FOR UP CANDIDATES ONLY
024337CIV
FOR UP CANDIDATES ONLY
024338CIV
FOR UP CANDIDATES ONLY
024339CIV
FOR UP CANDIDATES ONLY
024340CIV
FOR UP CANDIDATES ONLY
TABLE OF CONTENTS
PERSONS AND FAMILY RELATIONS ............ 1
PRELIMINARY TITLE ........................................ 1
I.
WHEN LAWS TAKE EFFECT ............. 1
II.
IGNORANCE OF THE LAW ........... 1
III.
RETROACTIVITY OF LAWS ........... 1
IV.
MANDATORY OR PROHIBITORY
LAWS 1
V.
WAIVER OF RIGHTS ....................... 1
VI.
PRESUMPTION
AND
APPLICABILITY OF CUSTOM................... 2
VII.
LEGAL PERIODS.............................. 2
VIII.
IX.
1.
A.
B.
C.
D.
TERRITORIALITY PRINCIPLE . 3
CONFLICT OF LAWS....................... 3
Introduction ............................................. 3
a. Definition ............................................. 3
b. Scope..................................................... 4
Nationality Principle ............................... 4
Lex Situs.................................................... 4
Lex Loci Celebrations ................................. 5
Doctrine of Renvoi ................................. 5
PERSONS ................................................................ 5
I. HUMAN RELATIONS IN RELATION
TO PERSONS................................................ 5
A.
Abuse of Right ......................................... 5
1. Kinds of Abuse of Right ............................ 6
a. Acts Contrary to Law ............................. 6
b. Acts Contrary to Morals ......................... 6
c. Acts Contrary to Morals, In General .... 6
d. Breach of Promise to Marry and Moral
Seduction ....................................................... 6
e. Malicious Prosecution ............................. 7
f. Public Humiliation ................................... 7
g. Oppressive Dismissal .............................. 7
B. Unjust Enrichment .......................................... 7
C. Liability Without Fault .................................... 7
D. Ostentatious Display of Wealth .................... 8
E. Violation of Human Dignity .......................... 8
F. Civil Action ....................................................... 8
II. CAPACITY TO ACT................................ 9
A. Civil Personality .............................................. 9
1. In General .................................................... 9
2. Kinds of Persons .......................................... 9
B. Natural Persons .............................................. 10
C. Juridicial Persons ............................................ 10
1. Capacity to Act and Restrictions on
Capacity to Act ............................................... 11
D. Minority .......................................................... 11
E. Insanity ............................................................ 12
F. Deaf-mutism ................................................... 12
024341CIV
G. Prodigality ....................................................... 12
H. Civil Interdiction ............................................ 12
I. Family Relations............................................... 13
J. Alienage ............................................................. 13
K. Absence ........................................................... 14
L. Insolvency and Trusteeship .......................... 14
1. Domicile and Residence of Persons ........ 14
M. Birth and Death of Natural Persons .......... 14
N. Presumption of Survivorship ....................... 15
III. USE OF SURNAMES ........................... 15
A. Surname of Children .................................... 15
1. Legitimate and Legitimated Children ...... 15
2. Adopted Child............................................. 15
3. Illegitimate Child ........................................ 16
B. Surname of Wife During and After Marriage
................................................................................ 16
1. During Marriage ......................................... 16
2. After Marriage ............................................. 16
C. Confusion of Names ..................................... 16
D. Change of Names .......................................... 17
IV.
ENTRIES
IN
THE
CIVIL
REGISTRY AND CLERICAL ERROR LAW
17
V. RULES GOVERNING PERSONS WHO
ARE ABSENT .............................................. 18
A. Civil Code Provisions .................................... 18
1. Provisional Measures in Case of Absence
........................................................................... 18
2. Declaration of Absence ............................. 18
3. Administration of the Property of the
Absentee ........................................................... 19
4. Presumption of Death ............................... 19
B. Presumptive Death of Absent Spouse Under
the Family Code................................................... 20
MARRIAGE AND FAMILY RELATIONS 20
I. GENERAL PRINCIPLES ....................... 20
A. Essential Requisites........................................ 20
1. Sex ................................................................. 20
2. Age ................................................................ 21
3. Consent Freely Given ................................ 21
4. No Subsisting Marriage ............................. 22
B. Formal Requisites ........................................... 22
1. Marriage Ceremony .................................... 22
2. Authority of Solemnizing Officer ............ 22
3. Marriage License ......................................... 23
II. MIXED
MARRIAGES,
FOREIGN
MARRIAGES, AND FOREIGN DIVORCE
24
A. Marriages Solemnized Abroad ..................... 24
B. Foreign Divorce.............................................. 25
III.
