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PERSONS ii.

Registered with the civil registrar general


iii. Acting within the limits of the written authority granted
Marriage Rights (Art. 69,73) him by his church
- Fix the family domicile. In case of disagreement, court shall iv. At least 1 of the contracting parties belongs to the
decide solemnizing officer’s church or sect
o Court may exempt 1 spouse from living with the other: c. Ship captain or airplane chief in case of marriage in
! Should the other spouse live abroad articulo mortis between passengers or crew members –
! Other valid and compelling reasons for exemption – while at sea or in flight and during stopovers
must be compatible with the solidarity of the family d. Military commander of a unit who is a commissioned officer
- Either spouse may exercise any legitimate profession, i. A chaplain is assigned
occupation, business or activity without the consent of the ii. Assigned chaplain is absent
other, who may object only on valid, serious, and moral iii. During military operation
grounds. In case of disagreement, court shall decide whether: iv. Marriage in articulo mortis between persons within the
o Objection is proper zone of military operation, whether members of the
o Benefit has accrued to the family prior to the objection or armed forces or civilians
thereafter. If the benefit accrued prior, resulting obligation e. Consul-general, consul, or vice-consul for marriages
shall be enforced against the ACP or CPG. If benefit between Filipino citizens abroad
accrued after, it shall be enforced against the separate f. Mayors, vice-mayor acting as mayor, or member of the
property. But this shall not prejudice the rights of creditors in Sangguniang Bayan acting as mayor
GF
2. Marriage License
Marriage Obligations (Art. 68, 70, 71) a. 18-21 (Art. 14)
- Live together, observe mutual love, respect and fidelity, and b. 21-25 (Art. 15)
render mutual help and support c. 18-25 (Art. 16)
- Jointly responsible for support of family; expenses for support d. Prior marriage (Art. 13)
and other conjugal obligations to be paid from community e. Foreigners (Art. 21)
property. In its absence, from income or fruits of their separate i. Stateless
properties. If still insufficient, their separate property. ii. Refugees
- Management of the household
3. Marriage Ceremony (Art. 6, 8)
Essential Requisites: - Must be in public
1. Legal capacity (Art. 2, 5) - Contracting parties to appear personally before the
a. 18 years old solemnizing officer
b. No legal impediment - Declare that they take each other as H & W
2. Consent freely given (Art. 2) - In the presence of at least 2 witnesses of legal age (may be
dispensed but the solemnizing officer may be
Formal Requisites: **IRREGULARITY in FORMAL REQUISITE - VALID administratively punished)
1. Authority of Solemnizing Officer(Art.7,10,35(2),Mayor in LGC ‘91)
a. Incumbent member of the judiciary within the court’s a. Solemnized Outside RP [Art. 26(1&2)]
jurisdiction b. Exceptions [Art. 35(1,4,5,6)]
b. Priest, rabbi, imam or minister of any church or sect
i. Duly authorized by his church or religious sect

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ADDITIONAL REQUIREMENTS for: o Contracted through mistake of 1 contracting party as to the
A. Contracting parties below 21: identity of the other
) Secure PARENTAL CONSENT (Art. 14) o Subsequent marriages that are void
) Secure MARRIAGE COUNSELING (Art. 16)
o Except those in the health profession (family planning) ) Art. 36 (Psychological Incapacity)
o Marriage contracted by any party who, at the time of the
B. Contracting parties 21-25: celebration, was psychologically incapacitated to comply
) Secure PARENTAL ADVICE (Art. 15) with the essential marital obligations of marriage even if such
) Secure MARRIAGE COUNSELING (Art. 16) incapacity becomes manifest only after its solemnization
o Except those in the health profession (family planning) o Molina doctrine
! Burden of proof to show the nullity belongs to the plaintiff
EXCEPTIONS as to WHO CANNOT BE MARRIED: ! PI must be:
1. Incestuous (Art. 37) • Medically or clinically identified
a. Between ascendants and descendant of any degree; and • Alleged in the complaint
b. Between brothers and sisters, full or half blood • Sufficiently proven by experts
• Clearly explained in the decision
2. Against Public Policy (Art. 38) ! Incapacity must be proven to be existing at the time of
a. Between collateral blood relatives, legitimate or illegitimate, up the celebration of the marriage
to the 4th civil degree ! Incapacity must be shown to be medically or clinically
b. Between step-parents and step-children permanent or incurable
c. Between parents-in-law and children-in-law ! Illness must be grave enough to bring about the disability
d. Between adopting parent and adopted child of the party to assume the essential obligations of
e. Between surviving spouse of the adopting parent and the marriage
adopted child ! Non-complied essential marital obligations must be those
f. Between surviving spouse of the adopted child and the in the FC, stated in the petition, proven by evidence, and
adopter included in the decision
g. Between adopted child and a legitimate child of the adopter ! Interpretation of National Appellate Matrimonial Tribunal
h. Between adopted children of the same adopter of the Catholic Church is given great respect by the
i. Between parties where one, with the intention to marry the courts, while not controlling
other, killed that other person’s spouse or his or her own spouse ! Trial court must order the fiscal and the Solicitor General to
appear as counsel for the state
VOID MARRIAGES Art. 26
) Art. 35 ) Citizenship is determined at the time when the spouse applies
o Contracted by any party below 18 even with consent of for a divorce decree.
parents or guardian o If Filipino has become a foreign citizen and applies for
o Solemnized by any person not legally authorized to perform divorce he/she is considered as a foreigner.
marriages unless such marriages were contracted with either o If Filipino acquires divorce in foreign country but maintains
or both parties believing in good faith that the solemnizing Filipino citizenship, no divorce decree allowed.
officer had the legal authority to do so
o Solemnized without a license, unless exempt
o Bigamous or polygamous marriages not falling under Art. 41

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Absence of Essential Requisite – Defect in Essential Requisite –
VOID FROM THE BEGINNING VOID BUT CAN BE CURED
Decree of Nullity Decree of Annulment
Art. 35 (1-6); 36(Molina Doctrine), Art. 45-47
37, 38, 44, 53 1. 18-21yo without consent Notes on TABLE BELOW on Decree of Annulment
1. Void Marriages 2. Either party was of **If marriage is VOID or VOIDABLE, look at Arts. 48-54
2. Psychological incapacity unsound mind **Art. 41 & 42: Subsequent marriage may be terminated if there is a
3. Incestuous marriages 3. Consent of either party reappearance of the absent spouse and there is a recording in the
4. Marriages contrary to was obtained by fraud local civil registrar of such reappearance.
public policy 4. Consent of either party **Custody of children – innocent spouse
5. If both spouses of the was obtained by force, ** Custody of children below 7:
subsequent marriage intimidation, or undue ) Generally to the mother
acted in BF influence ) Except if there are compelling reasons:
6. Subsequent marriage 5. Impotence o Insanity
before judgment of 6. Serious and incurable STD o Drug addiction
annulment or of absolute o Maltreatment by word and by deed
nullity o Communicable diseases

Decree of Annulment
Ground for annulment Who may file action for Prescriptive period Ratification
annulment
18-21yo without consent Party whose parent did not give Within 5 yrs from attaining age of 21; After attaining 21yo, they
consent; freely cohabited

Parent or guardian Anytime before party reaches 21yo


Either party was of unsound mind Sane spouse; Before death After coming to reason,
such party freely cohabited
Any relative or guardian of the
insane;
During a lucid interval or after
Insane spouse regaining sanity
Consent of either party was obtained by Injured party Within 5yrs after discovery of fraud With full knowledge of the
fraud facts constituting fraud, still
freely cohabited
Consent of either party was obtained by Injured party Within 5yrs from the time of force, After disappearance of
force, intimidation, or undue influence intimidation, or undue influence force, he freely cohabited
disappeared or ceased
Impotence Injured party Within 5yrs after the marriage
Serious and incurable STD Injured party Within 5yrs after the marriage

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LEGAL SEPARATION o ACP or CPG shall be dissolved and liquidated but offending
) Grounds for Petition for Legal Separation (Art.55) spouse shall have no right to any share of the net profits
o Repeated physical violence or grossly abusive conduct and shall be forfeited in favor of:
against petitioner, a common child, or child of petitioner ! Common children
o Physical violence or moral pressure to compel the petitioner ! If none, children of guilty spouse by a previous marriage
to change religious or political affiliation ! In default of children, the innocent spouse
o Attempt to corrupt or induce petitioner, a common child, o Custody of minor children shall be awarded to innocent
or child of petitioner, to engage in prostitution, or spouse
connivance in such corruption or inducement o Offending spouse is disqualified from inheriting from the
o Final judgment sentencing respondent to imprisonment of innocent spouse by intestate succession and provisions in
more than 6 years even if pardoned favor of offending spouse in the will shall be revoked by
o Drug addiction or habitual alcoholism operation of law
o Contracting a subsequent bigamous marriage in the PH or o Innocent spouse may revoke donations made by him to
abroad offending spouse
o Sexual infidelity or perversion (both adultery and o Innocent spouse may revoke designation of the guilty
concubinage) spouse as beneficiary in any insurance policy even if such
o Attempt against the life of petitioner designation is stipulated as irrevocable
o Abandonment without justifiable cause for more than 1
year ) Reconciliation (Art. 65)
o Procedure
) Effects of Filing Petition for Legal Separation (Art. 61, 62) ! Joint manifestation under oath duly signed
o Spouses shall be entitled to live separately from each other ! File with the court in the same proceeding for legal
o Court shall designate administrator of ACP or CPG separation
o Court shall provide for the support of the spouses, custody ! Court order containing consequences shall be
and support of the common children recorded in the civil registry
o Consequences
) Action for Legal Separation (Arts. 57-60) ! Proceedings, if still pending, shall be terminated
o Filed within 5 years from the time of the occurrence of the ! Final decree shall be set aside but the separation of
cause (Art. 57) property and any forfeiture of share of guilty spouse
o Not be tried before 6 months from the filing of the petition already effected shall subsist, unless they agree to
(Art. 58) – for reconciliation revive former regime
o Court must have taken step toward reconciliation and only
when it is fully satisfied that despite such efforts, ) Grounds for Denial of Petition for Legal Separation (Art. 56)
reconciliation is highly improbably will a decree be issued o Condonation
(Art. 59) o Consent
o No decree shall be based upon stipulation of facts or o Connivance
confession of judgment. Court shall order the fiscal to take o Collusion
steps to prevent collusion and take care the evidence is o Prescription
not fabricated or suppressed (Art. 60) o Both parties have given ground for legal separation

) Effects of Legal Separation Decree (Arts. 63-64)


o Live separately but marriage bond not severed

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PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE Donations of future properties:
Testate Succession – formalities of wills
Property Relations
1. Marriage Settlement Donations during marriage
2. Family Code ) General Rule: They cannot donate to one another
3. Local Customs o Exception: Moderate gifts on occasion of family
rejoicing (Art. 87)
Property Relations ) No donation by either spouse without consent of the other
) Phil. Laws of ACP/CPG property
) Exceptions (Art. 80) o Exception: moderate donations for charity/occasions of
o H&W Aliens family rejoicing or family distress
o Properties outside RP
Revocation of donation propter nuptias
Marriage Settlement is Valid if (Art. 77) – Void if, NO MARRIAGE ) Marriage does not happen or celebrated (law uses the
(Exception (Art.81): stipulations do not depend upon celebration of term “MAY,” only permissive, not automatic)
marriage) ) Judicially declared void
1. In writing ) Without parental/guardian consent
2. Signed by the parties ) Marriage is annulled, and donee is in bad faith
3. Executed before the marriage ) Legal separation, and donee is guilty party
) Resolutory condition complied
Marriage Settlement is binding vs 3rd parties if registered with proper ) Ingratitude of Donee
LCR/RD.

Property Regimes:
1. ACP – co-ownership
2. CPG
3. Complete Separation of Properties

Donations Propter Nuptias (Art. 82)


1. Made before marriage
2. In consideration of marriage
3. In favor of one or both of the future spouses
*No donation by future spouses to each other if donating more than
1/5 of their present property if property regime is NOT ACP (Art. 84);
any excess VOID.

Property donated subject to encumbrances – VALID (Art. 85)


Foreclosure Sale:
1. Proceeds less than the amount of the obligation –
Donee is NOT liable for deficiency
2. Proceeds more than the amount of the obligation –
Donee is ENTITLED to excess

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Property Regime of Valid Marriages a. Brought to the marriage as own property
1. Absolute Community of Property b. Acquired by gratuitous title
2. Conjugal Partnership of Gains c. Bought by exclusive money of husband or wife
3. Separate Property Regime d. Acquired by right of redemption, barter or exchange
with property of husband or wife.
ACP CPG
Commence at precise moment Commence at precise moment Separation of Property Regime
of marriage of marriage 1. Agreed by H&W in marriage settlement
No waiver of rights, interest, No waiver of rights, interest, 2. Present or future properties; total or partial; property not
shares & effects during marriage. shares & effects during marriage. separate belong to ACP (Art. 144)
3. Each spouse own, dispose of, possess, administer, enjoy,
Exception: Judicial separation of Exception: Judicial separation of HIS/HER property without consent of the other spouse; to each
property or marriage property or marriage spouse belongs all earnings
dissolved/annulled: dissolved/annulled: 4. BOTH bear family expenses in proportion to their income;
a. Waiver in public a. Waiver in public insufficient " current market value of separate property may
instrument instrument be sold to answer for family expenses
b. Recorded in LCR/RD b. Recorded in LCR/RD 5. Liability to creditors for family expenses is SOLIDARY
Property acquired DURING Property acquired DURING
marriage PRESUMED ACP/CPG marriage PRESUMED ACP/CPG Property Regimes of Unions Without MARRIAGE
unless proved to be excluded unless proved to be excluded 1. Co-Ownership (Art. 147) – man and woman capacitated to
(Art. 93/116) (Art. 93/116) marry each other, live exclusively with each other as husband
and wife, without marriage or under a void marriage. " EQUAL
**The words “MARRIED TO” are merely descriptive.
SHARES even if one party’s efforts consisted in the care of
**Presumption of conjugality or community of property must be
family/household (i.e. psychological incapacity)
proved.
2. Co-Ownership (Art. 148) – man and woman living together as
husband and wife, one or both with legal impediment to
Absolute Community Property
contract marriage. " ACTUAL JOINT CONTRIBUTION of money,
1. Co-ownership (Art. 90)
property or industry in the acquisition of properties.
2. All properties at the time of the marriage and acquired
thereafter (Art. 91)
Administration of ACP/CPG (Art. 96/124)
3. PROPERTY EXCLUDED (Art. 92)
1. Belongs to both spouses jointly
a. Acquired gratuitously
a. If there is DISAGREEMENT " Husband’s decision subject
b. Personal and exclusive use
to " recourse by wife to the court within 5 YEARS FROM
i. EXCEPT: Jewelries (Valuable)
THE DATE OF THE CONTRACT implementing such
c. Acquired before marriage by either spouse with
decision (Art. 96/124)
legitimate descendants by a former marriage
2. Incapacity of one spouse " sole administration by the other
spouse which DOES NOT INCLUDE the powers of disposition or
Conjugal Partnership of Gains (Art. 108)
encumbrance WITHOUT:
1. Proceeds, products, fruits & income of Husband &Wife’s
a. Authority of the court
separate property placed in a COMMON FUND; net gains
b. Written marital consent of the other spouse
divided equally between Husband & Wife upon dissolution of
** WITHOUT a or b, ENTIRE TRANSACTION is VOID.
marriage (Art. 106)
2. PROPERTY EXCLUDED (Art. 109)
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Termination of ACP/CPG (Art. 99/126) Administration of Exclusive Property Transferred to ONE spouse if ONE
3. Death of either spouse " ACP/CPG liquidated in estate spouse: (Art 142)
proceedings; judicial or extra-judicial liquidation within 1 year from 1. Becomes the guardian of the other
death of spouse 2. Judicially declared an absentee
a. If there is NO LIQUIDATION 3. Sentenced to a penalty of civil interdiction (accessory penalty)
i. Disposition or encumbrance VOID 4. Becomes fugitive from justice or is in hiding as accused in
ii. Mandatory regime of COMPLETE SEPARATION of criminal case
PROPERTY of subsequent marriage (Art. 103/130) **SPOUSE NOT QUALIFIED " court shall appoint suitable person as
4. Degree of legal separation administrator even 3rd persons
5. Marriage annulled or declared void
6. Judicial separation of property during the marriage under Arts. 134- Separation of Property of Spouses during marriage:
138. ) Gen. Rule: only by judicial order (Art. 134)
) Exception: Express declaration in marriage settlement
Liquidation of ACP/CPG (Art. 102/129) o Sufficient Causes (Art. 135)
1. Inventory of properties which are ACP/CPG and exclusive ! Penalty with civil interdiction
property ! Spouse judicially declared absentee
2. Debts/obligations (that redounded to the benefit of the family) ! Judicial decree of loss of parental authority
paid out of assets of ACP/CPG; if insufficient" separate ! Abandonment/failure to comply with family
property of spouses obligation
3. Balance from exclusive properties " delivered to spouses ! Administering spouse abused power
4. Net assets of ACP/CPG divided equally between spouses ! De facto separation of husband and wife for at
a. EXCEPTION: different division agreed by spouses in least 1 year and reconciliation highly
marriage settlement improbable
5. Presumptive legitimes delivered to common children o Voluntary Dissolution (Arts. 136-140)
6. Conjugal dwelling and lot (to be given to the spouse majority ! Verified petition filed by spouses; creditors
of the children remain; children below 7 years old generally " notified and protected
mother. (Exception: Court finds compelling reasons not to give ! ACP/CPG liquidated; complete separation of
to the mother " best interest of the children) property applicable
! Judicial decree of separation of property
Separation De Facto between Husband and Wife recorded in LCR/RD
) Shall NOT AFFECT ACP/CPG (Art. 100/127) ! LIMITATION: May only be dissolved and revived
o EXCEPTIONS: only ONCE
! Spouse who leaves conjugal home without just cause "
NO support
! Consent of one spouse to any transaction required by
law " judicial authorization in a summary proceeding
! Absence of sufficient ACP/CPG assets " separate
property of both spouses SOLIDARILY LIABLE for support
of family
! Spouse without just cause abandons the other " court
petition for receivership, judicial separation of property,
authority to be sole administrator (Art. 101)

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FAMILY RELATIONS Judgment in favor of creditor not one of those in Art. 155 and FH worth
) Family relations include those: more than Art. 157 " lowest bid as provided in Art. 157 and applied in
o Between H &W said Art. 157, then to liabilities under the judgment and costs; EXCESS –
o Between parents & children judgment creditor (Art. 160)
o Among other ascendants & descendants
o Among brothers and sisters, full or half blood PATERNITY AND FILIATION

Family Home Filiation:


1. Definition. constituted jointly by the H & W or by an unmarried • May be by NATURE (legitimate, illegitimate, legitimated) or by
head of the family, is the dwelling house where they and their ADOPTION (fiction of law)
family reside and the land on which it is situated. Deemed o Provisions on Adoption:
constituted as such from the time it is occupied as a family ! Inter-Country Adoption Act of 1995 (6/7/94)
residence so long as any of its beneficiaries resides therein. ! Domestic Adoption Act of 1998 ( )
LEGITIMATE CHILDREN
2. Beneficiaries of a family home A. Are those: (Art. 164)
a. H & W or an unmarried head of the family a. Conceived or born during marriage
b. Their parents, ascendants, descendants, brothers and sisters b. Conceived by artificial insemination (may be done by
(legitimate or illegitimate) who are living in the family home ratification but must still comply with all the requisites)
and who depend upon them for legal support i. Authorized by BOTH spouses
ii. In a written instrument
3. EXEMPT from execution, forced sale or attachment EXCEPT: (Art. iii. Signed by BOTH spouses BEFORE birth of child
155) iv. Recorded in the LCR together with birth certificate
a. Non-payment of taxes c. Whose mother may have declared against the
b. Debts incurred prior to constitution of FH legitimacy/may have been sentenced an adulteress (Art.
c. Debts secured by mortgages on the premises before/after 167)
constitution of FH i. Only the husband or his heirs (special cases) may
d. Debts due to laborers, mechanics, architects, builders, etc. impugn the legitimacy of a child.
who rendered service/materials for construction of the building. ii. Within 1 year if the child is born in the same city,
province, municipality and the husband or heirs are
4. ACTUAL VALUE of FH: living in the same city, province or municipality
a. P300T – in urban areas iii. Within 2 years if the child is born in a different city,
b. P200T in rural areas or such amounts as may hereafter be fixed province or municipality from the husband or his heirs.
by law (Art. 157) iv. Within 3 years if the child was born in a country different
*COMPUTATION: from where the husband or his heirs reside.
Foreclosure sale price collected – FH (300k or 200k) – judgment debtor 1. If concealed, one, two or three years from
knowledge.
5. MAY be sold, alienated, donated, assigned or encumbered with
the WRITTEN consent of the person constituting the FH, the latter’s B. Shall have the RIGHT TO: (Art. 174)
spouse and majority of the beneficiaries of legal age; in case of a. Bear surnames of Father and Mother;
conflict – court shall decide (Art. 158) b. Receive support from their parents, ascendants,
brothers/sisters;
6. EXECUTION of FH: c. Legitime/successional rights

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C. FILIATION is established by: (Art. 172) WHO MAY IMPUGN LEGITIMACY OF CHILD:
a. Record of birth appearing in the civil register or a final • General Rule: Husband
judgment. • Exceptions:
b. An admission in a public document or a private hand- o Heirs of the husband (Art. 171)
written instrument signed by the concerned parent. ! If the husband should die before the expiration of the
i. IN THEIR ABSENCE, legitimate filiation shall be proved by: period fixed for bringing his action.
1. Open and continuous possession of the status of a ! If husband should die after filing of the complaint,
legitimate child. without having desisted therefrom.
2. Any other means allowed by the rules of Court & ! If the child was born after the death of the husband
Special laws. (Art. 171)

D. ACTION to CLAIM LEGITIMACY may be brought by: (Art. 173) Period to Impugn Legitimacy: (Art. 170) – from the knowledge of the
a. Child – during his/her lifetime; action commenced by the birth or its recording in the civil register:
child shall survive notwithstanding the death of either or 1. One year – if H or his heirs reside in the city or municipality
both of the parties. where the birth took place or was recorded
b. Heirs of the child – should the child die during minority or in 2. Two years – if H or his heirs do not reside in the same city or
a state , within a period of 5 years from death of the child municipality but in the PH
(CONDITIONAL: the action must have been started by the 3. Three years – if H or his heirs reside abroad
CHILD) 4. If birth concealed, period shall be counted from discovery or
knowledge of the birth or fact of registration, whichever is
E. LEGITIMACY of a child may be IMPUGNED only on the following earlier
GROUNDS: (Art. 166)
a. Physical impossibility for the husband to have sexual ILLEGITIMATE CHILDREN
intercourse with his wife within the first 120 days of the 300 A. Are those: (Art. 165)
days which immediately preceded the birth of the child a. Conceived and born outside a valid marriage
because of: B. Shall have the RIGHT: (Art. 176)
i. Physical incapacity of husband to have sexual a. Use the surname, be under the parental authority of the
intercourse with his wife. mother (RA 9255)
ii. Fact that husband and wife were living separately that b. Entitled to support in conformity with the Civil Code
sexual intercourse was NOT possible. (only the father, not AC)
iii. Serious illness of the husband, which absolutely c. Entitled to legitime, which is ½ the legitime of a
prevented sexual intercourse legitimate child.
b. Biological or other scientific reasons that the child could not C. FILIATION is ESTABLISHED by the same evidence as in Art. 172
have been that of the husband (i.e. sterility) and within the same evidence as in Art. 172 and within the
c. In case of artificial insemination, the written authorization or same period as in Art 173 except when based on 2nd
ratification of either parent was obtained through mistake, paragraph of Art. 172 in which case the action may be
fraud, violence, intimidation or undue influence. brought only DURING THE LIFETIME of the alleged PARENT.
a. Voluntary recognition by father
b. Compulsory acknowledgement with the mother and
child represented by the mother – go to Court and
prove filiation based on the evidence presented (Art.
172)

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LEGITIMATED CHILDREN 7. At least 16 years older than adoptee
A. Are those: (Art. 177/178) a. 16 year-gap between adopter and adoptee
a. Conceived and born outside of wedlock of parents who at may be waived if:
the time of conception have *no legal impediment to i. Adopter is the biological parent
marry each other and whose parents subsequently married ii. Adopter is the spouse of the legitimate
each other. *(RA 9858 – no reason why they cannot be parent of the adoptee
married except AGE) ii. An alien/foreigner
B. Shall have the SAME rights as legitimate children (Art. 179) 1. With the same qualifications above-stated
C. Legitimation retroacts to the time of the child’s birth (Art. 180) 2. Whose country has diplomatic relations with RP
a. Legitimation of children who died before the celebration of 3. Living in the RP for at least 3 continuous years prior
the marriage benefits their descendants (Art. 181) to filing petition for adoption until adoption decree
b. May be impugned only by those who are prejudiced in is entered (MAY BE WAIVED:
their rights, within five years from the time their cause of 4. Certified by his diplomatic/consular office to have
action accrues (Art. 182) legal capacity to adopt in his country (MAY BE
i. Cause of action accrues – from the death of the parents WAIVED)
5. Whose government allows the adoptee to enter his
RULES if 1st marriage terminated and mother contracted a subsequent country as his adopted child.
marriage (Art. 168) – (WHO IS THE FATHER) a. RESIDENCY AND CERTIFICATION MAY BE WAIVED:
A. A child born before 180 days after the solemnization of the i. A former Filipino citizen who seeks to adopt
subsequent marriage is considered to have been conceived a relative within the 4th degree of
during the 1st marriage, provided it be born within 300 days consanguinity or affinity.
after the termination of the 1st marriage. ii. One who seeks to adopt the legitimate child
a. KNOW when the child was born of his Filipino spouse.
b. WHEN the 1st marriage was terminated iii. One who is married to a Filipino citizen,
c. WHEN the 2nd marriage was celebrated seeking to adopt jointly with his spouse a
B. A child born after the 180 days after the solemnization of the relative within the 4th degree of
subsequent marriage is considered to have been conceived consanguinity or affinity of the Filipino
during such marriage, even though it be born within the 300 spouse.)
days after the termination of the 1st marriage. iii. The guardian with respect to the ward after the
termination of the guardianship and clearance of
ADOPTION his/her financial liabilities.
1. Domestic Adoption Act of 1998 (RA 8552)
a. Who may adopt? GENERAL RULE: Husband and wife shall jointly adopt, EXCEPT:
i. Any Filipino citizen 1. If one spouse seeks to adopt the legitimate Child of the other
1. Of legal age spouse
2. With full civil capacity and legal rights 2. If one spouse seeks to adopt his own illegitimate child,
3. Of good moral character however, the other spouse must provide a written consent,
4. Not convicted of a crime involving moral turpitude also, the written consent of the biological parent is a
5. Emotionally and psychologically capable of caring requirement, otherwise, the petition for adoption shall be
for children denied.
6. In a position to support and care for his children in 3. If the spouses are legally separated from each other.
keeping with the means of the family WHO MAY BE ADOPTED?

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A. Any person below 18 years who has been administratively or SUPERVISED TRIAL CUSTODY
judicially declared available for adoption • General rule: 6-month-period for adoptee and adopters to
B. Leg. Son/daughter of one spouse by the other spouse adjust psychologically and emotionally to each other.
C. Ill. Son/daughter by a qualified adopter to improve his/her • To establish a bonding relationship
status to that of legitimacy. • Temporary parental authority vested in the adopter(s)
D. A person of legal age if, prior to the adoption, said person has • Court may reduce trial custody period, if it is in the best interest
been consistently considered and treated by the adopter as of the child, EXCEPT:
his/her own child since minority. o Alien adopter(s) " 6-month trial custody period MUST
E. A child whose adoption has been previously rescinded. be completed unless alien adopter falls under Sec. 7(b).
F. A child whose biological/adoptive parents have died,
provided, that no proceedings shall be initiated within 6 months Adoption Decree
from the time of death of said parent. • Effective as of the date the original petition was filed.
• Amended birth certificate of adoptee to be issued by LCR;
WHOSE CONSENT IS NECESSARY TO THE ADOPTION? original birth certificate “CANCELLED”.
A. The adoptee, if 10 years or over
B. Biological parents of the child, if known, or legal guardian or Effects of Adoption:
the proper government instrumentality which has legal custody • Except where biological parent is the spouse of the adopter, all
of the child. legal ties between biological parents and adoptee shall be
C. Legitimate and adopted children, 10 years of over, of the severe and parental authority shall be vested on the adopters
adopter(s) and adoptee, if any. • Adoptee shall be considered the legitimate child of the
D. Illegitimate children, 10 years or over of the adopter, if living adopters entitled to all the rights and obligation provided by
with said adopter and the latter’s spouse, if any. law to legitimate children, without discrimination of any kind
E. Spouse, if any, of the person adopting or to be adopted. adoptee entitle to love, guidance and support in keeping with
the means of the family.
WHERE TO FILE PETITION? • In legal and intestate succession, adopters and adoptee shall
• Family court of the province or city where the prospective have reciprocal rights of succession, without distinction from
adoptive parents reside. legitimate filiation. Law on testamentary succession shall
govern if adoptee and his biological parents left a will.
PUBLICATION – JURISDICTION issue o CC: if adoptee dies intestate, biological parents will
• Once a week for 3 successive weeks in a newspaper of succeed.
general circulation in the province/city where court is situated o FC: if adoptee dies intestate, biological and adopters
shall have ½ share each.
CHILD and HOME STUDY REPORTS o DAC: if adoptee dies intestate, adopters shall inherit,
• To be conducted by DSWD licensed social worker on the excluding
adoptee, biological parent(s) and adopter(s).
• To be submitted together with findings and recommendations
to the court hearing the petition. – highly persuasive to the
court.

