ATENEO
CENTRAL
'A
BAR OPERATIONS 2019
JORGE ALFONSO C. MELO
Bar Review Coordinator
LEILA S. LIM
Bar Review Secretariat
ATENEO CENTRAL BAR OPERATIONS
PATRICK EDWARD BALISONG
Chairman
KATRINA Y. COSCOLLUELA
GENiCA THERESE ENDALUZ
JONATHAN VICTOR NOEL
JOHN STEPHEN PANGILINAN
CZARINA CHER CUERPO
BENIGNO ENCISO
Administration Committee Heads
Academics Committee Heads
Hotel Operations Committee Heads
VIVENCIO ABANO
FERDINAND CASIS
J. HECTOR HOFILENA (RET.)
JESS RAYMUND LOPEZ
AMPARITA STA. MARIA
CHRISTINE JOY TAN
TERESA VILLANUEVA-TIANSAY
CIVIL LAW Faculty Advisers
MARIA HAZEL BABELONIA
NINA ALISHA CAPATI
ISABELLE CAPISTRANO
JAMES CUEVAS
RACHELLE ANN L. GO
BERNADETTE LOUISE GUIA
MERYL GUINTU
LYNDON MONTES
NADJA VALERIE MURIA
PATRICE JANE ROMERO
MELAN ANTHONY YAP
CIVIL LAW Subject Heads
ROSEGAIL ABAS
KARLA NIZZA BUTIU
ANA BETTINA CARONONGAN
ALEEZAH GERTRUDE REGADO
JUSTIN NICHOLAS SY
CIVIL LAW Understudies
ATENEO CENTRAL
CIVIL LAW
BAR OPERATIONS 2019
|
4. capacity to
succeed
I. G EN ER A L PR IN C IPLES
A.
Laws on
Forms and
Solemnities
EFFECT AND APPLICATION OF LAWS
Q: Summarize
principles.
the
governing
laws
or
A:
LAW
.....; -................
Penal Laws
Status Laws
(relating to
family
rights and
duties,
status,
condition,
legal
capacity)
Property
Laws
MATTERS/
PERSONS
BOUND
All those
who live or
sojourn in
Philippine
territory
Citizens of
the
Philippines,
even
though
living
abroad
Real and
personal
property
GOVERNING
PRINCIPLE/
DOCTRINE
Principle of
Territoriality:
Lex lo c i
celebrationis:
Law of the
country in
which they are
executed
Exception:
If
executed
before
Philippine
diplomatic
or
consular
officials
abroad,
Philippine laws
shall govern.
Law of the
place where
crime was
committed
Principle of
Nationality:
National law of
the person
Note:
Prohibitive
laws
which
have for their
object
public
order,
public
policy and good
customs shall
not
be
rendered
ineffective
by
laws
or
judgments
promulgated,
or
by
determinations
or conventions
agreed upon in
a
foreign
country.
Lex re i sitae:
Law of the
place where
property is
situated.
Exception:
In intestate and
testamentary
successions, it
is the national
law of the
person whose
succession is
under
consideration,
regardless of
the nature and
location of the
property, with
respect to:
1.
order
of
succession
2. amount of
successional
rights
3.
intrinsic
validity of will
Forms and
solemnities
of contracts,
wills, public
instruments
Q: A foreigner married to a Filipina had a
child. When they divorced abroad, the
foreigner refused to support the child stating
that under his country’s law, they are not
obliged to support a child. Is the foreigner’s
refusal valid?
A: No. While the provisions of the Family Code on
support only apply to Filipino citizens, the
foreigner in this case did not prove his country’s
law before the courts. Thus, the doctrine of
processual presumption applies, that is - if the
foreign law involved is not properly pleaded and
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proved, our courts will presume that the foreign
law is the same as our local or domestic or
internal law. Moreover, the-foreigner’s national
law would not find applicability in our jurisdiction
when such is contrary to an established public
policy of the forum. Prohibitive laws concerning
persons, their acts or property, and those which
have for their object public order, public policy
and good customs shall not be rendered
ineffective by laws or judgments promulgated, or
by determinations or conventions agreed upon in
a foreign country (Del Socorro, v. Van Wilsem,
3.
Locus Actus — place where an act has
4.
Lex
5.
6.
7.
8.
been done;
Fori— place where judicial or
administrative proceedings are instituted
or done;
Place where an act is intended to come
into Effect;
Situs of a thing;
Intention of the parties as to the
governing law;
Flag of a ship. (Saudi Arabian Airlines v.
Court o f Appeals, G.R. No. 122191, 1998
)
G.R. No. 193707,2014 (citing Bank o f America v.
American Realty Corp. G.R. No. 133876, 1999)).
Q: What is the
conveniens?
B, CONFLICTS OF LAW
Q: What are the phases involved in judicial
resolution of conflicts-of-law problems?
A:
1. Jurisdiction;*3
------ 2.— Choice of law;---------------------------------------3. Recognition
and
enforcement
of
judgments. ( Hasegawa v. Kitamura, G.R.
doctrine
of forum
non
A: The doctrine provides that a court, in conflicts
of law cases, may refuse impositions on its
jurisdiction where it is not the most “convenient”
or available forum and the parties are not
precluded from—seeking remedies elsewhere.
(Bank of America v. Court of Appeals, G.R. No.
120135,2003)
No. 149177, 2007)
Q: Under the doctrine of forum non
conveniens, when may a Philippine court or
agency choose to assume jurisdiction?
Q: Define “foreign element.”
A: A foreign element is a factual situation that cuts
across territorial lines and is affected by the
diverse laws of two or more states. ( Saudi
A:
1.
Arabian Airlines v. Court of Appeals, G.R. No.
122191, 1998)
2.
Q: Discuss
contacts.”
3.
the
concept
of
“minimum
A: One basic principle underlies all rules of
jurisdiction in international law, a state does not
have jurisdiction in the absence of some
reasonable basis
it. To be
reasonable, the jurisdiction must be based on
some minimum contacts that will not offend
traditional notions of fair play and substantial
justice. (HSBC v. Sherman, G.R. No. 72494,
Philippine court is one to which the
parties may conveniently resort to;
Philippine court is in a position to make
an intelligent decision as to the law and
the facts; and
Philippine court has or is likely to have
pow er.to enforce its decision. (The
Manila Hotel Corporation v. NLRC, G.R.
No. 120077, 2000)
Q: What is the doctrine of “processual
presumption?”
1989)
A: The doctrine provides that where a foreign law
is not pleaded, or even if pleaded is not proved,
the presumption is that foreign law is the same as
ours. (EDI-Staffbuilders International v. NLRC,
Q: What are the “points of contact?”
G.R. 145587. 2007)
A: The points of contract are: (DRONS-SAFESIF)
1. Domicile, Residence, place of Origin,
Nationality, or place of Sojourn of a
person;
2. Seat of a legal or juridical person;
Q: L, a Filipino and R, a Japanese citizen, were
married in in the Philippines in 2009. They
lived together in Japan. During their married
life, they would constantly quarrel due to R’s
philandering ways. As such, L and R
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submitted a “Divorce by Agreement” before
the city hall in Nagoya City, Japan in 2012.
Can the divorce be recognized under
Philippine Law?
4.
5.
A: Yes, under Art. 26 (2) of the Family Code,
whether the Filipino spouse initiated the foreign
divorce or not, a favourable decree dissolving
their marriage bond and capacitating his or her
alien spouse to remarry will have the same result:
the Filipino spouse will effectively without a
husband or wife. A Filipino who initiated a foreign
divorce proceeding is in the same place and in
like circumstances as a Filipino who is at the
receiving end of an alien initiated proceedings.
The subject provision should not make a
distinction. In both instance, it is extended as a
means to recognize the residual effect of the
foreign divorce decree on Filipinos whose marital
ties to their alien spouses are severed by
operation of the latter’s national law. (Morisono v.
Morisono, G.R. No. 226013, 2018 (citing
Republic v. Manalo, G.R. No. 221029, 2018))
Q: How is divorce acquired in a foreign
country proven in the PH courts for judicial
recognition?
A: In order for a divorce obtained abroad be
recognized in our jurisdiction, it must be shown
that the divorce decree is valid according to the
national law of the foreigner. Both the divorce
decree and the governing personal law of the
alien spouse must be proven. Our courts do not
take judicial notice of foreign laws and judgment,
our law on evidence requires that both the divorce
decree and the national law of the alien must be
alleged and proven like any other fact. ( Koike v.
6.
7.
the appointment of the arbitrator or of the
arbitration proceedings;
Party against whom the award is invoked
was Unable to present his case;
Award deals with a Difference not
contemplated within the terms of the
submission to arbitration;
Composition of the arbitral authority or
the arbitral procedure was not in
accordance with the agreement of the
parties or with the law of the country
where the agreement took place;
Award has not yet become binding on the
parties or has been Set aside or
suspended by a competent authority of
the country in which that award was
made.
Based on the finding of the competent authority:
1. Subject matter is not capable of
settlement by arbitration under the law of
that country;
2. Recognition or enforcement of the award
would be contrary to the public policy of
that country. ( New York Convention on
the Recognition and Enforcement of
Foreign Arbitral Awards, Art. V)
C. HUMAN RELATIONS (ARTICLES 19-221
Q: What are the standards to observe in the
exercise of one’s rights and performance of
duty:
A: (Art. 19)
1. Act with justice
2. Give everyone his due
3. Observe honesty and good faith.
Koike, G.R. No. 215723, 2016)
Q: What are the grounds to reject an arbitral
award?
A: At the request of the party against whom it is
invoked: (ln2-NU-DICS)
1. incapacity of the parties to the
agreement;
2. Invalidity of the agreement under the law
to which the parties have submitted it to
or under the law of the country where the
award was made;
3. Party against whom the award was
invoked was not given proper Notice of
Q: P was employed as an SA Bookkeeper of a
bank since 1977. In 2007, he suffered a mild
stroke
due to
hypertension
which
subsequently impaired
his
ability
to
effectively pursue his work. He wrote a letter
to his employer expressing his intention to
avail of an early retirement package. He was
only 55 years old at this time. His request
remained unheeded. He was separated from
employment in the latter part of 2007 due to
his poor and failing health. Can the abuse of
right doctrine under Art. 21 apply in this case?
A: No. The elements of abuse of right are as
follows: 1) there is a legal right or duty; 2)
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exercised in bad faith; and, 3) for the sole intent
of prejudicing or injuring another. All elements
were not present in this case. Since he was only
55 at the time of his retirement, he fell short with
respect to the 60 year age requirement to be
entitled to the retirement benefits. Hence, there is
no right or duty on the part of the employer to
grant his request. The employer’s denial has
basis and was not exercised in bad faith. Neither
was the intent of the employer to prejudice or
injure P in this case. (Padillo v. Oropeza, G.R. No.
199338, 2013)
Q: What are the 2 requisites for the principle
of unjust enrichment to apply?
A: The two requisites are;
1. that a person is benefited without a valid
basis or justification, and
2. that such benefit is derived at the
expense of another.
The main objdttve of the principle against unjust
enrichment is to prevent one from enriching
himself at the expense of another without just
cause or consideration. (Antonio Locsin II v.
Mekeni Food Corporation, G.R. No. 192105,
December 9, 2013).
Q: W, a Dutch national, and A, a Filipina, are
married. After several years, the Court
declared the nullity of their marriage on the
basis of
the former’s
psychological
incapacity. During the dissolution of their
conjugal properties, A received the parcels of
land they bought during marriage and these
lands were considered as paraphernal
property of A. W claimed reimbursement for
the purchase price of the said parcels of land,
but was denied. W raised unjust enrichment
for not being reimbursed for money spent on
purchase of Philippine land. Can unjust
enrichment be invoked?
A: No, the provision of unjust enrichment does not
apply if the action is proscribed by the
Constitution. An action of recovery of what has
been paid without just cause will not prosper if the
action is proscribed by the Constitution or by the
application of the pari delicto doctrine. Nor would
the denial of his claim amount to an injustice
based on his foreign citizenship. The purpose of
the prohibition is to conserve the national
patrimony which the court is duty bound to
protect. (Beum erv. Amores, G.R. 195670, 2012)
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Q: Can the phrase "prying into the privacy of
another’s residence" under Art. 26 of the Civil
Code be invoked against surveillance of
business office that is located within the same
premises of a person’s residence?
A: Yes, this provision includes "any act of
intrusion into, peeping or peering inquisitively into
the residence of another without the consent of
the latter." It may extend to places where he has
the right to exclude the public or deny them
access. The phrase "prying into the privacy of
another’s residence," therefore, covers places,
locations, or even situations which an individual
considers as private. (Spouses Hing _ v.
Choachuy, Sr., G.R. No. 179736, 2013)
Q: Does Article 28 of the Civil Code prohibit
competition with regard to enterprises?
A: No. What is being sought to be prevented is
not competition per se but the use of unjust,
oppressive or highhanded methods which may
deprive others of a fair chance to engage in
business or earn a living. (Willaware Products
Corp. v. Jesichris Manufacturing Corp., G.R. No.
195549, 2014)
l II. PERSONS AND FAMILY RELATIONS \
A. PERSONS
Q: When is a child considered bom?
A: A child is considered born if it is alive at the
time of its complete delivery from the maternal
womb.
USE OF SURNAMES
Q: Can an illegitimate child use the surname
of his/her father?
A: Yes. Article 176 of the Family Code provides
that illegitimate children shall use the surname
and shall be under the parental authority of their
mother, and shall be entitled to support in
conformity with this Code. However, illegitimate
children may use the surname of their father if
their filiation has been expressly recognized by
the father through the record of birth appearing in
the civil register, or when an admission in a public
document or private handwritten instrument is
made by the father. Provided, the father has the
right to institute an action before the regular
courts to prove non-filiation during his lifetime.
The legitime of each illegitimate child shall consist
of one-half of the legitime of a legitimate child (As
amended by R.A. No. 9225).
ABSENCE
Q: What are the two kinds of absences?
A: Ordinary Absence (CIVIL CODE, ART. 390)
a. 4 years - person presumed dead for
purposes of remarriage of the spouse
present
b. 7 years - presumed dead for all purposes
EXCEPT for those of succession
c. 10 years - person presumed dead for
purposes
of
opening
succession
EXCEPT if he disappeared after the age
of 75, an absence of 5 years is sufficient
EXCEPTION: A fetus it is not deemed born if it
had an intra-uterine life of less than 7 months and
dies within 24 hours after complete delivery from
the womb. (CIVIL CODE, ART. 41)
Q: When do you use the Civil Code in
determining survivorship?
A: When two or more persons are called to
succeed each other and there is absence of proof
as to who died first ( CIVIL CODE, ART. 43).
Whoever alleges the death of one prior to the
other shall prove the same; in the absence of
proof, it is presumed that they died at the same
time and there shall be no transmission of rights
from one to the other (Id.).
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Extraordinary
Absence
(CIVIL
CODE,
ART.391)
a.
b.
c.
If a person rode an airplane or sea vessel
lost in the course of voyage, from the
time of loss of the airplane or sea
vessel
If a person joined the armed forces who
has taken part in war, from the time he
is considered missing in action
Danger
of
death
under other
circumstances,
disappearance
from
time
of
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Q: When does a declaration of absence of a
missing person take effect?
Q: What are the grounds that would warrant a
change of a person’s first name or nickname?
A: 6 months after the publication of the
declaration of absence (CIVIL CODE, ART. 386).
A:
1.
CIVIL REGISTER
2.
Q: What are the matters recorded in the civil
register?
3.
A:
4.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Acts, events and judicial decrees
concerning the civil status of persons
Birth
Marriage
Death
Legal separation
Annulment of marriage
Judgments declaring marriage void from
the beginning
Legitimation
Adoption
Acknowledgement of natural children
Naturalization
Loss of citizenship
Recovery of citizenship
Civil interdiction
Judicial determination
Voluntary emancipation of a minor
Change of name
General Rule: Entries in the civil register may be
changed or altered only upon a judicial order.
Exception: Clerical or typographical errors or
change in the name or nickname can be changed
administratively through verified petition with the
local office of the civil registrar.
Who may file petition: Any person having direct
and personal interest in any act, event, order or
decree concerning the civil status of persons or
change of name.
Q: What are the procedural requirements for a
Petition of Change of Name?
A:
1.
2.
3.
3 years residency in the province where
change is sought prior to the filing
Must not be filed within 30 days prior to
an election
Petition must be verified
5.
Petitioner's true and official name is
ridiculous;
Petitioner’s true and official name is
tainted with dishonor
Petitioner’s true and official name is
extremely difficult to write or pronounce
New first name or nickname has been
habitually and continuously used by the
petitioner and he has been publicly
known by the first names and nicknames
in the community
When the change is necessary to avoid
confusion (Sec. 4, R.A. 9048)
With Judicial
Authority
Matters which may be
made
by
the
concerned
city or
municipal registrar or
consul general (R.A.
9048, as amended
by R.A. 10172):
•
Clerical or
typographical
errors and
change of first
name or
nickname, the
day and month
in the date of
birth, or sex of a
person where it is
patently clear that
there was a
clerical or
typographical
error or mistake
in the entry
•
Petition must be
accompanied by
earliest school
record or
documents such
as but not limited
to medical
records,
baptismal
certificate, and
other documents
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W ithout Judicial
A u th o rity .....
Change of surname
can only be done
through
a
court
proceeding
EXCEPT when the
request for change is
a consequence of a
change
of status,
such as when a
natural
child
is
acknowledged
or
legitimated
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The remedies available to a person whose name
has been usurped are:
1. Civil (insofar as private persons are
concerned)
a. Injunction
b. Damages (actual and moral)
2. Criminal (when public affairs are
prejudiced)
issued by
religious
authorities, nor
shall any entry
involving change _r
of gender
corrected except
if the petition is
accompanied by
a certification
Q: When is the use of another’s name not
actionable?
issued by an
accredited
government
physician
attesting to the
fact that the
petitioner has
not undergone
sex change or
sex transplant
A: When used as stage, screen, or pen name,
provided:
1. Use of name is in good faith; and
2. By using the name of another, no injury
is caused to that person's right
3. When use is motivated by modesty, a
desire to avoid unnecessary trouble, or
other reason not prohibited by law or
morals
NOT nationality, age,
civil status - needs
court order.
Note: R.A. 9048 does not sanction a change of
first name on the ground of sex reassignment.
Rather than avoiding confusion, changing the first
name to make it compatible with the sex he
transformed himself into through surgery may
only create grave complications in the civil
registry and the public interest. (Silverio vs.
Note: R.A. 9048 applies only to clerical and
typographical errors entries of name and does
not modify the rules mentioned above
•
If the correction is clerical: summary
proceeding
•
If the rectification affects the civil status,
citizenship or nationality of a party
(substantial): adversarial proceeding.
B. MARRIAGE
Republic, G.R. No. 174689, 2007)6
6.
When the request for change is a
consequence of a change of status,
such as when a natural child is
acknowledged or legitimated
Q: What is usurpation of name?
Q: What are the essential requisites of
marriage?
A: Legal capacity of the contracting parties who
must be a male and a female; and Consent freely
given in the presence of the solemnizing officer
{FAMILY CODE, ART. 2).
A: Implies some injury to the interests of the
owner of the name. It consists in the possibility of
confusion of identity between the owner and the
usurper. Its elements are:
1. An actual use of another's name by the
defendant
2. Use is unauthorized
3. Use of another's name is to designate
personality or to identify a person
Q: Will the irregularity in the formal requisites
affect the validity of the marriage?
A: No. An irregularity in the formal requisites (i.e.
authority of solemnizing officer, marriage license,
marriage ceremony) shall not affect the validity of
the marriage.
The party responsible for the irregularity shall,
however,
be
civilly,
criminally,
and
administratively liable (FAMILYCODE, ART. 4).
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Q: Is the venue for the celebration of marriage
limited to the chambers of the judge or in
open court, in church, or chapel?
A: No. Art. 8 provides that would-be spouses can
make a written request to the solemnizing officer
for a change in venue.
Q: What is the
Celebrationis?
concept
of
Lex
Loci
A: All marriages solemnized outside the
Philippines, in accordance with the laws in force
in the country where they were solemnized, and
valid there, shall also be valid in this country.
EXCEPTIONS: Contracting party under Phil. Law
a.) has no capacity to marry because of age, is
psychologically incapacitated, because of civil
status (bigamous/ polygamous), is against public
policy, incestuous; b.) no consent due to mistake
in identity, c.) non-compliance with Art. 53, and
d.) void because no solemnization of marriage.
particularly on divorce of Y, because the
books presented were not duly authenticated
by the Philippine Consul in Japan as required
by Sections 24 and 25 of the Rule 132. Is the
RTC correct?
A: Yes. Since our courts do not take judicial notice
of foreign laws and judgment, our law on
evidence requires that both the divorce decree
and the national law of the alien must be alleged
and proven like any other fact. This means that
the foreign judgment and its authenticity must be
proven as facts under our rules on evidence,
together with the alien's applicable national law to
show the effect of the judgment on the alien
himself or herself. (Medina v. Koike, G.R. No.
215723, July 27, 2016.)
*Starting May 14, 2019 (Effective date of
the
Apostille
Convention),
Public
documents
executed
in
Apostille­
contracting countries and territories
(except for Austria, Finland, Germany
and Greece) to be used in the Philippines
no longer have to be authenticated bv the
P h ilip p in e E m b a s s y
or
Consulate
General once apostillized.
(FAMILYCODE, ART. 26).
Q: X and Y, both Filipinos, were married. X
filed for divorce from Y abroad and sought the
settlement of their properties in the same
action. Both were granted by the foreign
court. X subsequently married Z. Are the
divorce and the settlement of property valid?
A: No. X ’s subsequent marriage to Z is void for
being bigamous because the divorce decree
obtained abroad between Filipinos is void under
the nationality rule. (Lavadia vs. Heirs of Luna,
G.R. 171914, 2014).'
Hence, any settlement of property between X and
Y, submitted as an incident of a divorce obtained
in a foreign country lacks competent judicial
approval and cannot be enforceable against the
assets of the husband who contracts a
subsequent marriage.
Q: X, a Filipino citizen, married Y, a Japanese
national. Subsequently, pursuant to the laws
of Japan, they were divorced. X filed a petition
for judicial recognition of foreign divorce and
declaration of capacity to remarry. X
presented
several
foreign
documents,
including a duly authenticated Divorce
Certificate and two books on the Civil Code of
Japan for years 2000 and 2009. The RTC ruled
that X fell short of proving the national law,
Q: X was married to Y, a Japanese citizen. X
and Y submitted a “Divorce by Agreement” in
Japan, which was eventually approved. Thus,
X filed a petition for recognition of the divorce
decree before the RTC, which denied X’s
petition, invoking the nationality principle
under Article 26(2) of the FC. The decision
was grounded on the fact that X admittedly
initiated the divorce proceedings and since X
is a Filipino citizen whose national laws do not
allow divorce, then the divorce decree
obtained in Japan is not binding in the
Philippines. Is the RTCTcorrect? ~
A: No. Pursuant to Republic v. Manalo, foreign
divorce decrees obtained to nullify marriages
between a Filipino and an alien citizen may
already be recognized in this jurisdiction,
regardless of who between the spouses initiated
the divorce; provided that the party proves the
divorce as a fact and demonstrates its conformity
to the foreign law allowing it. In this case, X has
yet to prove the fact of her "Divorce by
Agreement" obtained in Japan, in conformity with
prevailing Japanese iaws on divorce. (Morisono
v. Morisono, G.R. No. 226013, July 2, 2018.)
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Q: There are certain marriages where the
requirement of a marriage license is not
required. What are these marriages?
A:
a.
b.
c.
d.
Art. 27 - where either or both of the
contracting parties are at the point of
death (marriage in articulo mortis)
Art. 28 - where the residence of either
party is so located that there is no means
of transportation to enable such party to
appear personally before the local civil
registrar (marriage in a remote place)
Art. 33 - marriage among Muslims or
among members of the ethnic cultural
communities;
if
solemnized
in
accordance with their customs, rites or
practices.
Art. 34 - marriage of a man and a woman
who have lived together as husband and
wife for at least 5 years and without legal
impediment to marry each other (5-Year
Cohabitation Rule).
Q: When must psychological incapacity
manifest to be a ground for termination of
marriage?
A: Art. 36 provides that psychological incapacity
must appear at the time of the celebration of the
marriage, even if such incapacity becomes
manifest only after its solemnization.
Q: In a case for declaration of nullity of
marriage under Art. 36, the Court denied the
petition on the ground that the expert
opinions on the psychological incapacity of
the wife was solely based on the husband’s
version of the events. Is there a requirement
of personal examination to declare a spouse
as psychologically incapacitated?
A: No. There is no requirement for one to be
declared psychologically incapacitated to be
personally examined by a physician, because
what is important is the presence of evidence that
adequately establishes the party’s psychological
incapacity. Hence, if the totality of evidence
presented is enough to sustain a finding of
psychological incapacity, then actual medical
examination of the person concerned need not be
resorted to. The conclusions reached by the
expert witnesses having been drawn from the
case records and affidavits should not anymore
be disputed after the RTC itself had accepted the
veracity of the factual premises (Kalaw v.
Fernandez, G.R. No. 166357, 2015).
Q: X and Y were married in 1972. Then Y
married Z in 1979. Z filed a declaration of
nullity of marriage against Y on the ground of
bigamy. Meanwhile, Y was able to secure a
judgment declaring the 1972 marriage void
due to the absence of a marriage license. Will
Z’s petition for declaration of nullity of
marriage against Y prosper?
A: No. the requirement of a judicial decree of
nullity
does
not
apply
to
marriages
celebrated before the effectivity of the Family
Code, particularly if the children of the parties
were born while the Civil Code was in force. The
first marriage of Y being void for lack of license,
there was no need for judicial declaration of its
nullity before she could contract the second
marriage with Z. Hence, the second marriage to
Z is valid. Neither can Y be held liable for bigamy.
Moreover, the provisions of the Family Code
cannot be retroactively applied to the present
case, as they would prejudice the vested rights of
Y and the legitimate status of her children under
the Civil Code. (Castillo v. De Leon-Castillo, G.R.
No. 189607, 2016)
For marriages celebrated after the effectivity of
the Family Code, a judicial declaration of absolute
nullity of marriage is expressly required where the
nullity of a previous marriage is invoked for
purposes of contracting a second marriage.
Q: A declaration of nullity of marriage on the
ground of psychological incapacity was filed
by the husband citing his incapacity to
perform marital obligation and that he did not
love his wife and was unprepared to get
married at the time of marriage. Is the
husband psychologically incapacitated?
A: No, Psychological incapacity under Article 36
of the Family Code, must be limited to cases
where there is a downright incapacity or inability
to assume and fulfill the basic marital obligations,
not a mere refusal, neglect or difficulty, much
less, ill will, on the part of the errant spouse. X’s
testimony that he was able to comply with his
marital obligations negates the existence of a
grave and serious psychological incapacity on his
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part. X fulfilled his duty to support and take care
of his family, as he categorically stated that he
loves their children and that he was a good
provider to them. (Republic v. Romero, G.R. No.
209180, 2016)
Q: X and Y got married but eventually parted
ways because of violent fights and jealous
fits. They became even more estranged when
Y became focused on his career and
supported his parents and siblings. Y filed a
petition for declaration of nullity of marriage
on the ground of psychological incapacity to
comply with his essential marital obligations.
Y argued that he married X not out of love but
out of the desire to please the latter's parents
who were kind and accommodating to him. He
also presented a Psychological Evaluation
Report that he was suffering Obsessive
Compulsive Personality Disorder (OCPD),
which made him obsessed with any endeavor
he chooses. Should the petition be granted?
A: No. To warrant the declaration of nullity of
marriage, the psychological incapacity must: (a)
be grave or serious such that the party would be
incapable of carrying out the ordinary duties
required in a marriage; (b) have juridical
antecedence, i.e., it must be rooted in the history
of the party antedating the marriage, although the
overt manifestations may emerge only after the
marriage; and (c) be incurable, or even if it were
otherwise, the cure would be beyond the means
of the party involved. In this case, the medical
report did not establish that Y's incapacity existed
long before he entered into marriage. In such
case, any doubt should be resolved in favor of the
validity of marriage. Marriages entered into for
other purposes, limited or otherwise, such as
convenience, companionship, money, status, and
title, provided thatthey comply with all the legal
requisites, are equally valid. Love, though the
ideal consideration in a marriage contract, is not
the only valid cause for marriage. (Republic v.
Romero II, G. R. No. 209180, February 24, 2016.)
Psychological incapacity under Art. 36 must be
more than just a difficulty, refusal or neglect in the
performance of marital obligations; it is not
enough that a party prove that the other failed to
meet the responsibility and duty of a married
person. There must be proof of a natal or
supervening disabling factor in the person which
must be linked with the manifestations of the
psychological incapacity. (Del Rosario v. D el
Rosario, G.R No. 222541, February 15, 2017)
The gravity, juridical antecedence and incurability
of the psychological incapacity must be proven.
Here, tne-report failed to show that X ’s personality
disorder existed prior the marriage and failed to
explain the juridical antecedence or its
incurability.
A clear
and
understandable
causation between the party’s condition and the
party’s inability to perform the essential marital
Covenants must be shown. (Republic v. Tecag,
G.R No. 229272, November Ip, 2018)
Q: X and Y are husband and wife. X filed a
verified complaint for declaration of nullity of
marriage alleging that Y was psychologically
incapacitated to comply with her essential
marital obligations. X testified, among others,
that after he decidedto join and train with the
army, Y left their conjugal home and sold their
house without X’s consent. Y entered into two
separate relationships with other men. From
the time Y abandoned X, X was left to take
care of their two daughters and he exerted
earnest efforts to save their marriage which,
however, proved futile because of Y’s
psychological incapacity that appeared to be
incurable. Should the marriage be nullified?
A: No. Psychological incapacity, as a ground to
nullify a marriage under Article 36 of the FC,
should refer to no less than a mental — not
merely physical — incapacity that causes a party
to be truly incognitive of the basic marital
covenants thdt concomitantly must be assumed
and discharged by the parties to the marriage
which, as so expressed in Article 68 of the FC,
among others, include their mutual obligations to
live together, observe love, respect and fidelity
and render help and support. It is confined in the
most serious cases of personality disorders
clearly demonstrative of an utter insensitivity or
inability to give meaning and significance to their
marriage. Psychological incapacity must not
merely due to a person’s youth, immaturity or
sexual promiscuity, in this case, the SC found
insufficient factual or legal basis to conclude that
Y ’s emotional immaturity, irresponsibility or even
promiscuity, can be equated with psychological
incapacity. (Republic v. De Gracia, G.R. No.
171557, Feb. 12, 2014).
Q: What are the essential requisites for the
declaration of presumptive death under Art.
41?
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A: (MR-BF)
1. That the absent spouse has been
Missing for four consecutive years, or
two consecutive
years
if
the
disappearance occurred where there is
danger
of
death
under
the
circumstances laid down in Article 391 of
the Civil Code;
2. That the present spouse wishes to
Remarry;
3. That the present spouse has a wellfounded Belief that the absentee is dead;
and
4. That the present spouse Files a
summary proceeding for the declaration
of presumptive death of the absentee.
the resource persons named. Therefore, X ’s
efforts failed to. satisfy the degree of diligence
required to create “a well-founded belief of his
death. (Republic v. Tampus, G.R. No. 214243,
March 16, 2016.)
Q: What are the prescriptive periods for
annulment?
A:
a.
(Republic vs Sarehogon, G.R. No.
199194, 2016 (citing Republic v. Cantor,
G.R. No. 184621, 2013)).
b.
Q: X and Y were married. Y, a member of the
AFP, left X and went to Sulu where he was
assigned. Since then, X heard no news from
Y. After 33 years without communication and
trying everything to locate him such as asking
his parents, relatives, and neighbors about
his whereabouts, and with the firm belief that
he is already dead, X filed a petition to declare
him presumptively dead for purposes of
remarriage. RTC and CA granted the petition
ruling that X exerted efforts to find Y. The
lapse of 33 years coupled with the fact that Y
was sent on a combat mission to Jolo, Sulu
gave rise to X’s well-founded belief that Y was
dead. Is the CA correct?
A: No. There are 4 requisites for the absent
spouse to be declared presumptively dead under
Art. 41; 1) absent spouse missing for 4
consecutive years or 2 consecutive years if the
disappearance occurred where there is danger of
death under circumstances in Art. 391 of CC, 2)
that the present spouse wishes to remarry, 3) that
present spouse has well-founded belief that
absentee is dead, and 4) present spouse filed a
summary proceeding for the declaration of
presumptive death of absentee. Under the third
requisite, the present spouse has to prove that
his/her belief was the result of diligent and
reasonable efforts to locate the absent spouse.
X’s could have called AFP headquarters to
request information about her husband, but failed
to do so. Her testimony as to her efforts were not
corroborated by any additional witness nor were
c.
d.
e.
For no parental consent, by the parent,
guardian, or the person having legal
charge of the contracting party before the
latter reaches 21; for the contracting
party who is below 21, within 5 years after
attaining the age of 21, unless ratified by
cohabitation.
For unsound mind, the sane spouse with
no knowledge of insanity or guardian of
insane spouse at any time before death
of either party or by the insane spouse,
during lucid interval or after gaining
sanity, unless ratified by cohabitation.
Within 5 years after the discovery of
FRAUD, unless ratified by cohabitation.
Within 5 years from the time the vice
disappeared or ceased if the ground is
VITIATION OF CONSENT (i.e. force,
intimidation and undue influence), unless
ratified by cohabitation.
Within 5 years after the celebration of
marriage if the ground is IMPOTENCE or
STD which is found to be serious and
appears incurable ( FAMILY CODE, ART.
47).
C. LEGAL SEPARATION
Q: When does an action for legal separation
prescribe?
A: After five years from the time of the occurrence
of the cause (FAMILY CODE, ART. 57). The time
of discovery of the ground for legal separation is
not material in the counting of the prescriptive
period ( STA. MARIA, Persons and Family
Relations Law 366, 2010).
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D. RIGHTS AND OBLIGATIONS BETWEEN
HUSBAND AND WIFE
Q: Who has the power to fix the family
domicile?
A: Both the husband and the wife. In case of
disagreement, however, the court shall decide.
(FAMILY CODE, ART. 69).
E.
PROPERTY RELATIONS BETWEEN
HUSBAND AND WIFE
Q: What governs property relations between
spouses?
A: Property relations between husband and wife
are governed in the following order: By the will of
the spouses in the marriage settlement: the
Family Code and Local Customs. (FAMILY
CODE, ART. 74) In the absence of a marriage
settlement, or when the regime agreed upon is
void, the system of absolute community of
property shall govern. (FAMILY CODE, ART. 75)
NOTE: Prior to the effectivity of the Family Code
on August 3, 1988, the system of conjugal
partnership of gains governed the property
relations of husband and wife.
Q: What are the requisites for
enforceability of marriage settlements?
the
A: (WSB-TC-CR)
1. In Writing
2. Signed by the parties
3. Executed Before the celebration of
marriage
4. To fix the Terms and conditions of their
property relations
5. If the party executing the settlement is
under Civil interdiction or any other
disability, the guardian appointed by the
court must be made a party to the
settlement
6. Registration (only to bind 3rd persons)
(FAMILY CODE, ART. 77).
Q: In gratitude, the groom’s parents made a
donation of a property in writing to the bride’s
parents shortly before their children’s
wedding. The donation was accepted. What is
the nature of the donation?
A: It is an ordinary donation since it was not given
to the bride or groom. Donations by reason of
marriage or propter nuptias are those made
before its celebration, in consideration of the
same, and in favor of one or both of the future
spouses (FAMILYCODE, ART. 82).
•
Q: Lots A and B are registered in the Torrens
system under the name of Spouses X (wife)
and Y (husband). X sold the lots to Spouses C
and D. X showed them an SPA executed by Y
authorizing her to sell the lots. Even after the
execution of a deed of absolute sale, X did not
turn over the owner’s duplicate copy of lot A
to C and D. The buyers subsequently
discovered that the owner’s duplicate copy
was actually in the possession of the attorney
brother of Y who was given authority by Y to
sell lots A and B. X asked a fake notary public
to notarize the SPA with the forged signature
of Y. Attorney Brother wants to get back the
properties from C and D saying that Art. 124
of the Family Code (FC) should apply. C and
D state that they are buyers in good faith. Can
Attv. Brother still get the lots?
A: Yes, Atty. Brother can still get the lots. Article
124 of the FC states that if case a spouse is
incapacitated or otherwise unable to participate in
the administration of the conjugal properties, the
other spouse may assume sole powers of
administration. These powers do not include
disposition or encumbrance without authority of
the court or the written consent of the other
spouse. In this case, no written authority was
obtained from Y.
In order to be considered as buyers in good faith,
there following diligence must be shown: (a) the
diligence in verifying the validity of the title
covering the property; and (b) the diligence in
inquiring into the authority of the transacting
spouse to sell conjugal property in behalf of the
other spouse. In this case, C and D merely relied
on the SPA given by X and did not do further
questioning despite knowing that the lots were
conjugal property. (Spouses Aggabao v. Dionlsio
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Parulan and Ma. Elena Parulan,
165803, 2010).
G.R. No.
Q: A and B are husband and wife. As such
they bought a house and cohabited therein,
but the title is issued only in the name of the
husband A and the Torrens title indicated that
he was single. The relationship of the spouses
became strained and B filed a case for
concubinage and legal separation against A.
B later learned that her husband had the
intention of selling the property to C, their
neighbor, so B then advised C of the
existence of the case and cautioned C against
buying the property until the cases are closed
and terminated. Nonetheless, A still sold the
property to C, without the consent of B. B
contends that the sale is void as it was
without her consent. C argues that he is an
innocent-purchaser for value and had the
right to rely on the Torrens title. Is C correct?
A: No, the sale is void. One spouse cannot sell
community property without the written consent of
the other spouse or the authority of the court. The
purchaser was not in good faith. While the law
does not require a person dealing with registered
land to inquire further than what the Torrens Title
on its face indicates (Nobleza v. Nuega G.R. No.
193038, March 11, 2015), this rule shall not apply
when the party has actual knowledge of facts and
circumstances that would impel a reasonably
cautious person to make inquiry into the status of
the title of the property, or when the purchaser
has knowledge of a defect or the lack of title in his
vendor. Malabanan v. Malabanan (G.R. No.
187225, March 6, 2019)
Q: D Corp. obtained a loan from C Corp. Mr. X
served as surety for the loan. Since D. Corp.
was unable to pay, Mr. X was ordered by the
court to pay and as such, three of the conjugal
properties of Mr. X were auctioned. It is being
argued that the said properties should not be
levied because the loan did not redound to the
benefit of the family. Is the contention
correct?
A: Yes. If the money or services are given to
another person or entity, and the husband acted
only as a surety or guarantor, that contract
cannot, by itself, alone be categorized as falling
within the context of obligations for the benefit of
the conjugal partnership. The contract of loan or
services is clearly for the benefit of the principal
debtor and not for the surety or his family. No
presumption can be inferred that, when a
husband enters into a contract of surety or
accommodation agreement, it is for the benefit of
the
conjugal
partnership. Proof must be
presented to establish benefit redounding to the
conjugal partnership (Ayala Investment v. CA,
G.R. No. 118305, 1998, reiterated in Security
Bank v. Mar Tierra Corp. G.R. No. 143382,
2006)).
Q: What constitutes Conjugal Partnership of
Gains?
A: (FOLCHIC)
1. Fruits of conjugal property due or
received during the marriage and net
fruits of separate property
2. Those acquired through Occupation
3. Livestock in excess of what was brought
to the marriage
4. Those acquired during the marriage with
Conjugal funds
5. Share in Hidden treasure
6. Those obtained from labor, Industry,
work or profession of either or both
spouse
7. Those acquired by Chance (FAMILY
CODE, ART. 117).
Q: What are exclusive properties of spouses
in a Conjugal Partnership of Gains?
A: (OGRE)
1. That which is brought to the marriage as
his or her Own;
2. That which each acquires during the
marriage by Gratuitous title;
3. That which is acquired by right of
Redemption, by barter or by exchange
with property belonging to only one of the
spouses; and
4. That which is purchased with Exclusive
money or wife of the husband (FAMILY
CODE, ART. 109).
Q: Solomon sold his coconut plantation to
Aragon, Inc. for P100 million, payable in
installments of P10 million per month with 6%
interest per annum. Solomon married Lorna
after 5 months and they chose conjugal
partnership of gains to govern their property
relations. When they married, Aragon had an
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unpaid balance of P50 million plus interest in
Solomon’s favor. To whom will Aragon’s
monthly payments go after the marriage?
Q: Can an extrajudicial dissolution of the
conjugai partnership without judicial approval
be valid?
A: The principal shall go to Solomon while the
interests go to the conjugal partnership.
A: An extrajudicial dissolution of the conjugai
partnership without judicial approval is void. A
notary
public
should
not facilitate
the
disintegration of a marriage and the family. In so
doing a notary public may be held accountable
administratively (Rodolfo Espinoso v. Juliet
The fruits, natural, industrial, or civil, due or
received during the marriage from the common
property, as well as the net fruits from the
exclusive property of each spouse are included in
the coniugal partnership properties (FAMILY
CODE, ART. 117(3)).
Omana, A,C. 9081, 2011).
Q: What constitutes “net profits” for purposes
of the dissolution of property regime?
Q: What is the rule on the ownership of
improvements made on the separate property
at the expense of the conjugal partnership?
A: When the cost of the improvement made by
the conjugal partnership and any resulting
increase in value are
1. MORE than the value of the property AT THE
TIME OF IMPROVEMENT - entire property of
one of the spouses shall belong to the
coniugal partnership
2, LESS than the value of property - said
property shall be retained in ownership by the
owner-spouse
in both instances: subject to reimbursement of
the cost of the improvement. (FAMILY CODE,
ART. 120).
Q: When may a spouse assume sole powers
of administration?
A: if one spouse is incapacitated or otherwise
unable to participate in the administration of the
conjugal properties. Also, If a spouse without just
cause abandons the other or fails to comply with
his or her obligation to the family (FAMILY CODE,
ART. 128).
These powers do not include disposition or
encumbrance without authority of the court or the
written consent of the other spouse.
NOTE: In the absence of such authority or
consent, the disposition or encumbrance shall be
void, but may be perfected as a binding contract
upon the acceptance by the other spouse or
authorization by the court before the offer is
withdrawn. (FAMILY CODE, ART. 124).
A: For an absolute community regime, the net
profits shall be the increase in value between the
market value of the community property at the
time of the celebration of the marriage and the
market value at the time of its dissolution. For a
conjugal partnership o f gains regime, the net
profits of the conjugal partnership of gains are ail
the fruits of the separate properties of the
spouses and the products of their labor and
industry. In this case, since the petitioner is the
guilty party in the legal separation, his share from
the net profits is forfeited in favor of the common
children. In both regimes (assuming that it was
ACP), petitioner, as the guilty spouse, is not
entitled to any property at all. The husband and
the wife did not have any separate properties.
Therefore, there is no separate property which
may be accounted for in the guilty party’s favor
(Quiao v. Quiao G.R. No. 176556, 2012).
