CIVIL LAW
EFFECT AND APPLICATION OF LAWS (CIVIL CODE)
It is well-settled that laws must be published to be valid. In fact,
publication is an indispensable condition for the effectivity of a law.
PUBLICATION OF LAWS
Administrative rules and regulations must also be published if their
purpose is to enforce or implement existing law pursuant also to a
valid delegation. Interpretative regulations and those merely internal
in nature, that is, regulating only the personnel of the administrative
agency and not the public, need not be published.
WAIVER OF RIGHTS
Waiver or an intentional and voluntary surrender of a right can give
rise to a valid title or ownership of a property in favor of another
under Article 6 of the Civil Code.
HUMAN RELATIONS
Malice or bad faith is at the core of Art. 19. Malice or bad faith
"implies a conscious and intentional design to do a wrongful act for a
dishonest purpose or moral obliquity. The failure to give prior notice of
the termination of credit line in violation of the agreement stipulation
and the subsequent dishonor of the check on the part of the bank is
already prima facie evidence of bad faith.
PERSONS AND FAMILY RELATIONS
For prejudicial question to exist, the civil action must be instituted
prior to the institution of the criminal action.
MARRIAGE (FAMILY CODE)
To show that a wedding ceremony was conducted and a marriage
contract was signed does not operate to cure the absence of a valid
marriage license. Article 4 of the Family Code is clear when it says,
"The absence of any of the essential or formal requisites shall render
the marriage void ab initio, except as stated in Article 35(2)."
The Rule on Declaration of Absolute Nullity of Void
Marriages and Annulment of Voidable Marriages, clearly allow the
reception of evidence on custody, support, and property relations after
the trial court renders a decision granting the petition, or upon entry
of judgment granting the petition.
DISSOLUTION OF MARRIAGE
A divorce obtained abroad by an alien married to a Philippine national
may be recognized in the Philippines, provided the decree of divorce is
valid according to the national law of the foreigner.
PROPERTY RELATIONS OF THE SPOUSES
Only proof of acquisition during the marriage is needed to raise the
presumption that the property is conjugal.
While the declared nullity of marriage of severs the marital
bond and dissolves the conjugal partnership, the character of the
properties acquired before such declaration continues to subsist as
conjugal properties until and after the liquidation and partition of the
partnership.
For the presumption to arise, it is not even necessary to
prove that the property was acquired with funds of the partnership.
Only proof of acquisition during the marriage is needed to raise the
presumption that the property is conjugal.
THE FAMILY
PATERNITY AND FILIATION Art. 176 gives illegitimate children the
right to decide if they want to use the surname of their father or not. It
is not the father or the mother who is granted by law the right to
dictate the surname of their illegitimate children.
PROPERTY
ACCESSION Art. 449. He who builds, plants or sows in bad faith on the
land of another, loses what is built, planted and sown without right to
indemnity.
Art. 450. The owner of the land on which anything has been built,
planted or sown in bad faith may demand the demolition of the work,
or that the planting or sowing be removed, in order to replace things
in their former condition at the expense of the person who built,
planted or sowed; or he may compel the builder or planter to pay the
price of the land, and the sower the proper rent.
DONATION The circumstance that parties to a void contract choose
to ignore its nullity can in no way enhance the invalid character of
such contract. It is axiomatic that void contracts cannot be the subject
of ratification, either express or implied.
Laches means the failure or neglect, for an unreasonable
and unexplained length of time, to do that which by the exercise of
due diligence could or should have been done earlier.
OBLIGATIONS AND CONTRACTS
A contract is a juridical convention manifested in legal form, by virtue
of which one or more persons bind themselves in favor of another or
others, or reciprocally, to the fulfillment of a prestation to give, to do,
or not to do. Estoppels against the public are little favored. They
should not be invoked except [in rare] and unusual circumstances, and
may not be invoked where they would operate to defeat the effective
operation of a policy adopted to protect the public.
NATURE AND EFFECTS OF OBLIGATIONS
There are three requisites necessary for a finding of default. First, the
obligation is demandable and liquidated; second, the debtor delays
performance; and third, the creditor judicially or extrajudicially
requires the debtor’s performance.
KINDS OF CIVIL OBLIGATIONS
Article 1191 of the Civil Code states that rescission is available to a
party in a reciprocal obligation where one party fails to comply
therewith.