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Rescission of Adoption o At least 16 years older than adoptee at the time of the
• Only the adopted child may petition for rescission of adoption application, EXCEPT if adopter is
o Grounds for rescission of adoption: ! Natural parent of adoptee or
! Repeated physical and verbal maltreatment by the ! Spouse of such parent
adopters despite counseling. o Has capacity to act and assume rights and
! Attempt on the life of the adoptee responsibilities of parental authority under his national
! Sexual assault or violence laws and has undergone counseling from an
! Abandonment and failure to comply with parental accredited counselor in his country
obligations. o Not convicted of a crime involving moral turpitude
o Adopter MAY DISINHERIT, not file for rescission of adoption, o Eligible to adopt under his national law
adoptee for causes provided under Art. 919 NCC. o In a position to provide proper care and support and to
give necessary moral values and example to all his
Effects of Rescission of Adoption children including adoptee
1. Parental authority of adoptee’s biological parents or legal o Agrees to uphold basic rights of the child under PH laws,
custody of DSWD, if adoptee is still a minor or incapacitated, UN Convention on Rights of Child and abide by the IRR
shall be restored. of this act
2. All reciprocal rights and obligations between adopter and o Comes from a country with whom PH has diplomatic
adoptee arising from parent-child relationship are extinguished. relations and whose government maintains a similarly
3. Court shall order amendment of the records in the civil registries authorized and accredited agency and that adoptions
& restore original birth certificate is allowed in his national laws
4. Succession rights shall revert to its status prior to adoption but o Possesses all qualifications and none of the
only as of the date of judgment of judicial rescission. Vested disqualifications
rights accrued prior shall be respected.
Where to file?
Inter Country adoption board ) Family court having jurisdiction over the place where the
) Secretary of DSWD as ex-officio Chairman child resides or
) 6 other members appointed by the Pres. For a non- ) Directly with the inter-country adoption board.
renewable term of 6yrs:
o 1 psychiatrist or psychologist Attachments to the application – written in ENGLISH
o 2 lawyers with qualifications of RTC judge
o 1 registered social worker Family Selection/Matching
o 2 representatives from NGOs engaged in child-caring • No child shall be matched to a foreign adoptive family unless it
and placement activities is satisfactorily shown that the child cannot be adopted locally.
o Adoptive parents, or any of them, shall personally fetch
Who may be adopted? the child in the Philippines.
• Legally free child " voluntarily or involuntarily committed to the
DSWD Pre-Adoptive Placement Costs
• Cost of bringing child from RP to the residence of the
Who may Adopt? applicants
• Foreigner or Filipino citizen • Cost of Passport and Visa
• Permanently residing abroad • Cost of Medical exams or Psychological evaluations
o At least 27 years old • Transportation and other related expenses

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• Have to prove that you are willing to spend for the child and PARENTAL AUTHORITY
that you are really capable of spending for this particular child 1. Parental authority/responsibility may NOT be
renounced/transferred, except in cases authorized by law. (Art.
Supervised Trial Custody 210 – adoption, guardianship, giving child to orphanages)
) 6 months from time of placement 2. Father and Mother jointly exercise parental authority over
) Only after this shall a decree of adoption be issued common children; DISAGREEMENT – father’s decision, unless
) Progress report – Adopter shall submit to the government there is judicial order to the contrary. (Art. 211)
agency, which in turn will transmit a copy to the board; *CHILDREN – respect, reverence, obedience to parents
shall be taken into consideration in issuing decree 3.
a. Absence/death of 1 parent – present parent;
Art. 194 – SUPPORT remarriage of 1 parent does not affect parental
• Comprises everything indispensable for sustenance, dwelling, authority, unless court appoints guardian over
clothing, medical attendance, education and transportation, person/property of children (Art. 212) " BUT, as a
in keeping with the financial capacity of the family. (Art. 194) general rule, the step-parent CANNOT exercise parental
authority over the children, except if he/she adopts the
The following are obliged to support each other (Art. 195): child.
• The spouses b. Separation of parents – parent designated by the court;
• Legitimate ascendants and descendants child less than 7, given to the mother, unless court finds
• Parents and their legitimate children and the legitimate or compelling reason (Art. 213)
illegitimate children of the latter c. In default of BOTH parents or a judicially appointed
• Parents and their ill. Children and legitimate or illegitimate guardian: (Art. 216)
children of the latter i. Surviving grandparent (Art. 214) " if able
• Legitimate brothers and sisters, whether full or half blood. ii. Oldest brother/sister more than 21 years of age
iii. Child’s actual custodian, more than 21 years of
Art. 199 – 2 or more persons are obliged to give support, liability is in the age.
ff order: 4. No descendant shall be compelled, in a criminal case to testify
• The spouse against his parents and grandparents, except when such
• Descendants in the nearest degree (the nearer excludes the testimony is INDISPENSABLE in a crime against the descendant
farther) or by one parents against the other (Art. 215).
• Ascendants in the nearest degree 5. Art. 217. Parental authority over foundlings, abandoned,
• Brothers and sisters neglected or abused children " heads of children’s homes,
*Support shall be in proportion to the resources or means of the giver orphanages and similar institutions accredited by the proper
and to the necessities of the recipient (Art. 201) government agency. (There is summary proceeding so that
*Paying allowance fixed or maintaining person to be supported in the these heads can exercise parental authority over the children)
family dwelling, except in case of moral or legal obstacle (i.e. legal 6. Art. 218. Special parental authority – school, its administrators
family is against such act of letting the illegitimate child live within the and teachers or individual/institution engaged in child care;
family dwelling) (Art. 204). while minor child under their supervision or custody principally
and solidarily liable for damages caused by acts of minor;
parents/substitute parents subsidiarilly liable.
a. Art. 221 – parents/persons exercising parental authority
" civilly liable for injuries or damages caused by acts or

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omissions of their unemancipated children living in their i. Parental authority reinstated if the court finds
company and under their parental authority that the cause has ceased and will not be
b. Difference of SUBSTITUTED PARENTAL AUTHORITY (no repeated.
parents or incapacitated, etc.) AND SPECIAL PARENTAL d. Subjects the child or allows him to be subjected to acts
AUTHORITY (parents present and capacitated, only of lasciviousness or rape
temporary parental authority) i. Parental authority shall be permanently
deprived by the court (Art. 232) – EXEMPTION
*Art. 223 – parents or those exercising parental authority may petition
the COURT for an order providing for disciplinary measures over the SUMMARY JUDICIAL PROCEEDINGS: (Decision rendered by FC is
child immediate and executory – appeal)
• May include commitment of the child for not less than 30 days 1. Art. 41 – Declaration of presumptive death of absentee spouse
in accredited children’s homes. 2. Art. 51 – Delivery of the presumptive legitimes to the legitimate
children
Art. 225 – Father and mother exercise legal guardianship over property 3. Art. 69 – Fixing of the family domicile (Gen. Rule: both spouses)
of common child; disagreement " father’s decision, unless judicial 4. Art. 73 – Exercise of profession/vocation (Gen. Rule: both
order to the contrary; market value of minor’s property of less than spouses, unless there is objection based on valid, moral and
P50k " obtain a judicial bond as the court may determine but NOT serious grounds " court action)
LESS THAN 10% of the value of property/annual income of the child. 5. Art. 96/124 – Administration of ACP/CPG
6. Art. 217 – Parental authority over foundlings, etc.
Parental authority terminates permanently upon (Art. 228): 7. Art. 223 – Disciplinary measures over child
1. Death of the parents 8. Art. 225 – Judicial bond over property of child
2. Death of the child 9. Art. 239 – Judicial authorization when spouses are separated
3. Emancipation of the child de facto. (attach deed/contract)
4. Adoption of the child
5. Appointment of general guardian USE OF SURNAMES – not a matter of choice, the State is interested
6. Judicial decree of abandonment • Legitimate – father /legitimated – father /illegitimate – mother,
7. Final judgment of a competent court divesting parental unless acknowledged/adopted children - adopter
authority • Married woman;
8. Judicial declaration of absence/incapacity of person o Annulment of marriage
exercising parental authority ! May revert back to maiden surname
o Death of the husband
SUSPENSION of parental authority: ! May revert back to maiden surname
1. Conviction of a crime with the penalty of civil interdiction (Art. o Legal separation of spouses
230) ! Does not allow to revert back to maiden
a. Parental authority automatically reinstated upon surname
service of penalty or upon pardon or amnesty of • Identity of names and surnames (Jr – for children, II, etc. – only
offender for descendants)
2. Court action if parent: (Art. 231) • Usurpation of name and surname
a. Treats the child with excessive harshness or cruelty • Use of pen names or stage names
b. Gives the child corrupting orders, counsel or example
c. Compels the child to beg CHANGE OF NAME
• Gen. Rule – judicial action

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• Exception – clerical error law (may change first name, nick
name, NOT LAST NAME – when it is ridiculous or tainted with
dishonor, or you habitually use that nickname, or you publicly
use that nickname – to avoid confusion) " should be filed
PERSONALLY. " publication for 2 weeks

Illustrative Cases:

Republic vs. Jennifer B. Cagandahan (Sept. 12, 2008)


• Had both genital organs of both male and female
• From a female he became a male
• From Jennifer to Jeff
• Held: where the person is biologically intersex, the determining
factor in his gender classification would be what he, having
reached majority age, with good reason, thinks of his/her sex.

Rommel Silverio vs. Republic (Oct. 22, 2007)


• Male physically and took hormones
• Had a sex change in Bangkok
• Rommel to Mely
• Wanted to marry
• Held: A person’s first name cannot be changed on the ground
of sex reassignment. No law allows the change of entry in the
birth certificate as to gender on the ground of sex
reassignment.

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PROPERTY 7. Fertilizer actually used on a piece of land
• ACTUALLY used
Art. 415 IMMOVABLE or REAL PROPERTY – CODAL 8. Mines, quarries, and slag dumps, while the matter thereof
A. By Nature (Cannot be carried from place to place) forms part of the bed, and waters either running or
1. Lands, buildings, roads and constructions of all kinds stagnant
adhered to the soil
• Buildings or houses must have foundation, not just D. By Analogy (Classified by express provision of law)
superimposed on the land. 9. Docks, structures, though floating are intended by their
2. Trees, plants, and growing fruits, while they are attached to nature and object to remain at a fixed place on a river,
the land or form an integral part of an immovable lake or coast
10. Contracts for public works, and servitudes and other real
B. By Incorporation (Attached to an immovable in a fixed manner rights over immovable property
to be an integral part thereof) – includes 1 & 2
3. Everything attached to an immovable in a fixed manner, in ) The parties may enter into a chattel mortgage between real
such a way that it cannot be separated therefrom without property but it is only binding between the parties and not to
breaking the material or deterioration of the object 3rd parties.
4. Statues, reliefs, paintings or other objects for use or
ornamentation, placed in buildings or on lands by the TEST to Determine the Kind of Property:
owner of the immovable in such a manner that it reveals 1. Test of exclusion – if the object, etc. is excluded from the
the intention to attach them permanently to the tenements enumeration from Art. 415 then it is personal property
2. Test of description – if the object, etc. can be carried around or
C. By Destination (Placed in an immovable for the utility it gives to it may be removed without damaging the thing, then it is
the activity carried thereon) - #s 4, 5, 6, 7, 9 personal property.
5. Machinery, receptacles, instruments or implements
intended by the owner of the tenement for an industry or OWNERSHIP
works which may be carried on in a building or on a piece Art. 427 – Ownership – that independent right of a person to the
of land, which tend directly to meet the needs of the said exclusive enjoyment of a thing including its disposition and recovery,
industry or works. Requisites: subject only to the restrictions established by law and the rights of
• The machinery, etc. must be placed by the owner others.
of the tenement or his agent.
• The industry or works must be carried on in a Limitations on the Right of Ownership:
building or on a piece of land. 1. Inherent powers of the state – Police Power, Eminent Domain or
• The machinery, etc. must tend directly to meet the Expropriation and Taxation
needs of the said industry or works. 2. Constitution – foreigners may not own property except through
6. Animal houses, pigeon-houses, beehives, fish ponds or succession
breeding places of similar nature, in case their owner has 3. Law – legal easements
placed them or preserves them with the intention to have 4. Imposed by transferor of property – donor or testator –
them permanently attached to the land, and forming a restriction or prohibition given by such (limited to 20 years only)
permanent part of it; the animals in these places are 5. Imposed by owner himself – use or entry is restricted (in pledge,
included lease, etc.)
• It must be PERMANENTLY ATTACHED TO THE LAND, 6. Imposed from conflict with other rights – i.e. singing at the top
not just intent. of your lungs in the wee hours of the morning

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Rights as a consequence of Ownership: (8) 3. Said damage is much greater than damage to the property.
A. (Art. 428)
1. Enjoy and dispose of his property Disputable Presumption of Ownership (Art. 433). Requisites:
2. Recover the property from any holder or possessor (file a case 1. Actual physical or material possession of the property
for ejectment, preliminary mandatory injunction 2. Possession must be under the claim of ownership
3. True owner must resort to judicial process for the recovery of
B. (Art. 429) the property
3. Exclude any person from the enjoyment and disposal of the
property C. (Art. 430)
a. Principle of Self-Help: the owner or lawful possessor of a 4. Enclose or fence his land/tenement – first line of security, if
thing has the right to exclude any person from the someone crosses such, then he is an intruder/trespasser
enjoyment and disposal thereof and may use such force as
may be reasonably necessary to repel or prevent an actual D. (Art. 435)
or threatened unlawful invasion or usurpation of his property 5. Just compensation in expropriation
(Art. 429)
i. Requisites: E. (Art. 437)
1. Actual or threatened physical invasion or usurpation 6. Construct any works or make any plantation or excavation on
of property the surface or subsurface of his land
2. Invasion or usurpation must be unlawful a. not absolute, due to certain restrictions (i.e. surface
3. Owner or lawful possessor the one defending the rights)
property b. in excavating, minerals belong to the government
4. Reasonably necessary force to repel the invasion or based on the Regalian Doctrine
usurpation F. (Art. 438)
5. Exercised at the time of an ACTUAL or THREATENED 7. Own all or part of hidden treasures found in his property
dispossession or IMMEDIATELY AFTER dispossession
ii. Illustrative case: German Mgt. & Services v. CA Hidden Treasure: any hidden and unknown deposit of money, jewelry,
1. The doctrine of self-help can only be exercised at the or other precious objects the lawful ownership of which does not
time of actual or threated dispossession. When appear. (Art. 439)
possession has already been lost, the owner must
resort to judicial process for the recovery of the Finder is:
property, which is also in accordance with Art. 536: 1. Owner of land, building All treasure belongs to him
no possession through force or intimidation or property where
treasure was found
Doctrine of State of Necessity: that the owner of a thing has no right to 2. Not the owner thereof ½ to him ½ to owner
prohibit the interference of another with the same, if the interference is 3. Merely employed by the No share in the treasure but
necessary to avert an imminent danger and the threatened damage, owner should be paid his wages, unless
compared to the damage arising to the owner from the interference, there is an agreement to the
is much greater. (Art. 432). Requisites: contrary
1. An imminent danger and threatened damage to the actor or 4. Trespasser No share in treasure
3rd person Treasure is of interest to science State acquires them at their just
2. Interference to another’s property to avert such danger and or the arts price; division in conformity with
damage above rules

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G. (Art. 440) Art. 448. Rules when Landowner is in good faith and builder, planter,
8. Own all accession to his property – principle of accessory sower is also in good faith
follows the principal. Rights and Obligations of Rights and Obligations of B/P/S
Landowner in Good Faith in Good Faith
Accession: the right of the owner of the thing, real or personal, to 1. Right of appropriation after 1. Right of reimbursement of
become the owner of everything which is produced thereby, or which payment of indemnity necessary and useful
is incorporated or attached thereto, either naturally or artificially. provided in Arts. 546 and 548; expenses
a. Basic Principles in Accession: or 2. Right of retention until paid
i. Accessory follows the principal 2. Right to compel the B/P to pay 3. Right to buy the land upon
ii. Union or incorporation must, with certain exceptions, be the price of the land; and S, which the building has been
effected in such a manner that to separate the principal the proper rent built or trees have been
from the accessory would result in substantial injury to either EXCEPTION: value of land is planted
iii. He who is in good faith may be held responsible but shall considerably more than the EXCEPTION: value of the
not be penalized. value of the building or trees, property is considerably
iv. He who is in bad faith shall be penalized. hence: forced lease is the more that the value of the
v. The bad faith of one party neutralizes the bad faith of the remedy, the terms of which is building or property; hence,
other so both shall be considered in good faith (pari delicto) as per agreement of the forced lease will result
vi. No one should be unjustly enriched at the expense of the parties. In case of NOTE: Exception will only apply if B/P
other. cannot afford the value of the land,
disagreement, the court shall
but even in the land is worth
fix the terms thereof. considerably more, if the B/P can
Art. 447. Rules when Landowner constructs or plants on his land with pay, he cannot be deterred to buy
the materials of another if landowner chooses to sell.
Rights of Landowner Rights of Owner of Materials
Landowner in Right of appropriation 1. Right of Art. 449-452. Rights of Builder in bad faith and Landowner in good faith
Good Faith reimbursement OR Landowner in Good Faith Builder in Bad Faith
2. Limited right of 1. Right of appropriation No right except reimbursement
removal without payment of of necessary expenses for
Landowner in Right of appropriation 1. Right of indemnity + damages or preservation of land
Bad Faith reimbursement + 2. Right to demand removal
damages OR or demolition at builder’s
2. Absolute right of expense + damages or
removal + damages 3. Right to demand price of
land or rent, regardless if
value of land is
considerably more than
value of building or trees +
damages
) Landowner has to make a choice. If he has not yet done so, he
cannot ask for the ejectment of the builder. But if he opted to
sell the land where the value of the same is not considerably
more than the value of the house and the builder does not pay
the land, then the builder can be ejected (Ignacio v. Hilario)

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) If there was already an agreement that landowner shall ACCESSION NATURAL
appropriate the house and the price has already been 1. ALLUVIUM: soil deposited or added the lands adjoining the
determined by the court, landowner cannot back out from his banks of rivers and gradually received as an effect of the
option (Tayag v. Yuseco) current of the waters. (Art. 457)
) When from the stipulation of facts, it was clear that builder was a. Requisites:
in GF, Art. 448 shall be applicable. This involves a 34sqm portion i. Deposit of soil gradual and imperceptible
of Depra’s lot encroached upon by the kitchen portion of a ii. Cause is the current of the river
house built by Dumlao on his lot whereby the trial court iii. River must continue to exist
declared that Depra “is entitled to possess the same” (Depra v. iv. Increase must be comparatively little
Dumlao) v. Lands where accretion takes place must be adjacent
) Option is to sell and not to buy the land and the choice belongs to the banks of the river
to the landowner; no pre-emptive right to buy even as a
compromise and compulsion to sell on the part of the b. EFFECT: soil deposited belongs to the owner of the land
landowner (Sps. Benitez v. CA) adjoining the river bank where accretion took place.
) For Art. 448 to apply, the construction must be of permanent
character, attached to the soil, with an idea of perpetuity. But if c. EXCEPTION: If the alluvial deposit is acquired through
it is of a transitory character or is transferable, there is no acquisitive prescription
accession and the builder must remove the construction (Sps. i. If the water is floatable or navigable water and alluvial
Alviola v. CA) deposit is formed in the middle = government property
) Mere promise to donate the property cannot convert the ii. If the water is non-floatable or non-navigable and
builder into one in GF. At the time the improvement was built alluvial deposit is formed in the middle = owner by the
on the land, there was mere expectancy of ownership which nearest riparian owner or shared by such owners
may or may not be realized. Occupancy by petitioner was
merely tolerated hence, possession cannot be considered GF. d. Illustrative cases:
No prescription will lie against the real owners with title/TCT i. Decrease in petitioner’s land area and corresponding
(Pada v. Kilario) expansion of respondent’s property were the combined
) Builder in GF has the legal right to retain possession of the effects of erosion and accretion, respectively. All the
premises subject of the case until she is reimbursed necessary, requisites of alluvium are present (Bagaipo v. CA)
useful and incidental expenses, but limited only to the value of ii. Accretions gradually received from the effect of the
the light materials she incurred in the preservation and current of the river automatically become the property
maintenance thereof (Pesongco v.Estoya) of the riparian owner but does not preclude acquisition
) A lessee can never be a builder in good faith. of the additional area by another person through
prescription (Reynante v. CA)
iii. An island formed at the middle of a non-floatable or
navigable river belongs to the nearer riparian owner.
Preferential right is given to him because he is in a
better position to cultivate and attend to its
exploitation. However, even accretion to land titled
under Torrens system must itself be registered (Jagualing
v. CA)

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2. AVULSION: the accretion, which takes place whenever the ACCESSION WITH RESPECT TO MOVABLE PROPERTY
current of river, creek or torrent segregates from the estate on ) Adjunction: the process by virtue of which 2 movable things
its bank a known portion of land and transfer it to another belonging to different owners are united in such a way that
estate (Art. 459). they form a single object
a. Requisites: ) Mixture: combination or union of materials where the
i. Segregation or transfer caused by the current of a respective identities of the component elements are lost
creek or torrent ) Specification: the giving of a new form to another’s material
ii. Segregation or transfer must be sudden or abrupt through the application of labor
iii. Portion of the land transported is known or identified
b. EFFECT: owner of the land to which the segregated Adjunction Mixture Specification
portion belongs retain ownership thereof, provided he 1. Involves at least 1. Involves at least 1. Involves only one
removes (not merely claims) it within 2 years from such two things two things thing but form is
segregation 2. As a rule, 2. As a rule, co- changed
c. You may bring back your property within 4 years accessory ownership results 2. As a rule,
(prescription of personal property) follows the 3. The things mixed accessory follows
d. 6 months applies for uprooted trees principal may either retain the principal
3. The things or lose their 3. The new object
ABANDONED RIVER BED (Art. 461) joined retain respective retains or preserves
) It could be returned to its own course by the LGU their nature nature the nature of the
) But if not returned, then the owner who lost property due to the original object
new river will own the abandoned river beds in proportion to
the area lost. TESTS to DETERMINE WHICH is PRINCIPAL and WHICH is ACCESSORY
The principal is: (in the order of preference)
A. Requisites: 1. That to which the other has been united as an ornament, or for
a. Change in the course of river must be sudden so the old its use, or perfection (Art. 467)
river bed may be identified 2. That of greater value (Art. 468)
b. Change in the course must be more or less permanent 3. That of greater volume (Art. 468)
c. Change of the river best must be natural
d. Definite abandonment by the government Special Rule: (2nd paragraph of Art. 468)
e. River must continue to exist In painting and sculpture, writings, printed matter, engraving or
B. EFFECT: abandoned river beds belong to the owners whose lithographs, the board, metal stone, canvas, paper or parchment shall
lands are occupied by the new course in proportion to the be the accessory.
area lost; however, the owners of the lands adjoining the old
bed shall have the right to acquire the same by paying the
value thereof, which shall not exceed the value of the area
occupied by the new bed

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RULES IN ADJUNCTION (Arts. 466 to 470) RULES IN MIXTURE (Arts. 472 & 473)
Both owners 1. Accessory follows the principal Mixture caused by (1) Owner in GF, will Mixture Mixture
of principal 2. Owner of the accessory indemnified for the of BOTH OWNERS, or by made by (1) made by
and value in its unconverted state chance/accident or by Common owner in BF BOTH
accessory in 3. Respective owners may demand separation, Agent owners in BF
GF (Arts. 466 provided the things united can be separated 1. Co-ownership results: 1. He loses Both shall
to 469) without injury Each co-owner acquiring an his be
interest or right proportional to the material considered
EXCEPTION: if accessory is more precious than value of his material (in favor in GF and
the principal, owner of accessory may demand a. Mixture made by common of the shall be
its separation even though the principal may consent – stipulations of the other) governed
suffer injury parties shall be controlling 2. Liable for by Art. 472
Owner of 1. He loses all right to accessory b. Parts mixed are of same kind, damages
accessory in 2. Liable for damages quantity and quality – just
BF (Art. 470) divide the mixture into 2 equal
Owner of 1. Pay for value of accessory OR parts
principal in BF 2. Compelled to remove the accessory from the c. Mixture caused by negligence
(Art. 470) principal, even if it will destroy the principal AND of (1) – party negligent shall be
3. Liable for damages liable for damages
Bother owners Both shall be considered in GF and shall be
of principal & governed by Art. 469 Art. 474. SPECIFICATION: that which takes place when the work of a
accessory in person is done on the material of another, such material, in
BF (Art. 470) consequence of the work itself, undergoing transformation. In general,
accessory follows the principal, labor being the principal.

WORKER in Good Faith Worker in Bad Faith


1. Appropriates new thing 1. Loses the new thing (to the
2. Indemnify value of materials owner of materials) WITHOUT
Exception: materials more INDEMNITY for his labor OR
valuable than new thing 2. Pay indemnity for the value of
transformed, OWNER of the materials plus damages
MATERIALS can: Exception: if the resultant work is
a. Get new thing but more valuable for artistic or
must pay for labor scientific reasons, option of
b. Demand payment or appropriation by owner of
indemnity for the materials is NOT available (i.e.
materials painting worth P1 million for
materials worth P1,000.

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QUIETING OF TITLE (ART. 476) Illustrative cases
Whenever there is a cloud on title to RP or any interest therein, by 1. Quieting of title is proper. Sale is ineffective because no
reason of any instrument, record, claim encumbrance or proceeding authority
(PRICE) which is apparently valid or effective but is in truth and in fact a. A is owner of lot with TCT under his name
invalid, ineffective, voidable, or unenforceable, and may be b. B, son of A, orally authorized C to sell this lot
prejudicial to said title, an action may be brought to remove such c. C sold lot to D
cloud or to quiet the title. d. Deed of sale was a public instrument
e. May A bring an action to quiet title? Yes.
An action may also be brought to prevent a cloud from being cast 2. Quieting of title is proper because there is a document that
upon title to RP or any interest therein. seems to be valid
a. A is owner of lot with TCT under his name
) Only real property is involved b. B forged A’s signature and sold lot to C
) When there is title which appears to be valid but in truth and in c. Deed of sale was a public instrument where A’s signature
fact, not valid was forged by B
) When the source of obligation is already prescribed or d. C claims ownership of lot from A
extinguished (resolutory condition, etc.) e. May A bring an action to quiet title? Yes.

Nature of the action RUINOUS BULDING AND TREES IN DANGER OF FALLING (Arts. 482 – 483)
1. Quasi in rem – action in personam concerning RP or action ) Building, wall column, or any construction in danger of falling
against a person in respect of the rest (Art. 482):
2. Judgment does not extend beyond the property and o Complainant must either have:
enforceable only against defeated party and his privies ! His property adjacent to the dangerous construction OR
3. Not essential for court to acquire jurisdiction over the person of ! To pass by necessity in the immediate vicinity
defendant o Owner shall be obliged to:
4. If brought against co-owner, not res judicata with respect to ! Demolish
other co-owners ! Execute necessary work/repairs
o If owner fails to demolish or repair, administrative authority
Art. 478. There may also be an action to quiet title or remove a cloud may:
therefrom when the contract, instrument or other obligation has been ! Order demolition or
extinguished or has terminated or has been barred by extinctive ! Do necessary repairs
prescription. ! Both at the expense of the owner
o If construction falls, owner liable for damages
Who may be plaintiff?
1. 1 With legal or equitable title or interest in the RP which is the ) Large tree threatens to fall (art. 483):
subject matter of the action o Fall must be in such a way as to cause damage
2. Need not be in possession of the RP ! To the land or tenement of another or
! To travelers over a public or private road
Prescriptibility of the action: o Owner of the tree obliged to fell and remove it
1. If plaintiff in possession – imprescriptible o Failure to do so, shall be done by administrative authorities
2. Not in possession – prescriptible at his expense
a. 10 years – ordinary prescription
b. 30 years – extraordinary prescription

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CO-OWNERSHIP ) Consent of co-owners required
) Ownership of undivided thing or right belong to different persons 1. Action in ejectment (Art. 1 Co-owner
487) ) Not only against a stranger but
) Requisites: ) Includes FE, UD, accion even against a co-owner
1. Plurality of owners publiciana, accion
2. Object of ownership is a thing or right which is undivided reinvindicatoria, quieting of
3. Each co-owner’s right limited to his ideal share of the physical title, replevin
whole 2. Acts of preservation (Art. 1 Co-owner, but he must, if
488) practicable, first notify his co-
) Sources of co-ownership ) Includes expenses for owners of the necessity of repairs
1. Law – ACP in marriage preservation, maintenance ) Co-owner may not contribute
2. Contract – max of 10 years, may be renewed or necessary repairs and by RENOUNCING so much of his
3. Donation – max of 20 years taxes undivided interest = to his share
4. Chance – hidden treasure found in another’s property ) Compel contribution of of the expenses (and taxes) but:
5. Occupation other co-owners even if No such renunciation if
6. Succession or will incurred without prior prejudicial to the co-ownership
notice or knowledge
) Rights of each co-owner 3. Acts of administration (Art. Financial majority
1. Full ownership of his part – undivided interest or share in the 492) Approval by those representing the
common property I. Do not involve alteration controlling interest in the co-
2. Full ownership of fruits and benefits pertaining thereto II. Improve or embellish the ownership
3. May alienate, assign or mortgage his ideal interest or share thing
! Cannot be prevented by co-owners III. May be renewed from time Court, at the instance of any
! Even without consent of co-owners to time interested party, may order
4. Substitute another in the enjoyment of his part except when IV. Have transitory effects measures it may deem proper,
personal rights involved (i.e. house shared by female co- V. Do not give rise to a real including appointment of an
owners and 1 substitutes her part to a man, others may object) right over co-owned administrator ONLY IF:
5. Right of redemption in case the shares of all other co-owners or property a) There is NO majority
any of them are sold to a 3rd person VI. Do not affect the b) Resolution of majority is
! Period for other co-owners to exercise – 30 days from substance or nature of prejudicial to those
written notice issued by seller thing interested in the property
6. Renounce so much of his interest as may be equivalent to his 4. Acts of alteration (Art. 491) All Co-owners
share of expenses and taxes to exempt himself from said • More or less permanent Unanimous consent, express or
obligation (only to extent of co-owner’s share) • Changes the use of the implied, to make alteration valid;
7. Demand partition – imprescriptible and cannot even be barred thing but to recover expenses, express
by latches • Prejudices condition of the consent is required
thing or its enjoyment by
) Shares in Benefits and Charges (Art. 485) others Alteration w/o required Consent:
1. Share shall be proportional to their respective interests 1. Demolition can be compelled
2. Any stipulation contrary to the above is void 2. 1 responsible liable for losses
3. Interests of co-owners shall be presumed equal unless contrary and damages
is proved 3. Benefits to the co-ownership

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) ACQUISTION BY PRESCRIPTION ) Termination of co-ownership
1. Gen rule: No co-owner can acquire whole property by 1. Consolidation or merger in only 1 of co-owners of all the interest
prescription of others – buy out interests of other co-owners
a. Exception: repudiation by co-ownership. Requisites: 2. Destruction or loss of property co-owned
i. He must make known to other co-owners that he is 3. Acquisitive prescription in favor of a 3rd person or co-owner
repudiating ownership and claiming full and absolute who repudiated co--ownership
ownership over entire property 4. Partition
ii. Evidence of repudiation and knowledge on the part of 5. Termination of period
the others must be clear and convincing a. That agreed upon by the parties
iii. Open, continuous, public, peaceful, adverse possession b. That imposed by donor or testator
for the period of time required under the law c. That allowed by law
1. 10 years with good faith and just title i. 10 years for contractual
2. 30 years without ii. 20 years for testacy
iv. Period of prescription starts from such repudiation 6. Sale of co-owners of thing to a 3rd person and distribution of
proceeds among them
) Partition (Art. 494)
1. A co-owner can demand partition at any time, in so far as his Illustrative cases
share is concerned ) A co-owner has full ownership of his pro-indiviso share in the co-
2. Action imprescriptible; cannot be barred by latches, absent a owned property and has the right to alienate, assign or mortgage
repudiation of the co-ownership by a co-owner it and substitute another person in its enjoyment (Del Campo v. CA)
3. No partition if: ) There is co-ownership whenever the ownership of an undivided
a. Prohibited by agreement for a max of 10 years, may be thing or right belongs to different persons. There is no co-ownership
extended after original period has prescribed, each must when the different portions owned by different people are already
not exceed 10 years concretely determined and separately identifiable, even if not
b. Prohibited by testator or donor for a max period of 20 years technically described. The right of legal pre-emption or
c. Prohibited by law redemption is no longer available. (Sps. Si v. CA)
d. Legal nature of common property does not allow partition –
party wall
e. Physical partition would render property unserviceable for
intended use – car owned by 3 co-owners cannot effect
physical partition – resort to legal partition

) Legal partition (Art. 498)


1. Resorted to when thing is essentially indivisible
2. Procedure:
a. Give whole to 1 who will indemnify others
b. If not agreed upon, private or public sale, proceeds of
which to be divided among co-owners

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POSSESSION • Upon partition, owner is deemed owner not at the time of
1. Holding of a thing partition but at the time co-possession lasted
2. Enjoyment of a right
) Doctrine of Constructive possession
) Classes of possession o Possession in the eyes of the law does not mean that a man
1. In one’s own name or in name of another has to have his feet on every sq, of ground before it can be
2. In the concept of the owner, or in the concept of a holder, or said that he is in possession
in the concept of both the owner and the holder o No acquisition of possession
3. In good faith or in bad faith 1. Through force or intimidation, as long as possessor
objects thereto (Art. 536)
) Presumptions regarding possession – can be rebutted 2. Art. 537
1. Possession is in good faith (Art. 527) 1. Through mere tolerance
2. Possession continues in the same character in which it was 2. Through clandestine, secret possession
acquired until the contrary is proved (Art. 529) 3. By violence
3. Art. 533
a. In case of acceptance of inheritance, possession is Effects of Art. 537:
deemed transmitted to the heir without interruption and a. Intruder does not acquire possession, even by prescription
from the moment of death of decedent b. Legal possessor, even if physically ousted, still retain
b. In case of repudiation, heir is presumed to have never possession and still entitled to:
possessed the same i. Benefits of prescription
4. One who recovers according to law, possession of property ii. Fruits
unjustly lost, shall be deemed for all purposes, which may
redound to his benefit, to have enjoyed the property without ) Rules regarding possession as a fact (Art. 538)
any interruption (Art. 561) – benefit of prescription o Gen rule: cannot be recognized at the same time in 2 different
! If not in possession, prescription personalities
• Movable – 4 years with good faith and just title; 8 years ! Exception
without • Co-possessors
• Immovable – 10 years with good faith and just title; 30 • Possession in different concepts or degrees
years without o In case of conflict or dispute regarding possession
5. Possessor in the concept of an owner has just title and he ! Present possessor shall be preferred
cannot be obliged to show or prove it (Art. 541) ! If both are present, the 1 longer in possession – take note of
6. Present possessor who was also possessor at some other time time
held possession also during the intervening period, in the ! If both possessed almost at the same time, the 1 who
absence of proof to contrary (Art. 554) presents or has title – not limited to the document only but
7. Possession of RP presumes that of the movables therein, so long any juridical act that allows him to possess the property has
as it is not proved that they should be excluded – presumed a better right to possess
owner of everything found therein (Art. 542) ! If both presents a title, the court will determine and the
8. Each of the participants of thing possessed in common shall be property will be placed in judicial deposit
deemed to have exclusively possessed the part allotted to him
upon the division thereof, for the entire period during which co-
possession lasted (Art. 543)

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) Possession of movables acquired in GF or BF (Art. 559) USUFRUCT
Possession of movable acquired in GF Possession of
movable Usufruct gives a right to enjoy the property of another with the
acquired in BF obligation of preserving its form and substance unless the title
1. Equivalent to title 1. Not equivalent constituting it or the law otherwise provides. (Art. 562)
to title
2. Owner may recover Unlawful FORMULA:
a. If he lost the same OR deprivation Naked ownership " right to dispose
b. He has been unlawfully deprived includes all cases +
Exception: possess or acquired the movable in of taking which Usufruct " right to use and right to the fruits
good faith at a public sale hence, owner must constitute a Full ownership
REIMBURSE the price paid by possessor criminal offense
3. Owner CANNOT RECOVER, even if he offers (Anti-Fencing) Reason for conserving form and substance of the usufructuary:
reimbursement if: 1. Prevent extraordinary exploitation
a. Owner is precluded by his conduct, from 2. Prevent abuse which is frequent
denying the seller’s authority to sell 3. Prevent impairment
b. Sale is sanctioned by statutory or judicial
authority Obligations of the Usufructuary:
c. Sale is made at merchant’s store, fairs or Before:
markets 1. Make an inventory – to assess the condition of the real and
d. Possessor obtained movable because he movable property
was an IPV and holder of a negotiable 2. Give a security or bond (usually in money or property, but if so
document of title to the goods poor, and cannot give bond, then “caucion juratoria”
e. Recovery is no longer possible because
of prescription During:
1. Take care of the property with the diligence of a good father
) Private sale between snatcher and buyer in good faith – no of a family
reimbursement of buyer’s purchase price by the owner 2. Make ordinary/necessary repairs
) Acquired in public sale by buyer in good faith – reimburse 3. Notify owner of urgent extra-ordinary repairs (if not done by the
) Possession by tolerance does not ripen into ownership. A make-shift owner, then may be done by usufructuary, may ask for
shanty on 12k sq/m. lot lends support to respondent’s claim that reimbursement)
petitioner’s presence on the property was merely tolerated and 4. Notify owner of any prejudicial act committed by 3rd persons
not in the concept of an owner. It does not create a permanent
and indefeasible right of possession that can ripen to ownership After:
(Tabuso v. CA) 1. Return the object unless there is right of retention (If not yet
) Possession as a fact cannot be recognized at the same time in 2 reimbursed)
different personalities except in cases of co-possession. Possession 2. Indemnify owner for any loss due to his fault or negligence
passed from vendor Giger to Mercado by virtue of 1st sale a retro.
The later sale to Wong failed to pass possession of property Caucion Juratoria – is a sworn duty to take good care of the property
because there is an impediment – possession earlier exercised by and return the same at the end of the usufruct; takes the place of the
Mercado (Wong v. Carpio) bond or security and is based on necessity and humanity.