VOID MARRIAGES ........................ 25
A. Absence of Requisites ................................... 25
B. Bigamous and Polygamous Marriages......... 26
FOR UP CANDIDATES ONLY
C. Subsequent Marriage When One Spouse is
Absent ................................................................... 26
D. Bad Faith of Both Spouses .......................... 27
E. Psychological Incapacity ............................... 27
F. Incestuous Marriage ....................................... 28
G. Against Public Policy .................................... 28
H.
Non-compliance
with
Recording
Requirement After Declaration of Nullity ...... 29
IV.
VOIDABLE MARRIAGES .............. 30
A. Lack of Parental Consent ............................. 31
B. Insanity ............................................................ 31
C. Fraud ................................................................ 31
D. Force, Intimidation, Undue Influence ....... 32
E. Impotency ....................................................... 33
F. Sexually-Transmissible Disease Serious and
Incurable ............................................................... 33
V.
EFFECT
OF
DEFECTIVE
MARRIAGES ............................................... 34
A. Effects of Pendency ...................................... 34
B. Effects of Decree ........................................... 34
1. Properties ................................................... 34
a. Void Marriages/ Union Without
Marriage (Arts. 147-148 FC) .................... 34
b. Voidable Marriages (Art. 50, FC) ........ 34
2. Status of Children (Art. 54, FC) ............... 34
a. Void Marriages ....................................... 34
b. Voidable Marriages................................ 34
3. Continued Use Of Surname [Art. 371,
Civil Code] ....................................................... 34
VI.
LEGAL SEPARATION.................... 34
A. Grounds for Legal Separation [Art. 55,
Family Code] ........................................................ 35
1. Repeated physical violence or grossly
abusive conduct directed against the
petitioner, a common child, or a child of the
petitioner .......................................................... 35
2. Physical violence or moral pressure to
compel the petitioner to change religious or
political affiliation ........................................... 35
3. Attempt of the respondent to corrupt or
induce the petitioner, a common child, or a
child of the petitioner, to engage in
prostitution, or connivance in such
corruption or inducement ............................. 35
4. Final judgment sentencing the respondent
to imprisonment of more than six (6) years,
even if pardoned ............................................. 35
5. Drug addiction or habitual alcoholism of
the respondent ................................................ 35
6. Lesbianism or homosexuality of the
respondent ....................................................... 35
7. Contracting by the respondent of a
subsequent bigamous marriage, whether in
the Philippines or abroad .............................. 35
8. Sexual infidelity or perversion .................. 35
9. Attempt by the respondent against the life
of the petitioner .............................................. 35
024342CIV
10. Abandonment of petitioner by
respondent without justifiable cause for
more than one (1) year. .................................. 35
B. Defenses [Art. 56, Family Code] .................. 35
1. Condonation by the aggrieved party –
after the commission of the offense; may be
expressed or implied....................................... 35
2. Consent by the aggrieved party to the
commission of the offense – before the
commission of the offense; may be
expressed [e.g. written agreement, Matubis v.
Praxedes, G.R. No. L-11766 (1960)] or
implied .............................................................. 36
3.
Connivance between parties in the
commission of the offense ............................ 36
4. Mutual guilt or recrimination between
spouses in the commission of any ground for
legal separation ................................................ 36
5. Collusion between parties to obtain a
decree of legal separation .............................. 36
6. Prescription of action for legal separation
........................................................................... 36
7.
Reconciliation of parties during the
pendency of action [Art. 66 (1), Family
Code] 36
8. Death of either party during the pendency
of action ........................................................... 36
C. Procedure ....................................................... 36
D. Effects of Filing Petition .............................. 37
E. Effects of Pendency....................................... 37
F. Effects of Decree of Legal Separation ........ 37
G. Reconciliation ................................................. 37
H. Effect of Death of One of the Parties ....... 38
1. Live Together ......................................... 40
2. Fix a Family Domicile ........................... 40
3. Support the Family ................................ 40
4. Management of Family Life ................. 40
5. Effect of Neglect of Duty .................... 40
6. Exercise of Profession .......................... 40
VIII.
