Article 1106.

“By prescription, one acquires ownership and other real rights through the lapse of time in the
manner under the conditions laid down by law.

In the same way, rights and actions are lost by prescription.”

Prescription is defined as a mode of acquiring or losing ownership and other real rights through lapse
of time in the manner and under the conditions laid down by law, namely, that the possession should be:

a. In the concept of the owner

b. Public
c. Peaceful
d. Uninterrupted
e. Adverse1

Acquisitive prescription is either ordinary or extraordinary. Ordinary acquisitive prescription requires

possession in good faith and with just title for ten years. In extraordinary prescription, ownership and
other real rights over immovable property are acquired through uninterrupted adverse possession
thereof for thirty years without need of title or of good faith.

Acquisitive Prescription

Requisite:

1. Capacity to acquire by prescription

2. A thing capable of acquisition by prescription
3. Possession of the thing under certain conditions
4. Lapse of time provided by law

Extinctive Prescription

“Prescription of actions” or “limitation of actions”

It refers to the time within which an action may be brought, or some act done, to preserve a right. As
an effect, lapse of time extinguishment of the action

“Statute of limitations”

Are acts limiting the time within which actions shall be brought. It does not confer any right of action,
but are enacted to restrict the period within which the right, otherwise unlimited, might be asserted. They
are not matters of substantive right, but are available only as defenses.

Its purpose is to protect the diligent and vigilant, not those who sleep on their rights.

Retroactivity of prescription

1
J. Edgardo Paras. Civil Code of the Philippines Annotated Prescription Obligation and Contacts. 18 ed. (2017) 1
The acquisition of ownership or other real rights through prescription is retroactive. Once the period is
completed, the new owner is considered as having acquired the thing or right from the moment the period
began to run. 2

Estoppel

Article 1431

“An admission or representation is rendered conclusive upon the person making it, and cannot
be denied or disproved as against the person relying thereon.”

Concept:

A bar which precludes a person from denying or asserting anything to the contrary of that which
has, in contemplation of law, been established as truth, either by the acts of judicial or legislative officers
or by his own deed or representation, either expressed or implied.

Kinds of Estoppel:

Estoppel by Record

Is the preclusion to deny the truth of matters set forth in record, whether judicial or legislative,
and also to deny the facts adjudicated by a court of competent jurisdiction.

Estoppel in Pais (Equitable estoppel)

It arises when one, by his acts, representations or admissions, or by his silence when he ought to
speak out, intentionally or through culpable negligence, induces another to believe certain facts to exist,
and such other rightfully relies and acts on such belief, so that he will be prejudiced if the former is
permitted to deny the existence of such facts.

Estoppel by Deed

Is a bar which precludes one party to a deed and his privies from asserting as against the other
party and his privies any right or title in derogation of the deed, or from denying the truth of any material
facts asserted in it.

Art. 1436: A lessee or a bailee is estopped from asserting title to the thing leased or received, as against
the lessor or bailor.

Elements in relation to the party sought to be estopped:

1. Conduct amounting to false representation or concealment of material facts, or at least calculated

to convey the impression that the facts are otherwise than, and inconsistent with, those which
the party subsequently attempts to assert.

2
Atty. Lulu Reyes. Obligation and Contracts Notes. (2011)
 2. Intent or at least expectation that this conduct shall be acted upon by, or at least influence, the
other party.
3. Knowledge, actual or constructive, of real facts.

Elements in relation to the party claiming the estoppel:

1. Lack of knowledge or of the means of knowledge of the truth as to the facts in question
2. Reliance, in good faith, upon the conduct or statements of the party to be estopped
3. Action or inaction based thereon of such character as to change the position or status of the party
claiming the estoppel, to his injury, detriment or prejudice.

Kinds of Estoppel

1. By Representation/Positive Acts

a. Art. 1434: When a person who is not the owner of a thing sells or alienates and delivers it, and later the
seller or grantor acquires title thereto, such title passes by operation of law to the buyer or grantee.