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Requisites: (Caucion Juratoria) EASEMENT
1. Proper court petition
2. Necessity for delivery of: Easement – is an encumbrance imposed upon an immovable for the
a. Furniture or house for use by usufructuary and his family or benefit of another immovable belonging to a different owner or for the
b. Implements, tools or other movables for a vocation or benefit of a community or one or more persons to whom the
industry in which he is engaged encumbered estate does not belong by virtue of which the owner is
3. Approval of the court obliged to abstain from doing or to permit a certain thing to be done
4. Sworn promise on his estate. (Art. 613/614)
5. BUT you cannot alienate/lease for this means that he doesn’t
need them Characteristics of Easement:
1. A real right – enforceable against the whole world
Extinguishment of Usufruct: 2. Imposed on a real property only
4. Death of usufructuary 3. Imposable only on another’s property
5. Expiration of the period for which it was constituted 4. Involves two neighboring estates, the dominant and the
6. Fulfillment of any resolutory condition provided in the title servient estates
creating the usufruct 5. A limitation or encumbrance on the servient estate for
) Merger of usufruct and ownership in the same person another’s benefit
) Renunciation of the usufructuary 6. A right limited by the needs of the dominant estate
) Total loss of the thing in usufruct 7. Inherent from the servient estate as such
) Termination of the right of the person constituting the usufruct 8. Inseparable from the servient estate
) Prescription 9. Non-possessory (servient estate remains the owner, only the USE
of the easement)
10. Indivisible
11. Intransmissible
12. Perpetual (remains unless extinguished)

2 kinds of easements: (There is payment of indemnity in both kinds)


1. Voluntary – agreement by the parties
2. Legal – constituted by law

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Modes of Acquiring Easements (620-623) Kinds of Easements

MODES OF ACQUIRING EASEMENTS (Arts. 620-623) 1. EASEMENT OF RIGHT OF WAY (649-657): by which one person or a
A. Continuous (use is incessant, 1. by Title particular class of persons is allowed to pass over another’s land,
it does not depend on acts a. does not necessarily mean usually thru one particular path or line.
of men) and Apparent (when document
there is a visible sign of the b. it means a juridical act or A. Requisites (Art. 649 – all must be present)
easement) law sufficient to create the 1. Property (dominant) is surrounded by other estates
encumbrance (i.e. law, 2. No adequate outlet to a public highway
1. EXAMPLES: donation, will, contract) 3. Absolute necessary for use or cultivation of the enclosed
a. Easement of aqueduct 2. by PRESCRIPTION – TEN YEARS estate of the claimant
b. Easement of light and a. Positive – computed from 4. Isolation not due to claimant’s own act
view the day the dominant 5. Established at the point least prejudicial to the servient
i. Positive, when owner commenced to estate
made: (Prescription – exercise the easement 6. Claimant must be the owner or one with a real right thereto
from the time of the upon the servient estate 7. Payment of the proper indemnity (if permanent, damages
opening of the b. Negative – computed + value of real property, if temporary, only damages)
window/wall) from the day notarial
1. On one’s own prohibition (made by the B. Amount of Indemnity
wall extending dominant estate owner) 1. If passage is permanent – value of the land + amount of
over another’s was made on the servient damage caused to servient estate
property OR estate 2. If passage is temporary – amount of damage caused to
2. On a party wall servient estate
ii. Negative, when
made: C. Extinguishment of the Easement of Right of Way
1. On one’s own 1. Opening of a new road
wall which does 2. Joining the dominant estate to another which abuts, and
not extend over therefore, has access to the public highway
another’s 3. Such new access adequate and convenient to the
property dominant estate

MODES OF ACQUIRING EASEMENTS (Arts. 624) SPS. SALIMBAGON vs. SPS TAN Jan 21, 2010
Q: What is the effect if the servient estate owners in an easement of right of
B. Discontinuous and Apparent By title only, never by
way later become the dominant estate owners?
C. Continuous and Non- prescription
A: The easement is extinguished by operation of law. The existence of a
Apparent dominant estate and a servient estate is incompatible with the idea that both
D. Discontinuous and Non- estates belong to a single person.
Apparent
DICHOSO, JR. et al. vs. PATROCINIO MARCOS
Q: May petitioners who were already granted a ROW by another landowner
still compel respondent to grant them a ROW contending that the alternative
route given to them was longer and circuitious?

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A: Adequacy is what is allowed, not convenience. If you were already given a *Fruits NATURALLY falling upon adjacent land belong to the owner of
ROW by another person, you cannot compel another person to grant you a said land.
ROW. (Adequacy never convenience)
3. EASEMENT OF LATERAL AND SUBJACENT SUPPORT
Quintanilla vs. Abangan & Daryl’s Collection
Held: The criterion of least prejudice to the servient estate must prevail over the
criterion of shortest distance. Mere convenience of the dominant estate is a. Restrictions:
NEVER the criterion to grant the legal easement of right of way, provided you 1. No excavation upon one’s own land may be made to
already have an outlet to the highway. (Least prejudice to the servient estate) deprive adjacent land or building of sufficient lateral and
subjacent support (Art. 684)
Abellana v. CA 2. Any stipulation or testamentary provision allowing
Use of footpath is apparent but not continuous, it cannot be acquired by excavation that cause danger to an adjacent land or
prescription; subdivision can be enclosed and fenced with one or few points building shall be void (Art. 685)
for security and privacy.
3. Legal easement of lateral and subjacent support not only
for present but also for future constructions that may be
1. EASEMENT OF PARTY WALL (658-666): wall at the dividing line of erected. (Art. 686)
estates. 4. Any excavation contemplated requires notification of all
A. Presumption: Party wall owners of adjacent lands. (Art. 687)
B. Co-Ownership governs the party wall.
Castro v. Monsod:
2. EASEMENT OF LIGHT AND VIEW (667-673) ) Issue: WON the easement of lateral and subjacent support exists on
General Rule: No part owner may, without the consent of the others, the subject adjacent properties and if it does, whether the same may
open through the party wall any window or aperture of any kind (Art. be annotated at the back of the title of the servient estate
667) ) There was an existence of a lateral and subjacent support. A
permanent injunction on the part of the petitioner from making
Period of Prescription for Acquisition Thereof (Art. 668) injurious excavations is necessary in order to protect R’s interest.
However, an annotation of the existence of the lateral and subjacent
! If thru a party wall – 10 years from the time of opening of the
support is no longer necessary. It exists W/N it is annotated in the RP.
window. The mere injunction is enough, it may be used by the dominant owner
! If thru a wall on the dominant estate – 10 years from the time of and will bind the present and any subsequent successors in interest of
notarial prohibition. the servient estate.

*Planting of Trees (Art. 679) Modes of Extinguishment of Easements: (Art. 631)


) General Rule: No planting near tenement or land of another ) Merger in the same person of the ownership of the dominant
) Exception: at a distance authorized by ordinance or customs of and servient estates
the place or in the absence thereof: ) Non-user for 10 years
a. For tall trees – 2 meters from boundary line to center of the ) Either or both of the estates fall into such condition that the
tree. easement cannot be used (Impossibility of use)
b. For small trees and shrubs – 50 cms. From boundary line to ) Expiration of the term if easement is temporary
center of tree/shrub ) Fulfillment of the condition if easement is conditional
) Renunciation of the owner of the dominant estate
Intrusions/Extensions of Branches and Roots (Art. 680) ) Redemption agreed upon between the dominant and servient
1. For branches – adjacent owner has the right to demand that owners
they be cut off by the owner of the tree
2. For roots – he may cut them off himself.
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NUISANCE Remedies:
Nuisance – (Art. 694) – any act omission, establishment, business, 1. Civil Action
condition of property or anything else which: 2. Extrajudicial Abatement
1. Injures or endanger the health or safety of others c. Mixed – that which affects public rights while producing special
2. Annoys or offends the senses injury to private rights.
3. Shocks, defies, or disregards decency or morality
4. Obstructs or interferes with the free passage of any public 2. According to its nature
highway or street or any body of water a. Nuisance per se
5. Hinders or impairs the use of property b. Nuisance per accidents
PER SE PER ACCIDENS
Classification of Nuisance (695) i. Nuisance at all times and 1. By reason of circumstances,
1. According to scope/extent of its injurious effects: under any circumstances, location, or surroundings
a. Public – one which affects a community or neighborhood or regardless of location or 2. Proof of manner of its
any considerable number of persons although the extent of surroundings conduct, or act, its
annoyance, danger or damage upon individuals may be ii. Proof of its existence is consequences and other like
unequal. sufficient circumstances, is necessary
a. Remedies: iii. May be summarily abated 3. Reasonable notice and
1. Criminal Prosecution under the RPC or any local under the defined law of hearing on WON in law, it
ordinance necessity constitutes a nuisance
2. Civil action – by the: *Rabid dog is a nuisance per se and can be summarily abated under
a. GR: city or municipal mayor the undefined law of necessity. (A NUISANCE PER SE AFFECTS the
b. Exception: private person if specially injurious to immediate safety of persons and property and may be summarily
himself (need to prove you are specially injured) abated under the undefined law of necessity)
3. Extrajudicial settlement
a. District Health Officer (DHO) determines if it is best Gancayco v. City Govt of QC
remedy Q: In 2003, MMDA demolished the “wing walls” of Justice Gancayco’s
b. Private person provided (Art. 704/703) building constructed on his 375 sq/m lot in EDSA, claiming it to be a
i. Nuisance specially injurious to himself nuisance per se, alleging violation of the Bldg. Code and QC
ii. Demand is first made upon owner or possessor of Ordinance No. 2905. Are the wing walls nuisance per se?
property to abate the nuisance A: The MMDA does not have the power to declare a thing a nuisance.
iii. Demand was rejected Only courts of law have the power to determine whether a thing is a
iv. Abatement be approved by the DHO and nuisance.
executed with the assistance of local police
v. Removing or if necessary, destroying without Doctrine of Attractive Nuisance - One who maintains in his premises
committing a breach of the peace or doing dangerous instrumentalities or appliances of a character likely to
unnecessary injury attract children to play and who fails to exercise ordinary care to
vi. Value of destruction does not exceed P3,000.00 prevent children from playing therewith or resorting thereto is liable to
# Remedies are cumulative NOT exclusive a child of tender years who is injured thereby, even if the child is
# All remedies may be availed of by public officers but a technically a trespasser in the premises. Doctrine does not apply to
private person may avail of the last two remedies only bodies of water, artificial or natural (including swimming pools), in the
b. Private – one which affects only private rights or produces absence of some unusual condition or artificial feature other than the
damage to one or a few persons mere water and its location (i.e. slides attached to the pool)

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DONATION includes: B. In writing if value exceeds P5,000
1. An act of liberality whereby a person disposes gratuitously of a A. Acceptance in writing
thing or right in favor of another, who accepts it – SIMPLE B. Donation in writing
2. Giving to another a thing or right on account of the latter’s merits
or of the service rendered by him to the donor, provided they do 2. IMMOVABLE/REAL PROPERTY – donation must be in a public
not constitute a demandable debt (Art. 726) - REMUNERATORY instrument (Art. 749)
3. Giving to another, a thing or right and imposes upon the donee a ! Public instrument specifying (STEP 1)
burden which is less than the value of the thing given – MODAL OR 1. Property donated – where, area, tct no. & technical
CONDITIONAL description
a. If burden is equivalent or more valuable, ONEROUS contract – 2. Burden or charges, if any – to determine whether onerous
governed by law on contracts, not law on donation. or not (to determine governing law)
! Acceptance in same public instrument (STEP 2)
*In inter vivos donations, it is not the acceptance of the donee that ) Same public instrument – immediately there is a perfected
perfects the donation, but the knowledge of the donor of the contract (donor need no longer go to step 3)
acceptance by the donee. ! Separate public instrument (STEP 3)
b. If in a separate document, donor shall be notified thereof in
Requisites of a Valid Donation: (CIDAF) an authentic form and this step shall be noted in both
1. Donor’s capacity to make the donation of a thing or right instruments.
2. Donative intent
3. Delivery, actual or constructive Donation Mortis Causa – follow the formalities of a will
a. Tradicion Symbolica
b. Tradicion Longa manu
c. Tradicion Constitutum possessorium
d. Tradicion Brevi manu
4. Acceptance or consent of the donee
5. Compliance with formalities prescribed by law

Essential Characteristics of a Donation:


1. Consent, subject matter, cause (just as in other contracts)
2. Personal act of the donor himself
3. Necessary Form
4. Consent/acceptance by donee during donor’s lifetime
5. Irrevocability, except for legal causes
6. Intent to benefit the donee (animo donandi)
7. Resultant decrease in the patrimony of the donor

Donation Inter Vivos


1. PERSONAL/MOVABLE PROPERTY – Orally or in writing (Art. 748)
A. Orally
1. Simultaneous delivery of thing donated or evidence
representing or showing the right donated

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DISTINCTIONS between Inter Vivos and Mortis Causa *Donation generally cannot be revoked once accepted by the
INTER VIVOS MORTIS CAUSA/ donee, except when: (Donation inter vivos)
SUCCESSION
1. Takes effect during lifetime of 1. Takes effect upon Grounds for Revocation: (Art.760) Period to revoke:
donor death of donor – – may be done by the donor or
2. Made out of donor’s pure testator the heirs of the donor
generosity 2. Made in contemplation BAR (birth, adoption, re- Within 4 yrs. of BAR of the first
3. Valid even if donor survives the of death without appearance) of first child of child
donee intention to dispose in donor
4. Must follow formalities of donation case of survival Non-fulfillment of any of the Within 4 yrs. from non-
5. Must be accepted by donee 3. Void should donor conditions included in the deed of compliance of the conditions
during lifetime of donor – very survive the donee and donation
good evidence that it is a donee must be alive or Ingratitude of the donee Within 1 year from knowledge of
donation inter vivos at least conceived at ingratitude
6. Cannot be revoked once the time of the opening
accepted by donee except for of succession as he *BUT, a donation mortis causa/will is essentially revocable during the
grounds provided by law. Donor or cannot inherit if he is lifetime of the testator.
heirs dead unless there is a
1. Birth, adoption, reappearance right of representation *Generally the right to dispose is given to the donee, because when
of first child of donor (BAR) – 4. Must follow formalities there is acceptance by the donee, the donor loses ownership over the
within 4 yrs. from BAR of the 1st of a will property – reason why there is a need to understand distinction
child of donor 5. Can only be accepted between (donation inter vivos/mortis causa) – if property donated
2. Non-fulfillment of any of the after donor’s death already and later same property is sold - if donation inter vivos, donor
conditions included in the 6. Always revocable no longer the owner of the property, thus the sale is void; if donation
deed – within 4 yrs. From non- before donor’s death mortis causa, donor retains ownership until he dies, therefore the sale
fulfillment 7. Right to dispose is of the same property is valid.
3. Ingratitude of done – 1 yr. from retained by the donor
knowledge or discovery of while still alive *Donation inter vivos is preferred in case of the impairment of the
ingratitude 8. Not so preferred, legitime of compulsory heirs, the one that should be reduced at once
7. Generally, right to dispose is hence reduced first in are donations mortis causa (legacies/devisees/institution of heirs), but
conveyed to the donee case legitime is if there is still impairment of legitime, then you can reduce donation
8. Preferred in case of impairment of impaired inter vivos.
legitime
*After applying all these (above), but there is still doubt in your mind
using the distinguishing features, it should be considered donation inter
vivos, because we do not want the ownership of the property to be at
limbo, at doubt, we want an owner (the donee after the acceptance
and the knowledge of the donor of the acceptance)

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VOID DONATIONS (Art. 739) Ground For Reduction
1. Between persons guilty of adultery or concubinage at the time 1. Failure of donor to reserve sufficient means to support himself or
of the donation dependent relatives – anytime during lifetime of donor
2. Between persons found guilty of the same criminal offense, in 2. Failure of donor to reserve sufficient property to pay off existing
consideration thereof debts (debts must already be existing at the time of donation)
3. Made to a public officer or his wife, ascendants and – within 4 years from perfection of donation (may be done by
descendants by reason of his office the creditor by going to court and ask for the reduction of the
4. Between spouses, during their marriage, or that made to the donation)
person of whom the other spouse is a presumptive heir, except 3. Inofficiousness of the donation (exceeded free portion or
moderate gifts (Art. 87 FC) impaired their legitime) - within 5 years after the death of the
a. Also those having common-law relationship. Otherwise, donor only by the compulsory heirs
they will be placed in a better situation. 4. BAR of the first child (why 1st child only: because had the donor
known that there will be the birth of his 1st child, or he would be
Rules on Acceptance of Donation: adopting a child, or reappearance of the child, he would not
1. Minors and others who cannot enter into a contract may have donated any of his property that would lessen his
become donees, acceptance to be made through their patrimony or resources) – within 4 years of BAR of the first child
parents or legal representatives (Art. 741).
2. Donations to conceived and unborn children may be Acts Of Ingratitude (765)
accepted by those persons who would legally represent them 1. If the donee should commit some offense against the person,
if they were already born (Art. 742). the honor or the property of the donor or of his wife or children
3. Donations to incapacitated persons (incapacitated persons under his parental care.
meaning those that are enumerated and prohibited by Art. 2. If donee imputes to the donor any criminal offense or any act
739) shall be void, though simulated under the guise of another involving moral turpitude, even though he should prove it,
contract or through intermediaries (Art. 743) unless the crime or the act has been committed against the
4. Donee must accept the donation personally or through an donee himself, his wife or children under his authority.
authorized person with a special power for the purpose, or with 3. If donee unduly refuses him support when the donee is legally
a general and sufficient power, otherwise, donation shall be or morally bound to give support to the donor.
void (Art. 745).
5. Acceptance must be made DURING the lifetime of the donor Villanueva v. Branoco
AND of the donee (Art. 746). ) Rodrigo owned a parcel of land. He sold to Vere in 1970 and donated
to Rodriguez in 1965. Vere sold to Villanueava in 1971, Rodrigues sold
to Brancoo in 1983. Villanueva contends that the sale to him was
*Donation inter vivos must follow the formalities of a valid donation
earlier so he has a better right. Branoco contends that Rodriguez has a
*Donation mortis causa must follow the formalities of a will better right because he was given the property earlier.
) Donation to Rodriguez was to take effect after death with condition
Grounds For Revocation Of Donation (760) that if donee predeceases, it will be inherited by the heirs of the done
A. Birth, adoption, re-appearance of a child (BAR) (within 4 years) (Irrevocable). But there was an acceptance and that the donee will
B. Non-fulfillment of a resolutory condition imposed by the donor give ½ of its produce to the donor during their lifetime. – DONATION
(within 4 years) INTER VIVOS
C. Ingratitude of donee (within 1 year from knowledge) ) Since it is a donation inter vivos, the ownership is already with the
donee and the sale to Vere is null and void.

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Sps. Sicad v. CA
) Deed of donation inter vivos – to grandchildren after 10 yrs after
death, who cannot sell within 10yrs after his death. Accepted by
donees
) However, donor was the one holding title and exercised full rights of
ownership. She sold it to Sps. Sicad after the donation. Donees
contend that since it is a donation IV, sale is void. Buyer contends it is
a Donation MC.
) DONATION MORTIS CAUSA but void because it did not follow
formalities of the will. Can be sold.

Lagazo v. CA
) Deed of donation (1985). But he did not possess the house and lot
donated to him. When he went to the house, there was a possessor
with a deed of assignment.
) Since no acceptance by donee informed to donor, only done in 1990.
Thus, donation was never valid and not perfected. Possessor has a
better right.

Del Rosario v. Ferrer


) Sps. Leopoldo and Guadalupe executed a joint deed of donation MC
– to 3 heirs (Asuncion, Emiliano, Zoilo). 1 died already (Zoilo). Jarabini
and Emiliano can continue possessing the portion they are now
occupying
) Guadalupe died in 1968. After, Leopoldo executed a deed of
assignment in favor of one of the remaining 2 heirs, Asuncion after
death of Guadalupe.
) Zoilo’s heir, Jarabini, submitted the deed of donation MC for probate
) It is a donation inter vivos – title is not controlling
o Acceptance clause
o Ownership vested already with the heirs
o Irrevocable by nature

Roman Catholic Archbishop v CA


) Donation of land was subject to a condition that it should not be sold
within 100 years from the execution of the deed of donation, violation
of which would render it null and void- null and void condition

Tamayo v. Tamayo
The right to bring an action for the revocation or reduction of an inofficious
donation prescribes after 5 yrs from the death of the donor.

Arcaba v. Tabancura
Donation to common law wife. VOID donation. Cohabitation does not require
sex but merely openly deporting as H&W

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WILLS and SUCCESSION: (No money or property shall be left stagnant) 2. Voluntary heirs – those that are instituted by the testator
– inherits from the disposable free portion of the testator
Art. 774. Succession is a mode of acquisition by virtue of which the iv. Legatee (LP) – only exists with a will – gets a specific,
property, rights and obligations to the extent of the value of the individualized and specifically mentioned PERSONAL
inheritance, of a person are transmitted through his death to another property in the will.
or others either by his will or by operation of law. v. Devisee (DR) – only exists with a will – gets a specific,
individualized and specifically mentioned REAL property in
1. Elements: the will.
a. Mode of Acquisition – at the moment of death the heirs d. Transferred through death
already have successional rights e. Either by will, no will, partly through will and partly by operation
i. Derivative of law (testate, intestate, mixed succession)
1. Donation inter vivos 2. Terms
2. Donation mortis causa a. Decedent/Testator
3. Tradition or Delivery b. Heir/Legatee/Devisee
4. Prescription c. Property
ii. Original d. Rights
1. Occupation e. Obligations - estate is the one required to pay the obligations
2. Intellectual creation of the decedent
b. Transmissible Property – not all property are transmissible (within
the commerce of man) Art. 777. Transmission of Successional Rights – at the moment of death
i. Art. 793 (Testamentary Succession): Only those property Elements:
which are owned and possessed by the testator at the time 1. Death – cessation of life
of the making of the will shall pass to the heirs/legatees/ a. Presumptive Death (it may be rebutted by stronger evidence –
devisees, EXCEPTION: if it is expressly stated in the will that reappearance of absentee – may recover all that was given
even the after-acquired properties shall be given to the away through succession, only in the condition when they were
heirs/legatees/devisees shall be respected found, EXCLUDING rent, fruits, etc. – if property sold, may only
ii. Rights which may not be transmitted – marital rights; right of recover price that is intact with the heir, legatee or devisee)
acknowledgement; right to support; right to public/private i. Ordinary – 10 years
office (personal rights) ii. Extraordinary – 4 years
iii. Rights which may be transmitted – right to enforce the iii. Ordinary Absence, but already 75 years old – 5 years
execution of the document (provided the document is 2. Property rights and obligations must be transmissible
valid and enforceable); right to continue on a lease 3. Existence (Heir/Legatee/Devisee must be alive or conceived at the
contract provided there is no express prohibition in the moment of death of the decedent/testator (Art. 40/41),
lease contract; action for ejection capacitated at the time of succession), Willingness (Must not
c. Transfer from one person to another repudiate the inheritance, cannot be compelled to accept the
i. Decedent – intestate inheritance) and Capacity [Incapable of inheriting:
ii. Testator – testate 1027/1028(lover, paramour, concubine) and 1032 (unworthiness)]
iii. Heir – with or without will to inherit – may not be required to accept the inheritance,
1. Compulsory heirs – those that inherit the legitime – however, renunciation of future inheritance is VOID – may
inherits the entire inheritance (when he is the sole heir) renounce only when succession opens
or aliquot portion (when there are other heirs)

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Ferrer vs. Sps. Diaz (April 23, 2010) • Revocable or ambulatory – at any given time during the
Issues: lifetime of the testator, there must be an OVERT ACT done by
• Is a waiver of hereditary rights in favor of another person the testator himself
executed by a future heir while the parents are still alive valid? • Vitiated consent is absent (fraud, mistake, intimidation, under
NO, parents are still alive. and improper influence) – even if such situations makes
• Is an adverse claim annotated on the title of a lot based on contracts merely “voidable,” wills are an exception because it
such waiver likewise valid and effective as to bind the will make the will VOID AB INITIO.
subsequent owners and hold them liable to the claimant? NO, • Individual (exception to lex loci celebrationis)
if the root is not valid, the fruit is also not valid. **[Joint wills may only be allowed to 2 or more foreign testators,
executed in a foreign country allowing joint wills] (if executed
In Re Petition for Probate of Last Will and Testament of Basilio Santiago here (whether made by Filipino or Alien, it is not allowed being
(August 9, 2010) against public policy)
• Succession is a mode of acquisition of property NOT mere • Disposes of testator’s estate to a certain extent – there is a
administration of property. limitation reserved by the law with the compulsory heirs
• 3 Reasons for the Law of Succession: (legitime)
o Natural law – we want the relatives who are entitled to Ways on how to distribute/dispose:
inherit to get the properties after the death of the original o First to be given is the legitime
owner. (Family relations – you want your own immediate o Inter vivos donation – will be respected unless there is
family to own the property after you die) impairment of the legitime
o Socio-Economic View – we do not want any property to be o Legacies or Devices
left inactive or stagnant after the death of the original o Share of instituted heir
owner – another owner will come into the picture, the heirs
will now be the owner (not only for administrative purposes) Reyes et al. vs. CA (October 30, 1997)
o Attribute of Ownership – the original owner who has already • There is a presumption that a man and a woman deporting
died, therefore, he will be the one to dispose his own themselves to be man and wife in a community are considered
property, by executing a valid will. to have validly entered into the contract of marriage.
• A will is the testator speaking after death, its provisions
Art. 783. WILLS – codal definition (SUSACPERVID) essentially have the same force and effect as if the testator
• Statutory right (given by the Civil Code) stood before the probate court in full life and said that, this is
• Unilateral act of the testator my will, for as long as my will is extrinsically valid, follow my will.
• Solemn/Formal (Notarial 804-806, 807, 808) (Holographic Will • Probate court – limited to:
(810, 812-814) o Determination of the extrinsic validity (formalities and
• Animus testandi (intention to make the will your last will and solemnities, capacity of the testator) of the will.
testament AT THE TIME OF THE MAKING OF THE WILL) o After such positive determination, go and distribute the
• Capacitated (legal age, soundness of the mind – tested at the estate in accordance with the provision of the will (all
time of the making of the will) doubts must be resolved in favor of the testator having
• Personal act of the testator (may not be delegated, except if meant what he said and saying what he meant)
there is a provision on the will given to a specific class/cause • For as long as the will is extrinsically valid, we shall follow the will.
wherein the determination of the share given may be
delegated to a 3rd party)
• Effective mortis causa

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Nepomuceno vs. CA (October 9, 1985) Additional Rules:
• Provision giving the free portion to the testator’s paramour is • Articles 815-819
invalid and void ab initio. o Art. 815 – when a Filipino is in a foreign country, he is
• Even if the will is extrinsically valid, the open admission of the authorized to make a will in any of the formalities
illicit relationship invalidates the provision given to the established by the law of the country in which he may be.
paramour) o Art 816 – the will of an alien who is abroad produces effect
in the RP if made with the formalities prescribed by the law
Art. 789. Patent Ambiguity – apparent on the face of the will – you of the place in which he resides, or according to the
cannot give the properties in the will (i.e “I give to some of my relatives formalities observed in his country, or in conformity with
some of my properties”) those which this Code prescribes.
o Art. 817 – A will made in the RP by a citizen or subject of
Art. 789. Latent Ambiguity - (i.e. “I give my son my green Honda car – another country, which is executed in accordance with the
ambiguity – there are 3 sons or there is a green Toyota, not a Honda) law of the country of which he is a citizen or subject, and
*PAROLE EVIDENCE cannot cure this DEFECT. which might be proved and allowed by the law of his own
country, shall have the same effect as if executed
Art. 793. After- Acquired Property according to the laws of the RP.
Q: In 2000, T made a will stating, “I give all my cars to X.” In 2000, T had o Art. 818 – Two or more persons cannot make a will jointly, or
5 cars. In 2003 when T died, T already had 10 cars. How many cars will in the same instrument, either for their reciprocal benefit or
X get? for the benefit of a third person.
A: Gen. Rule: Only 5 cars, because the testator’s intent is only to give o Art. 819 – Wills, prohibited by the preceding article (joint
what he has. wills), executed by Filipinos in a foreign country shall not be
Exception: If there is an express statement stating that after-acquired valid in the RP, even though authorized by the laws of the
properties are included. country where they may have been executed.

Art. 795. Extrinsic validity of Wills (As to time) – the law that will govern Intrinsic Validity – Distribution of the estate of the decedent/testator
the extrinsic validity of the will is the one ruling at the time the will was • As to place: Article 16 (2) Civil Code – Intestate and
executed. testamentary succession shall be regulated by the national law
of the person whose succession is under consideration,
Enriquez vs. Abadia (95 Phil 627) whatever may be the nature of the property and regardless of
• Holographic wills executed before August 30, 1950 is INVALID the country wherein said property may be found.
because it was not allowed by law, even if such will is brought o Matters regulated:
to probate after August 30, 1950. ! Order of succession
! Amount of successional rights
Extrinsic validity of Wills (As to place) ! Intrinsic validity of testamentary provisions in the will
General Rule: • Additional Rule: Article 1039 Civil Code – Legal capacity of the
Art. 17 (1) Civil Code – Lex loci celebrationis or law of the place of heir to succeed is governed by the law of the nation of the
execution decedent.