PROPERTY
RELATIONS
BETWEEN SPOUSES ................................ 40
A. General Provisions......................................... 40
B. Donations by Reason of Marriage (Donation
Propter Nuptias) ..................................................... 41
C.
Void Donations by The Spouses ........ 42
D. Absolute Community of Property Regime 42
E. Conjugal Partnership of Gains Regime ...... 43
F. Separation of Property and Administration
of Common Property by One Spouse During
the Marriage ......................................................... 51
G. Separation of Property Regime ................... 51
H. Separation of Property Regime ................... 52
I. Property Regime of Unions Without
Marriage ................................................................ 52
J. Judicial Separation of Property ...................... 53
IX.
THE FAMILY .................................. 54
A. General Principles .......................................... 54
FOR UP CANDIDATES ONLY
A. General Principles.......................................... 55
B. Who May Constitute the Family Home ..... 55
C. Beneficiaries of the Family Home ............... 55
D. Exemption From Forced Sale, Execution,
Attachment........................................................... 55
E. Sale of Family Home ..................................... 55
F. When Terminated .......................................... 56
XI.
PATERNITY AND FILIATION .... 56
A. Concepts of Paternity, Filation, and
Legitimacy ............................................................ 56
B. Legitimate Children ....................................... 58
1. Who are Legitimate Children ................... 58
2. Proof of Filiation of Legitimate Children
........................................................................... 59
3. Rights of Legitimate Children .................. 59
4. Grounds to Impugn Legitimacy .............. 59
C. Illegitimate Children ...................................... 60
1. Who are Illegitimate Children .................. 60
2. Proof of Filiation of Illegitimate Children
........................................................................... 60
3. Rights of Illegitimate Children ................. 61
4. Grounds to Impugn Filiation ................... 62
D. Legitimated Children .................................... 62
1. Who May Be Legitimated ......................... 62
2. How Legitimation Takes Place ................ 62
3. Grounds to Impugn Legitimacy .............. 62
E. Adopted Children .......................................... 63
1. Domestic Administrative Adoption and
Alternative Child Care Act [RA 11642] ...... 63
2. Who May Adopt ......................................... 63
3. Who May Be Adopted [Sec. 22, RA 11642]
........................................................................... 63
a. Rights of an Adopted Child ................. 64
1.
In General [Sec. 42, RA 11642]
64
2.
Legitimacy [Sec. 41, RA 11642]
64
3.
Succession [Sec. 43, RA 11642]
64
4.
Name [Sec. 41, RA 11642] ..... 64
5.
Nationality ................................ 64
4. Effects of a Decree of Adoption [See
Article Nos. 189-190 of the Family Code] . 64
a. Instances and Effects of Rescission [Sec.
47, RA 11642] ............................................ 65
5.
Inter-country Adoption [RA 8043, as
amended by RA 11642] ................................. 65
a. When Allowed ........................................ 65
XII. SUPPORT ......................................... 65
A. Scope; What Comprises Support ................ 65
B. Who are Obliged to Give Support .............. 66
C. Source of Support .......................................... 66
D. Order of Support........................................... 66
E. Amount of Support ....................................... 67
F. Manner and Time of Payment ..................... 67
G. Renunciation and Termination ................... 67
H. Support Pendente Lite .................................. 68
024343CIV
XIII.
PARENTAL AUTHORITY ......... 68
A. Concept of Parental Authority ..................... 68
B. Substitute Parental Authority ....................... 68
C. Special Parental Authority............................. 68
D. Effects of Parental Authority....................... 69
1. Effect of Parental Authority over the
Child’s Person ................................................. 69
2. Effect of Parental Authority over the
Child’s Property .............................................. 69
E. Suspension or Termination of Parental
Authority............................................................... 70
XIV.
