b. return price plus interest
c. Court believes that public interest will
be served by allowing recovery EXCEPTION: No recovery can be had in cases
(discretionary upon the court) – based on where nullity of contract arose from illegality of
remorse; illegality is accomplished when contract where parties are in pari delicto;
parties entered into contract; before it except when incapacitated – not obliged to
takes effect – party w/c is remorseful return what he gave but may recover what he
prevents it has given other party is less guilty or not guilty

WHERE LAWS ARE ISSUED TO PROTECT =========================================


CERTAIN SECTORS: CONSUMER TOPICS UNDER THE SYLLABUS
PROTECTION, LABOR, AND USURY LAW A. GENERAL PROVISIONS
a. Consumer protection – if price of 7. Effect of Contracts
commodity is determined by statute, =========================================
any person paying an amount in excess
of the maximum price allowed may 7. EFFECT OF CONTRACTS
recover such excess Contracts take effect only between the parties,
b. Labor – if law sets the minimum wage their assigns and heirs, except in case where the
for laborers, any laborer who agreed to rights and obligations arising from the contract
receive less may still be entitled to are not transmissible by their nature, or by
recover the deficiency; if law set max stipulation or by provision of law. The heir is not
working hours and laborer who liable beyond the value of the property he
undertakes to work longer may received from the decedent. (Article 1311)
demand additional compensation
c. Interest paid in excess of the interest If a contract should contain some stipulation in
allowed by the usury law may be favor of a third person, he may demand its
recovered by debtor with interest from fulfillment provided he communicated his
date of payment acceptance to the obligor before its revocation.
A mere incidental benefit or interest of a person
EFFECTS OF ILLEGAL CONTRACTS
is not sufficient. The contracting parties must
a. If one party is incapacitated, courts may
have clearly and deliberately conferred a favor
allow recovery of money, property
upon a third person. (Article 1311)
delivered by incapacitated person in the
interest of justice; pari delicto cannot
apply because an incapacitated person

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SALES =========================================
TOPICS UNDER THE SYLLABUS
A. INTRODUCTION
A. INTRODUCTION 3. Stages of Contract of Sale
================================ =========================================
TOPICS UNDER THE SYLLABUS
3. STAGES IN LIFE OF CONTRACT OF SALE
1. Negotiation
A. Introduction 2. Perfection
1. Definition of sales (Arts. 1458, 3. Consummation
1470)
=========================================
2. Essential requisites of a contract
TOPICS UNDER THE SYLLABUS
of sale (Art. 1505) A. INTRODUCTION
3. Stages of contract of sale 4. Obligations created
4. Obligations created (Art. 1165) =========================================
5. Characteristics of a contract of
sale 4. OBLIGATIONS CREATED
2 sets of real obligations to give
6. Sale is title and not mode
7. Sale distinguished from other Obligation of the Seller:
contracts a. to transfer ownership and
b. to deliver possession
8. Contract of sale/contract to sell
=========================================
========================================= TOPICS UNDER THE SYLLABUS
TOPICS UNDER THE SYLLABUS A. INTRODUCTION
A. INTRODUCTION 5. Characteristics of Contract of Sale
1. Definition of Sales =========================================
=========================================
5. CHARACTERISTICS OF CONTRACT OF
1. DEFINITION OF SALES (Arts. 1458 & SALE:
1470) 1. Nominate
2. Principal
CONTRACT OF SALE – One of the contracting 3. Consensual
parties obligates himself to transfer the 4. Bilateral
ownership of and to deliver a determinate 5. Reciprocal
thing, and the other to pay therefore a price 6. Onerous
certain in money or its equivalent. A contract 7. Commutatitve
of sale may be absolute or conditional. 8. Title and not a mode

========================================= =========================================
TOPICS UNDER THE SYLLABUS TOPICS UNDER THE SYLLABUS
A. INTRODUCTION A. INTRODUCTION
2. Elements of a Contract of Sale 6. Sale is Title and not Mode
========================================= =========================================
2. ELEMENTS OF A CONTRACT OF SALE 6. SALE IS TITLE AND NOT MODE
1. Consent
=========================================
2. Determinate subject matter TOPICS UNDER THE SYLLABUS
A. INTRODUCTION
3. Price certain in money or its equivalent

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Lease Sale
If consideration consists partly in money
Use of thing is for a Obligation to
and partly by thing –
specified period only absolutely transfer
look at manifest intention;
with an obligation to ownership of thing
return If intention is not clear: If intention is not
value of thing is clear: value of thing
Consideration is rent Consideration is price
more than amount of is equal or less than
Lessor need not be Seller needs to be
money – barter amount of money –
owner owner of thing to
sale
transfer ownership

7. Sale distinguished from other


contracts
========================================

DATION IN PAYMENT DISTINGUISHED FROM


CONTRACT FOR PIECE OF WORK SALE
DISTINGUISHED FROM SALE Dation in Payment Sale
Pre-existing credit No pre-existing
Contract for piece of Sale credit
work Obligations are Obligations are
Goods are to be Contract for delivery extinguished created
manufactured specially of an article which Debtor’s consideration: Consideration of
for a customer and the vendor in the extinguishment of the seller: price
upon special order and ordinary course of debt Consideration of
not for the general business Creditor’s consideration: buyer: acquisition
market manufactures or acquisition of the object of the object
procures for general offered in lieu of the
market (whether on original credit
hand or not) Less freedom in Greater freedom
Essence is service Essence is object determining the price in determining
Real obligation Personal obligation the price
Tests under Jurisprudence: Payment is received by Buyer still has to
GR: IF YES, Contract for piece of work, IF the debtor before the pay the price
NO, SALE contract is perfected

1. Timing test - Under art 1467: whether the AGENCY TO SELL DISTINGUISHED FROM
thing transferred only existed upon special SALE
order Agency to Sell Sale

2. Habituality test - if manufacturer engages Agent not obliged to Buyer pays for price
in activity with the need to employ pay for price, merely of object
extraordinary skills and equipment (Celestino v obliged to deliver price
CIR) received from buyer.
Preparatory contract Principal contract
3. Nature of the object test - Each product’s Principal remains owner Buyer becomes
nature of execution differs from the others; even if object delivered owner of thing; in
products are not ordinary products of to agent agency
Manufacturer (EEI v CIR)
Agent assumes no Seller warrants
risk/liability as long as
within the authority
BARTER DISTINGUISHED FROM SALE given
Barter Sale May be revoked Not unilaterally
Consideration: giving Consideration: giving unilaterally because revocable
of a thing of money as payment fiduciary and even if
Governed by law on sales: species of the genus revoked w/o ground
sales Agent not allowed to Seller receives profit

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profit ================================
Personal Contract; Real Contract
Rescission is not
available B. PARTIES TO A CONTRACT
OF SALE
DONATION DISTINGUISED FROM SALE ================================
Donation Sale
TOPICS UNDER THE SYLLABUS
Gratuitous or Onerous
onerous
Formal contract Consensual contract B. Parties to a Contract of Sale
1. Capacity of parties (Arts. 1489-
NOTE: Lease with option to buy: really a 1492)
contract of sale but designated as lease in name
only; it is a sale by installments 2. Absolute incapacity (Arts. 1327,
1397, 1399)
3. Relative incapacity: married
persons
4. Special disqualifications (Arts.
1491-1492)

=========================================
========================================= TOPICS UNDER THE SYLLABUS
TOPICS UNDER THE SYLLABUS B. PARTIES TO A CONTRACT OF SALE
A. INTRODUCTION 1. Capacity of Parties
=========================================
8. Contract of Sale/Contract to Sell
========================================= GENERAL RULE - All persons who are
authorized in this Code to obligate themselves
8. Contract of Sale/Contract to Sell may enter into a contract of sale
Contract of Sale Contract to Sell
Absolute Conditional =========================================
Real obligation – Personal obligation – TOPICS UNDER THE SYLLABUS
obligation to give obligation to do B. PARTIES TO A CONTRACT OF SALE
Title passes to the Ownership is reserved 2. Absolute Incapacity
buyer upon delivery in the seller and will =========================================
pass to the buyer only
upon full payment of
2. ABSOLUTE INCAPACITY
the price
MINORS, INSANE AND DEMENTED
Non-payment of the Full payment is a
PERSONS, AND DEAF-MUTES
price is a negative positive suspensive
resolutory condition condition, the failure
of which is not a  Contracts are voidable, subject to
breach but prevents annulment or ratification
the obligation of the
vendor to convey title  Also includes:
to arise
Remedies available: Remedies available: - State of drunkenness
Specific Resolution
Performance Damages - Hypnotic spell
Rescission
Damages - NECESSARIES: Those sold and delivered
to a minor or other person without
END OF DISCUSSION ON TOPIC
A. INTRODUCTION

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capacity to act, he must pay a property involved in litigation (reason is that the
reasonable price therefore transfer or assignment of the property takes
effect only after the finality of a favorable
========================================= judgment
TOPICS UNDER THE SYLLABUS
B. PARTIES TO A CONTRACT OF SALE II. Legal Status of Contract
3. Relative Incapacity 1. Void (case law) – guardian/ executor/public
========================================= officers / officers of the court
2. Voidable (civil code) – agent; VALID if with
3. RELATIVE INCAPACITY consent
A. SPOUSES - A spouse may, without the
=========================================
consent of the other spouse, enter into sales
TOPICS UNDER THE SYLLABUS
transactions in the regular pursuit of their
B. PARTIES TO A CONTRACT OF SALE
profession, vocation, or trade. These contracts
4. Special Disqualifications
are void.
=========================================
GENERAL RULE: The husband and the wife
4. SPECIAL DISQUALIFICATIONS
cannot sell property to each other.
EXCEPTION:
 When a separation of property was agreed
upon in the marriage settlement END OF DISCUSSION ON TOPIC
B. PARTIES TO A CONTRACT OF SALE
 When there has been a judicial separation
================================
of property under Art. 191

NOTE: Prohibition likewise applies to common-


C. SUBJECT MATTER OF SALE
law spouses ================================
TOPICS UNDER THE SYLLABUS
B. OTHERS - TRUST RELATIONSHIPS
I. Art. 1491 - Two groups of parties prohibited C. Subject Matter
from acquiring by purchase certain properties:
1. Requisites of a valid subject
a. Guardian/Agent/Executors and Administrators matter (Arts. 1459-1465)
 Direct or indirect 2. Particular kinds
 May be ratified since only private wrong is =========================================
involved TOPICS UNDER THE SYLLABUS
C. SUBJECT MATTER OF SALE
1. Requisites of a valid subject
b. Public Officers & Employees/Officers of Court
i. Cannot be ratified since public wrong is matter
involved =========================================
ii. Requisites for the prohibition to
apply to attorneys:
1. Existence of attorney client
relationship;
2. Property is the subject matter in
litigation;
3. While in litigation (from filing of
complaint to final judgment)