Exception:
• Art 17 (2) – Embassy/Consulate is the extension of the Philippine
territory, thus must follow Philippine formalities.
• Joint wills (NOT ALLOWED IN THE PHILIPPINES)

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Bellis vs. Bellis 20 SCRA 358 (National law of the decedent) bound to give effect to the wishes of the testator to distribute his estate in the
manner provided in his will so long as it is legally tenable)
Aznar vs. Garcia 7 SCRA 95 (Renvoi Doctrine – “refer back”)
Art. 800/801. Sanity/Supervening Capacity – tested at the time of the
Miciano vs. Brimo 50 SCRA 867 (Foreign laws must be proven as a fact, making of the will
otherwise doctrine of processual presumption)
Arts. 804/805/806 Formalities of a Notarial Will
Llorente vs. CA (Nov.23, 2000) (Remand to RTC to determine which law will
govern, there are many states in the US, it was not proven except that he was *Oral will – not a valid will, but may be followed if all the heirs are
a US citizen) present and there are no objections from any of the compulsory heirs
that are entitled to inherit
Dorotheo vs. CA and Quintana (A will may be declared extrinsically valid but it
does not necessarily follow that it is also intrinsically valid – will void because it Art. 804 – In writing and executed in a language or dialect known to
gives the property to a paramour, which makes those provisions invalid) – if the testator
you cannot donate to your spouse, you cannot donate to your paramour
Art. 805 – Every will (other than a holographic will), must be:
Intrinsic Validity of Wills (As to time) – Art. 2263 Civil Code (rights to the ) 1st par.
inheritance of a person who died before the effectivity of this Code 1. Subscribed at the end thereof by the testator himself or by the
shall be governed by the Civil Code of 1889; Inheritance of those who testator’s name written by some other person in his presence,
dies after the beginning of the effectivity of this Code shall be and by his express direction; and
adjudicated according to this Code) 2. Attested and subscribed by three or more credible witnesses in
Bulos vs. Tecson (natural child – born out of wedlock but there is no
the presence of the testator and of one another.
impediment, spurious child (now illegitimate) – born out of wedlock and there
is an impediment between the party to marry) – old civil code ) 2nd par.
1. Testator or the person requested by him to write his name and
Art. 796. Persons who can make wills the instrumental witnesses of the will, shall also sign, each and
• Testamentary Power – privilege to make a will given by the Civil every page thereof, except the last, on the left margin; and
Code 2. All the pages shall be numbered correlatively in letters placed
• Testamentary Capacity – ability to make a will as declared by on the upper part of each page.
law
o Legal age ) 3rd par.
o Of Sound Mind – for as long as you are aware of the Nature 1. The attestation shall state the number of pages used upon
of the estate, Proper objects of his bounty and Character of which the will is written;
the testamentary act at the making of the will. 2. The fact that the testator signed the will and every page
thereof, or cause some other person to write his name, under
Bagtas vs. Paguio 22 Phil 227 (General Rule: All persons are sane, sanity is the his direction, in the presence of the instrumental witnesses; and
rule. Exception: insanity, one who alleges that the testator is not of sound mind, 3. That the latter (witnesses) witnessed and signed the will and all
must prove the insanity. Exception to the exception: if the testator was publicly pages thereof in the presence of the testator and of one
known to be insane one month or less before making his/her will or judicially another.
declared insane, thus, burden of proof is shifted.)
) 4th par.
Baltazar vs. Laxa (April 7, 2012) (it is incumbent upon those who oppose the
1. If the attestation clause is in a language not known to the
probate of a will to clearly establish that the decedent was not of sound and
witnesses, it shall be interpreted to them.
disposing mind at the time of execution of said will. Otherwise, the state is duty-

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*In the strict sense, a will is NOT A PUBLIC INSTRUMENT – that is why it is Singson vs. Florentino 92 Phil 161/Taboada vs. Rosal 203 Phil 572
necessary to prove in a probate court its extrinsic validity (Attestation clause did not include the number of pages of a will –
general rule – VOID, exceptions – if the number of pages was included
Caneda vs. CA (May 28, 1983) (Void – attestation clause did not in the body or acknowledgment of the will itself.)
contain the statement that “the 3 credible witnesses signed the will in
the presence of the testator and of one another”) – Art. 809 cannot Acop vs. Piraso 52 Phil 660 (Decedent’s alleged will was written entirely
cure this defect. in English but the testator knew no other language except the Igorrote
dialect with a smattering of Ilokano – VOID)
*Art. 809 can only cure if the defect is an imperfection, or a defect in
the language or form of the attestation clause, the total absence of a Icasiano vs. Icasiano (5-paged will, 1 page of which was not signed by
statement that is mandatorily required by Art. 805 is a fatal defect, it 1 witness at left hand margin – VALID, inadvertent mistake because in
renders the entire will void. the duplicate, the signature was complete – substantial compliance)

Gil vs. Murciano 88 Phil 260 (VOID – attestation clause did not contain In Re Will of Prieto 46 Phil 700 (6-paged will, the first 5 pages were
the statement “the testator did not sign in the presence of the 3 signed at the left hand margin by the testator but not by the three
credible witnesses) attesting witnesses. – VOID)

Azuela vs. CA and Castillo (April 12, 2006) Abangan vs. Abangan (1-paged will not signed by testator and 3
1. Not writing down the number of pages in the attestation clause is a attesting witnesses at left hand margin – VALID, no need for marginal
fatal defect. (There is an exception see Singson vs. Florentino) signatures in 1-page wills)
2. Signatures of the witnesses must be at the END or BELOW the
attestation clause – because no such signature means that there was Estate of Tampoy vs Alberastine 107 Phil 100 (2-paged will, the first
no attestation by the witnesses. page of which was not signed by testator at the left hand margin –
3. Phrasing of the acknowledgment has a defect, it is not actually an VOID, testator needs to sign each and every page)
acknowledgment, but a mere jurat)
*Attestation clause – technically not part of the will, BUT it is there as a Avera vs. Garcia 42 Phil 145 (Marginal signatures of testator and 3
permanent record for the witnesses – the attestation clause is a witnesses were placed on right margin instead of left – VALID,
statement of the WITNESSES. substantial compliance) (non-presentation of other witnesses may be
barred by estoppel)
Abangan vs. Abangan 40 Phil 476 (Attestation clause not signed by
the testator – VALID, because only the witnesses are required to sign (Testator’s signature located below signature of Notary Public in the
such) acknowledgment – VOID, not considered as substantial compliance –
the testator must sign at the LOGICAL END, or at the end of his
Cagro vs. Cagro 92 Phil 1032 (Attestation clause not signed by 1 dispositions – End of the will means the LOGICAL, not the physical end
witness – must be signed by at least 3 witnesses) of the will.) (Stinson’s Estate 228 PA 475) – if after the signature, there
are additional clauses or provisions, not only should those clause be
(Attestation clause in a language not known to testator – VALID) void, but also the whole will, from beginning to end, and the will,
therefore, should be denied probate (IN RE ANDREWS 162 NY 1)]
(Attestation clause in a language not known to attesting witnesses –
VALID, if not known by the attestators, it shall be interpreted to them)

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***Jaboneta vs. Gustilo (True test of signing in the presence of the ) Art. 813. – When a number of dispositions are signed without
testator and witnesses – it is not actually seeing the signing, but the being dated, and the last disposition has a signature and date,
OPPORTUNITY of seeing the signing, had you cast your eyes to the such date validates the dispositions preceding it.
location and direction of the signing because there is no physical ) Art. 814. – In case of any insertion, cancellation, erasure or
obstruction to impair your vision or your view) alteration, the testator must authenticate the same by his full
signature.
Echavez vs. Dozen Construction & Devt. Corp & RD of Cebu City
(Combined the attestation clause and the acknowledgment – void & Disadvantages:
a will is essentially revocable – sale after making a will equals 1. May be susceptible to forgery
revocation by implication of law) 2. Due to lack of witnesses necessary, there may be vitiated
consent
Art. 807. Deaf/Deaf-Mute Testator – communicate through sign
language Ajero vs. CA 236 SCRA 488
(Authentication: Uncontested – only 1 witness that should know the
Art. 808. Blind testator – 2 readings of the will (one of the witnesses and signature of the testator, Contested – 3 competent witnesses that
the notary public) know the signature and handwriting of the testator

***Alvarado vs. Gaviola 226 SCRA 347 (SC: Liberal compliance with the **Dispositions signed and not dated shall be considered void
law – purpose of the law – the will was read aloud by the notary public dispositions – but will is still valid
while the witnesses are reading on their own silently) [LANDMARK CASE
– testacy is preferred over intestacy] Validity of the will – Art. 810 (must be handwritten and in a dialect
known to the testator
Garcia vs. Hon. Vasquez GR No. L-26615 (She was technically blind
and she read the will silently, no reading by witness and notary public – Validity of the dispositions – Arts. 812-814)
void) **Dispositions in a holographic will must be signed and dated,
otherwise void disposition.
**For cases involving deaf/deaf-mute and blind testators – must follow
first Arts. 804-806 and in addition Art. 807 or 808. **EXCEPTION, if the last disposition is signed and dated, all other
dispositions that are SIGNED will become valid (any altered disposition
Arts. 810-814. Holographic Wills must be authenticated by the signature of the testator, otherwise will
) Art. 810. – Must be entirely written, dated and signed by the not be validated)
hand of the testator himself (Subject to no other form, may be
made in or out of the RP) **Remedy if the proponent does not have witnesses that know the
) Art. 811. – In the probate of the holographic will, it shall be signature and handwriting of the testator and he does not want to get
necessary that at least one witness who knows the handwriting an expert witness – documents previously written, dated and signed by
and signature of the testator explicitly declare that the will and the testator may be compared to the holographic will – BUT, IT IS
the signature are in the handwriting of the testator – if will is NECESSARY TO PRESENT THE WILL or the PHOTOCOPY or DUPLICATE OF
contested, at least three of such witnesses or in the absence of SUCH WILL)
such witnesses, expert testimony may be resorted to.
) Art. 812. – The dispositions of the testator written below his Kalaw vs. Relova 132 SCRA 237 (The only disposition in the will was
signature must be dated and signed by him to be valid. altered but not authenticated – the will is considered void, since there
is no more dispositions to speak of, intestate succession will apply)

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Seangio vs. Reyes GR 140371-72 - Disinheritance is considered as a
“last will and testament” as long as it follows the formalities of the law. *Even as a creditor, if he is a witness and there was a devise or legacy
given, it shall not be effective, but if there are 3 witnesses besides him,
A will is still valid even if it does not have a positive disposition (i.e. if then such devise or legacy shall be valid.
the will contains a disinheritance or recognition of an illegitimate child)
Art. 825. Codicil – an addition or supplement to a will made after the
Uy Kiao Eng vs. Nixon Lee GR 176831 (Mandamus does not lie for execution of the will, annexed, or attached or appended to the will
private rights – additionally, no need for original holographic will, or if whereby the provisions of the will are amended, substituted, explained
the court needs a holographic will, the probate court itself will be the or altered.
one to order for the production of the original – as such no need for ) Always executed after the execution of the will
mandamus) ) Must be appended/attached to the original will because the
purpose of the codicil is to explain, amend, alter or modify the
Bilbao vs. Bilbao 87 Phil 144 (Joint wills – executed by 2 more testators, provisions of an original will.
disposing of their properties conjointly. Reciprocal wills – giving each ) If the “codicil” and the original will has no relationship, then it is
other the right to inherit in case of death of the other spouse) not a codicil, but a new will; there must be a relationship
between the “document” and the original will to be considered
Why joint and reciprocal wills are frowned upon/disallowed: a codicil.
) defeats the secrecy ) Whether it is a codicil or a new will, provided there are
) one party may dictate the terms of the will due to power, etc. incompatibilities/inconsistencies between the two documents,
) temptation to kill the other testator the one executed on a later date will be the one that will
prevail (presume the document, codicil or will, has validly
Art. 820/821. Witnesses to Will (Different requirements between testator revoked the original will)
and witnesses) ) To be a valid codicil, it must be executed just like a will
• Of sound mind (notarial codicil [804-806] and holographic codicil [810])
• 18 years of age or over
• Not blind, deaf or dumb Art. 830. Revocation of Wills
• Able to read and write A. By Implication of Law
• Domiciled in the Philippines a. You cannot give what you do not own (i.e. Honda Civic to
• Has not been convicted by FINAL judgment of falsification of be given, later it was sold for P1M, devisee will not get
documents, perjury or false testimony. anything – estate does not own the car and the P1M is
totally separate personal property)
*Not a requirement that the witness be a citizen of the Philippines, but b. Spouse who gives cause to legal separation not entitled to
must be domiciled in the Philippines. inherit (will previously states that the spouse who causes the
legal separation is the universal heir and such will was not
*Supervening incapacity does not invalidate the will as long as the revoked or otherwise)
witness had the capacity during the making of the will. i. But, if the spouse who gave cause to the legal
separation was AGAIN instituted as the universal heir in
Art. 823. Devise/Legacy given to Witness a NEW WILL after the legal separation – then the spouse
*Limitation to devices and legacies to be given to “witness” extends can now inherit because there was CONDONATION.
not only to him but also to his spouse, parent or child. B. Revocation by Overt Act (Requisites:)
*But if there are still 3 witnesses not including him, then the devise or a. There must be an overt act enumerated in the Civil Code
legacy to him will be allowed. (Burning, Tearing, Cancelling or Obliterating)

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b. Animus revocandi at the time of revocation – intention to Art. 832. Express Revocation but New Will Inoperative
revoke ) One who repudiates by will is assumed to have also repudiated
c. The revocatory act must be done personally by the testator by intestate succession. (i.e. will declared void, intestacy
himself, or it may be done by another person but it must be ensues, one who repudiates testacy, assumed to have
done in his presence, and under his express direction repudiated inheritance through intestacy)
d. Subjective phase of the overt act must be completed or ) Expressly revoked will cannot be reinstituted if a new will is
passed already – there must already be burning, tearing, rendered inoperative – thus, intestacy. (If only impliedly
cancelling or obliterating revoked, if the new will is rendered inoperative, the revoked will
e. At the time of the revocation, the testator must have may be reinstituted)
capacity to make a new will (principle of testacy is
preferred over intestacy) Art. 833. False Cause/Mistake
) The one who was originally instituted shall inherit because there
*Even a small portion that is burned (subjective phase has passed), was false cause or mistake in revoking the original will.
coupled with intent to revoke validly revokes a will.
Art. 834. Recognition of Illegitimate Child
C. Revocation by Codicil, New Will or any other writing executed ) Revocation of a will does not carry with it the recognition of an
just like a will illegitimate child because the recognition of an illegitimate
a. Only an extrinsically valid will revokes a previous will child is not a testamentary disposition.
b. Doctrine of Dependent Relative Revocation – If testator ) Also, the law wants the status of a child to be fixed.
revokes the will with the present intention of making a new
one and as a substitute, if the new will is not made or even Art. 835. Republication of Wills
if made, fails to take effect for any reason whatsoever, it will ) Will void as to form: Testator copies the will word per word and
be presumed that the testator prefers the old will rather comply with the formalities necessary. (Express Republication)
than intestacy. Where the act of destruction is connected ) Revoked Will: Again the testator copies the will word per word.
with the making of another will so as fairly to raise the (Implied Republication)
inference that the testator meant the revocation of the 1st o However, to be more efficient: Just effect a codicil stating
will to depend upon the efficacy and validity of the 2nd will, that the revoked will is to be considered the valid will.
the revocation shall be CONDITIONED and DEPENDENT
upon the validity of the 2nd will and if, for any reason, the 2nd Art. 837. Express Revocation
will intended to be a substitute is INOPERATIVE, the ) 3rd will revoking a 2nd will which expressly revoked the 1st will
revocation of the 1st will fails and it remains in full force and does not operate to revive the 1st will.
effect. (Exception to revocation by another will)
*For as long as there is a valid will, testamentary succession shall be
Art. 831. Implied Revocation preferred.
) The express revocation (3rd will) of the impliedly revoking will ) There is no valid holographic will that was accidentally burned
(2nd will) shall revive the impliedly revoked will (1st will), since even if there are witnesses to such, thus, it cannot be
they are only inconsistent with each other, remove the considered as an express revocation. (DDRR will apply, as long
inconsistent will, the 1st will no longer has any inconsistencies. as there is still a copy of the holographic will that may be
) Express revocation takes effect immediately, even during the presented in court)
lifetime of the testator

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Art. 838. Probate of Wills Art. 846. Heirs Instituted without Designation of Shares Inherit in Equal
**MTC and RTC has jurisdiction as probate court. (depending on the Parts
amount of the gross estate and where it was located)
Exemption: when there are compulsory heirs, legitime shall be satisfied
Testate Estate of Pilapil 72 PHIL 546 (dictates that the court does not first, and then the instituted heirs shall share equally the free portion
have jurisdiction – void, jurisdiction set by law)
*Spouse is entitled to ¼ of the NET HEREDITARY ESTATE not FREE
Mercado vs. Santos 66 PHIL 215 (Probate Court – proceeding in rem, PORTION.
thus it binds everybody. Finding of probate court is now final, thus, *Compulsory heir is entitled to ½ of the NET HEREDITARY ESTATE.
criminal action based on a falsified LWT will no longer lie because the
LWT has been admitted to probate. ONLY EXCEPTION: a case may be Art. 847. Collectively Instituted Deemed Individually Instituted
reopened even if final and executory if there is GRAVE ABUSE OF ) Those that are “collectively instituted” shall have individual
DISCRETION AMOUNTING TO LACK OF JURISDICTION) shares. (i.e. 3 sons – shall get 1 share each)

Ortega vs. Valmonte GR 157451 (No requirement that the execution of Art. 848. Brothers/Sisters of Full and Half Blood (equal sharing)
the will and the acknowledgment of the will be on the same date) ) Testate Succession – If the testator wanted to give more to his
full blood siblings, he should have indicated so in his will.
Revilla vs. CA GR 95329 (Exception: Between the testimony of a ) Intestate succession – half blood siblings get ½ share of the full
beneficiary and the testator, the testimony of the testator shall be the blood siblings.
one to be believed – even if the beneficiary is presenting a latter will) (Art.992 – an illegitimate relative cannot inherit from a legitimate
relative – IRON BARRIER Rule)
Maloles II vs. Philips GR 133359 (After admittance to probate, the court
who decided on the probate proceedings now has finished its Art. 849. Simultaneously Not Successively Instituted Heirs
responsibility on the matter – functus officio) ) Parent (non-compulsory heir, only voluntary) instituted as heir
along with his children is deemed to succeed SIMULTANEOUSLY
Art. 840. Institution of Heirs (same share).
**Generally, you only institute an heir with respect to the free portion,
because with respect to your compulsory heirs they are given the Art. 850. False Cause
legitime by law, not by the testator. (NOT ENTIRELY CORRECT, because ) Reason for instituting as heir is the “liberality/generosity of the
the free portion is where you take the legitime of the surviving spouse testator” and not the “false cause,” thus can still inherit.
and the illegitimate child if any, only when there is a residue, called, ) But if the reason to institute the heir is really the false cause,
the disposable free portion, that is the time when the testator has then cannot inherit.
absolute control of the disposable free portion)
Art. 851. Whole Estate Not Distributed to Instituted Heirs (Partly by will,
*How do you institute an heir: (must be clearly identified) partly by operation of law = mixed succession)
*An unknown person cannot inherit because it cannot be established ) There is a balance from the estate after giving the share of the
who he/she is. (Art. 845. Unknown Person) instituted heirs, the balance will be given to the legal heirs (by
operation of law/intestacy)
Parish Priest of the RCC of Victoria, Tarlac vs. Rigor GR No. L-22036
(Restriction imposed by the testator amounts to a perpetual prohibition
– thus, the property is given to the sisters of the testator instead of
leaving the property on perpetual “limbo”)

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Art. 852. Increase of Shares Proportionately (Expressly included in will extrinsic validity due to the patent violation in the will’s
that “ONLY or SOLE” the instituted heirs shall inherit) intrinsic validity)
) FORMULA: (ESTATE FOR DISTRIBUTION x SHARE)/MONEY & o Wife and adopted daughter of the testator were omitted,
PROPERTY DISTRIBUTED (i.e. 120k x 40k / 150k) nieces were the ones called to inherit based on the will –
there is preterition, because an adopted child enjoys the
Art. 853. Decrease of Shares Proportionately (again, same as 852, sole same rights as a legitimate child, thus the adopted
heirs) daughter was preterited from her legitime. (Acain vs. IAC)
) Same formula used to decrease the shares of the instituted o Only 1 of the 2 legitimate sons was instituted as an heir, and
heirs. a legacy of 10k to a friend. (Estate of 100k)
! Since 10k not inofficious, grant the legacy
Art. 854. Preterition – omission of one, some or all of the compulsory ! 90k remaining – intestate – 45k each son
heirs in the direct line o Same facts, but legacy now 70k
) Requisites: ! Legacy is inofficious – reduced to 50k (free portion)
o Total omission in the inheritance ! Each legitimate child share the legitime of the estate –
o Omitted heir is a compulsory heir 25k each
o Omitted compulsory heir is a compulsory heir in the direct o Viado Non vs CA – in case of preterition – remedy is not the
line (i.e. children of the deceased) partition of property but to pay the share of the heir
o The omitted heir survives the testator, because if the preterited instead (practicable thing to do)
omitted heir predeceases the testator, then the institution of
the heir is effectual. Art. 856. Voluntary/Compulsory Heirs who Die/Are
Incapacitated/Renounce Inheritance
) Effects: ) A voluntary heir who dies before the testator does not transmit
o Annul institution of the heir – as if there was no instituted rights to his (voluntary) heirs.
heir, as if there was intestacy ) But, a compulsory heir who dies before the testator, still
o Legacies and devisees given by the testator which are not transmits the right of representation to his heirs, children gets
inofficious and does not impair the legitimes, shall be the legitime of their father in equal shares.
respected. o Doctrine: THERE IS A RIGHT OF REPRESENTATION WITH
RESPECT TO THE LEGITIME, but not as to the FREE PORTION.
) Jurisprudence:
o Omitted the spouse in the will – no preterition, not a ISRAI:
compulsory heir Institution – Available only in testate
o Parent of legitimate children – only secondary compulsory Substitution – Available only in testate
heir, thus if there are primary compulsory heirs, then not Representation – Available in both Testate and Intestate
preterited Accretion – Available in both Testate and Intestate
o Legacy given to an illegitimate child – no preterition, Intestate Succession
legacy still part of inheritance, but if less than her legal
share in the legitime, it must be “completed” Kinds of Substitution:
o Parents omitted, no descendants – there is preterition 1. Simple substitution
because the legitimate parents now become the 2. Reciprocal substitution
compulsory heirs (Nuguid vs Nuguid – Court also adjudged 3. Fideicommissary substitution
on the intrinsic validity of the will, because it only had one 4. Compendious or Brief substitution
provision – because it will be a futile practice to go into the

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Art. 863. Fideicommissary Substitution (FIDEICOMITENTE and 2 heirs) o DEGREE – reckoned from the PROPOSITUS
) Requisites o Right of proximity – the nearer excludes the farther
o Expressly included in the will “fideicommissary” or o If there is no annotation on the title of the reservation and
“obligation preserve and transmit the property” the reservor sells the property to a buyer in good faith – sale
o 2 heirs: first and second heir must be related to each other valid, cannot be rescinded.
in 1 degree ! Reservatarios may recover the amount paid by the
o Must not burden the legitime buyer in good faith from the estate of the reservor and
o Must not be conditional the Assurance Fund set up by the government.
o At the time of death of the testator, both the first and o If there is annotation on the title of the reservation and the
second heirs must be alive or conceived. reservor sells the property - buyer now considered in bad
) 2 heirs inherit from one testator SIMULTANEOUSLY, NOT faith – sale invalid, can be reclaimed by the reservatarios.
SUCCESSIVELY – difference is enjoyment and management of ! Buyer in bad faith now claims from the estate of the
the property. reservor (doctrine of solutio indebiti) or claim damages
o 1st heir – acts like a usufructuary from the Assurance Fund of the government.
o 2nd heir – acts like a naked owner
! He/She may already transmit his share at the time of *The reservor has the obligation to record the reservation to protect
death of the testator the interests of the reservatarios, he has that obligation within 90 days
) When property is transferred: from the time that he accepted the property or within 90 days from
o Gen. Rule: Must be stated in the fideicommissary the time the property was awarded to him by the courts.
substitution
o Exception: If there was no mention of the date, then at Nieva vs. Alcala 41 Phil 915
the time of death of the 1st heir. IRON BARRIER RULE: Illegitimate child may not inherit from legitimate
) If no fideicommissary substitution, if the 1st heir dies, then the sibling – because in reserva troncal, it is basically inheriting from the
property will go to his estate and will now be inherited by his propositus – in this case, the propositus is the half blood brother of the
own heirs, however, he may institute a voluntary heir – but if illegitimate child (from the direct line) – cannot claim reserva troncal.
there is fideicommissary substitution, then the property does not
go to his estate, it redounds to the benefit of the 2nd heir, SIMILARITY: there is an obligation to preserve and transmit the property
because that is the obligation imposed by the testator. ) In FS, it is imposed on the 1st heir in favor of the 2nd heir
) If the 2nd heir is alive at the time of death of the testator, but ) In RT, it is imposed on the reservor in favor of the reservatarios
died before the 1st heir, the property will go to the 2nd heir’s
heirs (because of the right he acquired at the time of death of DIFFERENCE:
the testator) ) In FS, no right of alienation or disposal given to the 1st heir.
) If the 1st or 2nd heir dies before the testator, then only a Simple ) In RT, there is right of alienation by the reservor during his
Institution of HEIRS, lacking of 1 requisite (must be alive at the lifetime but subject to resolutory condition, that when the
time of death of the testator) reservor dies, and there are reservatarios, the property must
revert back to the line where it originally came from.
Art. 891. Reserva Troncal
) ORIGIN (ascendant, sibling, where property came from) Conditions:
) PROPOSITUS (descendant who acquired property gratuitously General Rule – reason to inherit is generosity or liberality, generally
) RESERVOR (ascendant who acquires prop. by operation of law) does not include any condition
) RESERVATARIOS (relatives within the 3rd degree belonging to
the line where the property came from)

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Requisites for Valid Conditions: Testate and Intestate Charts:
a. Condition may only be imposed on the free portion SURVIVING RELATIVE TABLE OF LEGITIMES TABLE OF
! Only condition that may be imposed on the legitime is the (TESTATE INTESTATE SHARES
condition not to partition the legitime for a period not SUCCESSION) (INTESTATE
exceeding 20 years. SUCCESSION)
b. Condition can never be presumed – it must be worded in the
will as a condition, otherwise, it will not be presumed to be a 1. legitimate children ½ NHE ÷ number of ENTIRE
condition. legitimate children ESTATE
A
2. legitimate parents L ½ NHE
Art. 874. Condition Not to Marry – absolute condition not to marry is
O
VOID. 3. illegitimate children
N
) Gen. Rule: Void, against public policy and the law.
4. illegitimate parents E
) Exception: Decedent states in his will that his/her surviving
spouse be prohibited to marry 5. surviving spouse 1/2; 1/3; 1/2; 0
) Samples:
o LWT institutes his FRIEND as sole heir on the condition he 6. 1 legitimate child; 1/2; 1/4 1/2, 1/2
shall not marry Y – VALID, because it is not an absolute surviving spouse
prohibition. (Prohibition is limited to marrying Y, can still
7.a. 2 or more legitimate ½ NHE ÷ no. of Consider spouse
marry others) children; surviving spouse legitimate children; as 1 child and ÷
o LWT institutes husband as sole heir on the condition he shall same share as 1 estate by total
not remarry – VALID, exception to the general rule. legitimate child; number
o LWT institutes wife that all properties go to wife and she shall
not marry – INVALID, Wording of the LWT shows that there 7.b. 2 or more legitimate ½ NHE no. of *Satisfy legitimes
children; surviving spouse; legitimate children; first; then,
was NO CONDITION in the will, but a mere order or
illegitimate children same share as 1 distribute FP
statement. (Morente vs. Dela Santa)
legitimate child; 1/2 **Pro-rata
share of 1 legitimate (concurrence
Art. 875. Disposition Captatoria child theory)
) Null and void, because
o It is not unilateral (requirement of a will) 8. legitimate parents; 1/2; 1/4 1/2; 1/2
o 2nd heir is compelled by the 1st LWT to institute the maker of surviving spouse
the 1st LWT as his heir 9. illegitimate parents; 1/4; 1/4
surviving spouse
Art. 887/888. Compulsory Heirs/Children/Descendants
c. Primary Compulsory Heirs – legitimate children/surviving 10. illegitimate children; 1/3; 1/3
spouse/illegitimate children, if any. surviving spouse
d. Secondary Compulsory Heirs – surviving parents of testator 11. legitimate parents; 1/2; 1/4; 1/8 1/2; 1/4; 1/4
illegitimate children;
surviving spouse

12. surviving spouse; 1/2; 1/2


bros/sis/nephews/nieces

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Testate Chart: Surviving spouse:
SURVIVING RELATIVE TABLE OF LEGITIMES • 1/2 – if he/she is the only heir of the deceased
TESTATE SUCCESSION • 1/3 – if there is marriage in articulo mortis
a. 3 requisites:
1. legitimate children ½ NHE ÷ number of legitimate i. Dispense with the marriage license – one or both of the
children contracting parties are at the point of death – no luxury
2. legitimate parents ½ NHE of time
ii. The decedent must be the one in danger of death and
ALONE
3. illegitimate children the cause of death must be the one he/she was
suffering from at the time of the marriage
4. illegitimate parents
iii. Testator died within 3 months from the time of the
5. surviving spouse 1/2; 1/3; 1/2; 0 marriage
• 1/2 – if marriage in articulo mortis, but they were living as
6. 1 legitimate child; surviving spouse 1/2; 1/4 husband and wife prior to marriage in articulo mortis
7.a. 2 or more legitimate children; ½ NHE ÷ no. of legitimate
• 0 legitime – if the surviving spouse is the one who gave cause
surviving spouse children; same share as 1 for legal separation
legitimate child;
*Illegitimate children DOES NOT EXCLUDE the legitimate parents (of the
7.b. 2 or more legitimate children; ½ NHE no. of legitimate deceased) in terms of legitimes.
surviving spouse; illegitimate children children; same share as 1
legitimate child; 1/2 share of
*You cannot impair the legal tie/share of the surviving spouse in favor
1 legitimate child
of the illegitimate child to get the proper proportion of 1:0.5
8. legitimate parents; surviving spouse 1/2; 1/4 (legitimate: illegitimate)

9. illegitimate parents; surviving spouse 1/4; 1/4 *Paramour does not get anything, barred even if constituted as a
10. illegitimate children; surviving spouse 1/3; 1/3 legatee or devisee.

11. legitimate parents; illegitimate 1/2; 1/4; 1/8 Art. 890. Legitimate Parents/Ascendants
children; surviving spouse *Intestate Succession – follows the rule of proximity and there is no right
of representation in the direct ascending line.

Art. 908. Formula for Net Hereditary Estate


Property left at the time of Death
- Debts/Charges
+ Collationable donation (inter vivos donations and simulated sales)
NET HEREDITARY ESTATE

*Legacies/Devisees/Valid Sale are not collationable donation

*Inter vivos donations given to compulsory heirs are considered part of


the legitime of the compulsory heirs except if they are expressly or
specifically mentioned as non-collationable donation.

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*If a compulsory heir repudiates his legitime, then the other compulsory 1) Art. 920 – Parent or Ascendant
heirs inherit the additional legitime in their own right and not by right of 1) When the parents have abandoned their children or
accretion. induced their daughters to live a corrupt or immoral life, or
attempted against their virtue;
Arellano vs. Pascual GR 189776, Dec. 15, 2010 ! Abandonment – not limited to mere physical
! Collation is only for compulsory heirs, if there are no abandonment, also includes failure or refusal to give
compulsory heirs, there is no need for collation. the child due care and attention demanded of parents
! Brothers and Sisters are not compulsory heirs ! Inducing corrupt or immoral life – the inducing acts must
! Collation takes place when there are compulsory heirs, one of be proved (not limited to daughters)
the purposes being to determine the legitime and the free ! Attempt against virtue – it is not required that there has
portion. If there is no compulsory heir, there is no legitime to be been final judgment of conviction (i.e. rape)
safeguarded. The decedent not having any compulsory heir, 2) Same as No.1 (Art. 919);
was at liberty to donate all his property. 3) Same as No.2 (Art. 919);
• Brother and sisters will inherit equally, BUT NOT including any 4) Same as No.3 (Art. 919);
donation given to them by the decedent prior to the 5) Same as No.4 (Art. 919);
decedent’s death. 6) Loss of parental authority for causes specified in the Code;
7) Same as No.5 (Art. 919);
Art. 915. Disinheritance – is a testamentary disposition by which a 8) An attempt by one of the parents against the life of the
testator for a cause authorized by law deprives a compulsory heir of his other (one parent against the other parent), unless there
share in the legitime has been a reconciliation between them.
• Art. 919 – Child or Descendant (8 causes) 2) Art. 921 – Surviving Spouse
o When a child or descendant has been found guilty of an • Same as No.1 (Art. 919);
attempt against the life of the testator, his/her spouse, • Same as No.2 (Art. 919);
descendants or ascendants; • Same as No.4 (Art. 919);
o When a child or descendant has accused the testator of a • When the spouse has given cause for legal separation;
crime for which the law prescribes imprisonment for 6 years • Spouse has given grounds for the loss of parental authority;
or more, if the accusation has been found groundless; • Unjustifiable refusal to support the children of the other
o When a child or descendant has ben convicted of adultery spouse
or concubinage with the spouse of the testator;
o When a child or descendant by fraud, violence, Requisites for Valid Disinheritance:
intimidation, or undue influence causes the testator to 1. Valid will
make a will or to change one already made; 2. There must be a ground mentioned expressly in the will
o Refusal without justifiable cause to support the parent or a. Must be a lawful ground enumerated in the Civil Code
ascendant who disinherits such child or descendant; (Grounds mentioned in Art. 919-921 – grounds are exclusive)
o Maltreatment of the testator by word or deed by the child or b. Must be true and existing
descendant; 3. Disinherited heir must be clearly identified using the will or any
o When a child or descendant leads a dishonorable or extrinsic evidence
disgraceful life; 4. No partial disinheritance, it must be total
o Conviction of a crime which carries with it the penalty of 5. Not conditional
civil interdiction. 6. No reconciliation (reconciliation – resumption of the friendly
relations between the disinheriting testator and disinherited heir
– may be express or impliedly done) between the parties

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*Valid disinheritance – the validly disinherited heir does not get any Art. 932/933 – Effect if the legatee or devisee is already the owner of
legitime and no free portion = no inheritance at all the thing/property (Relate to Art. 957)
1. If at the time of the making the will, the legatee is already the
Art. 918. Ineffective Disinheritance owner of the thing/property – legacy not effective
) Requisites: a. Subsequent alienation or reacquisition is IMMATERIAL, the
o No ground mentioned in the will reckoning point is at the time of the making of the will he
o Not a lawful ground mentioned under the Civil Code was already the owner of the property being given to him,
o Not true or existing thus, the legacy or devise is ineffective.
) Effects: Art. 957.
o (Annul) the institution of the heir – only to the prejudice of When devise no longer EFFECTIVE
the preterited heir (Institution of heir still valid, just reduce to 1. Testator transforms the thing – does not retain its form or
give share to the invalidly disinherited heir) denomination
o Legacies and devisees are respected as long as it is not 2. Testator alienates the property except with right of repurchase
inofficious and does not impair legitime. (i.e. Mere act of alienation by the testator revokes the legacy
) *AS LONG AS THERE IS A NATURAL PERSON TO CLAIM THE [without right of repurchase])
MONEY/PROPERTY OF THE ESTATE, then it will go to them and 3. Property was lost during the lifetime of testator or after his
not the state. death without heir’s fault

Art. 922. Reconciliation – may be done expressly or impliedly Art. 934. – There are encumbrances in the will:
1. Ring pledged with pawnshop – free the ring (pay the debt –
Art. 923. Children/Descendants of Validly Disinherited Heir estate)
) There is a right of representation in a validly disinherited heir – 2. Lot mortgaged to PNB – free the lot (pay the debt – estate)
thus the disinherited heir’s children can still inherit from their 3. Lot with an easement of right of way – Easement is an actual
grandparent. (Legitime only or Legitime and Free Portion) right, thus give lot with easement of right of way)
) Revocation of Disinheritance: 4. Lot over which usufruct for 5 years constituted – respect
o By reconciliation usufruct
o By revocation of the will containing the disinheritance
o By making a new will containing the disinherited heir Art. 935. Legacy of credit – legatee should collect from the debtor
o By disallowance of the will containing the disinherited heir (cannot automatically collect from the estate) – only as to the part of
the credit or debt existing at the time of the death of the testator
Art. 930. Erroneous belief that he owns the property – legacy or devise
is NOT effective (testator cannot give what does not belong to him) Art. 937. Remission of the Debt – only those debts that were obtained
prior to the remission of the debt (at the time of the execution of the
Art. 931. The testator knows that he does not own the property, thus will), later debts are not included in such remission.
the estate shall buy the property for the devisee or legatee,
EXCEPT when: Art. 938. Legacy to Creditor
1. Owner of the property does not want to sell General Rule: If there is a legacy or devise to the creditor, it shall not
2. Owner of the property asks for excessive, unconscionable be applied to his credit.
amount Exception: If it was specifically mentioned that what is being paid is the
*Thus, the just value or reasonable price of the thing shall be given to debt and not really a legacy.
the legatee.