Subsequent Acquisition of Title: A person who sells property when he did not have title to it,
cannot deny validity to the sale after he has acquired the title. The vendee is also deemed a purchaser in
good faith.

b. Art. 1435: If a person in representation of another sells or alienates a thing, the former cannot
subsequently set up his own title as against the buyer or grantee.

c. Art. 1437: When in a contract between third persons concerning immovable property, one of them is
misled by a person with respect to the ownership or real right over the real estate, the latter is precluded
from asserting his legal title or interest therein, provided all these requisites are present:

a) There must be fraudulent representation or wrongful concealment of facts known to the party
estopped;
b) The party precluded must intend that the other should act upon the facts as misrepresented;
c) The party misled must have been unaware of the true facts; and (4) The party defrauded must
have acted in accordance with the misrepresentation.

Estoppel Against Owner: The rule is that the title to a land or real property may pass by an equitable
estoppel, which is effectual to take the title to land from one person and vest it in another where justice
requires that such an action be done.

2. By Admission

A party may be estopped to insist upon a claim, assert an objection, or take a position which is
inconsistent with an admission which he has previously made and in reliance upon which the other party
has changed his position.

Limitations:

a) It cannot cure the constitutionality of admission of guilt made extra-judicially without Miranda
warning.
 b) It cannot create civil status or legal relationship between persons unless made in accordance with
the Family Code.

3. By Promise (Promissory Estoppel)

An estoppel may arise from the making of a promise, even though without consideration, if it was
intended that the promise should be relied upon, and in fact it was relied upon, and if a refusal to enforce
it would be virtually to sanction the perpetuation of fraud or would result in other injustice.

4. By Silence

An estoppel may arise under the circumstances of silence and inaction.

“One who is silent when he ought to speak will not be heard to speak when he ought to be silent.”
Mere innocent silence will not work an estoppel. There must also be some element of turpitude or
negligence connected with the silence by which another is misled to his injury.

5. By Acquiescence

It is closely related to estoppel by silence. In estoppel by acquiescence, a person is prevented from

maintaining a position inconsistent with one in which he has a acquiesced.

6. Estoppel from Benefits

Art. 1438: One who has allowed another to assume apparent ownership of personal property for
the purpose of making any transfer of it, cannot, if he received the sum for which a pledge has been
constituted, set up his own title to defeat the pledge of the property, made by the other to a pledgee who
received the same in good faith and for value.

Application:

Applicable to a case where the owner of personal property has allowed another to assume
apparent ownership of the thing for the purpose of making any transfer of it, and the latter pledges it to
a third person who receives the same in good faith and for value. The person is precluded from setting up
his own title to defeat the pledge of the property if he received the sum for which the pledge has been
constituted.

Principle:

The receipt of the sum for which the pledge has been made, estops the party benefited from
questioning the validity and effectiveness of the matter or transaction.

Even if benefits not received by owner:

Notwithstanding the fact that the owner never received the proceeds of the pledge, he may be
estopped from questioning the pledge if he clothed the agent with apparent authority to dispose of it and
when the person setting up the estoppel acted and parted with value or extended credit on the faith of
such apparent ownership or authority.
 7. Estoppel by Laches

Laches defined:

Is failure or neglect, for an unreasonable and unexplained length of time, to do that which, by
exercising due diligence, could or should have been done earlier. It is a negligence or omission to assert a
right within a reasonable time, warranting a presumption that the party entitled to assert it either has
abandoned or declined to assert it.

It binds those who are lazy in exercising their rights, but the inaction must be UNEXPLAINED so
that delay must not be justified by a valid cause.

Elements:

a) Conduct on part of the defendant, or of one under whom he claims, giving rise to the situation
complained of.
b) Delay in asserting complainant’s rights after he had knowledge of the defendant’s conduct and
after he has had an opportunity to sue.
c) Lack of knowledge or notice on the part of the defendant that the complainant would assert the
right on which he bases his suit.