NOTE: Exception to the prohibition against


attorneys: contingent fee arrangement where
the amount of legal fees is based on a value of

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1. REQUISITES OF A VALID SUBJECT =========================================
MATTER TOPICS UNDER THE SYLLABUS
Emptio rei Emptio spei
speratae
Requisites: Sale of an Sale of a mere hope or
1. Things expected expectancy that the thing
thing will come to existence;
A. “Possible” - existing, future, and sale of the hope itself
contingent Sale is Sale is effective even if
i. Whether the subject subject to the the thing does not come
matter is of a type and nature that condition; into existence, unless it is
exists or could be made to exist to that the thing a vain hope (Art 1461
allow the seller reasonable certainty will exist; if it Sale of a vain hope or
does not, expectancy is void)
of being able to comply with his
there is no
obligations contract
Uncertainty The uncertainty is with
ii. Minimum requirement of is with regard regard to the existence of
potential existence: taking into to the the thing
consideration the state of science quantity and
and technology at the time of quality of the
perfection of the contract thing and not
the existence
B. Licit of the thing
B.1. Not outside the commerce of man Object is a Object is a present thing
B.2. If illicit, contract is void future thing which is the hope or
B.3. Prohibited: expectancy
i. Animals with contagious C. SUBJECT MATTER OF SALE
diseases 2. Particular Kinds
ii. Sale of future inheritance =========================================

C. Determinate or determinable 2. PARTICULAR KINDS


i. Determinate: particularly designated or
physically segregated from all others of GOODS THAT MAY BE THE OBJECTS OF SALE
the same class; always specific 1. Existing goods – goods owned or
possessed by the seller at the time of
ii. Determinable: always generic perfection

a) Thing is capable of 2. Future goods – goods to be


being made determinate manufactured, raised or acquired by the
seller after the perfection of the contract
b) Without the
necessity of a new or further contract
between the parties. NOTES:
 Quantity of subject matter is not essential for
perfection; must determine nature and
NOTE: Subject matter CAN NOT be
quality of subject matter
DETERMINED BY a 3rd PARTY.

2. Rights – Must be transmissible, except:  Generic things may be the object of sale, but
the obligation to deliver the subject matter
a. Future inheritance can only be complied with when the subject
matter has been made determinate (either
b. Service by physical segregation or particular
designation)

CIVIL LAW REVIEWER Page 134 of


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END OF DISCUSSION ON TOPIC But subject to ANTI-FENCING LAW
C. SUBJECT MATTER OF SALE
TITLE AS TO MOVABLE PROPERTIES
GENERAL RULE: Possession is equivalent to
================================ title
D. OBLIGATIONS OF THE REQUISITES: Possession of movable and Good
Faith
SELLER TO TRANSFER EXCEPTIONS:
OWNERSHIP 1. Owner lost movable – owner can recover
================================ without reimbursing price
2. Owner is unlawfully deprived – owner can
TOPICS UNDER THE SYLLABUS recover w/o reimbursing price

D. Obligations of the Seller to EXCEPTIONS TO THE EXCEPTIONS:


1. Movable is bought at public sale – owner can
Transfer Ownership only recover after reimbursing price
1. Sale by a person not the owner 2. Acquired in good faith and for value from
at time of delivery (Arts. 1462, 1505, auction
1459); Exceptions =========================================
2. Sale by a person having a TOPICS UNDER THE SYLLABUS
voidable title (Arts. 1506, 559) D. OBLIGATIONS OF THE SELLER TO
TRANSFER OWNERSHIP
========================================= 1. Sale by a person having a voidable
TOPICS UNDER THE SYLLABUS
title
D. OBLIGATIONS OF THE SELLER TO
========================================
TRANSFER OWNERSHIP
1. Sale by a person not the owner at
the time of delivery END OF DISCUSSION ON TOPIC
=========================================
D. OBLIGATIONS OF THE SELLER TO
1. OBLIGATION OF THE SELLER TO TRANSFER OWNERSHIP
TRANSFER OWNERSHIP
GENERAL RULE: Seller need not be the owner ================================
of the subject matter at the time of perfection: E. PRICE
sufficient that he is the owner at the time of
delivery. ================================
TOPICS UNDER THE SYLLABUS
EXCEPTION: Foreclosure sale (mortgager must
be absolute owner) E. Price
RULES ON LEGAL EFFECTS OF SALE BY A 1. Meaning of price (Arts. 1469-
NON-OWNER 1474)
GENERAL RULE: Sale by non-owner, buyer 2. Requisites for a valid price
acquires no better title than seller had.
3. How price is determined
EXCEPTIONS: 4. Inadequacy of price (Arts. 1355,
1. Owner by his conduct is precluded from 1470)
denying seller’s authority (ESTOPPEL)
2. Contrary is provided for in recording laws (PD 5. When no price agreed (Art. 1474)
1529) 6. Manner of payment must be
3. Sale is made under statutory power of sale or agreed upon
under order of a court of competent jurisdiction
4. Sale is made in a merchant’s store in 7. Earnest money vs. Option money
accordance with code of commerce and special (Art. 1482)
laws.

CIVIL LAW REVIEWER Page 135 of


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========================================= e. But never by one party to the
TOPICS UNDER THE SYLLABUS contract (unless the price is accepted
E. PRICE by the other party)
1. Meaning of Price
=========================================
Note: When the 3rd party is unwilling to set the
1. MEANING OF PRICE price, the parties may not ask the court to fix
PRICE – The sum stipulated as the equivalent of the price because the condition imposed on the
the thing sold and also every incident taken into contract has not happened yet and thus, no
consideration for the fixing of the price, put to enforceable contract has arisen.
the debit of the vendee and agreed to by him.
EFFECT WHERE PRICE IS SIMULATED
 The act may be shown to have been in
========================================= reality a donation, or some other act or
TOPICS UNDER THE SYLLABUS contract
E. PRICE
2. Requisites for a Valid Price  If not and neither party had any intention
========================================= whatsoever that the amount will be paid
(absolutely simulated): the sale is void
2. REQUISITES FOR A VALID PRICE:
If there is a real price but what is stated
A. Real in the contract is not the one intended to
When at the perfection of the contract of sale, be paid (only relatively simulated): the
there is every intention on the buyer to pay the contract of sale is valid but subject to
price, and every expectation on the part of the reformation (false price)
seller to receive such price as the value of the
subject matter he obligates himself to deliver.
EFFECT OF NON-PAYMENT OF PRICE
(Test of intention)

B. In money or its equivalent NOTE: Non-payment of price does not cancel


Consideration for a valid contract of sale can be sale, as the sale is still considered perfected. But
the price and other valuable consideration; at it is a cause for either:
the very least, a true contract of sale must have
price as part of its consideration (Test of value 1. Specific performance or
consideration)
2. Rescission.
C. Certain or ascertainable
i. Certain: expressed and agreed in
terms of specific pesos and/or =========================================
centavos TOPICS UNDER THE SYLLABUS
E. PRICE
ii. Ascertainable: 3. How price is determined
=========================================
a. Set by third persons

b. Set by the courts – in cases where 3. HOW PRICE IS DETERMINED


the third person fixes the price in bad
faith or by mistake
=========================================
c. Set by reference to a definite day, TOPICS UNDER THE SYLLABUS
particular exchange or market E. PRICE
4. Inadequacy of price
d. Set by reference to another thing =========================================
certain
4. INADEQUACY OF PRICE

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EFFECT OF GROSS INADEQUACY OF PRICE EARNEST MONEY
1. Money given as part of purchase price
NOTE: Mere inadequacy of the price does not
affect the validity of the sale, except 2. Acceptance is the proof that contract of
sale exists
(1) When there is fraud, mistake, or undue
influence indicative of a defect in consent is 3. Nothing in law prevents parties from
present, treating earnest money differently

(2)When it shows that the parties really intended 4. Old concept: subject to forfeiture when
a donation or some other act or contract. BUYER backs out

(3)Judicial sale, where the inadequacy is 5. New concept: cannot be forfeited – part
shocking to the conscience of man and there is of purchase price; must be restored
showing that in event of resale, a better price
can be obtained. 6. Qualification: if old concept is stipulated
– VALID
=========================================
TOPICS UNDER THE SYLLABUS 7. Presumption of perfection of contract of
E. PRICE sale and such earnest money as part of
5. When no price agreed purchase price is disputable
=========================================
OPTION MONEY DISTINGUISHED FROM
5. WHEN NO PRICE AGREED EARNEST MONEY
OPTION MONEY EARNEST MONEY
Note: If there was a failure of the contract to
set a price but the BUYER has already Money given as distinct Part of the purchase
APPROPRIATED IT, then the buyer must pay a
consideration for an price
reasonable price (Article 1474)
option contract

========================================= Applies to a sale not Given only when


TOPICS UNDER THE SYLLABUS perfected there is already a
E. PRICE sale
6. Manner of payment must be Not required to buy When given, buyer
agreed upon is bound to pay the
========================================= balance

6. MANNER OF PAYMENT MUST BE


AGREED UPON
END OF DISCUSSION ON TOPIC
Manner of payment must be agreed upon E. PRICE
Marnelego v. Banco Filipino Savings and
Mortgage Bank, [G.R. No. 161524, January
27, 2006
================================
F. FORMATION OF CONTRACT
=========================================
TOPICS UNDER THE SYLLABUS OF SALE
E. PRICE ================================
7. Earnest money vs. Option money TOPICS UNDER THE SYLLABUS
=========================================
F. Formation of Contract of Sale
7. EARNEST VS. OPTION MONEY
1. Preparatory (Art. 1479)

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1.1. Offer (Art. 1475) 4. Offer floated Continues to be valid
without depending upon
1.2. Option contract (Arts. 1479,
circumstances of time,
1324) period/without place and person
1.3. Right of first refusal condition
1.4. Mutual promise to buy and 5. Offer is Original offer is destroyed,
sell (Art. 1479) floated and there is a new offer; can
there not go back to original offer
2. Perfection (Arts. 1475, 1319,
1325, 1326) is counter-offer
3. Formalities of the contract (Art. 6. Offer is No authority of offeror to
1403 (d)&(e)) floated modify offer