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INTESTATE SUCCESSION With Right of Representation (get the share of the person they are
representing, not in their own right)
Art. 960. Circumstances when Intestate Succession occurs: – If right of representation is available it comes ahead, apply
) If a person dies without a will, or with a void will, or one which right of representation before accretion.
has subsequently lost its validity; – Applies when there is predecease or incapacity of one of the
) When the will does not institute an heir to, or dispose of all the heirs, but does not apply when there is REPUDIATION.
property belonging to the testator; (intestate succession shall – Apply representation when there is predecease or incapacity,
take place only with respect to the property the testator has because it is beyond the control of the heir, whereas in
not disposed) repudiation, it is voluntary, thus accretion applicable.
) If the suspensive condition attached to the institution of heir
does not happen or is not fulfilled, or if the heir dies before the Art. 969. Repudiation of Inheritance
testator, or repudiates the inheritance, there being no Repudiation – within the control of the heir, thus accretion shall be
substitution, and no right of accretion takes place used and not representation (inherit in their own right = equal shares)
) Instituted heir is incapable of succession (One who repudiates may not be represented, may only inherit if the
heirs in the same line all repudiate)
GEN.RULE: only blood relatives may inherit (Maximum Limit: 5th civil
degree in the collateral line – child of 1st cousin) Example:
X has 3 children (A,B,C). A has 2 children (D and E) B has 1 child (F) and
EXCEPTIONS to the blood relative requirement: surviving spouse and C also has 1 child (G).
adopted child, state (through escheat proceedings) • If A,B,C repudiates, then D,E,F,G will inherit in their own right
(equal shares) from X and not by right of representation.
Rules: • But if only A repudiates, then only B and C will inherit from X
1. Proximity – nearer excludes the farther because there is no right of representation in repudiation.
2. Preference over direct descending line over collateral line • If A,B,C predeceases/incapacitated, then D,E,F,G will inherit by
3. Relatives in the same degree inherit in the same proportion, right of representation. Thus, D and E will each get ½ of the
EXCEPT: share that should have went to A, while F and G get the
a. Full blood and half blood siblings respective shares of B and C.
b. Iron barrier – illegitimate relatives may not inherit ab
intestate from legitimate relatives and vice versa Art. 972 Right of Representation – given by law, not by anyone, only
4. Double share of nephews – per stirpes and per capita available in the direct descending line, never available in the direct
ascending line.
*If there are legitimate and illegitimate children, GIVE LEGITIMES first
before giving the free portion pro rata (which includes the illegitimate *In the collateral line, right of representation may be allowed only to
children) the children of those who predecease and/or incapacitated
brother/sisters of the decedent – does not apply to children of the
Art. 968 Accretion – right of accretion is applicable if the right of children of the sibling (farther)
representation is not available.
Requisites:
1. Two or more heirs are called to the same inheritance, device or
legacy and there is a vacancy either because of predecease,
incapacity or repudiation.
2. The vacant share will be equally given to the co-heirs.

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Art. 975 Succession by Brothers/Sisters and/or Nephews/Nieces f. Illegitimate child gets ½ of the share of a legitimate child. (only
) Brothers and Sisters alone – shall inherit per capita if there is enough in the free portion after giving the share of
) Brothers and Sisters with nephews and nieces of the deceased: the legitimate children and the surviving spouse)
o Brothers/Sisters – per capita (equal shares)
o Nephews/Nieces – per stirpes (right of representation Art. 985/987. Parents/Ascendants
) Nephews and Nieces alone – shall inherit per capita 1. Rule of Proximity – Parents exclude all other ascendants, and
(COMPARE WITH SUCCESSION OF GRANDCHILDREN) those in the collateral line, including siblings.
2. There is no right of representation in the ascending line; only
Collateral Line Per Per per capita.
Capita Stirpes 1) If either parent of the deceased is capable of succeeding,
Brothers and Sisters Alone ✔ then grandparents will not inherit.
Nephews and Nieces of Deceased Alone ✔ 2) If both parents predecease, maternal and paternal
Brothers & Sisters Inherit with Nephews & Nieces: grandparents will inherit per capita, subject only to limit of
) Brothers & Sisters ✔ 50% per side (paternal/maternal) if both sides are
) Nephews & Nieces ✔ represented
i. No descendants and parents predecease the
Art. 976/977. decedent, paternal grandmother and maternal
*One who repudiates cannot be represented (977), but he who grandmother alive, each will receive 50% share of the
repudiates may represent him whose inheritance he has renounced. estate of the decedent.
(976) (i.e. Child who repudiates inheritance from father, may represent ii. No descendants and parents predecease the
father in the inheritance from the child’s grandfather) decedent, paternal grandparents both alive together
with maternal grandmother, paternal grandparents will
Art. 979/980. Children Inherit In Their Own Right (Equal shares) receive 25% each while the maternal grandparent will
) Children of the deceased – shall inherit per capita get 50% of the estate.
) Children of the deceased with grandchildren of the deceased:
o Children – per capita (equal shares) Art. 992. Iron Curtain/Barrier
o Grandchildren – per stirpes (right of representation) ) If the decedent is the parent of the illegitimate child, then the
) Only grandchildren of the deceased – per stirpes (right of illegitimate child may inherit from him/her.
representation) ) But, if the decedent is a legitimate relative of the illegitimate
child (i.e. half-blood sibling), then the illegitimate child cannot
Direct Descending Line Per Per inherit from the legitimate child/relative.
Capita Stirpes ) The prohibition is RECIPROCAL (they cannot inherit from one
Children of the Deceased Alone ✔ another)
✔ ) Jurisprudence:
Grandchildren of Deceased Alone
o Diaz vs. IAC
Children Inherit with Grandchildren:
✔ ! Even if the illegitimate children are nearer in proximity,
) Children of Deceased
✔ the prohibition restricts them from inheriting.
) Grandchildren of Deceased
o Cacho vs. Udan
! Legitimate children may not inherit from the illegitimate
Art. 983. Legitimate Children with Illegitimate Children of Decedent
child because of the reciprocal nature of the iron
e. Do not ever impair the legitime and the portion of the surviving
barrier rule.
spouse in favor of the illegitimate children.

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o In Re: Intestate Estates of Josefa Delgado and Guillermo
Rustia
! Iron barrier rule does not apply to illegitimate children
inheriting from illegitimate children as well.
! The share of half-blood illegitimate siblings are ½ of the
share of the full blood illegitimate sibling.

Relate Art. 992 to Art. 902. – Rights of Illegitimate Children


) A right of an illegitimate child may be transmitted to his own
heirs.
) An illegitimate child may not inherit from a legitimate relative of
his father/mother (who is a legitimate child of the decedent) –
IRON BARRIER

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Obligation and Contracts ) No real right over the thing unless the same has been delivered
to him (Actual or Constructive Delivery)
Art. 1156: ) Personal right – may be enforced only against a specific
defendant
Requisites of an Obligation: ) Real right – may be enforced against the whole world
1. Passive subject – debtor
2. Active subject – creditor Art. 1165
3. Object/Prestation/Fact ) Delivery of a determinate thing
4. Juridical Tie o Rights of creditor:
! Specific performance (delivery)
Sources of Obligations: (Art. 1158-1162) ! Rescission of the contract with payment of damages
1. Law – never presumed ! Delivery of all accessories and accessions (Art. 1166)
2. Contracts ) Delivery of a generic thing
3. Quasi-Contracts – unilateral but legal relationship between o Rights of creditor:
parties ! Creditor may ask any person to comply with the
a. Negotiorum Gestio – voluntary management of the obligation at the expense of the debtor
property or affairs of another without the knowledge or ! Even when there is a fortuitous event, the contract still
consent of the latter remains
b. Solutio Indebiti – something is received when there is no
right to demand it and it was unduly delivered through Art. 1167 & 1168
mistake ) Obligation to do (1167): cannot ask for specific performance
4. Delicts – civil liability arises as a consequence of a criminal (involuntary servitude)
offense (Art.100 RPC – all persons criminally liable are civilly o Remedy:
liable) ! Ask someone else to do it or undo it at the expense of
5. Quasi-Delicts/Tort – the debtor
a. Act or Omission ! Damages
b. Fault or Negligence ) Obligation not to do (1168):
c. No pre-existing relationship between the parties (General o Remedy:
Rule) ! Ask someone else to undo it at the expense of the
i. (Exception) Even if there is a pre-existing relationship [SC debtor
Case: Air France vs. Carrascoso) ! Damages

Art. 1163
) Ordinary Diligence – diligence of a good father of a family [SC
Case: Picart vs. Smith]
) Extraordinary Diligence – based on law or stipulation of the
parties

Art. 1164
) Creditor has a right to the fruits of the thing from the time the
obligation to deliver arises

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Art. 1169 ) General Rule: No person shall be liable for a fortuitous event
) General Rule: No demand, no delay (legal delay) ) Exceptions:
o Exceptions: o When expressly provided by law
! Law o When stipulated by the parties
! Express Stipulation of the parties o When the nature of the obligation requires the assumption
! Time is of the Essence of risk
! Demand would be useless, as when the obligor has
rendered it beyond his power to perform Art. 1176 (Mere presumptions)
) In reciprocal obligations, neither party incurs in delay if the ) Receipt of the principal by the creditor, without reservation
other does not comply or is not ready to comply in a proper with respect to the interest, it shall give rise to the presumption
manner with what is incumbent upon him. From the moment that said interest has been paid.
one of the parties fulfill his obligation, delay by the other begins. ) Receipt of a later installment of a debt without reservation as
to prior installments, shall likewise raise the presumption that
Art. 1170 such installments have been paid.
) When damages will be added:
o Delay Different Kinds of Obligations
o Fraud – willful or intentional
! Demandable in all obligations Pure Obligation – one which is not subject to any condition and no
! Any waiver is void specific date is mentioned for its fulfillment and is, therefore,
o Negligence – lack of due diligence immediately demandable.
! Courts will regulate the damages given to the party Conditional Obligations
because it is of a lower act as compared to fraud Conditional
ResolutoryObligations
Condition – the happening of the condition extinguishes the
o Those who in any manner contravene the tenor thereof obligation

Art. 1174 – Fortuitous Event Suspensive Condition – the happening of the condition creates the
) Force Majeure – attributable to acts of man obligation.
) Fortuitous Event – attributable to acts of God
) Requisites: Casual Condition – dependent on chance and a will of the 3rd persons
o The event must be independent of the human will or at
least of the obligor’s will Mixed Condition – partly dependent upon chance and partly upon
o The event could not be foreseen, or if it could be foreseen, the will of a 3rd person
must have been impossible to avoid
o The event must be of such a character as to render it Purely Potestative Condition – when the condition is purely dependent
impossible for the obligor to comply with his obligation in a on the sole will of one of the parties
normal manner ) Potestative Condition that is:
o The obligor must be free from any participation in, or the o Dependent on the debtor – the condition is void
aggravation of the injury to the obligee o Dependent on the creditor – the condition is valid

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Obligations with a Period

Art. 1180 – Obligation with a Period Art. 1193 Obligation with a Period - Obligations for whose fulfillment a
) If the parties agree to have a period, but did not set such day certain has been fixed
period, then, they should go to court, to have the period set.
(Art. 1197) Art. 1198 (Memorize)
) The Court may no longer change the period once set. ) Debtor shall lose the right to a Period, when:
) However, the parties may agree to change the period based o After the obligation has been contracted, he becomes
on the mutuality of contracts. insolvent, unless he gives a guaranty or security for the debt
o When he does not furnish to the creditor the guaranties or
Art. 1183 Impossible Condition – those contrary to good customs or securities which he has promised
public policy and those prohibited by law shall annul the obligation o When by his own acts he has impaired said guaranties or
which depends upon them. If the obligation is divisible, that part securities after their establishment, and when through a
thereof which is not affected by the impossible or unlawful condition fortuitous event they disappear, unless he immediately
shall be valid. gives new ones equally satisfactory
o When the debtor violates any undertaking, in consideration
Art. 1186 Condition deemed fulfilled when the obligor voluntarily of which the creditor agreed to the period
prevents its fulfillment o When the debtor attempts to abscond.

Art. 1189 Rules on Conditions (IMPORTANT) Art. 1197


1. If the thing is lost without the fault of the debtor, the obligation ) The court does not fix the period on its own, but based on what
shall be extinguished the court infers that the parties agreed upon.
2. If the thing is lost through the fault of the debtor, he shall be
obliged to pay damages (LOST – perishes, goes out of Art. 1196
commerce, disappears or cannot be recovered) ) The period is presumed to have been established for the
3. When the thing deteriorates without the fault of the debtor, the benefit of both the creditor and the debtor, unless from the
impairment is to be borne by the creditor tenor of the same or other circumstances it should appear that
4. If it deteriorates through the fault of the debtor, creditor may the period has been established in favor of one or of the other.
choose between rescission of the obligation and its fulfillment,
with damages in either case Alternative Obligations – one wherein various prestations are due but
5. If the thing is improved by its nature, or by time, the the performance of one of them is sufficiently determined by the
improvement shall inure to the benefit of the creditor choice which, as a general rule, belongs to the debtor.
6. If it is improved at the expense of the debtor, he shall have no
other right than that granted to the usufructuary Art. 1199. A person alternatively bound by different prestations shall
completely perform one of them
Art. 1191
) Judicial Rescission – court shall be the one to decree the Art. 1200. The right of choice belongs to the debtors, unless it has been
rescission expressly granted to the creditor.
o The power to rescind obligations is implied in reciprocal
ones, in case one of the obligors should not comply with Debtor shall have no right to choose those prestations which are
what is incumbent upon him. impossible, unlawful or which could not have been the object of the
) Implied Rescission (Not included in Art. 1191) – when it is obligation.
included in the contract that rescission may be done by the Art. 1205 - Remedies of Creditor when choice is expressly granted to him:
parties. (1) One of the things lost due to fortuitous event - delivery of any from the remainder
(2) One of the things lost due to fault of the debtor - delivery of any from those subsisting OR price of
that which disappeared, in either case, with damages
DIZON& (3) All the things are lost through fault of debtor - price of any of them plus damages
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The above shall also apply to obligations to do or not to do, in case one or some or all prestations
become impossible.
Art. 1206. – Facultative Obligation – when only one prestation and the Obligations with a Penal Clause
debtor gives another in substitution.
Art. 1226 – In obligations with a penal clause, the penalty shall
Joint and Solidary Obligations (Arts. 1207 to 1222) substitute the indemnity for damages and the payment of interests in
case of noncompliance, if there is no stipulation to the contrary.
When obligation is Solidary: Nevertheless, damages shall be paid if the obligor refuses to pay the
1. The obligation expressly so states penalty or is guilty of fraud in the fulfillment of the obligation.
2. The law requires solidarity
3. The nature of the obligation requires solidarity Art. 1227
) The debtor cannot exempt himself from the performance of
*In a solidary obligation, the relationship between the creditors and the obligation by paying the penalty, save in the case where
debtors is solidary, however, the relationship between creditors and this right has been expressly reserved for him.
debtors is joint. ) Neither can the creditor demand the fulfillment of the
obligation and the satisfaction of the penalty at the same time,
Art. 1222 (Defenses of a Debtor) unless this right has been clearly granted him.
1. Defenses derived from the nature of the obligation o However, if after the creditor has decided to require
2. Defenses personal to him or pertain to his own share fulfillment of the obligation, the performance thereof should
3. Defenses personal to other solidary debtors become impossible without his fault, the penalty may be
enforced.
*In case of insolvency of one of the debtors, the other debtors shall
share in the share of the insolvent debtor (even if one of the debtors Art. 1228 – Proof of actual damages suffered by the creditor is not
got his part of the debt condoned) necessary in order that the penalty may be demanded.

Divisible and Indivisible Obligations Art. 1230 – The nullity of the penal clause does not carry with it that of
the principal obligation.
Art. 1224
) General Rule: A joint indivisible obligation gives rise to indemnity Extinguishment of Obligations (PaLoConMerComNo)
for damages from the time anyone of the debtors does not
comply with his undertaking. Payment
) Exception: The debtors who may have been ready to fulfill their ) Debtor cannot compel creditor to accept manager’s check
promises shall not contribute to the indemnity beyond the because it is not legal tender
corresponding portion of the price of the thing or of the value ) Art. 1236 (Important)
of the service in which the obligation consists. o Can a 3rd person pay the obligation of another?
! General Rule: No, because there is no privity of contract
Art. 1225 between the 3rd person and the contracting party.
) Obligations to give definite things and those which are not ! Exceptions:
susceptible of partial performance shall be deemed to be • When there is a stipulation that a stipulation will be
indivisible. the one who will pay the obligation.
) Even though the object or service may be physically divisible, • If the 3rd person has an interest in the fulfillment of
an obligation is indivisible if so provided by law or intended by the obligation.
the parties.

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) Art 1236-1238 (Payment by 3rd person) • Any person authorized to receive the payment (authority is very
o Payment made by a 3rd person with the knowledge and important)
consent of the principal debtor:
! Reimbursement of the amount he/she has paid in full
amount. Art. 1241 – Payment to a person who is incapacitated
! Right to be subrogated to all the rights of the creditor • Valid only to the extend of the benefit derived by that person
(even to all the rights of the original creditor) • Valid to the extent that the incapacitated person kept it intact.
o Payment without the knowledge and consent of the
principal debtor: Art. 1244 –
! Reimbursement only up to the extent of the benefit that • General Rule: Creditor may not be required to accept a
was derived by the principal debtor. different thing.
! No subrogation, only available if there was knowledge • Exceptions:
and consent of the principal debtor. o Dacion en pago – delivery of a different thing from the
o Payment by 3rd person who does not want to be original obligation
reimbursed: o Facultative obligation – you can substitute the original
! Presumption: It is a donation. prestation
• Requirements of donation: o Novation of the original contract
o There must be consent/acceptance by the
principal debtor Art. 1245 – Dacion en pago
o Donation of Personal Property – oral or in writing, • Requisites:
but if value more than P5,000 donation and o There is an existing debt in money, but you cannot pay in
acceptance must be in writing; if less than money, thus you offer another thing/property, and there
P5,000 there must be simultaneous delivery of must be acceptance by the creditor
the thing or the document evidencing the o There must be no insolvency on the part of the principal
donation debtor
o Donation of Real Property – must be in a public
instrument, specifying the property donated and
the charges if any; Acceptance must also be in
a public instrument, either in the same
instrument or another one.
*Requirements of donation must be complied with, otherwise it will be
void.

Art. 1239 – Obligation to give and the payment is made by one who
does not have legal capacity – no legal payment – not considered
valid – does not extinguish the obligation, UNLESS it is a natural
obligation.

Art. 1240 – Payment shall be made to whom:


• Creditor
• Successors-in-Interest

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) Difference between Dacion en pago and cession Application of Payments:
o Dation en pago: only one creditor (he is the one who ) What are the requisites:
should agree to the dacion en pago) and one debtor, o There are several debts
creditor should agree to the dacion en pago. o All due and demandable and liquidated
o Dation en pago: only one or some property to be delivered o One debtor and one creditor
– there is transfer of ownership from debtor to creditor o The debtor does not have sufficient money to pay all the
! General Rule: Obligation is extinguished only to the debts (most important)
value of the thing/property delivered. ) The debtor has the option to make application of payments –
! Exception: If there is an agreement between the parties at the time of the payment.
that despite the fact that the property delivered is less ) If the debtor does not make application of payments at the
than the value of the obligation, the parties agree that time of payment, then the creditor is given the option to make
the entire obligation is extinguished. the application of payments by issuing a receipt and if there is
o Cession: One debtor, several creditors no vice or defect in consent, the receipt cannot be impugned.
o Cession: Debtor is in Partial or Total insolvency ) If there is no choice given by the debtor or the creditor, then
o Cession: Deliver all or the universal properties of the debtor the law will be the one to choose, the one that is the most
to the creditors onerous will be the one chosen.
o Cession: No transfer of ownership of the properties
delivered Tender of Payment and Consignation
o Cession: Sell the property (private or public sale of all the General Rule: You will have to pay tender payment first before
properties) consignation.
o Cession: Extinguish the obligation of the debtor only up to
the extent of the proceeds of the sale less the Tender of Payment
administration costs. ) Extrajudicial
) Antecedent to consignation
Art. 1246 – Indeterminate thing whose quality has not been
determined. (Can the creditor require delivery of a superior thing? No, Consignation
choose the medium quality) ) Judicial act

) If the check is impaired by the fault of the creditor, there is When can you readily make a consignation (Art. 1256) – no need to
considered payment. make valid tender of payment
) Exchange Rate: Computed from the time of the constitution of 1. When the creditor is absent or unknown, or does not appear at
the obligation. the place of payment;
) Place of Payment: 2. When he is incapacitated to receive the payment at the time it
o Place designated in the obligation is due;
o Place where the thing might be at the moment the 3. When, without just cause, he refuses to give a receipt;
obligation was constituted 4. When two or more persons claim the same right to collect;
o Domicile of the debtor 5. When the title of the obligation has been lost.

Who is charged with the burden of paying the expenses incurred


because of the consignation – charged to the creditor, because he is
the one at fault by not accepting payment

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Requisites of a valid consignation: Condonation or Remission of the Debt
1. Debt that is due and demandable and liquidated ) It is essentially gratuitous, therefore, it is tantamount to a
2. Valid tender of payment donation, if there is an express condonation, it must comply
3. Give notice to the creditor (1st notice) – that you will with the formalities of a donation.
consignate the amount of the obligation with the court ) If there is a promissory note between the creditor and debtor
4. Deposit the money with judicial authorities (consignate) and the document is found in the possession of the debtor, the
5. Give notice to the creditor (2nd notice) – that you have already presumption is that the creditor has condoned the debt.
consignated the amount with the court ) It is also presumed that if the document evidencing the debt is
with the debtor, that the creditor has voluntarily delivered the
As the debtor, you have already consignated the money with the document to the debtor.
court, can you still withdraw the money? Yes, but the effect is that the o How to dispute the presumption – give evidence/proof to
obligation still subsists. the contrary of the presumption
) If a thing pledged is found in the possession of the person who
As the debtor, you have already consignated the money with the pledged the thing, it is presumed that the pledge has been
court, you go to the creditor and ask the consent of the creditor to remitted. But it does not mean that the principal loan of money
withdraw the money, can you withdraw the money? Yes, the is also condoned.
obligation still subsists but the creditor loses any right or preference to ) The nullity of the accessory does not mean the nullity of the
the money. principal obligation.

Loss of the Thing Due Merger or Confusion


) There is only one person who is both debtor and creditor of
If the thing is a determinate/specific thing, the loss of the thing himself.
extinguishes the obligation, EXCEPT:
) When it is specified by law Compensation (Legal)
) When it is specified by the stipulation of the parties ) Requisites of Legal Compensation:
) When there is delay, contravention to the tenor of the 1. That each one of the obligors be bound principally, and
obligation, fault, negligence that he be at the same time a principal creditor of the
) When the nature of the obligation requires the assumption of other;
risk 2. That both debts consist in a sum of money, of if the things
due are consumable, they be of the same kind, and also of
If it is an obligation to do, the debtor shall be released if is legally or the same quality if the latter has been stated;
physical impossible (i.e. debtor who will do the obligation to do dies) 3. That the two debts be due;
4. That they be liquidated and demandable;
If it is an obligation to do, the debtor may be released if the service 5. That over neither of them there be any retention or
becomes so difficult as to be manifestly beyond the contemplation of controversy, commenced by third persons and
the parties. communicated in due time to the debtor.
**Legal compensation happens even without the knowledge and the
even without the consent of the principal debtor.

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Novation Subrogation
1. Conventional – change in the person of the creditor –
Requisites of Novation: agreement of all the parties – more so, it should be the debtor
1. There is a valid prior obligation who should agree.
2. There is an agreement to a new obligation 2. Legal subrogation
3. There is the extinguishment of the old obligation a. When a creditor pays another creditor who is preferred,
4. There is now the validity of the new obligation even without the debtor’s knowledge
b. When a 3rd person, not interested in the obligation, pays
2 Kinds of Novation: with the express or tacit approval of the debtor;
1. Objective – if there is a change in the terms and conditions/ c. When, even without the knowledge of the debtor, a person
object of the obligation interested in the fulfillment of the obligation pays, without
2. Subjective – if there is a change in the person of the debtor or prejudice to the effects of confusion as to the latter’s share.
the creditor

) Novation is never presumed.


) There must be the extinguishment of the old obligation or the
new and old obligation must be so incompatible with each
other, they cannot stand together.
) Unequivocal, there must be an extinguishment of the old
obligation and a new obligation arises.

2 Kinds of Substitution of Debtors:


1. Delegacion – it is the original debtor that proposes the new
debtor – it is the creditor that must consent to the substitution of
debtors
a. General Rule (insolvency of the new debtor): Do not revive
the liability of the original debtor.
b. Exception: If the new debtor is already insolvent at the time
of the delegacion or the old debtor knew of the insolvency
of the new debtor
2. Expromision – a 3rd person or creditor himself proposes the new
debtor – all of the parties must agree to the expromision – more
importantly, the creditor must agree to the change in debtor.
a. Insolvency of the new debtor – Do not revive the liability of
the original debtor, because a 3rd person or the creditor
himself who proposes the change in debtor.

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CONTRACTS ) Effectivity/Relativity in Contracts – contracts take effect only
between the PARTIES, their ASSIGNS and HEIRS except in case
Art. 1305 where the rights and obligations arising from the contract are
) A contract is a meeting of minds between two persons NOT transmissible by (1) their nature, or (2) by stipulation or (3)
whereby one binds himself, with respect to the other, to give by provision of law. The heir is NOT liable beyond the value of
something or to render some service the property he received from the decedent. (Art. 1311)
) Phases of a Contract o Exceptions:
o Generation – preliminary or preparatory process for the ! (2nd Par., Art. 1311) Stipulation Pour Autri – if a contract
formation of the contract should contain some stipulation in favor of a 3rd person,
o Perfection – birth of the contract he may demand its fulfillment provided he
o Consummation – fulfillment of the purpose for which the communicated his acceptance to the obligor before its
contract was constituted revocation. A mere incidental benefit or interest of a
person is NOT sufficient. The contracting parties must
Principles of a Contract have clearly and deliberately conferred a favor upon a
) Freedom/Liberty/Autonomy of contracts – the contracting 3rd person.
parties may establish such stipulations, clauses, terms and • Requisites:
conditions as they may deem convenient, provided they are o A stipulation in favor of 3rd person should be a
not contrary to law, morals, good customs, public order or part, not the whole of the contract;
public policy (Art. 1306) o Contracting parties must have clearly and
) Mutuality of Contracts – must bind both contracting parties; its deliberately conferred a favor upon a 3rd
validity or compliance cannot be left to the will of one of them person;
(Art. 1308) o Neither of the contracting parties bears the
o Exceptions: legal representation or authorization of the 3rd
! The determination of the performance MAY be left to a party;
3rd person, whose decision SHALL NOT be binding until o Acceptance of the benefit by the 3rd person
made known to BOTH contracting parties (1309) communicated to the obligor before it could be
! The determination SHALL NOT be obligatory if it is revoked.
evidently inequitable. In such case, courts shall decide ! (Art 1312) In contracts creating real rights, 3rd persons
what is equitable under the circumstances. (1310) who come into possession of the object of the contract
are bound thereby, subject to the provisions of the
Mortgage Law and the Land Registration laws.
! (Art. 1313) Creditors are protected in cases of contracts
intended to defraud them.
! (Art. 1314) Any 3rd person who induces another to
violate his contract shall be liable for damages to the
other contracting party.
• Violation of one who induces – liable for damages
based on quasi-delict
• Violation of one of the parties – breach of contract

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Q: How are contracts perfected? Q: How is consent manifested?
A: Art. 1315. Contracts are perfected by MERE CONSENT, and from A: Art. 1319. By the MEETING of the OFFER and the ACCEPTANCE upon
that moment the parties are bound not only to the fulfillment of what the THING and the CAUSE. The offer must be CERTAIN and the
has been expressly stipulated but also to all the consequences which, acceptance ABSOLUTE. A qualified acceptance constitutes a
according to their nature, may be in keeping with good faith, usage counter-offer.
and law.
Acceptance made by letter or telegram does not bind the offerer
Art. 1316. REAL CONTRACTS, such as deposit, pledge and except from the time it came to his knowledge. The contract, in such a
commodatum, are not perfected until the delivery of the object of the case, is presumed to have been entered into in the place where the
obligation. offer was made.

FORMAL CONTRACTS, when there are certain formalities required by Art. 1322. An offer made through an agent is accepted from the time
law that need to be fulfilled, for the contract is to be valid. (Stricter acceptance is communicated to him.
requirements for real property – must be in a public instrument)
Q: What is the effect of death/incapacity of the parties?
Q: May a person enter into a contract for another? A. Art. 1323. An offer becomes INEFFECTIVE upon the death, civil
A: As a general rule, Art. 1317. NO ONE may contract in the name of interdiction, insanity, or insolvency of either party before
another. acceptance is conveyed.

EXCEPTIONS: Q: What is an option contract?


1. When he is authorized by the other party; A: Art. 1324. When the offerer has allowed the offeree a certain period
2. When he has, by law, a right to represent him. to accept, the offer may be withdrawn at anytime before
acceptance by communicating such withdrawal, except when the
A contract entered into in the name of another by one who has (1) option is founded upon a consideration, as something paid or
NO authority or legal representation, or (2) who has acted beyond his promised.
powers, shall be UNEFORCEABLE, unless it is ratified, expressly or
implied, by the principal. OPTION – contract granting a person the privilege, to buy or not to
buy, certain objects at any time within the agreed period at a fixed
Q: What are the essential requisites of a contract? price.
A: Art. 1318. There is NO CONTRACT unless the following requisites ) OPTION MONEY – given to get the privilege of a period.
concur: ) OPTION MONEY after lapse of period – may be forfeited, unless
1. Consent of the contracting parties – must be given freely, otherwise stipulated
voluntarily without any vice or defect of consent ) OPTION MONEY – generally separate and distinct from the
2. Object certain which is the subject matter of the contract – principal price, but may be stipulated that such option money
must be certain, licit, essential that it may be a future object be considered as earnest money.
but it must be sure to exist later on OPTION MONEY vs. EARNEST MONEY
3. Cause or consideration – usually it is the money that you pay ) OM: no perfected contract
) EM: already a perfected contract
) OM: price separate and distinct from the fixed price
) EM: part of the fixed price

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Q: Who may NOT give consent to a contract? Art. 1338/1344. FRAUD: Requisites:
A: Art. 1327. The following CANNOT give consent to a contract: 1. insidious words or machinations must be employed by one
1. Unemancipated minors; (VOIDABLE CONTRACT – may be of the contracting parties
ratified) 2. must be serious
2. Insane or demented persons; (during a lucid interval " VALID; 3. must induce the other party to enter into the contract
not during a lucid interval " VOIDABLE) must not have been employed by BOTH contracting parties
3. Deaf-mutes who do not know how to write. or by a 3d person.