EXTINGUISHMENT OF OBLIGATIONS
PAYMENT OR PERFORMANCE
Payment made by the debtor to a wrong party does not extinguish the
obligation as to the creditor, if there is no fault or negligence which
can be imputed to the latter.
An obligee is deemed to have waived strict compliance by
an obligor with an obligation when there is an actual knowledge and
with intentional acceptance of an incomplete performance, and under
circumstances that would indicate an intention to consider it as
complete.
When the mode of payment embodied in the contract is
complied with by obligee, the contract is deemed consummated and
cannot be cancelled for non-payment by reason of non-compliance of
a requirement not indicated in the contract.
CONSIGNATION Consignation is the act of depositing the thing due
with the court or judicial authorities whenever the creditor cannot
accept or refuses to accept payment and it generally requires a prior
tender of payment.
CONTRACTS Art. 1306. The contracting parties mayb establish such
stipulations, clauses, terms and conditions as they may deem
convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy.
Art. 1306 of the Civil Code guarantees the freedom of
parties to stipulate the terms of their contract provided that they are
not contrary to law, morals, good customs, public order, or public
policy. Thus, when the provisions of a contract are valid, the parties
are bound by such terms under the principle that a contract is the law
between the parties.
INADEQUACY OF CONSIDERATION
Inadequacy of the consideration, however, does not render a contract
void under Article 1355 of the Civil Code. Inadequacy of consideration
does not vitiate a contract unless it is proven that there was fraud,
mistake or undue influence.
KINDS OF CONTRACTS
The Statute of Frauds expressed in Article 1403, par. 2 of the Civil Code
applies only to executory contracts. The legal consequence of non-
compliance with the Statute does not come into play where the
contract in question is completed, executed or partially consummated.
The fact that only one of the subject lots was used as
collateral for a P 600 loan, which the Cagampang spouses took out,
does not weaken the conclusion on the simulated character of the
contracts, as logically drawn from the twin circumstances adverted to.
ESTOPPEL The elements of estoppel are: First, the actor who usually
must have knowledge, notice or suspicion of the true facts,
communicates something to another in a misleading way, either by
words, conduct or silence; second, the other in fact relies, and relies
reasonably or justifiably, upon that communication; third, the other
would be harmed materially if the actor is later permitted to assert
any claim inconsistent with his earlier conduct; and fourth, the actor
knows, expects or foresees that the other would act upon the
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information given or that a reasonable person in the actors position
would expect or foresee such action.
Equitable estoppel may be invoked against public
authorities when as in this case, the lot was already alienated to
innocent buyers for value and the government did not undertake any
act to contest the title for an unreasonable length of time.
SALES
DOUBLE SALE A double sale situation arises when the following
requisites concur: (a) The two (or more) sales transactions must
constitute valid sales; (b) The two (or more) sales transactions must
pertain to exactly the same subject matter; (c) The two (or more)
buyers at odds over the rightful ownership of the subject matter must
each represent conflicting interests; and (d) The two (or more) buyers
at odds over the rightful ownership of the subject matter must each
have bought from the very same seller.
EQUITABLE MORTGAGE
In determining the nature of a contract, the intention of the parties, as
shown by the surrounding circumstances, must be considered. If the
real intention of the parties is that the transaction shall secure the
payment of a loan, then it is presumed to be an equitable mortgage,
under Article 1602(6) of the Civil Code.
PARTNERSHIP, AGENCY AND TRUSTS
POWERS An agent must act within the scope of his authority. An act
beyond the scope of authority given does not bind the principal.
EXPRESS VS. IMPLIED AGENCY
While the general rule is one cannot be bound to a contract entered
into by another person, there are exceptions, such as when the
contracting person was authorized to enter a contract on behalf of
another, or when such contract was ratified.
COMPROMISE In the construction or interpretation of a compromise
agreement, the intention of the parties is to be ascertained from the
contract and effect should be given to that intention. A contract must
be interpreted from the language of the contract itself according to its
plain and ordinary meaning.
A compromise agreement is a contract whereby the parties
make reciprocal concessions, avoid litigation, or put an end to one
already commenced. Its validity depends on its fulfillment of the
requisites and principles of contracts dictated by law; its terms and
conditions being not contrary to law, morals, good customs, public
policy and public order.
CREDIT TRANSACTIONS
LOAN Article 1956 provides that “No interest shall be due unless it
has been expressly stipulated in writing.”
The collection of interest in loans or forbearance of money
is allowed only when these two conditions concur: (1) there was an
express stipulation for the payment of interest; (2) the agreement for
the payment of the interest was reduced in writing. Absent any of
these two conditions, the money debtor cannot be made liable for
interest.