Q: When A and 8 married, they chose
conjugal partnership of gains to govern their
property relations.
After 3 years, B
succeeded in getting her marriage to A
declared null and void on ground of the
latter’s psychological incapacity.
What
liquidation procedure will they follow in
disposing of their assets?
A: The liquidation of a co-ownership applies since
the declaration of nullity of the marriage brought
their property relation under the chapter on
property regimes without marriage. When a man
and a woman who are capacitated to marry each
other, live exclusively with each other as husband
and wife without the benefit of marriage or under
a void marriage, their wages and salaries shall be
owned by them in equal shares and the property
acquired by both of them through their work or
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industry shall be governed by the rules on coownership (FAMILY CODE, A RT.147).
Q: In the property relations based on Art. 148,
is there a presumption that the contributions
to the property between the man and woman
are equal?
A: No. It is necessary for each of the partners to
prove his or her actual contribution to the
acquisition of property in order to be able to lay
claim to any portion of it. Presumptions of coownership and equal contribution do not apply
(Ventura v. Spouses Paulino, G.R. No. 202932,
2013).
Q: X, was the owner of a parcel of land which
was sold at a public auction. A redeemed the
same then filed for the issuance of a new title
in its name, which the RTC granted. The
original title states "X,
married to Z."
Subsequently, Y, claiming to be the legitimate
son of X, filed a Petition for Relief from
Judgment, claiming that A fraudulently failed
to implead him and Z, his mother. He
contended that Z was an indispensable party,
being the owner of half of the subject
property, which Y claimed to be conjugal in
nature. However, he did not establish that the
subject property was acquired during the
marriage of his parents. Is Y correct?
A: No. Article 160 of the New Civil Code provides
that all property of the marriage is presumed to
belong to the conjugal partnership, unless it is
proved that it pertains exclusively to the husband
or to the wife. However, the presumption refers
only to the property acquired during the marriage
and does not operate when there is no showing
as to when the property alleged to be conjugal
was acquired. The party who asserts this
presumption must first prove the said time
element. In this case, the records are bereft of
any evidence of the actual date of acquisition of
the subject property; therefore, it is considered as
X ’s exclusive property. ( Onstott v. Upper Tagpos
Neighborhood Association, Inc.,
221047, September 14, 2016.)
G.R.
No.
Q: X, a Dutch National, and Y, a Filipina, are
husband and wife. The RTC declared the
nullity of their marriage on the basis of
psychological incapacity. Subsequently, X
filed a Petition for Dissolution of Conjugal
Partnership and prayed for the distribution of
several properties claimed to be acquired
during the subsistence of their marriage. In
the trial, X admitted that he is aware of the
constitutional prohibition against foreign
ownership of Philippine lands and even
asseverated
that,
because
of
such
prohibition, he and Y registered the subject
properties in the name of Y. However, X
claimed that he had a right to be reimbursed
on the basis of equity. Is X correct?
A: No. A similar case, In Re: Petition for
Separation o f Property-Elena Buenaventura
Muller, denied a claim for reimbursement of the
value of purchased parcels of Philippine land
instituted by a foreigner against his former Filipina
spouse. The foreigner spouse cannot claim
reimbursement on the ground of equity where it is
clear that he willingly and knowingly bought the
property despite the prohibition against foreign
ownership of Philippine land enshrined under
Sec. 7, Art. XII of the 1987 Philippine Constitution.
Clearly, X ’s actuations showed his palpable intent
to skirt the constitutional prohibition. (Beumer v.
Amores, G.R. No. 195670, Dec. 3, 2012).
F. FAMILY
1. The family as an institution
Q: X is a lessee of parcels of land which he co­
owns with his sister Y, nephews and nieces.
In 2003, Y offered to sell to X the said lands to
which X agreed. However, in 2010, Y decided
to cancel their agreement and informed X of
her intent to convert X’s partial payments as
rentals instead. X disapproved and claimed
that without his consent, Y and her children
sold all their shares to Z. The RTC dismissed
X’s complaint for failure to comply with Art.
151 of the Family Code that no earnest efforts
were made before filing a suit. The CA
affirmed the decision. Is Art. 151 applicable in
the instant case?
A: No. The Court ruled that Art. 151 of the Family
Code is inapplicable because the instant case
does not exclusively involve members of the
same family. Art. 151 must be construed strictly,
it being an exception to the general rule. Here, it
is undisputed that X and Y are siblings, and the
children of Y are the nieces and nephews of X. It
then follows that the children of Y are considered
"strangers" to X insofar as Article 151 of the
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Family Code is concerned. (Moreno v. Kahn, G.R
No. 217744, July 30, 2018)
Q: Janice and Jennifer are sisters. Janice
sued Jennifer and Laura, Jennifer’s business
partner for recovery of property with
damages. The complaint did not allege that
Janice exerted efforts to come to a
compromise with the defendants and such
efforts failed. The judge dismissed the
complaint outright for failure to comply with a
condition precedent. Is the dismissal in
order?
A: No, since Laura is a stranger to the sisters,
Janice has no moral obligation to settle with her.
Art. 151 of the Family Code provides that no suit
between members of the same family shall
prosper unless it should appear from the verified
complaint or petition that earnest efforts toward a
compromise have been made, but that the same
have failed. If it is shown that no such efforts were
in fact made, the same case must be dismissed.
Under Art. 150, family relations include those: (a)
Between husband and wife; (b) Between parents
and children; (c) Among brothers and sisters,
whether of the full or half-blood. ( FAMILY CODE,
ART. 150).
2. The Family Home
Q: Until when is a family home exempt from
execution?
A: So long as any of its beneficiaries actually
resides therein (FAMILY CODE, ART. 153). The
beneficiaries are: the husband and wife, or an
unmarried person who is the head of a family; and
their parents, ascendants, descendants, brothers
and sisters, whether the relationship be legitimate
or illegitimate, who are living in the family home
and who depend upon the head of the family for
legal support (FAMILY CODE, ART. 154).
waived or be barred by laches by failure to set up
and prove the status of the property as a family
home at the time of levy. (De Mesav. Acero, G.R.
No. 185064, 2012)
Q: What are the rules regarding subsequent
improvements of family home?
A: Any subsequent improvement of the family
home by the persons constituting it, its owners, or
any of its beneficiaries will still be exempt from
execution, forced sale or attachment provided the
following conditions obtain:
1. the actual value of the property at the
time of its constitution is below the
statutory limit (Php 300,000 in urban
areas and Php 200,000 in rural areas
under FAMILY CODE. ART. 157); and
2. the improvement or does not result in an
increase in its value exceeding the
statutory limit.
Otherwise, the family home can be the subject of
a forced sale, and any amount above the
statutory limit is applicable to the obligations
under Articles 155 and 160. To warrant the
execution sale of a family home under Article 160,
the following facts should be established:
1. there was an increase in its actual value;
2. the increase resulted from voluntary
improvements on the property introduced
by the persons constituting the family
home, its owners or any of its
beneficiaries; and
3. the increased actual value exceeded the
maximum allowable under Article 157.
(Eulogio v. Bell, G.R. No. 186322, 2015)
Q: In a forced sale of a family home, when
should the exemption from execution of the
family home be invoked?
Q: Spouses A and B leased a piece of land
belonging to B's parents for 25 years. The
spouses built their house on it worth
P300,000,00, Subsequently, in a case that C
filed against A and B, the court found the
latter liable to C for P200,000.00. When the
sheriff was attaching their house for the
satisfaction of the judgment, A and B claimed
that it was exempt from execution, being a
family home. Is this claim correct?
A: The right to exemption from forced sale is a
personal privilege granted to the judgment debtor
which must be asserted before the public auction.
Failure to do so would estop the party from later
claiming on the exemption. It is a right that can be
A: No, since the land does not belong to A and B,
it cannot qualify as a family home. The Family
Code provides that the family home must be part
of the properties of the absolute community or the
conjugal partnership, or of the exclusive
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properties of either spouse with the latter’s
consent. It may also be constituted by an
unmarried head of a family on his or her own
property (FAMILY CODE, ART. 156). Thus, the
home must be owned and not merely leased.
By the very definition of the law that the family
home is the dwelling house where a person and
his family resides and the land on which it is
situated (FAMILY CODE, ART. 152), it is
understood that the house should be constructed
on a land not belonging to another. ( Taneo v. CA,
G.R. No. 108532, 1999).
G. PATERNITY AND FILIATION
c.
If the child was born after the death of the
husband. (FAMILYCODE, A R T . 171)
Q: Is a birth certificate identifying a person as
the father competent evidence to prove
paternity, even though said person denies
having something to do with the entries in
said birth certificate?
A: No. A certificate of live birth purportedly
identifying the putative father is not competent
evidence of paternity when there is no showing
that the putative father had a hand in the
preparation of said certificate. (Perla v. Baring,
G.R. No. 172471, 2012)
Q: Fidel married Gloria. Before the marriage,
Gloria confessed to Fidel that she was two
months pregnant with another man who had
left the country for good. When the child was
born, Fidel could not accept the child. What is
the status of the child?
A: Legitimate, because the child was born within
a valid marriage. Article 164 of the Family Code
provides that children conceived or born during
the marriage of the parents are legitimate
(FAMILYCODE, ART. 164).
Q: Are children conceived as a result of
artificial insemination considered legitimate?
Q: What are the periods for impugning the
legitimacy of a child?
A: If the husband (or his heirs, in proper cases)
resides in the SAME city or municipality -1 year
If the husband (or his heirs) does not reside in the
city / municipality where the child’s birth took
place or recorded but his residence is IN THE
PHILIPPINES - 2 years.
If the child’s birth took place or was recorded in
the Philippines while the husband has his
residence abroad, or vice-versa - 3 years
(FAMILY CODE, A R T 170).
A: Yes, provided both husband and wife
authorized and ratified such insemination in a
written instrument executed and signed by them
before the birth of the child (FAMILYCODE, ART.
Note: The period shall be counted from the
knowledge of the child’s birth OR its recording in
the civil register (Id.).
164).
HOWEVER, if the child’s birth was concealed
from or was unknown to the husband or his heirs,
the period shall be counted from the discovery or
knowledge of the birth of the child or of the act of
registration of said birth, whichever is earlier
Q: A left B, his wife, in the Philippines to work
in Egypt but died in that country after a year’s
continuous stay. Two months after A ’s death,
B gave birth to a child, claiming it is A ’s child.
Who can assail the legitimacy of the child?
(Id.).
A: A’s other heirs apart from B. Under Art. 171 of
the Family Code, the heirs of the husband may
impugn the filiation of the child within the period
prescribed in Art. 170, only in the following cases:
a. If the husband should die before the
expiration of the period fixed for bringing
this action;
b. If he should die after the filing of the
complaint without
having
desisted
therefrom; or
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Q: What are the rules regarding the
requirement of affixing the signature of the
acknowledging
parent
in any
private
handwritten instrument wherein an admission
of legitimate or illegitimate child is made?
under the Family Code his action cannot
prosper because he did not bring the action
for recognition during the lifetime of his
putative father. If you were the judge in this*
case, how would you rule?
A:
A: The action for recognition as an illegitimate
child based on open continuous possession of
the status of an illegitimate child may be brought
during the lifetime of the alleged parent. Since the
putative father has already died, the action for
recognition based on such ground, as indicated
by support and regular spending of the time with
the child and mother, cannot prosper. (Guy v.
1.
2.
Where the private handwritten instrument
is the lone piece of evidence submitted to
prove filiation, there should be strict
compliance with the requirement that the
same
must
be
signed
by
the
acknowledging parent.
Where the private handwritten instrument
is accompanied by other relevant and
competent evidence, it suffices that the
claim of filiation therein be shown to have
been made and handwritten by the
acknowledging parent as it is merely
corroborative of such other evidence.
(Aguilar vs. Siasat, G.R. 200169, 2015)
Q: Is a SSS E-1 Form, a public document,
subscribed and made under oath by the
putative father during his employment which
bears signature and thumb marks and
indicates that the child is his son and
dependent, sufficient to establish legitimate
filiation by a child with his or her father?
A: Yes. SSS Form E-1 satisfies the requirement
for proof of filiation under Article 172 of the Family
Code. Filiation may be proved by an admission of
legitimate filiation in a public document or a
private handwritten instrument and signed by the
parent concerned, and such due recognition in
any authentic writing is, in itself, a consummated
act of acknowledgment of the child, and no further
court action is required. (Rodolfo S. Aguilar v.
Edna G. Siasat, G.R. 200169, 2015)
Q: Julie had a relationship with a married man
who had legitimate children. A son was born
out of that illicit relationship in 1981. Although
the putative father did not recognize the child
in his certificate of birth, he nevertheless
provided the child with all the support he
needed and spent time regularly with the child
and his mother. When the man died in 2000,
the child was already 18 years old so he filed
the petition to be recognized as an Illegitimate
child of the putative father and sought to be
given his share in his putative fathers estate.
The legitimate family opposed, saying, that
Court o f Appeals, G.R. No. 163707, September
16,2006)
Q: The document executed by the putative
father evidencing his voluntary recognition of
T and E as his illegitimate children is being
questioned because it is merely affixed by the
putative father’s thumbprint. Is the said
document valid as an admission of legitimate
filiation in a public document or a private
handwritten instrument and signed by the
parent concerned?
A: Yes. A thumbmark has been repeatedly
considered as a valid mode of signature, even if
putative father is still able to write. (Gloria Zoleta-
San Agustin v. Ernesto Sales, G.R. No. 189289,
August 31, 2016).
Q: What are the rights of illegitimate children?
A: Illegitimate children shall use the surname and
shall be under the parental authority of their
mother, and shall be entitled to support in
conformity with this Code. The legitime of each
illegitimate child shall consist of one-half of the
legitime of a legitimate child (FAMILY CODE,
ART. 176).
NOTE: R.A. 9255, which took effect March 19,
2004, is an Act allowing an illegitimate child to use
the surname of the father.
Q: X and Y, although not suffering from any
impediment, cohabited as husband and wife
without the benefit of marriage. Following the
birth of their child, the couple got married. A
year after, however, the court annulled the
marriage and issued a decree of annulment.
What is the present status of the child?
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A: Legitimated. The Family Code provides that
only children conceived and born outside of
wedlock of parents who, at the time of the
conception of the former, were not disqualified by
any impediment to marry each other may be
legitimated (FAMILY CODE, ART. 177).
Legitimation shall take place by a subsequent
valid marriage between parents. The annulment
of a voidable marriage shall not affect the
legitimation (FAMILY CODE, ART. 178).
Q: The testator executed a will following the
formalities required by the law on succession
without designating any heir. The only
testamentary disposition in the will is the
recognition of the testator's illegitimate child
with a popular actress. Is the will valid?
A: Yes, the recognition of an illegitimate heir can
be made in a will. The due recognition of an
illegitimate child in a record of birth, a will, a
statement before a court of record, or in any
authentic writing is, in itself, a consummated act
of acknowledgement of the child, and no further
court action is required. In fact, any authentic
writing is treated not just a ground for compulsory
recognition; it is in itself a voluntary recognition
that does not require a separate action for judicial
approval (Aguilar vs. Siasat, G.R. 200169, 2015).
Q: H and W were married but decided to
separate ways, without annulling their
marriage. W later married X and gave birth to
a child. X provided in the birth certificate that
he was the father of the child. X, however,
learned about the first marriage of W and thus
had his marriage with H annulled on the
ground of bigamy. The court annulled the
marriage. What is the status of the child?
„
A: The child is a legitimate child of the first
marriage of H and W, which is valid and
subsisting. Between the certificate of birth signed
by X, which is a prima facie evidence of the
child’s illegitimacy, and the quasi-conclusive
presumption of law (rebuttable only by proof
beyond reasonable doubt) of his legitimacy, being
born within a valid marriage, the latter shall
prevail. ( Concepcion v. CA, GR No. 123450,
2005).
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H. ADOPTION
Q: Who may be adopted?
Domestic Adoption
1.
2.
3.
4.
5.
6.
Inter-country Adoption
Person below 18 years of age: voluntarily
committed to the DSWD or judicially declared
available for adoption
Legitimate child of the other spouse.
Illegitimate child, by a qualified adopter to raise
status of legitimacy.
Person of legal age, if prior to adoption, has
been considered and treated by the adopter(s)
as his or her own child since minority.
Child
whose
adoption
was
previously
rescinded.
Child whose biological or adoptive parent(s)
has died, but no proceeding may be initiated
within 6 months from time of parent’s death.
Only a legally-free child the may be the subject
(R.A. No. 8043, SEC. 8).
Legally free child is a child who has been voluntarily
or involuntarily committed to the DSWD in
accordance to the Child and Youth Welfare Code
(R.A. No. 8043, SEC. 3(F)).
(R.A. 8552, SEC. 8)*3
Child is one who is below 18 years of age. (Id. Sec.
Child is one below 15 years of age. (Id. Sec. 3, Par.
3 (a))
j)
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Q: Who may adopt?
Domestic Adoption (CAG)
Inter-country Adoption
1. Any Filipino Citizen who is (ARMM-COS):
Any alien of Filipino citizen residing abroad if he is
a. Of legal Age
(ASC-ME-PUDA):
b. In possession of full civil capacity and legal a. At least 27 years of Age and at least 16 years
Rights
older than the child to be adopted except when
c. Of good Moral character
the adopter is the parent by nature of the child
d. Not convicted of any crime involving Moral
to be adopted or the spouse of such parent
turpitude
b. If married, his or her Spouse must jointly file for
e. Emotionally and psychologically Caring for
adoption
children
c. With the Capacity to act and assume all rights
f. At least 16 years Older than the adoptee but
and responsibilities of parental authority under
this requirement can be waived when the
his national laws, and he has undergone the
adopter is (1) the biological parent of the
appropriate counselling from an accredited
counsellor
adoptee, or (2) spouse of the adoptee’s
parent
d. Not been convicted of a crime of Moral turpitude
g. Capable to Support and care for his/her child e. Eligible to adopt under his or her national law
in keeping with the means of the family (R.A. f. In the Position to provide the proper care and
8552, SEC. 7(A))
support and to give the necessary moral values
2. Any Alien - with same qualification as Filipinos,
and example to all his children
provided (DR-LA):
g. Agrees to Uphold the basic rights of the child as
a. His/her country has Diplomatic relations with
embodied under Philippine Laws, the U.N.
the Philippines
Convention on the Rights of the Child, and to
b. Has been living in the Philippines for at least
abide by the rules and regulation in the
3 continuous years prior to filing of adoption
provisions of this act
and maintains Residence until adoption h. Comes from a country with whom the
decree is rendered except:
Philippines has Diplomatic relations
i.
Former Filipino Citizen who seeks to i. Possess All the qualifications and none of the
adopt a relative within the 4th degree
disqualifications provided herein (R.A. No.
of consanguinity or affinity;
8043, SEC. 9).
ii.
One who seeks to adopt the legitimate
child of his Filipino spouse;
iii.
one who is married to a Filipino citizen
and seeks to adopt jointly with his
spouse a relative within the 4th degree
of consanguinity or affinity of the
Filipino Spouse.
c. Has been certified as having Legal capacity
to adopt in his country (requirement is also
waived is adopter falls under the exceptions
for the residency requirement)
d. His government Allows adoptee to enter his
country as his adopted child
3. The Guardian with respect to his ward
a. After termination of guardianship and
b. Clearance of his financial accountabilities.
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Q: In 1984, Eva, a Filipina, went to work as a
nurse in the USA. There she met and fell in
love with Paul, an American citizen, and they
got married in 1985. Eva acquired American
citizenship in 1987. During their sojourn in the
Philippines in 1990, they filed a joint petition
for the adoption of Vicky, a 7-year-old
daughter of Eva’s sister. The government,
through the Office of the Solicitor General,
opposed the petition on the ground that the
petitioners, being both foreigners, are
disqualified
to
adopt
Vicky.
Is the
government’s opposition tenable? Explain.
A: Yes, the position of the government is tenable.
Foreigners are disqualified to adopt unless they
fall in any of the exceptions provided for in the
law. Eva and Paul are both foreigners. Eva falls
in one of the exceptions. She is qualified to adopt
because she is a former Filipino citizen who
wishes to adopt a relative by consanguinity.
Unfortunately, Paul is not qualified to adopt
because he does not fall in any of the exceptions.
Hence, they cannot adopt jointly. When husband
and wife are adopting jointly, both of them must
be qualified to adopt in their own right. Eva
cannot, alone by herself, adopt her niece
because husband and wife must adopt jointly
unless they fall in any of the exceptions provided
for in the law. They cannot adopt separately
because they do not fall in any of the exceptions.
Hence, whether separately or jointly, Eva and
Paul cannot adopt Vicky in the Philippines. (R.A.
Q: Supposing that they filed the petition to
adopt Vicky in the year 2000, will the answer
be the same? Explain.
A: Yes, the answer will be the same. The new
Law on Domestic Adoption allows a foreigner to
adopt in the Philippines if he has been residing in
the Philippines for at least 3 years prior to the
filing of the petition unless the law waives that
residency requirement R.A. No. 8552, SEC.
7(B)). Paul and Eva have not resided in the
Philippines for the last 3 years. However, Eva wili
qualify for waiver because she was a former
Filipino citizen who wishes to adopt a relative by
consanguinity
within
the
4th
degree.
Unfortunately, Paul will not qualify to adopt
because he does not fall in any of the instances
for waiver to apply. They -cannot adopt jointly
because one of them is not qualified. Neither may
Eva adopt alone because she does not fall in any
of the exceptions that allow husband and wife to
adopt separately.
I. SUPPORT
Q: Who are obliged to support each other?
A: (SAPL)
1. Spouses
2. Ascendants and Descendants
3. Parents
and
Legitimate/lllegitimate
Children/Descendants
4. Legitimate/lllegitimate Brothers and Sisters
(FAMILY CODE, ART. 195).
No. 8552, SEC. 7).
Q: Would the answer be the same if they
sought to adopt Eva’s illegitimate daughter?
Explain.
EXCEPTION to (4): When the need for support of
brother or sister, being of age, is due to a cause
imputable to the claimant’s fault or negligence
(FAMILY CODE, ART. 196).
A: No, the answer would be different. Eva is
qualified to adopt her illegitimate daughter,
because she falls in one of the exceptions that
allow foreigners to adopt. She is a former Filipino
citizen adopting her relative by consanguinity.
Eva can adopt separately her illegitimate child
because her case is also an exception to the rule
that husband and wife should adopt jointly. (R.A.
No. 8552, SEC. 7(C))
Q: In an action for support, may the court
make a declaration that the marriage is void?
A: Yes. In an action for support, the court can
declare a marriage void to determine the rights of
the child to be supported.
In a case for support, there is no need that a
judicial declaration of nullity be filed first before
the lower court can rule that the marriage was
void (De Castro v. Assidao-De Castro, G.R. No.
160172, 2008).
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Q: Should the custody of a child not more
than 7 years of age be denied to the mother
who is a lesbian?
A: No. In choosing the parent to whom custody is
given, the welfare of the minor should always be
the paramount consideration. The “tender-age
presumption” may be overcome only by
compelling evidence of the mother’s unfitness. It
is not enough for A to show merely that B was a
lesbian. A must also demonstrate that B carried
on her purported relationship which is not
conducive
to
the
child’s
proper
moral
development (Pablo-Gualberto v. Gualberto,
G.R. No. 154994, 2005).
Q: Is the judgment on custody based on a
compromise agreement stating that the
custody of the child is granted to B, the father
Wilich duly approved by the court attains the
effect and authority of res judicata and
therefore cannot be changed?
A: No. The matter of custody is not permanent
and unalterable and can always be re-examined
and adjusted. Custody, even if previously granted
by a competent court in favor of a parent, is not
permanent. The paramount interest of the child
should always be considered. (Beckett v.
Sarmiento, RTJ-12-2326, 2016).
Q: Can a judgment for support be modified?
A: Yes. The amount of support may be reduced
or increased proportionately according to the
reduction or increase of the necessities of the
recipient and the resources or means of th e.
person obliged to support. The right to support is
of such nature that its allowance is essentially
provisional; for during the entire period that a
needy party is entitled to support, his or her
alimony may be modified or altered, in
accordance with his increased or decreased
needs, and with the means of the giver. It cannot
be regarded as subject to final determination. But
the value of two expensive cars bought by
respondent
for
his
children
plus
their
maintenance cost, travel expenses, purchases
through credit card of items other than groceries
and dry goods (clothing) should have not been
deducted from the amount of support. (Lim-Lua v.
Lua, G.R. No.
175279-80, 2013 (citing
Montefalcon v. Vasquez, G.R. No. 165016, 2008;
Advincula v. Advincula, No. L-19065, 1964)).
J. PARENTAL AUTHORITY
Q: Who exercises Special Parental Authority?
A: The school, its administrators and teachers, or
the individual, entity or institution engaged in child
are shall have special parental authority and
responsibility over the minor child while under
their supervision, instruction or custody (FAMILY
CODE, ART. 218).
Q: X filed an action to obtain parental custody
and authority over his illegitimate child Y and
also petitioned the change of Y’s surname to
that of X’s. May X change the surname of his
illegitimate child?
A: Article 176 gives illegitimate children the right
to decide if they want to use the surname of their
father or not. It is not the father or the mother who
is granted by law the right to dictate the surname
of their illegitimate children. The father’s
recognition of his illegitimate children does not
mandate the change of the children’s surname to
that of their father. (Grande.v. Antonio, G.R. No.
206248, 2014).
Q: A had a relationship with B. B already had
a child (Z) with another man when they started
their relationship. During such, B begot two
children fathered by A. Later, A and B married.
They amended the birth certificates of the
three children (including Z) to change their
civil status to legitimated by virtue of the said
marriage. A and B later had a falling out. A
was ordered to pay for support of the children,
including Z. A claims that Z was not really his
child. B does not dispute this. Can A assert
this as a defense against the obligation to
support?
A: No, A is estopped from claiming that Z is not
his child. While it was improper to have Z
legitimated after the celebration of A and B’s
marriage. A voluntarily but falsely acknowledged
Z as his son. The principle of estoppel finds
application and it now bars A from making an
assertion
contrary
to
his
previous
representations. He should not be allowed to
evade a responsibility arising from his own
misrepresentations. He is bound by the effects of
the legitimation process. Z remains to be A’s son,
and pursuant to Article 179 of the Family Code,
the former is entitled to the same rights as those
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of a legitimate child, including the receipt of his
father’s support. Further, the rule is that the civil
status of a child cannot be attacked collaterally.
The child’s legitimacy cannot be contested by
way of defense or as a collateral issue in another
action for a different purpose. Since the instant
petition sprang out of B’s application for a
protection order before the RTC, A’s claim that Z
is not his biological son is a collateral issue, which
this Court has no authority to resolve now. (BBB
abuse,-otherwise, it is punished under the RPC.
In this case, although it does not qualify as a
violation of R.A. No. 7610, The laying of hands
which was an offshoot of teacher's emotional
outrage after being informed that her daughter's
head was punctured, and whom she thought was
already dead is rendered punishable under RPC
as slight physical injuries. (Jabalde v. People,
vs AAA G.R. No. 193225, February 9, 2015)
Q: During her lifetime, X had 5 children from
her second marriage with Y, in the course of
which they acquired several real properties.
After X died intestate, Z, together with three of
his children, executed an Extra-Judicial
Settlement of the Estate with Absolute Deed
of Sale, in favor of third parties. The other two
children, A & B, who were minors, did not
participate in this settlement and sale. Later,
all of the children sought to annulThesale on
the ground the properties were sold beyond
the 5-year prohibitory period from the
issuance of the homestead patents. In
addition, the SC had to consider the effect of
the sale with respect to A and B. Was the sale
enforceable insofar as A and B were
concerned?
Q: X, a public school teacher, physically
maltreated her Grade 1 pupil for having
accidentally bumped her knee while she was
drowsing
on
a
bamboo
sofa.
Her
maltreatment left the pupil with physical
injuries. The boy had to transfer schools
because he was afraid of X. X characterizes
her maltreatment as an act of discipline that
she could reasonably do towards the
development of the child. She insists that her
act further came under the doctrine of in loco
parentis. Is X’s contention correct?*3
A: No. Her infliction of physical injuries on him
was unnecessary, violent and excessive. Article
233 of the Family Code expressly banned the
infliction of corporal punishment by a school
administrator, teacher, or individual engaged in
child care, exercising special parental authority.
Further-,-underthe definition of child abuse in Sec.
3 of R.A. 7610, the maltreatment may consist of
an act, by deeds or by words, that debases,
degrades or demeans the intrinsic worth and
dignity of a child as a human being. The act need
not be habitual. X went overboard in disciplining
her pupil. The physical pain experienced by the
pupil was aggravated by an emotional trauma
that compelled the boy’s parents to transfer
schools. (Rosaldes v. People, G.R. No. 173988,
2014).
Q: When a teacher struck the neck of a
student on the basis that the teacher’s
daughter was hurt when playing with the said
student, is the teacher liable under R.A. No.
7610?
A: No. The Court held that only when the laying
of hands is shown beyond reasonable doubt to be
intended by the accused to debase, degrade or
demean the intrinsic worth and dignity of the child
as a human being should it be punished as child
G.R. No. 195224, June 15, 2016).
A: No. While the settlement was void, the sale
was valid but only with respect to the sellers’
proportionate shares therein. With respect to A
and B who were minors at the time, their natural
guardian and father, Y, represented them in the
transaction, pursuant to Arts. 320 and 326 of the
Civil Code. However, Y was merely clothed with
powers of administration and bereft of any
authority to dispose of their 2/16 shares in the
estate of their mother. Administration includes all
acts for the preservation of the property and the
receipt of fruits according to the natural purpose
of the thing. Any act of disposition or alienation,
or any reduction in the substance of the patrimony
of child, exceeds the iimits of administration.
Thus, a father or mother, as the natural guardian
of the minor under parental authority, does not
have the power to dispose or encumber the
property of the latter. Consequently, the sale
entered into by Y in behalf of A and B is
unenforceable unless they ratify it upon reaching
the age of majority. (Neri v. Uy, G.R. No. 194366,
Oct. 10, 2012)
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K. EMANCIPATION
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L. RETROACTIVITY OF THE FAMILY CODE
Q: What happens to the property regimes that
were subsisting under the New Civil Code
when the Family Code took effect?
A: The original property regimes are immutable
and remain effective. Art. 256 provides that the
Family Code shall have retroactive effect insofar
as it does not prejudice or impair the vested or
acquired rights in accordance with the Civil Code
or other laws.
|
III. PROPERTY
A.
CLASSIFICATION
Q: What are immovable properties?
1.
Land,, buildings, roads and constructions
of all kinds adhered to the soil;
2.
Trees, plants, and growing fruits, while
they are attached to the land or form an
integral
part
of
an
immovable;
3.
Everything attached to an immovable in
a fixed manner, in such a way that it
cannot be separated therefrom without
breaking the material or deterioration of
the object; (immovable by incorporation)
Statues, reliefs, paintings or other objects
for use or ornamentation, placed in
buildings or on lands by the owner of the
immovable in such a manner that it
reveals the intention to attach them
permanently
to
the
tenements;
(immovable by nature)
M. FUNERALS
(immovable by incorporation)
Q: X and Y are common law spouses. X died
of severe sickness. Z, the legal spouse of the
deceased alleges that she should have the
right to prepare for the funeral arrangements.
Who has the right between Y and Z?
4.
A: Z, the legal spouse. The court ruled that the
duty and the right to make funeral arrangements
are confined within the family of the deceased
particularly the spouse of the deceased to the
exclusion of a common law spouse (Valino v.
Adriano, eta!., G.R. No. 182894, 2014).
|
(immovable by incorporation)
5.
6.
Machinery, receptacles, instruments or
implements intended by the owner of the
tenement for an industry or works which
may be carried on in a building or on a
piece of land, and which tend directly to
meet the needs of the said industry or
works; (immovable by destination)
Animal
houses,
pigeon-houses,
beehives, fish ponds or breeding places
of similar nature, in case their owner has
placed them or preserves them with the
intention to have them permanently
attached to the land, and forming a
permanent part of it; the animals in these
places are included; (immovable by
incorporation)
7.
Fertilizer actually used on a piece of land;
(immovable by destination)
8.
Mines, quarries, and slag dumps, while
the matter thereof forms part of the bed,
and waters either running or stagnant;
9.
Docks and structures which, though
floating, are intended by their nature and
object to remain at a fixed place on a
river, lake, or coast; (immovable by
(immovable by nature)
destination)
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10. Contracts
for
public works,
and
servitudes and other real rights over
immovable property, (immovable by
analogy / law) (Art. 415)
5.
6.
Q: X and Y stipulate that a building be treated
separately from the land on which it is
situated. Can the building be considered as
movable property?
A: No, buildings are always immovable under the
Code. The mere fact that the parties to a contract
treat the building as separate does not change its
character as immovable property. (Punsalan v.
Lacsamana, G.R. No. L-55729, 1983)
Q: What are the requisites for an attachment
to be considered immovable?
A: There must be:
1. Intent to permanently attach;
2. Substantial deterioration in
separation. (Art. 415 (3))
case
of
Q: What are the requisites for machinery for
industry to be considered immovable?
A: The requisites are: (InOPEN)
1. Industry' or works must be carried on
Inside the building or on the land;
2. Placed by the Owner of the buiiding or
property or his agent;
3. Machines must be Principal and
Essential elements in carrying out the
industry;
4. Machines must tend directly to meet the
Needs of said industry or works. (Art. 415
(5))
Q: What are personal properties?
A: (SIFTOS)
1. Movables susceptible of appropriation
which are not included in Art. 415;
2. Real property which by any special
provision of law is considered as
personalty;
3. Forces of nature which are brought under
control by science;
4. In general, all things which can be
transported from place to place without
impairment of the real property to which
they are fixed;
Obligations and actions which have for
their object movables or demandablc
sums; and
Shares
of
stock
of
agricultural,
commercial and
industrial entities,
although they may have real estate. (Art.
416-417)
B. OWNERSHIP
1. IN GENERAL
Q: What is ownership?
A: It is the independent and general right of a
person to the exclusive enjoyment and control of
a thing in his possession, enjoyment, disposition,
and recovery, subject only to the restrictions or
limitations established by law and the rights of
others. (Art. 427-428)
Q: What is “treasure”?
A: Any hidden and unknown deposit of money,
jewelry, or other precious objects, the lawful
ownership of which does not appear. (Art. 439)
Q: When can a finder of hidden treasurer be
entitled to one-half?
A: The finder is entitled to % if: (CN-TACO)
1. Finding is by Chance;
2. Finder is Not a:
a. Trespasser;
b. an Agent of the landowner;
c. Co-owner of the property where
it is found
d. Owner of the land, building or
other property on which it is
found, because oif he is, he is
entitled to the whole. (Art. 438)
Q: What is the doctrine of self-help?
A: The doctrine of self-help provides that the
owner or lawful possessor of a thing has the right
to exclude any person from the enjoyment and
disposal thereof. He may use such force as may
be reasonably necessary to repel or prevent an
actual or threatened unlawful physical invasion or
usurpation of his property. (Art. 429)
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Q: What are the limitations to the doctrine of
self-help?
A: The owner or lawful possessor may only:
1. Use such force as may be reasonably
necessary to repel or prevent an actual or
threatened unlawful physical invasion or
usurpation of his property; and
2. Exercise such right only at the time of
actual or threatened dispossession, or
immediately after the dispossession to
regain possession of his property.
(German Management & Services, Inc. v.
Court of Appeals, G.R. No. 76216, 1989)
Q: When is there a disputable presumption of
ownership?
A: Actual possession under claim of ownership
raises a disputable presumption of ownership.
The true owner must resort to judicial process for
the recovery of the property. (Art. 433)
2. RULES ON ACCESSION
Q: What is the obligation of the person who
receives the fruits?
A: He who receives the fruits has the obligation to
pay the expenses made by a third person in their
production, gathering, and preservation. (Art.
443)
Q: What is alluvium?
A: The accretion received by the land adjoining
the banks of the river must be the result of the
gradual and natural action of the current of the
river. The accretion does not automatically
become registered land just because the land
which receives it is covered by Torrens title.
Registration does not give title to the land, but
merely confirms and thereafter protects the title
already possessed by the owner, making it
imprescriptible by occupation of third parties. (Art.
457) (Grande v. CA, 115 Phil 521)
Q: What is avulsion?
Q: What is accession?
At It is the right of the owner of a thing to become
the owner of everything which is:
1. Produced (accession discreta ); or
2. Incorporated or attached, either naturally
or artificially (accession continua). (Art.
440)
A: Whenever the current of a river, creek or
torrent segregates a known portion of land and
transfers it to another estate, the owner of the
segregated portion retains the ownership of it,
provided it is removed within two years. (Art. 459)
Q: Differentiate “alluvium” from “avulsion.”
Alluvium (Art.457)
Avulsion (Art.459) ~
Accretion is gradual
Q: What are examples of accession discreta
or things produced?
A:
1.
2.
3.
Natural fruits - spontaneous products of
the soil, and the young and other
products of animals;
Industrial fruits - produced by lands of
any kind through cultivation or labor; and
Civil fruits - rents of buildings or lands,
and perpetual or life annuities or other
similar income. (Art. 441-442)
Q: Is accession
ownership?
a
mode
of
acquiring
A: No. As accession presupposes a previously
existing ownership by the owner over the
principal, accession is a right implicitly included in
ownership. (Spouses Gulla v. Heirs of Labrador,
G.R. No. 149418, 2006)
Accretion cannot be
identified
There is merely
attachment
Accretion belongs to
the owner of the land
to which the
attachment is made
ipso jure
Accretion is sudden
and abrupt
Accretion can be
identified
There is detachment
followed by
attachment
Ownership is retained
by the owner of the
land from which it is
detached for a certain
period.
Q: A owned a parcel of land which she
conveyed to her three daughters. B, the
husband of the one of the daughters applied
for and was granted a homestead patent over
a riparian land adjacent to the river. B
occupied the northern portion of the riparian
land, while C occupied the southern portion.
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The 1st accretion adjoined the southern
portion of the land and 2nd accretion adjoined
the 1st accretion. C, one of the children of A,
claimed rights over the entire riparian land
and the two accretions. Who has a right over
the riparian land and accretions?
A: B has the right over the riparian land and the
accretions. There is a presumed regularity of the
award of the homestead patent to B. As B is the
riparian owner, the law recognizes the
preferential right of the riparian owner to the
foreshore land formed by accretions or alluvial
deposits. Alluvial deposits along the banks of a
creek or a river do not form part of the public
domain as the alluvial property automatically
belongs to the owner of the estate to which it may
have been added. (Heirs of Narvasa, Sr. v.
Q: Summarize the rules when a landownerbuiider/pianter/sower makes constructions
with the materials of another.
A:
Landowner Owner of
Builder/Planter/Sower
Materials (OM)
(LO-BPS)
I
a , Qood Faith '
/ 1
Becomes the owner of
the materials, but he
must pay for their value.
1.
2.
Imbornal, G.R. No. 182908, August 6, 2014)
__
B. Bad Fai|;K
;
Can
acquire
the
materials, but he must
pay for their value plus
damages.
1.
2.
1.
2.
Be entitled to full
payment
for
value
of
materials; or
Remove
materials,
provided
no
detstruction or
substantial
injury to the
work made.
Be entitled to full
payment
for
value
of
materials, plus
damages; or
Remove
materials, even
if
there
is
destruction
or
substantial
injury to work
done,
plus
damages.
C. Good Faith
- ; ’ Bad Faith
i;
Acquire
the 1. Loses
materials, without
materials,
paying
for
the
without
value; and
indemnity; and
Be
entitled
to 2. Will be liable for
damages due to
damages due to
defects or inferior
defects
or
quality of materials.
inferior quality of
materials.
Faith
Same as A.
Page 28 of 120
Same as A.
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Q: Discuss the rights and obligations of the
landowner and the builder, planter and sower.
A:
Builder/Planter/Sower
(B/P/S)
A. Good Faith_______
Landowner (LO}
Option
1:
Appropriate
what
has
been
built,
planted, or sown
after
paying
indemnity for:
1. Necessary
expenses;
2. Useful
expenses;
3. And Luxurious
expenses, if
the LO wants
to appropriate
the luxurious
improvements.
Option 2: Oblige
the B/P to buy the
land or the S to pay
the proper rent.
Note: Unless the
value of the land is
considerably more
than that of the
building or trees.
1.
2.
3.
4.
1.
Receive indemnity
for
necessary,
useful,
and
luxurious expenses;
Right of retention
over
the
land
without obligation to
pay rent until full
payment
of
indemnity;
Remove
useful
improvements,
provided it does not
cause any injury;
Remove luxurious
improvements, if LO
does
not
appropriate
and
provided that there
is no injury to the
principal thing._____
To purchase the
land at fair market
value, when value is
not
considerably
more than that of the
building or trees;
B. Good Faith
Option 1: Acquire
whatever has been
built, planted or
sown
plus
damages, without
paying indemnity,
except:
1. Necessary
expenses
for
preservation of
land; and
2. Luxurious
expenses,
should LO want
to
acquire
luxurious
improvements.
If the value of land is
considerably more
than that of the
building or trees, BP
cannot
be
compelled to buy
the land and will
instead
pay
reasonable rent.
Note: If BPS cannot pay
the rent, LO can eject
the BPS from the land.
1.
2.
3.
4.
5.
Note: If BP cannot pay
purchase price of land,
LO can require the BPS
to remove whatever has
been built, planted, or
sown.
2.
■: •
6.
Option 2: To oblige
BP to buy land,
even if price is
considerably more
than the value of
improvement, and
S to pay proper rent
plus damages.
Page 29 of 120
Bad-faith/ Loses whatever has
been built, planted
or sown without
indemnity
Entitled
to
reimbursement for
necessary
expenses
for
preservation of land
but no right of
retention.
Entitled
to
reimbursement for
useful expenses but
cannot
remove
useful
improvements even
if removal will not
cause injury.
Not
entitled
to
reimbursement for
luxurious expenses
except when LO
wants to acquire
luxurious
improvements
(value of which will
be the one at the
time LO enters into
possession).
Entitled to remove
luxurious
improvements if it
will not cause injury
and LO does not
want
to
acquire
them; and
Liable
to
pay
damages.
Note: BPS in bad faith
cannot
insist
on
purchasing the land, he
does not have the option
to pay for the price.
Obliged to pay for land
or proper rent and pay
damages.
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Option
3:
To
compel
BPS to
remove or demolish
work done plus
damages.
C» Bad FaHh
/
'(
To
acquire
whatever has been
built, planted or
sown by paying
indemnity
plus
damages.
Obliged to remove or
demolish work done at
his expense and pay
damages.
• 'i
'AT
M il
If LO acquires whatever
has been built, planted
or sown, BPS must be
indemnified the value
thereof plus damages.
Note: If LO does not
acquire whatever has
been built, planted or
sown, BPS cannot insist
on purchasing land.
BPS
can
remove
whatever has been built,
planted
or
sown
regardless of whether or
not it will cause injury
and will be entitled to
damages.
______ __
Same as A.
Note: LO in bad
faith whenever the
act was done with
his knowledge and
w/o opposition.