Art. 1328. Contracts entered into during: Art. 1339. Failure to disclose facts when there is a duty to reveal them,
) a lucid interval " VALID as when the parties are bound by confidential relations, then it is
) contracts agreed to in a state of drunkenness or during a tantamount to fraud. (i.e. when there is an insurance policy that you
hypnotic spell " VOIDABLE. want to enter into, person insure needs to fill up check-list of sickness
) Contract where consent is given through mistake, violence, (family history of sickness) before person may be insured)
intimidation, undue influence, or fraud " VOIDABLE
Art. 1345/ Simulation of a contract may be
Art. 1331. MISTAKE (When mistake makes contract voidable) " The 1. Absolute – parties do not intend to be bound at all " void
mistake must be serious and it must also be important, it should refer to 2. Relative – when the parties conceal their future agreement "
the substance of the object of the contract or those conditions which when it does not prejudice a 3rd person and is NOT intended for
had principally moved one or both of the contracting parties to enter any purpose contrary to law, orals, good customs, public order
into that contract. or policy " BINDS the parties to their real intention. " valid
contract
Art. 1332. When one of the parties is unable to read, or if the contract is
in a language not understood by him, and MISTAKE or FRAUD is Art. 1347. Objects of Contracts
alleged, the person enforcing the contract must show that the terms 1. Within the commerce of men susceptible of appropriation
thereof have been fully explained to the former. 2. Real or Possible
3. Licit
Art. 1335. VIOLENCE " serious or irresistible force is employed. 4. Determinate or possible to be determined later on
INTIMIDATION " reasonable and well-grounded fear of an imminent
and grave evil upon his person or property, or upon the person or Art. 1350. Cause of Contracts – (TLC: consideration of the contract:
property of his spouse, descendants or ascendants, to give his money that you pay) In onerous contracts, the cause is to be
consent. (Threat) understood to be for each contracting party, the PRESTATION or
promise of a thing or service of another, but in contracts of pure
Art. 1337. UNDUE INFLUENCE " when a person takes improper beneficence, the mere liberality of the benefactor.
advantage of his power over the latter will of another, depriving the
latter of a reasonable freedom of choice. Even if the cause or consideration is not included in the contract of
sale, it is presumed that there was consideration, because no one will
Factors to be considered: confidential, family, spiritual and other part with his property unless there is cause or consideration.
relations between the parties; mental weakness, ignorance and
financial distress of the one alleged to be influenced – VOIDABLE Consideration may also be a little inadequate or grossly inadequate
(i.e. pacto de retro sale – to allow the party to buy it back)

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Art. 1356. Form of Contracts Art. 1359. Reformation of Instrument – reform the instrument, not the
General Rule: OBLIGATORY, in whatever form, provided all the contract itself
essential requisites for their validity are present. ) Requisites:
(ConsentObjectConsideration) 1. There must have been a meeting of the minds upon the
contract;
Exception: When the LAW requires that a contract be in some form in 2. Instrument evidencing the contract does NOT express the
order to be VALID or ENFORCEABLE, that requirement is ABSOLUTE and true agreement between the parties;
INDISPENSABLE. 3. The failure of the instrument to express the agreement must
be due to mistake, fraud, inequitable conduct or accident.
FORMALITIES WHICH ARE REQUIRED FOR VALIDITY OF CONTRACTS:
) In Writing: Reformation is Proper:
1. Donation of personal property " Exceeding P5k 1. Art. 1361 – Mutual mistake of the parties
2. Sale of real property by an agent (authority of agent must 2. Art. 1362 – One acted with mistake, the other acted
be in writing, otherwise the sale is void) fraudulently
3. Antichresis – amount of the interest and the principal must 3. Art. 1363 – Mistake by one, concealment by the other
be in writing 4. Art. 1364 – Through the ignorance, lack of skill, negligence or
4. Interest of loan of money bad faith on the part of the person drafting the instrument or of
the clerk or typist, the instrument does not express the true
) In a Public instrument: intention of the parties
1. Donation and acceptance of real property 5. Art. 1365 – Contract of mortgage or pledge the agreement of
2. Partnership where immovable property was contributed the parties but the instrument states that there is an absolute
sale, even with right to repurchase
Art. 1358. For enforceability/convenience/greater security of the
parties Art 1366. NO REFORMATION
1. Simple donations inter vivos when no condition is imposed;
The following must appear in a public document: 2. Wills;
1. Acts and contracts which have for their object the creation, 3. Real agreement is void
transmission, modification or extinguishment of real rights over
immovable property; sales of real property or of an interest Art. 1370. Interpretation of Contracts – if the TERMS of a contract are
therein CLEAR and leave no doubt upon the INTENTION of the contracting
2. The cession, repudiation or renunciation of hereditary rights parties, the LITERAL meaning of its stipulations shall control.
3. Power to administer property, or any other power which has for
its object an act appearing or which should appear in a public If the words appear to be contrary to the EVIDENT INTENTION of the
document, or should prejudice a third person parties, the latter shall prevail over the former.
4. The cession of actions or rights proceeding from an act
appearing in a public document Art. 1377. The interpretation of OBSCURE words or stipulations in a
**All other contracts where the amount involved exceeds P500 must contract shall NOT FAVOR the party who CAUSED THE OBSCURITY.
appear in writing, even a private one. (governed by law on sales)
Least Defective to Most Defective Contracts: Rescissible, Voidable,
Unenforceable, Void.

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VALID CONTRACTS VOIDABLE CONTRACTS
1. Strictly comply with all legal requirements as to consent, object 1. Valid until annulled;
and cause a. One party is incapable of giving consent to contract;
2. Entered into during a lucid interval (minority or insanity)
3. Relatively simulated contracts which do not prejudice a 3rd b. Consent vitiated by mistake, violence, intimidation, undue
person and not intended for a purpose contrary to law, morals, influence or fraud;
good customs, public order or public policy. c. Contracts entered in a state of drunkenness or during a
4. In divisible contracts, legal terms may be enforced if same can hypnotic spell;
be separated from illegal provisions. 2. Susceptible of ratification (REMEDY IS MUTUALLY EXCLUSIVE,
EITHER ANNUL OR RATIFY)
RESCISSIBLE CONTRACTS a. Ratification cleanses contract from all defects;
1. Valid until rescinded b. Ratification retroacts to constitution of contract;
2. Economic/financial injury or damage to contracting party or c. Ratification can be effected expressly or tacitly;
3rd person. d. Ratification may be effected by guardian
a. Lesion by more than ¼ of the value of the object against e. Ratification extinguished the action to annul contract;
i. Ward by guardian f. Ratification needs no conformity of other party who has no
ii. Absentee by representative right to bring action for annulment
b. In fraud of creditors; 3. May be assailed ONLY by a contracting party (obliged
c. Entered into by defendant over objects under litigation principally or subsidiarily);
without knowledge/approval of litigants or of competent a. Except:
judicial authority i. Capacitated party as to the incapacity of the other
d. Other contracts specially declared as rescissible party;
e. Payments made in a state of insolvency ii. Those who exerted intimidation, violence or undue
3. Rescissible contracts may not be ratified influence or employed fraud
4. May be assailed not only by a contracting party but also by a 4. Mutual restoration of object and cause;
3rd person injured/defrauded a. Incapacitated person not compelled to restitute except
5. Action for rescission is subsidiary insofar as he has been benefited by the thing or price he
6. Only to the extent necessary to cover the damages caused received;
7. Mutual restitution of object and cause b. Loss of the thing through the fault of the person obliged to
a. Not applicable if object is legally in the possession of a 3rd return said thing, he shall return fruits received and value of
person who did not act in BF; the thing at the time of loss;
b. Indemnity for damages against person who caused the c. Action for annulment extinguished upon loss of object
loss; through fraud or fault of person who has a right to institute
c. Effects of rescission retroact to the date the action for annulment;
rescission was instituted 5. Period to file annulment – 4 years from:
8. Period to file action for rescission – 4 years from: a. Time defect of consent ceases;
a. Termination of guardianship b. Time of discovery of mistake or fraud;
b. Time domicile of absentee is known c. Time guardianship ceases

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UNENFORCEABLE CONTRACTS NATURAL OBLIGATIONS – Those based on equity and natural law,
1. Cannot be enforced by court action, unless ratified; which are not enforceable by means of a court action, but after
a. Entered into without authority or without legal voluntary fulfillment by the obligor, it authorizes the retention by the
representation or beyond authority granted; oblige of what has been delivered or rendered by reason thereof.
b. Did not comply with the Statute of Frauds (applicable only
to executory contracts): ESTOPPEL – condition or state by virtue of which an admission or
i. Agreement not to be performed within a year; representation is rendered conclusive upon the person making it, and
ii. Special promise to answer for the debt, default or cannot be denied or disproved as against the person relying thereon.
miscarriage of another;
iii. Agreement made in consideration of marriage, other Kinds of Estoppel:
than mutual promise to marry; 1. Estoppel in Pais – arises when by one his acts, representations or
iv. Agreement for the sale of goods not less than P500.00; admissions, or by his silence when he ought to speak out,
v. Lease for more than 1 year or sale of real property; intentionally or through culpable negligence, induces another
vi. Representation as to the credit of a 3rd person. to believe certain facts, to exist, and such other rightfully relies
c. BOTH contracting parties incapable of giving consent to a and acts on such belief, as a consequence of which he would
contract; be prejudiced if the former is permitted to deny the existence
2. Susceptible of ratification of such act, admission, representation or silence.
a. Failure to object to presentation of oral evidence 2. Estoppel by Deed – technical estoppel by virtue of which a
b. Acceptance of benefits party to a deed and his privies are precluded from asserting as
3. May be assailed only by the contracting parties. against the other and his privies any right or title in derogation
of the deed, or from denying any material fact asserted
VOID CONTRACTS therein;
1. Do not produce any legal effect
2. One or some of the essential requisites of a valid contract are
lacking in fact or in law.
a. Cause, object or purpose is contrary to law, public morals,
public policy, good customs, public order;
b. Absolutely simulated/fictitious contract;
c. Cause or object is inexistent at the time of transaction
d. Object is outside the commerce of man
e. Contemplates an impossible service
f. Intention of the parties as to principal object cannot be
ascertained
g. Expressly declared by law as void
3. Intention of the parties as to principal object cannot be
ascertained – expressly declared by law as void
a. Not susceptible of ratification
b. Right of action or defense cannot be waived/does not
prescribe
4. May be assailed NOT ONLY by a contracting party but even by
a 3rd person whose interest is directly affected.

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TRUSTS – legal relationship between one persons having equitable DISTINGUISH EXPRESS and IMPLIED TRUST
ownership over a certain property and another having legal title Express Trust Implied Trust
thereto. 1. Created by intention of 1. Created by operation of law
trustor or of the parties 2. Deducible from the nature of
Kinds of Trusts: 2. Created by direct and transaction by operation of
1. Express – those created by the intention of the trustor and the positive acts of parties law as matters of equity,
trustee; those created by the direct and positive acts of the 3. Intent to establish the trust independent of the intention
parties, by some writing, or deed, or will, or by words is clear of the parties.
evidencing an intention to create a trust. 4. No trust concerning an 3. Intent to establish taken from
2. Implied – created by operation of law; those which without immovable or any interest circumstances or other matters
being expressed, are deducible from the nature of the therein may be proved by indicative of such intent
transaction or by operation of law as matters of equity, parol evidence 4. May be proved by parol
independent of the particular intention of the parties. 5. Laches and prescription evidence
a. Resulting Trust – there is an intent to create a trust but it not a bar to enforce trust 5. Laches and prescription may
is not effective as an express trust; raised by implication bar enforcement
of law and presumed always to have been
contemplated by the parties, the intention as to which Trust Pursuit Rule – equity will pursue property that is wrongfully
is to be found in the nature of their transaction, but not converted by the fiduciary, or otherwise compel restitution to the
expressed in the deed or instrument of conveyance. beneficiary. A trust will follow the property through all changes in its
Examples are found in Arts. 1448 to 1455. state and form, provided its product or proceeds are capable of
b. Constructive Trust – created by law to prevent unjust identification.
enrichment or oppression; when there is fraud, mistake,
it is construed that there is constructive implied trust;
trust not created by words, either expressly or impliedly
evidencing a direct intention to create a trust, but by
construction of equity it is the law that states that there
is constructive trust.

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SALES DISTINGUISH:
Contract of Sale Contract of Agency to Sell
Vendor – obligates himself to transfer ownership and deliver a 1. Buyer receives the goods as 1. Agent receives the goods as
determinate thing owner; goods of the principal;
Vendee – pay the price certain in money or its equivalent 2. Buyer has to pay the price; 2. Agent simply has to account for
the proceeds of sale to principal;
A sale may be conditional or absolute. 3. Buyer, as a general rule, 3. Agent, if unable to sell, can
cannot return the object sold; return the goods;
Contract of Sale – an agreement whereby one of the contracting 4. Seller warrants the thing sold 4. Agent does not make warranty
parties obligates himself to transfer the ownership of and to deliver a for which he assumes no personal
determinate thing, and the other to pay therefor a price certain in liability, for as long as he acts
money or its equivalent. within his authority and in the
name of the seller;
DISTINGUISH: 5. Buyer can deal with the thing 5. Agent, in dealing with the thing
Contract of Sale Contract to Sell as he pleases being the owner received, must act and is bound
1. Title passes to the buyer upon 1. Ownership is reserved to the according to the instructions of the
delivery of the thing sold; seller and is not to pass until full principal.
payment of the price;
2. In case of non-payment an 2. In case of non-payment, there DISTINGUISH:
action for specific performance or can be no action for specific Contract of Sale Contract for a Piece of Work
for rescission can be filed by performance but only for 1. Thing subject of the contract 1. Thing transferred is not one in
injured party; damages; would have existed and been existence and which would never
3. Non-payment of the price is a 3. Full payment is a positive the subject of sale to some have existed but for the order of
negative resolutory condition; suspensive condition; other person even if the order the person desiring it;
4. Vendor has lost and cannot 4. Title remains in the vendor if the had not been given; available manufactured especially
recover the ownership of the thing vendee does not comply with the to all in the general course of according to the order of a
sold until and unless the contract condition precedent of making business; specific person/entity;
of sale itself is resolved and set payment at the time specified in 2. Risk of loss before delivery is 2. Risk of loss before delivery is
aside. the contract. borne by buyer; borne by the worker/contractor,
not by the one who ordered;
3. Primary object is a contract of 3. Services dominate the contract
sale of manufactured item even though there is a sale of
already existing, even though goods involved.
the item is installed by labor
furnished by seller.

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DISTINGUISH: DISTINGUISH:
SALE Barter Earnest Money Option Money
1. Consideration is price certain or 1. Consideration is another thing; 1. Part of the purchase price; 1. Money given as distinct
equivalent; consideration for an option
2. Buyer can enforce vendor’s 2. In case of eviction by an contract;
liability in case of eviction. innocent 3rd person, injured party 2. Given only when there is a 2. Sale not yet perfected;
can sue for damages only. perfected sale;
To determine whether contract is sale or barter: 3. Buyer is bound to pay the 3. Optionee not required to buy.
1st – intent of the parties balance of the price.
2nd – if intent not clear:
1. Thing is more valuable = barter • Right of First Refusal – an innovative juridical relation. If such right is
2. 50/50 = sale incorporated in a contract, it is enforceable by specific
3. Price is more than the thing given to you = sale performance. Otherwise, the injured party can only sue for
damages. (Must be specifically included in the contract itself) (No
DISTINGUISH: price yet, but offer will be given, once the owner decides to sell)
SALE LEASE • Pactum Reservati Dominii (Contractual Reservation of Title) – a
1. Seller transfers ownership of the 1. Owner transfers temporary stipulation where parties agree that despite delivery, the ownership
thing sold. possession and enjoyment of the of the thing shall remain with the seller until the purchaser has fully
thing leased. paid the price. (Art. 1478)

DISTINGUISH: DISTINGUISH:
SALE Dacion En Pago Pactum Reservati Dominii Contract to Sell
1. No pre-existing credit; 1. There is pre-existing credit 1. A form of a conditional sale; 1. A contract preparatory to a
2. Obligations between parties 2. Obligations between parties are contract of sale;
are created; extinguished; 2. Delivery of the object has been 2. No delivery;
3. More freedom in fixing the 3. Less freedom in fixing the price. made;
price. 3. In case of non-payment, action 3. In case of non-payment,
for specific performance or for there can be no action for
Concepts/Principles: rescission can be filed by the specific performance, only
• Policitation (Negotiation) – unaccepted unilateral promise to buy injured party damages
or sell.
• Option Contract (Art. 1479) – an acceptable unilateral promise to • Assignment of Credit – a contract by virtue of which one person
buy or sell a determinate thing for a price certain supported by a transfers to another his rights and actions against a third person in
consideration distinct from the price. The optioner-offeror is bound consideration of a price certain in money or its equivalent.
to comply with his undertaking but the optionee has the right but
not the obligation to buy or sell. In case of breach, the optionee DISTINGUISH:
can sue for damages only – he cannot sue for specific Assignment of Credit Contract of Sale
performance (Asuncion vs. CA) 1. After the transfer, a third person is 1. The subject obliged is the
• Earnest Money (Art. 1482) – partial payment of the purchase price obliged; whole world;
and is considered as proof of the perfection of the contract of 2. Assignor warrants the existence 2. Vendor warrants against
sale. Option money may become earnest money, if parties agree. and legality of the credit and in some eviction and hidden defects.
cases the solvency of the debtor.
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• Sale by Description – seller sells things as being of a certain kind, Kinds of Delivery:
buyer merely relying on the seller’s representation or descriptions 1. Actual or Real delivery – when the thing sold is placed in the
without seeing the thing. control and possession of the vendee (Art. 1479).
• Sale by Sample – seller warrants that the bulk of the goods shall 2. Constructive or Legal Delivery – acts which have been held by
correspond with the sample in kind, quality and character. construction of law equivalent to actual delivery
• Sale by Sample and Description – must satisfy both requirements. o Execution of a public instrument (Art. 1498. Par. 1);
o Traditio symbolica – parties make use of a token symbol to
Art. 1475. The contract of sale is perfected at the moment there is a represent the thing delivered
meeting of the minds upon the thing which is the object of the o Traditio longa manu – by mere consent of the parties if the
contract and upon the price. thing sold cannot be transferred to the possession of the
vendee at the time of the sale (Art. 1499 (1)); vendor
From that moment, the parties may reciprocally demand merely points to the thing sold which shall thereafter be at
performance, subject to the provisions of law governing the form of the control and disposal of the vendee;
contracts. o Traditio brevi manu – when vendee has already the
possession of the thing sold by virtue of another title (Art.
Art. 1477. The ownership of the thing shall be transferred to the vendee 1499 (2)).
upon the actual or constructive delivery thereof. o Traditio Constitutum Possessorum – when the vendor
continues in possession of the thing sold not as owner but in
Tradition – is a derivative mode of acquiring ownership by virtue of some other capacity (Art. 1500).
which one who has the right and intention to alienate a corporeal o Quasi-tradition – in case of incorporeal rights, (Art. 1501):
thing transmits it by virtue of a just title to one who accepts the same. ! In case sale is made through public instrument, the
execution thereof is equivalent to delivery
1. Sales contract is a mere title; it does not by itself transfer ! In any other case, the placing of titles of ownership in
ownership. It is the delivery of the object which constitutes the the possession of the vendee or the use by the vendee
acquisition of ownership. of his rights, with the vendor’s consent, it shall be
2. The object of the sale must be delivered in its entirety and at understood as delivery.
the same time, unless the parties agree to a stipulation.
3. Act of delivery must be coupled with the intention of delivering Loss/Deterioration of the Object (Art. 1480) – Who bears the risk of loss?
the thing, and there must be actual delivery. ) Principle of Res Perit Domino – thing perishes for the account of
4. Constructive delivery must eventually ripen to actual delivery. the owner
RISK OF LOSS with SELLER RISK OF LOSS with BUYER
1. Lost before perfection 1. Lost after delivery
2. Lost at the time of 2. Lost after perfection but
perfection, contract is void before delivery (Exception to
or inexistent the rule of “res perit domino”)

An Unpaid Seller is (Art. 1525)


A. One has not been paid or tendered the whole price;
B. One who has received a bill of exchange or other negotiable
instrument as conditional payment and the condition on which
it was received has been broken by reason of the dishonor of
the instrument.

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Remedies of an Unpaid Seller: c. Sale of Real Estate in Installments (RA 6652 Maceda Law).
A. In general, an unpaid seller has 2 remedies: Applicable only to:
a. An action for specific performance; or i. Transactions or contracts of sale or financing of real
b. An action for rescission, with damages in either case. estate on installment payments, including sale of
B. Special Remedies: residential and condo units;
a. Sale of Personal Property in Installment (Art. 1484) – (RECTO ii. Buyer has paid at least 2 years of installments
LAW) – seller has the following alternative remedies: 1. Right of specific performance – seller must observe
i. Specific performance in case buyer fails to pay (CAN the grace period granted to the buyer to pay,
RECOVER DEFICIENCY); without additional interest, the unpaid installments.
ii. Rescission of the sale in case of default of 2 or more a. Grace period is one month/year of installments
installments; paid;
iii. Foreclose the chattel mortgage on the thing sold in b. May be exercised only once every 5 years of
case of default of 2 or more installments. (CANNOT the life of the contract/extensions;
RECOVER DEFICIENCY) c. In case of installments LESS than 2 years. Period
** In addition, the seller can also retain the installments paid shall not be less than 60 days from the date the
provided the forfeiture is not unconscionable. (Art. 1486) installment became due;
b. Sale of Goods (Art. 1526) d. Failure to pay within the grace period allows the
i. Lien on goods while still in seller’s possession: seller to proceed to (OPTION 2 – Rescission)
1. Sale was without any stipulation as to credit 2. Right of rescission – rescission can only happen after
2. Expiration of the term of credit 30 days from receipt of the notice of cancellation or
3. Buyer is insolvent (1527 – 1529) demand for rescission by a notarial act plus full
ii. Stoppage-in-Transitu payment of cash surrender value to the buyer
1. Seller is unpaid a. Seller shall refund to buyer cash surrender value
2. Buyer is insolvent of payments equal to 50% of the total payments
3. Goods are in-transit made and after 5 years of installments, an
4. Seller must take possession of the goods or give additional 5% every year but not to exceed 90%
notice to the carrier of his claim of the total payments made.
5. Seller must surrender the negotiable document of 3. Right to Retain Installments – seller can retain not
title, if any more than 50% of the installments paid. But if
6. Seller must bear the expenses of delivery (1532) installments paid were less than 2 years, seller can
iii. Resale of thing – can be exercised ONLY when the seller have absolute forfeiture over installments paid.
has either the right of lien or stoppage-in-transitu a. Downpayments, deposits or options paid are
1. Goods are perishable included in the computation of total payments
2. Right of resale is expressly reserved made.
3. Buyer defaults for an unreasonable time. b. Art. 1484 is applicable to contracts of leases of
iv. Rescission of the contract – can be exercised ONLY personal properties with option to buy when the
when the seller has either the right of lien or stoppage- lessor has deprived the lessee of the possession
in-transitu or enjoyment of the thing.
1. Right of rescission is expressly reserved
2. Buyer defaults for an unreasonable time

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Obligations of the Contracting Parties DISTINGUISH:
) Vendor (Arts. 1487, 1495) Goods Delivered to Buyer on Sale Goods Delivered to Buyer on
1. Transfer ownership of the thing sold; or Return Trial or on Approval/Satisfaction
2. Deliver the thing including accessions and accessories 1. Ownership passes to buyer on 1. Ownership remains with seller
3. Warrant against eviction and defects delivery but subsequent return of until buyer signifies his approval
4. Take care of the thing pending delivery goods to seller revests ownership or satisfaction;
5. Pay for the expenses of the deed of sale, unless otherwise in the seller;
stipulated 2. Sale subject to a resolutory 2. Sale subject to suspensive
) Vendee (1582) condition (return/tender of goods condition (approval or
1. Accept delivery to the seller within time fixed in the satisfaction of the buyer);
2. Pay price contract, or if no time has been
fixed, with a reasonable time);
Place of Delivery of Goods Sold (1521) 3. Depends entirely on the will of 3. Depends on the character
1. As per agreement, whether express or implied; buyer without reference to the and quality of the goods
2. No agreement as to place of delivery – usage of trade quality of goods
3. No agreement, no prevalent usage – seller’s place of business; 4. Risk of loss or injury remains with 4. Risk of loss or injury remains
4. In any other case – seller’s residence; buyer. with seller.
5. In case of specific goods, which to the knowledge of the
parties at the time of the contract were in some other place – Rules in Case of Double Sale (1544) (one seller to two or more buyers)
that place is the place of delivery, in the absence of any 1. Personal Property – to the first possessor in good faith. (If there is
agreement or usage of trade to the contrary. dispute, first one in possession (actual possessor) is preferred; if
there are two possessors, the one longer in possession; if they
Time of Delivery of Goods Sold (1521) possess the property almost at the same time, then he who
General Rule: presents title and if they can both present title, the court will
1. Agreement of the parties; determine) – if it is double sale, there must be good faith, first
2. No agreement – usage of trade possessor in good faith
2. Real Property
**If no time is fixed by the contract – REASONABLE TIME which is a a. To the 1st registrant in the Registry of Property, in good faith;
question of fact dependent upon the circumstances attending the b. If no inscription, to the first possessor, in good faith;
particular transaction, such as the character of the goods, purpose of c. If none of the above, to the person with the oldest title, in
the transaction, ability of the seller to produce the goods if they are to good faith.
be manufactured, transportation facilities and distance to be traveled,
etc. Mirror Doctrine – one cannot close his eyes to facts which should put a
reasonable and prudent man upon his guard, and then claim that he
Payment of the Price (1524) acted in good faith under the belief that there was no defect in the
General Rule: title of the vendor.
) Delivery simultaneous with payment of the price.
Exception:
) Even without payment, delivery must be made if a period for
payment has been fixed by the parties.

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Warranty – is a statement or representation made by the seller of 1. Warranty Against Eviction
goods, contemporaneously and as a part of the contract, having A. Eviction – shall take place whenever by a final judgment based
reference to the character, quality or kind of the thing sold, where he on a right prior to the sale or an act imputable to the vendor,
promises or undertakes to insure that certain facts are or shall be as he the vendee is deprived of the whole or of a part of the thing
then represents. purchased (1548)
A. Express Warranty – any affirmation of fact or any promise by a. Remedies of Vendee:
the seller relating to the thing, the natural tendency of which is i. Total Eviction – demand from the vendor the following:
to induce the buyer to purchase of the thing, and if the buyer a. Value of the thing at the time of eviction
purchases the thing relying thereon. (1546) b. Income or fruits, if he has been ordered to deliver
o Mere opinion of a seller does not import a warranty unless: them to the party who won the suit;
a. The seller is an expert c. Costs of the suit
b. It was relied upon by the buyer d. Expenses of the contract if vendee has paid them
e. Damages and interests and ornamental expenses, if
B. Implied Warranty – that which the law derives by implication or sale was made in bad faith.
inference from the nature of the transaction or the relative ii. Partial Eviction – demand from the vendor nos. 1-5
situation or circumstance of the parties, irrespective of any above OR rescind the contract, but with the obligation
intention of the seller to create it. to return the thing without other encumbrances that
those existing when he acquired it. (1556)
In a contract of sale, unless a contrary intention appears, there
is an implied warranty (1547) 2. Warranty Against Hidden Defects
o On the part of the seller, that he has a right to sell the thing A. Elements:
at the time when ownership is to pass. a. Defect must be serious or important
o That the buyer shall from that time have and enjoy the b. It must be hidden
legal and peaceful possession of the thing c. It must exist at the time of the sale
o That the thing shall be free from any hidden faults or d. Vendee must give notice of the defect to the vendor within
defects, or any charge or encumbrance not declared or a reasonable time
known to the buyer e. No prescription (6 months from delivery of thing or 40 days
*No implied warranty in auction sales, “as is where is” sales and in case of animals;
sales of 2nd hand articles/items f. No waiver of warranty
**An implied warranty may be waived or modified by the parties. B. Remedies of Vendee (1567)
a. Accion redhibitoria (rescission)
b. Accion quanti minores (reduction of the price)
c. Damages, in either case.

3. Warranty as to Fitness or Merchantability – in a sale of GOODS, the


seller guarantees that the thing sold is reasonably fit for the known
particular purpose for which it was acquired or that it is of
merchantable quality.

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Extinguishment of Sale (Same causes as all other obligations Legal Redemption – the right to be subrogated, upon the same terms
[PaLoConMerComNo], and by conventional or legal redemption) and conditions stipulated in the contract, in the place of one who
acquires a thing by purchase or dation in payment, or by any other
Conventional redemption – when the vendor reserves the right to transaction whereby ownership is transferred by onerous title.
repurchase the thing sold (1601) A. Under the Civil Code
A. Procedure in redemption – vendor must pay (through tender of i. Sale of a co-owner of his share to a stranger (1620)
payment or consignation) the vendee: ii. When a credit or other incorporeal right in litigation is sold
i. Price of the sale (1634)
ii. Expenses of the contract iii. Sale by heir of his hereditary rights to a stranger
iii. Necessary and useful expenses made on the thing sold iv. Sale of adjacent rural lands
B. Period for the exercise of right of conventional redemption v. Sale of adjacent small urban lands bought merely for
i. If there is an agreement – period cannot exceed 10 years speculation
ii. No agreement as to period – 4 years from date of B. Under Special Laws
contract i. An equity of redemption in case of judicial foreclosures
**However, the vendor may still exercise the right to repurchase within ii. A right of redemption in case of extra-judicial foreclosures
30 days from the time final judgment was rendered in a civil action on
the basis that the contract was a true sale with right of repurchase.

Equitable Mortgage – is one which lacks the formalities, words or other


requisites prescribed by law for a mortgage, but shows the intention of
the parties to make the property as security for a debt.

A conventional redemption is deemed to be an Equitable Mortgage in


any of the following (Art. 1602):
) Price of the sale is unusually inadequate
) Vendor remains in possession as lessee or otherwise
) Period of redemption is extended after expiration
) Purchaser retains part of the purchase price
) Vendor binds himself to pay the taxes of the thing sold
) Any other case where the parties really intended that the
transaction shall secure the payment of a debt or the
performance of an obligation
**In case of doubt, a contract purporting to be a sale with right
of repurchase, or an absolute sale, shall be construed as an
equitable mortgage
***The apparent vendor may ask for reformation of the
contract.

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COMMON CARRIERS – are persons, corporations, firms or associations Art. 1745. Any of the following or similar stipulation shall be considered
engaged in the business of carrying or transporting passengers or unreasonable, unjust, and contrary to public policy:
goods or both, by land, water, or air, for COMPENSATION, OFFERING ) That the goods are transported at the risk of the owner or
THEIR SERVICES TO THE PUBLIC. (1732) shipper;
) That the common carrier will not be liable for any loss,
Diligence Required: destruction, or deterioration of the goods;
1. Extra-ordinary diligence in the vigilance over the goods and for ) That the common carrier need not observe any diligence in the
the safety of the passengers transported according to all custody of the goods;
circumstance of each case. (1733) ) That the common carrier shall exercise a degree of diligence
2. Bound to carry passengers SAFELY as far as human care and less than that of a good father of a family, or of a man of
foresight can provide, using the UTMOST DILIGENCE of VERY ordinary prudence in the vigilance over the movables
CAUTIOUS PERSONS, with a due regard for all the transported;
circumstances. (1755) ) That the common carrier shall not be responsible for the acts or
omissions of his or its employees
Vigilance over Goods – Common carriers are responsible for the loss, ) That the common carrier’s liability for acts committed by
destruction or deterioration of the goods, UNLESS it is due to any of the thieves, or of robbers who do not act with grave or irresistible
following causes only (Art. 1734): threat, violence or force, is dispensed with or diminished;
1. Flood, storm, earthquake, lightning, or other natural disaster or ) That the common carrier is not responsible for the loss,
calamity; destruction, or deterioration of goods on account of the
2. Act of the public enemy in war whether international or civil; defective condition of the car, vehicle, ship, airplane or other
3. Act or omission of the shipper or owner of the goods; equipment used in the contract of carriage.
4. The character of the goods or defects in the packing or in the
containers. Art. 1747 If the common carrier, without just cause, delays the
5. Order or act of competent public authority transportation of the goods or changes the stipulated or usual route,
*N.B: (1) proximate and only cause of the loss; common carrier must the contract limiting the common carrier’s liability cannot be availed
exercise due diligence to prevent or minimize the loss BEFORE, DURING of in case of the loss, destruction, or deterioration of the goods.
and AFTER the occurrence of the natural disaster or calamity
**(2) In all cases except those mentioned in #’s 1-5 of Art. 1734, if the Art. 1749. A stipulation that the common carrier’s liability is limited to
goods are lost, destroyed or deteriorated, common carriers are the value of the goods appearing in the bill of lading, unless the
PRESUMED to have been at FAULT or to have acted NEGLIGENTLY, shipper or owner declares a greater value, is binding.
unless they prove that they observed EXTRAORDINARY DILIGENCE.
Art. 1750. A contract fixing the sum that may be recovered by the
Art. 1744. A stipulation between the common carrier and the shipper owner of the shipper for the loss, destruction, or deterioration of the
or owner limiting the liability of the former for the loss, destruction, or goods is VALID if it is reasonable and just under the circumstances, and
deterioration of the goods to a degree LESS THAN EXTRAORDINARY has been fairly and freely agreed upon.
DILIGENCE shall be valid provided it be:
1. In writing, signed by the shipper or owner Art. 1753. The law of the country to which the goods are to be
2. Supported by a valuable consideration other than the service transported shall govern the liability of the common carrier for their loss,
rendered by the common carrier; and destruction or deterioration.
3. Reasonable, just and not contrary to public policy.

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SAFETY OF PASSENGERS LEASE – CONTRACT by virtue of which one person binds himself to
grant temporarily the use of a thing or to render some service to
Art. 1757. The responsibility of a common carrier for the safety of another who undertakes to pay some rent, compensation or price.
passengers as required in Art. 1733 and 1755 cannot be dispensed with
or lessened by stipulation, by the posting of notices, by statements on Lease of Things:
tickets, or otherwise. 1. One of the parties binds himself to give another the enjoyment
or use of a thing for a price certain and for a period which may
Art. 1758. When a passenger is carried gratuitously, a stipulation be definite or indefinite
limiting the common carrier’s liability for negligence is valid, but not for 2. No valid lease for more than 99 years
willful acts or gross negligence. 3. Consumable goods cannot be subject matter of lease, except:
a. Merely for exhibition OR
The reduction of fare does not justify any limitation of the b. Accessory to an industrial establishment
common carrier’s liability.
Lease of Services – one of parties binds himself to execute a piece of
Art. 1759. Common carriers are liable for the death of or injuries to work or to render a service for a price certain, but the relation of
passengers through the negligence or willful acts of the former’s principal and agent does NOT exist between them
employees, although such employees may have acted beyond the
scope of their authority or in violation of the orders of the common Lease of things Lease of services
carriers. 1. Object of Contract: Thing 1. Object: Work or Service
2. Lessor has to deliver the thing 2. Lessor has to perform some
This liability of the common carriers does not cease upon work or service
proof that they exercised all the diligence of a good father of a family 3. In case of breach – action for 3. In case of breach – NO specific
in the selection and supervision of their employees. specific performance performance

Art. 1760. The common carrier’s responsibility prescribed in the Assignment of Lease – consent of lessor is required, UNLESS there is a
preceding article cannot be eliminated or limited by stipulation, by the stipulation.
posting of notices, by statements on the tickets or otherwise.
Mortgage of Lease Right – no consent needed from lessor.
Art. 1761. The passenger must observe the diligence of a good father
of a family to avoid injury to himself. To bind 3rd persons – lease of real estate must be recorded in the
Registry of Property (1648)
Art. 1762. The contributory negligence of the passenger does not bar ) EXCEPTION: if the buyer knows of the contract of lease or it is
recovery of damages for his death or injuries, if the proximate cause indicated in the deed of sale of the contract of lease.
thereof is the negligence of the common carrier, but the amount of
damages shall be equitably reduced.