EMANCIPATION ........................ 71
A. Cause of Emancipation ................................. 71
B. Effect of Emancipation ................................. 71
PROPERTY .......................................................... 72
I. CLASSIFICATION OF PROPERTY ...... 73
A. Based on Mobility [Immovable or Movable]
................................................................................ 73
1. Real or Immovable Property [Art. 415,
Civil Code] – NIDA ....................................... 73
a. Immovables by Nature (Pars. 1, 2*[ if
they are spontaneous products of soil] and 8) –
[LBCR-E-MQS].......................................... 73
1. Land, Buildings, Roads and
Construictions of all kinds adhered to
the soil [Art. 415 (1), Civil Code] ........ 73
2. Everything attached to an immovable
object in a fixed manner, in such a way
that it cannot be separated therefrom
without breaking the material or
deterioration of the object [Art. 415(3),
Civil Code] .............................................. 73
3. Mines, Quarries, and Slag dumps,
while the matter thereof, forms part of
the bed, and waters either running or
stagnant [Art. 415(8), Civil Code] ....... 73
b. Immovables by Incorporation (Pars. 1,
2 [they are produced by lands of any kind
through cultivation or labor], 3, and 4) –
[LTEF] ......................................................... 73
1. Lands, Buildings, Roads, and
Constructions
of all kinds adhered to the soil [Art.
415(1), Civil Code] ................................. 74
2. Trees, plants, and growing fruits
while they are attached to the land or
form an integral part of an immovable
[Art. 415(2), Civil Code] ....................... 74
3. Everything attached to an immovable
object in a fixed manner, in such a way
that it cannot be separated therefrom
without breaking the material or
deterioration of the object [Art. 415(3),
Civil Code] .............................................. 74
4. Fertilizers ............................................ 74
c. Immovables by Destination (Paragraphs
4, 5, 6, 7, and 9) – [OMAFD] ................... 74
FOR UP CANDIDATES ONLY
1. Statutes, reliefs, paintings or other
objects for use or Ornamentation [Art.
415(4), Civil Code] ................................ 74
2. 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 to directly meet the needs
of the said industry or works [Art.
415(5), Civil Code] ................................ 74
3. Animal houses, etc. or breeding
places of similar nature, and the animals
in these places [Art. 415(6), Civil Code]
.................................................................. 75
4. Fertilizers ............................................ 75
5. Docks, and structures which,
although floating, are intended by their
nature to remain at a fixed place on a
river, lake, or coast [Art. 415(9), Civil
Code] (e.g. power barges [FELS Energy
v. The Province of Batangas, G.R. No.