Q: How does one be deemed a builder in good
faith?
A: It is essential that a person asserts title to the
land on which he builds, i.e., that he be a
possessor in the concept of owner, and that he be
unaware that there exists in his title or mode of
acquisition any flaw which invalidates it. To
illustrate, when X from the very beginning knew
that he is dealing with a person who possibly had
no authority to sell the subject property
considering that there is a palpable irregularity in
the SPA’s acknowledgement, yet he relied on the
SPA without any further investigation on the
seller’s capacity to sell and X proceeded with its
purchase and built a house thereon. In such case,
X is considered a builder in bad faith as he was
aware of a flaw or defect in his title or mode of
acquisition. (The Heirs of Sarili v. Lagrosa
G.R. No. 193517, January 15, 2014)
Same as A.
Q: What are the options of landowner when
both the landowner and the builder (buyer
who constructed a building on the land) are in
bad faith?
A: As they are both in bad faith, the rights of one
and the other shall be the same as though both
had acted in good faith. Thus, as both being in
good faith, the landowner has two options under
Art. 448:
(1) He may appropriate the improvements
for himself after reimbursing the builder
the necessary and useful expenses.
(2) He may sell the land to the buyer, unless
its value is considerably more than that of
the improvements, in which case, the
buyer shall pay reasonable rent. (Delos
Santos v. Abejon, G.R. No. 215820,
M a......................
rc h 2-0’ 2017)
• ‘ /
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Q: Discuss the rules when 3 parties (Landowner, Builder/Planter/Sower, Owner of Materials) are
involved.
I
RULES WHEN THREE (3) PARTIES ARE INVOLVED:
I
BUILDER/PLANTER/SOWER
OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
A. GOOD FAITH
Option 1: To acquire whatever
has been built, planted or sown
provided there is payment of
indemnity (which includes value
of what has been built, planted
or sown plus value of materials
used).
Option 2: To oblige BP to buy
land or S to pay proper rent
unless value
of land
is
considerably more than that of
building or trees.
To receive indemnity from LO
with right of retention over land
until full payment.
To receive indemnity from BPS who
is primarily liable for materials; if
BPS is insolvent, to proceed against
LO who is subsidiarily liable with no
right of retention.
To buy land or to pay proper
rent.
To receive indemnity from BPS only
(LO is not subsidiarily liable) with
right of retention until full payment.
or
To remove materials if there will be
no injury on building or trees and will
have material rent lien against BPS
for payment of value of materials.
B. GOOD FAITH
Same as A.
GOOD FAITH
Same as A.
BAD FAITH
Whatever is the choice
OM:
1. loses the materials
BPS, and
2. will have no right
indemnity from BPS nor
of LO, the
in favor of
to receive
LO.
C. GOOD FAITH
BAD FAITH
BAD FAITH
Option 1. To acquire whatever
has been built, planted or sown
without
paying
indemnity
except necessary expenses for
preservation
of land
and
luxurious expenses (should LO
want to acquire luxurious
improvements) plus damages.
BPS loses what has been built
planted or sown plus liable for
damages but is entitled to be
indemnified
for
necessary
expenses
and
luxurious
expenses (should LO want to
acquire
luxurious
improvements) and has no right
of removal even if removal will
not cause damage.
(Since both BPS and OM are in bad
faith, treat them both as if they are in
good faith).
Option 2: To oblige BP to buy
the land or S to pay proper rent
plus damages.
To buy the land or pay proper
rent and liable to pay damages
to LO.
Option 3: To oblige BPS to
demolish or remove what has
been built, planted or sowed
plus damages.
To demolish or remove what
has been built, planted or
sowed and liable for damages.
Page 31 of 120
Whatever is the choice of LO, OM
has right to receive indemnity for
value of materials from BPS only
(LO has no subsidiary liability for
value of materials because OM is
considered in good faith only insofar
as BPS is concerned).
If LO chooses Option 1, OM has no
right to remove materials even if
there will be no injury or damage. If
LO chooses Option 2, OM has right
of removal, provided there will be no
injury or damage.
Liable to pay for damages due to
defects or inferior quality of
materials.
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D. BAD FAITH
GOOD FAITH
GOOD FAITH
To acquire what has been built,
planted or sown by paying
indemnity plus liable to pay
damages.
To receive indemnity from LO
plus damages.
To receive indemnity for vaiue of
materials principally from BPS and
in case BPS is insolvent, subsidiarily
from LO.
E. BAD FAITH
GOOD FAITH
BAD FAITH
Same as D.
No right to receive indemnity for
value of materials from BPS nor LO
(who ends up owning buildings or
trees).
Same as D.
Q: What are the
ownership?
3. QUIETING OF TITLE
Q: What is an action to quiet title?
A: It is a remedy which has for its purpose an
adjudication that a claim of title or interest on
realty, adverse to the plaintiff, is invalid or
inoperative, and hence, the plaintiff and those
claiming under him may forever be free of any
hostile claim. (Baricuatro, Jr. vs Court of Appeals,
G.R. No. 105902,2000)
Q: What is the meaning of legal title and
equitable title?
A:
1.
2.
3.
characteristics
of co-
Plurality of subjects, who are the co-owners;
Unity of object or material indivision;
Recognition
of
ideal
shares,
which
determines the rights and obligations of co­
owners. (Sanchez v. Court o f Appeals, G.R.
No. 152766, 2003)
Q: What are the requisite number of coowners who must consent for (1) repairs (2)
filing of ejectment actions (3) alterations (4)
acts of ownership and (5) acts of
administration?
A:
A: Legal title denotes registered ownership, while
equitable means beneficial ownership. Equitable
title is derived through a valid contract or relation,
and based on recognized principles; the right in
the party, to whom it belongs, to have the legal
title transferred to him. (Heirs o f Extremadura v.
Manuel Extremadura, G.R. No. 211065, June 15,
2016)
Q: What is a cloud?
A: It is a semblance of title, either legal or
equitable or a claim or a right in real property,
appearing in some legal form but which is in fact
invalid or would be inequitable to enforce.
(Evangelista v. Santiago, G.R. No. 157447, 2005)
Repairs
Filing of ejectment
action
Acts of Ownership
Administration
1
1
All
All
Financial Majority
Q: What is the effect of sale by a co-owner?
A: Alienation by a co-owner shall be limited ,to the
portion which may be allotted to him in the
division upon the termination of the co-ownership.
Until a partition is made among co-owners, no
one of them can claim any particular portion of an
undivided property as exclusively as his own. The
portion can only be ascertained upon termination.
(Gonzales v. Ichon, 47 OG 12, 1951)
C. CO-OWNERSHIP
Q: What is the effect when a co-owner
mortgage the real property?
Q: Define co-ownership.
A: It is the ownership of an undivided thing or right
that belongs to or is shared hv several persons
(Art. 484) “
A: The real estate mortgage is void with respect
to the share of the co-owner who did not consent,
but valid as to the share of a co-owner who
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consented or signed the same. While a co-owner
had the right to mortgage or even sell his
undivided interest in the subject property, he
could not, however, dispose of or mortgage the
subject property in their entirety without the
consent of the other co-owners. (Magsano v.
Pangasinan Savings and Loan Bank, Inc., G.R.
No. 215038, October 17, 2016)
In the concept
of an owner
In the concept of a holder
Possession by
the owner
himself or
those who
claims and acts
as an owner.
Acknowledges that another
is the owner(eg. lessee,
depositary, agent, trustee).
Acts and possession
merely tolerated, and those
executed clandestinely and
without the knowledge of
the possessor of a thing, or
by violence.
Possession in the name of
another.
D. POSSESSION
Q: What is possession?
A: It is the holding of a thing or the enjoyment of
a right. (Art. 523)
Q: What is actual possession?
A:
Actual
possession
consists
in
the
manifestation of acts of dominion of such a nature
as a party would natural exercise over his own
property. (Republic v. Metro index Realty, G.R.
No. 198585. 2012)
Q: What is the effect of actual possession
under claim of ownership?
Possession in
one’s own
name.
Can serve to
acquire
ownership by
prescription.
Cannot ripen into
ownership by acquisitive
prescription.
Q: When is a possessor said to be in good
faith?
A: A possessor is in good faith where he is not
aware of any flaw which invalidates his:
1. Title; or
2. Mode of acquisition. (Art. 526)
A: Actual possession under claim of ownership
raises a disputable presumption of ownership.
The true owner must resort to judicial
proceedings for the recovery of the property.
Good faith is always presumed, and upon him
who alleges bad faith on the part of a possessor
rests the burden of proof. (Art. 527)
(CIVIL CODE, Art. 433)
Q: What are the rules on possession of
movables?
Q: What is constructive possession?
A: It is the possession and cultivation of a
property under claim of ownership, provided that
the property is not in the adverse possession of
another person. (Republic v. Metro Index Realty,
G.R. No. 198585, 2012)
Q: Distinguish possession in the concept of
an owner from possession in the concept of a
holder.
A: The possession of movable property acquired
in good faith is equivalent to a title. Nevertheless,
one who has lost any movable or has been
unlawfully deprived thereof, may recover it from
the person in possession.
If the possessor of a movable lost or which the
owner has been unlawfully deprived, has
acquired it in good faith at a public sale, the owner
cannot obtain its return without reimbursing the
price paid. (Art. 559)
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Q: Summarize the rules on effects of possession.
BASIS
Necessary
Expenses
IF IN GOOD FAITH
1. Right to reimbursement
2. Right of retention until paid.
(Art. 546)
IF IN BAD FAITH
1. Right to reimbursement
2. No right of retention: must vacate
property - recourse to courts
Those made for
the preservation
of the thing.
Useful Expenses
(Art. 546)
Those that add
value
to
the
property.
Luxurious or
Ornamental
Expenses
1. Right to reimbursement of amount
spent or increase in value, at owner’s
option
2. Right of retention until paid
3. Right of removal (provided no
substantial damage or injury is caused to
the principal, reducing its value) - unless
the owner or lawful possessor exercises
option 1. (Art. 547)
No right to reimbursement.
In general, no right to refund or retention
but can remove the ornaments if no
substantial injury is caused.
In general, no right to refund or retention
but can remove the ornaments if no
substantial injury is caused.
However, owner has option to retain the
ornament by refunding the amount
spent. (Art. 548)
However, owner has option to retain the
ornament by refunding the value it has
at the time owner enters
into
possession, depreciated value. (Art.
549)
Taxes and
Charges
1. On capital
charged to owner
2. On fruits -> charged to possessor
3. Charges -> prorated
Possessor is entitled to the fruits
received before possession is legally
interrupted. (Art. 544)
Regarding
gathered or
severed fruits
1. On capital -> charged to owner
2. On fruits -> charged to owner
3. Charges -> to owner
Possessor must return value of fruits
already received as well as value of
fruits which the owner or legitimate
possessor could have received, minus
necessary expenses for production,
gathering, and harvesting, to prevent
the owner from being unjustly enriched.
(Art. 549)
Regarding
pending or
ungathered fruits
(Art. 545)
Cultivation expenses of gathered fruits not reimbursed to possessor.
Reimbursed to possessor.
Pro-rating
based
on
period
of
possession, between possessor and
owner of: expenses, net harvest, and
charges
Possessor shall not have any right.
The owner may, at his option, allow
possessor to finish the cultivation and
gathering of the growing fruits, as an
indemnity for his part of the expenses of
cultivation and the net proceeds. The
No indemnity.
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possessor who refuses to accept this
concession, shall lose the right to be
indemnified.
No reimbursement.
No reimbursement.
Liability for
deterioration or
loss (Art. 552)
Only if acted w/ fraudulent intent or
negligence, after summons.
Liable in every case, even if due to
fortuitous event (whether before or after
service).
Improvements
caused by nature
or time (Art. 551)
To owner or lawful possessor.
To owner or lawful possessor.
Improvements no
longer existing
(Art. 553)
E. USUFRUCT
F. EASEMENTS
Q: What is a usufruct?
Q: What is an easement?
A: It is the right to enjoy the property of another
with the obligation of preserving its form and
substance, unless the title constituting it or the
law provides otherwise. {Art. 562)
A: An easement is an encumbrance imposed
upon an immovable for the benefit of another
immovable belonging to a different owner. (Art.
613) It may also be established for the benefit of
a community, or of one or more persons to whom
the encumbered estate does not belong. (Art.
Q: Distinguish Usufruct and Easment.
614)
A:
:
USUFRUCT
May be constituted
on either movable or
immovable property.
Extinguished by the
death
of
usufructuary.
Involves a right of
possession in an
immovable.
Includes all the uses
and the fruits of the
property.
Q: What are the different kinds of easements?
EASEMENT
Only on immovable
property.
A:
1.
Not extinguished by
death of dominant
owner.
Non-possessory right
over an immovable.
Limited to particular
or specific use of
servient estate.
2.
Q: May a usufructuary lease the property held
in usufruct or assign his right of usufruct?
A: Yes, as a usufruct is considered as an
“interest” in real property, a usufructuary right is
one that may be leased and sold. (Reyes v. Grey,
3.
G.R. No. 6869, 1911)
Page 35 of 120
Continuous v. Non-continuous:
a. Continuous— the use of which is
or may be incessant, without the
intervention of any act of man.
b. Discontinuous— that which is
used at intervals and depends
upon the act of man. {Art. 615)
Apparent v. Non-Apparent
a. Apparent— made known and is
continually kept in view by
external signs that reveal the use
and enjoyment of the same;
b. Non-apparent— shows
no
external
indication
of
its
existence; {Art. 615)
Positive v. Negative
a. Positive— imposes the obligation
of allowing something to be done
on the owner of the servient
estate;
b. Negative— prohibits the owner of
the servient estate from doing
something which
he could
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4.
lawfully do if the easement did
not exist; (Art. 616)
Legal v. Voluntary
a . . Legal— that which exists by law;
b. Voluntary— that which is formed
by the will of the parties. (Art.
6.
7.
Aqueduct; and
Construction of a stock lock or sluice
gate.
Q: Discuss the obligations
drainage of buildings.
involved
in
615)
Q: How are continuous
easements acquired?
and
apparent
A: (Art. 620)
1. By virtue of title
2. By prescription of 10 years through adverse
possession or frequent exercise
a. Positive - from the day which dominant
estate commenced to exercise it
b. Negative - from the day which the
dominant
estate forbade,
by
an
instrument acknowledged before a
notary public, the servient estate, from
executing an act which would be lawful
without the easement. (Art. 621)
Q: What easements may be acquired only by
virtue of a title?
A: (Art. 622)
' ' 1. Continuous and non-apparent;
2. Discontinuous and apparent;
3. Discontinuous and non-apparent
Q: What are the different legal easements?
A:
1.
2.
3.
4.
5.
6.
7.
8.
Relating to water;
Right of way;
Light and view;
Party wall;
Drainage of buildings;
Distances and works;
Lateral / Subjacent support
Against nuisance.
A: The owner of a building shall be obliged to:
1. Construct its roof in such manner that
the rain water shall fall on his own land
or on a street or public place, and not on
the iand of his neighbor; and
2. Collect the water falling on his land so as
not to cause damage to the adjacent
land. (Art. 674)
Q: What are the requisites for right of way?
A: (Art. 649-650)
' 1. Claimant is the owner of enclosed
immovable or one with real right to it;
2. No adequate outlet to public highway;
3. Right of way absolutely necessary and
not for mere convenience;
4. Isolation not foe to owner’s own act;
5. Established at point least prejudicial to
servient estate, that is, shortest and least
damaging;
6. Payment of property indemnity: value of
land if easement is continuous and
permanent, damages if limited to
necessary passage.
The burden of proving the requisites lies on the
owner of the dominant estate. (Costabella Corp v.
CA, G.R. No. 80511, 1991)
Q: What determines
easement?
the
width
Of
the
A: The width of the easement shall be that which
is sufficient for the needs of the dominant estate,
and may be changed from time to time. (Art. 651)
Q: What is an easement of light and view?
Q: What are the easements relating to water?
A:
1.
2.
3.
4.
5.
Natural drainage of waters;
Drainage of buildings;
Easement on
riparian
banks for
navigation, floatage, fishing, recreation,
salvage, and towpath;
Easement of a dam;
Drawing water or for watering animals.
A: It is the right to make opening in one’s own wall
to:
1. Admit light;
2. Make projections; or
3. Afford a view upon or towards an
adjoining land or tenement. (CIVIL
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CODE, Art. 669-670)
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Q: What is the period of prescription for the
acquisition of an easement of light and view?
A: It shall be counted from time:
1. time of the opening of the window, if it is
through a party wall; or
2. time of the formal prohibition upon the
proprietor of the adjoining land or tenement,
if the window is through a wall on the
dominant estate. (Art. 668)
Q: What are the restrictions on easements of
light and view?
A: The restrictions are:
1. Direct view— distance of 2 meters
between the wall or the projection and the
contiguous property;
2. Side or Oblique View— distance of 60
centimeters between the two properties
Q: How are easements extinguished?
A: (M-10-EFR2)
1. Merger in the same person of the
ownership of the dominant and servient
estates;
2. Non-use for 10 years;
3. Either or both of the Estates fall into such
condition that the easement cannot be
used;
4. Expiration of the term or the Fulfillment of
the condition if the easement is
temporary or conditional;
5. Renunciation of the owner of the
dominant estate; and
6. Redemption agreed upon between the
owners of the dominant and servient
estates. (CIVIL CODE, Art. 631)
G. NUISANCE
(Art. 669).
Q: What is a party wall?
Q: What is a nuisance?
A: A wall used jointly by two parties under
easement agreement, erected upon a line
separating two parcels of land, each of which is a
separate estate. (B.P. 220, Sec. 3)
A:
A
nuisance
is any act,
omission,
establishment, business, condition of property, or
anything else, which: (IASOH)
1. Injures or endangers the health or safety
of others;
2. Annoys or offends the senses;
3. Shocks, defies, or disregards decency or
morality;
4. Obstructs or interferes with the free
passage of any public highway, street, or
any body of water; or
5. Hinders or impairs the use of property.
Q: In what instances is an easement of party
wall presumed?
A: The easement of party wall is presumed in:
1. Dividing walls of adjoining buildings up to
the point of common elevation;
2. Dividing walls of gardens or yards
situated in cities, towns, or in rural
communities;
3. Fences, walls, and live hedges dividing
rural lands. (Art. 659)
Q: What is an easement against nuisance?
A: It is the easement to which every building or
piece of land is subjected to, prohibiting the
proprietor or possessor from committing nuisance
through noise, jarring, offensive odor, smoke,
heat, dust, water, glare, and other causes. (Art.
682)
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(Art. 694)
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1. OCCUPATION
Q: Distinguish a nuisance per se from a
nuisance per acciderts.
Q: What may be acquired by occupation?
A:
Nuisance p e rse
Nuisance per
accidens
Nuisance under any
and all circumstances
Nuisance only upon
certain conditions
and circumstances
Existence is a
question of fact
Constitutes a direct
menace to public
health or safety
May be abated
summarily under the
law of necessity
Cannot be abated
without due hearing
in a tribunal
authorized to decide
whether such a thing
does in law constitute
a nuisance
(Salao v. Santos, G.R. No. L-45519, 1939)
Q: Distinguish a public nuisance from a
private nuisance.
A: A public nuisance affects a community or
neighborhood or any considerable number of
persons, although the extent of the annoyance,
danger, or damage, upon individuals may be
unequal. A private nuisance is that which is not
included in the definition of a public nuisance. It
violates only private rights and produces damage
to but one or a few persons. (Art. 695)
Q: What are the remedies against a public
nuisance?
A:
1.
2.
3.
Prosecution under the RPC or a
municipal ordinance;
Civil action; or
Abatement without judicial proceedings.
(Art. 699)
H. MODES OF ACQUIRING OWNERSHIP
Q: What are
ownership?
the
modes
of
A: Things appropriable by nature, which are
without an owner, such as:
1. Animals that are the object of hunting and
fishing;
2. Hidden treasure;
3. Abandoned movables. (Art. 713)
Q: What are the requisites of occupation?
A: The requisites are: (SC-NOIR)
1. Seizure of a thing;
2. Thing must be a Corporeal personal
property;
3. Thing must be appropriable by Nature:
4. Thing must be abandoned by orwithout
an Owner;
5. There must be intention to appropriate;
and
6. The Requisites and conditions laid down
by law must be complied with. (Art 713)
2. DONATION
Q: What is a donation?
A: An act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another,
who accepts it. (Art. 725)
Q: When is a donation perfected?
A: From the moment the donor knows of
acceptance by the donee. (Art. 734) The donee
must accept the donation personally, or through
an authorized person with a special power for the
purpose, or with a general and sufficient power;
otherwise, the donation shall be void. (Art. 745)
Acceptance must be made during the lifetime or
the donor and of the donee. (Art. 746)
acquiring
A: (OLDTIPS)
I . Occupation;
2. Law;
3. Donation;
4. Tradition;
5. Intellectual Creation;
6. Prescription;
7. Succession. (Art. 712)
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Q: What are the formal requisites of donations
of immovable properties?
4.
A: The formal requisites are:
1. To be valid, donation must be:
a.
In a public document;
b. specifying the property donated
and the value of the charges
which the donee must satisfy.
2. Acceptance must be done:
a. in the same deed of donation or
in a separate public document;
b. during the lifetime of the donor.
If done in a separate instrument, donor shall be
notified in an authentic form and such step is
noted in both instruments. (Art. 749)
5.
Q: What are the rules on the form of donation
of movable properties?
A : (Art. 748)
1. If the value of the property is P5,000 or
less:
a. Orally, provided simultaneous
delivery, of the thing or of the
document representing the right
donated, whether actual or
constructive, is made; or
b. In writing, without need of
simultaneous delivery.
2. if the value of the property exceeds
P5,000
a. Both donation and acceptance
must be made in writing.
Otherwise, it is void.
6.
mortis causa. (Villanueva v.
Branoco, G.R. No. 172804, 2011)
A: When the donor intends that the donation shall
take effect during the lifetime of the donor, though
the property shall not be delivered till after the
donor’s death. The fruits of the property from the
time of the acceptance of the donation, shall
pertain to the donee, unless the donor provides
otherwise. (Art. 729)
Q: What is the effect of illegal or impossible
conditions
in
simple
renumeratory
donations?
A: They shall be considered as not imposed. (Art.
727)
Q: What are void donations?
1.
2.
Q: What are the distinguishing characteristics
of donations mortis causa?
A:
1.
2.
3.
Convey no title or ownership to the transferee
before the death of the transferor;
Transfer should be revocable at will before
the donor’s death;
Transfer should be void if the transferor
should survive the transferee;
Spouses
Q: What are donations /nfer vivos?
Q: What are donations mortis causa?
A: Donations which are to take effect upon the
death of the donor partake the nature of
testamentary provisions and shall be governed by
the rules on Succession. (Art. 728)
Specification in a deed of the causes
whereby the act may be revoked indicates
that the donation is inter vivos;
Designation of the donation as mortis causa
are not controlling criteria and should be
construed together with the rest of the
instrument; and
In case of doubt, the conveyance should be
deemed donation inter vivos rather than
3.
4.
Those made between persons who were
guilty of adultery or concubinage at the time
of the donation;
Those made between persons found guilty of
the same criminal offense, in consideration
thereof;
Those made to a public officer or his wife,
descendants and ascendants, by reason of
his office. (Art. 739)
Those made to incapacitated persons,
though simulated under the guise of another
contract or through a person who is
interposed. (Art. 743)
Q: Is a prohibition in a deed of donation
against the alienation of the property for an
entire century valid?
A: No, being an unreasonable denial of an
integral attribute of ownership, it is an illegal or
impossible condition. Thus, the condition shall be
considered as not imposed. ( The Roman Catholic
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Archbishop o f Manila v. Court of Appeals, G.R..
No, 77425, 1991)
Q: What may not be subject to prescription?
A:
1.
2.
3.
4.
Q: What are the grounds for revocation of
donations?
A: The grounds for revocation of donations are
Public domain;
Intransmissible rights;
Movables possessed through a crime;
Registered land.
(ICA):
1.
2.
3.
Inofficiousness {Art. 760);
Failure to comply with any Condition
imposed upon the donee {Art. 764)\
Acts of ingratitude by the donee {Art.
765):
Q: What is the concept of possession in
acquisitive prescription?
A: Possession has to be in the concept of an
owner, public, peaceful and uninterrupted. (Art.
1118)
Q: When may a donation be revoked by
reason of ingratitude?
A:
1.
2.
3.
If the donee should commit an offense
against the person, honor, or property of
the donor, his wife, or children under
parental authority;
If the donee imputes any criminal offense
or act involving moral turpitude to the
donor;
If the donee unduly refuses the donor
support when the donee is legally or
morally bound to provide support. {Art.
765)
Q: Define good faith of the possessor.
A: The good faith of the possessor consists in the
reasonable belief that the person from whom he
received the thing was the owner thereof, and
could transmit his ownership. (Art. 1127)
Q: When is there just title?
A: For the purposes of prescription, there is just
title when the adverse claimant came into
possession of the property through one of the
modes recognized by law for the acquisition of
ownership or other real rights, but the grantor was
not the owner or could not transmit any right. (Art.
1129)
3. PRESCRIPTION
Q: What are the rules for ordinary acquisitive
prescription?
Q: What is prescription?
A: Prescription is a mode by which one acquires
ownership and other real'rights through lapse of
time, in the manner and conditions laid down by
law (acquisitive prescription). It is also a means
by which one loses ownership, rights and action,
retroactive from the moment period began to run
(extinctive prescription). {Art. 1106)
A:
1.
2.
3.
4.
5.
Q: What are the subjects of prescription?
Possession in good faith;
By virtue of a just title;
Within time fixed by law:
a. 4 years— movables;
b. 10 years— immovables;
In concept of an owner;
Public, peaceful, and uninterrupted. (Art.
1132, 1134, 1137)
A: All things which are within the commerce of
men are susceptible of prescription, unless
otherwise provided. Property of the State or any
of its subdivisions not patrimonial in character
shall not be the object of prescription. (Art. 1113)
Q: What are the rules for extraordinary
acquisitive prescription?
A:
1.
2.
Page 40 of 120
Possession, without need of just title or
good faith;
Within time fixed by law:
a. 8 years— movables;
b. 30 years— immovables
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3.
4.
In concept of an owner;
Uninterrupted adverse possession. (Art.
|
IV. SUCCESSION
1132, 1134, 1137)
j
A. GENERAL PROVISIONS
Q: Summarize the prescriptive periods.
Q: Distinguish Succession from Inheritance.
A:
A: Succession refers to the legal mode by which
inheritance is transmitted to the persons entitled
to it; while inheritance refers to the universality
or entirety of the property, rights and obligations
of a person who died.
Action
Action over
immovables
Mortgage action
Action upon written
contract
Action upon
obligation created
by law
Action upon
judgment
Action to recover
movables
Action upon an oral
contract
Action upon a
quasi-contract
Upon injury to
rights
Upon a quasi-delict
Upon rescission or
annulment of
contract
Forcible entry and
unlawful detainer
Defamation
Others where
periods are not
fixed by law
Prescriptive Period
10 years - with good
faith and just title
30 years - without
10 years
10 years
Q: When are
transmitted?
the
right
to
succession
10 years
10 years
4 years - with good
faith and just title
8 years - without
6 years
6 years
A: The right to the succession are transmitted
from the moment of the death of the decedent.
(Art. 777) However, a person may be presumed
dead for the purpose of opening his succession,
(see rules on presumptive death, Art. 390-391) In
this case, succession is only of provisional
character because there is always the chance
that the absentee may be alive.
Q: Can future inheritance be the subject of a
contract of sale while the predecessor lives?
4 years
4 years
4 years
1 year
1 year
5 years
A: No, because the seller owns no inheritance
while his predecessor lives. (Art. 1347 in relation
to Art. 777)
Q: Before her parents’ death, Y executed an
instrument in favor of X, entitled “Waiver of
Hereditary Rights and Interest Over a Real
Property (Still Undivided)”. Z contends that
the waiver of rights and interests executed by
Y is null and void for violating Article 1347 of
the Civil Code, prohibiting future inheritance
to be the object of contracts. Is Y’s waiver of
hereditary rights valid?
A: No. The second paragraph of Article 1347 of
the Civil Code provides that no contract may be
entered into upon a future inheritance except in
cases expressly authorized by law. A contract
may be classified as a contract upon future
inheritance if the following requisites concur: (1)
that the succession has not yet been opened (2)
that the object of the contract forms pflrt of the
inheritance (3) that the promissor has, with
respect to the object, an expectancy of a right
which is purely hereditary in nature. In this case,
there is no question that at the time of execution
of Y’s “Waiver of Hereditary Rights and Interest
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Over a Real Property (Still Undivided)”,
succession to either of her parents properties has
not yet been opened since both of them are still
living. With respect to the other two requisites,
both are likewise present considering that the
property subject matter of Y ’s waiver concededly
forms part of the properties that she expect to
inherit from her parents upon their death and,
such expectancy of a right, as shown by the facts,
is undoubtedly purely hereditary in nature. Y ’s
waiver of hereditary rights is not vaiid and cannot
be the source of any right or create any obligation.
No contract may be entered into upon a future
inheritance except in cases expressly authorized
by law. (Ferrer v. Diaz, G.R. No. 165300, April 23,
2010)
B. TESTAMENTARY SUCCESSION / WILLS
1. WILLS
Q: What is a will?
A: It is an act whereby a person is permitted with
the formalities prescribed by law to control to a
certain degree the disposition of his estate to take
effect after his death. (Art. 783) It will disposes
only the free portion of the estate. (Art. 886;
Balane, supra, p. 38)
Q: What is the Principle of Severability in
relation to the ambiguity in a will?
A: The invalidity of one of several dispositions
contained in a will does not result in the invalidity
of the other dispositions, unless it is to be
presumed that the testator would not have made
such other dispositions if the first invalid
disposition had not been made. (Art. 792)
Q: Are properties acquired after the execution
of the will deemed part of the properties being
disposed of?
A: No. Property acquired during the period
between the execution of the will and the death of
the testator is NOT included among the property
disposed of, except when a contrary intention
expressly appears on the will. (Art. 793)
Q: Who are capacitated to make a will?
A: The following are capacitated to make a will:
(NES)
1. Natural person not expressly prohibited by
law to make a will. (Art. 796)
2. Eighteen (18) years old and above (Art. 797).
3. Of Sound mind, at the time of its execution
(Art. 798)
All of these must be present at the time of the
execution of the will, (in relation with Art. 801)
Q: When is a testator considered to be of
sound mind?
A: To be of sound mind, it is not necessary that
the testator be in fuli possession of all his
reasoning faculties, or that his mind be Wholly
unbroken, unimpaired, or unshattered by
disease, injury or other cause. (Art. 799)
A testator is considered of sound mind if at the
time of making of the will he knows the following:
1. Nature of the estate to be disposed of - The
testator should have a fairly accurate
knowledge of what he owns. (Balane, supra,
p. 53)
2. Proper objects of. his bounty - The testator
should know under ordinary circumstances,
who his relatives in the most proximate
degrees, are. (Balane, supra, p . 53)
3. Character of the testamentary act (Art. 799)
- The testator should know the legal nature of
a will. He or she must know that he is
executing a document that disposes of his
properties gratuitously, which would take
effect upon his death. (Balane, supra, p . 53-
54)
Q: Who has the burden of proving that the
testator was not of sound mind at the time of
the
execution
of
the
will?
A: The burden is on the person who opposes the
probate of the will. As a general rule, the law
presumes that every person is of sound mind, in
the absence of proof to the contrary. However, if
the testator, one month, or less, before making
his will, was publicly known to be insane, the
burden of proving that the testator made the will
during a lucid interval shifts to the person who
maintains the validity of the wiii. (Art. 800)
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Q: During probate proceedings, Z testified
that X was “forgetful because she would
sometimes leave her wallet in the kitchen then
start looking for it moments later.” Did Z’s
testimony clearly prove that X is of unsound
mind when X executed her will?
A: No. Forgetfulness is not equivalent to being of
unsound mind. A testator is presumed to be of
sound mind at the time of the execution of the will
and the burden to prove otherwise lies on the
oppositor. (Art. 800) Bare allegations of duress or
influence of fear or threats, undue and improper
influence and pressure, fraud and trickery cannot
be used as basis to deny the probate of a will.
(Baltazar v. Laxa, G.R. No. 174489, April 11,
2012)
Q: What is the legal effect of supervening
capacity or incapacity after the execution of a
will?
Q: When is there a presumption that the
testator knows and understands the language
or dialect in which his will is written?
A: There is a presumption if:
1. The will was executed in a language
generally spoken in the place of execution;
and
2. The testator is a native or resident of such
locality. (Abangan v. Abangan, G.R. No. L-
13431, 1919)
NOTARIAL WILLS
Q: What are the formal requirements for
notarial wills? (Art. 805-806)
A:
1.
2.
A: Supervening capacity or incapacity does not
invalidate an effective will, nor is the will of an
incapable validated by supervening capacity (Art.
3.
801).
- FORMS OF WILLS
Q: Compare and
holographic wills.
4.
contrast
notarial
and
5.
A: A notarial or attested will is an ordinary will
acknowledged before a notary public by the
testator and the instrumental witnesses (Art. 805806), while a holographic is a will totally
handwritten, dated, and signed by the testator
alone. (Art. 810) Regardless of such difference,
both wills must be in writing (Art. 804), and
executed in a language or dialect known to the
testator. (Art. 804)
6.
7.
Q: May a will be written using the testator’s
blood?
A: Yes. Any form of writing is allowed, as long as
the writing must be understood by others, and it
must be capable of being preserved and with
permanence. Generally, wills are probated after
the death of the testator, so it must have the
character of permanence and clarity.
8.
Subscribed by the testator or his agent in his
presence and by his express direction at the
end thereof, in the presence of the witnesses;
Attested and subscribed by^at least three
credible witnesses in the presence of the
testator and of one another;
The testator or his agent, must sign every
page, except the last, on the left margin in the
presence of the witnesses;
The witnesses must sign every page, except
the last, on the left margin in the presence of
the testator and of one another;
The witnesses must sign every page, except
the last, on the left margin in the presence of
the testator and of one another;
All pages must be numbered correlatively in
letters on the upper part of each page;
Attestation clause stating:
a. The number of pages of the will;
b. The fact that the testator or his agent
under his express direction signed
the will and every page thereof, in the
presence of the witnesses;
c. The
fact
that
the
witnesses
witnessed and signed the will and
every page thereof in the presence of
the testator and one another;
Acknowledgement before a notary public
Q: The decedent(A) left 4 children and a wife.
When the will was presented for probate, it
was opposed by B for the will was not
executed and attested as required by law. The
will is alleged to be invalid because of a
discrepancy in the number of pages as the
acknowledgement
mentions
7
pages
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including
the
ratification
and
acknowledgement when in fact it is made up
of 8 pages. Is the will valid?
A: No. The rule must be limited to disregarding
those defects that can be supplied by an
examination of the will itself. In this case, the w ill
actually consists of 8 pages including its
acknowledgment which discrepancy cannot be
explained by mere examination of the will itself
but through the presentation of evidence aliunde.
Thus, the wifi must be denied for probate. (Lopez
Q: When is the rule on substantial compliance
applicable? (Art. 809)
A: The substantial compliance rule is only
applicable to the attestation clause. In the
absence of bad faith, forgery, fraud, undue and
improper pressure and influence, the defects and
imperfections in the form of attestation or in the
language used therein shall not render the will
invalid, if it is proved that the will was in fact
executed and attested in substantial compliance
with all the requirements of Art. 805. (Art. 809)
v. Lopez, G.R. No. 189984, 2012)
Q: What is the effect of signing before the end
of the will?
A: It invalidates not only the dispositions that
come after, but the entire will, because the one of
the statutory requirements would not have been
complied with. (Azuela v. Court of Appeals, G.R.
However, only omissions in the attestation clause
which can be supplied by an examination of the
will itself or by intrinsic evidence will not be fatal
to the validity of the will. The omissions in the
attestation clause which can only be proved by
extrinsic evidence would result in the invalidation
of the attestation clause and ultimately of the will
itself. (Caneda v. CA, G.R. No. L-18076, 1962)
No. 122880, 2006)
HOLOGRAPHIC WILLS
Q: May the notary public also be one of the
three attesting witnesses?
A: No. He must not be one of the three attesting
witnesses. (Cruz v. Villasor, G.R. No. L-32213,
1973)
Q: What are the special requirements for
handicapped testators?
A: The following are the special requirements:
I. For deaf/deaf-mute testator (Art. 807)
1. If able to read — he must read the will
personally
2. If unable to read — he must designate
two persons to read the will and
communicate to him, in some practicable
manner its contents.
II. For blind testator (Art. 808)
The will shall be read to him twice, once by one
of the subscribing witnesses and another by the
notary public before whom the will is
acknowledged.
The special requirements for handicapped
testators are mandatory, non-compliance with
Articles 807 or 808 will result in nullity and denial
of probate. (R alana, s u p ra )
Q: What are the requirements for holographic
wills? (EHAND-DS)
A: A holographic will is valid only if it is:
1. Entirely HANDwritten by the testator
2. Dated by him
3. Signed by him (Art. 810; Balane, supra,
p. 130)
Q: Are joint wills allowed in the Philippines?
A: No. A joint wHi is a document which constitutes
the wills of two or more individuals. Two or more
persons cannot make a will jointly, or in the same
instrument, either for their reciprocal benefit or for
the benefit of a third person. (Art. 818) These
kinds of wills are void.
If there are several documents, each serving as
one independent will, even if they are written on
the same sheet, they are not joint wills. (Balane,
supra)
Q: Are joint wills executed by Filipinos abroad
valid?
A: No. It shall not be valid in the Philippines, even
though authorized by the laws of the country
where they may have been executed. (Art. 8 19)
However, reciprocal wills of foreign nationals
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jointly probated in another jurisdiction, can be
admitted for reprobate in the Philippines since the
prohibition is in the making of joint wills, and not
on the joint probate of wills. (Vda. De Perez v.
Tolete, G.R. No. 76714, 1994)
WITNESSES TO WILLS
Q: What are the qualifications of a witness to
wills?
A: A witness must be:
1. Of sound mind (Art. 820)
2. At least 18 years of age (Art. 820)
3. Not blind, deaf, or dumb (Art. 820)
4. Able to read and write (Art. 820)
5. Domiciled in the Philippines (Art. 821)
6. Not have been convicted of falsification
of a document, perjury, or false testimony
_
(Art. 821)
The above qualifications must be possessed at
the time of attesting the will. Their subsequent
incompetence shall not prevent the allowance of
the will. (Art. 822)
CODICILS
AND
REFERENCE
INCORPORATION
Holographic wills cannot incorporate documents
by reference unless the incorporated paper is
also entirely in the handwriting of the testator. In
case of notarial wills, it is sufficient that the
signatures of the testator and witnesses are on
every page of the incorporated document.
(Balane, supra, p. 183)
REVOCATION
OF
WILLS
TESTAMENTARY DISPOSITIONS
AND
Q: What are the modes of revoking a will?
A: A will may be revoked only in the following
modes: (Art. 830) (LSPd)
1. By implication of Law
2. By Subsequent will
3. By Physical Destruction - by burning,
tearing, cancelling, or obliterating the will
with intention of revoking it, by the
testator himself, or by some other person
in his presence, and by his express
direction.
BY
Q: How is a will revoked by implication of law?
Q: What is a codicil?
A: It is a supplement or addition to a will, made
after the execution of a will and annexed, to be
taken as a part of the will. It explains, adds, or
alters, any disposition made in the original will.
(Art. 825)
Q:
What are
the
requirements
incorporation by reference?
except in case of voluminous books of
account or inventories. (Art. 827)
for
A: If a will refers to a document or paper, such
document or paper will be considered a part of
the will if the following requisites concur: (EPPS)
1. The document or paper referred to in the
will must be in Existence at the time of the
execution of the will;
2. The will must clearly describe and
identify the same, stating among other
things the number of Pages thereof;
3. It must be identified by clear and
satisfactory Proof as the document or
paper referred to therein; and
4. It must be Signed by the testator and the
witnesses on each and every page
A: The following are forms of revocation by
implication of law:
1. Preterition (Art. 854)
2. Legacy or credit against third person or
remission of debt was provided in will and
subsequently, testator brings action
against debtor (Art. 936)
3. Substantial transformation of specific
thing bequeathed or sale or disposition of
property bequeathed or devised before
the death of the testator (Art. 957)
4. When heir, devisee or legatee commits
any of the acts of unworthiness (Art.
1032)
5.
Decree of legal separation revoke
testamentary dispositions in favor of the
guilty spouse (par. 4, Art. 63, Family
6.
Annulled or void ab initio marriages
revoke testamentary dispositions made
by one spouse in favor of the other (Art.
Code)
50, Family Code)
7.
Page 45 of 120
If both spouses of the subsequent
marriage acted in bad faith, said
marriage shall be void ab initio and
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testamentary dispositions made by one
in favor of the other are revoked by
operation of law. (Art. 44, Family Coda)
PROBATE
(ALLOWANCE
OR
DISALLOWANCE OF WILLS)
Probate - Judicial process of proving:
Q: How do subsequent wills revoke previous
ones?
1.
2.
A: Subsequent wills revoke a previous one when
there is a revocatory clause revoking it. If there is
no revocatory clause, only dispositions in the
prior wills which are inconsistent with or contrary
to those contained in the latter wills are
considered revoked. (Art. 831)
Q: What are the requisites of physical
destruction for it to be considered as
revocation of a will?
A: The following are the requisites of revocation
by physical destruction:
1. Testamentary capacity at the time of
performing the act of destruction;
2. Intent to revoke (animus revocandi);
3. Actual physical act of destruction; and
4. Performed by the testator himself or by
some other person in his presence and
express direction (Art. 830 (3))
Compliance with formal requirements of
will; and
Testamentary capacity of the testator.
Irrespective of whether its provisions are valid
and enforceable or otherwise. (Fernandez v.
Dimagiba, G.R. No. L-23638, 1967)
Q: How is the extrinsic validity of wills proven
in probate proceedings?
A: They are proven as follows:
ATTESTED / NOTARIAL WILLS
Un contested
One subscribing witness only,
if such witness testify that the
will was executed as is
required by law (Rule 76,
Contested
All the subscribing witnesses,
and the notary (Rule 76,
Section 5, Rules o f Court)
Section 11, Rules o f Court)
HOLOGRAPHIC WILLS
------Uncontested
At least one witness who
knows the handwriting and
signature
of the
testator
explicitly declare that the will
and the signature are in the
handwriting of the testator (Art.
Contested
At least three witnesses who
knows the handwriting and
signature
of the
testator
explicitly declare that the will
and the signature are in the
handwriting of the testator (Art.
Q: What is the Doctrine of Dependent Relative
Revocation?
A: As a general rule, revocation of wills is always
effective. However, the Doctrine of Dependent
Relative Revocation provides that when the
testator provides in the subsequent will that the
revocation of the prior one is dependent on the
capacity or acceptance of the heirs, devisees, or
legatees instituted in the subsequent will, the
revocation shall not be effective.