7. Offer Proceed to perfected stage


=========================================
accepted
TOPICS UNDER THE SYLLABUS
absolutely
F. FORMATION OF CONTRACT OF
SALE
1. Preparatory OPTION CONTRACT - a contract granting an
========================================= exclusive right in one person, for which he has
paid a separate consideration, to buy a certain
object within an agreed period
1. PREPARATORY
3 STAGES IN LIFE OF A CONTRACT OF SALE NOTE: There is no presumption of
A. Policitacion/Negotiation Stage - offer is consideration, it needs to be proven
floated, acceptance is floated but they do not
meet; the time when parties indicate their
OPTION- an unaccepted or unexercised
interest but no concurrence of offer and
contractual offer
acceptance.
B. Perfection - concurrence of all requisites;
meeting of the minds. Characteristics of Option Contract
C. Consummation - parties perform their
respective undertakings a. Not the contract of sale by itself, separate
and distinct

A. PREPARATORY b. Nominate
I. RULES:
c. Principal - but can be attached to other
1. Offer is Prior to acceptance, may principal contracts
floated be withdrawn at will by
offeror d. Onerous

2. Offer floated Without acceptance, e. Commutative


with a period extinguished when period
f. Unilateral – versus contract of sale which is
has ended and maybe
bilateral
withdrawn at will by offeror;
right to withdraw must not g. Preparatory
be arbitrary otherwise,
liable to damage under Art
19, 20, 21 of Civil Code
Consideration in an option contract may be
3. Offer floated Extinguished by anything of value, unlike in sale where it must
w/ condition happening/non-happening be price certain in money. (San Miguel
of condition Philippines v. Cojuangco)

CIVIL LAW REVIEWER Page 138 of


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a
How EXERCISED: Notice of acceptance should be valid written principal contract (e.g. lease). RFR
communicated to offeror without actual becomes one of the considerations in the
payment as long as there is delivery of payment contract. If RFR is violated, and property sold to
another buyer in bad faith, the sale to the 3 rd
in consummation stage
party buyer is rescissible. The price for the 3rd
party buyer is to be the basis for the price of the
ELEMENTS OF VALID OPTION CONTRACT
sale back to the one with the RFR. Equatorial
Dev’t v. Mayfair Theater, [370 SCRA 56]
a. Consent – meeting of the minds
b. Subject matter – an option right, or accepted
Effect of new doctrine: turned the world of
unilateral offer to buy, or accepted unilateral
policitacion upside down because while valid
offer to sell:
option contract is not subject to specific
i. a determinate object
performance, right of first refusal which does not
ii. for a price certain (including manner of
even have a separate consideration may be
payment)
subject to specific performance
c. Prestation – a consideration separate from
Recognizes recovery of damage based on abuse
purchase price for option given of rights doctrine

SITUATIONS IN AN OPTION CONTRACT: OPTION CONTRACT DISTINGUISHED FROM


RIGHT OF FIRST REFUSAL
a. With separate consideration Option Contract Right of First
Refusal
i. Option contract is valid
Principal contract; Accessory; can not
ii. Offeror cannot withdraw offer until stands on its own stand on its own
after expiry period Needs separate Does not need
consideration separate consideration
iii. Subject to rescission, damages but Subject matter and There must be subject
not to specific performance because price must be valid matter but price not
this is not an obligation to give important
Not conditional Conditional
b. Without separate consideration Not subject to Subject to specific
i. OLD RULE - offer is still valid, but specific performance performance
option contract is void and not
subject to rescission, damages
=========================================
ii. NEW RULE: Right of first refusal TOPICS UNDER THE SYLLABUS
recognized as a valid offer F. FORMATION OF CONTRACT OF
SALE
RIGHT OF FIRST REFUSAL:
1. Creates a promise to enter into a 2. Perfection of Sales
contract of sale and it has no separate =========================================
consideration, not subject to specific
performance because there is no 2. PERFECTION OF SALES
contractual relationship here and it is
not an obligation to give (not a real GENERAL RULE: A contract of sale is perfected
contract) at the moment there is a meeting of the minds
upon the thing which is the object of the
2. New doctrine: May be subject to contract and upon the price; consensual
contract
specific performance.

EXCEPTION: When the sale is subject to a


The right of first refusal is only subject to suspensive condition
specific performance insofar as it is attached to

CIVIL LAW REVIEWER Page 139 of


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REQUIREMENTS: - Reason: purposes of
convenience only and not for validity
1. When parties are face to face – when and enforceability; cause of action is
there is absolute acceptance of an offer granted to sue and compel other
that is certain
party to execute the document

2. When thru correspondence or


telegram – when the offeror receives or When form is important for validity;
had knowledge of the acceptance exception by specific provision of law;

3. When the sale is subject to a 1. Power to sell a piece of land granted to


suspensive condition – from the an agent – otherwise VOID
moment the condition is fulfilled
2. Sale of large cattle; must also be
NOTES: Qualified acceptance: mere counter- registered with Municipal treasurer –
offer which needs to be absolutely accepted to otherwise VOID
give rise to perfected contract of sale
3. Sale of land by non-Christian if not
Business ads are mere invitations to make an approved by Governor– VOID
offer except when it appears to be otherwise
When form is important for enforceability
Rules governing auction sales: [STATUTE OF FRAUDS Article 1403 (2)]
1. Sales of separate lots by auction are separate
contracts of sale a. Performed 1 Year: A sale agreement
2. Sale is perfected by the fall of the hammer which by its terms is not to be
3. Seller has the right to bid at the auction performed within a year from the
provided such right was reserved and notice was making thereof;
given to that effect
b. 500 and Above: An agreement for the
sale of goods, chattels or things in
========================================= action, at a price not less than P500.00;
TOPICS UNDER THE SYLLABUS and
F. FORMATION OF CONTRACT OF
SALE c. Sale Land: A sale of real property or of
an interest therein.
3. Formalities of the Contract
EXCEPTIONS TO COVERAGE OF STATUTE IN
=========================================
SALES CONTRACTS:
3. FORMALITIES OF THE CONTRACT 1. WRITTEN: When there is a note or
memorandum in writing and subscribed
Form not important in validity of sale to by party or his agent (contains
essential terms of the contract)
A. Sale being consensual, may be oral or
written, perfected by mere consent as to 2. PARTIAL EXECUTION: When there has
price and subject matter been partial performance/execution
(seller delivers with intent to transfer
B. If particular form is required under the title/receives price)
statute of frauds:
3. FAILURE TO OBJECT: When there has
- valid and binding between parties been failure to object to presentation of
but not binding to 3rd persons evidence (oral)

CIVIL LAW REVIEWER Page 140 of


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4. E-COMMERCE: When sales are effected G. TRANSFER OF OWNERSHIP
through electronic commerce
1. Manner of Transfer
=========================================
While a sale of land appearing in a private deed
is binding between the parties, it cannot be 1. MANNER OF TRANSFER
considered binding on third persons if not
embodied in a public instrument and recorded in
NOTE: Stage where parties both comply with
the Registry of Deeds. Secuya v. Vda. De their obligation.
Selma, [G.R. No. 136021, February 22,
2000] OBLIGATIONS OF THE SELLER
1. Preserve subject matter (proper diligence of a
good father of a family unless law or parties
stipulate another standard)
END OF DISCUSSION ON TOPIC 2. Deliver – transfer ownership and deliver
E. FORMATION OF CONTRACT OF object
3. Deliver fruits and accessories
SALE 4. Warrant subject matter against eviction and
hidden defects

A. Delivery of the Thing - Transfer ownership


(tradicion) covers twin obligations of the seller
which are:
1. To transfer the ownership; and
2. To deliver a determinate thing

B. Delivery of the thing together with the


payment of the price, marks the consummation
of the contract of sale. PNB v. Ling, [69 Phil
================================ 611, October 5, 1927]
G. TRANSFER OF OWNERSHIP The act of delivery must be coupled with the
================================ intention of delivering the thing and putting the
TOPICS UNDER THE SYLLABUS buyer under control. Norkis Distributor v. CA,
[195 SCRA 694, February 7, 1991]
G. Transfer of Ownership =========================================
1. Manner of Transfer (Arts. 1477, TOPICS UNDER THE SYLLABUS
1496-1501) G. TRANSFER OF OWNERSHIP
2. When delivery does not transfer 2. When Delivery does not transfer
title Title
3. Kinds of delivery =========================================
4. Double sales (Art. 1544) 2. WHEN DELIVERY DOES NOT TRANSFER
5. Property Registration Decree TITLE
5.1. Requisites for registration of
=========================================
deed of sale in good faith
TOPICS UNDER THE SYLLABUS
5.2. Accompanied by vendors G. TRANSFER OF OWNERSHIP
duplicate certificate of title, 3. Different Kinds of Delivery
payment of capital gains tax, and =========================================
documentary tax registration fees
3. DIFFERENT KINDS OF DELIVERY
=========================================
TOPICS UNDER THE SYLLABUS Different Kinds of Delivery:

CIVIL LAW REVIEWER Page 141 of


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1. Actual or real - when thing sold is placed in over the thing sold that, at the moment of sale,
the control and possession of the buyer its material delivery could have been made.
2. Legal or Constructive- can take several forms Addison v. Felix, [38 Phil. 404]
and may be any manner signifying an
agreement that the possession is transferred
from the vendor to the vendee.
A. WHEN EXECUTION OF PUBLIC
C. Different forms of Constructive Delivery - INSTRUMENT DOES NOT PRODUCE THE
Constructive delivery has same legal effect as
EFFECTS OF DELIVERY
actual or physical delivery

Gives rise only to a prima facie presumption of 1. When there is stipulation to contrary,
delivery which is destroyed when actual delivery execution does not produce effect of
is not effected because of a legal impediment. delivery
Ten Forty Realty v. Cruz
2. When at the time of execution of
1. Traditio Longa Manu instrument, subject matter was not
subject to control of the seller
Delivery of thing by mere agreement; when
SELLER points to the property without need of 3. Subject matter should be within control
actually delivering of seller; he should have capacity to
deliver at the time of execution of public
2. Traditio Brevi Manu
instrument when he wants to effect
Before contract of sale, the would be buyer was actual delivery
already in possession of the would be subject
matter of sale (ex: as lessee) 4. Such capacity should subsist for a
reasonable time after execution of
3. Symbolic delivery instrument (reasonable time depends on
circumstances of persons, places and
As to movables – ex: delivery of the keys to a things)
car

4. Constitutum possessarium
 The presumption of delivery when the sale is
When at the time of the perfection of the made through a public instrument can be
contract of sale, seller had possession of the rebutted by clear and convincing evidence.
subject matter in the concept of owner and Presumptive delivery through a public
pursuant to the contract, seller continues to hold instrument can be negated by the failure of
physical possession no longer in the concept of the vendee to take actual possession of the
an owner but as a lessee or any other form of land or the continued enjoyment of
possession other than in the concept of owner.
possession by the vendor. Santos v.
Santos, [366 SCRA 395]

5. Quasi-tradition
B. Delivery of Fruits and Accessions/
Delivery of rights, credits or incorporeal Accessories
property, made by:
Placing titles of ownership in the hands of Right to fruits and accessions/accessories accrue
the buyer from time sale is perfected but no real right over
Allowing buyer to make use of rights it until it is delivered

6. Tradition by operation of law C. Delivery Through Carrier

The execution of a public instrument is GENERAL RULE: Where the seller is authorized
equivalent to delivery. But to be effective, it is or required to send the goods to the buyer,
necessary that the vendor have such control delivery to the carrier is delivery to the buyer.