Art. 1763. A common carrier is responsible for injuries suffered by a


passenger on account of the willful acts or negligence of other
passengers or of strangers, if the common carrier’s employees through
the exercise of the diligence of a good father of a family could have
prevented or stopped the acts or omission.

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Sublease – ALLOWED, unless expressly prohibited in the contract of Obligations of Lessee (1657)
lease of things (1650) 1. Pay the rent;
1. Lessor cannot go directly to the sub-lessee (privity of contracts) 2. Use the thing leased as a diligent father of a family devoting it
2. Sublessee is SUBSIDIARILY LIABLE to the lessor for: to the use stipulated; absence of stipulation " that which may
a. All acts which refer to the use and preservation of the thing be inferred from the nature of the thing leased, according to
leased in the manner stipulated between the lessor and the the custom of the place;
lessee (1651) 3. Pay expenses for the deed of lease;
b. Any rent due from the lessee BUT the sublessee shall NOT be 4. Notify lessor, within the SHORTEST POSSIBLE TIME, of any
responsible BEYOND the amount of rent due from him in usurpation or untoward act of any 3rd person upon the thing
accordance with the TERMS of the sublease, at the time of leased (1663)
the extra-judicial demand by the lessor. (1652) 5. Notify lessor, with the same urgency, of the need of necessary
repairs (1663)
Obligations of Lessor (1654) *In both #4 and 5, LESSEE shall be liable for DAMAGES, which through
1. Deliver the object of the lease fit for the use intended; his negligence, may be suffered by LESSOR/OWNER.
**cannot ALTER the FORM of the thing as to impair the use to **If LESSOR fails to make urgent repairs, LESSEE, in order to avoid an
which the thing is devoted under the terms of the lease; imminent danger, MAY order the repairs at the LESSOR’s cost. (1663)
2. Make necessary repairs to keep it suitable for the use intended, OR suspend payment of the rent. (NOTIFICATION necessary)
UNLESS there is a stipulation to the contrary; 6. Return the thing leased at the termination of the contract just
3. Maintain peaceful and adequate enjoyment of the lessee for as he received it, save what has been lost or impaired by the
the entire duration of the contract (legal disturbance – one lapse of time or by ordinary wear and tear, or from an
who is disturbing is claiming better right to the property, NOT inevitable cause.
MERE PHYSICAL DISTURBANCE (act of trespass)); a. Law presumes LESSEE received the thing in GOOD
CONDITION, unless there is proof to the contrary (1666)
b. LESSEE responsible for the deterioration/loss of the thing
leased, unless he proves he is NOT at FAULT;
i. Burden of proof does NOT apply when the destruction is
due to a natural calamity (1667)
ii. LESSEE liable for deterioration caused by members of his
household, guests and visitors (1668)

LESSEE may SUSPEND payment of rent in case LESSOR fails to:


1. Make necessary repairs OR;
2. Maintain lessee in peaceful and adequate enjoyment of the
leased property (1658)

Non-compliance by LESSOR or LESSEE of obligations under 1654 and


1657, aggrieved party may ask for:
1. Rescission of contract AND indemnification for damages; OR
2. Payment of damages ONLY, allowing the contract to remain in
force. (1659)

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Necessary Repairs Tacita Reconduccion – implied new lease
1. A dwelling place or any building intended for human ) Elements/Requisites (1670)
habitation is in a condition that its use brings IMMINENT AND 1. Original lease contract has expired;
SERIOUS DANGER TO LIFE OR HEALTH, LESSEE may terminate the 2. Lessee continues possession of the thing for 15 days;
lease AT ONCE EVEN IF: 3. Possession of lessee was with acquiescence of the lessor;
a. He knew of the dangerous condition at the time of the 4. No notice to contrary has been given prior by either party.
perfection of the contract; or
b. Waived the right to rescind the lease on account of this ) Characteristics of NEW lease
condition (1660) 1. Period of the new lease is the time established in Arts. 1682
2. Necessary and urgent repair are needed which CANNOT be and 1687, and NOT for the period of the original contract:
deferred until termination of the lease " LESSEE is OBLIGED to o Art. 1682. Lease of a piece of rural land when its
tolerate the work although it may be VERY ANNOYING to him duration has not been fixed " understood to have
AND although during the same, he may be deprived of a part been made for: all the time necessary for the gathering
of the premises. of the fruits which yield in 1 year
a. Repairs last more than 40 days " rent shall be reduced in o Art. 1687. If the period has not been fixed – understood
proportion to the time – including the first 40 days – and the to be from
part of the property of which the lessee has been deprived; a. Annually – year to year payment of rent
b. Portion that needs work becomes UNINHABITABLE " LESSEE b. Monthly – month to month payment of rent
may RESCIND the contract if the main purpose of the lease c. Weekly – week to week payment of rent;
is to provide a dwelling place for LESSEE. (1662) d. Daily – rental paid daily
*COURTS may fix a longer term after the lessee has occupied the
Termination of the Lease premises for over 1 year.
A. Expiration of the lease contract (1669) **If rent is weekly – courts may extend the period after the lessee has
**If lease was made for a determinate time, it ceases upon the been in possession over 6 months
DAY FIXED, WITHOUT NEED OF A DEMAND. ***Daily rent – courts may extend the period after the lessee has been
B. Total destruction of the thing leased by a fortuitous event in possession over 1 month.
) Partial destruction " LESSEE may choose between: 2. Terms of the original contract shall be REVIVED, BUT NOT
a. Proportional reduction of the rent incidental provisions;
b. Rescission of the lease 3. Obligation contracted by a 3rd person for the security of the
principal contract shall cease.

Causes for Judicial Ejectment (1673)


1. Expiration of period;
2. Non-payment of rent stipulated;
3. Violation of any of the conditions agreed upon in the contract;
4. Devoting the lease premises to any use not stipulated

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Sale of Thing Leased: Art. 1716. An agreement waiving or limiting the contractor’s liability for
1. If lease not recorded in the Registry of Property, BUYER may any defect in the work is VOID if the contractor acted FRAUDULENTLY.
TERMINATE the lease, EXCEPT:
a. There is stipulation to the contrary in contract of sale; OR Art. 1719. Acceptance of the work by the employer relieves the
b. Buyer knows the existence of the lease. contractor of liability for any defect in the work, UNLESS:
i. If buyer terminates the contract of lease, LESSEE may ) The defect is hidden and the employer is not by his special
DEMAND that: knowledge, expected to recognize the same; OR
1. He be allowed to gather the fruits of the harvest ) The employer expressly reserves his rights against the contractor
which corresponds to the current agricultural year; by reason of the defect.
2. The vendor indemnify him for damages suffered.
ii. If the sale is fictitious (just for the purpose of IMPORTANT: Art. 1723. The engineer or architect who drew up the plans
extinguishing the lease, the supposed vendee CANNOT and specifications for a building is liable for damages within 15 YEARS
TERMINATE the contract of lease.) from the completion of the structure, should the same COLLAPSE by
*Sale is presumed fictitious if at the time the supposed reason of a defect in those plans and specifications or due to the
vendee demands the termination of the lease, the sale defects in the ground. The contractor is likewise responsible for the
is NOT RECORDED in the Registry of Property. damage if the edifice FALLS, within the SAME PERIOD, on account of
2. If sale is with a right of repurchase, BUYER cannot eject the defects in the construction or the use of materials of inferior quality
lessee until the end of the period for redemption. furnished by him or due to any violation of the terms of the contract. If
the engineer or architect supervised the construction, he shall be
If LESSEE makes USEFUL IMPROVEMENTS in Good Faith, without altering SOLIDARILY liable with the contractor.
the form or substance of the property leased, upon the termination of 1. Acceptance of the building, after completion, does not imply
the lease, the LESSOR shall: (1678) waiver of any of the causes of action by reason of any defect
1. Pay the lessee ½ of the value of the improvements at that time mentioned in Art. 1723.
(only if the lessor wants to appropriate for himself the 2. The action must be brought within 10 years following the
improvement); OR collapse of the building.
2. Allow the lessee to remove the improvements even though the
principal thing may suffer damage thereby (should lessor refuse
to reimburse the amount) LESSEE shall not however, cause
more impairment upon the property leased than is necessary.

Ornamental Expenses, the lessee shall (1678)


1. NOT be entitled to any reimbursement; BUT
2. May remove the ornamental objects, provided no damage is
caused to the principal thing AND the LESSOR does not choose
to retain them by paying their value at the time the lease is
extinguished.

Contract for a piece of work – the contractor binds himself to execute


a piece of work for the employer, in consideration of a certain price or
compensation. The contractor may either employ only his labor or skill
or also furnish the material.

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Partnership – 2 or more persons bind themselves to contribute money, Kinds of Partners:
property or industry to a common fund (1767) 1. As to liability
1.1. General – can be held liable for partnership obligations
Essential Requisites: even to the extent of their private property (only after all
1. A valid contract partnership properties are exhausted)
2. Parties must have legal capacity to enter into contract 1.2. Limited – cannot be held liable for partnership obligations.
3. Mutual contribution 2. As to contributions
2.1. Capitalist – contributes money or property to common fund
Art. 1768 – the partnership has a juridical personality separate and 2.1.1. Cannot engage in similar business
distinct from that of the partners. 2.2. Industrial – contributes his industry or personal service or skill
2.2.1. Cannot engage in any kind of business – he must
Rules to Determine whether a Partnership exists (1769) focus his energy and attention
1. Except as provided by Art. 1825, persons who are not partners 3. As to management
as to each other are not partners as to 3rd persons 3.1. Managing – manage or administer partnership affairs
2. Co-ownership or co-possession does not of itself establish a 3.2. Silent – no voice in the management of partnership affairs
partnership 4. As to 3rd person
3. Sharing of gross returns does not of itself establish a partnership 4.1. Ostensible – known to the public as a partner
4. The receipt by a person of a share of the profits of a business is 4.2. Secret – connection with partnership is unknown
prima facie evidence that he is a partner in the business, but 4.3. By estoppel or De Facto
no such inference shall be drawn if such profits were received
in payment: General Partner Limited Partner
a. As a debt by installments or otherwise; 1. Can be held liable for partnership 1. Cannot be held liable;
b. As wages of an employee or rent to a landlord; obligations after all partnership 2. Does not participate in
c. As an annuity to a widow or representative of a deceased assets are exhausted; the management;
partner; 2. May participate in the management 3. Can contribute money
d. As interest on a loan, though the amount of payment vary of the partnership; or property only;
with the profits of the business; 3. May contribute money, property or 4. Name does not
e. As the consideration for the sale of a goodwill of a business industry to the common fund; appear in firm name
or other property by installment 4. Name may appear in the firm name; (unless you have same
5. There is limitation on right to engage name of general
Rights of a Partnership: in another business or in same kind partner);
1. It has a personality separate and distinct from partners (1768) of business; 5. No such limitation;
2. It can acquire or possess property (1774)
3. It can acquire obligations (1816) Principle of Delectus Personarium – NO ONE can become a member
4. It can bring actions of the partnership WITHOUT the CONSENT of ALL the partners.
5. It can be adjudged insolvent

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Formalities required in Partnership: Management of the Partnership
1. A partnership may be constituted in ANY FORM, except where 1. Powers of a Managing Partner:
IMMOVABLE PROPERTY or real rights are contributed thereto, in a. Partner appointed MANAGER in the Articles of Partnership
which case a public instrument shall be necessary (1771) " execute ALL ACTS of ADMINISTRATION, despite
2. Contract of partnership is void when immovable property is opposition of his partners, unless he should act in bad faith;
contributed, if inventory of said property is NOT made, SIGNED and his power is irrevocable without just or lawful cause
by the parties, and ATTACHED to the PUBLIC INSTRUMENT (1773) b. Partner granted power AFTER the constitution of the
3. Every contract of partnership having a capital of three partnership " may be REVOKED at ANY TIME (1800)
thousand pesos or more, in money or property, shall appear in 2. If 2 or more partners are entrusted with the management of the
a public instrument, which must be recorded in the Office of partnership, without specification of their respective duties "
the Securities and Exchange Commission. EACH ONE may separately execute all ACTS OF
*Failure to comply with #3 shall NOT affect the liability of the ADMINISTRATION; if ANY ONE of them should OPPOSE the acts
partnership and the members thereof to 3rd persons (1772) of the others " decision of MAJORITY shall prevail, in case of a
tie, the matter shall be decided by the partners owning the
Obligation of Partners among themselves: controlling interest (1801)
1. Contribute equal shares to the capital of the partnership, unless 3. If stipulated that NONE of the managing partners shall act
stipulated to the contrary (1790) without the consent of the others, CONCURRENCE of ALL shall
a. Debtor of partnership be required for validity of the acts; absence or disability of
b. Warranty for eviction ANYONE of them CANNOT be alleged UNLESS there is imminent
2. Industrial partner CANNOT engage IN BUSINESS FOR HIMSELF, danger of grave or irreparable injury to the partnership (1802)
UNLESS the partnership EXPRESSLY permits him to do so (1789) 4. When manner of management has NOT been agreed upon:
3. Capitalist partners CANNOT engage in the SAME BUSINESS of a. All partners shall be considered AGENTS " whatever any
the partnership UNLESS stipulated to the contrary (1808) one of them may do ALONE shall BIND the Partnership
4. In case of imminent loss of the business of the partnership, any without prejudice to Art. 1801 (in case of tie, vote)
partner who REFUSES to contribute ADDITIONAL SHARE to the b. NONE of the partners, WITHOUT the CONSENT of the others,
capital, EXCEPT an industrial partner, to SAVE THE VENTURE shall may make any important ALTERATION in the REAL
be obliged to SELL his interest to the other partners (1791) PROPERTY of the partnership, even if it may be useful to the
5. Partner authorized to manage partnership collects a Partnership; if refusal by the other partners is MANIFESTLY
demandable sum owed to him in his own name and owed to PREJUDICIAL to the interest of the Partnership " court
the partnership (applies only to managing partner) intervention (1803)
o Receipt for his own credit only " sum collected shall be 5. Partnership books shall be kept the PRINCIPAL PLACE of
APPLIED PROPORTIONATELY to the TWO CREDITS; business of the partnership; every partner shall at any
o Receipt was given for the partnership credit only " REASONABLE HOUR have access to and may inspect and copy
amount shall be FULLY APPLIED to the partnership credit any of them (1805)
alone (1792)

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Sharing of Profits and Losses Obligations to 3rd Persons of the Partnership
) Losses and Profits shall be distributed in conformity with the 1. Every partnership shall operate under a FIRM NAME " may or
agreement; may not include the name of 1 or more partners
o If share only in the PROFITS has been agreed upon " share a. Those who are not members of the partnership but
in the LOSSES shall be in the SAME PROPORTION; nonetheless include their name in the firm name " Liable
o Absence of stipulation " share in the profits/losses shall be as a partner (1815)
in proportion to their contribution 2. ALL partners, including INDUSTRIAL ONES, shall be liable PRO
! Industrial partner RATA with all their property after all the partnership assets have
a. Not liable for the losses (EXCEPT obligations to 3rd been exhausted for contracts entered into by the partnership
parties); (1816)
b. Shall receive just and equitable share as to the 3. Any stipulation against the liability laid down in 1816 shall be
profits; VOID, except as among partners (1817)
c. If he contributed capital, he shall receive a share in 4. Every partner is an AGENT of the Partnership for the purpose of
the profits proportionate to his capital (1797) its business; the act of every partner including the execution in
) Designation of shares in profits/losses entrusted to a 3rd person the Partnership name of any instrument " BINDS the
(not including any of the partners) " designation may be partnership, UNLESS the parties so acting in fact:
impugned only if it is manifestly INEQUITABLE a. Has no authority
o If Partnership has begun to execute the decision of the 3rd b. The person with whom he is dealing has knowledge of the
person and the decision is NOT IMPUGNED within 3 months fact that he has NO AUTHORITY (1818)
from knowledge thereof – a partner cannot COMPLAIN of 5. The creditors of the PARTNERSHIP " preferred to creditors of
such decision (estoppel or waiver) each partner with regard to partnership property; private
**Designation of LOSSES and PROFITS CANNOT be entrusted to creditors of each partner may ask the attachment and public
ONE of the PARTNERS (1798) sale of the share of the latter in the partnership assets (1827)
) Stipulation which EXCLUDES one or more partners from ANY
SHARE in the profits or losses is void. Effects of Conveyance by a Partner of His Interest in the Partnership
(Art. 1813)
1. Conveyance of his whole interest " Partnership may either
REMAIN or be DISSOLVED;
2. Assignee DOES NOT necessarily become a partner;
3. Assignee CANNOT interfere in the management or
administration of the partnership business;
4. Assignee CANNOT demand information, accounting and
inspection of partnership books (except during dissolution)

Rights of an Assignee (1813)


1. Receive whatever assignor – partner would have obtained in
terms of profits;
2. Avail of the usual remedies in case of fraud in the
management or administration of Partnership;
3. Ask for the annulment of contract of assignment if he was
induced to join, through any of the vices of consent;
4. Demand for an accounting. (ONLY in case of dissolution)

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Dissolution: the change in the relation of the partners caused by any
partner ceasing to be associated in the carrying of the business (1828) Other Notes:

Winding-Up: the process of settling the partnership affairs after


dissolution.

Termination: the point in time when ALL partnership affairs are wound-
up or completed and it is the END of the partnership.

Order of payment in the winding up of partnership liabilities


) General partnership (1839) (To those owing to:)
1. Creditors other than partners;
2. Partners other than for capital and profit;
3. Partners in respect of capital
4. Partners in respect of profits

) Limited Partnership (1863) (To those owing to:)


1. Creditors in the order of priority provided by law except those
to limited partners on account of their contribution and to
general partners
2. Limited partners in respect to their share of profits and other
compensation by way of income on their contributions
3. Limited partner in respect of their capital contributions
4. General partners other than capital and profits (credits)
5. General partners in respect to profits
6. General partners in respect to capital

Who may wind up the affairs (1836)


Unless otherwise agreed, the partners who have not wrongfully
dissolved the partnership or the legal representative of the last
surviving partner NOT INSOLVENT, has the right to windup the
partnership affairs, provided, that any partner, his legal representative
or his assignee, upon cause shown, may obtain winding up by the
court.

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Agency - a person binds himself to: Art. 1874. Sale of land by agent
) Render some service ) Authority of agent in writing; otherwise, sale is VOID.
) Do something
i. In representation OR on behalf of Art. 1877. Agency couched in general terms (General Power of
1. With the consent or authority of the principal Attorney) " comprises only acts of administration EVEN IF principal
states that:
Requisites: 1. He withholds NO power, OR
1. Consent 2. Agent may EXECUTE acts he may consider appropriate, OR
a. Express 3. Agency authorizes a GENERAL & UNLIMITED MANAGEMENT
b. Implied
i. From the acts of the principal, from his silence or lack of Art. 1878. Special Powers of Attorney are necessary in the following
action, or his failure to repudiate the agency, knowing that cases:
a person is acting on his behalf without authority; (1869) 1. To make such payments as are not usually considered as acts
ii. From the acts of the agent which carry out the agency, or of administration;
from his silence or inaction according to the circumstances 2. To effect novations which put an end to obligations already in
(1870) existence at the time the agency was constituted;
2. Object – execution of a juridical act in relation to a 3rd person; 3. To compromise, to submit questions to arbitration, to renounce
3. Cause/Consideration – presumed for compensation, unless proven the right to appeal from a judgment, to waive objections to the
to the contrary (1875); venue of an action or to abandon a prescription already
4. Agent acquired;
a. Acts as representative of the principal 4. To waive any obligation gratuitously;
b. Acts within the scope of his authority 5. To enter into any contract by which the ownership of an
immovable is transmitted or acquired either gratuitously or for a
Agent must Act: valuable consideration;
1. Within the scope of his authority (1881) 6. To make gifts, except customary ones for charity or those
a. Acts conducive to the accomplishment of the purpose of the made to employees in the business managed by the agent;
agency; (1881) 7. To loan or borrow money, unless the latter act be urgent and
b. Authority is NOT considered EXCEEDED if performed in a indispensable for the preservation of the things which are under
manner MORE ADVANTAGEOUS to the principal than that administration;
specified by him (1882) 8. To lease any real property to another person for more than one
2. In behalf of his principal (1882) year;
3. In accordance with instructions of his principal (1887) 9. To bind the principal to render some service without
compensation;
Art. 1873. 10. To bind the principal in a contract of partnership;
) A person: 11. To obligate the principal as a guarantor or surety;
a. Specially informs another 12. To create or convey real rights over immovable property;
b. States by public instrument 13. To accept or repudiate an inheritance;
i. Duly authorized agent (power of attorney) 14. To ratify/recognize obligations contracted before the agency;
1. The principal can revoke the special power of attorney 15. Any other act of strict dominion.
in the same way it was given (specially inform
another/states by public advertisement)

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Q. Can an agent appoint a substitute? Obligations of the Agent:
A. Yes, an agent MAY APPOINT a substitute/sub-agent 1. Bound by his acceptance to carry out the agency; liable for
Exception: PROHIBITED by the principal (1892) damages through his non-performance the principal suffers (1884)
Effect " AGENT responsible for the acts of the substitute WHEN: 2. In case he declines an agency " bound to observe the Diligence
1. He was NOT given the power to appoint one; OR of a Good Father of a Family in the custody and preservation of
2. He was given such power but without designating the person, the goods forwarded to him by the owner (1885) " send them
and the person appointed was NOTORIOUSLY INCOMPETENT OR back or return them to principal
INSOLVENT. 3. IF STIPULATED, agent shall advance the necessary funds;
*ALL ACTS OF THE SUBSTITUTE WHEN PROHIBITED BY THE PRINCIPAL " EXCEPTION: principal is insolvent (1886)
VOID 4. Act in accordance with instructions of the principal; in default
thereof " do what a Good father of a family would do, as
Effects of Agents’ Acts: required by the nature of the business (1887);
1. With Authority of the Principal 5. Not to carry out agency if its execution would manifestly result in
a. In principal’s behalf " VALID; principal is bound; loss or damage to the principal (1888);
b. In agent’s behalf " NOT binding on the principal; 6. Liable for damages, if there being a conflict of interests, agent
i. Agent is directly bound in favor of the other person with prefers his own over that of the principal (1889)
whom he contracted; 7. Agent empowered to borrow money " he may be the LENDER; if
ii. Principal has no right of action against the person with authorized to lend money at interest " he CANNOT BORROW it
whom agent transacted and vice-versa. WITHOUT the CONSENT of the principal (1890) – due to possible
*EXCEPTION: contract involves things belonging to the conflict of interest
principal. 8. Render an account of his transactions; deliver to the principal
**Without prejudice to the actions between the principal whatever he receives by virtue of the agency, even though not
and agent. owing to the principal; stipulation that the agent is EXEMPT from the
2. Without authority of the Principal obligation to render an ACCOUNT " VOID (1891);
a. In principal’s behalf " unauthorized and UNENFORCEABLE. 9. GR: Stop the agency
Exception: RATIFIED by principal (1910) EXCEPTION: Finish the business already begun on the death of the
b. In agent’s behalf " VALID as between agent and 3rd person. principal should delay entail any danger (1884)

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Obligations of the Principal: Extinguishment of Agency (EDWARD):
1. Comply with all the obligations which the agent may have 1. Expiration of the period;
contracted within the scope of his authority (1910) 2. Death, Civil interdiction, Insanity/Insolvency of principal OR agent;
*N.B. Principal is NOT BOUND when agent exceeded his power. 3. Withdrawal of the agent;
EXCEPTIONS: 4. Accomplishment of the object or purpose of the agency;
a. Principal RATIFIES contract, expressly or tacitly; 5. Revocation
b. Principal SOLIDARILY LIABLE with agent if he allowed the latter 6. Dissolution of the firm, which entrusted
to act as though he had full powers (1911)
2. Advance to the agent amount necessary for the execution of Art. 1927. Agency CANNOT be Revoked if:
agency; reimburse if agent advanced the amount, even if 1. A bilateral contract depends upon it;
undertaking was NOT successful; reimbursement " include interest 2. It is the means of fulfilling an obligation already contracted;
on the sums advanced by agent (1912) 3. A partner is appointed manager of a partnership and his
3. Indemnify the agent for all damages he may suffer, without the removal from the management is unjustifiable.
fault or negligence on the part of the agent (1913)
*N.B. agent may retain in PLEDGE object of agency " until
reimbursement/indemnification by principal based on 1912 & 1913.

Art. 1916. When 2 persons contract with regard to the same thing, one
with the agent and the other with the principal and the 2 contracts
are incompatible with each other " that of the PRIOR DATE shall be
PREFERRED; principal to pay DAMAGES to 3rd person whose contract
was rejected; if agent acted in BF " he ALONE shall be liable to the 3rd
person (without prejudice to Art .1544 NCC)

*IF contract is entered into almost at the same time by the agent and
by the principal, the contract entered into by the agent shall be
preferred due to the contract of agency between the two. (principal
should not compete)

Commission Agent: one engaged in the sale of goods for a principal


“on consignment”, such goods placed in his possession and at his
disposal.

Guaranty Commission or “del credere” – fee given to an agent for the


risk he has to bear in the collection of credits for the principal; agent
becomes an INSURER of the credit and the principal, the INSURED. (“All
items are considered sold”)

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CREDIT TRANSACTIONS (Loan, Deposit, Guaranty, Pledge, Mortgage, Distinguish:
Antichresis, Quasi Contracts) Commodatum Mutuum
1. Non consumable things; if 1. Money or other
LOAN consumable: purpose is not consumable thing
A. Commodatum (purpose is use) – one of contracting parties delivers consumption but exhibition 2. May be gratuitous or
to another a non-consumable thing so the other may use the same 2. Essentially gratuitous onerous
for a certain time and RETURN the same (Exception: It may be a 3. Borrower must return the same 3. Borrower need to pay the
consumable thing if it is only for exhibition) thing loaned same amount of the same
1. Ordinary – cannot demand return at once as the purpose has 4. May involve real or personal kind and quality
to be fulfilled or the time has to expire (1933) property 4. Money or personal
2. Precarium – when bailor can demand the return at once (1947) 5. Loan for use or temporary property only
a. Bailor can demand return of the thing when: possession 5. Comply with period
i. Neither the duration nor the use of the thing has been 6. Bailor may demand return of agreed upon, more so if
stipulated thing before the expiration of the stipulated
ii. Use of thing is merely tolerated by the owner term in case of urgent need 6. Loss is suffered by bailee,
*Bailor – owner of property 7. Loss of thing suffered by bailor even through fortuitous
**Bailee – borrows property 8. Purely personal in character event, because there was
(1939) transfer of ownership – pay
B. Mutuum (purpose is consumption) – one of the contracting parties a. Death of other parties back
delivers to the other money or any consumable thing subject to extinguishes commodatum 7. Bailee suffers the loss even
the condition that the same amount of the same kind and quality b. Bailee can neither lend/lease if cause by a fortuitous
be paid and returned. the object to a 3rd person event and he is not
Exception: members of bailees’ absolved from obligation
Art. 1934. An accepted promise to deliver something by way of household may use to pay
commodatum or simple loan is binding upon parties but perfected Exception to exception: 8. Not purely personal in
only upon delivery of the thing. 1. Stipulation to the contrary character
2. Nature of the thing forbids such
use

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Obligations of Bailee: Principles in Mutuum
1. Pay ordinary expenses for the use and preservation of the thing
(1941) 1956. No interest shall be due unless it has been expressly stipulated in
2. Pay ½ of extraordinary expenses arising in the occasion of writing. (Any later agreement not stipulated cannot be collected)
actual use by the bailee if he acted without fault unless there is
a stipulation to the contrary (1949) 1959. Without prejudice to Art 2212, interest due and unpaid shall not
3. Liable for the loss of the thing caused by a fortuitous event if earn interest. However, the contracting parties may by stipulation
he/she: (1942) (IMPORTANT) capitalize the interest due and unpaid, which as added principal shall
a. Devotes the thing to any purpose different from that for earn new interest (compounding of interest)
which it has been loaned;
b. Keeps it longer than the period stipulated or after the 2212. Interest due shall earn LEGAL INTEREST from the time it is judicially
accomplishment of the use; demanded, although the obligation may be silent upon this point.
c. Lends or leases the thing to a 3rd person who is not a (12%. Also applies to judgment of the court upon becoming final and
member of his household; executor)
d. Being able to save either the thing borrowed or his own
thing, he chose to save his own;
e. Thing loaned has been delivered with appraisal of its value.

Obligations of the Bailor


1. Refund extra ordinary expenses for preservation of the thing
loaned provided the bailee brings the same to the knowledge
of the bailor before incurring them.
Exception: they are so urgent that reply to the notification
cannot be awaited without danger
2. Indemnify bailee for damages caused by the flaws in the thing,
if he knew of the flaws and did not advise the bailee of the
same (1951) (Otherwise, bailee may retain the object under
legal pledge if he is not indemnified)

1944. Right of Retention of Bailee


) General Rule: Bailee CANNOT RETAIN the thing loaned on the
ground that the bailor owes him something
) Exception: Damages suffered by bailee based on Art. 1951

1952. Bailor CANNOT EXEMPT himself from payment of


damages/expenses by abandoning the thing to the bailee

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DEPOSIT – is constituted from the moment a person receives a thing DISTINGUISH
belonging to another with the obligation of safely keeping it and Extra-Judicial Deposit Judicial Deposit
returning the same. (1962) 1. Constituted by the will of the 1. Constituted by court order
1. Perfected only upon delivery of the thing (1963) contracting parties 2. May be movable or
2. May be constituted judicially or extra-judicially (1964) 2. Must be movable property only immovable
3. Gratuitous contract, except (1965): 3. For safekeeping 3. Protection of owner’s rights
i. Agreement to the contrary; 4. As a general rule: Gratuitous 4. Always onerous
ii. Depositary is engaged in the business of storing goods; 5. Depositary obliged to return the 5. Delivered to depositor only
4. Only movable things may be the object; thing upon demand of depositor upon order of the court
5. May be entered into orally or in writing (1969)
Obligations of the Depositary:
A. Judicial (sequestration) " attachment or seizure of property in 1. To keep the thing safely.
litigation is ordered (2005); 2. Not to use it except when preservation of the thing requires its
B. Extra-Judicial " made by agreement of the parties. use.
a. Voluntary – made by the will of the depositor; made by 2 or 3. To keep the secret of the deposit.
more persons each of whom believes himself entitled to the 4. To return the thing with all its products, accessories and
thing deposited with a 3rd person, who shall deliver it in a accessions upon depositor’s demand.
proper case to the one whom it belongs (1968)
b. Necessary – made: Obligations of the Depositor:
i. In compliance with a legal obligation; 1. If gratuitous " to reimburse the depositary for necessary
ii. On the occasion of any calamity; expenses for preservation (1992)
iii. By travellers in hotels or inns (1998); 2. If onerous " pay the price agreed upon.
iv. By travellers with common carriers (1736) 3. To reimburse depositary for loss arising from the character of
the thing deposited.
DISTINGUISH EXCEPTIONS:
Deposit Commodatum a. If at the time of the deposit, the depositor was NOT aware
1. For safekeeping 1. Use of the thing or was not expected to know the dangerous character of
2. Nature or class of the object is 2. Non-consumable thing the thing deposited; OR
immaterial 3. Always gratuitous b. Unless he notified the depositary of the same; OR
3. May or may not be gratuitous 4. Constituted extra-judicially c. The depositary was aware of it without advice from the
4. May be constituted judicially only depositor (1993)
or extra-judicially
Art. 1973.
General Rule: Depositary CANNOT deposit the thing with a 3rd person.
Exception: Stipulation ALLOWING deposit with a 3rd person.
Effects:
1. Depositary is LIABLE for the loss if he deposited the thing with a
person who is:
a. MANIFESTLY CARELESS; OR
b. UNFIT
2. Depositary is RESPONSIBLE for the negligence of his employees
(Vicarious Liability or Imputed Negligence)

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Responsibility of Innkeepers: Art. 1988. Thing deposited must be RETURNED to the depositor upon
1. Innkeepers are LIABLE as depositaries for effects brought by demand, even if a specified period for such return has been fixed.
guests, provided: (BOTH REQUISITES MUST CONCUR) (1998) ) Exceptions:
a. Notice was given to them/their employees 1. Thing is judicially attached while in the possession of the
b. The guests/travellers took the precautions they were depositary.
advised to take as to the care and vigilance of their effects 2. Depositary is notified of the opposition of a 3rd person to the
2. Hotel-keeper is LIABLE for the vehicles, animals and articles return/removal of the thing deposited.
placed in annexes of the hotel. (i.e. parking lot) (1999) *Depositary must IMMEDIATELY inform the depositor of the
3. Liability for loss or injury to personal property of guests applies attachment or opposition to the return to depositor.
whether caused by:
a. Servants or employees of the hotel Art. 1989. Unless deposit is for valuable consideration, if depositary has
b. Strangers (2000) justifiable reasons for not keeping the thing deposited " return the
EXCEPTIONS: thing to the depositor:
i. Force Majeure (2000); ) If depositor refuses to accept " depositary may consignate
ii. Act of Thief or Robber the thing in court.
1. WITH use of arms (2001); OR
2. Through an irresistible force Art. 1974. Depositary may change the way of deposit " Depositary
must notify the owner and await his (depositor’s) decision "
Art. 1979. Depositary is LIABLE for the LOSS of the thing deposited EXCEPTION: delay would cause danger to the thing deposited.
through a FORTUITOUS EVENT if:
1. It is so stipulated; Art. 1975. Depositary of certificates, bonds, securities and instruments
2. He uses the thing without depositor’s permission; earning interests " bound to collect interests when they fall due and
3. He delays its return; preserve their value.
4. He allows others to use it even though he himself may have
been authorized to use the same. Art. 1970. Depositary capacitated/Depositor Incapacitated
Effects:
Art. 1984. Depositary CANNOT demand that depositor prove his 1. Depositary shall be subject to ALL obligations of a depositary.
ownership of the thing deposited. 2. Depositary may be compelled to return the thing by the
) Should he discover that the thing has been stolen and who the guardian, administrator or by the depositor himself if he
true owner is: acquires capacity.
a. He must advise the owner (rightful owner, not the depositor)
of the deposit. Art. 1971. Depositary Incapacitated/Depositor Capacitated
b. If owner does not claim the thing within a period of 1 month Effects:
i. Depositary shall be relieved of all responsibility by 1. Depositor only has an action to return the thing deposited while
returning the thing deposited to the depositor; still in the possession of depositary.
) If depositary has reasonable grounds to believe the thing has 2. Compel the depositary to pay depositor the amount which has
not been lawfully acquired by the depositor " Depositary may benefited/enriched the former with the thing or its price.
return the same to the depositor 3. If a 3rd person who acquired the thing acted in BF, then the
depositor shall bring the action against the 3rd person and not
the depositary.