In the doctrine of dependent relative revocation,
the first will may be admitted to probate and given
effect, despite it being torn provided that the
testator tore it with the mistaken belief that the
second will was perfectly valid. This is because
he would have not destroyed the first will had he
known that second will is not valid. The revocation
is therefore dependent on the validity of the
second will. (Molo v. Molo, G.R. No. L-2538,
811)
811)
Q: What are the requirements for the probate
of a lost or destroyed will? (Rules o f Court,
Rule 76, Sec. 5)
A:
1.
2.
1951)
3.
Establish the execution and validity of the will
Establish that the will is in existence at the
time of death of the testator, or is shown to
have been fraudulently or accidentally
destroyed in the lifetime of the testator
without his knowledge
Its provisions must be c! Qorl\/
v^ oii iy
nd
proved by at least two credible witnesses
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Q: What are the exclusive grounds for
disallowance of wills? (LIF-P-FRAM)
A: Wills may be disallowed based on:
1. Formalities required by Law were not
complied with;
2. Testator was Insane or incapable of
making a will at the time of execution
(lack of testamentary capacity);
3. The will was executed through Force or
under duress, or the influence of fear, or
threats;
4. The will was procured by undue and
improper Pressure and influence, on the
part of the beneficiary or of some other
person;
5. The testator’s signature was procured
through Fraud; and
6. If the testator acted by Mistake or did not
intend that the instrument he signed
should be his will at the time of affixing
his signature.
Once a will is disallowed because of any of the
following grounds, intestate succession will
ensue.
2. INSTITUTION OF HEIRS
Q: What are the requisites
institution of an heir?
for
a valid
A: The following are the requisites for a valid
institution of an heir:
1. Designation in the will of person/s to
succeed (Art. 840)
2. The will specifically assigns to such
person an inchoate share in the estate.
3. The person so named has capacity to
succeed.
4. The will is formally valid
5. No vice of consent is present
6. No preterition results from the effect of
such will (Art. 854)
Q: What are the presumptions in institution of
heirs?
A: In the absence of specific provisions in the will,
these presumptions will apply: (E-ln-S)
(a) Equality - Heirs who are instituted without
designation of shares inherit in equal parts.
(Art. 846)
(b) Individuality - Heirs collectively instituted are
deemed individually named unless a
contrary intent is prove. (Art. 847)
(c) Simultaneity - When several heirs are
instituted, they are deemed instituted
simultaneously and not successively. (Art.
849)
Q: What is preterition?
A: Preterition is the total omission of a compulsory
heir from the inheritance. It consists in the silence
of the testator with regard to a compulsory heir,
omitting him in his will, either by not mentioning
him at all, or by not giving him anything in the
hereditary property but without expressly
disinheriting him, even if he is mentioned in the
will in the latter case. (Heirs o f Ureta v. Ureta,
G.R. No. 165748, 2011)
What constitutes preterition is not mere omission
in the will, but being completely left out of the
inheritance. (Seangiov. Reyes, G.R. No. 140371-
72, 2006)
Q: What are the effects of preterition?
A: Preterition shall have the following effects:
1. The institution of heir is annulled.
2. Devises and legacies shall remain valid as
long S 3 they are not inofficious.
3. If the omitted compulsory heir should die
before the testator, the institution shall be
effectual, without prejudice to the right of
representation.
Q: Distinguish preterition from disinheritance.
PRETERITION
DISINHERITANCE
Deprivation of a
compulsory heir of
his legitime is tacit
Law presumes that
there has been
merely an oversight
or mistake on the part
of the testator
it results in the
complete nullity of the
institution of heir,
except the devises
and legatees, as long
as they are not
inofficious.
Page 47 of 120
Deprivation of the
compulsory of his
legitime is express
Done with a legal
cause
The nullity is limited
to the portion of the
estate of which the
disinherited heir has
been legally
deprived.
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Omitted heir gets not
only his legitime, but
also his share in the
free portion not
disposed of by way of
legacies or devises
If disinheritance is
unlawful or
ineffective, for
absence of one or
other of the
requisites, the
compulsory heir is
merely restored to his
rightful share.
(Nuguid v. Nuguid,
G.R. No. L-23445)
(e) Fideicommissary Substitution - If the testator
institutes an heir with an obligation to deliver
to another the property so inherited. The heir
instituted to such condition is called the first
heir or fiduciary heir, the one to receive the
property is the fideicommissary or second
heir. (Art. 863)
Q:
What
are
the
requisites
for
a
fideicommissary substitution? (1st-2nd-1-PTLEx-Free)
A:
1.
3. SUBSTITUTION OF HEIRS
Q: What is meant by substitution of an heir?
2.
A: Substitution is the appointment of another heir
so that he may enter into the inheritance in default
of the heir originally instituted. (Art. 857)
(Art. 863)
3.
The second heir must be ONE degree from
the first heir. Thus, the fideicommisary can
only be a parent or a child of the fiduciary.
4.
The dual obligation imposed upon the
fiduciary to Preserve the property and to
Transmit it after the lapse of the period to the
fideicommissary heir. (Art. 865)
Both heirs must be Living and qualified to
succeed at the time the testator’s death.
The fideicommissary substitution must be
Expressly made. (Art. 865)
The fideicommissary substitution is imposed
on the Free portion of the estate and never
on the legitime. (Art. 864)
Q: Is a substitute subject to the same charges
and conditions Imposed on the original heir?
A: The substitute shall be subject to the same
charges and conditions imposed upon the
instituted heir, unless and testator has expressly
provided the contrary, or the charges or
conditions are personally applicable only to the
heir instituted. (Art. 862)
A: Substitution may be:
(a) Vulgar or Simple - The testator may
designate one or more persons to substitute
the heir or heirs instituted in case such heir or
heirs should die before him (predecease), or
should not wish to be instituted (renunciation)
or should be incapacitated to accept the
inheritance (Art. 859)
(b) Brief - Two or more persons may be
substituted for one person (Art. 860)
(c) Compendious one person may be
substituted for two or more heirs (Art. 860)
(d) Reciprocal - If heirs instituted in unequal
shares should be reciprocally substituted, the
substitute shall acquire the share of the heir
who dies, renounces, or incapacitated,
unless it clearly appears that the intention of
the testator was otherwise. If there are more
than one substitute, they shall have the same
share in the substitution as in the institution.
(Art. 861)
(Palacios v. Ramirez, G.R. No. 27952, 1982)
5.
6.
7.
Q: What are the classes of substitution?
A fiduciary or a FIRST heir who takes the
property upon the testator’s death. (Art, 863)
A fideicommisary or SECOND heir who takes
the property subsequently from the fiduciary.
The following shall not take effect: (Art. 867)
A:
1.
Fideicommissary substitutions which are not
made in an express manner, either by giving
them this name, or imposing upon the
fiduciary the absolute obligation to deliver the
property to a second heir;
2. Provisions which contain a perpetual
prohibition to alienate, and even a temporary
one, beyond the limit fixed in Article 863.
3. Those which impose upon the heir the charge
of paying to various persons successively,
beyond the limit prescribed in Article 863, a
. certain income or pension;
4. Those which leave to a person the whole or
part of the hereditary property in order that he
may apply or invest the same according to
secret instructions communicated to him by
the testator.
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4.
CONDITIONAL TESTAMENTARY
DISPOSITIONS AND DISPOSITIONS WITH A
TERM
Q: What are the prohibited conditions in
testamentary dispositions?
A: The prohibited conditions are: (LIM-Will)
1. Charges, conditions, substitutions, upon the
Legitimes. (Art. 872)
2. Impossible conditions and those contrary to
law or good customs. (Art. 873)
3. An absolute condition not to contract a first or
subsequent Marriage. (Art. 874) However, if
the condition not to contract a first or
subsequent marriage has been imposed on
the widow or widower by the deceased
spouse, or by the latter’s ascendants or
descendants, such condition is valid. (Art.
(e) In the direct ascending line, there is the rule
of division by line. The legitime is* divided
equally between the paternal and maternal
side. After the portions corresponding to the
line has been assigned, there will be equal
apportionment between or among the
recipients within the line, should there be
more than one. (Art. 890)
(f) There is no right of representation in the
direct ascending line. (Art. 972)
For a surviving spouse to inherit from the
deceased, the marriage between the decedent
and the widow/widower must be either valid or
voidable. (Balane, supra, p.341)
874)
4.
Disposition Captatoria - Any disposition
made upon the condition that the heir shall
make some provision in his WILL in favor of
the testator or of any other person. (Art. 875)
5.
LEGITIMES
Q: What is a legitime?
A: Legitime is that part of the testator’s property
which he cannot dispose of because the law has
reserved it for his compulsory heirs. (Art. 886)
Q: Who are compulsory heirs? (Art. 887)
(a) Legitimate or adopted children and/or
legitimate descendants.
(b) Legitimate parents and/or ascendants,
parents of illegitimate children.
(c) Surviving spouse
(d) Illegitimate children and/or descendants
General Rules in Ascertaining Legitimes
(a) Rule of proximity: The nearer exclude the
more remote, except when the rule on
representation is proper. (Art. 962)
(b) Legitimate parents or ascendants are
excluded only by legitimate children. (Arts.
896, 899)
(c) Parents of illegitimate children are excluded
by both legitimate and illegitimate children.
(Art. 903)
(d) The illegitimate ascending line does not go
beyond the parents. (Art. 903; Balane, supra,
p.345)
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DIFFERENT COMBINATIONS OF SHARES OF COMPULSORY HEIRS (Art. 888-903)
U
P lD
I IH«Mi X
FREE
LEGITIME
PORTION
Legitimate
Descendants
Children
Legitimate Children
Surviving Spouse
&
(LC)
&
Legitimate Children
-
1/2
W hatever ;
remains
Spouse - Equal to share of 1 LC
One Legitimate Child/Descendant
& Surviving Spouse
Legitimate
Children
(LC)
Illegitimate Children (ILC)
1/2
1/2
&
C hild/D escendant-1/2
S p o u s e - 1/4
1/4
Legitimate Children -1/2
Illegitimate Children - 1/2 of share of 1 LC as may be
accommodated, otherwise reduce proportionately
Legitimate
Children/Descendants, Surviving
Spouse & Illegitimate Children
One Legitimate Child, Illegitimate
Children & Surviving Spouse
LC -1 /2
Spouse - equal to 1 share of 1 LC
ILC - 1/2 of share of 1 LC as may be accommodated,
otherwise reduce proportionately
LC - 1/2
ILC - 1/2 of share of 1 LC as may be
accommodated, otherwise reduce proportionately
Whatever
remains
Whatever
remains
Whatever
remains
Spouse -1 /4 of estate
Parents
&
Ascendants
Legitimate Children
of
1/2
1/2
Parents/Ascendants
of
Legitimate Children & Illegitimate
Children
Legitimate Parents/Ascendants
Parents/Ascendants
of
Legitimate Children & Surviving
Spouse .
Legitimate Parents/Ascendant - 1/2
Parents/Ascendants
of
Legitimate Children, Illegitimate
Children & Surviving Spouse,
Parents/Ascendants -1 /2
IL C -1 /4
Spouse - 1/8
Surviving Spouse Only
Surviving Spouse & Illegitimate
Children
Surviving Spouse & Parents Of
Illegitimate Children
Illegitimate Children
1/2
1/4
1/4
Spouse - 1 / 4
. ..
1/4
.
1/8
General Rule or If in artiuculo mortis, but cohabited for
more than 5 years - 1/2
1/2
1/3 if in articulo mortis
2/3
IL C - 1 / 3
1/3
Spouse
-
1/3
Spouse - 1/4
Parents - 1/4
Illegitimate Children Only
Parents Of Illegitimate Children
-
-
1/2
1/2
1/2
1/2
i________________________________________________________________
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Q: What is Reserva Troncal?
3.
A: It is the reservation by virtue of which an
ascendant who inherits from his descendant any
property which the latter may have acquired by
gratuitous title from another ascendant or a
brother or sister, is obliged to reserve the property
for the benefit of relative within the third degree
and who belong from the same line from which
the property came from. (Art. 891)
4.
5.
6.
Renunciation by all the reservatarios,
provided that no -other reservatario is born
subsequently;
Total fortuitous loss of the reserved property;
Confusion or merger of rights, as when the
reservatarios acquire the reservista’s right by
contract inter vivos; (Balane, supra)
Prescription or adverse possession. (Balane,
supra)
6. DISINHERITANCE
Q: What are the
Troncal? (GWOT)
requisites
of
Reserva
Q: What are the requisites
disinheritance? (WET2-LUP)
A:
1. The property was acquired by a person
(Prepositus) from an ascendant or from a
brother or sister (Origin) by Gratuitous title
(either by donation, or by any kind of
succession)
2. The said descendant died Without legitimate
issue;
3! The property is inherited by another
descendant (Reservista) by Operation of law
(either by compulsory succession, or by
intestate succession);
4. There are relatives within the Third degree
(Reservatarios) belonging to the line from
which the said property came. (Chua v. Court
1.
2.
for
valid
Effected only through a valid Will (Art. 916) Its
counterpart in intestate succession is
unworthiness.
For a cause Expressly stated in the will (Art.
916, 918)
3.
4.
5.
6.
7.
Cause must be certain and True (Art. 918)
Total;
It must be for a cause expressly stated by
Law (Art. 916, in relation to Art. 919-921)
Unconditional;
If the truth of the cause is denied, it must be
Proved by the proponent. (Art. 917)
Q: What are the effects of disinheritance?
o f First Instance, G.R. No. L-29901, 1977)
1.
Total exclusion of the compulsory heir from
the inheritance, which includes his legitime,
his share in the intestate portion, and any
testamentary disposition made in a prior will.
2.
The children or descendants of the person
disinherited shall take his or her place and
shall preserve the rights of compulsory heirs
with respect to the legitime. (Art. 923)
The disinherited parents shall not have the
usufruct or administration of the property
which constitutes the legitime. (Art. 923)
Q: What is the order of preference among
reservatarios?
A: Upon the death of the ascendant reservista,
the reservable property should pass, not to all the
reservatarios as a class, but only to those nearest
in degree to the descendant (prepositus),
excluding those reservatarios of more remote
degree. The reserva troncal merely determines
the group of relatives to whom the property
should be returned; but within that group the
individual right to the property should be decided
by the applicable rules of ordinary intestate
succession, since Art. 891 does not specifiy.
(Padura v Baldovino, G.R. No. 11960, 1958)
Q: How is Reserva Troncal extinguished?
A: Reserva Troncal is extinguished through:
1. The death of the reservista
2. The death of all the reservatarios;
(Balane, supra)
3.
Q: What is ineffective disinheritance?
A: Disinheritance without specification of the
cause, or for a cause the truth of which, if
contradicted, is not proved, or which is not one of
those set forth in this Code, shall annul the
institution of heirs insofar as it may prejudice the
person disinherited; but the devises and legacies
and other testamentary dispositions shall be valid
to such extent as will not impair the legitime. (Art.
918)
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SUMMARY OF GROUNDS FOR DISINHERITANCE (ARTS. 919, 920 & 921)
GROUND
..............
.................
PARENT/
ASCENDANT
CHILD/
DESCENDANT
r
Attempt against the life of the testator,
spouse, ascendant, descendant
Accusation of a crime with penalty of
six years
Adultery and Concubinage with the
spouse of testator
Induce testator to make/change the
will.
Support unjustifiably refused
V
V
V
V
V
V
V
N/A
V
V
N/A
N/A
V
N/A
N/A
~
N/A
V
N/A
"i
N/A
Attempt by one Parent against the Life
of the Other
N/A
Giving Cause for Legal Separation
N/A
Q: Distinguish ineffective disinheritance from
pretention.________ ________ ______
INEFFECTIVE
PRETERITION
DISINHERITANCE
Person disinherited
The person omitted
may be any
must be a compulsory
compulsory heir
heir in the direct line
Partial annulment
of institution of
heirs
V
N/A
T
1
V
i
Express
Intentional
1
Unjustifiable refusal to
support the children or
the other spouse
N/A
V
Maltreatment of the testator by word
or deed
Leading a dishonorable or disgraceful
life
Conviction of a crime which carries
with the penalty of civil interdiction
Abandonment
of
Children,
Inducement to live a corrupt or moral
life, or attempted against their virtue
Loss of parental authority
SPOUSE
v
N/A
It is sufficient that the
spouse has given
grounds for loss of
parental authority
N/A
V
7. LEGACIES AND DEVISES
Q: Distinguish legacy from a devise.
A: A legacy is a testamentary disposition of
personal property by particular title, while a
devise is a testamentary disposition of real
property by particular title. (Balane, supra) '
Implied
Either intentional or
unintentional
Effect: Total annulment
of institution of heirs
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C. LEGAL OR INTESTATE SUCCESSION
1. GENERAL PROVISIONS
Q: What are the instances when legal or
intestate succession operates?
1.
2.
If a person dies without a will, or with a void
will, or one which has subsequently lost its
validity; (Art. 960)
When the will does not institute an heir to, or
dispose of all the property belonging to the
testator. In such case, legal succession shall
take place only with respect to the property of
which the testator has not disposed; (Art.
960)
3.
4.
5.
6.
7.
If the suspensive condition attached to the
institution of heir does not happen or is not
fulfilled, or if the heir dies before the testator,
or repudiates the inheritance, there being no
substitution, and no right of accretion takes
place; (Art. 960)
When the heir instituted is incapable of
succeeding, except in cases provided in the
Civil Code; (Art. 960)
Happening of a resolutory condition;
Expiration of a resolutory term;
Preterition (Balane, supra)
Q: When does renunciation set in? What are
its effects?
A: if the inheritance should be repudiated by the
nearest relative, should there be one only, or by
all the nearest relatives called by law to succeed,
should there be several, those of the following
degree shall inherit in their own right and cannot
represent the person or persons repudiating the
inheritance. (Art. 969)
Q: What is Representation?
A: It is a right created by fiction of law, by virtue of
which the representative is raised to the place
and the degree of the person represented, and
acquires the rights which the latter would have if
he were living or if he could have inherited. (Art.
Representation only applies in compulsory
succession in the direct descending line and in
intestate succession in the direct descending line
(Art. 972) and in one instance in the collateral line
in the case of nephews and nieces representing
brothers and sisters of the deceased (Art. 975)
There is no representation in testamentary
succession and in any type of succession in the
direct ascending line. (Paras, supra)
Q: When does representation set in? (PID)
1. Predecease;
2. Incapacity or unworthiness;
3. Disinheritance (Paras, supra)
Representation does not apply in renunciation.
(Art. 977)
2. ORDER OF INTESTATE SUCCESSION
Q: What is the Iron Curtain Rule / Barrier
Principle / Principle of Absolute Separation?
A: An illegitimate child has no right to inherit ab
intestato from the legitimate children and relatives
of his father or mother; nor shall such children or
relatives inherit in the same manner from the
illegitimate child. (Art. 992)
The right of representation is not available to
illegitimate descendants of legitimate children in
the inheritance of a legitimate grandparent. (Diaz
v. Intermediate Appellate Court, G.R. No. L66574, 1990)
PERSON TO BE REPRESENTED
ILLEGITIMATE
LEGITIMATE CHILD
CHILD
His or her
descendant whether
legitimate or
illegitimate, may
represent him.
970; Tumbokon v. Legaspi, G.R. No. 153736,
2010) In order that representation may take
place, it is necessary that the representative
himself be capable of succeeding the decedent.
(Art. 973)
Page 53 of 120
Only his or her
legitimate descendants
can represent him, his
or her illegitimate
descendants cannot
represent him. (Vda.
De Crisologo v. Cam
G.R. No. L-44051,
1985)
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COMBINATIONS OF LEGITIMES AND INTESTATE SUCCESSION
(Arts. 888-889, 892-901, 903, 983, 986-987, 991, 993-1001, 1004-1008, 1011)
HEIRS
Legitimate
Children
Alone
Legitimate
Children
and
Illegitimate
Children
LEGITIME
INTESTACY
TOTAL
1/2 divided equally
1/2 divided
equally
Residue left
divide among
them, observing
the 2:1 ratio
Residue left shall
be divided among
them equally
Whole estate divided
equally
Whole estate divided
among them, observing the
2:1 ratio
1/4 goes to the
spouse
LC - 1 / 2
LC - 1/2 divided equally
iLC - 1/2 of share of 1
LC
Legitimate
Children
and Surviving Spouse
LC - 1/2 divided equally
One Legitimate Child
and Surviving Spouse
LC - 1 / 2
Legitimate
Children,
Surviving
Spouse,
Illegitimate Children
Legitimate
Alone
Legitimate
Ascendants
than Parents
Parents
Spouse - Share of 1 LC
Spouse- 1 / 4
LC - 1 / 2
Spouse - share of 1 LC
ILC - 1/2 of share of 1
LC
LP - 1/2
1/2
Spouse- 1 / 2
Residue left shall
be divided among
them, observing
the 2:1 ratio
Whole estate divided
among them, observing the
2:1 ratio
112 goes to the
parents
1/2
Whole estate divided
equally
Whole estate divided
among them, observe rules
in proximity in degree, and
division by line
LP — 1/2
Other
Legitimate
Parents
and
Illegitimate
Children
Legitimate
Parents
and Surviving Spouse
Legitimate
Parents,
Surviving Spouse, and
Illegitimate Children
LP - 1/2
1/4 goes to the
illegitimate
children
ILC - 1/4
LP - 1/2
Spouse - 1 / 4
LP - 1/2
1/4 goes to the
spouse
Spouse - 1 / 8
Illegitimate
Alone
Children
ILC —1/2
illegitimate
Children
and Surviving Spouse
IL C - 1 / 3
Spouse — 1/3
IL C - 1 / 4
LP - 1/2
Spouse - 1 / 2
1/8 goes to the
spouse
IL C - 1 / 4
Whole estate divided
equally
LP - 1/2
IL C - 1 / 4
Spouse- 1 / 4
1/2 goes to
illegitimate
children
1/6 goes to
illegitimate
children
1/6 goes to
spouse
Whole estate divided
equally
ILC —1/2
Spouse - 1/2
(continuation)
HEIRS
j
LEGITIME________ INTESTACY
Page 54 of 120
_____ ________ TOTAL__
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Surviving Spouse
Alone
Surviving Spouse
and Parents of
Illegitimate
Children
Surviving Spouse
and
Legitimate
Brothers
and
Sisters, Nephews
and Nieces
Surviving Spouse
and
Illegitimate
Brothers
and
Sisters, Nephews
and Nieces
Parents
of
illegitimate
Children Alone
Parents
of
illegitimate
Children
and
Children of Any
Kind
1/2
1/3 if marriage is
in articulo mortis
Spouse - 1 / 4
Parents of
Illegitimate
Children- 1 / 4
Spouse - 1 / 2
Spouse - 1/2
1/2
Any kind of
children - 1 / 2 ,
observe 2:1
ratio
Residue goes to the
spouse
Whole estate goes to the spouse
1 /4 goes to the
spouse
1/4 goes to the
parents of illegitimate
children
1/2 goes to the
legitimate brothers
and sisters, nephews
and nieces
Spouse 1/2
1/2 goes to the
illegitimate brothers
and sisters, nephews
and nieces
1/2 goes to the
parents of illegitimate
children
1/2 goes to the any
kind of children,
observe 2:1 ratio
Parents of Illegitimate Children - Va
Spouse - 1 / 2
Legitimate brothers and sisters,
nephews and nieces - 1/2
Spouse - 1 / 2
Legitimate brothers and sisters,
nephews and nieces - 1/2
Whole estate divided equally
Whole estate goes to the children,
observing 2:1 ratio, if applicable
Parents of illegitimate children are
excluded by all kinds of children
(continuation)
HEIRS
Legitimate
Brothers
and Sisters Alone
Legitimate
Brothers
and Sisters, Nephews
and Nieces
Nephews and Nieces
with Uncles and Aunts
LEGITIME
N/A
N/A
N/A
INTESTACY
TOTAL
Whole estate divided among them, observing the 2:1 ratio for
full-blood and half-blood siblings
Whole estate divided among them, observing the 2:1 ratio for
full-blood and half-blood siblings
Apply rules on representation when proper
Whole estate divided among nephews and nieces, observing
the 2:1 ratio for full-blood and half-blood siblings
Page 55 of 120
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Uncles and aunts of the decedent are excluded. (Bacayo v.
Bormmeo)
Illegitimate
Brothers
and Sisters Alone
Illegitimate
Brothers
and Sisters, Nephews
and Nieces
Nephews and Nieces
Alone
Other Collaterals up to
the Fifth Degree
State
N/A
Whole estate divided among them, observing the 2:1 ratio for
full-blood and half-blood siblings
Whole estate divided among them, observing the 2:1 ratio for
full-blood and half-blood siblings
N/A
N/A
Whole estate divided among them, observing the 2:1 ratio for
full-blood and half-blood siblings
Whole estate divided equally, observe rules in proximity in
degree
N/A
(Resident Decedent)
(Non-Resident Decedent)
Personal property- Municipality
of the last residence
Real property - Municipality
where it is situated
Personal property and
real property -Municipality
where it is situated
N/A
Property is to be used for the benefit of public education and
charitable institutions in the respective municipalities or cities,
or alternatively, at the instance of an interested party, or motu
proprio, court may order creation of a permanent trust for the
benefit of the institutions concerned.
D. PROVISIONS COMMON TO TESTATE AND
INTESTATE SUCCESSION
1.
RIGHT OF ACCRETION
Q: What is Accretion?
A: Accretion is the right by virtue of which, when
two or more persons are called to the same
inheritance, devise or legacy, the part assigned to
the one who renounces or cannot receive his
share, or who died before the testator, is added
or incorporated to that of his co-heirs, co­
devisees, or co-legatees. (Art. 1015)
2. CAPACITY TO SUCCEED BY WILL OR BY
INTESTACY
A child already conceived at the time of the death
of the decedent is capable of succeeding
provided it be born later under the conditions
prescribed in Article 41 of the Civil Code. (Art.
1025, par 2)
The State, provinces, municipal corporations,
private
corporations,
organizations,
or
associations for religious, scientific, cultural,
educational, or charitable purposes, and all other
corporations or entities may succeed under a will,
unless there is a provision to the contrary in their
charter or the laws of their creation, and always
subject to the same. (Art. 1026)
3. ACCEPTANCE AND REPUDIATION OF
INHERITANCE
Q: Who may inherit?
A: Both a natural person and a juridical person
may inherit (Art 1026) In order to be capacitated
to inherit, the heir, devisee or legatee must be
living at the moment the succession opens,
except in case of representation, when it is
pi wpoi .
/ A
[/ -M L .
-------I
f J C ll
I )
n
ri----lilt?
i-----:lieu,
iegatee/aevisee must not be incapacitated or
disqualified by law to succeed. (Art. 1024, par. 1)
Page
Q: When should acceptance or repudiation be
made?
A: Within 30 days after the court has issued an
order for the distribution of the estate the heir,
devisee, or legatee shall signify to the court
having jurisdiction whether they accept or
repudiate the inheritance. If they do not do so
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COLLATION
within that time, they are deemed to have
accepted the inheritance. (Art. 1057)
Q: What is collation?
Q: How should repudiation be done? (Art.
1051)
A: The repudiation of the inheritance shall be
made in:
1. A public document signed before a notary
public, or
2. Authentic instrument - equivalent to an
indubitable writing or a writing whose
authenticity is admitted or proved, or
3. By a petition presented to the court having
jurisdiction over the testamentary or intestate
proceedings.
A: Collation is the act of bringing back to the
estate properties acquired inter vivos and
gratuitously from decedent (if acquired by will,
e.g. legacies and devisees, they are not
collatable, but may be reduced for being
inofficious).
Every compulsory heir, who succeeds with other
compulsory heirs, must bring into the mass of the
estate any property or right which he may have
received from the decedent, during the lifetime of
the latter, by way of donation, or any other
gratuitous title, in order that it may be computed
in the determination of the legitime of each heir,
and in the account of the partition. (Art. 1061)
However, donations inter vivos to compulsory
heirs shall not be imputed to the legitime:
1. If the donor expressly provided; (Art. 1062)
2. The donee repudiated the inheritance; (Id.)
3. The value of donation exceeds the donee’s
legitime
NOTE: The donation will be imputed to the
legitime to the extent of the legitime’s value, and
the excess to the free portion. (Balane, supra at
p. 577)
What to properties should be collated? A:
The properties to be collated are: (GED)
1. Property or right received by Gratuitous
title during the testator’s lifetime. (Art.
1061)
2.
Expenses incurred by the parents in
giving their children a professional,
vocational or other career, only if the
parents provide that the expenses be
brought to collation or if the expenses
impair the legitime. If these expenses are
collated, the sum which the child would
have spent if he had lived in the house
and company of his parents shall be
deducted from the value of the expenses.
3.
Any sums paid by a parent in satisfaction
of the Debts of his children, election
expenses, fines, and similar expenses.
(Art. 1068)
(Art. 1069)
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4. PARTITION AND DISTRIBUTION OF THE
ESTATE
\
V. OBLIGATIONS AND CONTRACTS
A. OBLIGATIONS
Q: What is partition? (Art. 1079, 1082)
A: It is the separation, division and assignment of
a thing held in common among those to whom it
may belong. It includes every act which is
intended to put an end to indivision among co­
heirs, and legatees or devisees, although it
should purport to be a sale, exchange,
compromise, or any other transaction. It is not
subject to any form.
Q: Who may effect partition?
A:
1.
2.
3.
4.
Decedent himself during his lifetime by an act
inter vivos or by will (Art. 1080)
Heir themselves (Art. 1083)
Competent court (Art. 1083)
Third person designated by the decedent
(Art. 1081)
Q: May partition be rescinded?
A: A partition, judicial or extra-judicial, may be
rescinded on account of lesion, when any one of
the co-heirs received thingswhose value is less,
by at least one-fourth, than the share to which he
is entitled, considering the value of the things at
the time they were adjudicated. (Art. 1098)
However, the omission of one or more objects or
securities of the inheritance shall not cause the
rescission of the partition on the ground of lesion,
but the partition shall be completed by the
distribution of the objects or securities which have
been omitted. (Art. 1103)
1.GENERAL PROVISIONS
SOURCES OF OBLIGATIONS
Q: A entered into a Trade Contract with B for
the execution of architectural work of one of
its condominium projects, wherein A had the
right to withhold 5% of the contract price as
retention money. The contract also provided
that B is prohibited from assigning or
transferring any of its rights, obligations, or
liabilities under the said contract without the
written consent of A. When B incurred delays
and failed to comply with the terms of the
contract, A took over and did some corrective
work on the numerous defects caused by B,
the amount of which was deducted from the
retention money. B informed A that the former
had already assigned its receivables to Y by
virtue of a notarized Deed of Assignment,
which amount was to be taken from the
retention money with A. Despite Y’s repeated
requests, A refused to deliver the amount and
informed Y that nothing was left of its
retention money with B from which Y ’s claims
may be satisfied. Is A bound by the Deed of
Assignment between B and Y?
A: (PERLAS-BERNABE) No. Obligations arising
from contracts have the force of law between the
contracting parties and should be complied with
in good faith. The contract explicitly provides that
B, as the Trade Contractor, cannot assign or
transfer any of its rights, obligations, or liabilities
under the Trade Contract without the written
consent of A. Y, as mere assignee of B’s rights
under the Trade Contract, is equally bound by the
prohibition and hence, cannot validly enforce the
same without A’s consent. By virtue of the Deed
of Assignment, the assignee is deemed
subrogated to the rights and obligations of the
assignor and is bound by exactly the same
conditions as those which bound the assignor.
(Fort Bonifacio Development Corp v. Fong, G.R.
No. 209370, March 25, 2015)
Page 58 of 120
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2. NATURE AND EFFECTS OF OBLIGATIONS
Q: What are the four (4) instances when
demand is not necessary to constitute the
debtor in default?
A: (ELMU)
i. when there is an Express stipulation to
that effect;
ii. where the Law so provides;
iii. when the period is the controlling Motive
or the principal inducement for the
creation of the obligation; and
iv. where the demand would be Useless.
In the first two, it is not sufficient that the law or
obligation fixes a date for performance; it must
further state expressly that after the period
lapses, default will commence. (CIVIL CODE, art.
1169)
Q: Once the obligor incurs in delay, is he
liable for payment of interest as an indemnity
for damages?
A: Yes. If the obligation consists in the payment
of a sum of money, and the debtor incurs in delay,
the indemnity for damages, there being no
stipulation to the contrary, shall be the payment
of the interest agreed upon, and in the absence
of stipulation, the legal interest, which is six per
cent per annum. (Rivera v. Spouses Chua, G.R.
A: (PERLAS-BERNABE) YES. Fraud comprises
"anything calculated to deceive, including all acts,
omissions, and concealment involving a breach
of legal duty or equitable duty, trust, or confidence
justly reposed, resulting in damage to another, or
by which an undue and unconscientious
advantage is taken of another." C ’s and A’s
deliberate simulation of the sale intended to
obtain loan proceeds from and to prejudice the
bank clearly constitutes fraudulent conduct.
(Philippine Banking Corp. v. Dy,
183774, November 14, 2012)
G.R. No.
Q: Victoria’s Milling warehouse was razed by
fire. It had a long-term supply contract for 10
years to deliver sugar to X, which provides
that the former will deliver to the latter sugar
every so often. The fire was considered a
fortuitous event. For a period of 1 year during
the 10-year period, Victoria’s was not able to
make deliveries. Can Victoria’s be compelled
to deliver sugar on the 11th year considering
its failure to comply with its obligation for 1
year?
A: No. Within that period, there was a fortuitous
event and therefore Victoria’s cannot be
compelled to deliver nor will it resuit to an
extension of the period set for the contract.
(Victoria’s Planters Association v. Victoria’s
Milling Co., Inc., GR No. L-6648, 1955)
No. 184458, 2015)
Q: A was the registered owner of a lot in Cebu.
A and her husband entered into an agreement
with B for the sale of the said lot. B learned
that the lot had been sold to C, and that said
lot was mortgaged to a bank. B filed a
complaint for annulment of certificate of title
with damages against A, C and the bank. A
claimed that there was no perfected sale of
the lot to B, and that C’s deeds of absolute
sale were simulated and intended to enable C
to use the said lot as collateral for a loan with
the bank. However, after receiving the loan
proceeds, C reneged on their agreement,
leading to A to file a claim against C for
damages and the remaining payment for the
lot. C denied knowledge of the transaction
between A and B, claiming to have validly paid
for and acquired the lot from A. The bank
asserted good faith, allegedly having no
knowledge of C’s defective title. Is C’s and A ’s
simulated sale fraudulent?
Q: ABC, Corp. is engaged in the business of
manufacturing steel, and through its officers
obtained several loans from W Bank. These
loan transactions were covered by a
promissory note pegged at 15.25% per annum
(p.a.), with penalty charge of 3% per month in
case of default and separate letters of
credit/trust receipts with an interest rate of
14% p.a. and 1% penalty charge. By way of
security, the ABC, Corp. executed several
Continuing Guaranty/Comprehensive Surety
Agreements in favor of W Bank. ABC, Corp.
failed to settle its obligations, hence, W Bank
sent them demand letters seeking payment of
the total amount of Php 51,064,093.62, but to
no avail. Thus, W Bank filed a complaint for
collection of sum of money against ABC,
Corp. ABC, Corp. offered their equipment for
sale in order to apply the proceeds of the sale
to their outstanding obligations. However,
since there were no takers, the equipment
was reduced into ferro scrap or scrap metal
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over the years. XYZ, Corp. expressed interest
in buying the scrap metal. A MOA was drawn
between abc, Corp. under which XYZ, Corp
obligated itself to purchase the scrap metal
for a total consideration of #34,000,000.00.
Unfortunately, XYZ, Corp. reneged on all its
obligations under the MOA. ABC, Corp.
asservated that their failure to pay their
outstanding loan obligations to W Bank must
be considered as force majeure because
XYZ’s default was beyond their control.
Should XYZ’s default be considered force
majeure?
A: (PERLAS-BERNABE) No. Fortuitous events
by definition are extraordinary events not
foreseeable or avoidable. It is therefore, not
enough that the event should not have been
foreseen or anticipated, as is commonly believed
but it must be one impossible to foresee or to
avoid. The mere difficulty to foresee the
happening is not impossibility to foresee the
same.
To constitute a fortuitous event, the following
elements must concur:
(a) the cause of the unforeseen and unexpected
occurrence or of the failure of the debtor to
comply with obligations must be independent of
human will;
(b) it must be impossible to foresee the event that
constitutes the caso fortuito or, if it can be
foreseen, it must be impossible to avoid;
(c) the occurrence must be such as to render it
impossible for the debtor to fulfill obligations in a
normal manner; and
(d) the obligor must be free from any participation
in the aggravation of the injury or loss. (Metro
Comcast Steel Corp v. Allied Bank Corp, G.R. No.
177921, December 4, 2013)
Q: X entered into a Contract to Sell with Y,
which was Subsequently “upgraded” to a
Conditional Deed of Sale, which stipulated
that Y shall pay the balance of the purchase
price when he has successfully secured a
right of way. X requested an advance of
P5,000,000.00 on the purchase price, but Y
refused since the amount was substantial and
not yet due based on their agreement. X
rescinded the contract alleging that the
Conditional Deed of Sale was void because it
violates the mutuality of contracts. Does the
Conditional Deed of Sale violate the principle
of mutuality of contracts?
A: No. The Court distinguished between a
condition imposed on the perfection of a contract
and a condition imposed merely on the
performance of an obligation. While failure to
comply with the first condition results in the failure
of a contract, failure to comply with the second
merely gives the other party the option to either
refuse to proceed with the sale or to waive the
condition. In the present case, the Conditional
Deed of Sale stipulated that Y shall pay the
balance of the purchase price when he has
successfully secured a road right of way. This
stipulation is not a condition on the perfection of
the contract nor on the validity of the entire
contract or its compliance. It is a condition
imposed only on Y ’s obligation to pay the
remainder of the purchase price. The condition is
not purely potestative as it is also dependent on
the will of third persons who own the adjacent
land and from whom the right of way shall be
negotiated. (Rolando T. Catungal, Jose T.
Catungal, Jr., Carolyn T. Catungal and Erlinda
Catungal-Wesselv. Angel S. Rodriguez, G.R. No.
146839, March 23, 2011)
3. KINDS OF OBLIGATIONS
I. PURE AND CONDITIONAL
0: A applied for a position with Company B.
After passing the interview and online
examination, he was offered a job by
Company B which he accepted on June 8,
2011. In the letter of confirmation of offer, the
terms and conditions of his employment
required background, bankruptcy checks,
reference checks and visas which if not
satisfactory to Company B, Company B may
choose not to employ him or to terminate his
employment, without any liability to pay
compensation. He failed his background
checks and on the last day he was to report to
Company B, or on July 11, 2011, he was
handed a letter of retraction of offer because
of material inconsistencies in the information
provided. Was there a perfected contract of
employment and was there an employeremployee relationship?
A: (PERLAS-BERNABE) Yes there was a
perfected contract of employment but there was
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no employer-employee relationship established.
There was a perfected contract when A signed
Company B’s employment offer and agreed to the
terms and conditions which included the
background and other checks. However, there
was a suspensive condition to his employment,
that Company B would be satisfied with his
background, bankruptcy and other checks all of
which partook of a suspensive condition. He
failed these checks thus the suspensive condition
of satisfactorily passing these checks was not
met, consequently the obligation to employ A did
not come into effect. Because A failed the
suspensive condition of passing the background
checks, no employer-employee relationship was
established. (Sagun v. ANZ Global Services and
Operatioms, G.R. No. 220399, August 22,2016)
Q: What are reciprocal obligations?
A: Reciprocal obligations are those that arise
from the same cause, and in which each party is
a debtor and a creditor of the other at the same
time, such that the obligations of one are
dependent upon the obligations of the other. They
are to be performed simultaneously, so that the
performance by one is conditioned upon the
simultaneous
fulfillment
by
the
other.
Furthermore, neither party incurs in delay if the
other does not comply or is not ready to comply
in a proper manner with, what is incumbent upon
him. From the moment one of the parties fulfills
his obligation, delay by the other begins.
(Megaworld Properties and Holdings, Inc. vs.
Majestic Finance and Investment Co., Inc., G.R.
No. 169694, 2015)
Q: X and ABC Realty entered into a contract
to sell covering one residential condominium
unit. X paid the full purchase price and made
a down payment for the parking lot.
Notwithstanding this, ABC Realty failed to
complete and deliver the subject unit on time.
X filed a complaint for rescission of contract
With damages before the HLURB. Will the
complaint prosper?
A: Yes. Under Art. 1191, the right of rescission of
a party to an obligation is predicated on a breach
of faith by the other party who violates the
reciprocity
between
them.
The
breach
contemplated is the obligor’s failure to comply
with an existing obligation.
The delay in the completion of the project as well
as the delay in delivery of the unit are breaches
of statutory and contractual obligations which
entitle respondent to rescind the contract,
demand a refund and payment of damages.
(Swire Realty Development Corporation v. Yu,
G.R. No. 207133, 2015)
Q: In a Contract Manufacturing Agreement
(CMA)
between
2
groups,
their
pharmaceutical
products
should
be
exclusively manufactured by Company A and
the products will be sold, conveyed, and
transferred to Company B. Subsequently,
Company C entered into a Deed of
Sale/Assignment with Company B, wherein
the former agreed to transfer and assign all its
rights over 28 pharmaceutical products in
favor of the latter, provided that the products
will be manufactured by Company A, based
on the existing CMA. A month prior to the
expiration of the CMA, Company A proposed
a new manufacturing agreement which
Company B found unacceptable. Company B
entered into a Contract to Manufacture
Products with Company D, and manufactured
some of the products covered by the Deed of
Sale/Assignment. A Complaint for Breach of
Contract, Damages, and Injunction was filed
against Company B. Company B maintained
that they did not violate the stipulation in the
Deed of Sale/Assignment regarding the
continuous manufacture of the subject
pharmaceutical products by Company A
because: (a) said stipulation did not confer to
Company
A
the
exclusive
right
to
manufacture the said products; (b) Company
B’s compliance with the stipulation became
impossible or difficult as Company A itself
refused to enter into a new manufacturing
agreement. Is Company B liable for breach of
its contractual obligations?
A: (PERLAS-BERNABE) Yes. The Agreement
and the Deed of Sale/Assignment explicitly
provided that Company A had the right to
exclusively
manufacture
the
subject
28
pharmaceutical products; thus, the act of
Company B in contracting with Company D to
manufacture some of the said products
constituted a clear violation of their contractual
obligations for which they are liable for damages.
(S V
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Laboratories, Inc., G.R. No. 200408. & 200416,
[November 12, 2014]).
Q: Company A is the owner of 81 mining sites.
It entered into an Operating Agreement (OA)
with Company B, granting the latter "full,
exclusive and irrevocable possession, use,
occupancy, and control over the mining
claims” for a period of 25 years. Later,
Company A extra-judicially rescinded the OA,
by invoking its provisions, upon Company B’s
failure to pay the stipulated royalties.