CIVIL LAW REVIEWER Page 142 of


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EXCEPTIONS: a contrary intention appears or GENERAL RULE: The ownership of the thing
implied reservation of ownership under pars. sold shall be transferred to the buyer upon the
1,2, 3 of Art. 1503 actual or constructive delivery thereof.

I. FAST – FREE ALONG SIDE - When goods EXCEPTION: When the contrary is stipulated
delivered alongside the ship, there is already such in the cases of:
delivery to the buyer (twin effects deemed
fulfilled) 1. Contract to sell

2. Sale on acceptance/approval –
II. FOB - FREE ON BOARD - Shipment – when ownership only passes to the buyer
goods are delivered at ship at point of when:
shipment; delivery to carrier by placing
goods on vessel is delivery to buyer  The buyer signifies approval to
the seller, or

Destination – when goods reach the port  The buyer does not signify his
even if not disembarked yet from the vessel, rejection but retains the goods
there is delivery to the buyer

III. CIF – COST, INSURANCE, FREIGHT 3. Sale on return – ownership passes to


the buyer but he may re-vest ownership
 When buyer pays for services of carrier – to the seller by returning the goods
delivery to carrier is delivery to buyer; within time fixed. If no time is fixed,
carrier is agent of the buyer. within reasonable time.

 When buyer pays seller the price – from NOTE: Who Bears Expenses of Delivery? Seller
moment the vessel is at port of
F. SALE BY
destination, there is already delivery to
DESCRIPTION/SAMPLE
buyer.
1. Sample – goods must correspond with
See Arts. 1522, 1539, 1540, 1541, 1542, sample shown
1543.
2. Description – goods must correspond
D. TIME AND PLACE OF with description or sample
DELIVERY
3. Effect if there is no compliance:
a. Follow stipulation in contact, or RESCISSION may be availed of by the
buyer
b. Follow usage in trade, or

c. Seller’s place of business or his


residence G. OBLIGATIONS OF BUYER

d. Specific goods – place where the 1. Pay the price


thing is
o Buyer is obligated to pay price
e. At reasonable hour according to terms agreed upon
regarding time, place and amount
E. EFFECTS OF DELIVERY
o If payment of interest is stipulated –
must pay; if amount of interest not
mentioned – apply legal rate

CIVIL LAW REVIEWER Page 143 of


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o When buyer defaults – constitutes GENERAL RULE: FIRST IN TIME, PRIORITY IN
breach: subject to specific RIGHT
When does it apply: when not all requisites
performance/rescission and
embodied in Art. 1544 concur.
damages; interest to be paid also
from default I. REQUISITES FOR DOUBLE SALES TO
EXIST: (VOCS)

1. Two or more sales transactions must


2. Accept delivery of thing sold
constitute valid sales;
a. Where to accept: at time and place
stipulated in the contract; if none 2. Two or more sales transactions must
specified – at the time and place of pertain to the same object or subject
delivery goods; there is acceptance matter;
when:
3. Two or more buyers at odds over the
i. He intimates to seller that he has rightful ownership of the subject
accepted matter must each represent
conflicting interests; and
ii. When delivered and does any act
inconsistent with ownership of seller 4. Two or more buyers must each have
bought from the very same seller.
iii. Retains without intimating to seller
that he has rejected  If not all the elements are present for
Art. 1544 to apply, the priniciple of prior
tempore, potior jure or simply “he who is
3. Sale of Goods on installment first in time is preferred in right” should
1. Goods must be delivered in full, apply. Undisputably, he is a purchaser in
except when stipulated good faith because at the time he
bought the real property, there was still
2. When not examined by buyer – not no sale to as a second vendee.
accepted until examined or at least Consolidated Rural Bank v. CA, [Jan.
had reasonable time to examine 17, 2005]

II. RULES ACCORDING TO 1544:


 Acceptance of goods in general, absent
contrary express stipulation, does not 1. MOVABLE
discharge seller from liability in case of First to posses in good faith
breach of warranties (unless no notice or
failure to give it within reasonable time) 2. IMMOVABLE

4. When buyer has a right to refuse goods, 1. First to register in good faith
no need to return; shall be considered
as depositary; unless there is stipulation 2. No inscription, first to possess in good
to the contrary faith

========================================= 3. No inscription and no possession in


TOPICS UNDER THE SYLLABUS good faith – Person who presents
G. TRANSFER OF OWNERSHIP oldest title in good faith
4. Double Sale
========================================= 4. Good Faith - one who buys property
without notice that another person
4. DOUBLE SALE has a right or interest in such

CIVIL LAW REVIEWER Page 144 of


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property; one who has paid price b. proceed with the contract, waiving the
before notice that another has claim performance of the condition
or interest

If the condition is in the nature of a promise that


III. LIS PENDENS – notice that subject matter is it should happen, the non-performance of such
in litigation condition may be treated by the other party as
breach of warranty.
IV. ADVERSE CLAIM – notice that somebody is
claiming better right 2. Effect if buyer has already sold the
goods
V. POSSESSION - Both actual or constructive
GENERAL RULE: The unpaid seller’s right to
VI. REGISTRATION: any entry made in the lien or stoppage in transitu remains even if
books of the registry, including both buyer has sold the goods
registration in its ordinary and strict
sense, and cancellation, annotation, and EXCEPTION:
even marginal notes. It is the entry made  When the seller has given consent
in the registry which records solemnly and thereto, or
permanently the right of ownership and
other real rights.  When the buyer is a purchaser in good
faith for value of a negotiable document
 Registered under Torrens system 1544 of title.
applies

 Not registered under the Torrens


system 1544 still applies =========================================
TOPICS UNDER THE SYLLABUS
G. TRANSFER OF OWNERSHIP
4. Property Registration Decree
If 2nd sale is a judicial sale (by way of levy on =========================================
execution), buyer merely steps into the
shoes of the judgment debtor. Outside of 4. PROPERTY REGISTRATION DECREE
such situation – must apply to conflicting
sales over the same unregistered parcel of END OF DISCUSSION ON TOPIC
land. If sale 1 occurs when land is not yet G. TRANSFER OF OWNERSHIP
registered and sale 2 is done when land is ================================
already registered – apply FIRST IN TIME, H. RISK OF LOSS
PRIORITY IN RIGHT. ================================
TOPICS UNDER THE SYLLABUS
Good faith must concur with registration. To
be entitled to priority, the second purchaser
must not only establish prior recording of his H. Risk of Loss
deed, but must have acted in good faith. 1. General Rule (Arts. 1263, 1189)
Gabriel v. Mabanta, [GR 142403, March 2. When loss occurred before
26, 2003] perfection
CONDITION
3. When loss occurred at time of
1. Effect of Non-Fulfillment of Condition perfection (Arts. 1493 and 1494)
4. When loss occurred after
The other party may
perfection but before delivery
a. refuse to proceed with the contract

CIVIL LAW REVIEWER Page 145 of


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5. When ownership is transferred  Paras: BUYER
(Art. 1504)
 Tolentino: SELLER
=========================================
TOPICS UNDER THE SYLLABUS  Deterioration and fruits - Buyer
H. RISK OF LOSS bears loss;
=========================================

4. AFTER DELIVERY
1. GENERAL RULE
 Legal consequences from point of perfection  Res perit domino
are the same in both legal systems: upon
 Delivery extinguishes ownership vis-
perfection of an unconditional contract of
a-vis the seller and creates a new
sale involving specific or determinate subject
one in favor of the buyer
matter, the risk of loss deterioration and the
benefits of fruits and improvements, were fro
END OF DISCUSSION ON TOPIC
the account of the buyer.
H. RISK OF LOSS

 If Subject matter is GENERIC, Simply replace ================================


item. I. DOCUMENTS OF TITLE
================================
TOPICS UNDER THE SYLLABUS
WHO BEARS RISK OF LOSS/
DETERIORATION/ FRUITS: I. Documents of Title
1. Definition (Art. 1636)
1. BEFORE PERFECTION
2. Purpose of documents of title
 Res perit domino 3. Negotiable documents of title
4. Non-negotiable documents of
 Owner is seller so seller bears risk of title
loss 5. Warranties of seller of
documents of title (Art. 1516)
2. AT PERFECTION 6. Rules on levy/garnishment of
goods (Arts. 1514, 1519, 1520)
 Res perit domino
=========================================
 Contract is merely inefficacious TOPICS UNDER THE SYLLABUS
because loss of the subject matter I. DOCUMENTS OF TITLE
does not affect the validity of the 1. Definition
sale
=========================================
 Seller cannot anymore comply with
obligation so buyer cannot anymore 1. DEFINITION
be compelled.
DOCUMENTS OF TITLE
1. Not creation of law but by merchants to allow
3. AFTER PERFECTION BUT BEFORE them to deal with merchandise without having
DELIVERY to physically carry them around
2. Pertains to specific type of movables only:
 Loss – confused state GOODS

CIVIL LAW REVIEWER Page 146 of


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a. Documents of title serve two (2) =========================================
functions:
4. NON-NEGOTIABLE DOCUMENTS OF
i. Evidence of existence and possession TITLE
of goods described therein
Effects of Unauthorized Negotiation
ii. Medium by which seller is able to The validity of the negotiation of a negotiable
transfer possession of goods document is not impaired by the fact that
negotiation was done in breach of duty or that
3. A document of title which states that the the owner of the document was deprived of the
goods referred to therein will be delivered to the same by loss, theft, accident, fraud, mistake if
bearer, or to the order of any person named in the person to whom the document is delivered
such document is in good faith and without notice of the said
4. Negotiable by delivery or indorsement irregularities.