Voluntariness does not make the excessive and exorbitant
5% per month or 60% per annum stipulation on interest valid.
REAL MORTGAGE Whenever a party has, by his own declaration, act,
or omission, intentionally and deliberately led another to believe a
particular thing to be true, and to act upon such belief, he cannot in
any litigation arising out of such declaration, act or omission, be
permitted to falsify it.
LAND TITLES AND DEEDS
TORRENS SYSTEM Section 32 of PD 1529 merely precludes the
reopening of the registration proceedings for titles covered by the
Torrens System, but does not foreclose other remedies for the
reconveyance of the property to its rightful owner.
CLASSIFICATION OF LANDS
The identification and classification of lands and qualification of
farmer-beneficiaries are factual determination performed by
government officials and personnel with expertise in the line of work
they are doing. Their findings, conclusions/recommendations and final
actions on the matter, after thorough investigation and evaluation,
have the presumption of regularity and correctness.
EXEMPLARY OR CORRECTIVE DAMAGES If the killing is attended with
aggravating circumstances, exemplary damages may be awarded.
DETERMINATION OF VALUATION OF LANDS
It is only after the DAR has made its final determination of the initial
valuation of the land that the landowner may resort to the judicial
determination of the just compensation for the land.
ORIGINAL REGISTRATION
A CENRO certification that a certain property is alienable, without the
corresponding proof that the DENR Secretary had approved such
certification, is insufficient to support a petition for registration of
land. Both certification and approval are required to be presented as
proofs that the land is alienable. Otherwise, the petition for
registration must be denied.
Land transfer under PD No. 27 is effected in two (2) stages:
(1) issuance of a CLT to a farmer-beneficiary; and (2) issuance of an
Emancipation Patent.
SUBSEQUENT REGISTRATION
The presumption of fraud established under Art. 1387 of the Civil Code
does not apply to registered lands if the judgment or attachment
made is not also registered.
An innocent purchaser for value is one who buys the
property of another without notice that some other person has a right
to or interest in it, and who pays a full and fair price at the time of the
purchase or before receiving any notice of another person’s claim.
RECONSTITUTION OF TITLE
It is well to emphasize that a petition for reconstitution of lost or
destroyed OCT requires, as a condition precedent, that an OCT has
indeed been issued.
The purpose of reconstitution of title is to have the original
title reproduced in the same form it was when it was lost or destroyed.
RECONVEYANCE
An action for annulment of title or reconveyance based on fraud is
imprescriptible where the plaintiff is in possession of the property
subject of the acts. Moreover, the defense of indefeasibility of a
Torrens title does not extend to a transferee who takes it with notice
of a flaw in the title of his transferor
An action for the reconveyance of a parcel of land based on
implied or constructive trust, prescribes in 10 years, the point of
reference being the date of registration of the deed or the date of the
issuance of the certificate of title of the property. Without an OCT, the
date from whence the prescriptive period could be reckoned is
unknown and it could not be determined if indeed the period had
already lapsed or not.
CONFIRMATION OF IMPERFECT TITLE The reckoning of the
possession of an applicant for judicial confirmation of imperfect title is
the actual possession of the property. It is sufficient for the property
sought to be registered to be already alienable and disposable at the
time of the application for registration of title is filed.
HOMESTEAD PATENT Settled in this jurisdiction is the rule that the
rights of a holder of a homestead patent are superior over the rights
of the tenants guaranteed by the Agrarian Reform Law but it must be
substantiated by substantial evidence
The deceased shall be succeeded no longer by his widow,
but "by his heirs in law, who shall be entitled to have issued to them
the patent—if they show that they have complied with the
requirements therefor".
NOTICE OF LIS PENDENS The cancellation of a notice of pendency
terminates the effects of such notice; thus, the buyers of the property
cannot be considered transferees pendente lite and purchasers in bad
faith.
REDEMPTION In cases involving redemption, the law protects the
original owner. It is the policy of the law to aid rather than to defeat
the owner's right.
ACQUISITIVE PRESCRIPTION
Acquisitive prescription does not lie against Tirso Monteroso as the
required extraordinary prescription period of 30 years has not yet
lapsed, counted from said considered repudiation. Such would still be
true even if the period is counted from the time of the death of Don
Fabian when the Cagampang spouses took exclusive possession of the
subject properties.