Company B contested Company A’s extra­
judicial rescission of the OA averring therein
that its obligation to pay royalties arises only
when the mining claims are placed in
commercial production which condition has
not yet taken place. Company A did not
respond and instead, it entered into a
Memorandum of Agreement with Company C,
whereby the latter was granted the same
rights as Company B to "enter, possess,
occupy and control the mining claims" for a
period of 25 years. Is the extrajudicial
rescission of the OA by Company A was
valid?
A: (PERLAS-BERNABE) Yes. The right of
rescission under Article 1191 is predicated on a
breach of faith that violates the reciprocity
between parties to the contract. As a general rule,
the power to rescind an ‘ obligation must be
invoked judicially and cannot be exercised solely
on a party’s own judgment that the other has
committed a breach of the obligation. This is so
because rescission of a contract will not be
permitted for a slight or casual breach, but only
for such substantial and fundamental violations
as would defeat the very object of the parties in
making the agreement. As a well-established
exception, however, an injured party need not
resort to court action in order to rescind a contract
when the contract itself provides that it may be
revoked or cancelled upon violation of its terms
and conditions. Given this, Company A’s
unilateral rescission of the OA due to Company’s
B’s non-payment of royalties is valid based on the
parties’ express stipulation in the OA that said
agreement may be cancelled on such ground.
(Golden Valley Exploration v. Pinkian Mining
Company, G.R. No. 190080, June.11, 2014).
Operating Agreement (OA) with Company B,
granting the latter “full, exclusive, and
irrevocable possession, use, occupancy, and
control over the mining claims...” for a period
of 25 years. In a Letter addressed to B, A
extra-judicially rescinded the OA due to B’s
non-payment of royalties considering their
express stipulation in the OA that said
agreement may be cancelled on such ground.
B contested A ’s extra-judicial rescission of
the OA, averring that its obligation to pay
royalties to A arises only when the mining
claims are placed in commercial production
which condition‘has not yet taken place. A no
longer responded to B ’s letter. Instead, it
entered into a Memorandum of Agreement
with C Company, whereby the latter was
granted the right to “enter, possess, occupy,
and control the mining claims...” for a period
of 25 years. Was there a valid rescission of the
OA?
A: (PERLAS-BERNABE) Yes. In reciprocal
obligations, either party may rescind the contract
upon the other’s substantial breach of the
obligation/s he had assumed thereunder. The
basis therefor is Article 1191 of the Civil Code. As
a general rule, the power to rescind an obligation
must be invoked judicially and cannot be
exercised solely on a party's own judgment that
the other has committed a breach of the
obligation. This is so because rescission of a
contract will not be permitted for a slight or casual
breach, but only for such substantial and
fundamental violations as would defeat the very
object of the parties in making the agreement. As
a well-established exception, however, an injured
party need not resort to court action in order to
rescind a contract when the contract itself
provides that it may be revoked or cancelled upon
violation of its terms and conditions. By expressly
stipulating in the OA that GVEI's non-payment of
royalties would give PMC sufficient cause to
cancel or rescind the OA, the parties clearly had
considered such violation to be a substantial
breach of their agreement. Thus, in view of the
above-stated jurisprudence on the matter, PMC's
extra-judicial rescission of the OA based on the
said ground was valid.
(Golden
Valley
Exploration, Inc. v. Pinkian Mining Co., G.R.
190080, June 11, 2014)
Q: Company A owned 81 mining claims in
Nueva Vizcaya. It then entered into an
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Q: Are the following obligations valid, why,
and if they are valid, when is the obligation
demandable in each case?
1. If the debtor promises to pay as soon as
he has the means to pay;
2. If the debtor promises to pay when he
likes;
3. If the debtor promises to pay when he
becomes a lawyer;
4. If the debtor promises to pay if his son,
who is sick with cancer, does not die
within one year.
A:
1. The obligation is valid. It is an obligation subject
to an indefinite period because the debtor binds
himself to pay when his means permit him to do
so (CIVIL CODE, Art. 1180). When the creditor
knows that the debtor already has the means to
pay, he must file an action in court to fix the
period, and when the definite period as set by the
court arrives, the obligation to pay becomes
demandable (CIVIL CODE, art. 1197).
2. The obligation “to pay when he likes” is a
suspensive condition the fulfillment of which is
subject to the sole will of the debtor and,
therefore, the conditional obligation is void (CIVIL
CODE, art. 1182).
3. The obligation is valid. It is subject to a
suspensive condition, i.e. the future and uncertain
event of his becoming a lawyer. The performance
of this obligation does not depend solely on the
will of the debtor but also on other factors outside
the debtor’s control. (CIVIL CODE, art. 1181)
4. The obligation is valid. The death of the son of
cancer within one year is made a negative
suspensive condition to his making the payment.
The obligation is demandable if the son does not
die within one year (CIVIL CODE, art. 1185).
Q: What is period?
A: That fixed by the court taking into consideration
on what the court perceives as the intent of the
parties. The authority of the court to fix the period
rests on the finding that there was no period but
in its determination, there was an intention to fix
a period. (PARAS, 17th ed., p. 190)
Q: City X and ABC Company entered into a
Contract of Reclamation in which ABC agreed
to undertake, at its own expense, the
reclamation of foreshore and submerged
lands. The contract provided that “the project
is estimated to be completed in six (6) years”.
Does this provision establish an obligation on
the part of ABC to finish the project in 6 years
from contract execution? Is there delay on
ABC’s part?
A: No. The contract of reclamation reveals that
the 6-year period provided for project completion
was a mere estimate and cannot be considered a
period or a "day certain." As such, the lapse of 6
years from the perfection of the contract did not,
by itself, make the obligation to finish the
reclamation project demandable, such as to put
the obligor in a state of actionable delay for its
inability to finish. Thus, ABC cannot be deemed
to be in delay Obligations for whose fulfillment a
day certain has been fixed, shall be demandable
only when that day comes. Obligations with a
resolutory period take effect at once, but
terminate upon arrival of the day certain. A day
certain is understood to be that which must
necessarily come, although it may not be known
when. If the uncertainty consists in whether the
day will come or not, the obligation is conditional.
(Salonte v. COA, G.R. No. 207348, 2014).
III. ALTERNATIVE OBLIGATIONS
IV. JOINT AND SOLIDARY OBLIGATIONS
II. OBLIGATIONS WITH A PERIOD
Q: A stipulation on a contract states: “I will
pay you when my means permit me to do so.”
What kind of obligation is this?
A: This is an obligation with a period. (PARAS,
17th ed., p. 190)
Q: A, B, C, D, and E made themselves
solidarily indebted to X for the amount of
P50,000.00. When X demanded payment from
A, the latter refused to pay on the following
grounds:
1. B is only 16 years old.
2. C has already been condoned by X.
3. D is insolvent.
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4. E was given by X an extension of 6 months
without the consent of the other four eodebtors.
A:
1. A may avail the minority of B as a defense, but
only for B’s share of P10,000.00. A solidary
debtor may avail himself of any defense which
personally belongs to a solidary co-debtor, but
only as to the share of that co-debtor. (CIVIL
. CODE, art. 1222)
2. A may avail of the condonation by X of C’s
share of P10,000.00. A solidary debtor may, in
actions filed by the creditor, avail himself of all
defenses which are derived from the nature of the
obligation and of those which are personal to him
or pertain to his own share. With respect to "those
which personally belong to others, he may avail
himself thereof only as regards that part of the
debt for which the latter are responsible. (Id.)
3. A may not interpose the defense of insolvency
of D. Applying the principle of mutual guaranty
among solidary debtors, A guaranteed the
payment of D’s share and of ail the other co­
debtors. Hence, A cannot avail of the defense of
D’s insolvency. (Id.)
4. The extension of six (6) months given by X to
E may be availed of by A as a partial defense but
only for the share of E. There is no novation of the
obligation but only an act of liberality granted to E
alone. (Id.)
V.
DIVISIBLE
OBLIGATIONS
AND
INDIVISIBLE
VI. OBLIGATIONS WITH A PENAL CLAUSE
4. EXTINGUISHMENT OF OBLIGATIONS
I. PAYMENT OR PERFORMANCE
Q: When is there substantial compliance and
what are the effects of such?
A: Under Arts. 1234 and 1235, there is substantial
compliance when there is an attempt in good faith
to perform the obligation without willful or
intentional departure, where deviation is slight, or
where the omission/defect is technical or
unimportant or must not be so material that
intention of parties is not attained.
The effects of such substantial compliance in
good faith are that the obligor may recover as
though there has been strict and complete
fulfillment, less damages suffered by the obligee
(Art. 1234 NCC). Also, the right to rescind cannot
be used for slight breach. If the obligee, however,
accepts performance knowing its incompleteness
and irregularity, without expressing any protest or
objection, the obligation will be deemed fully
complied with (Art. 1235, NCC).
Q: Can payment be made to a person other
than the one to whom such obligation is
rightfully owned?
A: Yes. Art. 1242 of the Civil Code is an exception
to the general rule that a valid payment of an
obligation be only made to the person to whom
such
obligation
is
rightfully
owned.
It
contemplates a situation where a debtor pays a
“possessor of credit” {i.e. someone who is not the
real creditor but appears under the circumstances
to be the real creditor. In such scenario, the law
considers the payment to the “possessor of
credit” as valid even as against the real creditor
taking into account the good faith of the debtor
(NAPOCOR v. Ibrahim, G.R. No. 175863, 2015).
Q: Bank B filed a complaint against Company
A and its president. In 1996, Company A was
granted financial assistance by Bank C, which
was then succeeded by Bank B. A obtained a
loan and executed a promissory note as a
security. A's President also executed a Surety
agreement
covering
all
obligations
undertaken. Upon default, Bank C demanded
payment, but A did not pay. A did not deny the
genuineness and the due execution of the
documents and alleged that the documents
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by B were self-serving. During trial, A
presented Finance Officer X, who testified
that A was able to partially pay its loan, but
she does not know how much has been paid.
Given this, did A partially pay its obligation?
A: (PERLAS-BERNABE) NO. While A insisted
that they had partially paid, the fact of such
payment was not established. One who pleads
payment has the burden of proving it. When the
creditor is in possession of the document of
credit, proof of nonpayment is not needed for it is
presumed. Here, Bank B’s possession of the
Credit Agreement, the promissory note, and the
surety
agreement,
especially
with
their
genuineness and due executed deemed
admitted, cements its claim that the obligation of
A has not been extinguished. (Go Tong Electrical
Supply Co., Inc. v. BPI Family Savings Bank, Inc.,
G.R. No. 187487, June 29, 2015)
part of his obligation when the service has
become so difficult as to be manifestly
beyond the contemplation of the parties)
apply?
A: (FIFA)
1. The event or change in circumstances
could not have been Foreseen at the time
of the execution of the contract
2. It makes the performance of the contract
extremely difficult but not Impossible
3. The contract is for a Future prestation.
4. It must not be due to the Act of any of the
parties
The difficulty of performance contemplated
should be such that one party would be placed at
a disadvantage by the unforeseen event. Mere
inconvenience, or unexpected impediments, or
increased expenses did not suffice to relieve the
debtor from a bad bargain. ( Tagaytay Realty v.
II. LOSS OF THE THING DUE
Gacutan G.R. No. 160033, 2015)
Q: X Corp and Y Corp entered into a contract
of lease in 2000. X decided to pre-terminate
the lease due to the 1997 Asian currency
crisis, relying on Art. 1267 of the Civil Code as
justification (i.e., the service has become so
difficult as to be manifestly beyond the
contemplation of the parties, the obligor may
also be released therefrom, in whole or in
part). Is such contention correct?
III. CONDONATION OR REMISSION OF DEBT
A: No. The payment of lease rentals does not
involve a prestation “to do" which has been
rendered legally or physically impossible without
the fault of the obligor-lessor. Art. 1267 speaks of
a prestation involving service which has been
rendered so difficult by unforeseen subsequent
events as to be manifestly beyond the
contemplation of the parties.
In this case, the Asian currency crisis happened
in 1997 and sometime thereafter but X cannot be
permitted to blame its difficulties on such crisis
because it entered into the subject lease only
more than 3 years after it began. By then,. X
already had known what business risks it
assumed when it entered into the contract of
lease (Comglasco Corp. v: Santos Car Check
Center, G.R. No. 202989, 2015).
Q: How does Art. 1267 of the Civil Code (i.e.,
where an obligor is released in whole or in
IV. CONFUSION OR MERGER OF RIGHTS OF
CREDITOR AND DEBTOR
V. COMPENSATION
Q: X had outstanding loan obligations to both
Bank A and Bank B. X and Bank B entered into
a dacion en pago whereby X ceded in favor of
Bank B certain properties in consideration of:
(a) the full and complete satisfaction of X's
loan obligations to Bank B, and (b) direct
assumption by Bank B of X's obligations to
Bank A. Bank B then leased back the property
to X, which was obliged to pay rentals to be
shared by Bank A and B. Bank B also entered
into a separate agreement with Bank A
whereby
the
Bank
B confirmed
its
assumptions of X's obligation to Bank A, and
undertaking to remit up to 30% of rentals due
from X to Bank A, serving as payment of the
assumed obligations. Meanwhile, Bank A
conveyed its rights, including Bank B's
assumed obligations, to Bank C. Bank C then
claims that the rentals have not been remitted
despite demands, so Bank C filed a collection
case against Bank B. Bank B said that the
obligations it assumed were payable only out
of the rental payments made by X, who has yet
to pay the same, so Bank B's obligation to
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Bank C has not yet arisen. The court ruled in
favor of Bank C, and a writ of execution was
made, ordering Bank B to pay, but no order
for X. In executing the judgment, however, it
was found that Bank B’s obligation only
becomes demandable upon payment by X, so
Bank C should return all funds received by
Bank C from Bank B. Bank C then filed a
manifestation to apply legal compensation
between itself and Bank B to offset Bank B’s
debts with the funds that Bank C has to return
to Bank B. The trial court denied the
compensation since Bank B is not a debtor of
Bank C, and that there is nether a demandable
or liquidated debt from Bank B to Bank C.
Should there be legal compensation in this
case?
A: (PERLAS-BERNABE) No. Compensation is
defined as a mode of extinguishing obligations
whereby two persons in their capacity as
principals are mutual debtors and creditors of
each other with respect to equally liquidated and
demandable obligations to which no retention or
controversy has been timely commenced and
communicated by third parties. The requisites of
compensation are found in Art. 1279 of the Civil
Code, which, when all are present, takes effect by
operation of law. In this case, legal compensation
could not have taken place between these debts
for the apparent reason that requisites 3 and 4
under Article 1279 of the Civil Code are not
present. Since Bank B’s debts become due only
upon payment of Company Y, and that Bank B’s
obligations cannot be ascertained yet, it cannot
be said that it is already liquidated and
demandable. If the lease rentals are not yet paid,
there is nothing for Bank B to pay, and Bank B
should not be considered to be in default. (Union
Bank of the Phils. V. Development bank of the
Phils., G.R. No. 191555, January 20, 2014)
Q: A had an outstanding loan obligation to X
and Y. A and Y entered into a dacion en pago
wherein A ceded in favor of the Y certain
properties, including a processing plant in
Bulacan, in consideration of the full
satisfaction of A’s loan obligations and Y’s
direct assumption of A ’s obligations to X. Y
leased back the property to A, which was in
turn obliged to pay monthly rentals to X and
Y. Y also entered into a separate agreement
with X whereby Y: (a) confirmed its
assumption of A’s obligations to X; and (b)
undertook to remit up to 30% of any and all
rentals due from A to X (subject rentals) which
would serve as payment of the assumed
obligations,
to
be
paid
in
monthly
installments. Claiming that the subject rentals
have not been duly remitted, X filed a
collection case against Y. In opposition, Y
countered that the obligations it assumed
were payable only out of the rental payments
made by A. Thus, since A had yet to pay the
same, Y’s obligation to Bank X has not arisen.
Can Bank X claim for legal compensation?
A: (PERLAS-BERNABE) No. Art. 1279 provides:
In order that compensation may be proper, it is
necessary:
(1) That each one of the obligors be bound
principally, and that he be at the same time a
principal creditor of the other;
(2) That both debts consist in a sum of money, or
if the things due are consumable, they be of the
same kind, and also of the same quality if the
latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable; and
(5) That over neither of them there be any
retention or controversy, commenced by third
persons and communicated in due time to the
debtor.
Legal compensation could not have taken place
between the X’s obligation to return the funds it
previously received from Y and with Y ’s assumed
obligations since the latter is contingent on the
prior payment of A to Y, thus, both debts cannot
be said to be due and demandable. (Union Bank
of the Philippines v. Development Bank of the
Philippines. G.R. No. 191555, January 20, 2014)
VI. NOVATION
Q: ABC Corp. had an alternative obligation
with X to pay the value of raw materials or to
deliver to X the finished products of
equivalent value. ABC exercised the option to
pay the price. Subsequently, ABC and Y
entered into an agreement where X will be the
supplier of the raw materials and the delivery
of the finished products will be made to Y. X
demanded payment for the raw materials but
no payment was made. The trial court ruled
that the execution of the agreement
constituted a novation of the contract. Did the
court rule correctly?
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A: No. Novation extinguishes an obligation.
between two parties when there is a substitution
of objects or debtors or when there is subrogation
of the creditor. It occurs only when the new
contract declares so "in unequivocal terms" or
that "the old and the new obligations be on every
point incompatible with each other."
In this case, X was not privy to the memorandum
of agreement, thus, his conformity to the contract
need not be secured. If the agreement was
intended to novate the original agreement X must
have first agreed to the substitution of Y as his
new debtor. The agreement must also state in
clear and unequivocal terms that it has replaced
the original obligation of ABC company to X.
Since there was no novation, ABC’s obligation to
X remains valid and existing. ABC must pay X the
full amount of the materials (Arco Pulp and Paper
Co, v. Lim, G.R. No. 206806, 2014).
Q: What are the requisites of novation?
A: (PENC)
1. That there is a Previous valid obligation
2. Intent to Extinguish or to modify the old
obligation by a substantial difference
— 3. Capacity and Consent of all the parties
(except in ex promision where the old
debtor does not participate)
4. Validity of the New obligation (PARAS,
i r h ed., p,491)
Q: How can an obligation be novated?
A: (ROP)
1. Subrogating a third person in the Rights
of the creditor.
2. Changing their Object or principal
conditions
3. Substituting the Person of the debtor
(CIVIL CODE, art. 1291)
Q: Can novation be done without consent of
the debtor or creditor in case of substituting a
new debtor in the place of the original one?
A: It can only be done without the knowledge or
even against the will of the original debtor, but not
without the consent of the creditor. ( Interport
Resources Corporation v. Securities Specialist,
Inc. G.R. No. 154069, 2016)
Q: A purchase order was entered into by and
between A, Corp. and B, Corp. (supplier).
Subsequently, an invoice receipt was then
again signed by the parties’ representatives
which included a title reservation statement:
“title to sold property is reserved in B, Corp.
until full compliance of the terms and
conditions of above and payment of the
price.” This stipulation was not included in
the terms of the purchase order. Given the
subsequent inclusion of the title reservation
statement, was the original contract novated?
A: (PERLAS-BERNABE) No. Novation is never
presumed, the animus novandi must appear: (1)
by express agreement of the parties, or (2) by
their clear and unequivocal acts. The fact that the
Invoice Receipt was signed by a representative of
ACE Foods does not, by itself, prove animus
novandi since: (a) it was not shown that the agent
was authorized by ACE Foods to novate the
original agreement; (b) the signature only proves
that the Invoice Receipt was received by a
representative of ACE Foods to show the fact of
delivery. (ACE Foods Inc. v. Micro Pacfic
Technologies Co. Ltd.,
December 11, 2013).
G.R.
No.
200602,
Q: B filed a complaint against A, alleging that
A owed her P2.1 million. A purportedly issued
a check to guarantee the payment of the debt,
but it was dishonored upon presentment. B
alleged that A refused to pay despite repeated
demands. A, on the other hand, sought the
dismissal on the ground that it was her
deceased parents who owed B the money,
hence, B should have participated in the
estate proceedings. B countered that A
personally borrowed P1.4million while her
deceased parents only borrowed P700,000.
RTC and CA ruled in favor of B, on the ground
that novation took place and A was
substituted as the debtor as she assumed the
liability of her deceased parents and agreeing
to pay their debt in installments. Are the RTC
and CA correct in ruling that novation took
place?
A: (PERLAS-BERNABE) NO. While A admitted
that she agreed to settle her late parents' debt, as
evidenced by the check and several installment
payments she made, there was no allegation,
much less any proof to show, that the estates of
her deceased parents were released from
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liability. To constitute novation by substitution of
debtor, the former debtor must be expressly
released from the obligation and the third person
or new debtor must assume the former's place in
the contractual relations. The mere fact that the
creditor accepts payments from a third persons,
who merely assumed the obligation, will result
merely in the addition of debtors, not novation.
Novation is never presumed and the animus
novandi, totally or partially, must appear by
express agreement or by the parties' acts that are
too clear to be mistaken. (Odiamar v. Valencia,
G.R. No. 213582, June 28, 2016).
B. CONTRACTS
1. GENERAL PROVISIONS
Q: In a contract, when the offeror has not fixed
a period for the offeree to accept the offer, and
the offer is made to a person present, when
should the acceptance be made?
A: Offer inter praesentes— When the offeror has
not fixed a period for the offeree to accept the
offer, and the offer is made to a persbn present,
the acceptance must be made immediately
(Malbarosa vs. CA, G.R. No. 125761, 2003)
Q: What is a compromise agreement?
A: It is a contract whereby the parties, by making
reciprocal concessions, avoid a litigation or put an
end to one already commenced. If a party fails or
refuses to abide by a compromise agreement, the
other party may either enforce the compromise or
regard it as rescinded and insist upon his original
demand. (Asset Pool A (SPV-AMC), Inc. vs. Clark
Development Corporation,
2015)
2. ESSENTIAL REQUISITES
Q: What are the exceptions to the principle of
relativity in contracts?
A: (SCAT)
1. Stipulation pour atrui (CIVIL CODE, art.
1311(2))
2.
Contracts creating real rights (CIVIL
3.
4.
Accion pauiiana (CIVIL CODE, art. 1313)
Tortious interference (CIVIL CODE, art.
CODE, art. 1312)
G.R. No. 205915,
Q: What are the elements of a compromise
agreement?
A: (COC) The same as ordinary contracts:
Consent, Object and Cause. Parties to a
compromise are motivated by the hope of
gaining, balanced by the dangers of losing.
(Asset Pool A (SPV-AMC), Inc. vs. Clark
Development Corporation, G.R. No. 205915,
2015)
1314) (DE LEON, 5th ed., p. 475)
Q: What are the requisites of a pour autrui
stipulation?
3. REFORMATION OF INSTRUMENTS
4. INTERPRETATION OF CONTRACTS
A: (3PRUDA)
1. Stipulation in favor of a 3rd person;
2. Stipulation must be a Part, not the whole, of
the contract;
3. Contracting parties do not Represent the third
person.
■ 4. The favor
is
Unconditional
and
uncompensated;
5. The parties Deliberately and clearly conferred
a favor upon a third person;
6. The third
person
communicated
his
Acceptance before the contract or stipulation
is wrote; (Limitless Potentials, Inc. v. Quilala,
GRNos. 157391, 160749, 160816, 2005)
5. RESCISSIBLE CONTRACTS
6. VOIDABLE CONTRACTS
7. UNENFORCEABLE CONTRACTS
8. VOID AND INEXISTENT CONTRACTS
Q: PD 27 prohibits the transfer of ownership
over tenanted rice and/or corn lands after
October 21, 1972 except only in favor of the
actual tenant- tillers thereon. B sold a land,
covered by PD 27, to A, a non-tenant. Can A
assert any right over the subject landholding?
A: (PERLAS-BERNABE) NO. The sale by B to
A is null and void. A cannot assert any right over
the subject landholding ... because his title
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springs from a null and void source. A void
contract is equivalent to nothing: it produces no
civil effect: and it does not create, modify or
extinguish a juridical relation. (Borromeo v. Mina,
G.R. No. 193747, June 5, 2013)
9. CONTRACT OF ADHESION
Q:Js contract of adhesion invalid per se?
made by one party. Contracts of adhesion are not
invalid per se as they are binding as ordinary
contracts. While the Court has struck down some
contracts of adhesion as void, it did so when the
weaker party was subject to a “take it or leave it”
situation - when the weaker party was deprived
of the opportunity to bargain on equal footing.
Thus, the validity or enforceability of contracts of
adhesion will have to be determined based on the
circumstances of each case. (Encarnacion
Construction v. Phoenix Ready Mix, G.R. No.
225402, September 4, 2017)
A: (PERLAS-BERNABE) No. A contract of
adhesion is one wherein one party imposes a
ready-made form of contract on the other. It is a
contract whereby almost all of its provisions are
OBLIGATIONS AND CONTRACTS
Instances
when
demand
is
not
necessary
to
constitute the debtor
in default
ELMU
1.
2.
3.
4.
When there is an Express stipulation to that
effect;
Where the Law so provides;
When the period is the controlling Motive or
the principal inducement for the creation of
the obligation; and
Where the demand would be Useless. (CIVIL
CODE, art. 1169)
Application of Art.
1267 (i.e., where an
obligor is released in
whole or in part of
his obligation when
the
service
has
become so difficult
as to be manifestly
beyond
the
contemplation of the
parties)
Requisites
novation
of
FIFA
1.
2.
3.
4.
The event or change in circumstances could
not have been Foreseen at the time of the
execution of the contract
It makes the performance of the contract
extremely difficult but not impossible
The contract is for a Future prestation.
it must not be due to the Act of any of the
parties ( Tagaytay Realty v. Gacutan G.R. No.
160033, 2015)
PENC
1.
2.
3.
4.
That there is a Previous valid obligation
Intent to Extinguish or to modify the old
obligation by a substantial difference
Capacity and Consent of all the parties
(except in ex promision where the old debtor
does not participate)
Validity of the New obligation (PARAS, 17th
ed., p. 491)
Ways to novate an
obligation
ROP
1. subrogating a third person in the Rights of the
creditor.
2. changing their Object or principal conditions
3. substituting the Person of the debtor
(CIVIL CODE, art. 1291)
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3PRUDA
Requisites of a pour
autrui stipulation
1. Stipulation in favor of a 3rd person;
2. Stipulation must be a Part, not the whole, of the
contract;
3. Contracting parties do not Represent the third
person.
4. The favor is Unconditional and uncompensated;
5. The parties Deliberately and clearly conferred a
favor upon a third person;
6. The third person communicated his Acceptance
before the contract or stipulation is wrote;
(Limitless Potentials, Inc. v. Quilala, GRNos. 157391,
160749, 160816, 2005)
Elements
compromise
agreement
COC
of
1. Consent
2. Object
3. Cause
Note: Same as ordinary contracts.
(Asset Pool A (SPV-AMC), Inc. vs. Clark Development
Corporation, G.R. No. 205915, 2015 )
C.
NATURAL OBLIGATIONS
D.
E.
Q: What is the proof required for express
trusts concerning immovable?
ESTOPPEL
TRUSTS
Q: Distinguish trust from a stipulation pour
autrui.
TRUST (Civil Code,
STIPULATION
POUR AUTRUI
Art. 1441)
(Mamaril v. BSP,
G.R. No. 179382,
2013)
Arises either by virtue
of a contract or by
operation of law
Either express or
implied
Continues to exist
unless repudiated
Arises only by virtue
of a contract
Always express
Third person must
have communicated
his acceptance to the
obligor before its
revocation by the
obligee or the original
parties
Q: Can trustees donate property in trust?
A: To prove an express trust over an immovable
or any interest therein, there must always be a
showing of some documents proving the same.
(Pascual v. Meneses, G.R. No. L-18838, 1967)
No express trust concerning an immovable or any
interest therein may be proved by parol evidence.
(Civil Code, Art. 1443)
Q: What are the resulting and constructive
trusts under the Civil Code?
1. Implied Trust When Property is Granted to
One/Trustee But Price is Paid by Another for
the Interest of Beneficiary
There is an implied trust when property is sold, &
the legal estate is granted to one party but the
price is paid by another for the purpose of having
the beneficial interest of the property. The former
is the trustee, while the latter is the beneficiary.
However, if the person to whom the title is
conveyed is a child, legitimate or illegitimate, of
the one paying the price of the sale, no trust is
implied by law, it being disputably presumed that
there is a gift in favor of the child. (Civil Code, Art.
1448)
A: NO. Trustees cannot donate the property
entrusted to them. (Civil Code, Art. 736)
2. Implied Trust in Donation
There is also an implied trust when a donation is
made to a person but it appears that although the
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legal estate is transmitted to the donee, he
nevertheless is either to have no beneficial
interest or only a part thereof. (Civil Code, Art.
1449)
of the grantor toward the grantee, a trust by virtue
of law is established. If the fulfillment of the
obligation is offered by the grantor when it
becomes due, he may demand the reconveyance
of the property to him. (Civil Code, Ad. 1454)
3. Implied Trust in Sale of Property
If the price of a sale of property is loaned or paid
by one person for the benefit of another & the
conveyance is made to the lender or payor to
secure the payment of the debt, a trust arises by
operation of law in favor of the person to whom
the money is loaned or for whom it is paid. The
latter may redeem the property & compel a
conveyance thereof to him. (Civil Code, Art.
A resulting trust is one that arises by implication
of law and presumed always to have been
contemplated by the parties, the intention as to
which can be found in the nature of their
transaction although not expressed in a deed or
instrument of conveyance. (Heirs o f Yap v. CA,
G.R. No. 133047, 1999)
8. Trustee’s Use of Funds Held in Trust
1450)
When land passes by succession to any person
& he causes the legal title to be put in the name
of another, a trust is established by implication of
law for the benefit of the true owner. (Civil Code,
When any trustee, guardian or other person
holding a fiduciary relationship uses trust funds
for the purchase of property & causes the
conveyance to be made to him or to a third
person, a trust is established by operation of law
in favor of the person to whom the funds belong.
Art. 1451)
(Civil Code, Ad. 1455)
5. Implied Trust in Co-Ownership
In order to prevent unjust enrichment on the part
of the fiduciary, an implied constructive trust is
created in this circumstance.
4. Implied Trust in Succession
if two or more persons agree to purchase
property & by common consent the legal title is
taken in the name of one of them for the benefit
of ail, a trust is created by force of law in favor of
the others in proportion to the interest of each.
(Civil Code, Ad. 1452)
A resulting trust arises in the situation, because
of the intention to create one. Purchasers are co­
owners of the property. In the absence of any
specific agreement to the contrary, their shares
are presumed equal.
6. Property Conveyed in Reliance upon His
Declared Intention to Hold it For Another
When property is conveyed to a person in
reliance upon his declared intention to hold it for,
or transfer it to another or the grantor, there is an
implied trust in favor of the person whose benefit
is contemplated. (Civil Code, Ad. 1453)
9. Property Acquired Through Mistake or
Fraud
If property is acquired through mistake or fraud,
the person obtaining it is, by force of law,
considered a trustee of an implied trust for the
benefit of the person from whom the property
comes. (Civil Code, Ad. 1456)
This trust is created by law to prevent unjust
enrichment on the part of the acquirer to the
prejudice of the true owner. The mistake must be
committed by a third person. If made by a party,
there is no trust.
An implied resulting trust is created because of
the declared intention of the grantee to hold or
transfer the property to the grantor or to another
person.7
7. An Absolute Conveyance
Performance of Obligation
to
Secure
If an absolute conveyance of property is made in
order to secure the performance of an obligation
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VI. SALES
|
A. NATURE AND FORM
Q: What is a contract of sale?
A: It is a contract where one of the contracting
parties (Seller) obligates himself to transfer the
ownership and to deliver a determinate thing, and
the other party (Buyer) to pay a price certain in
money or its equivalent. A contract of sale may be
absolute or conditional. (Art. 1458)
Q: What are the elements of a contract of
sale?
A: The elements of a contract of sale are: (CSP)
1. Consent
2. Determinate or Determinable Subject
Matter
3. Price certain in money or its equivalent
(Coronet v. Court of Appeals, G.R. No.
103577, 1996)
The absence of any essential elements negates
the existence of a perfected contract of sale.
An exception to the rule where the seller need not
be the owner of the subject matter at the-time of
perfection of the contract of sale would be
foreclosure sales. (Art. 2085)
Under Art. 1475, the contract of sale is perfected
at the moment there is a meeting of minds upon
the thing which is the object of the contract and
upon the price. From that moment, the parties
may reciprocally demand performance, subject to
the provisions of the. law governing the form of
contracts. (Ace Foods, inc. v. Micro Pacific
Technologies Co, Ltd., G.R.
December 11, 2013).
No.
200602,
Q: What are the requisites for a valid price?
A: The price or consideration of a contract of sale
must have the following requisites at the time of
the perfection of the sale: (RMC)
1. It must be Real (Art. 1471);
2. It must be in Money or its equivalent,
valueable consideration (Arts. 1458 and
1468);
3.
(Dizon v. Court of Appeals, G.R. No. 122544,
1999)
Q: Does the seller have to be the owner of the
thing during the PERFECTION of the contract
of sale? What is the effect of such sale?
A: No. The seller need not be the owner of the
subject matter at the time of perfection of the
contract. It is sufficient that he has the right to
transfer ownership at the time of delivery of the
subject matter. (Art. 1459)
If the seller acquired the subject matter and
became the owner at the time of delivery, the
seller’s title over the subject matter passes to the
buyer by operation of law. (Art. 1434)
If the seller is NOT the owner of the thing at the
time of delivery, the buyer acquires no better title
to the goods than the seller had, unless the owner
of the goods is by his conduct precluded from
denying the seller’s authority to sell. (Art. 1505) In
cases where the seller cannot transfer ownership
over the thing sold at the time of delivery, he may
be held liable for breach of contract
Page 72 of 120
It must be Certain or ascertainable (Art.
1458)
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Q: Distinguish a contract of sale from a
contract to sell.
A:
corsITRACT OF
CONTRACT TO
SALE
SELL
NA1I RE''
*'
“A contract whereby
the
contracting
parties
obligates
himself to transfer the
ownership and to
deliver a determinate
thing, and the other to
pay therefor a p ric e
certain in m oney o r
its
equivalent. A
contract o f sale may
be
absolute
or
conditional. ”
(Ace
Foods v. Micro Pacific
Technolohies
Co.,
Ltd. G.R No. 200602,
December 11,2013)
I
(Art. 1478)
“A bilateral contract
whereby
the
prospective
seller,
while
expressly
reserving
the
ownership
of
the
subject
property
despite
delivery
thereof
to
the
prospective
buyer,
binds itself to sell the
said
property
exclusively to
the
prospective
buyer
upon fulfillment of the
condition
agreed
upon, that is, full
payment
of
the
purchase price. " (
Associated
Marine
Officers
and
Seamen's Union o f
the Philippines vs
Noriel Decena, G.R.
No. 178584, October
8, 2012)
PAYMENT OFTHE PRICE
Non-payment of the
price is a negative
resolutory condition
(Art. 1179)
1477)
Ownership is reserved
in the seller and shall
not
pass
to
the
purchaser
until
fulfillment of certain
conditions, such as
full payment of the
purchase price (Art.
1478)
|
OWNERSHIP OF THE SELLER
The seller has lost
and cannot recover
ownership of the thing
sold and delivered
(Arts.
1477,
1496)
until and unless the
contract of sale itself
is resolved and set
aside.
1
Title remains in the
seller if the buyer does
not comply with the
condition precedent,
which payment of the
price at the time
specified
in
the
contract. (Tuazon v.
Garilao,
G.R.
143673, 2001)
Full payment of the
price is a positive
suspensive condition,
the failure of which is
not
a
breach
of
contract but simply an
event that prevents
the obligation of the
seller to convey title to
the buyer (Uy& Sons,
Inc. v. Valbueco Inc.,
G.R. No.
179594,
2013)
The
non-
' TRANSFEI
Title passes to the
buyer upon delivery
of the thing sold (Art.
Note: It must be
stipulated
that
ownership in the thing
shall not pass to the
buyer
until
full
payment of the price.
pyament
of
the
purchase
price
renders the contract to
sell without force and
effect.
w
. - REM!b d ie s
Specific performance Specific performance
or rescission under cannot be availed of
Articles 1191, 1592, when the contract to
and 1593.
sell
has
been
cancelled due to the
non-payment of the
purchase price. The
buyer cannot demand
the seller to convey
title when such buyer
did not pay the price,
and the seller cannot
demand the buyer to
pay the price, since
failure to pay resulted
in the cancellation of
the contract to sell.
No.
Page 73 of 120
(Pilipino
Telephone
Corporation
v.
Radiomarine Network
Phils. Inc., 2011)
Remedy of rescission
is
not
available
because the breach
contemplated
in
rescission of contracts
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is the obligor’s failure
to comply with an
obligation
already
extant, not a failure of
a condition to render
binding
that
obligation.
A
non­
existent
obligation
cannot be subject of
rescission. (Diego v.
Diego,
G.R.
No.
______________
i 179965, 2013)
(DE LEON, COMMENTS AND CASES ON
SALES AND LEASE, 2014, at p,21-23)
Q: What are the stages in the life of a sale?
A: The stages in a life of a sale are: (NPC)
1. Policitacion/Negotiation Stage - Starts
from the time the prospective contracting
parties indicate interest in the contract to
the time the contract is perfected;
2. Perfection - Takes place upon the
concurrence of the essential elements of
the sale, which are metting of the minds
as to the object of the contract and upon
the price;
3. Consummation - Begins when the
parties
perform
their
respective
undertaking under the contract of sale,
culminating in the extinguishment of the
contract of sale. (San Miguel Properties
Philippines v. Huang, G.R. No. 137290,
2000)
Q: When is ownership of the thing sold
transferred to the buyer?
person during the period designated, and within
that period, to enter into such contract with the
one to whom the option was granted, if the latter
should decide to use the option. It is a separate
agreement distinct from the contract of sale which
the
parties
may
enter into upon
the
consummation of the option. (Carceller v. Court
of Appeals, G. R. No. 124 791, 1999)
Q: What are the elements of an option
contract?
A: The elements of an option contract are: (A-SuC)
1. Acceptance of the offer to buy or sell;
2. A determinate Subject matter for a price
certain;
3. Consideration, which is separate and
distinct from the purchase price. (Art.
1479, par. 2)
Q: What is the effect of an absolutely
simulated or fictitious contract of sale
A: Under Art. 1346 Of the Civil Code “An
absolutely simulated or fictitious contract is void.
(Tanchuling v. Cantela,
November 10, 2015.)
G.R.
No.
209284,
Q: What is the effect of relative simulated
contract?
A: A relative simulation, when it does not
prejudice a third person and is not intended for
any purpose contrary to law, morals, good
customs, public order or public policy binds the
parties to their agreement.” (Tanchuling v.
Cantela, G.R. No. 209284, November 10, 2015.)
A: Ownership of the thing sold is transferred to
the buyer upon actual or constructive delivery of
the thing. (Art. 1477) The thing sold is understood
as delivered when it is placed in the control and
possession of the buyer. (Art. 1497)
Q: What is an option contract?
A: An option is a preparatory contract in which
one party grants to the other, for a fixed period
and under specified conditions, the power to
decide, whether or not to enter into a principal
contract.
Q: State the rules on option contracts.
A: The rules on option contracts are:
1. If the period is NOT supported by a
separate consideration:
a. The option contract is void.
However, it still consitutes an offer
of a contract of sale which can be
withdrawn by the offeror before he
learns of the acceptance by the
offeree. If the offer is accepted
before withdrawal, it would give
rise to a valid sale. (Sanchez v.
It binds the party who has given the option, not to
enter into the principal contract with any other
Page 74 of 120
Rigos, G.R. No. L-25494, 1972)
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b.
2.
The right to withdraw must not be
done whimsically or arbitrarily,
otherwise the other party may sue
for damages under Article 19.
If the period has a separate consideration:
a. The option contract is deemed
perfected,
if the option is
exercised within the period, it
would give rise to a sale which
can be enforced by specific
performance.
b. If the offer is withdrawn within the
option period, the withdrawal
constitutes a breach of the option
contract.
c. However, if the offer is withdrawn
before acceptance,
i. The offeree may not sue
for specific performance
on the sale, since the sale
itself wass not perfected.
ii. The offeror may be held
liable for damages for
breach of the option
contract.
(Ang
Yu
Asuncion v. Court o f
Appeals,
G.R.
No.
109125, 1994)
Q: What is a right of first refusal?
A: It is a promise on the part of the owner that if
he decides to sell the property in the future, he
would first negotiate its sale to the promisee.
(VILLANUEVA, Law on Sales, p. 156)
It is an innovative juridical creation, which cannot
be deemed a perfected sale nor an option
contract because it merely pertains to a specific
property without containing an agreement as to
the price or the terms or manner of payment of
payment in case of exercise of the right of first
refusal. (Ang Yu Asuncion v. Court o f Appeals,
G.R. No. 109125, 1994)
Q: What is the remedy of the promissee in
case of breach of his right of first refusal?
The Courts would not allow an action for specific
performance or a rescission of the sale to a third
party which constitute the breach of the promise,
even when the third party buyer was entering into
the purchase of the subject property in bad faith.
(Guerrero v. Ynigo, G.R. No. L-5572, 1954)
However, if the right of first refusal is attached to
a valid principal contract, like a contract of lease,
the breach of the right by the promissor allows the
promissee to enforce his right by way of
rescission of the sale entered into with the third
party who was aware of the existence of the right
of first refusal (bad faith). (Equatorial Realty Dev.
Inc., G.R. No. 106063, 1996) The right cannot be
enforced against a purchaser for value and in
good faith. (Rosencor Dev. Corp. v. Inquing, G.R.
No. 140479, 2001)
Q: Is a right of first refusal subject to the
Statute of Frauds?
A: No. Art. 1403 (2) (e) of the Civil Code
presupposes the existence of a perfected, albeit
unwritten, contract of sale; the right of first refusal
is not by any means a perfected contract f sale of
real property. At best, it is a contractual grant, not
of the sale of real property involved, but of the
right of first refusal of the property to be sold. It
need not be in writing and may be proven by oral
evidence (RosencorDevf v. Inquing, G.R. No.
140479, 2001).
Q: Distinguish Earnest Money and Option
Money
*
A:
Earnest Money
Option Money
Part of the purchase
price and proof of the
perfection
of
the
contract
(CIVIL
Distinct consideration
for an option contract
CODE, Art. 1482)
Given only where
there is already a
sale
The buyer is bound to
pay the balance
A: As a general rule, the proper remedy is an
action for damages under Art. 19 of the Civil
Code. (Ang Yu Asuncion v. Court of Appeals,
G.R. No. 109125, 1994)
Applies to a sale not
yet perfected
The buyer is not
required to buy, but
may even forfeit it
depending
on
the
terms of the option.
(Oesmerv. Paraiso Dev. Corp., G.R. No.
111238, 1995)
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Q: Can the prior payment of earnest money
before the owner can agree to sell his
property bind the owner to the obligations of
a seller?