========================================= Important Considerations


TOPICS UNDER THE SYLLABUS 1. Negotiation gives better right than
I. DOCUMENTS OF TITLE assignment
2. Purpose of documents of title
2. Assignee takes document with defects of
the assignor
=========================================

2. PURPOSE OF DOCUMENTS 3. Obligation of bailee – bailee is


immediately bound to the document
=========================================
TOPICS UNDER THE SYLLABUS =========================================
I. DOCUMENTS OF TITLE TOPICS UNDER THE SYLLABUS
3. Negotiable documents of title I. DOCUMENTS OF TITLE
5. Warranties of seller of documents
========================================= of title

3. NEGOTIABLE DOCUMENTS OF TITLE =========================================

1. Deliver to bearer Warranties on Negotiation


(negotiation by mere delivery) 1. The document is genuine

2. Deliver to specific 2. He has legal right to negotiate or


person or his order (negotiation by transfer it
endorsement + delivery)
3. He has knowledge of no fact which would
impair the validity or worth of the
Even if face of instrument says NON- document
NEGOTIABLE, it is still NEGOTIABLE;
limiting words does not destroy 4. He has right to transfer title to goods and
negotiability. goods are merchantable/fit

If order instrument and no endorsement


was made – equivalent to assignment =========================================
TOPICS UNDER THE SYLLABUS
========================================= I. DOCUMENTS OF TITLE
TOPICS UNDER THE SYLLABUS 6. Rules on Levy or Garnishment of
I. DOCUMENTS OF TITLE Goods
4. Non-negotiable documents of title
=========================================

CIVIL LAW REVIEWER Page 147 of


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6. Rules of Levy/Garnishment of Goods d. Law on estoppel further bolsters it:
Covered by Documents of Title title passes by operation of law to
grantee when person who is not
 NON NEGOTIABLE: owner of the goods sold delivers it
and later on acquires title thereto
o Notification is operative act to transfer
title/possession of goods in favor e. Since valid, action to annul is
assignee improper; there is already a
perfected contract
o Before notification – can still be
garnished
2. CONSUMMATION STAGE

 NEGOTIABLE: a. Contract of sale is valid because it


has passed perfected stage, despite
o Cannot be levied or garnished when seller not being the owner or seller
documents are already with purchaser in having no authority to sell
good faith, unless:
b. What is void is the transfer of title/
o Document is first surrendered ownership did not pass

o Document is pounded by court c. Effect: buyer acquired no better right


than transferor
o Negotiation is enjoined
d. Legal effect: CAVEAT EMPTOR –
NEGOTIATION ASSIGNMENT BUYER BEWARE

Transferor/holder Acquires title to e. Sale of co-owner of whole property or


acquires title to goods against definite portion
goods transferor
GENERAL RULE:
Bailee has direct Acquires right to  Co-owner sells whole property prior to
obligation to holder notify bailee so partition – sale of property itself is void but
as if directly dealt that he acquires valid as to his spiritual share
with him obligation of bailee
to hold goods for  Co-owner sells definite portion to partition –
him sale is void as to other co-owner but valid as
to his spiritual share if the buyer would have
still bought such spiritual share had he
known that the definite portion sold would
A. SALE BY NON-OWNER OR BY ONE
not be acquired by him.
HAVINGVOIDABLE TITLE

1. PERFECTION STAGE
EXCEPTIONS TO THE RULE ON THE EFFECT
OF SALE OF A DEFINITE PORTION BY A CO-
a. Sale by owner – VALID OWNER
1. Subject matter is indivisible in nature or by
b. Sale by non-owner – VALID; intent;
2. Sale of a particular portion of a property is
c. Reason why both sales are valid: with consent of other co-owners;
ownership is necessary only at time 3. Co-owner sells 1 of 2 commonly-owned lands
when transfer title to goods; at and does not turn over ½ of the proceeds, other
perfection stage, no obligation on co-owner, by law and equity, has exclusive claim
part of seller to transfer ownership over remaining land.

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B. SALE BY SELLER WITH VOIDABLE TITLE  SPECIAL REMEDIES
IN GOOD FAITH and WITHOUT NOTICE OF
THE DEFECT
REQUISITES:
1. PERFECTION STAGE 1. Subject matter – goods
2. Seller is unpaid – not completely paid or
a. Valid sale – buyer acquires title of goods received negotiable instrument under a
condition and condition has been breached by
2. CONSUMMATION STAGE reason of dishonor
3. Physical possession is with seller
o Valid sale – if title has not yet been
=========================================
avoided, buyer buys goods under following
TOPICS UNDER THE SYLLABUS
condition:
J. REMEDIES OF UNPAID SELLER
 in good faith
2. Remedies of unpaid seller

=========================================
 for value
2. REMEDIES OF UNPAID SELLER
 without notice of seller’s defect
of title The following are the special remedies of unpaid
seller:
END OF DISCUSSION ON TOPIC 1. Possessory lien
I. DOCUMENTS OF TITLE 2. Stoppage in transitu
3. Special right of re-sale
4. Special right to rescind
================================
NOTE: Hierarchical Application - only when
J. REMEDIES OF UNPAID unpaid seller has exercised possessory lien or
SELLER stoppage in transitu can the seller proceed with
================================ his other special rights of resale or to rescind.
TOPICS UNDER THE SYLLABUS Possessory Lien

J. Remedies of an Unpaid Seller 1. Seller not bound to deliver if buyer has


1. Definition of unpaid seller (Art. not paid him the price
1525) 2. Right to retain; cannot be availed when
2. Remedies of unpaid seller seller does not have custody

========================================= 3. Exercisable only in following


TOPICS UNDER THE SYLLABUS circumstances:
J. REMEDIES OF UNPAID SELLER
1. Definition of unpaid seller a. goods sold without stipulation as to
credit
=========================================
b. goods sold on credit but term of
1. DEFINITION OF UNPAID SELLER credit has expired

GENERAL RULE: Any man may not take law in c. buyer becomes insolvent
his own hands, must seek remedy through
courts. d. When part of goods delivered, may
still exercise right on goods
EXCEPTION: undelivered
 DOCTRINE OF SELF HELP

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3. Notice by seller to buyer is not
Instances when possessory lien lost: required; notice to carrier is essential

1. seller delivers goods to carrier for


transmission to buyer without
reserving ownership in goods or right III. Special Right to Resell the Goods
to possess them
1. Goods are perishable
2. buyer or his agent lawfully obtains
possession of goods 2. stipulated the right of resale in case buyer
defaults in payment
3. Waiver
3. Buyer in default for unreasonable time
4. loses lien when he parts with goods
(still has stoppage in transitu) 4. Notice by seller to buyer not essential

5. notice by seller to buyer not essential


Why special? There are things which seller
cannot do in ordinary sale:
Stoppage In Transitu
A. ownership is with buyer but seller
 Goods are in transit can sell goods

 Requisites when goods are in transit B. title accorded to buyer is destroyed


even without court intervention
1. From the time goods are
delivered to carrier for purpose of
transmission to buyer Special Right to Rescind

2. Goods rejected by buyer and 1. Expressly stipulated


carrier continues to possess them
2. Buyer is in default for unreasonable time

When goods no longer in transit 3. Notice needed to be given by seller to buyer

1. Reached point of destination

2. Before reaching destination, buyer obtains Why special – ownership of goods already with
delivery of the goods buyer but seller may still rescind; ownership is
destroyed even without court intervention but in
3. Goods are supposed to have been delivered to ordinary sale, need to go to court to destroy
buyer but carrier refused transfer of ownership

4. Shown by seller that buyer is insolvent (failure Remedies of Buyer


to pay when debts become due)
When Seller fails to deliver, buyer may seek
SPECIFIC PERFORMANCE WITHOUT GIVING
How is right exercised SELLER OPTION TO RETAIN GOODS ON PAYMENT
OF DAMAGES
1. Obtain actual possession of goods
END OF DISCUSSION ON TOPIC
2. Give notice of claim to carrier / bailee
J. REMEDIES OF UNPAID SELLER
in possession thereof
================================

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K. PERFORMANCE OF to sell the buyer has the
following options:
CONTRACT
================================ i. Accept per contract and reject
TOPICS UNDER THE SYLLABUS the rest

ii. Accept the whole – pay price


K. Performance of Contract
stipulated
1. Delivery of thing sold
(1) Sale of movables (Arts. 1522, iii. Eject whole if subject matter is
1537, 1480) indivisible
(2) Sale of immovables (Arts.
d. When the seller delivers to
1539, 1543) the buyer the goods he
(3) Inspections and Acceptance contracted to sell, MIXED with
2. Payment of price goods of a different
description not included in
========================================= the contract, buyer has 2
TOPICS UNDER THE SYLLABUS options:
K. PERFORMANCE OF CONTRACT
1. Delivery of thing sold i. Accept good w/c are in
accordance with contract and
========================================= reject the rest

1. DELIVERY OF THING SOLD ii. Reject goods entirely – if


indivisible
A. MOVABLES
Obligations of a Vendor (Art. 1537)
a. Delivery of thing plus accessories
and accessions in the condition in 1. To deliver the subject matter
which they were upon the perfection
of the contract including the fruits 2. To deliver the fruits and accessories

b. When the seller delivers to the buyer  Those which pertains to the vendee
a quantity of goods LESS than he from the day on the perfection of
contracted to sell, buyer has the contract
option to reject or accept it.
3. To preserve the subject matter
a.When accepts with knowledge
that seller is not going to perform  In the condition in which they were
contract in full, he must pay at upon the perfection of the contract.
price stipulated

b. When accepts and Article 1480. Any injury to or benefit from the
consumes before knowledge that thing sold, after the contract has been
buyer will not perform contract in perfected, from the moment of the perfection of
full, liable only for fair value of the contract to the time of delivery, shall be
goods delivered governed by articles 1163 to 1165, and 1262.

c. When seller delivers to the This rule shall apply to the sale of fungible
buyer a quantity of goods things, made independently and for a single
LARGER than he contracted price, or without consideration of their weight,
number, or measure.