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Art. 1994. Depositary may RETAIN the thing in pledge until the full GUARANTY
payment of what may be due him by reason of the deposit.
Guaranty – an accessory contract whereby a person called the
Art. 1995. Deposit is Extinguished: guarantor, binds himself to the creditor to fulfill the obligation of the
1. Loss/destruction of the thing deposited. principal debtor IN CASE THE LATTER SHOULD FAIL TO DO SO [2407 (1)]
2. In case of a gratuitous deposit, upon the death of either the
depositor or the depositary. Surety
) A contract whereby a person called the surety binds himself
Art. 2002. Hotel-keeper is NOT LIABLE for compensation if loss is due to: SOLIDARILY with the principal debtor
1. Acts of the guest, his family, servants or visitors ) No benefit of excussion, creditor can go against you at once
2. Based on the character of the thing – perishable goods
Guarantor Surety
Art. 2003. Hotel-keeper CANNOT FREE himself from responsibility by: 1. Subsidiarily liable 1. Primarily & absolutely liable
1. Posting notices to the effect that he is NOT liable for the articles 2. Pays if debtor cannot pay 2. Pays if debtor does not pay
brought by the guests; 3. Insurer of debtor’s SOLVENCY 3. Insurer of the DEBT
2. Any stipulation to that effect between hotel-keeper and guest 4. Guarantor can invoke defense 4. Cannot invoke benefit of
is VOID. of benefit of excussion excussion

Art 2004. Hotel-keeper may RETAIN things brought in the hotel by Principles in Guaranty:
guests " as a SECURITY for credits on account of lodging and supplies 2408. Guaranty is gratuitous, unless there is a stipulation to the contrary.
usually furnished to hotel guests.
2052. A guaranty cannot exist without a valid obligation; guaranty
may be constituted to guarantee the performance of a VOIDABLE or
an UNENFORCEABLE contract or a NATURAL obligation

2053. A guaranty may also be given as security for FUTURE debts, the
amount of which is not yet known; there can be no claim against the
guarantor until the debt is liquidated. A conditional obligation may
also be secured.

2054. A guarantor may bind himself for LESS but NOT for MORE than the
principal debtor, both as regards the amount and the onerous nature
of the conditions.

Should he have bound himself for more – his obligation shall be


reduced to that of the debtor.

2055. A guaranty is NOT PRESUMED; it must be express and CANNOT


EXTEND to more than what is stipulated therein

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2056. Qualifications of a guarantor: Continuing Guaranty:
a. Possesses integrity; ) NOT limited to a single transaction;
b. Has the capacity to bind himself; ) Contemplates a future course of dealing covering a series of
c. Has sufficient property to answer for the obligation which he transactions, generally for an indefinite time or until revoked;
guarantees; ) Prospective in application; generally intended to provide
d. Is subject to the jurisdiction of the court of the place where the security with respect to future transactions within certain limits;
obligation is to be complied with. contemplates a succession of liabilities for which as they
accrue, the guarantor becomes liable.
EXCUSSION " Right of the guarantor to have the property of the
debtor exhausted first before guarantor can be made liable to the Guarantor who Pays for Debtor MUST be INDEMNIFIED by the latter
creditor (2058). (2066) (TIED)
) Requisites (2060): 1. Total amount of the debt;
1. Set it up against the creditor upon the latter’s demand for 2. Interests (legal) from the time payment was made known to
payment from him; AND the DEBTOR even though it did not earn interest for the creditor;
2. Point out to the creditor available property of the debtor in 3. Expenses incurred by the guarantor after
the Philippines sufficient to cover the amount of the debt 4. Damages, if they are due.
**If creditor is negligent in exhausting the property of the
debtor " creditor shall suffer the loss to the extent of said Effects of Payment by Guarantor:
property for the insolvency of the debtor arising from such 1. Guarantor pays with the knowledge of the debtor:
negligence (2061) a. Guarantor subrogated to all the rights which the creditor
had against the debtor (2067)
Guarantor not entitled to excussion when: (2059) (RUSIA) i. If guarantor has compromised with creditor, he cannot
1. Guarantor has expressly renounced the benefit of excussion demand from the debtor MORE than what he has paid;
2. It would be useless if it may be presumed that an execution on ii. Compromise between creditor and debtor will not be
the principal debtor’s property would not result in the prejudicial to the guarantor; it will be beneficial to both
satisfaction of the obligation of them.
3. Guarantor has bound himself solidarily with the principal debtor 2. Guarantor pays without knowledge of debtor:
4. Principal debtor has become insolvent a. Debtor may enforce against him ALL defenses he could set-
5. Principal debtor has absconded or cannot be sued up against the creditor at the time of payment (2068);
b. If debt was for a period and payment was made before it
Additional Instances When Guarantor Not Entitled to Excussion When: was due, guarantor cannot demand reimbursement from
) The guaranty is in a judicial bond; no longer a guarantor, but a debtor until the expiration of the period.
surety i. EXCEPTION: Debtor has ratified
) The guarantor has not pointed to the properties of the principal 3. If debtor REPEATS the payment made by the Guarantor, the
debtor within the Philippines; latter has NO remedy against the debtor but only against the
) The principal debt is a natural, voidable or unenforceable CREDITOR.
obligation; a. EXCEPTION: In case of fortuitous event when Guarantor was
prevented from advising debtor of the payment and
creditor becomes insolvent, the debtor shall reimburse the
guarantor for the amount paid (2070)

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Extinguishment of Guaranty: Pledge " is a contract by virtue of which the debtor delivers to the
1. Same grounds as extinguishment of ordinary obligations (2076) creditor or to a 3rd person (2093) MOVABLES (2094) or documents
2. Principal debt is extinguished; evidencing incorporeal rights such as negotiable instruments, bills of
3. Creditor voluntarily accepts immovable or other property in lading, shares of stocks, bonds, or warehouse receipt (2095) for the
payment of the debt, even if he should afterwards lose the purpose of securing the fulfillment of a principal obligation (2085), with
same through eviction (2077); the understanding that when the obligation is fulfilled and the loan has
4. Creditor grants an EXTENSION to the debtor WITHOUT the been paid the obligation of the pledgee is to return the thing that has
consent of the Guarantor – because it will be onerous for the been pledged together with the fruits and the accessions.
guarantor if time is extended (IMPT)
**N.B. mere failure of the creditor to demand payment from Characteristics: (RASU)
the debtor after the debt became due DOES NOT of itself 1. Real – perfected not merely by consent but by delivery of the
constitute any EXTENSION of TIME referred to herein (2079) thing pledged.
5. When by any act of the creditor the guarantors cannot be 2. Accessory – has no independent existence on its own and is
subrogated to the rights, mortgages, preferences of the latter, dependent on a principal obligation
therefore the guaranty is extinguished. 3. Subsidiary – obligation only arises when there is fulfillment of the
principal obligation
4. Unilateral – creates an obligation on the creditor to return the
thing pledged after the fulfillment of the obligation
Article 2084 A judicial chorva…
Kinds of Pledge:
1. Voluntary/Conventional – created by agreement of the parties
2. Legal – created by operation of law (2121)
a. Art. 546. Necessary expenses shall be refunded to every
possessor; but only the possessor in GF may retain the thing
until he has been reimbursed therefor.
1. Useful expenses shall be refunded only to the possessor
in good faith with the same right of retention, the
person who has defeated him in the possession having
the option of refunding the amount of the expenses or
of paying the increase in value, which the thing may
have acquired by reason thereof.
2. Right to reimbursement of necessary and useful
expenses, and right to retain until paid (Legal pledge)
b. Art. 1731. He who has executed work upon a movable has
a right to retain it by way of pledge until he is paid.
c. Art. 1994. The depositary may retain the thing in pledge
until the full payment of what may be due him by reason of
the deposit.
d. Art. 1944. The bailee cannot retain the thing loaned on the
ground that the bailor owes him something even though it
may be by reason of expenses. However, the bailee has a
right of retention for damages mentioned in Art. 1951.

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Essential Requisites of Pledge and Mortgage (2085): Art. 2097. With the consent of the pledgee, the thing pledged may be
1. They be constituted to secure the fulfillment of a principal alienated by the pledgor or owner, SUBJECT to the pledge; ownership
obligation; of the thing pledged " transmitted to the vendee/transferee as soon
2. The pledgor or mortgagor be the absolute owner of the thing as pledgee consents to the alienation, but pledgee shall continue in
pledged or mortgaged; possession of the thing pledged.
3. The persons constituting the pledge or mortgage have the free
disposal of their property, and in the absence thereof, that they Obligations of the Pledgee:
be legally authorized for the purpose. 1. Take care of the thing pledged with diligence of a good father
4. When the principal obligation becomes due, the thing given of a family; has a right to reimbursement of expenses for
by way of pledge or mortgage may be alienated for the preservation; liable for its loss or deterioration (2099);
payment to the creditor (2087) 2. Cannot deposit the thing pledged with a 3rd person (2100);
Exception: stipulation authorizing him to do so.
Pledge Mortgage Effect: pledgee is responsible for acts of his agents/employees
1. Constituted on Movables 1. Constituted on immovable and with respect to the thing pledged.
(2094) alienable real rights imposed 3. Bring any action which pertain to the owner of the thing
2. Property pledged is placed upon immovable (2124) pledged in order to recover it from, or defend it against a 3rd
in the possession of the 2. Delivery of the property person (2103);
creditor or of a 3rd person by mortgaged to creditor is NOT 4. Cannot use the thing pledged without authority of the owner;
common agreement (2093) necessary. Exception: Preservation of the thing requires its use but for that
3. NOT VALID against a 3 rd 3. NOT VALID against 3rd persons if purpose only (2104)
person unless a description not registered in the Registry of "Use/misuse of the thing by pledgee " owner may ask that it
of the thing pledged and Property; VALID and BINDING be judicially or extra-judicially deposited with a 3rd person.
the date of the pledge between the parties even if the 5. Bound to advise the pledgor, without delay, of any danger to
appear in a public instrument is NOT recorded in the thing pledged (2107);
instrument (2096) the Register of Deeds 6. Without fault of the pledgee and there is danger of destruction,
impairment or diminution in value of the thing pledged " he
Pactum Commisorium " a stipulation whereby the thing may cause the thing to be sold at a public sale, proceeds of
pledged/mortgaged or under antichresis shall AUTOMATICALLY which shall be the security for the principal obligation. (2109)
become the property of the creditor in case of default in the payment
of the debt within the agreed period; forbidden by law and Obligations of the Pledgor:
considered null and void. 1. Pay the principal obligation, including interests, if any (2105);
2. Pay the expenses incurred by the pledgee for the preservation
Art. 2089. A pledge or mortgage is INDIVISIBLE, even though the debt of the thing (2105);
may be divided among the successors in interest of the debtor or of 3. Pay for damages incurred by the pledgee for flaws of the thing
the creditor. and its deterioration for which pledgee has not been advised
of.
Gen Rule: FULL PAYMENT of the debt to extinguish the pledge or
mortgage.
Exception: There being several things given in pledge or mortgage,
each one of them guarantees only a determinate portion of the credit
" extinguishment of the pledge/mortgage as the portion of the debt
which each thing is specially answerable is satisfied.

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Requisites for the Sale of Thing Pledged (2112): Extinguishment of the Pledge:
1. Credit has not been satisfied in due time; 1. Thing pledged is RETURNED by the pledgee to the
2. Creditor/pledgee process before a notary public for the sale in pledgor/owner " any stipulation to the contrary is VOID (2110)
a public auction; 2. Statement in writing by the pledgee that he RENOUNCES OR
3. Debtor is notified of the place, date and time of the public sale ABANDONS the pledge (2111);
and the amount for which the sale is to be held; a. Acceptance by pledgor/owner
4. 1st auction, No Sale " 2nd auction sale with the same formalities b. Return of the thing pledged to pledgor " NOT NECESSARY
as 1st sale; " pledgee becomes depositary
5. 2nd auction, No Sale " creditor/pledgee may appropriate the 3. Sale of the thing pledged in a public auction based on Art.
thing pledged and give debtor a quittance for his ENTIRE DEBT. 2112 and Art. 2122;
(WHATEVER PROCEEDS YOU GET FROM THE AUCTION SALE, 4. Payment of the principal obligation by pledgor/owner or 3rd
“quits na agad” [full payment or less than entire debt]) person before redemption of the thing pledged (2118)

Art. 2113. At the public auction, pledgor/owner may bid Art. 2122. A thing under pledge by operation of law may be SOLD only
" pledgor has a better right if he should offer the same terms after demand of the amount for which the thing is retained. The
" pledgee may also bid, but his offer shall not be valid if he is the only PUBLIC AUCTION shall take place within ONE MONTH after such
bidder. demand. If WITHOUT just ground, the creditor does NOT cause the
public sale to be held within such period, the debtor may require the
Art. 2114. All bids at the public auction shall offer to pay the purchase RETURN of the thing.
price at ONCE.

Art. 2115. Sale of the thing pledged " extinguishes the principal
obligation whether or not the proceeds of the sale are EQUAL to the
amount of the principal obligation.
1. Proceeds of the sale more than the amount of obligation "
debtor not entitled to the excess; (EXCEPT: upon stipulation of
the parties)
2. Proceeds of the sale is less than the amount of obligation "
creditor not entitled to RECOVER the deficiency.
**IN Pledge, there is no redemption or right of redemption. Legal
redemption is only for mortgage.

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REAL ESTATE MORTGAGE EQUITY OF REDEMPTION
1. Contract whereby the debtor secures the fulfillment of a " Right of the MORTGAGOR to REDEEM the mortgaged property
principal obligation, specially subjecting to such security an AFTER his DEFAULT in the performance of the conditions of the
IMMOVABLE property or real rights over immovable property in mortgage but BEFORE the sale of the mortgaged property OR BEFORE
case the principal obligation is NOT complied with at the time confirmation of the sale.
stipulated;
2. Must appear in a public instrument duly recorded in the RIGHT OF REDEMPTION
Registry of Property to bind 3rd parties; " Right of MORTGAGOR to REDEEM the mortgaged property within a
3. Even if NOT recorded in the RD " BINDING between the certain period AFTER it was SOLD for the satisfaction of mortgage debt.
parties. " To be exercised within 1 year from REGISTRATION of the SALE.

Art. 2130. A stipulation forbidding the owner from alienating the REQUISITES for a VALID REDEMPTION:
immovable property mortgaged shall be VOID. 1. Redemption within 12 months from registration of the sale;
2. Payment of purchase price of the property + 1% interest/month
FORECLOSURE OF MORTGAGE: computed from the date of registration of the sale;
1. Remedy available to mortgagee by which he subjects the 3. Written notice of redemption served on the officer who made
mortgaged property to the satisfaction of the obligation the sale " Sheriff and a duplicate filed with Registry of Deeds
secured to which the mortgage was given;
2. Denotes the procedure adapted by mortgagee to terminate CHATTEL MORTGAGE " contract by virtue of which personal property is
the rights of the mortgagor including the public sale itself. Must recorded in the Chattel Mortgage Register as a security for the
notify mortgagor plus hearing. performance of an obligation.

JUDICIAL FORECLOSURE: " If there is excess, creditor must return


1. Governed by Rule 68 of the Rules of Court; " If there is less, creditor may ask for deficiency
2. Bringing an action for that purpose in the RTC of the province
or city where the real property or any part thereof, lies; DISTINGUISH
3. Action quasi in rem " based on a personal claim against a Chattel mortgage Pledge
specific real property of the defendant 1. Delivery of personal property to the 1. Delivery to pledgee of
4. Result or incident of failure to pay the indebtedness; mortgagee NOT necessary; personal property is
5. Survives the death of the mortgagor. 2. Registration in the Chattel Mortgage REQUIRED;
Register is necessary for its VALIDITY; 2. Registration in the
EXTRA-JUDICIAL FORECLOSURE: 3. Procedure for the sale of the thing Registry of Property NOT
1. Governed by Act. 3135, as amended (Real estate mortgages); given as security found in Sec. 14 of NECESSARY;
2. Express authority given to mortgagee to sell the real property; Act. No. 1508, as amended; 3. Procedure for the sale of
3. Conferred for mortgagee’s protection; 4. If the property is foreclosed " the thing pledged found
4. Prerogative of the mortgagee; excess over the amount due goes in Art. 2112 of Civil Code
5. An ancillary stipulation supported by the same consideration to the " debtor; if there is 4. “Quits Agad” – Proceeds
for the mortgage, hence, forms an essential part of the bilateral deficiency " creditor is entitled to of sale, equal or less
contract. RECOVER deficiency from debtor. amount of obligation,
EXCEPTION: RECTO LAW extinguishes it. Creditor is
5. Subject: BOTH (Chattel Mortgage not entitled to deficiency
and Pledge) PERSONAL PROPERTY and debtor to excess.

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ANTICHRESIS " CREDITOR acquires the right to receive the FRUITS of an DISTINGUISH
IMMOVABLE of his debtor, with the obligation to apply them to the Antichresis Real Estate Mortgage
payment of the interest, if owing, and thereafter to the principal of his 1. Real property delivered to the 1. Debtor retains possession of
credit. (2132) creditor; real property;
2. Creditor acquires only the right 2. Creditor does NOT have the
Art. 2134. The amount of the principal and of the interest shall be to receive the fruits of the right to receive the fruits for
specified in WRITING, otherwise " contract of antichresis is VOID. property " does NOT produce the property but REM
a REAL RIGHT; creates a REAL RIGHT over
Art. 2135. The CREDITOR, unless there is a stipulation to the contrary, is 3. Creditor has obligation to the property " enforceable
OBLIGED to: apply the fruits to the payment against the whole world;
1. PAY the taxes and charges upon the estate; of interest, if owing, and to the 3. No such obligation on the
2. BEAR the expenses necessary for its preservation and repair. principal of the credit; part of the mortgagee
*Sums spent for these purposes shall be deducted from the FRUITS. 4. Creditor must pay taxes and 4. No such obligation
** GR: DEBTOR cannot reacquire the possession of his own property charges upon the estate
without paying the full amount owing to the creditor. 5. Subject: BOTH (Antichresis and
Exception: For the creditor to be exempt from these obligations, Real Estate Mortgage) REAL
creditor MAY, allow the DEBTOR to enter again upon the PROPERTY
enjoyment of the property, except when there is a stipulation to
the contrary (2136)

Art. 2137. The creditor does NOT acquire the ownership of the real
estate for non-payment of the debt within the period agreed upon.

Every stipulation to the contrary shall be VOID. But the


creditor may petition the court for the payment of the debt or sale of
the real property

" Rules of Court on foreclosure of real estate mortgage shall apply.

DISTINGUISH
Antichresis Pledge
1. Object – real property 1. Object – personal property
2. Perfected by mere consent or 2. Real contract – there must
a Consensual contract be delivery

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QUASI-CONTRACTS C. Obligations of Officious Manager:
1. Perform his duties with Diligence of a Good Father of a Family;
Negotiorum Gestio 2. Pay the damages which thru his fault or negligence may be
1. Whoever VOLUNTARILY TAKES CHARGE of the agency or suffered by the owner of the property or business under
management of the business or property of another, without management; Court may increase or moderate indemnity
any power from the latter, is obliged to CONTINUE the same according to circumstances.
until the TERMINATION of the affair and its incidents, or to 3. Cannot delegate his duties to another person, OTHERWISE "
require the person concerned to SUBSTITUTED him, if the OWNER he shall be liable for the acts of the delegate, without
is in a position to do so (2144) prejudice to the direct obligation of the delegate to the owner
2. This juridical relation DOES NOT ARISE WHEN: A 2144 of the business – this is one case that you cannot delegate
a. The property or business is NOT neglected or abandoned " because you already took over the property and the business
unauthorized contract without the consent and authority of the owner.
b. In fact, the manager has been tacitly/impliedly authorized **Responsibility of 2 or more officious managers " SOLIDARY,
by the owner " agency UNLESS the management was assumed to save the thing or
c. Ratification of the management by the owner of the business from imminent danger (2146)
business " express agency A 2149 4. Officious manager LIABLE for Fortuitous Event IF he: (2147)
a. Undertakes risky operations which the owner was not
A. Obligations of the Owner (2150) accustomed to embark upon;
1. Liable for obligations incurred in his interest; b. Preferred his interest to that of the owner;
2. Reimbursement of the officious manager for all necessary and c. Fails to return the property or business after demand by the
useful expenses and for the damages suffered by the latter in owner;
the performance of his duties d. Assumed the management in Bad Faith.
5. EXCEPT when the management was assumed to SAVE the
B. Obligations of Owner Apply: property or business from IMMINENT DANGER, officious
1. Although officious management NOT expressly ratified BUT manager shall be LIABLE for Fortuitous Event IF:
owner of property or business enjoys advantages of the same; a. He is MANIFESTLY UNFIT to carry on the management.
2. Management had for its purpose the prevention of an b. By his intervention he PREVENTED a MORE COMPETENT
imminent and manifest loss although no benefit may have person from taking up the management.
been derived; 6. Personally LIABLE for contracts which he has entered into with
3. No benefit has been derived and there has been no imminent 3rd persons, EVEN THOUGH he acted in the name of the owner;
and manifest danger to the property or business, PROVIDED: NO RIGHT of action between owner and 3rd persons, These
a. Officious manager has acted in GF; provisions shall not apply if: (1252)
b. Property or business is intact, ready to be returned to a. Owner expressly or tacitly ratified the management
owner. b. Contract refers to things owned by owner of the property.

Extinguishment of Management (A 2153) D. Extinguishment of Management (2153)


1. Owner Repudiates… 1. Owner repudiates it or puts an end thereto;
2. O manager withdraws… 2. Officious manager withdraws from the management;
3. death, civil interdiction… 3. Death, civil interdiction, insanity or insolvency of owner of
officious manager

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SOLUTIO INDEBITI (2154)
1. If something is received when there is no right to demand it,
and it was unduly delivered thru mistake, the obligation to
return it arises.
2. Payment by reason of a mistake in the construction or
application of a doubtful or difficult question of law.
3. Payer was in doubt whether debt was due, he may recover if
he proves that it was not due.

Art. 2157. Responsibility of 2 or more payees of payment NOT DUE "


SOLIDARY

Art. 2159. He who in BF accepts an UNDUE PAYMENT " SHALL:


1. Pay legal interest if money is involved;
2. Liable for fruits received/should have been received if thing
produces fruits
3. Answerable for loss/impairment for any cause
4. Liable for damages to the person who delivered the thing until
it is recovered

Art. 2171. Finder of Lost Personal Property " Arts. 719 & 720
**Finder of Movable
" Return to previous possessor
" If previous possessor unknown, deposit with mayor
" Publication for 2 consecutive weeks within the
premises of the city hall
" If thing is perishable, it may be sold at public auction
8 days after publication (depends on the discretion of
the mayor);
" If thing is NOT perishable, 6 months after publication.

a. Owner did NOT appear " thing/value of the thing awarded to


finder;
b. Owner appeared " 1/10 of the price of thing to finder;
c. Finder/owner " obliged to reimburse the expenses (by the
local govt.)

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QUASI-DELICTS " whoever by act or omission causes damage to Art. 2185. Driver of motor vehicle presumed negligent " if at the time
another, there being fault or negligence, is obliged to pay for the of mishap, he was violating any traffic rules and regulations.
damage done. Such fault or negligence, if there is NO pre-exiting
contractual relation between the parties, is called a QUASI-DELICT. Art. 2188. Prima facie presumption of negligence on the part of the
defendant if the death or injury results from his possession of dangerous
Elements: weapons or substances, such as firearms and poison, except when the
1. Act or omission (there must be a relationship with element #2) possession or use thereof is indispensable in his occupation or business.
2. Damage to another;
3. Existence of fault or negligence Res Ipsa Loquitur " the thing or transaction speaks for itself.
4. No pre-existing contractual relation between parties (general *Defendant presumed negligent when:
rule) 1. The accident was of a kind which does not ordinarily occur
unless someone is negligent
Negligence 2. Instrumentality or agency which caused the injury was under
" The omission to do something which a reasonable man, guided by exclusive control of the person charged with negligence;
those considerations which ordinarily regulates the conduct of human 3. Injury suffered not due to any voluntary action on the part of
affairs WOULD DO; the person injured.
" Doing something which a prudent and reasonable man would NOT 4. Absence of explanation by the defendant.
DO; ) Defense: due diligence
" Failure to observe for the protection of the interest of another ) It is a rule of evidence that shifts the burden because it is difficult to
person that degree of care, precaution and vigilance whereby some pinpoint exactly who was negligent.
other person suffers (Picart vs. Smith)

Proximate Cause " is that cause which, in the natural and continuous Contributory Negligence (2179) – A party does not create the danger,
sequence, unbroken by any efficient and intervening cause, produces but merely participated by aggravating the danger. If not for the
the injury and without which the result would not have occurred. opposing party, there would not have been an accident.
1. General Rule: when plaintiffs own negligence was the
Last Clear Chance " where both parties are negligent but the immediate and proximate cause of his injury, he cannot
negligent act of one is appreciably later than that of the other, the recover damages.
one who has the last reasonable opportunity to avoid the impending 2. Exception: but if his negligence was only contributory, the
harm and fails to do so, is chargeable with the consequences of the immediate and proximate cause of the injury being the
loss without reference to the prior negligence of the other party. defendant’s lack of due care, the plaintiff may recover
(Picart vs. Smith) damages, but the courts shall mitigate the damages to be
awarded.
Art. 2184. Motor vehicle mishap
" OWNER is SOLIDARY LIABLE with his driver if the former, Assumption of Risk " a plaintiff who voluntary assumes a risk of harm
1. was in the vehicle; arising from the negligent or reckless conduct of the defendant
2. could have, by use of due diligence, prevented the misfortune. CANNOT RECOVER from such harm.
*Driver disputably presumed negligent " if found guilty of reckless
driving OR violation traffic regulations at least TWICE within the next Afiada v Hisole
preceding 2 months. ! Caretaker of carabaos – which gored him – so the owners were
sued by the elder sister

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! NCC states that the possessor of the animal is liable for the 3rd 3. Owner and Manager in Establishments
parties the animal damages but may be invoked only by a. Employees
strangers & an employee is not a stranger b. In the service of their branches doing their function
! In this case, he is the possessor so that provision will not apply 4. Employers
! SC characterized his position as in control over the animals – he a. Employees and household helpers;
assumed the risk b. Acting within the scope of their assigned tasks;
! A possessor of an animal cannot raise the defense of due c. Even if employers are NOT engaged in any business or
diligence because the law says so. industry.
5. State
“Volenti Non Fit INJURIA” " one who is not legally injured if he has a. Acts of SPECIAL AGENTS ONLY. [Special agent – anybody
consented to the act complained of or was willing that it should occur. specially assigned by the state not necessarily in the scope
(NIKKO HOTEL MANILA GARDEN vs. ROBERTO REYES, GR 154259, FEB. 28 of his official duties – if done negligently, the state will be
– Amay Bisaya case “gatecrasher” " exposed himself to danger even liable (Art 2189)]
if no negligence b. If a public official does his duty negligently, the state WILL
NOT BE LIABLE (Art 2180)
Damnum Absque Injuria " Damage without legal injury; Although,
there was physical damage, there was no legal injury as there was no Spouses Fontanilla v Malianman et al MR
violation of legal right – therefore, not entitled to any amount of ! NIA cited prior case which the SC stated that the Irrigation
damages/compensation. Authority does not solely perform proprietary functions & is
an agent of the government
Emergency/Sudden Peril Doctrine ! SC rebuked this for in this decision, there is a strong dissent
" Applicable only IF; which is now adopted – even if irrigation is a sovereign
1. Emergency situation is sudden and unexpected function, it is really proprietary – there is no exercise of
2. Is such as to deprive the actor of all opportunity for deliberation sovereign power
o In sovereign power – it is mandatory
Action based on Quasi-Delict (PRESCRIPTION) " must be instituted o In proprietary – it is optional
within 4 years. *If the state is acting in a proprietary manner, it is not necessary
that the tortuous act be done by a special agent. The tort can
Imputed Negligence " one who did not commit the act or omission be committed by any official, even by a special agent.
causing damage to another can still be civilly liable directly or **If the state is acting in sovereign capacity, it is necessary that
subsidiarily, because you will be the one accountable for acts of it is acting through a special agent.
persons under your own control and supervision. (like vicarious liability)
Emergency Peril Doctrine - you hit a car because 6. Teachers or Heads of establishment of Arts and Trades (not
Art. 2180. Vicarious Liability you swerved to not hit a person limited to establishments of arts and trades anymore)
" Liability for acts or omission of persons for whom one is responsible. a. For pupils, students or apprentices;
1. Father, in case of death or incapacity, the MOTHER b. While in their custody;
a. Damage caused by minor children; c. Applies to academic institutions also " teacher in charge
b. Living in their company will be the one liable
2. Guardian *DEFENSE: observance of the Diligence of a Good Father of a Family to
a. For minors or incapacitated persons; prevent the damage.
b. Under his custody;
c. Living in their company

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Art. 2190. Proprietor of a building or structure " liable for damages DAMAGES " is the sum of money which the law awards or imposes as
resulting from its total or partial collapse due to lack of necessary pecuniary compensation, recompense or satisfaction for an injury
repairs. done or a wrong sustained as a consequence either of a breach of a
contractual obligation or a tortious act; pecuniary consequences
Art. 2191. Proprietors liable for damages caused by: which the law imposes for the breach of some duty or the violation of
1. Explosion of machinery and inflammation of explosive some right. It is the money that you pay to the injured party, it is the
substances; compensation for any violation of that contract, or any violation of his
2. Excessive smoke harmful to persons; rights.
3. Falling trees situated near highways or lanes, if not caused by
force majeure; Damage (root) Damages (fruit)
4. Emanations from tubes, canals, sewers or deposits of infectious The loss, injury or deterioration Compensation in money for
matter, constructed without precaution suitable to the place by negligence, design or the loss or damage
accident of one person to
Art. 2193. Head of family living in a building " liable for damages another in respect to
caused by things thrown or falling from the same. another’s property
**Damage is the occasion of the Damages

Kinds of Damages:
A. Actual/Compensatory " adequate compensation for such
pecuniary loss suffered by a person as he has duly proved. " shall
comprehend not only the value of the loss suffered but also that of
the profits which the obligee failed to obtain. (2200)

Art. 2205. Damages may be recovered:


1. For loss or impairment of earning capacity in cases of
temporary or permanent personal injury;
2. For injury to plaintiff’s business standing or commercial credit.

Art 200 – value of the loss suffered but also the profits which the
obligee failed to obtain
! Contemplates actual damage – damnum emergens
! Contemplates lost profits – profits that you would have
foregone because of the injury committed to you – lucrum
cessans
o Can be extended to lost income
But in both kinds of damages – prove:
! Prove pecuniary loss – the value of the thing actually lost
! Lost profits – historical receipts of business, pay slip from work

Damages for Death:


1. Death indemnity
2. Loss of earning capacity

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3. Support – if there is people that you are supporting
4. Moral damages

B. Moral Damages " include physical suffering, mental anguish,


fright, serious anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation and similar injury (2217)

C. Nominal Damages " are adjudicated in order that a right of the


plaintiff, which has been violated or invaded by the defendant,
may be vindicated or recognized and not for the purpose of
indemnifying the plaintiff for any loss suffered by him. (2221)
D. Temperate or Moderate " more than nominal but less than
compensatory damages; may be recovered when the court finds
that some pecuniary loss has been suffered but its amount cannot,
from the nature of the case, be proved with certainty. (2224)
" must be reasonable under the circumstances (2225)

E. Liquidated Damages " those agreed upon by the parties to a


contract to be paid in case of breach thereof (2226) – no need to
prove actual damages suffered, just show contract before the
court that you have an agreement as to the liquidated damages
in case there is a breach in the terms and conditions of the
agreement.

F. Exemplary or Corrective
• General Rule: Litigant does not get this, it is given by the
court based on sound judgment and discretion of the court
• Imposed by way of example or correction for the public
good in addition to moral, temperate, liquidated or
compensatory (2229)
• In Criminal Cases – if there is already an aggravating
circumstance
• In Contracts and Quasi-Contracts " defendant acted in a
wanton, fraudulent, reckless, oppressive or malevolent
manner (2232).
**Exemplary Damages cannot be recovered as a matter of right but
discretionary on the part of the court.
***If you want to waive - stipulation renouncing exemplary damages in
advance are considered null and void.

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