A: No. In a potential sale transaction, prior paymet
of earnest money even before the owner can
agree to sell his property is irregular, and cannot
be used to bind the owner to the obligations of a
seller. The property owner/prospective seller may
not be legally obliged to enter into a sale with a
prospective
buyer
through
the
latter’s
employment of questionable practices which
prevent the owner from freely giving his consent
to the transaction; this constitutes a palpable
transgression of the prospective seller’s rights of
ownership over his property.(First Optima Realty
Corp. v. Securitron Security Services, G.R. No.
1999648, 2015).
B. CAPACITY TO BUY AND SELL
Q: Who may enter into a contract of saie?
A: All natural or juridical persons who have
capacity to act, or the power to do acts with legal
effects, or obligate themselves, may enter into a
contract of sale. (Art. 1489)
The following persons are incapacitated to enter
into a contract of sale because of their incapacity
to give consent: (MID-DRUNK-SPELL)
1. Minors (Art. 1327)
2. insane and Demented Persons (Art. 1327)
o
However, when the contract is
entered into during a lucid
interval the contract is valid. (Art.
3.
4.
1328)
Deaf-Mutes (Art. 1327)
Persons who entered into a contract in a state
of DRUNKenness and hypnotic SPELLMrt.
1328)
Contracts entered into by these persons are
voidable (Art. 1378, 1390) subject to annulment
or ratification. (Art. 1393)
Nonetheless, where necessaries are sold and
delivered to minors or other persons without
capacity to act, he must still pay a reasonable
price therefore, (Art. 1489)thus, the resulting
contract is valid and not merely voidable.
Q: X filed a complaint for Declaration for
nullity of Sale, Reconveyance and damages
involving the subject land originally owned by
Y. X alleged that they are grandchildren and
successor-in-interest
of Z.
Y
denied
respondents’ allegations and countered that
he was a buyer in good faith, for value, and
was without any knowledge or participation in
the alleged defects of the title thereof; and
were never in possession of the subject land
and they never paid real property taxes over
the same. Ultimately,X ciarmed that he was
duped and swindled into buying the subject
land twice. The lower courts ruled in favour of
Y, declaring that the parties are not real
parties to the instant case considering that
they are mere cjTand children of Z. Are the
lower courts correct?
A: Yes. The rule on real parties in interest has two
(2) requirements, namely: (a) to institute an
action, the plaintiff must be the real party in
interest; and (b) the action must be prosecuted in
the name of the real party in interest In the instant
case, respondents claim to be the successors-ininterest of the subject land just because they are
Z's grandchildren. Under the law, however,
respondents will only be deemed to have a
material interest over the subject land- and the
rest of Z's estate for that matter if they would have
to show first that their mother: (a) predeceased Z;
(b) is incapacitated to inherit; or (c) was
disinherited, if Z died testate. (Andy Ang v.
Severino
08,2015)
Pacunio;
G.R
NO
208928,
July
Q: Summarize the rules on sales of conjugal
properties.
A: Sales of conjugal properties by one spouse to
third persons, without the written consent of the
other spouse is void. (FAMILY CODE, Art. 124)
The sale is not merely voidable, since the
resulting contract of sale lacks one of the
essential elements of full consent. The sale will
be classified as voidable if there was only vitiation
of the consent of one spouse. (Guiang v. Court of
Appeals, G.R. No. 125172, 1998)
The sale of property between spouses is void
except in the following instances: (separation of
property)
1. When a separtion of property was agreed
upon in the marriage settlements; or
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2.
When there has been a judicial decree for the
separtion of property. (Art. 1490)
Q: What does the seller have to deliver?
A: The seller has to deliver the following: (Thi-F-
This prohibition relating to spouses is applicable
even to sales in legal redemption, compromises,
and renunciation. (Art. 1492)
Note: The prohibition applies to sale of property
between common law spouses. (Calimlim-
A)
1.
2.
The thing sold (Art. 1495)
Fruits, they belong to the buyer from the
day the contract of sale is perfected (Art.
3.
Accessions and accessories, in the
condition in which they were upon the
perfection of the sale (Art. 1537)
1537)
Cartullas v. Fortun, G.R. No. L-57499, 1984)
Q: X and Y are heirs of Spouses W and Z.
Spouses W and Z owned Lot 2 which was
registered in W ’s name. The land was
eventually subdivided as Lots 2-A, 2-B, and 2C in 1984. Sometime later, X discovered that
Lot 2-C was sold in 1978 by virtue of a
notarized Deed of Sale to Y in the amount of
P150,000. The Deed did not specify the metes
and bounds of the lot being sold. This
prompted X to file a complaint for annulment
of title and reconveyance against X, alleging
that the Deed of Sale was null and void
because the signatures of Spouses W and Z
thereon were forgeries. The lower courts
ruled that the Spouses Z could not have sold
a specific portion of Lot 2 to petitioners,
having been subdivided only in 1984. Are the
lower courts correct?
A: No. Article 1463 of the Civil Code expressly
states that "[t]he sole owner of a thing may sell an
undivided interest therein." In the case at bar, Lot
2 , the original lot, was solely owned by W. As W
was the sole owner of the original Lot 2 from
whence came Lot 2-C, he is therefore allowed by
law to convey or sell an unspecified portion
thereof (Ampray & Ambray v. Tsourous, G.R. No.
209264, July 05, 2016).
DELIVERY OF THE THING SOLD
Q: When is there Real or Actual Delivery?
A: When it is placed in the control and possession
of the vendee. (Art. 1497)
Q: What are the special remedies of unpaid
seller of goods?
A: When a seller is unpaid as defined in Article
1525 of the Civil Code, whether or not ownership
over the goods has been transferred to the buyer,
the unpaid seller is entitled to the following rights
or remedies:
1. Possessory lien - The unpaid seller has a
right to retain the goods for the price while
he is in possession of them (CIVIL CODE,
2.
Art. 1526 (a))
Stoppage in transitu-\n case of insolvency
of the buyer, the unpaid seller has the right
to stop the goods in transitu after he has
parted with the possession of them (CIVIL
CODE, Art. 1526 (b);
3.
Special right of resale (CIVIL CODE, Art.
4.
Special right to rescind (CIVIL CODE, Art.
1526 (c)
1526 (d)
C. EFFECTS OF THE CONTRACT WHEN THE
THING SOLD HAS BEEN LOST
D. OBLIGATIONS OF THE VENDOR
Q: What are the obligations of the seller?
A: The vendor is bound to transfer the ownership
of and deliver, as well as warrant the thing which
is the object of the sale. (Art. 1495)
The four remedies have a hierarchical
application, as in fact, the special righs to resell
and.to rescind can be availed of by the unpaid
seller only when either of the two prior rights of
possessory lien or stoppage in transitu have been
exercised by the unpaid seller. (VILLANUEVA,
Law on Sales, p. 366)
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Q: What are the requisites for the rules on
double sales under Art. 1544 to apply?
of Sarili v. Lagrosa, GR No. 193517, January
14,2014)
2.
A: The requisites for double sales are: (2SuV-
2BC-S)
1.
2.
3.
The two (or more) sales transactions in the
issue must pertain to exactly the same
Subject matter, andmust be Valid sales
transactions.
The two (or more) Buyers at odds over the
rightful ownershipof the subject matter must
each represent Conflicting interests; and
The two (or more) buyers at odds over the
rightful ownership of the subject matter must
each have bought from the very same Seller.
(Cheng v. Genato, G.R. No. 129760, 1998)
Q: Who shall own the thing sold under a
double sale situation?
A: If the thing is a movable property, the owner is
the first to possess the thing in good faith. (Art.
1544)
Where it is an immovable property that is the
subject of a double sale, ownership shall be
transferred
1. To the person acquiring it who in good faith
first recorded it in the Registry of Property;
2. In default thereof, to the person who in good
faith was first in possession; and
3. In default thereof, to the person who presents
the oldest title, provided there is good faith.
(Art. 1544; Gabriel v. Spouses Mabanta, G.R.
No. 142403, 2003)
The requirement of law is two-fold: acquisition in
good faith and registration in good faith. (Gabriel
v. Spouses Mabanta, G.R. No. 142403, 2003)
NOTE:
GR: As a general rule, every person dealing with
registered land may safely rely on the correctness
of the Certificate of Title issued and the will no
way oblige him to go beyond the certificate to
determine the condition of the property. (Heirs of
Sarili v. Lagrosa, GR No. 193517, January 14,
2014)
XPN:
1. However, a higher degree of prudence is
required from one who buys from a person
who is not a registered owner, although the
object of the transaction is registered (Heirs
Where the land sold is in the possession of a
person other than the vendor, as in this case,
the purchaser must go beyond the certificate
of title and make inquiries concerning the
actual possessor. ( Norma C. Magsano v.
Pangasinan Savings & Loan Bank, G.R No.
215038, October 17,2016)
Q: X owned an undivided portion of a lot
registered in the name of Y. On a strength of
a contract to sell, purporting to convey half of
his share to Z, they were able to transfer their
respective rights to Corporation A. X,
claiming that he did not sold his share to Z nor
received any consideration of the said
transfer, X sought to annul the deed of sale. Z
insisted that she paid X and took possession
of X’ portion and declared the same for
taxation purposes. Corporation A, claimed to
be a purchaser in good faith. The RTC
declared Corporation A to be a purchaser in
bad faith in view of the admission of its
representative that he was aware of the fact
that Domingo was part owner of the subject
lot and that he even asked a someone to talk
to X about the sale of his share. Is the lower
court correct?
A: Yes. Verily, one is considered a buyer in bad
faith not only when he purchases real estate with
knowledge of a defect or lack of title in his seller
but also when he has knowledge of facts which
should have alerted him to conduct further inquiry
or investigation. Corporation A cannot veer away
from the admission of its representative,that he
was aware of X ’s interest in the subject lot, and
that Z had no title in her name at the time of the
sale, thus, giving rise to the conclusion that it had
been reasonably apprised of the ownership
controversy over the subject lot. Indeed, what it
failed to realize is that, as one asserting the status
of a buyer in good faith and for value, it had the
burden of proving such status, which goes
beyond a mere invocation of the ordinary
presumption of good faith.( Krystle Realty
Development Corp v. Alibin G.R No. 196117;
August 13,2014)
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CONDITIONS AND WARRANTIES
Q: What are warranties?
A: These are express or implied statements or
representation made by the seller of goods, as
part of the contract of sale, having reference to
the character, quality, or title, of the goods, where
he promises or undertakes to insure that certain
facts shall be as he represents. (CIVIL CODE,
Arts. 1546-1547)
E. OBLIGATIONS OF THE VENDEE
Q: In the sale of immovable property, how
should the seller exercise his right to rescind
the sale upon the buyer’s failure to pay the
price at the time agreed upon?
A: The seller should demand for rescission of the
contract either judicially or by notarial act. As long
as there is no demand for rescission, the vendee
may pay even after the expiration of the period
agreed upon. After the demand for rescission, the
court may not grant the buyer a new term. (Art.
1592)
A demand for rescission by judicial or notarial act
(notarized demand letter or notice) is necessary
before a valid rescission can take place, whether
or
not
automatic
rescission
has
been
stipulated.(Iringan v. Court of Appeals, G.R. No.
129107,2001)
Note: The requirement of demand by judicial or
notarial act under Article 1592, in case the vendor
of an immovable property wants to rescind, does
not apply to contracts to sell or promise to sell,
where title remains wKh the vendor until full
payment of the price (Valarao v. Court of Appeals,
G.R. No. 130347, 1999)
expired, X passed away. X’s heirs now filed a
case for specific performance against
Spouses Y, contending that no downpayment
was required of X, X was allowed to pay
whenever she could, and that as of X’s death,
she had already paid for the lot in full.
Spouses Y, on the other hand, contend that X
did not pay downpayment even if it was
required of her, and that X was unable to pay
for the lot in full because of several
restructuring agreements that increased the
purchase price. Hence, Spouses Y cannot be
compelled to execute a deed of sale. Are the
Spouses Y correct?
A: Yes. A contract to sell differs from a conditional
contract of sale. A contract to sell is akin to a
conditional sale where the efficacy or obligatory
force of the vendor's obligation to transfer title is
subordinated to the happening of a future and
uncertain event, so that if the suspensive
condition does not take place, the parties would
stand as if the conditional obligation had never
existed. In the case at bar, Spouses Y had no
obligation to execute a deed of sale as the
amount paid by X was clearly insufficient to cover
the principal amount. In a contract to sell, the
fulfillment of the suspensive condition wiil not
automatically transfer ownership to the buyer
although the property may have been previously
delivered to him. The prospective seller still has
to convey title to the prospective buyer by
entering into a contract of absolute sale. On the
other hand, in a conditional contract of sale, the
fulfillment of the suspensive condition renders the
sale absolute and the previous delivery of the
property has the effect of automatically
transferring the seller’s ownership or title to the
property to the buyer (Ventura v. Spouses
Endaya, G.R. No. 190016, October 2, 2013).
Q: X entered into a Contract to Sell with
Spouses Y for the purchase of 2 parcels of
land. The contract to sell stipulated the
purchase price of P300,000 and imposed
upon X the obligation to pay real property
taxes or to reimburse Spouses Y for any tax
payments made by them. No downpayment
was given by X. However, upon full payment
of the P30O,OOO, Spouses Y undertook to
execute a final deed of sale in favor of X.
Meanwhile, X was given possession of the
properties and was allowed to erect a house
thereon. However, before the payment period
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Q: X sold a parcel of land to V on 01 January
2002, payment and delivery to be made on 01
February 2002. It was stipulated that if
payment were not to be made by Y on 01
February 2002, the sale between the parties
would automatically be rescinded. Y failed to
pay on 01 February 2002, but offered to pay
three days later, which payment X refused to
accept, claiming that their contract of sale had
already been rescinded. Is X’s contention
correct? Why?
subject property under a contract of loan and the
buyer bought the property from a third party. In
other words, the Recto Law will not apply when
there is no vendor-vendee relationship between
the parties, as in a contract of loan with chattel
mortgage where the relationship of the parties is
that
of
a
debtor
(mortgagor)-creditor
(mortgagee)|Egu/fab/e Savings Bank v. Palces,
A: No, X is not correct. In the sale of immovable
property, even though it may have been
stipulated, as in this case, that upon failure to pay
the price at the time agreed upon the rescission
of the contract shall of right take place, the
vendee may pay, even after the expiration of the
period, as long as no demand for rescission of the
contract has been made upon him either judicially
or by a notarial act (Art. 1592). Since no demand
for rescission was made on Y, either judicially or
by a notarial act, X cannot refuse to accept the
payment offered by Y 3 days after the expiration
of the period.
Appeals, G.R. No. 83851, 1993)
G.R. No. 214752, 2016)
Note: Contracts to sell are not covered by the
Recto Law. (Visayan Sawmili Co. v. Cpurt o f
Q: What are the remedies of a seller under the
Recto Law?
A: In case of default, the following remedies are
available to the seller:
1. Exact fulfillment of the obligation,
should the buyer fail to pay;
2. Cancel the sale, if the buyer fails to pay
2 or more installments;
3. Foreclose the chattel mortgage on the
thing sold, if the buyer fails to pay 2 or
more installments;
F. BREACH OF CONTRACT
In case of foreclosure, the seller shall
have no further action against the buyer
to recover any unpaid balance of the
price and any agreement to the contrary
shall be void. (Art. 1484)
1. REMEDIES
2. RECTO LAW AND MACEDA LAW
A. RECTO LAW
Q: What is the coverage of the Recto Law?
A: Recto Law covers:
1. Contracts of sale of personal property by
installments (Art. 1484)]
2. Contracts purporting to be leases of
personal property with option to buy, when
the lessor has deprived the lessee of the
possession or enjoyment of the thing (Art.
1485)]
Note: In case of financing transactions derived or
arising from sale of movables on installments, the
financing company is bound by the Recto Law, if
the seller is the agent of the financing company
or when the seller assigned his credit to the
financing company. (Zayas v. Luneta Motor
Company, G.R. No. L-30583, 1982)However, the
Recto Law will not apply to the financing
company, if it merely financed the purchase of the
These remedies are alternative and exclusive,
and the exercise of one would bar the exercise of
the others. (Delta Motor Sales Corp. v. Niu Kim
Duan, G.R. No. 61043,1992)
Q: Y purchased a car from Bank X in the
amount of P1 million. In connection therewith,
Y executed a Promissory Note with Chattel
Mortgage in favor of Bank X, and stipulated
that Y will pay the amount in 36-monthly
installments. Y eventually defaulted on her
installments, prompting Bank X to send her a
demand letter and file a complaint for
Recovery of Possession with Replevin. Y, for
her part, admitted that she defaulted payment
for the months of January and February but
called Bank X’s officer who consented to a
delayed payment scheme. Y made payments
in the amount of P103,000 in March but was
surprised when Bank X filed the instant
complaint. Y contends that Bank X had
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already waived its right to recover any unpaid
installments when it sought for a writ of
replevin in order to gain possession of the
subject vehicle. Is Y correct?
1.
A: (PERLAS-BERNABE) No. Article 1484
provides that in cases of a contract of sale of
personal property the price of which is
payable in installments, “the vendor may
exercise: (1) exact fulfillment of the obligation,
should the vendee fail to pay; (2) cancel the sale,
should the vendee's failure to pay cover two or
more installments; and (3) foreclose the chattel
mortgage on the thing sold if one has been
constituted, should the vendee's failure to pay
cover two or more installments. In this case, he
shall have no further action against the purchaser
to recover any unpaid balance of the price. Any
agreement to the contrary shall be void.” In the
present case, there was no vendor-vendee
relationship between Bank X and Y as Y did not
buy the car from Bank X but merely sought
financing from the latter. Only a vendor may
exercise the remedies provided for under Art.
1484 (Equitable Savings Bank v. Palces, G.R.
2.
Pay the unpaid installments due without
additional interests, within the grace
period. The grace period is 1 month for
every year of installment payments made.
This right shall be exercised only once
every 5 years of the life of the contract and
its extensions.
Cancel the contract and receive 50% of
the cash surrender value of the total
payments made as refund.
a. Receive additional refund of 5%
for every year exceeding 5 years,
if the buyer has paid more than 5
years of installments, provided
that the total amount to be
refunded shall not exceed 90% of
the total payments made. (R.A.
6552, Sec. 3)
If the buyer has paid less than 2 years of
installments:
•
The buyer has the right to a grace period
of not less than 60 days from the date the
installment became due. (R.A. 6552,
Sec. 4)
No. 214752, March 09, 2016).
Exception: Even if the seller had chosen specific
performance,
if the same has become
impossible, the seller may still choose rescission.
(Art. 1191).
B. MACEDA LAW
However, if the buyer fails to pay the installments
due at the expiration of the grace period, the
seller has to give a notice of cancellation or
demand rescission of the contract by a notarial
act from the buyer, and only after 30 days from
the buyer’s receipt of such can the seller cancel
the contract. (R.A. 6552, Sec. 4)
Q: What is the coverage of the Maceda Law or
the Realty Installment Buyer Protection Act?
G. EXTINGUISHMENT OF SALE
Q: How is a sale extinguished?
A: It covers all contracts involving the sale or
financing of real estate on installment payments,
including residential condominium apartments.
A: A: Sales are extinguished by the same causes
as all other obligations such as: (CIVIL CODE,
(R.A. No. 6552, Sec. 3)
Art. 1600)
It does
1.
2.
3.
not apply to sales of:
Industrial lots;
Commercial buildings and lots; and
Sales to tenants under agrarian reform
laws (R.A. 6552, Sec. 3)
Q: What are the rights granted to the buyer
under the Maceda Law, in case he defaults in
the payment of installments?
A: If the buyer has paid at least 2 years of
installments:
1.
2.
3.
4.
Payment or performance
Loss of the subject matter
Condonation or remission
Confusion or merger of rights of creditor
and debtor
5. Compensation
6. Novation
7. Annulment
8. Rescission
9. Fulfillment of a resolutory condition
10. Prescription
11. Conventional Redemption
12. Legal Redemption
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A. CONVENTIONAL REDEMPTION
Q: When is a contract presumed to be an
equitable mortgage?
A: The contract shall be presumed to be an
equitable mortgage, in any of the following cases:
(P2-l-R-T-S)
1.
2.
3.
4.
5.
6.
When the Price of a sale with right to
repurchase is unusually inadequate;
When the vendor remains in Possession
as lessee or otherwise;
When upon or after the expiration of the
right to repurchase another instrument
extending the period of redemption or
granting a new period is executed;
When the purchaser Retains for himself a
part of the purchase price;
When the vendor binds himself to pay the
Taxes on the thing sold;
In any other case where it may be fairly
inferred that the real intention of the
parties is that the transaction shall Secure
the payment of a debt or the performance
of any other obligation.
In any of the foregoing cases, any money, fruits,
or other benefit to be received by the vendee as
rent or otherwise shall be considered as interest
which shall be subject to the usury laws. (Art.
1602)
Q: What are the rules on the period within
which to exercise the right to repurchase
under Article 1601 ?
A:
AGREEMENT
PERIOD
No
express
agreement on
the period
Vendor may redeem within
4 years from the date of the
contract (CIVIL CODE, Art.
Express
agreement
the period
Vendor may redeem within
the period agreed upon,
which shall not exceed 10
years. (Art. 1606 par. 2)
1606 par. 1)
on
However, the vendor may still exercise the right
to repurchase within 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
to repurchase. (Art. 1606 par. 3)
Q: X obtained a loan from Lending
Corporation A, which was secured by a real
estate mortgage over a parcel of land. X
defaulted in the payment, prompting Lending
Corporation A to extra-judicially foreclose the
mortgage. Being the highest bidder in the
auction, Lending Corporation A acquired the
land and a Certificate of Sale was registered
with the Registry of Deeds. X failed to redeem
the subject property within the one-year
reglementary
period
causing
Lending
Corporation A to demand X to vacate the
property, but to no avail. X is claiming that he
still has one year to redeem the land pursuant
to Republic Act 720, otherwise known as the
Rural Banks Act. Is X correct?
A: No. In an extra-judicial foreclosure of
registered land, the mortgagor may redeem the
property within 2 years from the date of
foreclosure if the land is mortgaged to a rural
bank under Republic Act 720, or within 1 year
from the registration of the certificate of sale if the
land is mortgage to parties other than rural banks
pursuant to Act No. 3135. If the mortgagor fails to
exercise such right, he or his heirs may still
repurchase the property within 5 years from the
expiration of the aforementioned redemption
period pursuant to Section 119 of the Public Land
Act. In the case at bar, the subject property was
mortgaged and foreclosed by a lending
institution, not a rural bank; hence, the
redemption period is only one year from the
registration of the certificate of sale. Given that X
failed to redeem the subject property within the
aforestated
redemption
period,
Lending
Corporation A is entitled, as a matter of right, to
Consolidate its ownership and possess the same.
Nontheless, such right should not negate X ’s right
to repurchase said property within 5 years from
the expiration of the redemption period. (Spouses
Guevarra
v.
The
Commoner
Lending
Corporation, Inc., GR No. 204672, February 18,
2015)
B. LEGAL REDEMPTION
Q: Explain the right of legal redemption
among co-owners.
A: A co-owner may exercise the right of
redemption in case the shares of all the other co­
owners or of any of them, are sold to a third
person. If the price for the sale is grossly
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excessive, the redemptioner shall pay only a
reasonable one. (Art. 1620)
Should two or more co-owners desire to exercise
the right of redemption, they may only do so in
proportion to the share they may respectively
have in the thing owned in common. (Art. 1620)
The requisites for the exercise of legal
redemption among co-owners are: (Co-St-BPCoPerN-R)
1. There must be Co-ownership at the time
of the conveyance of the property; '
2. One of the co-owners sold his right to a
Stranger;
3. The sale was made Before the Partition of
the co-owned property;
4. The right of redemption must be exercised
by one or more Co-owners within a Period
of thirty days to be counted from the time
he or they were Notified in writing by the
co-owner seller; and
5. The buyer must be Reimbursed the price
of the sale. (C alm a v. Santos, G.R. No.
161027, 2009)
Note: Co-owners with actual notice of the sale are
not-entitled to written notice. (S i v. C ourt o f
A ppeals, G.R. No. 122047, 2000)
Q: When does the period to exercise iegal
redemption begin?
A: The 30-day period to exercise legal
redemption only commences from the written
notice given by the seller to all possible
redemptioners. (Art. 1623)
Q:
What
is the
difference
between
Conventional
Redemption
and
Legal
Redemption?_____________________________
CONVENTIONAL
LEGAL
REDEMPTION
REDEMPTION
By
express
agreement, the seller
is given the right to
repurchase the thing
sold (Article 1600)
The
rig h t
to
be
subrogated, upon the
sam e
term s
and
condition s stip u la te d in
the contract, in the
p la ce o f one who
acquires a thing b y
p u rchase o r dation in
paym ent, o r b y a n y
o th e r
transaction
w hereby ow nership is
transm itted _______ b y
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onerous title (Article
1603) ______________
H. ASSIGNMENT OF CREDIT
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CIVIL LAW
CSP
Elements
of
Contract of Sale
The elements of a contract of sale are:
1. Consent
2. Determinate or Determinable Subject Matter
3. Price certain in money or Its equivalent
(Coronet v. Court o f Appeals, G.R. No.
* 103577, 1996)
Requisites of a Valid
Price
RMC
The price or consideration of a contract of sale must
have the following requisites at the time of the
perfection of the sale:
1. It must be Real (CIVIL CODE, Art. 1471);
2. It must be in Money or its equivalent,
valueable consideration (CIVIL CODE, Art.
1458 and 1468)]
3.
It must be Certain or ascertainable (CIVIL
CODE, Art. 1458)
Stages in a Life of a
Sale
NPC
The stages in a life of a sale are:
1. Policitaclon/Negotiation Stage - Starts from
the time the prospective contracting parties
indicate interest in the contract to the time the
contract is perfected;
2 . Perfection Takes place upon the
concurrence of the essential elements of the
sale, which are metting of the minds as to the
object of the contract and upon the price;
Consummation - Begins when the parties
perform their respective undertaking under
the contract of sale, culminating in the
extinguishment of the contract of sale. (San
Miguel Properties Philippines v. Huang, G.R.
No. 137290, 2000)
Elements
of
Option Contract
an
A-Su-C
The elements of an Option contract are:
1. Acceptance of the offer to buy or sell;
2. A determinate Subject matter for a price
certain;
3. Consideration, which is separate and distinct
from the purchase price. (CIVIL CODE, Art.
1479, par. 2)
Persons
Incapacitated
to
enter into a Contract
of Sale
M-I-D-DRUNK-SPELL
The following persons are incapacitared to enter into
a contract of sale because of their incapacity to give
consent:
1. Minors (CIVIL CODE, Art. 1327)
2. Insane and Demented Persons (CIVIL
CODE, Art. 1327)
However, when the contract is entered into
Hurl no 9 lucid interval the contract is valid.
■>Ol
ic y
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*3.
4.
Deaf-Mutes (CIVIL CODE, Art. 1327)
Persons who entered into a contract in a state
of
DRUNKenness
and
hypnotic
SPELUCIVIL CODE. Art. 1328)
Things that the Seller
must Deliver
Thi-F-A
The seller has to deliver the following:
1. The Thing sold (CIVIL CODE, Art. 1495)
2. Fruits, they belong to the buyer from the day
the contract of sale is perfected (CIVIL
CODE, Art. 1537)
3.
Requisites
Rules
on
Sales
for the
Double
2SuV-2BC-S
Accessions and accessories, in the condition
in which they were upon the perfection of the
sale (CIVIL CODE Art. 1537)
The requisites for double sales are:
1. The two (or more) sales transactions in the
issue must pertain to exactly the same
Subject matter, and must be Valid sales
transactions.
2. The two (or more) Buyers at odds over the
rightful ownershipof the subject matter must
each represent Conflicting interests; and
3. The two (or more) buyers at odds over the
rightful ownership [Compl] of the subject
matter must each have bought from the very
sameSeller. (Cheng v. Genato, G.R. No.
129760, 1998)
Presumptions
of
Equitable Mortgage
P2-l-R-T-S
Requisites for the
Exercise of Legal
Redemption among
Co-owners
Co-St-BP-CoPerN-R
The contract shall be presumed to be an equitable
mortgage, in any of the following cases:
1. When the Price of a sale with right to
repurchase is unusually inadequate;
2. When the vendor remains in Possession as
lessee or otherwise;
3. When upon or after the expiration of the right
to repurchase another Instrument extending
the period of redemption or granting a new
period is executed;
4. When the purchaser Retains for himself a part
of the purchase price;
5. When the vendor binds himself to pay the
Taxes on the thing sold;
6. In any other case where it may be fairly
inferred that the real intention of the parties is
that the transaction shall Secure the payment
of a debt or the performance of any other
obligation. (CIVIL CODE, Art. 1602)
1.
2.
3.
There must be Co-ownership at the time of
the conveyance of the property;
One of the co-owners sold his right to a
Stranger;
The sale was made Before the Partition of the
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4.
5.
co-owned property;
The right of redemption must be exercised by
one or more Co-owners within a Period of
thirty days to be counted from the time he or
they were Notified in writing by the co-owner
seller; and
The buyer must be Reimbursed the price of
the sale. (Calma \/. Santos, G.R. No. 161027,
2009)
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A: In a partnership by estoppel, he is liable as
though he were an actual member of the
partnership, when a partnership liability results or
is liable pro rata with the other persons, jf any, so
consenting to the contract or representation as to
incur liability, otherwise separately, when no
partnership liability results. (Civil Code, Article
generally relates to a continuing business of
various transactions of a certain kind. The
evidence presented falls short of the quantum of
proof required to establish a partnership. In the
absence of evidence, it cannot be established
that X contributed his resources to a common
fund for the purpose of establishing a partnership.
Besides, it is indeed odd, that despite the forty
years the partnership was allegedly in existence,
X never asked for an accounting. The essence of
a partnership is that the partners share in the
profits and losses. Each has the right to demand
an accounting as long as the partnership exists.
A demand for periodic accounting is evidence of
a partnership. During his lifetime, X appeared
never to have made any such demand for
accounting from Y. There being no partnership, it
follows that there is no dissolution, winding up or
liquidation to speak of. (Heirs o f Tan Eng Kee v.
1825)
CA, GR No. 126881, 2000)
Q: X and Y pooled their resources and
industry together and entered into a
partnership engaged in the business of
selling lumber and hardware and construction
supplies, which was
called “Benguet
Lumber,” which they jointly managed until X’s
death. In the 40 years of business, X never
asked for accounting of the assets. The
business prospered and it was later turned
into a corporation called “Benguet Lumber
Company.” Alleging that the incorporation
was done to deprive X and his heirs their
rightful share in the profits, they prayed for
accounting of the partnership assets, and the
dissolution and winding up and liquidation
thereof. RTC held that it was a joint venture
akin to a particular partnership. CA reversed.
Is the RTC correct in ruling that X and Y are
partners in a particular partnership?
Q: Can corporations enter into partnership
agreements?
VII. LEASE
|
VIII. PARTNERSHIP
Q: What is the liability of a person who by
words spoken or written or by conduct,
represents himself, or consents to another
representing him to anyone, as a partner in an
existing partnership or with one or more
persons not actual partner?
A: NO. There was no partnership whatsoever. A
particular partnership is distinguished from a joint
adventure, to wit: (a) A joint adventure (an
American concept similar to our joint accounts) is
a sort of informal partnership, with no firm name
and no legal personality. In a joint account, the
participating merchants can transact business
under their own name, and can be individually
liable therefor, (b) Usually, but not necessarily a
joint adventure is limited to a SINGLE
TRANSACTION, although the business of
pursuing to a successful termination may
continue for a number of years; a partnership
A: As a general rule, corporations cannot enter
into a contract of partnership with an individual or
another corporation; however, it may be allowed
to do so provided it complies with certain
conditions, to wit: (a) the authority to enter into a
partnership relation is expressly conferred by the
charter of or AOI of the corporation,' and the
nature of the business venture to be undertaken
by the partnership is in line with business
authorized by the charter or AOI of the
corporation involved; (b) if it is a foreign
corporation, it must obtain a license to transact
business in the country in accordance with the
Corporation Code of the Philippines. HOWEVER,
while a corporation has no power to enter into a
partnership, nevertheless, it may validly enter into
a joint venture agreement, where the nature of
that venture is in line with the business authorized
by its charter. (SEC OGC-OpinionNo. 16-22,
October 4, 2016).
Q: How is an architectural firm formed?
A: Under The Architecture Act of 2004 (R.A. No.
9266), a firm may be registered or licensed as
such for the practice of architecture under the
following conditions:
1. Only Filipino citizens properly registered
and licensed as architects under this Act
may, among themselves, or together with
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2.
3.
4.
allied technical professionals, form and
obtain registration as a firm, company,
partnership, association or corporation
for the practice of architecture;
Registered and licensed architects shall
compose at least seventy-five percent
(75%) of the owners, shareholders,
members
incorporators,
directors,
executive officers, as the case may be;
Individual members of such firm,
partnership association or corporation
shall be responsible for their individual
and collective acts as an entity and as
provided by law;
Such firm, partnership, association or
corporation shall be registered with the
Securities and Exchange Commission
and Board.
Q: What is the liability of partners (including
industrial partners and limited partners) in a
partnership?
A: All partners, including industrial ones, shall be
liable pro rata with all their property and after all
the partnership assets have been exhausted, for
the contracts which may be entered into in the
name and for the account of the partnership,
under its signature and by a person authorized to
act for the partnership. However, any partner may
enter into a separate obligation to perform a
partnership contract. (Civil Code, Article 1816). A
limited partner is not allowed to contribute
services, only “cash or other property” (Civil
Code, Article 1845); otherwise, he is considered
an “industrial and general partner” and thus, not
exempted from personal liability.
Q: What are the prohibitions imposed upon
industrial and capitalist partners?
A: Industrial partner cannot engage in business
(w/n same line of business with the partnership)
unless partnership expressly permits him to do
so. (Civil Code, Article 1789) While a capitalist
partner cannot engage in business (with same
kind of business with the partnership) for his own
account, unless there is a stipulation to the
contrary. (Civil Code, Article 1808)
Q: What are the consequences if an industrial
partner engages in any business?
A: If the industrial partner engages in business for
himself, the capitalist partners may either:
i.
exclude him from the partnership, or
ii.
avail themselves of the benefit
obtained by him from the business,
iii.
file an action for damages against the
industrial partner, in either case.
(Civil Code, Article 1789)
Q: What are the consequences if a capitalist
partner engages in a business whidh
competes with
the
business
of the
partnership?
A: if a capitalist partner engages in a business
which competes with the business of the
partnership:
i.
he may be required to bring to the
common funds the profits he derived
from the other business
ii.
he shall personally bear the losses
iii.
he may be ousted from the
partnership, especially if there was
warning (Civil Code, Art. 1808)
Q: What are the obligations of a managing
partner who collects debt from a person who
also owed the partnership?
A: When a managing partner collects debt from a
person who also owed him in his personal
capacity, he must apply the sum collected to 2
credits (the partnership and his own) in proportion
to their amounts, even though he may have given
a receipt for his own credit only. But if the amount
was received for the account of the partnership,
the whole sum shall be applied to partnership
credit. (Civil Code, Art. 1792)
Q: What are the obligations of a partner who
receives his share of the partnership credit,
when the other partners have not collected
theirs and the debtor thereafter becomes
insolvent?
A: He is obliged to bring to the partnership capital
what he received even though he may have given
receipt for his share only. (Civil Code, Art. 1793)
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Q: When does the contributing partner bear
the risk of loss of things contributed?
A: When specific and determinate things
contributed are not fungible and only the use and
fruits thereof is contributed. (Civil Code, Art.
Q: What are the rights of an assignee to whom
a partner assigns his interest in the
partnership?
A:
1.
1795)
2.
Q: How are profits distributed among the
partners?
A: If there is an agreement: profits and losses
shall be distributed according to what is agreed
upon. If there is no agreement: the capitalist
partner shall have his share in proportion to his
capital contribution while the industrial partner
shall be given what is just and equitable under the
circumstances. (Civil Code, Art. 1797)
3.
4.
Assignee gets whatever the assignorpartner would have obtained
Assignee can avail of the usual remedies
in case of fraud in the management
Assignee can ask for the annulment of
contract of assignment if he was induced
to join through any of the vices of consent
Demand an accounting (only in case of
dissolution) (Civil Code, Art. 1813)
Q: What are the responsibility
partnership to the partners?
of
the
A:
Q: How are losses distributed among the
partners?
A: If there is an agreement, losses shall be
distributed according to what is agreed upon. If
there is no agreement as to the distribution of
losses, but distribution of profits is agreed upon,
the agreement as to the distribution of profits shall
also appiy to the distribution of losses. If there is
no agreement as to the distribution of losses and
profits, the capitalist partner shall bear the losses
in proportion to their capital contribution. The
industrial partner shall not be liable for losses.
(Civil Code, Art. 1797)
Q: Can a stipulation exempting a partner from
losses valid?
A: Yes, if a person can make a gift to another,
there is no sound reason why a person cannot
also agree to bear all the losses. But, as far as
third persons are concerned, any such stipulation
may be declared as void. (De Leon, pp. 124-125,
citing Espiritu v. Cibal)
Q: What are the property rights of a partner?
1.
2.
3.
To refund the amounts disbursed by
partner in behalf of the partnership plus
corresponding interest from the time the
expenses are made (loans and advances
made by a partner to the partnership
aside from capital contribution)
To answer for obligations the partner
may have contracted in good faith in the
interest of the partnership business
To answer for risks in consequence of it
management (Civil Code, Art. 1796)
Q: What is the consequence of the inclusion
of a person’s name in the partnership name?
A: Persons who include their name in the
partnership name, even if they are not members,
shall be liable as a partner. (Civil Code, Art. 1815)
Q: What is the liability of the partners for
contractual obligations of the partnership?
A: All partners, including industrial ones, shall be
liable pro rata with all their property for contractual
obligations of the partnership with their property,
after all partnership assets have been exhausted.
(Civil Code, Art. 1816)
A:
i.
ii.
iii.
His rights in specific partnership
property
His interest in the partnership
His right to participate in the
management (Civil Code, Art. 1810)
Q: What is the liability of an incoming partner
to obligations of the partnership arising
before his admission?
A: A person admitted as partner into an existing
partnership is liable for existing obligations of the
partnership only to the extent of his share in the
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partnership property, unless there, is a stipulation
to the contrary. {Civil Code, Art. 1826)
Q: What are the rules and effects of
conveyance of real property belonging to the
partnership?
A:
1.
2.
3.
4.
5.
When title is in the partnership name and
conveyance
is
executed
in
the
partnership name: Conveyance passes
title but the partnership may recover if the
conveyance was not in the usual way of
business or the buyer had knowledge of
the lack of authority
When title is in the partnership name and
conveyance is executed by a partner in
his own name: Conveyance does not
pass title but only equitable interest
unless conveyance was not in the usual
way of business or buyer had knowledge
of lack of authority
When title is in the name of 1 or more
partners and conveyance is executed in
the name of the partner/ partners in
whose name the title stands: conveyance
passes title but the partnership can
recover if conveyance was not in the
usual way of business or buyer had
knowledge of lack of authority
When title is in the name of 1 or more or
all of the partners or a 3rd person in trust
for the partnership and conveyance is
executed in the partnership’s name:
Conveyance will only pass equitable
interest
When title is in the name of all partners
and conveyance is in the name of all the
partners: conveyance will pass title (Civil
Code, Art. 1819)
*
Q: What are the causes of dissolution of a
partnership?
A:
1.
Without violation of the agreement
between the partners
a. By termination of the definite
term/
particular
undertaking
specified in the agreement
b. By the express will of any
partner, who must act in good
faith, when no definite term or
2.
3.
4;
5.
6.
7.
8.
particular
undertaking
is
specified
c. By the express will of all the
partners who have not assigned
their interest/ charged them for
their separate debts, either
before or after the termination of
any specified term or particular
undertaking
d. By the bona fide expulsion of any
partner from the business in
accordance
with
power
conferred by the agreement
In contravention of the agreement
between the partners, where the
circumstances do not permit a dissolution
under any other provision of this Article,
by the express will of any partner at any
time
By any event which makes it unlawful for
business to be carried on/for the
members to carry it on for the partnership
Loss of specific thing promised by
partner before its delivery
Death of any partner
Insolvency of a partner/partnership
Civil interdiction of any partner
Decree of court under Art. 1831 {Civil
Code, Art. 1830)
Q: Differentiate dissolution, winding up and
termination?
A: Dissolution is the change in the relation of the
partners caused by any partner ceasing to be
associated in the carrying on of the business. The
partnership is not terminated but continues until
the winding up of partnership affairs is completed.
Winding up is the process of setting the business
or partnership affairs after dissolution, which
includes the payment of previous obligations and
collection of assets previously demandable.
Termination is the point when all partnership
affairs are completely wound up and finally
settled. It signifies the end of partnership life.
Q: What are the grounds for dissolution of a
partnership by decree of court?
A:
i.
ii.
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Partner declared insane in any judicial
proceeding or shown to be of unsound mind
Incapacity of partner to perform his part of
the partnership contract
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ili.
.
iv.
v.
vi.
vii.
Partner guilty of conduct prejudicial to
business of partnership
Willful or persistent breach of partnership
agreement or conduct which makes it
reasonably impracticable to carry on
partnership with him
Business can only be carried on at a loss
Other
circumstances
which
render
dissolution equitable
Upon application by purchaser of partner’s
interest:
a. After
termination
of
specified
term/particular undertaking
b. Anytime if partnership at will when
interest was assigned/charging order
issued (Civil Code, Art. 1831)
Q: When can a partner still bind
partnership even after dissolution?
A:
i.
ii.
Q: What are the rights of a partner in a
partnership dissolved in contravention of a
partnership agreement?
A:
i.
For partner who has not caused the
dissolution wrongfully:
a. Apply partnership
property to
discharge liabilities of partnership
b. Apply surplus, if any to pay in cash
the net amount owed to partners
c. Indemnity for damages caused by
partner guilty of wrongful dissolution
d. Continue business in same name
during agreed term
e. Possess partnership property if
business is continued
ii.
For a partner who wrongfully caused the
dissolution
the
•
•
Transactions in connection to winding up
partnership affairs/completing transactions
unfinished
Transactions which would bind partnership if
not dissolved, when the other party/obligee:
a. Apply partnership
property to
discharge liabilities of partnership &
receive in cash his share of surplus
less damages caused by his
wrongful dissolution
- - - Situation 1
•
1. Had extended credit to partnership prior
to dissolution; and
2. Had no knowledge/notice of dissolution
1834)
2.
If business continued
others
by
a. Have the value of his interest at time
of dissolution ascertained and paid
in cash/secured by bond & be
released from all existing/future
partnership liabilities
Situation 2
1. Did not extend credit to partnership;
partnership
prior to
2. Had
known
dissolution; and
of
3. Had
no
knowledge/notice
of
dissolution
not
dissolution/fact
advertised in a newspaper of general
circulation in the place where partnership
is regularly carried on (Civil Code, Art.
1. If business not continued by
others
•
(Civil Code, Art. 1837)
Q: What is the effect if the business of a
dissolved partnership is continued?
A:
1.