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Should fungible things be sold for a price fixed C. INSPECTIONS AND ACCEPTANCE
according to weight, number, or measure, the
risk shall not be imputed to the vendee until Accept delivery of thing sold
they have been weighed, counted, or measured
and delivered, unless the latter has incurred in  Where to accept: at time and
delay. place stipulated in the contract; if
none specified – at the time and
B. IMMOVABLES place of delivery goods;

o Sold per unit or number  There is acceptance when: He


intimates to seller that he has
i. If the sale should be made with accepted
statement of its area, rate at
certain price, deliver all that may  When delivered and does any
have been stated in the contract act inconsistent with ownership
if impossible, remedies of buyer: of seller

ii. If Less in area:  Retains without intimating to


seller that he has rejected
 Rescission

 Proportional reduction of price:


LACK IN AREA SHLD NOT BE LESS =========================================
THAN 1/10 OF AREA AGREED TOPICS UNDER THE SYLLABUS
UPON K. PERFORMANCE OF CONTRACT
2. Payment of price
iii. If Greater in area:
=========================================
 Accept per stipulation and
reject the rest 2. PAYMENT OF PRICE

 Accept whole area – pay  Buyer is obligated to pay price according to


at contract rate terms agreed upon regarding time, place and
amount
 Not applicable to judicial
sales  If payment of interest is stipulated – must pay; if
amount of interest not mentioned – apply legal
rate
iv. Sold for lump sum

 When price per unit not


indicated When buyer defaults – constitutes breach:
subject to specific performance/rescission and
 If area delivered is either damages; interest to be paid also from default
greater or lesser – price will
not be adjusted accordingly END OF DISCUSSION ON TOPIC
K. PERFORMANCE OF CONTRACT
 The actions arising from above in delivery of
================================
immovables shall prescribe in six months,
counted from the day of delivery.
L. WARRANTIES
 ================================

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TOPICS UNDER THE SYLLABUS 3. Buyer purchases the subject matter
relying thereon
L. Warranties
4. When breached, seller is liable for
1. Express warranties damages
2. Implied warranties (Art. 1547)
3. Effects of warranties
4. Effects of waivers
5. Buyer’s options in case of breach
of warranty (Art. 1599) =========================================
TOPICS UNDER THE SYLLABUS
========================================= L. WARRANTIES
TOPICS UNDER THE SYLLABUS 2. Implied warranties
L. WARRANTIES
1. Express warranties =========================================

========================================= 2. Implied Warranties


Deemed included in all contracts of sale whether
1. EXPRESS WARRANTIES parties are actually aware or not, whether they
were intended or not; by operation of law
I. Condition
1. Warranty that seller has a right to sell
1. When a contract contains a condition, the  Refers to consummation stage since
non happening of which would not constitute in consummation stage, it is where
a breach but extinguishes the obligation ownership is transferred by tradition

2. However, if party to the sales contract has  Not applicable to sheriff, auctioneer,
promised that the condition should happen mortgagee, pledge
or be performed, the non-performance of
which may be treated by parties as breach
2. Warranty against eviction
a. Implied, unless contrary provision
II. Warranties
appears in contract
A statement or representation made by the
b. When ownership is transferred, buyer
seller contemporaneously and as a part of the
shall enjoy the legal and peaceful
contract of sale, having reference to the
possession of the thing
character, quality, or title of the goods, and by
which he promises or undertakes to insure that c. Requisites of breach of warranty against
certain facts are or shall be as he then eviction:
represents
 Buyer is evicted in whole or in part
Express Warranties
from the subject matter of sale
REQUISITES:
 There is a final judgment
1. It must be an affirmation of fact or any
promise by seller relating to the subject  Basis of eviction is a right prior to
matter of sale sale or an act imputable to vendor

2. Natural tendency of affirmation or  Seller has been summoned in the


promise is to induce buyer to purchase suit for eviction at the instance of
subject matter buyer; or made 3rd party defendant

CIVIL LAW REVIEWER Page 153 of


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through 3rd party complaint brought REQUISITES:
by buyer a. Immovable sold is encumbered with non–
apparent burden or servitude not
mentioned in the agreement
Vendor’s liability shall consists of (Total
Eviction) (VICED) b. Nature of non–apparent servitude or
1. Value of the thing at the time of eviction; burden is such that it must be presumed
that the buyer would not have acquired it
2. Income or fruits if he has been ordered to had he been aware thereof
deliver the to the party who won the suit
c. When breach of warranty exist: buyer may
3. Cost of the suit ask for rescission of indemnity

4. Expenses of the contract; and d. Warranty not applicable when non–


apparent burden or servitude is recorded
5. Damages and interests if the sale was in bad in the Registry of Property – unless there is
faith express warranty that the thing is free
from all burdens and encumbrances

Partial Eviction
1. To enforce vendor’s liability for eviction
(VICED);

2. To demand rescission of contract.


4. Warranty against hidden defects
a. No appeal needed nor a need for buyer
 SELLER does not warrant patent
to resist eviction for right to accrue; it is
enough that the aforementioned defect; caveat emptor
requisites are complied with
 Except when hidden
b. Warranty cannot be enforced until
1. subject matter may be movable or
aforementioned requisites concur
immovable
c. Applies to judicial sale; judgment debtor
2. nature of hidden defect is such that it
responsible for eviction unless otherwise
should render the subject matter
decreed in judgment
unfit for the use of which it was
d. Vendor not liable for eviction if adverse intended or should diminish its
possession had been commenced before fitness
sale but prescriptive period is completed
3. had the buyer been aware, he would
after transfer
not have acquired it or would have
e. Rights of buyer when deprived of only given a lower price
part of the subject matter but would not
a. When defect is visible or even if not
have bought such part if not in relation
visible but buyer is an expert by reason
for the whole:
of his trade or profession, seller is not
1. Rescission liable

2. Mutual restitution b. Obligation of seller for breach depends


on whether he has knowledge of such
3. Warranty against encumbrances (non- defect or not
apparent)

CIVIL LAW REVIEWER Page 154 of


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c. Seller is aware – seller should return contract and they are found to be
price and refund expenses of contract unfit therefor
with damages
 Prescription of action: 40 days from
d. Seller is not aware - seller should return date of delivery to buyer
price and interest and refund expenses
(no damages)  If sale is rescinded, animals to be
returned in same condition when
e. Buyer may elect between withdrawing they were acquired; buyer shall
from contract or demanding answer for injury / loss due to his
proportionate reduction of price with fault
damages in either case
 Buyer may elect between
f. Applicable to judicial sale except that withdrawing from sale and
judgment debtor not liable for damages demanding proportionate reduction
of price with damages in either case
g. Action to prescribe 6 months from
delivery of subject matter

Specific Implied Warranties in the Sale of


Goods
5. Defects on animals
a. Even in the case of professional A. Warranty as to fitness and quality;
inspection but hidden defect is of such requisites:
nature that expert knowledge is not
sufficient to discover it - defect shall be 1. Buyer makes known to seller the
considered as REDHIBITORY particular purpose for which goods are
acquired and it appears that the buyer
b. If vet fails to discover through ignorance relied on the seller’s skill or judgment
or bad faith, he is liable for damages
2. Goods are bought by description from
c. Sale of animals on teams (2 or more) seller who deals in goods of that
description
 When only one is defective, only one
is prohibited and not the others 3. in case of sale of specified article under its
patent or trade name, no warranty unless
 Exception: when it appears buyer
there is a stipulation to the contrary
would not have purchased the team
without the defective one 4. measure of damage: difference between
value of goods at time of delivery and
 Apply to sale of other things
value they would have had if they had
answered to the warranty
d. Animals at fair or public auction

 No warranty against hidden defects


SALE OF GOODS BY SAMPLE
e. Sale of animals with contagious disease
is void If seller is a dealer in goods of that kind, there is
an implied warranty that the goods shall be free
f. Sale of unfit animals from defect rendering them unmerchantable
which would not be apparent on reasonable
 Void if use / service for which they are examination of the sample
acquired has been stated in the
=========================================

CIVIL LAW REVIEWER Page 155 of


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TOPICS UNDER THE SYLLABUS Buyer’s Option in Case of Breach of
L. WARRANTIES Warranty
3. Effects of warranties 1. Accept goods and set up breach of
warranty by way of recoupment in
========================================= diminution or extinction of the price.

3. EFFECTS OF WARRANTIES 2. Accept goods and maintain action against


seller for damages
=========================================
TOPICS UNDER THE SYLLABUS 3. Refuse to accept goods and maintain
L. WARRANTIES action against seller for damages
4. Effects of waivers
4. Rescind contract of sale and refuse to
========================================= receive goods/return them when already
received.
4. EFFECTS OF WAIVER
Waiver in Warranty against eviction - When rescission by buyer not allowed:
Parties may increase or diminish implied 1. If the buyer accepted the goods knowing
warranty against eviction; but effect depends on the breach of warranty WITHOUT protest
good faith or bad faith on the part of the seller.
2. If he fails to notify the seller within a
o Seller in bad faith and there is waiver reasonable time of his election to rescind
against eviction – null and void
3. If he fails to return or offer to return the
o Buyer without knowledge of a particular goods in substantially as good condition
risk, made general renunciation of as they were in at the time of the
warranty – not waiver but merely limits transfer of ownership to him
liability of seller in case of eviction (pay
value of subject matter at time of eviction) END OF DISCUSSION ON TOPIC
L. WARRANTIES
o Buyer with knowledge of risk of eviction
assumed its consequences and made a ================================
waiver – vendor not liable (applicable only
M. BREACH OF CONTRACT
to waiver of warranty against eviction)
================================
1. Waiver to a specific case of eviction -
wipes out warranty as to that specific TOPICS UNDER THE SYLLABUS
risk but not as to eviction caused by
other reasons. M. Breach of Contract
1. Remedies of the seller (Arts.
Waiver against Hidden Defects 1636, 1594)
i. If there has been a stipulation exempting (1) Sale of movables
seller from hidden defects 2. Recto Law: sale of movables on
ii. If seller not aware of hidden defects – installment (Arts. 1484-1486)
loss of the thing due to such defect will 3. Sale of immovables
not make seller liable (1) PD 957, sec. 23, 24
(2)Maceda Law: sale of
iii. If seller aware – waiver is in bad faith,
immovables on Installment
thus seller still liable
4. Remedies of the Buyer
(1) Sale of movable

CIVIL LAW REVIEWER Page 156 of


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(2) Sale of immovables Coverage: sale and financing transaction and
contracts of lease with option to purchase
=========================================
TOPICS UNDER THE SYLLABUS GENERAL RULE: If already chose specific
M. BREACH OF CONTRACT performance, can no longer choose other
remedies
1. Remedies of the seller
EXCEPTION: After choosing, it has become
=========================================
impossible, rescission may be pursued
1. REMEDIES OF THE SELLER
 The fact that the seller did not foreclose
Remedies of Unpaid Seller (Art. 1484) the chattel mortgage constituted on the
movable purchased on credit, but opted
1. Exact fulfillment should the buyer fail to pay. specific performance, with a plea for a
writ of replevin, does not amount to a
2. Cancel the sale if buyer fails to pay 2 or foreclosure of the chattel mortgage to be
more installments. covered by Art. 1484. Tajanglangit v.
Southern Motors, [101 Phil. 606]
3. Foreclose on chattel mortgage if buyer fails
to pay 2 or more installments
Rescission
1. When chosen, there is correlative obligation
========================================= to restitute
TOPICS UNDER THE SYLLABUS 2. But stipulations that installments paid are
M. BREACH OF CONTRACT forfeited are valid if not unconscionable
2. Recto Law: Sale of Movables on 3. Deemed chosen when:
- Notice of rescission is sent
Installment
- Takes possession of subject matter of sale
=========================================
- Files action for rescission
2. RECTO LAW: SALE OF MOVABLES ON
INSTALLMENT
- Barring effect on recovery of balance
Incidents:
1. If buyer chooses foreclosure, no further
Foreclosure
action against buyer to recover any i. Barring effect on recovery of balance
unpaid balance of the price ii. Extent of barring effect: purchase price
iii. Exception: mortgagor refuses to deliver
2. When is the law applicable? Sale on property to effect foreclosure, recover also
movables by installment expenses incurred in attorneys fees, etc.
(Perverse Buyer-Mortgagor)
o Sale on installment:
payment by several partial payments
in small amount =========================================
TOPICS UNDER THE SYLLABUS
M. BREACH OF CONTRACT
3. Sale of Immovables
Rationale of the law: Buyer is lulled into
thinking that he could afford because of small =========================================
amounts per installment and at the same time
remedy abuse of commercial houses 3. SALE OF IMMOVABLES

Nature of remedies: alternative and not Remedies of Seller


cumulative

CIVIL LAW REVIEWER Page 157 of


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o
Anticipatory breach B
uyer paid at least 2 years installment
1. Seller has reasonable grounds to fear loss of
immovable sold and its price, sue for 1. Pay without interest the balance
RESCISSION within grace period of 1 month for
every year of installment payment
2. Non–payment of price, sue for RESCISSION
2. Grace to be exercised once every 5
years
IMMOVABLES (BY INSTALLMENT)
3. When no payment - cancelled; buyer
Art 1592 – Applies only to contract of sale entitled to 50% of what he has
paid + if after 5 years of
MACEDA LAW
installments, 5% for every year but
not to exceed 90% of total payments
1. applies to COS and CTS and Financing
made
2. Coverage: REAL ESTATE – defined space
4. Cancellation to be effected 30 days
vs. CONDO – not defined space (w/
from notice and upon payment of
common areas)
cash surrender value
1. Excluded:

a. Industrial o Buyer paid less than 2 years


installment
b. Commercial
1. 1st Grace period is 60 days from date
c. Sale to tenants under agrarian installment became due
laws
2. 2nd grace period of 30 days from
notice of cancellation/demand for
========================= rescission
================
 buyer can still pay within the 30
TOPICS UNDER THE SYLLABUS
M. BREACH OF CONTRACT day period
3. Remedies of the Buyer  with interest
=========================================
 No payment after 30 day period,
4. REMEDIES OF THE BUYER can cancel.

 In case of subdivision or condo projects,


suspend payment.
Purpose of law - Protect buyers in
installments against oppressive conditions
 If real estate developer fails to comply
with obligation according to approved Notice needed - waiver thereof if
plan: oppressive
- RESCIND Applies to contracts even before law
was enacted
- SUSPEND PAYMENT UNTIL SELLER
COMPLIES
 Stipulation to contrary is void

Rights Granted to Buyers:

CIVIL LAW REVIEWER Page 158 of


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Other rights: ================================
o Sell rights to another
N. EXTINGUISHMENT OF SALE
================================
o Reinstate contract by updating TOPICS UNDER THE SYLLABUS
during grace period and before
actual cancellation N. Extinguishment of Sale
1. Causes (Arts. 1600, 1231)
o Deed of Sale to be done by notarial
2. Conventional redemption (Art.
act
1601)
o To pay in advance any installment or 3. Equitable mortgage (Arts. 1602-
the full balance of price anytime 1604)
without interest 4. Distinguish from option to buy
o Have full payment annotated in (Art. 1602)
certificate of title 5. Period of redemption (Art. 1606)
6. Exercise of the right to redeem
(Art. 1616)
REMEDY OF RESCISSION IN CONTRACTS
COVERING IMMOVABLES (Articles 1191 &
7. Legal redemption (Art. 1619)
1592) 8. Age redemption (Art. 1619)

GENERAL RULE: Judicial =========================================


TOPICS UNDER THE SYLLABUS
EXCEPTION: Extra judicial Rescission allowed N. EXTINGUISHMENT OF SALE
but SUBJECT to COURT Confirmation. 1. Causes
=========================================
a. allowed if stipulated; burden to sue
shifts to party who does not like 1. CAUSES
rescission
I. GROUNDS (same grounds whereby
b. court still has final say as to propriety obligations in general are extinguished)
1. Payment or performance
of rescission
2. Loss of the subject matter
c. Forfeiture of amounts valid being in
nature of penal clause 3. Condonation or remission

 Contract of Sale – Rescission is 4. Confusion or merger of rights of creditor


Applicable and debtor

 Contract to Sell – Rescission not 5. Compensation


Applicable
6. Novation
 Non–payment of purchase price
would automatically cancel even 7. Annulment
without further action for rescission
8. Rescission
Exception: If subject matter is residential lots,
9. Fulfillment of a resolutory condition
law on rescission applies when there is
substantial breach. Maceda law applies. 10. Prescription
END OF DISCUSSION ON TOPIC
M. BREACH OF CONTRACT

CIVIL LAW REVIEWER Page 159 of


383
========================= impossible contrary to law. Cachola v. CA,
================ [208 SCRA 496]
TOPICS UNDER THE SYLLABUS
1.A contract with right to repurchase is
N. EXTINGUISHMENT OF SALE
deemed to be an equitable mortgage if
2. Conventional Redemption
the following requisites concur (IPERTI):
=========================================
a. Price of sale with right to repurchase is
unusually inadequate
2. CONVENTIONAL REDEMPTION
 Only extinguishes obligations pertaining
b. Seller remains in possession as lessee or
to contract of sale, not extinguish
otherwise
contract itself; only applies to contract of
sale c. Upon or after expiration of right to
repurchase, another instrument
 The right which the vendor reserves to extending the period of redemption or
himself to reacquire the property sold granting new period is executed
provided he returns to the vendee:
d. Buyer retains for himself a part of the
a. The price of the sale, purchase price
b. Expenses of contract, e. Seller binds himself to pay taxes on
thing sold
c. Other legitimate payments,
f. Real intention of parties is to secure the
d. The necessary and useful expenses
payment of a debt or performance of
made on the thing sold
other obligation
e. And fulfills other stipulations which may
NOTE: In case of doubt – in determining
have been agreed upon
whether it is an equitable mortgage or a sale a
 The right is exercised only be seller in retro, the sale shall be construed as an equitable
whom right is recognized in the contract mortgage.
or by any person to whom right was
2.What to Look for in Determining Nature of
transferred; must be in the same
Contract
contract
a. Language of the contract

========================= b. Conduct of parties – to reveal real intent


================
TOPICS UNDER THE SYLLABUS 3.Remedy available to vendor: ask for
N. EXTINGUISHMENT OF SALE reformation of contract

3. Equitable Mortgage 4.Rationale behind provision on Equitable


========================================= Mortgage:

3. EQUITABLE MORTGAGE a. Circumvention of usury law

b. Circumvention of prohibition against


One which lacks the proper formalities, form of
pactum commissorium – creditor cannot
words, or other requisites prescribed by law for a
appropriate the things given by way of
mortgage, but shows the intention of the parties
pledge or mortgage; remedy here is
to make the property subject of the contract as
foreclosure. The real intention of parties
security for a debt and contains nothing
is that the pretended purchase price is

CIVIL LAW REVIEWER Page 160 of


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money loaned and to secure payment of f. Example: Where a buyer a retro honestly
the loan, sale with pacto de retro is believed that he entered merely into an
drawn up equitable mortgage, not a pacto de retro
transaction, and because of such belief he
========================= had not redeemed within the proper
================ period.
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
4. Distinguish from option to buy
NOTE: When period has expired and seller
=========================================
allowed the period of redemption to expire –
seller is at fault for not having exercised his
4. DISTINGUISH FROM OPTION TO BUY rights so should not be granted a new period

OPTION TO PURCHASE - Right to repurchase Tender of payment is SUFFICIENT to compel


the thing sold granted to the vendor in a redemption, but is not in itself a payment that
separate instrument from the deed of sale relieves the vendor from his liability to pay the
redemption price. Paez v. Magno, G.R. No. :-
========================= 792, April 27, 1949
================
TOPICS UNDER THE SYLLABUS =========================
N. EXTINGUISHMENT OF SALE ================
5. Period of Redemption TOPICS UNDER THE SYLLABUS
========================================= N. EXTINGUISHMENT OF SALE
6. Exercise of the Right to Redeem
=========================================
5. PERIOD OF REDEMPTION
EFFECT WHEN THERE IS NO REDEMPTION
a. No period agreed upon – 4 years from date
MADE
of contract
i. Jurisprudence before the NCC: buyer a
b. Period agreed upon – should not exceed 10
retro automatically acquires full
years; if it exceeded, valid only for the first
ownership
10 years.
ii. Under present art 1607: there must be
c. When period to redeem has expired and
judicial order before ownership of real
there has been a previous suit on the
property is consolidated in the buyer a
nature of the contract – seller still has 30
retro
days from final judgment on the basis that
contract was a sale with pacto de retro:
HOW IS REDEMPTION EFFECTED
d. Rationale: no redemption due to Seller a retro must first pay the following:
erroneous belief that it is equitable
mortgage which can be extinguished by o The price of the thing sold
paying the loan.
o Expenses of the contract and other
e. This refers to cases involving a transaction legitimate payments made by reason of
where one of the parties contests or denies the sale
that the true agreement is one of sale with
the right to repurchase; not to cases where o Necessary and useful expenses made on
the transaction is conclusively a pacto de the thing sold
retro sale.
o Valid tender of payment is sufficient

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o Mere sending of notice without valid
tender is insufficient PRE-EMPTION REDEMPTION
1. Arises before sale Arises after sale
o Failure to pay useful and unnecessary 2. No rescission There can be rescission
because no sale exists of the original sale
expenses entitles vendee to retain land
yet
unless actual reimbursement is made 3. The action is Action is directed
directed against against buyer
prospective seller
IN CASE OF MULTI-PARTIES
1. When an undivided thing is sold because
co-owners cannot agree that it be
allotted to one of them – vendee a retro
may compel the vendor to redeem the
whole thing =========================
2. When an undivided thing is sold by co- ================
owners / co-heirs, vendors a retro may TOPICS UNDER THE SYLLABUS
only exercise his right over his respective N. EXTINGUISHMENT OF SALE
share; vendee a retro may demand that 7. Legal Redemption
they must come to an agreement first =========================================
and may not be compelled to consent to
7. LEGAL REDEMPTION
a partial redemption
LEGAL REDEMPTION
3. When rights of co-owners over an
 Only applies to contracts of sale.
undivided thing is sold as regards to
their own share – vendee retro cannot  The right to be subrogated upon the same
compel one to redeem the whole terms and conditions stipulated in the
property contract, in the place of one who acquires
the thing by (1) purchase OR (2) by dation in
4. Should one of the co-heirs/co-owners
payment OR (3) by other transaction
succeed in redeeming the property –
whereby ownership is transmitted by
such vendor a retro shall be considered
onerous title.
as trustee with respect to the share of
the other co-owners/co-heirs.
 Types of Legal Redemption:

FRUITS
a. Among co-heirs
What controls is the stipulation between parties
as regards the fruits;
i. Any of the heirs sell his hereditary
If none: rights to stranger before partition
a. At time of execution of the sale a retro
there are visible or growing fruits – there ii. Any of the co-heirs may be subrogated
shall be no pro-rating at time of to the rights of the purchaser by
redemption if no indemnity was paid by redeeming said hereditary right:
the vendee a retro reimburse buyer of the price of the
sale
b. At time of execution sale a retro there be
no fruits but there are fruits at time of iii. Co-heirs has 1 month from receipt of
redemption – pro-rated between vendor notice in writing
a retro and vendee a retro giving the
vendee a retro a part corresponding to b. Among co-owners
the time he possessed the land.