Creditors of old partnership are also
creditors of the new partnership, which
continues the business of the old one w/o
liquidation of the partnership affairs (Civil
2.
Creditors have an equitable lien on the
consideration paid to the retiring
/deceased partner by the purchaser
when retiring/deceased partner sold his
interest w/o final settlement with creditors
(Civil Code, Art. 1840). The retired or
Q: When is a partner discharged from any
existing liability upon dissolution?
Code, Art. 1840)
A: As a general rule, dissolution of the partnership
does not of itself discharge the existing liability of
any partner. Except when there is an agreement
to that effect between himself, the partnership
creditor and person/partnership continuing the
business. (Civil Code, Art. 1835)
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deceased
partner
or
his
legal
representatives may
a. Have the value of his interest
ascertained as of the date of
dissolution
b. May receive as ordinary creditor
the value of his share in the
dissolved
partnership with
interest or profits attributable to
use of his right, at his option
(Civil Code, Art. 1841)
Q: Who are the persons authorized to wind up
the partnership business?
A:
i.
ii.
iii.
limited. (Jo Chung Gang v. Pacific Commercial
Co., 45 P h il142) "
Q: Can a person be admitted as a partner in a
limited partnership even without the consent
or ratification of all the limited partners?
A: Yes, if he is admitted as a limited partner, not
as a general partner, and if the admission of a
limited partner even without the consent or
ratification of ail the limited partners is authorized
in the certificate of partnership. (Civil Code,
Article 1850)
Q: What are the requisites for the return of the
contribution of a limited partner?
Partners designated by the
In absence of agreement,
have
not
wrongfully
partnership
Legal representative of last
agreement
all partners who
dissolved
the
surviving partner
(Civil Code, Art. 1836)
A: (1) All liabilities of partnership have been paid/if
not yet paid, at least sufficient to cover them; (2)
consent of all members has been obtained; and
(3) certificate is cancelled/amended as to set forth
withdrawal or reduction of contribution. (Civil
Code, Article 1851)
Q: What are the characteristics of a limited
partnership?
A:
i.
ii.
iii.
Formed by compliance with statutory
requirements (Civil Code, Art. 1843)
One or more general partners control the
business (Civil Code, Art. 1843)
One or more general partners and one or
more limited partners. (Civil Code, Art. 1843)
Limited partners contribute cash or other
property, but not services (Civil Code, Art.
1845) and share in the profits but do not
participate in the management of the
business (Civil Code, Art. 1848) and are not
personally liable for partnership obligations
beyond their capital contributions (Civil
Q: What are the instances where a limited
partner does not become liable as a general
partner to partnership creditors even if his
surname appears in the partnership name?
A:
1.
2.
3.
if the creditors have actual knowledge
that he is not a general partner;
If the surname is also the surname of a
general partner; or
If prior to the time the partner became a
limited partner, the business has been
carried under such name. (Civil Code,
Art. 1846)
l
IX. AGENCY
Code, Art. 1858)
iv.
May ask for the return of their capital
contributions under conditions prescribed by
law (Civil Code, Art. 1857)
Q: Can a principal be compelled to reinstate
an agent after the former illegally terminated
their agency contract?
Q: What is the result if a limited partnership is
formed without substantially complying with
all the requirements under Article 1844 of the
Civil Code?
A: No. An illegal termination of agency does not
justify reinstatement of the agent as such. The
agency cannot be compelled by the courts to be
reinstated because such relationship can only be
given effect with the consent of the principal.
(Orient Air Services v. Court of Appeals, 197
•SCR.A 645)
A: The firm becomes a general partnership as far
as third persons are concerned. However, as
amongst the partners, the partnership is still
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Q: Will a broker be paid if the transaction was
effected after the expiration of his authority?
telegram. (Civil Code, Art. 1872)
Q: What are the requisites of an Agency by
Estoppel?
A: Yes, if the broker is the efficient procuring
cause in bringing the sale. He is the efficient
procuring cause when there is a close proximate
and causal connection between the efforts and
labor of the agent and the principal’s sale of
property if he is the efficient procuring cause.
A:
1.
(Pratts v. Court of Appeals, 81 SCRA 360)
2.
Q: What are the requisites for a Principal to be
bound by act of his agent?
3.
A:
1.
The principal manifested a representation of
the agent’s authority or knowingly allowed the
agent to assume such authority;
The third person, in good faith, relied upon
such representation; and
Relying upon such representation, such third
person has changed his position to his
detriment (Country Bankers Insurance
Corporation v. Keppel Cebu Shipyard, et. al.,
G.R. No. 166044, 2012).
The agent must act in behalf of the principal
(Civil Code, Art. 1868)
2.
The agent must act within the scope of his
authority (Civil Code, Art. 1897)
Q: When may the Principal be bound by the
acts of an agent who has acted without or
beyond the scope of his authority?
A:
1.
2.
3.
4.
Where the acts of the principal have
contributed to deceive a 3rd person in good
faith; (Civil Code, Art. 1900)
Where the limitations upon the power created
by the principal could not have been known
by the 3 rd person; (Civil Code, Art. 1900)
Where the principal has placed in the hands
of the agent instruments signed by him in
blank; (can’t find legal basis)
Where the principal has ratified the acts of the
agent (Civil Code, Art. 1910)
Q: How is implied acceptance manifested as
between persons who are present and those
who are absent?
A: As between persons who are present, the
acceptance of the agency may be implied if the
principal delivers his power of attorney to the
agent and the latter receives it without any
objection. (Civil Code, Art. 1871). Meanwhile, as
to those who are absent, the acceptance of the
agency cannot be implied from the silence of the
agent, except (1) when the principal delivers his
power of attorney to the agent, who receives it
without any objection; or (2) when the principal
entrust to him by letter or telegram a power of
attorney in which he is habitually engaged as an
agent, and he did not reply to the letter or
Q: What are the cases where Special Power of
Attorney is Necessary? (PECWAM-LLBBOCARO)
A:
1.
To make such Payments as are not usually
considered as acts of administration;
2. To Effect novations which put an end to
obligations already in existence at the time
the agency was constituted;
3. To Compromise, to submit questions to
arbitration, to renounce the right to appeal
from a judgment, to waive objections to the
venue of an action or to abandon a
prescription already acquired;
4. To Waive any obligation gratuitously;
5. To Enter into any contract by which the
ownership of an immovable is transmitted or
acquired either gratuitously or for a valuable
consideration;
6. To Make gifts, except customary ones for
charity or those made to employees in the
business managed by the agent;
7. To Loan or borrow money, unless the latter
act be urgent and indispensable for the
preservation of the things which are under
administration;
8. To Lease any real property to another person
for more than one year;
9. To Bind the principal to render some service
without compensation;
10. To Bind the principal in a contract of
partnership;
11. To Obligate the principal as a guarantor or
surety;
12. To Create or convey real rights over
immovable property;
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13. To Accept or repudiate an inheritance;
14. To Ratify or recognize obligations contracted
before the agency;
15. Any Other act of strict dominion. (Civil Code,
Art. 1892)
Q: What are the requisites for Solidary
Liability of Principals?
Art. 1878)
Q: A executed an SPA authorizing his brother
Atty. B to sell the lots. Does this include the
authority to administer the property?
A:
1.
2.
3.
A:_ No. The power of administration does not
include acts of disposition or encumbrance, which
are acts of strict ownership. Art. 1877 of the NCC
provides that an authority to dispose cannot
proceed from an authority to administer, and vice
versa. Specifically, the apparent authority of Atty.
B, being a special agency, was limited to the sale
of the property in question, and did not include or
extend to the power to administer the property.
There are two (2) or more principals
The principals have all concurred in the
appointment of the same agent
The agent is appointed for a common
transaction or undertaking (Civil Code, Art.
1915)
Q: As an agent, A was given a guarantee
commission after he sold 20 units of
refrigerators to a customer. The customer
failed to pay, hence, the principal, B,
demanded from A the payment of the
customer’s account. Is the act proper?
(Aggabao v. Parulan, 2010)
Q: A borrowed money from C on behalf of B
without B’s knowledge. C sought to recover
from A, but to no avail. He thereafter sent
several demand letters to B asking for the
payment. B now contends that he should not
be held liable because there was no loan
between him and C since he did not give a
special power of attorney for the borrowing of
money. Is B correct?
A: Yes, Art. 1878 of the NCC provides that a
special power of attorney is necessary in order to
loan or borrow money, unless the latter act be
urgent and indispensable for the preservation of
the things which are under administration. Such
authorization, however, need not be in writing. As
long as the mandate is express, such authority
may be either oral or written. (Patrimonio v.
Gutierrez, 2014)
Q: A constituted B as his agent. Can B appoint
a substitute?
A: Yes, the Civil Code provides that if the
commission agent receives a guarantee
commission in addition to ordinary commission,
the agent bears the risk of collection and shall pay
the principal the proceeds of the sale on the terms
agreed upon with the purchaser. (Civil Code, Art.
1907)
Q: What is the rule when two persons contract
separately with Agent and Principal?
A: Two persons may contract separately with the
agent and the principal with regard to the same
thing. If the two contracts are incompatible with
each other, the one of prior date shall be
preferred. This is subject, however, to the rules
on Double Sales under Art. 1544 of the Civil Code
(i.e. for movables: first in possession, first in right;
for immovables: first to register in good faith, first
in right; absent any inscription: first in possession
or party who presents oldest title acquires
ownership). (Civil Code, A rt.1916)
Q: Who can be estopped to deny Agency?
A: Yes. The agent may appoint a substitute or
sub-agent if the principal has not prohibited him
from doing so, but he shall be responsible for the
acts of the substitute:
a. When he was not given the power to
appoint one;
b. When he was given such power, but
without designating the person, and the
person
appointed
was
notoriously
incompetent or insolvent. (Civil Code,
A:
t.
Estoppel of Agent - one professing to act as
agent is estopped to deny his agency both as
against his asserted principal and the third
persons interested in the transaction in which
he is engaged
2.
Estoppel by the Principal
i.
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As to agent - one knowing another is
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acting as his agent and fails to repudiate
his acts, or accept the benefits of them,
will be estopped to deny the agency as
against such other
As to sub-agent - for the principal to be
estopped from denying his liability to a
third person, he must have known or be
charged
with
knowledge
of
the
transaction and the terms of the
agreement between the agent and sub­
agent
As to third persons - one who knows that
another is acting as his agent or
permitted another to appear as his agent,
to the injury of third persons who have
dealt with the apparent agent as such in
good faith and in the exercise of
reasonable prudence, is estopped to
deny the agency (Litonjua, Jr. v. Etemit
ii.
iii.
Q: Can the heirs continue the agency?
A: General rule: Agency calls for personal
services on the part of the agent; personal rights
& obligations are not transmissible
Exceptions:
i.
ii.
Q: What are the exceptions to the
extinguishment of an agency upon loss or
destruction of the subject matter?
A:
i.
Corp., G.R. No 144805, 2006)
3.
4.
Estoppel of Third Persons having dealt with one as an
estopped to deny the agency
principal, agent or 3rd persons
a third person,
agent may be
as against the
in interest.
ii.
Estoppel of the Government - government
neither estopped by the mistake/error of its
agents; may be estopped through affirmative
acts of its officers acting within the scope of
their authority.
iii.
Q: When is a principal liable for damages
despite revocation of agency?
A:
1.
2.
If the agency was constituted for a fixed
period, the principal shall be liable for
damages occasioned by the wrongful
discharge of the agent before expiration
of the period fixed.
Even if there was no time fixed for the
continuance of the agency, but the
agency can prove that the principal acted
in bad faith by revoking the agency in
order to avoid the
payment of
commission about to be earned, the
principal can be held liable for damages.
Agency by operation of law, or a presumed
or tacit agency
Agency is coupled with an interest in the
subject matter of the agency (e.g. power of
sale in a mortgage). (Civil Code, Art. 1827)
If it is possible to substitute other material for
that which was destroyed without substantial
detriment to either party or if the destroyed
subject matter was not in fact essential to the
contract;
A partial loss or destruction does not always
result in a complete termination of the
agency, and under such circumstances,
while the agency may be ended in so far as
the destroyed property is concerned, it may
continue in existence as to other property not
affected
If the loss brought about by the principal (ex.
principal sells subject matter to another party
even if an agent has been constituted in
reference to it), principal liable for damages
for his wrongful terminating act; if subject
matter is lost without principal’s fault, no
liability assumed by him
Q: May the agency be extinguished at will?
A: Agent may do so but subject to the contractual
obligations owing to the principal (i.e. fixed period
of time for the agency or purpose not yet
accomplished).
(VILLANUEVA supra at 209-210 (citing
Dialosa v. CA, 130 SCRA 350 (1984) &
Valenzuela v. CA 191 SCRA 1 (1990))).
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X. CREDIT TRANSACTIONS
[
A. LOAN
Q: What are the 2 kinds of a loan?
A: The two kinds of a loan are:
(a) Commodatum - bailor delivers to bailee a
non-consumable thing so that the latter may
use it for a certain time and return the
identical thing
(b) Mutuum or Simple Loan - lender delivers to
the borrower money or other consumable
thing upon the condition that the latter will pay
the same amount of the same kind and
quality
Q: Distinguish Commodatum from Mutuum.
A:
COMMODATUM
Ordinarily
not
consumable
MUTUUM
Money
or
other
consumable thing
Exception:
Consumable
goods
may be the subject of
commodatum if the
purpose
of
the
contract is not the
consumption of the
object, as when it is
merely for exhibition
(Art. 1936).
Ownership is retained
by the lender
Ownership
transferred
is
to
the
borrower
Essentially gratuitous
Gratuitous
or
onerous, that is with
stipulation
to
pay
interest
Borrower must return
the same thing loaned
Borrower need only
pay
or
return
a
consumable thing of
the same amount of
the same kind and
quality
Only
personal
property
May involve real or
personal property
Loan for
temporary
possession
use
or
Loan for consumption
Bailor may demand
the return of the thing
loaned before the
expiration of the term
in case of urgent need
or
if the
bailee
commits
acts
of
ingratitude
NOTE: In case of
temporary use by the
bailor, the contract of
commodatum
is
suspended while the
thing
is
in
the
possession of the
bailor (Art. 1946 (2)).
Loss of the subject
matter by a fortuitous
event is suffered by
the bailor since he is
theowner
Lender
may
not
demand
its return
before the lapse of the
term agreed upon
except under Article
1198 when the debtor
loses the right to
make use of the
period
Purely personal
(1) The
death
of
either the bailor or
the
bailee
extinguishes the
contract;
(2) The bailee can
neither lend nor
lease the object of
the contract to
third
person.
However,
the
members of the
bailee’s
household
may
make use of the
thing
loaned,
unless there is a
stipulation to the
contrary,
or
unless the nature
of the ting forbids
such use. (Art.
1939)
In other words, the
lender
takes
into
account
the
Page 96 of 120
Borrower suffers the
loss even if caused
exclusively
by
a
fortuitous event and
he is not therefore
discharged from his
duty to pay
Not purely personal
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2. When an obligation, NOT constituting
a loan or forbearance of money, is breached, an
interest on the amount of damages awarded may
be imposed at the discretion o f the court, at the
rate of 6% per annum.
No interest, however, shall be adjudged on
unliquidated claims or damages except when or
until the demand can be established with
character, credit, and
conduct
of
the
borrower
before
lending the property.
(De Leon, 2016)
|
_______ _
Q: What is the legal interest rate?
A: Beginning July 1, 2013, the rate of interest on
the loan or forbearance on money, goods, or
credits and the rate allowed in judgments, in the
absence of stipulation, shall be 6% per annum
(BSP Circular No. 799).
However, judgments that became final and
executory before July 1, 2013 snail continue to
apply the previous legal rate of 12% per annum
(NACAR v. Gallery Frames Inc.,
189871, 2013).
G.R. No.
Q: What are the rules in the computation of
legal interest?
A: The Supreme Court, applying BSP Circular
799 summarized the new rules in NACAR v.
Gallery Frames, G.R. No. 189871, 2013 in
computing legal interest:
i. When an obligation, regardless of its
source, (i.e., law, contracts, quasi-contracts,
delicts or quasi-delicts) is breached, the
contravenor can be held liable for damages. The
provisions under Title XVIII on "Damages" of the
Civil Code govern in determining the measure of
recoverable damages.
II. For the award of interest in the concept of
actual and compensatory damages, the rate of
interest, as well as the accrual thereof,
imposed, as follows:
is
1. Breach of obligation consisting of the
payment of a sum of money, (i.e., a loan or
forbearance of money), the interest due:
reasonable certainty.
Where the demand is established with
reasonable certainty, the interest shall begin to
run from the time the claim is made judicially or
extrajudicially.
But when such certainty cannot be so reasonably
established at the time the demand is made, the
interest shall begin to run only from the date the
judgment of.the court is made (at which time the
quantification of damages may be deemed to
have been reasonably ascertained). The actual
base for the computation of legal interest shall, in
any case, be on the amount finally adjudged.
Forbearance of money, goods, or credit refers to
arrangements other than loan agreements where
a person acquiesces to the temporary use of his
money, goods or credits pending the happening
of certain events or fulfillment of certain
conditions such that if these conditions are
breached, the said person is entitled not only to
the return of the principal amount given, but also
to compensation for the use of his money
equivalent to the legal interest since the use or
deprivation of funds is akin to a loan. In a case,
SC held that the liability of the debtor is not in the
nature of a forbearance of money as it does not
involve the temporary use of money, goods or
credits, but rather the performance of a particular
service, i.e., the performance of additional works
consisting of site development, additional
structural, architectural, plumbing, and electrical
works Therefore, the rate of legal interest
imposable is 6% per annum (WT Construction,
Inc. V. Province of Cebu G.R. No. 208984, 2015)
General Rule: Interest that is stipulated in
writing.
Exception: No stipulation - 6% per annum to be
computed from default (i.e., from judicial or
extrajudicial demand)
The interest due shall itself earn legal interest
from the time it is judicially demanded.
3. When the judgment of the court
awarding a sum of money becomes final and
executory, the rate of legal interest, whether the
case falls under a forbearance or non­
forbearance of money, the rate shall be 6% per
annum from such finality until its satisfaction, this
interim period being deemed to be by then an
equivalent to a forbearance of credit.
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writing
Q: Spouses X owes Z back rentals. Z demands
the settlement of the outstanding obligation
and interest on the delayed payments. Can Z
properly demand monetary interest on
delayed rental payments?
A: No, Z cannot demand monetary interest on the
delayed rental payments. Back rentals are
equivalent to a loan or forbearance of money. In
the absence of stipulation as to interest, Z is
entitled to legal interest only at 12% per annum
(now 6% per annum) collected from the time of
extrajudicial demand. (Sps. Castro v. Palenzuela,
(Art.
the contrary, shall be the
payment of the interest
agreed upon, and in the
absence of stipulation, the
legal interest, which is 6%
p.a. (Art. 2209)
Interest due shall earn legal
interest from the time it is
judicially
demanded,
although the obligation may
be silent upon this point.
________________ (Art. 2212)________________
1956).
(Siga-anv. Villanueva, 596 Phil. 760, 769(2009))
B. DEPOSIT
G.R. No. 184698, January 21, 2013)
Q: May one party to the contract of loan
unilaterally increase the interest rate?
A: No. To be valid, any change of interest must
be mutually agreed upon by the parties (Dizon v.
Magsaysay, G.R. No. L-23399, 1974)
Q: Must the manner of compounding the
interest also be in writing?
A: In a loan agreement, compounding of interest
has to be in writing to be valid. Payment of
monetary interest shall be due only if: (1) there
was an express stipulation for the payment of
interest; and (2) the agreement for such payment
was in writing. The first requirement does not only
entail reducing in writing the interest rate to be
earned but also the manner of earning the same,
if it is to be compounded. (Albos v. Embisan, G.R.
No. 210831, 2014)
Q: Differentiate monetary and compensatory
interest.
A:
MONETARY
INTEREST
COMPENSATORY
INTEREST
Compensation
fixed
by the
parties for the
use
or
forbearance of
money.
No interest shall
be due unless it
has
been
expressly
stipulated
in
Interest imposed by law or
by courts as penalty or
indemnity for damages for
breach
of
contractual
obligations.
Q: What is a contract of deposit?
A: It is constituted from the moment a person
receives a thing belonging to another, with the
obligation of safely keeping :t and of returning the
same (Art. 1962).
NOTE: Safekeeping must be the principal
purpose of the contract. Otherwise, it is not a
deposit:
Q: What are the kinds of deposit?
A:
1. Judicial - when an attachment or seizure of
property in litigation is ordered
2. Extrajudicial (Art. 1967)
a. Voluntary - delivery is made by the will
of the depositor or by two or more
persons each of whom believes himself
entitled to the thing deposited
b. Necessary - made in compliance with a
legal obligation, or on the occasion of any
calamity, or by travelers in hotels and
inns or by travelers with common
carriers. There is lack of free choice in the
depositor.
Q: When is a deposit necessary? (PLCT).
A:
1.
2.
If the obligation consists in
the payment of money, and
the debtor incurs delay, the
indemnity
of damages,
there being no stipulation to
It is made in compliance with a Legal
obligation
It takes place on the occasion of any
Calamity, such as fire, storm, flood, pillage,
shipwreck, or other similar events
•
There must be a causal relation between
the calamity and the constitution of the
deposit.
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3.
4.
Made by Passengers with common carriers
•
As to baggage the passengers or their
agents carry (i.e., hand-carried luggage)
Made by Travelers in hotels or inns (Art.
Does
not
contract
Before keepers of hotels or inns may be
held responsible as depositaries with
regard to the effects of their guests, the
following must concur:
1. They have been previously
informed about the effects
brought by the guests; and
2. The latter have taken the
precautions
prescribed
regarding their safekeeping.
C. GUARANTY AND SURETYSHIP
Q: Distinguish Guaranty From Suretyship
the
creditor
without qualification
pay, but simply that
he is able to do so
if the principal debtor
does not pay. Hence,
the responsibility or
obligation
assumed
by the surety is
greater
or
more
onerous than that of a
guarantor
Surety cannot avail
the
benefit
of
excussion
and
division.
1998)
•
Pay
that the principal will
Guarantor can avail of
the
benefit
of
excussion
and
division in case the
creditor
proceeds
against him.
Not bound to take
notice of the non­
performance of the
principle
Held to know every
default
of
the
principal.
A:
GUARANTY
SURETYSHIP
Liability
depends
upon an independent
agreement to pay the
obligation
if
the
Assumes liability as a
regular party to the
undertaking
Q: What is a double or sub-guaranty?
2051(2))
principal debtor fails
to do so
Engagement
is
a
collateral undertaking
Charged
as
original promisor
Secondarily liable -
Primarily
he contracts to pay if,
by the use of due
diligence, the debt
cannot be paid
undertakes directly for
the payment without
reference
to
the
solvency
of
the
principal, and is so
responsible at once
the
latter
makes
default, without any
demand
by
the
creditor
upon
the
principal whatsoever
or any notice of
default
Undertakes to pay if
the principal does not
pay, without regard to
his ability to do so
Insurer of the debt
Only binds himself to
pay if the principal
cannot or is unable to
pay
Insurer
of
the
solvency
of
the
debtor
A: It is one constituted to guarantee the obligation
of a guarantor. It should not be confounded with
guaranty wherein several guarantors concur. (Art.
liable
an
-
D. PLEDGE. MORTGAGE AND ANTICHRESIS.
CHATTEL MORTGAGE
PROVISIONS COMMON TO PLEDGE AND
MORTGAGE (Arts. 2085-2123)
Q: What are the essential requisites common
to Contracts of Pledge and Mortgage?
(FARVAS)
A: The essential requisites common to pledge
and mortgage are the following:
1. Constituted to Secure the fulfillment of a
principal obligation;
2. Pledgor or mortgagor be the Absolute owner
of the thing pledged or mortgaged;
NOTE: Before partition of estate, each heir
only has an undivided interest in the estate
and in each specific piece of property in the
estate. Any mortgage on said property
undertaken by an heir is valid, but only up the
portion that may be allotted in partition to the
heir (Rural Bank of Cabadbaran, Inc. v.
Melencio-Yap,
Page 99 of 120
G.R.
No.
178451,
2014,
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3.
4.
5.
6.
reiterated in Magsano v. Pangasinan Savinas
and Loan Bank'G.R. No. 215038, 2016) ~
5.
6.
Payment of the debt.
Sale of the thing pledged at public Auction.
The persons constituting the pledge or
mortgage have the Free disposal of their
property, and in the absence thereof, that
they be legally authorized for the purpose;
Cannot exist without a Valid obligation;
Debtor Retains the ownership of the thing
given as a security; and
When the principal obligation becomes due,
the thing in which the pledge or mortgage
consists may be Alienated for the payment to
the creditor.
Q: What are the effects of the sale of the thing
pledged at a public auction?
A: The sale extinguishes the principal obligation
whether the price of the sale is more ,or less than
the amount due. If the price is more than amount
due, the debtor is not entitled tothe excess unless
the contrary is provided. If the price of the sale is
less, neither is the creditor entitled to recover the
deficiency; a contrary stipulation is void.
REAL ESTATE MORTGAGE
Q: What is Pactum Com m issorium ?
A: It is a stipulation in a contract of pledge or
mortgage for an automatic appropriation by the
creditor of the property in the event of
nonpayment of the debt within the fixed term.
(Pen v. Julian, G.R. No. 160208, January 11,
2016) This stipulation is void because ownership
of the security passes to the creditor by mere
default of the debtor. (Solitarios v. Jaque, G.R.
No. 199852, 2014)
PLEDGE
2.
3.
4.
A: A mortgagee is considered in good faith when
he relies upon what appears on the face of a
Torrens title and lends money in all good faith on
the basis of the title in the name of the mortgagor,
only thereafter to learn that the latter’s title was
defective. His or her right or lien upon the land
mortgaged must be respected and protected.
(Mahinay vs. Gako, Jr., G.R. Nos. 165338 &
179375,2011)
Q: What are the modes of extinguishing a
contract of pledge? (RAP-TAP)
A:
1.
Q: How can a mortgagee be in good faith, and
thus have his right or lien upon the land
mortgaged respected and protected?
If the thing pledged is Returned by the
pledgee to the pledgor or owner, pledge is
extinguished,
A statement in writing by the pledgee that he
renounces or Abandons the pledge is
sufficient to extinguish it. For this purpose,
neither the acceptance by the pledgor or
owner, nor the return of the thing pledged is
necessary,
the pledgee
becoming
a
depositary.
If subsequent to the perfection of the pledge,
the thing is in the Possession of the pledgor
or owner
NOTE: Only a prim a facie presumption
that the thing has been returned by the
pledgee.
If the thing is in the possession of Third
person who has received it from the pledgor
or owner after the constitution of the pledge,
there is prima facie presumption that the thing
has been returned by the pledge.
However, a bank whose business is impressed
with public interest is expected to exercise more
care and prudence in its dealings than a private
individual, even in cases involving registered
lands. A bank cannot assume that it is relieved of
the responsibility of taking further steps to verify
the title and inspect the properties to be
mortgaged.
In Armando V. Alano v. Planter's Development
Bank, G.R. No. 171623, June 13, 2011, the SC
ruled that the Bank was not a mortgagee in good
faith because the credit investigator oniy checked
the finishing of the house and the number of
bedrooms and CR in the house, but did not
ascertain whether the property was occupied by
other persons other than the mortgagor.
BUT: SC has held in a case that while the bank
failed to exercise greater care in conducting the
ocular inspection of the properties offered for
mortgage, its omission did not prejudice any
innocent third parties because the cause of the
mortgagors’ defective title was the simulated sale
Page 100 of 120
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between the buyer/mortgagor and seller (the
latter questioning the validity of the mortgage).
Thus, no amount of diligence in the conduct of the
ocular inspection could have led to the discovery
of the complicity between the ostensible
mortgagors/buyer and the true owners/seller. In
fine, the bank can hardly be deemed negligent.
Thus, the bank was considered as a mortgagee
in good faith (Philippine Banking Corporation v.
Dy, G.R. No. 183774, 2012)
ANTICHRESIS
Q: What is antichresis?
A: It is a contract whereby the creditor acquires
the right to receive the fruits of an immovable of
the debtor, with the obligation to apply them to the
payment of the interest, if owing, and thereafter to
the principal of the credit. (Art. 2132)
CHATTEL MORTGAGE
Q: What is a dragnet clause? Is it valid?
A: Otherwise known as a “blanket mortgage
clause”, it is a provision in a contract which makes
the security subject of the contract answerable for
debts existing at the time the contract of security
was executed and for future debts. It is valid, and
is in the nature of a continuing guaranty and
constitutes an exception to the rule that an action
to foreclose a mortgage must be limited to the
amount mentioned in the mortgage contract.
Q: When does a mortgage have a right of to
recover deficiency?
A:
1.
(PCSO vs. New Dagupan Metro Gas Corp., G.R.
No. 173171, 2012)
A:
Individual
debtors /
mortgagors
Juridical
persons as
debtors /
mortgagors
D
C D in n
rCKlUU
Individual
debtors /
mortgagors
Juridical
persons as
debtors /
mortgagors
JUDICIAL
|
Non-Bank
Banks
1 year from
registration of
sale
X [equity of
redemption
onlyl
1 year from
registration of
sale
X [equity of
redemption
only]
thing sold, if one has been constituted,
should the vendee’s failure to pay cover
two or more installments. In this case, he
shall have no further action against the
purchaser to recover any unpaid balance
of the price. Any agreement to the
contrary shall be void.
EXTRAJUDICIAL
|
Non-Bank
Banks
1 year from
registration of
sale
Until
registration of
certificate of
sale OR within
3 months from
sale
whichever is
EARLIER
the mortgage foreclosed, the
creditor may maintain action for deficiency
(although the Chattel Mortgage Law is silent
on this point) because the chattel mortgage is
only given as a security and not as payment
of the debt.
Exception: Recto Law (Art. 1484) which
states:
In a contract of sale of personal property the
price of which is payable in installments, the
vendor may exercise any of the following
remedies:
(1) Exact fulfillment of the obligation, should
the vendee fail to pay;
(2) Cancel the sale, should the vendee's
failure to pay cover two or more installments;
(3) Foreclose the chattel mortgage on the
Q: Until when may the mortgagor redeem his
foreclosed property?
D iur iun Q
rDcPm
o
Where
The preceding article shall be applied to
contracts purporting to be leases of personal
property with option to buy, when the lessor
has deprived the lessee of the possession or
enjoyment of the thing. (Art. 1485)
1 yrfrom
registration
of sale
2.
1 year from
registration
of sale
Where the mortgage is constituted as
security for purchase of personal property
payable in installments, no deficiency
judgment can be asked and any contrary
agreement shall be void.
3.
Where
mortgaged
subsequently attached
Page 101 of 120
property
and sold,
is
the
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mortgagee is entitled to deficiency judgment
in an action for collection.
XI. LAND TITLES AND DEEDS
j
A. TORRENS SYSTEM: GENERAL PRINCIPLES
E. QUASI-CONTRACTS
Q: What is the principle of solutio indebiti?
A: It provides that if something is received when
there is no right to demand it, and it was unduly
delivered through mistake, the obligation to return
it arises.
Q: What is negotiorum gestio?
A: One who voluntarily takes charge of the
agency/management of the business or property
of another (without any power from the latter), is
obliged to continue such agency or management
until:
1. The termination of the affair or its incidents;
or
2. He has required the person concerned to
substitute him (if the owner is in a position to
do so).
F. CONCURENCE AND PREFERENCE OF
CREDITS
Q: Under the Financial Rehabilitation Act of
2010 (FRIA), how are the assets of an
insolvent debtor divided among its creditors?
A: As a general rule, the assets of the insolvent
debtor shall be divided among the creditors in
accordance with the Liquidation Plan submitted
by the Liquidator and approved by the Court. The
rules on concurrence and preference of credits
under the NCC and other relevant laws shall be
observed
in
the
Liquidation
Plan.
Exception: Unless a preferred creditor voluntarily
waives his preferred right. (R.A. No. 10142, Sec.
133).
j
Q: What are some of the purposes of land
registration under the Torren System?
A:
•
To quiet title to the land and to stop
forever any question as to the legality of
said title, except claims which were noted
at the time of registration, in the
certificate,
or
which
may
arise
subsequent thereto
•
To avoid possible conflicts of title to real
property
•
To facilitate transactions relative thereto
by giving the public the right to rely upon
the face of a Torrens certificate of title
and to dispense with the need of inquiring
further
The purpose of land registration is not the
acquisition of lands but only the registration of title
which the applicant already possessed over the
land. (Republic v. CA, G.R. Nos. L-43105. L-
43190, August 31, 1984)
Q: X's predecessors-in-interest had been in
open, peaceful, exclusive, and uninterrupted
possession and occupation in the concept of
owners of a parcel of land before 1945. The
land was classified and declared alienable
and disposable in 2001. X filed his petition for
registration of title in 2016. The OSG opposed
saying that the land should have been
declared as such as early as June 12,1945. Is
the OSG correct?
A: No. The law imposes no requirement that land
should have been declared alienable and
disposable land since June 12, 1945 or earlier.
What is important in computing the period of
possession is that the land has already been
declared alienable and disposable at the time of
application for registration. Upon satisfaction of
this requirement, computation of the period may
include the period of adverse possession prior to
the declaration that the land is alienable and
disposable. (AFP Retirement and Separation
Benefits System vs. Republic, G.R. No. 180086,
2014)
Q: X is the registered owner named in the
Torrens certificate of title over a parcel of
Page 102 of 120
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land. Y has registered interest, lien or
encumbrance annotated on the additional
sheet of the said certificate of title of X. In case
that additional sheet is destroyed or missing,
may Y file a petition for reconstitution of the
certificate of title of X?
A: Yes. Under Sec. 11 of R.A. No. 26, a petition
for reconstitution of registered interests, liens and
other encumbrances may be filed when the
certificate of title affected has not been totally
destroyed, that is, when the certificate of title is
composed of more than one sheet and only the
portion of the additional sheet, on which such
interest, lien or encumbrance was noted is
missing. (Ungay Malobago v. Republic, G.R. No.
Q: What are the classifications of Public
Domain? Who classifies them?
A: Under the Constitution,.these are:
1. Agricultural;
2. Forest or timber;
3. Mineral lands; and
4. National parks. (Sec. 3, Art. XII, 1987
Constitution)
The classification of public lands is an exclusive
prerogative of the Executive Department and not
of the courts. ' In the absence of such
classification, the land remains as unclassified
land until it is released therefrom and rendered
open to disposition. (Dir. O f Lands v. CA, 129
SCRA 689, 1984)
187892, 2015)
B. ORIGINAL REGISTRATION
Q: How must the alienability and disposability
of the subject land be proven?
Q: What are the non-registrable properties?
A:
'
1.
Properties of public dominion (Art. 420,
Civil Code);
2. Forest or timberland, public forest, forest
reserves,
mineral
lands
(1987
Constitution);
3. Foreshore land and seashore;
4. Mangrove swamps
5. Military reservations
6. Other kinds of reservations (i.e.,
reservations for specific purposes made
by executive proclamation)
7. Navigable rivers, streams, and creeks;
8. Lakes and bays
9. Watersheds
10. Grazing lands;
11. Previously titled land;
12. Man-made alluvial deposit along river
Q: What is the significance of the Regalian
Doctrine in original land registration?
A: To overcome the presumption that land sought
to be registered forms part of the public domain,
incontrovertible evidence must be established
that the land subject of the application is alienable
or disposable. A positive act of the government is
needed to declassify land which is classified as
forest and convert it into alienable and disposable
land for agricultural or other purposes. (Yu Chang
A: Applicant must submit BOTH these
requirements:
a. Certification from City Environment and
Natural Resources Office (CENRO) or
Provincial Environment and Natural
Resources Office (PENRO)
i.
If land is less than 50 hectares -
CENRO Certification
If land is 50 hectares or more PENRO Certification; and
ii.
b.
Copy of the original classification of land
as alienable and disposable approved by
the DENR Secretary and certified as a
true copy by the legal custodial of the
official
records.
(Republic of the
Philippines v. Santos, G.R. No. 191516,
June 4, 2014)
A
surveyor-geodetic
engineer’s
notation
indicating that “the survey was inside alienable
and disposable land” is not enough to prove that
the land subject of an application for registration
is alienable and disposable (Republic vs. De
Guzman Vda. de Joson, G.R. No. 163767, Mar.
10, 2014).
Q: Who may apply for ordinary registration of
title to land?
A: (OPAL)
1.
v. Republic, G.R. No. 171726, 2011)
Page 103 of 120
Those who by themselves or through
their predecessors-in-interest have been
in Open, continuous, exclusive and
notorious (OCEN) possession and
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2.
3.
4.
occupation of alienable and disposable
lands of the public domain under a bona
fide claim of ownership since June 12,
1945, or earlier.
Those who have acquired ownership of
private lands by Prescription under the
provision of existing laws.
Those who have acquired ownership of
private lands or abandoned river beds by
right of Accession or accretion under the
existing laws.
Those who have acquired ownership of
land in any other manner provided for by
Law (P.D. 1529, Sec. 14).
Q: What is the procedure in ordinary land
registration proceedings under P.D. 1529 and
C.A. 141?
A:
1.
2.
3.
4.
Q: What are the limitations to ownership of
land by individuals? By corporations?
5.
A: Only Filipino citizens may acquire land not
more than 12 hectares and may lease not more
than 500 hectares of alienable lands of the public
domain. Foreign and Filipino corporations
(corporations at least 60% of whose capital is
owned by Filipino citizens) may only lease
alienable land of the public domain not exceeding
1,000 hectares, for 25 years and renewable for
not more than 25 years (Sec. 3, Art. XII, 1987
Constitution). Private lands may be transferred
or conveyed oniy to individuals, corporations, or
associations qualified to acquire or hold lands of
the public domain (Sec. 7, Art. XII, 1987
6.
7.
8.
9.
10.
11.
12.
Constitution).
Exceptions:
When the land has been previously
acquired by prescription by a natural
person (and thus already private land)
and subsequently transferred to a
juridical
entity, the constitutional
prohibition against acquisitions by a
private corporation would not apply. In
this case, a corporation may apply for
judicial confirmation of title (Dir. of Lands
v. IAC and ACME, G.R. No. 73002,
1986).
In cases of hereditary succession,
private lands may be transferred
conveyed to aliens, corporations,
associations not qualified to acquire
hold lands of the public domain (Sec.
13.
Survey of land; survey plan must be duly
approved by the Director of Lands
Filing of application for registration by the
applicant together with all muniments of
title and the approved survey plan
Setting of the date of the initial hearing of
the application which shail be held 45-90
days from the date of order
Transmittal of application and documents
by the Clerk of Court to the LRA
Publication of notice of initial hearing
(mandatory)
a. Once in the Official Gazette
b. Once in a newspaper of general
circulation
Mailing and posting of notice of initial
hearing
Filing of answer or opposition to the
application by any person
Hearing of the case by the court
Promulgation of judgment
Issuance of the order of finality of
judgment
Entry of the decree of registration in the
LRA
Sending of the original and owner’s
duplicate OCT to the ROD of the
city/province where the property is
situated
Entry of OCT by the ROD in the
Electronic Primary Entry Book for
Registered Land and delivery of owner’s
duplicate OCT to the applicant upon
payment of the prescribed fees.
Q: What must an applicant in land registration
proceedings prove and submit as evidence
therefor?
A:
a.
or
or
or
Alienability and disposability of land
i.
CENRO/PENRO
Certification
and
ii.
7,
Art. XII, 1987 Constitution)
Copy of the original classification
of land as alienable and
disposable approved by the
DENR Sec.
b. Identity of land
i.
P age 104 o f 120
Survey
plan,
technical
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description of
declarations
c.
land,
tax
Private ownership
i.
ii.
iii.
d.
the
Tax declarations (Note: not
conclusive
evidence
of
ownership; must be coupled with
proof of actual possession)
Presidential
issuances
and
legislative acts
Other kinds of proof (e.g.,
testimonial evidence, photos of
improvements introduced)
Open, exclusive,
continuous, and
peaceful possession in the concept of
owner
i.
ii.
iii.
Tax declaration
Regular realty tax payments
Muniments of title (e.g., deeds of
sale, wills, donation; to tack
possession
to
that
of
predecessors-in-interest)
iv.
Other kinds of proof (e.g.,
testimonial evidence, photos of
improvements introduced)
The payment of realty taxes and declaration of
the subject land in the name of the applicant for a
certain year gives rise to the presumption that he
claimed ownership and possession thereof oniy
in that year. (Republic v. Science Park o f the
A: It is the decree issued by the LRA pursuant to
the order of the court (Sec. 31, P.D. 1529). One
year after the date of entry of decree, it becomes
incontrovertible and amendments will not be
allowed except for correcting clerical errors. It is
deemed conclusive upon and against all persons,
whether or not mentioned by name in the
application or notice.
Q: What is the consequence if it is shown that
the decree of registration had included lands
not included in the original application as
published?
A: The registration proceedings are null and void
insofar as the land not included in the publication
is concerned. (Benin v.Tuason, G.R. No. L-
26127, June 28, 1974)
Q: Is republication required if the land subject
of a petition for registration of title was
reduced in area due to a discrepancy in the
technical description?
A: No. Amendments in a petition that do not
involve an addition but only a reduction of the
original area that was published no longer require
a republication because the amended area was
already included in the first publication (Republic
Philippines, G.R. No. 237714, Nov. 12, 2018)
v. San Mateo, et al., G.R. No. 20356, 2014).
Q: Can an applicant for original registration
engage in dealings over said land during the
pendency of the registration proceedings?
Q: What remedy can be availed of in cases of
actual fraud committed in the adjudication or
confirmation of title? What are the requisites
to avail of the same?
A: Yes. After the filing of the application and
before the issuance of the decree of registration,
the land therein described may still be the subject
of dealings in whole or in part, in which case the
interested party shall present to the court the
pertinent instruments together with a subdivision
plan approved by the Director of Lands in case of
transfer of portions thereof and the court, after
notice to the parties, shall order such land
registered subject to the conveyance or
encumbrance created by said instruments, or
order that the decree of registration be issued in
the name of the person to whom the property has
been conveyed by said instruments. (Sec. 22,
P.D. 1529)
Q: What is the decree of registration and what
is the effect of its entry in the LRA?
A: A petition for review of the decree of
registration may be filed by any aggrieved party,
including persons deprived of the opportunity to
be heard, including the government. Such party
does not need to be an oppositor or original
claimant in the proceedings (Sec. 32, P.D. 1529).
This remedy, however, is not available to an
oppositor who abandoned his claim and oppositor
who had notice of the proceedings but failed to
raise his claims (Crisolo v. CA, G.R. No. L-33093,
1975).
Requisites: (InFA-ReD)
1.
2.
3.
Page 105 of 120
The property has not yet passed to an
Innocent purchaser for value;
Petition is Filed within 1 year from entry
of the decree;
There was Actual or extrinsic fraud;
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.4.
5.
Petitioner has a Real and dominical right;
Be was Deprived thereof; (Walstrom v.