CIVIL LAW REVIEWER Page 162 of


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i. any or all of co-owners sells their paid therefor plus judicial costs,
shares to 3rd person interest

ii. any co-owner may exercise right of ii. debtor may exercise right within 30
redemption by paying reasonable price days from the date assignee demands
of property to the buyer payment from him

iii. if 2 or more co-owners desire to


exercise right of redemption, they may Other Instances When Right of Legal
only do so in proportion to the share Redemption is Granted
they respectively have in thing owned
in common a. Redemption of homesteads

b. Public Land Act


c. Among adjoining owners
c. Land acquired under free patent
i. Rural land homestead subject to repurchase by
wife, legal heirs within 5 years from date
o Where piece of rural land has an area not of conveyance granted by law, need not
exceeding 1 hectare, adjoining owner be stipulated
has right to redeem unless grantee does
not own a rural land
1. Redemption in tax sales
o If two or more adjacent lot owners desire
to exercise right to redeem, owner of i. in case of tax delinquency/failure to
adjoining lot with smaller area shall be pay tax assessments, property is
preferred foreclosed

o If two or more adjacent lit owners desire ii. delinquent payer has 1 year from date
to exercise right to redeem and both of sale to redeem by paying to the
have same lot area, one who first revenue District Officer the amount of
requested shall be granted tax delinquencies, and interest or
purchase price.

ii. Urban land 2. Redemption by judgment debtor - 1 year


from date of registration of certificate of
o when piece of land is small and
sale to redeem by paying purchaser at
cannot be used for any practical
public auction with interest
purpose and bought merely for
speculation, owner of adjoining land 3. Redemption in extrajudicial foreclosure -
can redeem 1 year from date of sale and registration

o 2 or more owners of adjoining lot 4. Redemption in judicial foreclosure of


desire to exercise right to redeem, mortgage - no right to redeem is granted
owner whose intended use is best to debtor mortgagor except when
justified shall be preferred. mortgagee is bank of a banking
institution 90 days after finality of
judgment
d. Sale of credit in litigation
i. when a credit or other incorporeal right
5. When Period of Redemption Begins to
in litigation is sold, debtor shall have a
Run - Right of legal pre-emption of
right to extinguish it by reimbursing
redemption shall be exercised within 30
the assignee for the price the latter
days from notice by the seller

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6. How exercised - tender of payment is not consideration of a price certain in money or
necessary; offer to redeem is enough. its equivalent

i. There is no prescribed form for an 1. Transfers the right to collect the full
offer to redeem to be properly value of the credit, even if he paid a
effected. Hence, it can either be price less than such value
through a formal tender with
consignation of the redemption price 2. Transfers all the accessory rights (e.g.
within the prescribed period. What is guaranty, mortgage, pledge, preference)
paramount is the availment of the
3. Debtor can set up against the assignee
fixed and definite period within which
all the defenses he could have set up
to exercise the right of legal
against the assignor
redemption.

ii. Deeds of sale are not to be recorded


II. WHAT MAKES ASSIGNMENT
in Register of Deeds unless
DIFFERENT FROM SPECIES SALE?
accompanied by affidavit of seller
that he has given notice to all 1. Technical term but basically a sale
possible redemptioners
2. Sale of credits and other incorporeal
things
NOTE: Written notice under Art. 1623 is
mandatory for the right of redemption to III. EFFECTS OF ASSIGNMENT
commence (PSC vs. Sps. Valencia, [August
19, 2003]. 1. Lack of knowledge or consent of debtor
not essential for validity but has legal
GENERAL RULE: Actual knowledge
notwithstanding, written notice is still effects (“meeting of minds” in
required assignment contemplates that between
assignor of the credit and his assignee)
EXCEPTION: When actual knowledge is
acquired by co-heirs living in same land with 2. Assignment of rights made w/o
purchaser, or co-owner was middleman in sale knowledge of debtor – debtor may set up
to 3rd party. against assignee the compensation w/c
would pertain to him against assignor of
o Art. 1623 does not prescribe any
all credits prior to assignment and of
distinctive method for notifying the
later ones until he had knowledge of the
redemptioner. Etcuban v. CA, [148
assignment
SCRA 507]
3. Debtor has consented to assignment –
========================= cannot set up
================
TOPICS UNDER THE SYLLABUS 4. Compensation unless assignor was
N. EXTINGUISHMENT OF SALE notified by debtor that he reserved his
8. Age Redemption right to the compensation
=========================================
5. Debtor has knowledge but no consent -
may still set up compensation of debts
previous to assignment but not the
9. ASSIGNMENT (See Arts . 1624 – 1634) subsequent ones.

I. ASSIGNMENT: The owner of a credit


transfers to another his rights and actions in IV. TRANSFER OF OWNERSHIP

CIVIL LAW REVIEWER Page 164 of


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1. By tradition and not by perfection be answerable for his character
as an heir
2. By execution of public instrument
because intangibles cannot be physically d. One who sells whole of certain
transferred rights for a lump sum, shall be
answerable for legitimacy of the
3. Without necessity of delivering the whole in general but not for each
document evidencing the credit. of the various parts

4. This rule does not apply to negotiable


documents and documents of title which VII. BREACH OF WARRANTY: LIABILITIES
are governed by special laws. OF THE ASSIGNOR OF CREDIT FOR
VIOLATION OF HIS WARRANTIES

V. EFFECT OF PAYMENT OF DEBTOR 1. Assignor in good faith


AFTER ASSIGNMENT OF CREDIT
Liability is limited to price received,
1. Before Notice of the Assignment expenses of the contract and other
legitimate payments made by reason of
Payment to the original creditor is the assessment
valid and debtor shall be released 2. Assignor in bad faith
from his obligation
Liable ALSO for (expenses of contract
2. After Notice and other legitimate payments plus
useful and necessary expenses)
a. Payment to the original creditor is damages
not valid as against the assignee
VIII. ASSIGNMENT OF CREDIT OR
b. He may be made to pay again by the INCORPOREAL RIGHT IN LITIGATION -
assignee REQUISITES:

1. There must be a sale or assignment of credit


VI. WARRANTIES OF THE ASSIGNOR OF
2. There must be a pending litigation
CREDIT
3. The debtor must pay the assignee:
1. NO warranty against hidden defect - N/A
because intangibles has no physical
a. Price paid by him AND
existence
b. Judicial costs incurred by him AND
2. He warrants the existence and legality of
credit - there is warranty except when c. Interest on the price from the date of
expressly sold as a doubtful account payment

a. NO warranty as to the solvency of 4. The right must be exercised by the debtor


debtor unless it is expressly within 30 days from the date the assignee
stipulated OR unless the demands (judicially or extra-judicially) payment
insolvency was already existing from him
and of public knowledge at the
time of the assignment
NOTE:
b. Warranty shall last for 1 year only
 Presumption: buyer’s purpose is speculation
c. One who assigns inheritance and; law would rather benefit the debtor of
right w/o enumerating rights shall

CIVIL LAW REVIEWER Page 165 of


383
such credits rather than the one who merely O. THE SUBDIVISION AND
speculates for profit. CONDOMINIUM BUYER’S PROTECTIVE
DECREE
 When credit or incorporeal right in litigation
=========================================
is assigned or sold, debtor has a right to
extinguish it by reimbursing the assignee for P.D. 957: LAW ON SALE OF SUBDIVISION AND
the price the buyer paid plus interest CONDOMINIUM

IX. Right to redeem by debtor not


available in the following instances REMEDIES FOR FAILURE OF THE
(not considered speculative DEVELOPER TO DEVELOP THE SUBDIVISION
OR CONDOMINIUM ACCORDING TO THE
1. Assignment of credit / incorporeal right to APPROVED PLAN AND TO COMPLY WITH
co-heir or co-owner; the law does not favor SUCH WITHIN THE TIME LIMIT.
co-ownership
 The buyer may desist from further payment
2. Assignment to creditor in payment for his any installments. Also, there would be no
credit forfeiture of past payments in favor of the
developer after due notice has been given.
 Presumption is that the assignment is
above suspicion; assignment is in the  The buyer may demand reimbursement of
form of dacion en pago, thus perfectly the total amount paid including amortization
legal interests but excluding delinquency interests,
with interest thereon at the legal rate. (Sec. 23,
3. Assignment to possessor of tenement or
P.D. 957)
piece of land which is subject to the right in
litigation assigned Otherwise: RA 6552 (Maceda Law) will apply.

 Purpose is to presumably preserve the REQUISITES OF SEC 3 OF RA 6552:


tenement
 Failure to pay installments was due to
reasons, other than failure of the developer to
develop the subdivision or condominium
END OF DISCUSSION ON TOPIC
according to the approved plan and to comply
N. EXTINGUISHMENT OF SALE
with such within the time limit, and,

================================  Only covers residential lots including


O. THE SUBDIVISION AND condominium units, excluding, sales to tenants.
CONDOMINIUM BUYER’S  The buyer has paid at least two years of
PROTECTIVE DECREE installments
================================
TOPICS UNDER THE SYLLABUS
RIGHTS OF THE BUYER UNDER RA 6552
The Subdivision and Condominium WITH AT LEAST TWO