Mapa, 181 SCRA 431, 1990)
Q: What are the other grounds for a review of
the decree of registration?
keeping him away from court, a false promise of
a compromise; or where the defendant never had
knowledge of the suit, being kept in ignorance by
the acts of the plaintiff; or when an attorney
fraudulently or without authority connives at his
defeat. (Baclaran Marketing Corp. v. Nieva, G.R.
No. 189881, 2017)
A:
a.
b.
Fatal infirmity of the decision for want of
due process
Lack of jurisdiction of the court
Q: Who is an “innocent purchaser for value”?
A: One who buys property of another, without
notice that some other person has a right to or
interest in such property and pays a full and fair
price for the same, at the time of such purchase
or before he has notice of the claims or interest of
some other person in the property. (Sps. Villamif
v. Villarosa, G.R. No. 177187, 2009).
The same includes an innocent lessee,
mortgagee, or other encumbrancer for value
(Sec. 32, P.D. 1529).
Intrinsic fraud refers to the acts of a party at a
trial that prevented a fair and just determination of
the case, but the difference is that the acts or
things, iike falsification and false testimony, couid
have been litigated and determined at the trial or
adjudication of the case. (Pinausukan Seafood
House v. Far East Bank & Trust Co., G.R. No.
159926, 2014)
C. CERTIFICATE OF TITLE
Q: What are the attributes of an original
Torrens certificate of title?
A: (FINIP)
1. Free from liens and encumbrances
Exceptions; (C-U-PAL)
One is considered a buyer in bad faith not only
when he purchases real estate with knowledge of
a defect or lack of title in his seller but also when
he has knowledge of facts which should have
alerted him to conduct further inquiry or
investigation. (Krystle Realty Development Corp.
v. Alibin, G.R. Nos. 196117 & G.R. No. 196129,
2014)
a.
b.
c.
One asserting the status of a buyer in good faith
and for value, it had the burden of proving such
status, which goes beyond a mere invocation of
the ordinary presumption of good faith. (Krystle,
G.R. Nos. 196117 & G.R. No. 196129, 2014)
Where the land sold is in the possession of a
person other than the vendor, the purchaser must
d.
go beyond the certificate of title and make
inquiries concerning the actual possessor.
(Magsano v. Pangasinan Savings and Loan
Bank, Inc., G.R. No. 215038, 2016)
e.
Q: What is the difference between actual or
extrinsic fraud and intrinsic fraud?
A: Extrinsic fraud refers to a fraud committed to
the unsuccessful party by his opponent,
preventing him from fully exhibiting his case by
Page 106 of 120
Those noted on the Certificate
Unpaid real estate taxes levied
and assessed within 2 years
immediately
preceding
the
acquisition of any right over the
land by an innocent purchaser
for value
Any Public highway, or private
way established or recognized
by law, or any government
irrigation, canal or lateral thereof,
if the certificate of title does not
state the boundaries of such
highway or irrigation canal or
lateral
thereof
has
been
determined
Any disposition of the property or
limitation on the issue thereof
pursuant to PD 27 or any other
laws or regulations on Agrarian
reform
Liens, claims, or rights arising or
existing under the Laws and the
Constitution, which are not by
law required to appear on record
in the Register of Deeds in order
to be valid
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2. incontrovertible and indefeasible - Upon
the expiration of 1 year from and after the
entry of the decree of registration in the
LRA
Exceptions: (PUF)
a.
b.
c.
If Previous valid title of the same
land exists
When
land
covered
is
Unregistrable
When acquisition of certificate is
attended by Fraud
3. Not subject to collateral attack - It cannot
be altered, modified, or cancelled except in
a direct proceeding in accordance with the
law. An action is an attack on a title when
the object of the action is to nullify the title,
and thus challenge the judgment or
proceeding pursuant to which the title was
decreed.
•
Direct attack - when the object of
an action is to annul or set aside
such judgment or enjoin its
enforcement.
•
Indirect or collateral attack when, in an action to obtain a
different relief, an attack on the
judgment or proceeding
is
nevertheless
made
as
an
incident thereof. (Sampaco v.
possibility that the real property may be under coownership with' persons not named in the
certificate or that the registrant may only be a
trustee or that other parties may have acquired
interest subsequent to the issuance of the
certificate of title. (Go v. Estate of De
Buenaventura, G.R. Nos. 211972 & 212045,
2015)
Q: Does a certificate of title confer ownership
over the property described therein?
A: No. Registration under the Torrens system, not
being a mode of acquiring ownership, does not
create or vest title. The Torrens certificate of title
is merely an evidence of ownership or title in the
particular property described therein. (Casimiro
Development Corporation vs. Mateo, G.R. No.
175485, July 27, 2011)
Q: What is the rule where two transfer
certificates of title have been issued on
different dates?
A: The one who holds the earlier title prevails.
This rule, however, may apply only in the absence
of any anomaly or irregularity in the process of its
registration. (Bangis v. Heirs o f Adolfo, G.R. No.
190875, 2012)
D. SUBSEQUENT REGISTRATION
Lantud, G.R. No. 163551, 2011).
4. Imprescriptible - No title to registered land
in derogation of that of the registered owner
shall be acquired through prescription.
1. VOLUNTARY DEALINGS
Q: Generally, what is the
registering voluntary dealings?
process
of
5. Presumed valid and devoid of flaws - A
Torrens certificate of title is presumed to
have been regularly issued, valid, and
without defects; a buyer has the right to rely
upon the face of the same and to dispense
with the trouble of inquiring further
Exception: When he has actual
knowledge of facts and circumstances
that would impel a reasonably cautious
man to make inquiry
NOTE: The prohibition against collateral attack
does not apply to spurious or non-existent titles,
which are not accorded indefeasibility. (Bangis v.
A:
1.
2.
3.
4.
Heirs of Adolfo, G.R. No. 190875, 2012)
5.
The mere issuance of the certificate of title in the
name of any person does not foreclose the
Page 107 of 120
Execution of instrument in a form
sufficient in law. It must contain the
names, nationalities, residence, and
postal address of the grantees or others
acquiring
an
interest
under
the
instrument. (Sec. 55, P.D. 1529)
Presentation of the following to the ROD:
a. Owner’s duplicate certificate
b. Instrument
Payment of registration fees and
documentary stamp taxes
The
ROD
makes
and
signs
a
memorandum on the certificate of title
The ROD issues a Transfer Certificate of
Title (if the instrument involves a transfer
of the title to the land)
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Q: What are the instances when the ROD may
validly deny registration of a voluntary
instrument?
A:
Where there is more than 1 copy of the
owner’s duplicate certificate of title and
not all such copies are presented to the
ROD.;
Where the voluntary instrument bears on
its face an infirmity (e.g., where the
property is presumed to be conjugal but
the instrument of conveyance bears the
signature of only one spouse);
Where the validity of the instrument
sought to be registered is in issue in a
pending court suit, notice of which must
be given to parties;
Where required certificates or documents
such as DAR clearance, copy of latest tax
declaration, are not submitted. (Balbin v.
ROD, G.R. No. L-20611, 1969)
The ROD may also refuse to register a
private document since Section 112 of
P.D. 1529 provided that deeds of
conveyances affecting lands should be
verified and acknowledged before a
notary public or other public officer
authorized
by
iaw
to
take
acknowledgement. ( Gallardo v. IAC,
Q: What are the exceptions to the “Mirror
Doctrine”?
A: (BOB-MILKA)
1. When the purchaser or mortgagee is a
Bank/financing institution, as banks are
presumed to have employed due
diligence (through ocular inspection, etc.)
in ascertaining the status, condition, and
occupancy of the property involved.
(Dela Merced v. GSIS, G.R. No. 140398,
2001) .
2.
Where the Owner still holds a valid arrd
existing certificate of title covering the
same property. The law protects the
lawful holder of a registered title over the
transfer of a vendor bereft of any
transmissible right. (Tomas v. Tomas,
3.
When the purchaser is in Bad faith (Egao
4.
Where the land is bought not from the
registered owner but from one whose
rights have been Merely annotated on
the certificate of title (Quiniano v. C.4,
5.
When there are sufficiently strong
indications to impel closer inquiry into the
location, boundaries, and condition of the
lot (Francisco v. CA, G.R. No. L-30112,
G.R. No. L-36897, 1980).
v.CA,G .R . No. L-79787, 1989).
G.R. No. L-23024, 1971).
G.R. No. L-67742, 1987)
1987).
Q: What is the “Mirror Doctrine”? (09, 05,
BAR)
A: A person dealing with registered iand may reiy
on the correctness of the certificate of title issued
and the law will in no way oblige him to go beyond
the certificate to determine the condition of the
property. Where there is nothing in the certificate
to indicate any cloud or vice in the ownership of
the property, or any encumbrance thereon, the
purchaser is not required to explore further than
what the Torrens Title indicates upon its face in a
quest for hidden defects or inchoate right that
may subsequently defeat his right. (Locsin v.
Examples of “strong indications”:
When the land sold is in
possession of a person other
than the seller
When there are occupants other
than the registered owner
6.
7.
8.
When the certificate of title contains a
notice Of Lis pendens
When the purchaser had full Knowledge
of flaws and defects of the title (Bernales
v. IAC, G.R. Nos. 71490-91, 1988).
When the purchaser buys from an Agent
and not from the registered owner
Hizon, G.R. No. 204369, 2014).
Q: Does the Mirror Doctrine apply when
buying from a person who is not the
registered owner, e.g. one authorized by an
SPA?
A: No. The general rule is that every person
dealing with registered land may safely rely
Page 108 of 120
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on the correctness of the certificate of title
issued therefor and the law will in no way oblige
him to go beyond the certificate to determine the
condition of the property. However, a higher
degree of prudence is required from one who
buys from a person who is not the registered
owner, although the land object of the transaction
is registered. In such a case, the buyer is
expected to examine not only the certificate of title
but all factual circumstances necessary for him to
determine if there are any flaws in the title of the
transferor. (Heirs of Sarili v. Lagrosa, G.R. No.
193517, 2014)
Q: What is the Chain of Title rule?
A: The general rule is that a forged deed is null
and cannot convey title. However, an exception
is when title is acquired from a forger to an
innocent purchaser for value (Sec. 55, Land
Registration Act). However, there must be a
complete chain of registered titles; all the
transfers starting from the original rightful owner
to the innocent holder for value, including the
transfer to the forger, must be duly registered,
and the title must be properly issued to the
transferee. (Spouses Peralta v. Heirs of
Bernardina Abalon, G.R. No. 183448, June 30,
2014)
Although generally a forged or fraudulent deed or
document is a nullity and conveys no title, it may
become the root of a valid title when the certificate
of title over the land has already been transferred
from the name of the owner to that of the forger
and the land is sold later to an innocent purchaser
for value. A person who deals with registered
property in good faith will acquire good title from
a forger and will be absolutely protected by a
Torrens title (Sps. Villamil v. Velasco, 2009).
While, it is a familiar doctrine that a forged or
fraudulent document may become the root of a
valid title, if title to the property has been
transferred from the forger to an innocent
purchaser in good faith, the same does not apply
in case of banking institutions or those engaged
in real estate for they are expected to exercise
more care and prudence than private individuals
in their dealing with registered lands. In the
absence of inquiry, the respondent Bank cannot
and
should
not
be
regarded
as
a
mortgagee/purchaser in good faith. (Erasusta v.
Q: Can a forged deed be a source of a valid
title?
A: Yes. As a general rule, after the entry of the
registration decree on the original application,
any subsequent registration procured by the
presentation of a forged duplicate certificate of
title, or a forged deed or other instrument is void
(Sec. 53, P.D. 1529)
The exception states that a forged or fraudulent
document may become the root of a valid title
when the certificate of title over the land has
already been transferred from the name of the
owner to that of the forger, and the land is sold
later to an innocent purchaser for value. (Sps.
Villamil v. Velasco, G.R. No. 177187, 2009).
2. INVOLUNTARY DEALINGS
Q: What is an adverse claim?
A: An adverse claim is a notice to third persons
that someone is claiming an interest on the
property or has a better right than the registered
owner thereof. The disputed land is subject to the
outcome of the dispute (Sajonas v. CA, G.R No.
102377, 1996).
Q: What are the purposes of an adverse
claim?
A:
It apprises third persons of the
controversy over the ownership of the
land
It preserves and protects the right of the
adverse claimant during the pendency of
the controversy
It is notice to third persons that any
transaction regarding the disputed land is
subject to the outcome of the dispute.
(Arrazola v. Bernas, 86 SCRA 279,1978)
Q: What are the substantive requisites of an
adverse claim?
A:
1.
2.
3.
CA, G.R. No. 149231, 2006)
Page 109 of 120
A claimant’s right or interest in the
registered land is adverse to the
registered owner;
Such right arose subsequent to date of
original registration;
No other provision is made in the Decree
for the registration of such right or claim
(Sec. 70, P.D. 1529)
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Q: What are the formal /requisites to register
an adverse claim?
A: (WNR)
The following are the formal requisites to register
an adverse claim. Noncompliance with these
requisites renders the adverse claim nonregistrable and ineffective:
1.
2.
3.
Adverse claimant must state the
following in Writing:
His alleged right or interest
How and under whom such
alleged right or interest is
acquired
The description of the land in
which the right or interest is
claimed
The certificate of title number
Such statement must be signed and
sworn to before a Notary public or
authorized officer to administer oath
Claimant shall state his Residence or
place to which all notices may be served
upon him
Q: What is the period of effectivity of an
annotation of adverse claim?
A: The adverse claim shall be effective for a
period of 30 days from the date of registration.
Q: When can an adverse claim be cancelled?
A: It may be cancelled:
1. After the lapse of 30 days, upon the filing
by the party-in-interest of a verified
petition for such purpose
2. Before the lapse of said 30 days, upon
the filing by the claimant of a sworn
petition withdrawing his adverse claim
3. ’ Before the lapse of the 30-day period,
when a party-in-interest files a petition in
the proper RTC for the cancellation of the
adverse claim and, after notice and
hearing, the court finds that the claim is
invalid.
After cancellation, no second adverse claim
based on the same ground shall be registered by
the same claimant. (Sec. 70, P.D. 1529)
Q: Can a pending conditional
registered as an adverse cM m ?
sale
be
A: No, it must be registered as a voluntary
instrument.
An adverse claim is an involuntary dealing
designed to protect the interest of a person
over a piece of real property by apprising third
persons that there is a controversy over the
ownership of the land. It seeks to preserve and
protect the right of the adverse claimant during
the pendency of the controversy, where
registration of such interest or right is not
otherwise provided for by the Property
Registration Decree. It serves as a notice to third
persons that any transaction regarding the
disputed land is subject to the outcome of the
dispute.
Before a notice of adverse claim is registered, it
must be shown thatThere is no other provision in
law for the registration of the claimant's alleged
right in the property. A conditional sale is
essentially a dealing affecting less than the
ownership of the subject property that is
governed by Section 54 of PD 1529, which
requires that such dealings must be registered
through a brief memorandum on the certificate of
title and not through an adverse claim.
Moreover, a conditional sale is a voluntary
instrument. The rule is that voluntary instruments
are registered by presenting the owner's
duplicate copy of the title for annotation, pursuant
to Sections 51 to 53 of PD 1529. The reason for
requiring the production of the owner's duplicate
certificate in the registration of a voluntary
instrument is that, being a willful act of the
registered owner, it is to be presumed that he is
interested in registering the instrument and would
willingly surrender, present or produce his
duplicate certificate of title to the ROD in order to
accomplish such registration. The exception to
this rule is when the registered owner refuses or
fails to surrender his duplicate copy of the title, in
which case the claimant may file with the Register
of Deeds a statement setting forth his adverse
claim.
Thus, a conditional sale, a voluntary instrument,
must be registered as such and not as an adverse
claim. (Logarta v. Mangahis, G.R. No. 213568,
July 5, 2016)
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Q: What is notice of lis pendens?
A: A notice of lis pendens is an announcement to
the whole world that a particular real property is
in litigation, serving as a warning that one who
acquires an interest over said property does so at
his own risk, or that he gambles on the result of
the litigation over the said property ( Spouses Po
of molesting the adverse party, or that it is not
necessary to protect the rights of the party who
caused it to be registered. It may also be
canceled by the Register of Deeds upon verified
petition of the party who caused the registration
thereof. (Sec. 77, P.D. 1529)
3. JUDICIAL RECONSTITUTION OF TITLE
Lam v. Court o f Appeals, G.R. No. 116220,
( 2000).
Q: What are the requirements for judicial
reconstitution of title?
No action to recover possession of real estate, or
to quiet title thereto, or to remove clouds upon the
title thereof, or for partition, or other proceedings
of any kind in court directly affecting the title to
land or the use or occupation thereof or the
buildings thereon, and no judgment, and no
proceeding to vacate or reverse any judgment,
shall have any effect upon registered land as
against persons other than the parties thereto,
UNLESS a memorandum or notice shall have
been filed and registered, stating the following:
1. Institution of such action or proceeding
2. The court wherein the same is pending
3. The date of the institution thereof
4. A reference to the number of the
certificate of title
r : 5. An adequate description of the land
affected and the registered owner thereof
(P.D. 1529, Sec. 76).
Q: X, in disputing the sale of a certain piece
land by Y to Z, filed with the Register of Deeds
a notice of lis pendens on the back oftheTC T.
During the pendency of the case, Z sold the
land further to W. Upon discovery, X sought
to annul the subsequent sale to W, but W
countered that he should be considered an
innocent purchaser for value.
A: (LDR-FB)
1. The certificate of title had been Lost or
destroyed.
2. The Documents presented by petitioner
are sufficient and proper to warrant
reconstitution of the lost or destroyed
certificate of title.
3. The petitioner is the Registered owner of
the property or had an interest therein.
4. The certificate of title was in Force at the
time it was lost or destroyed.
5. The description, area and Boundaries of
the property are substantially the same
and those contained in the lost or
destroyed certificate of title (Heirs o f
Toring v. Heirs o f Boquilaga, G.R.
No. 163610, 2010, citing R.A. 26, Secs.
2, 3, 12 and 13).
Q: What are the valid sources for judicial
reconstitution of title?
A: Original certificates of title (OCT) and Transfer
certificates of title (TOT) shall be reconstituted
from such of the sources hereunder enumerated
as may be available, in the following order:
A: No. The annotation of lis pendens served as
notice to them that the said lot is involved in a
pending litigation. Settled is the rule that one who
deals with property subject of a notice of lis
pendens cannot invoke the right of a purchaser in
good faith. Neither can he acquire better rights
than those of his predecessor in interest. (Sps. Po
Lam v. CA, G.R. No. 116220, Dec. 6, 2000)
Q: When can one cancel a notice of lis
pendens?
A: Before final judgment, a notice of lis pendens
may be canceled upon order of the court, after
proper showing that the notice is for the purpose
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ORIGINAL
CERTIICATES OF
TITLE
TRANSFER
CERTIFICATES OF
TITLE
The owner's duplicate of the certificate of title;
The co-owner’s, mortgagee’s or lessee's
duplicate of the certificate of title;______________
A certified copy of the certificate of title,
previously issued by the register of deeds or by a
legal custodian thereof;
An authenticated copy The deed of transfer or
of the
decree
of other document, on file
registration or patent, in the registry of deeds,
as the case may be, containing
the
of
the
pursuant to which the description
property,
or
an
original certificate of
authenticated
copy
title was issued;
thereof, showing that its
original
had
been
registered,
and
pursuant to which the
lost
or
destroyed
transfer certificate of
title was issued;_______
A document, on file in the Registry of Deeds, by
which the property, the description of which is
given in said document, is mortgaged, leased or
encumbered, or an authenticated copy of said
document showing that its original had been
registered;_________________________________ _
Any other document which, in the judgment of the
court, is sufficient and proper basis for
reconstituting the lost or destroyed certificate of
title (R.A. 26, Secs. 2 & 3).
Q: In an action for reconstitution of title, what
must the claimants prove?
A: That a title had been issued and that said
certificate of title was still in force at the time it was
lost or destroyed. It is necessary that the RD
issue a certification that such was in force at the
time of its alleged loss or destruction. The RD
cannot issue such certification merely because of
the dearth of records in its file. (RP v. Sanchez,
G.R. No. 212388, 2014)
DEALINGS WITH UNREGISTERED
LANDS
Q: What are the legal consequences of
dealings with unregistered land?
A:
1.
2.
Under
Act
3344,
registration
of
instruments affecting unregistered lands
is without prejudice to a third party with a
better right (Radiowealth Finance Co. v.
Palileo, G.R. No. 83432,1991J;
If a parcel of land covered by a Torrens
Title is sold, but the sale is registered
under Act 3344, and not under the Land
Registration Act, the sale is not
considered
registered
(Vda.
de
Melencion v. CA, G.R. No. 148846,
2007)-, The registration of the deed does
not operate as constructive notice to the
whole world. (Republic v. Heirs o f
Francisca Dicmos-Sorono,
171571, 2008)
G.R.
No.
Q: Was the mere execution of a Deed of Sale
covering an unregistered parcel of land
enough to bind third persons?
A: No. The reliance on an unnotarized and
unregistered deed of absolute sale of real
property executed in one’s favor is misplaced and
unwarranted, for the non-registration of the deed
meant that the sale could not bind third parties.
The transaction affecting unregistered lands
covered by an unrecorded contract, if legal, might
be valid and binding on the parties themselves,
but not on third parties. In the case of third parties,
it was necessary for the contract to be registered.
(Dadizon vs. Court o f Appeals, G.R. No. 15911,
September 30, 2009).
Q: Between a duly registered levy on
attachment and a prior unregistered sale,
which one prevails?
A: A duly registered levy on attachment takes
precedence over a prior unregistered sale. This is
not diminished by the subsequent registration of
the prior sale. This is consistent with the
fundamental principle of the Torrens system that
registration is the operative act which gives
validity to the transfer or creates a lien unon land
/ Q / i n f o i/
j W U I IL K A y
i/
V
a i /O/O r
It y
208462, 2014).
Page 112 of 120
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E. ASSURANCE FUND
5.
Q: What is the assurance fund?
6.
A: The Assurance Fund is a special fund created
by P.D. 1529 to compensate a person who
sustains loss or damage, or is deprived of land or
interest therein, as a consequence of the bringing
of the land under the operation of the Torrens
system
Q: Against whom should the action be filed?
A:
If the loss, damage, or deprivation is
wholly through the fault, negligence,
omission, mistake, or misfeasance of the
court personnel, the ROD or his deputies
and employees: the action must be
brought against the ROD and the
Q: How can an action be filed against the
Assurance Fund?
A: A claim against the Assurance Fund is filed
through a civil action, which may be in the form of
an ordinary complaint for damages.
The person bringing the action for
damages against the Fund must be the
registered owner or holders of transfer
certificates of title or innocent purchasers
for value (La Urbana v. Bernardo, 62 Phil.
He is barred under the provisions of P.D.
1529 or under the provisions of any law
from recovering such land;
The action has not prescribed.
National Treasurer
If the same is attributable to persons
other than said officials, the action must
be brought against the ROD, the
National Treasurer, and such other
persons.
Q: Where should the action be filed?
790, 1936)
This remedy is not available when the
party
seeking
compensation
was
negligent,
as
when
there
were
circumstances which should have put
him on guard and prompted him to
investigate the property involved (Torres
A: Any court of competent jurisdiction: RTC in city
where property lies or resident of plaintiff
v. CA, 186 SCRA 679, 1990)
A:
Q: What is the prescriptive period for the
action?
The action must be instituted within 6
years from the issuance of the certificate
of title.
If the plaintiff is minor, insane or
imprisoned, he has additional 2 years
after disability is removed to file the
action. (Sec. 102, P.D. 1529)
Q: What are the requisites for one to file such
action?
A:
1.
2.
3.
4.
The action must be filed by a person who
sustained loss or damage, or is deprived
land or any estate or interest therein
Such loss, damage or deprivation was
occasioned by the bringing of the land
under the operation of the Torrens
system or arose after the original
registration of the land
The loss, damage or deprivation was due
to: fraud, or any error, omission, mistake,
or mis-description in any certificate of title
or in any entry or memorandum in the
registration book. (Loss or damage
should not be due to breach of trust or
mistake
in
resurvey
resulting
in
expansion of area in certificate of title.)
The aggrieved party was not negligent.
Q: What is the reckoning point of the 6-year
prescriptive period?
A: The phrase "from the time the right to bring
such action first occurred" within which one may
proceed to file an action for compensation against
the Assurance Fund should be interpreted to
mean the moment the innocent purchaser for
value registers his/her title and upon actual
knowledge thereof of the original title holder.
Such is the reckoning point of the 6-year
prescriptive period for filing said action under
Sec. 102 of PD 1529.
In actions for compensation against the
Assurance Fund grounded on fraud, registration
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of the innocent purchaser for value’s title should
only be considered as a condition sine qua non to
file such an action and not as a form of
constructive notice for the purpose of reckoning
prescription. This is because the concept of
registration as a form of constructive notice is
essentially premised on. the policy of protecting
the innocent purchaser for value's title, which
consideration does not obtain in Assurance Fund
cases. Thus, when they filed their complaint on
March 18, 2009, the Spouses' claim has not yet
prescribed. (Spouses Stilianopoulos v. ROD for
Legazpi City, G.R. No. 224678, July 3, 2018)
|
XII. TORTS AND DAMAGES
. .............
■
............... ................. ............ ...
1
A. TORTS/QUASf-DELICTS
(Arts. 2176 - 21941
1. DEFINITION, ELEMENTS
Q: What is a "quasi-delict?"
A: Whoever by act or omission causes damage to
another, there being fault or negligence, is
obliged to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual
relation between the parties, is called a quasi­
delict and is governed by the provisions of this
Chapter. (Art.2176)
Q: What is a tort?
A: Acts giving rise to civil liability but are not
necessarily the consequences of crimes or
contractual
obligations.
(Paras,
Pre-week
Handbook in Civil Law, p. 588, 2012)
Q: What are the elements of a quasi-delict?
A:
1.
2.
3.
4.
Damage suffered by plaintiff
Fault or Negligence of the defendant, or
some other person for whose acts he must
respond
Connection of cause and effect between the
fault or negligence of the defendant and the
damages incurred by the plaintiff
No pre-existing contractual relation between
the parties (Andamo v. International
Appellate Court G.R. No. 74761, 1990)
Q: Can a quasi-delict arise from breach of
contract?
A: Generally no.
The exception is when the act that breaks a
contract is also a tort, or when the act that breaks
a contract would have also given rise to an
obligation based on quasi-delict had no contract
existed between the parties. Simply put, the act
that breaches a contract may also give rise to an
obligation based on quasi-delict when the act is
done in bad faith (or amounts to gross
negligence), end in violstion of Article 21 of the
Civii Code ( Orient Freight international, Inc. v.
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Keihin-Everett Forwarding Co., Inc., G.R. No.
191937, August 9, 2017)
2. CLASSIFICATION OF TORTS
(a) Negligent Torts
Q: What is "negligence?"
A: The omission of that degree of diligence which
is required by the nature of the obligation and
corresponds to the circumstances of the persons,
time and place. (Art. 1173)
Q: What
example.
is gross
negligence?
Give
an
A: Gross negligence is defined as negligence that
is characterized by the want of even slight care,
acting or omitting to act in situation where there is
a duty to act, not inadvertently but wilfully and
intentionally with a conscious indifference to
consequence insofar as other persons may be
affected. (Baho v. Bachelor Express, G.R. No.
191703,2012)
Q: What is
Nuisance?"
recognizes that a man's house is his castle,
where his right to privacy cannot be denied or
even restricted by others. It includes "any act of
intrusion into, peeping or peering inquisitively into
the residence of another without consent of the
latter."
The phrase "prying into the privacy of another's
residence” does not mean that only the residence
is entitled to privacy. A business office is entitled
to the same privacy when the public is excluded
therefrom and only such individuals as are
allowed to enter may come in. A reasonable
expectation of privacy may be established
whether they use a business office or residence
and that the installation of the cameras directly
facing the property, without their consent, is a
clear violation of their right to privacy. (Sps. Hing
v. Choachuy, G.R. No. 179736, 2013)
(c) Strict Liability Torts
Q: What are strict liability torts?
A: They are torts or quasi-delicts where liability
arises even in the absence of fault or negligence.
the
Doctrine
of "Attractive
A: One who maintains on his premises dangerous
Instrumentalities or appliances of a character
likely to attract children in play and who fails to
exercise ordinary care to prevent children from
playing therewith or resorting thereto, is liable to
a child of tender years who is injured thereby,
even if the child is technically a trespasser in the
premises. (Hidalgo v. CA, G.R. No. L-342, 1952)
(b) Intentional Torts
Q: Spouses X and Y allege that defendant A
violated their right to privacy when A installed
cameras in his property which were facing the
spouses' on-going construction. The CA set
aside the injunction granted to the spouses,
stating that the right to privacy was not
violated through the installation of the
cameras as the construction was not of a
residential building. Is the CA correct?
An example of a strict liability tort is that provided
in Article 2183 of the Civil Code, which states that
“the possessor of an animal or whoever may
make use of the same is responsible for the
damage which it may cause, although it may
escape or be lost. This responsibility shall cease
only in case the damage should come from force
majeure or from the fault of the person who has
suffered damage”.
The obligation imposed by Article 2183 is not
based on the negligence or on the presumed lack
of vigilance of the possessor or user of the animal
causing the damage. It is based on natural equity
and on the principle of social interest that he who
possesses animals for his utility, pleasure or
service must answer for the damage which such
animal may cause ( Vestil v. Intermediate
Appellate Court, G.R. No. 74431, November 6,
1989).
A: No. The right to privacy under Article 26(1) of
the Civil Code covers business offices where the
public are excluded therefrom and only certain
individuals are allowed to enter. The provision
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3. THE TORTFEASOR
(a) Direct Tortfeasor {i.e., the person liable
under Article 2176)
(b) Persons Made Responsible for Others (i.e.,
Article 2180 of the Civil Code)
Q: Explain the concept of "vicarious liability."
A: The obligation imposed in Art. 2176 is
demandable not only for one’s own act or
omission but also for those persons for whom one
is responsible. (Art. 2180)
A person is liable not only for his own torts, but
also for those committed by others with whom he
has a certain relationship, or for whom he is
responsible. (Tamargo v. Court of Appeals, G.R.
, As a general rule, a client or customer of a
security agency has no hand in selecting who
among the pool of security guards or watchmen
employed by the agency shall be assigned to i t
the duty to observe the diligence of a good father
of a family in the selection of the guards cannot
be demanded from the client whose premises or
property are protected by the security guards.
(Sps. Mamaril v. Boy Scouts o f the Philippines,
G.R. No. 179382, 2013)
(c) Nature of Liability - The liability of the direct
or actual tortfeasors and the persons vicariously
liable with them is solidary in nature. However, if
the persons vicariously liable are compelled to
pay forthe damage caused by the direct or actual
tortfeasors, the former may recover from the latter
the full amount of what was paid, and not merely
the latter’s corresponding share (see Art. 2181)
No. 85044, 1992)
B. PROXIMATE CAUSE AND C. NEGLIGENCE
Q: Distinguish "vicarious
"respondeat superior. ”
liability"
from
A: Vicarious liability is not governed by the
doctrine of respondeat superior. Under the
doctrine of respondeat superior, the master is
liable in every case and unconditionally; the
negligence of the servant is conclusively
presumed to be the negligence of the master.
However, in vicarious liability, persons are made
vicariously liable not because of the negligent or
wrongful act of the person for whom they are
responsible, but because of their own negligence
( e.g., liability is imposed on the employer
because he failed to exercise due diligence in the
selection and supervision of his employees).
THE CONCEPTS AND DOCTRINES OF RES
IPSA LOQUITUR, LAST CLEAR CHANCE,
PROXIMATE CAUSE, DAMNUM ABSQUE
INJURIA, PRESUMPTION OF NEGLIGENCE,
AND VICARIOUS LIABILITY
(a) hies Ipsa Loquitur
Q: What are the
Loquitur?
A:
1.
2.
(Delsan Transport v. C&A Construction, G.R. No.
156034, 2003; Light Rail Transit Association v.
Navidad, G.R. No. 145804, 2003)
3.
Q: Can a client or customer of a security
agency be held liable for the negligence
committed by employees of security agency?
4.
A: NO. Where the security agency recruits, hires
and assigns the work of its watchmen or security
guards, the agency is the employer of such
guards and watchmen. Liability for illegal or
harmful acts committed by the security guards
attaches to the employer agency, not to the
clients of customer of such agency.
elements of Res Ipsa
The accident was of a kind which does not
ordinarily occur unless
someone
is
negligent;
The instrumentality or agency which caused
the injury was under the exclusive control of
the person charged with negligence
Injury suffered must have not been due to
any voluntary action or contribution on the
person injured (DM. Consunji v. Court o f
Appeals, G.R. No. 137873, 2001).
Some cases add a fourth requirement which
is that there must be no direct proof of the
defendant’s negligence available to the
plaintiff (Huang v. Philippine Hoteliers, Inc.,
G.R. No. 180440, December 5, 2012).
However, this requirement has not been
consistently applied by the Supreme Court.
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Q: What is captain of the ship rule? Does this
doctrine apply in our jurisdiction?
negligence of the other party. (Picart v. Smith,
Jr., G.R. No. L-12219, March 15, 1918)
A: Under the captain of the ship
operating surgeon is the person in
charge of the surgery room and all
connected with the operation whose
obey the orders of the former. Yes,
under Philippine law (PS/ v. Agana,
Alternative formulation: Where both parties are
rule, the
complete
personnel
duty is to
it applies
G.R. No.
126297, 2010).
Q: May a hospital be held liable for the
negligence committed by its doctors, who are
not its employees?
A: Yes. The court has applied the doctrine of
agency by estoppel to hold hospitals liable for the
negligent acts of physicians.
This doctrine
applies when:
1. The hospital represents that a physician or
doctor is its employee or agent (example:
displaying a doctor’s name in the hospital
lobby); and
2. The patient relies on such representations.
(Professional Services, Inc. v. Agana, G.R.
No. 126297, 2007)
Q: What are the elements of the "Doctrine of
Informed Consent?"
A: The elements are:
1. The physician had a duty to disclose material
risks;
2. He failed to disclose or inadequately
disclosed those risks;
3. As a direct and proximate result of the failure
to disclose, the patient consented to the
treatment, which he or she would otherwise
not have consented to; and
4. The patient was injured by the proposed
treatment (Li v. Soliman, G.R. No. 165279,
2011)
(b) Last Clear Chance
guilty of negligence, but the negligent act of one
succeeds that of the other by an appreciable
interval of time, the person who has the last fair
chance to avoid the impending harm and fails to
do so is chargeable with the consequences,
without reference to the prior negligence of the
other party. (Achevara v. Ramos, G.R. No.
175172, September 29, 2009)
(c) Proximate Cause
Q: Define "proximate cause.”
A: That cause which, in natural and continuous
sequence, unbroken by any efficient intervening
cause, produces the injury, and without which the
result would not have occurred. (Vda. de
Bataclan v. Medina, G.R. No. L-10126, 1957).
(d) Damnum Absque Injuria
Q: Explain the concept of "damnum absque
injuria?
A: It means "damage without injury." A person
may have suffered physical hurt or injury, but for
as long as no legal injury or wrong has been
done, there is no liability.
To justify an award of damages, the elements of
“injury”, “damage”, and “damages" must concur.
Injury is the illegal invasion of a legal right;
damage is the loss, hurt, or harm which results
from the injury; and damages are the
recompense or compensation awarded for the
damage suffered. Thus, there can be damage
without injury in those instances in which the loss
or harm was not the result of a violation of a legal
duty. These situations are often called damnum
absque injuria. (Spouses Custodio v. Court of
Appeals, G.R. No. 116100, 1996)
Q: State the Doctrine of Last Clear Chance
(also known as the Doctrine of Discovered
Peril and the Doctrine of Supervening
Negligence).
A: Whoever had the last fair chance to avoid the
impending harm and fails to do so is chargeable
with the consequences with reference to the prior
This defense applies when a plaintiff sustains
damage as a result of the defendant’s exercise of
his/her rights, but without any bad faith, malice, or
gross negligence. This defense does not apply
when there is an abuse of a person’s rights.
(Amonoyv. Gutierrez, G.R. No. 140420, 2001)
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(e) Presumption of Negligence
1.
Q: When is the driver of a motor vehicle
presumed negligent?
2.
3.
A:
(a) At the time of the mishap, he was violating
any traffic regulation. (Art. 2185)
(b) He had been found guilty or reckless driving
or violating traffic regulations at least twice
within the next preceding two months. (Art.
2185)
Q: When does presumption of negligence
arise against common carriers?
A: Common carriers, by reason of the nature of
their business, should observe extraordinary
diligence in the vigilance over the goods they
carry (Art. 1733).
In case of loss of the goods, the common carrier
is presumed to have been at fault or to have acted
negligently. (Art. 1735)
4.
5.
No
employer-employee
relationship
between the driver and the RO;
The driver/employee Was not acting within
scope of assigned tasks;
The RO/employer observed due diligence in
selection and supervision;
Unauthorized use of the vehicle; and/or
The vehicle was stolen.
Q: What is the "Premises Liability Rule?"
A: This rule states that it is enough that guests are
injured while inside the hotel premises to make
the hotelkeeper liable. (Makati Shangri-La Hotel
v. Harper, G.R. No. 189998, 2012)
More particularly, when someone enters the
property of another with the latter's knowledge
and consent, they have a reasonable expectation
of not getting injured. Thus, the property owner
(or non-owner resident) is responsible for
maintaining a relatively safe environment, arid
s/he may be held liable for accidents and injuries
that occur on his/her property. Note that the same
responsibility is not owed to trespassers.
In case of death of or injuries to passengers,
common carriers are presumed to have been at
fault or to have acted negligently. (Art. 1756)
Q: What is the "Registered Owner Rule?"
A: In motor vehicle mishaps, the registered owner
of the vehicle is considered the employer of the
tortfeasor-driver, and is made primarily liable for
the tort committed by the latter. Insofar as third
persons are concerned, the registered owner of
the motor vehicle is the employer of the negligent
driver, and the actual employer is considered
merely as an agent of such owner. (Filcar
Transport Services v. Espinas, G.R. No. 174156,
2012)
Q: What defenses may be availed of by the
registered owner of a vehicle?
A: In Caravan Travel and Tours v. Abejar (G.R.
No. 170631, 2016), the Supreme Court held that
once the plaintiff proves (a) that the driver is
liable, and (b) the identity of the RO, it is
presumed that all the requirements for vicarious
liability to attach to the RO have been proven.
That presumption, however, may be overcome by
proof of the following defenses:
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D. DAMAGES
Q: What is the formula for computing of loss
of earning capacity?
A: [2/3 x (80 - (age at the time o f death)] x NET
ANNUAL INCOME
NOTE: In the absence of documentary evidence
of expenses, it is reasonable to presume that it
Net Income is 50% of Gross Income. (Philippine
Hawk Corporation v. Lee, G.R. No. 166869,
2010)
incapacity. Courts may presume that persons
graduate from college at the age of 21, and it is
only then that they would start earning a
livelihood.
(2) “Net Annual Income” may be computed on
the basis of the prevailing minimum wage for
workers in the non-agricultural sector at the time
of the minor’s death or permanent incapacity.
(Spouses Pereha v. Spouses Zarate, G.R. No.
157917, 2012; and Abrogar v. Cosmos Bottling
Co., G.R. No. 164749, 2017)
Q: When are attorney's fees awardable?
Q: May loss of earning capacity be awarded
as damages for the death of a minor child who
had no history of earnings?
A: YES - Art. 2206(1) provides that damages for
LEC shall be assessed and awarded by the court
“unless the deceased on account of permanent
physical disability not caused by the defendant,
had no earning capacity at the time of his death”.
Damages for LEC may be awarded to a minor’s
heirs although he had no history of earnings
because compensation of this nature is awarded
not for loss of time or earnings but for loss of the
deceased’s power or ability to earn money.
(Spouses Pereha v. Spouses Zarate, G.R. No.
157917, 2012)
How to Compute LEC of Non-Earning Student
As a general rule, damages for LEC are
computed by applying the following formula:
Damages for LEC = 2/3(80-X) multiplied by Net
Annual Income where:
(1) “X ” is the deceased or permanently
incapacitated person’s age at the time of the
accident; and
(2) “Net Annual Income” is equivalent to a
person’s Gross Annual Income less Necessary
and Living Expenses (in the absence of evidence,
it is presumed that Necessary and Living
Expenses are equal to half of a person’s Gross
Annual Income).
The formula may be modified when a minor who
was not yet earning is involved:
(1) “X” may be fixed at 21, instead of the person’s
age at the time of his death or permanent
A:
1.
2.
When exemplary damages are awarded;
When the defendant's act or omission has
compelled the plaintiff to litigate with third
persons or to incur expenses to protect his
interest;
3. In criminal cases of malicious prosecution
against the plaintiff;
4. In case of a clearly unfounded civil action or
proceeding against the plaintiff;
5. Where the defendant acted in gross and
evident bad faith in refusing to satisfy the
plaintiffs plainly valid, just and demandable
claim;
6. In actions for legal support;
7. In actions for the recovery of wages of
household helpers, laborers and skilled
workers;
8. In actions for indemnity under workmen's
compensation and employer's liability laws;
9. In a separate civil action to recover civil
liability arising from a crime;
10. When at least double judicial costs are
awarded. (Art. 2208)
Q: When are moral damages recoverable?
A: Cases when Moral Damages may be
recovered
1. Criminal offense resulting in physical injuries
2. Quasi-delicts causing physical injuries
3. Seduction, abduction, rape or other acts of
lasciviousness
4. Adultery and concubinage
5. Illegal or arbitrary detention or arrest
6. Illegal search
7. Libel, slander or other form of defamation
8. Malicious prosecution
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"9.
Acts mentioned in ART. 309 of the RPC
relating to disrespect of the dead and
interference with funeral
10. Acts and actions referred to in Arts. 21, 26,
27, 28, 29, 30, 32, 34 and 35 (Art. 2219)
temperate, liquidated to compensatory damages;
also called corrective or punitive damages.'
NOTE: Exemplary damages cannot be recovered
as a matter of right; the court will decide whether
or not they should be adjudicated.
NOTE: Art. 2219 is not an exclusive
enumeration.
Moral damages may also be awarded in cases of
willful injury to property or breaches of contract
where defendant acted fraudulently or in bad
faith. (Art. 2220)
Q: When are nominal damages awarded?
A: 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.
Q: What are temperate or moderate damages?
A:
More than
nominal
but less than
compensatory where some pecuniary loss has
been suffered but its amount can't be proved with
certainty due to the nature of the case.
in cases where the resulting injury might be
continuing and possible future complications
directly arising from the injury, while certain to
occur are difficult to predict, temperate damages
can and should be awarded on top of actual or
compensatory damages; in such cases there is
no incompatibility between actual and temperate
damages.
Q: What are liquidated damages?
A: Those agreed upon by the parties to a contract,
to be paid in case of breach thereof.
Q: When
reduced?
may
liquidated
damages
be
A:
(a) Iniquitous or unconscionable
(b) Partial or irregular performance
Q: What are exemplary damages?
A: Imposed by way of example or correction for
the public good, in addition to the moral,
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