168557 (2007)] ....................................... 75
d. Immovables by Analogy (Par. 10)....... 75
2. Personal or Movable [Arts. 416 and 417,
Civil Code] ....................................................... 75
3. Importance and Significance of
Classification under the Civil Code ............. 75
B. Based on Ownership/ Rights-Holder......... 76
1. Public Dominion ........................................ 76
2. Private Ownership ..................................... 76
3. Based on Consumability............................ 77
4. Based on Susceptibility to Substitution .. 77
5. Hidden Treasures ....................................... 77
6. Based on the Constitution ........................ 77
II. BUNDLE OF RIGHTS .......................... 78
A. Ownership ...................................................... 78
1. Rights of an Owner.................................... 78
a. Actions to Recover Ownership and
Possession of Real Property and its
Distinctions ................................................. 78
b. Actions to Recover Movable Property
...................................................................... 79
2. Limitations on Ownership ........................ 79
a. General Limitations ............................... 79
b. Specific Limitations ............................... 79
B. Rights of Accession ....................................... 80
1. General Principles ...................................... 80
2. For Immovables ......................................... 80
a. Accession Discreta ...................................... 80
b. Accession Continua .................................... 81
3. Case where LO, BPS, and OM are
different persons [Art. 455, Civil Code] ...... 87
a. Naturally Incorporated [Arts. 457-465,
Civil Code] .................................................. 88
1. Alluvium [Art. 457, Civil Code]........ 88
2. Avulsion [Art. 459, Civil Code] ........ 88
024344CIV
3. Uprooted Trees [Art. 460, Civil
Code] ....................................................... 89
4. Change of Course of River [Arts. 461462, Civil Code] ..................................... 89
5. Division of River into Branches [Art.
463 Civil Code] ...................................... 89
6. Formation of Islands [Arts. 464- 465,
Civil Code] .............................................. 90
4. For Movables .............................................. 90
a. Conjunction/Adjunction [Arts. 466471, Civil Code] .......................................... 90
b. Commixtion/ Confusion [Arts. 472473, 475, Civil Code] ................................. 91
c. Specification [Arts. 474-475, Civil Code]
....................................................................... 92
C. Actions to Recover Ownership and
Possession of Property ....................................... 93
1. Accion Reivindicatoria............................... 93
2. Accion Publiciana ....................................... 93
3. Accion Interdictal ....................................... 93
4. Quieting of Title ......................................... 94
a. Requisites ................................................. 94
b. Who may file .......................................... 94
c. Quieting of Title vs. Removing or
Preventing a Cloud..................................... 94
d. Prescription/Non-Prescription of
Action........................................................... 95
D. Co-Ownership................................................ 95
1. Requisites ..................................................... 95
2. Sources of Co-Ownership......................... 96
a. Law ........................................................... 96
b. Contract................................................... 96
c. Intestate Succession ............................... 96
d. Testamentary Disposition or Donation
Inter Vivos ..................................................... 96
e. By Fortuitous Event or by Chance ..... 96
f. By Occupancy ......................................... 96
3. Rights of Co-Ownership ........................... 96
a. Right to Share in the Benefits as Well as
the Charges [Art. 485, Civil Code]........... 96
1. Proportionality ................................... 96
2. Presumption of Equal Share............ 96
b. Right to Use the Thing Owned in
Common [Art. 486, Civil Code]............... 96
c. Right to Full Ownership of His Part and
of the Fruits and Benefits Pertaining
thereto [Art. 493, Civil Code] ................... 96
d. Right to Bring an Action in Ejectment
[Art. 487, Civil Code] ................................. 97
e. Right to Compel Other Co-Owners to
Contribute to the Expenses of
Preservation and to the Taxes [Art. 488,
Civil Code]................................................... 97
f. Right to Reimbursement for Necessary
Repairs [Arts. 488-489, Civil Code] ......... 98
g. Right to Oppose Alterations [Art. 491,
Civil Code]................................................... 98
FOR UP CANDIDATES ONLY
h. Right to Partition [Art. 494, Civil Code]
...................................................................... 98
i. Right to Redemption [Art. 1619, Civil
Code] ............................................................ 99
j. Right to Participate in Administration of
Property Owned in Common [Art. 492,
Civil Code] ................................................ 100
4. Rules ........................................................... 100
a. On Renunciation of Share .................. 100
b.
Repairs
for
Preservation
Embellishments or Improvements ....... 100
c. Rules on Multi-Story House [Art. 490,
Civil Code] ................................................ 101
5. Termination or Extinguishment ............ 101
a. Total Destruction of Thing or Loss of
the Property Co-Owned ......................... 102
b. Merger of All Interests in One Person
.................................................................... 102
c. Acquisitive Prescription ...................... 102
d. Partition or Division ........................... 102
e. Sale of Property Co-Owned [Art. 498,
Civil Code] ................................................ 103
f. Termination of Period Agreed Upon by
the Co-Owners [Art. 494, Civil Code] .. 103
E. POSSESSION .............................................. 103
1. Kinds of Possession................................. 103
a. Possession for Oneself, or Possession
Exercised in One’s Own Name and
Possession in the Name of Another [Art.
524, Civil Code] ........................................ 103
1. In One’s Own Name ...................... 103
2. In the Name of Another ................ 103
b. Possession in the Concept of a Holder
with the Ownership Belonging to Another
[Art. 525, Civil Code] .............................. 103
c. Possession in the Concept of an Owner
.................................................................... 104
d. Possession in Good Faith .............. 104
1. Relevance of Good Faith and Bad
Faith....................................................... 104
2. Rights of a Possessor in Good Faith
................................................................ 105
3. Other Consequences ...................... 106
2. Acquisition of Possession (including
possession based on tolerance) .................. 106
a. Ways of Acquiring Possession ........... 107
(1) By the Material Occupation of a
Thing or the Exercise of a Right....... 107
(2) By the Fact that the Thing is Subject
to the Action of Our Will .................. 107
(3) By the Proper Acts and Legal
Formalities Established for Acquiring
Such Right ............................................ 107
b. By Whom May Possession be Acquired
[Arts. 532-534, Civil Code] ..................... 107
1. His heirs............................................ 107
2. Preference of Possession [Art. 538,
Civil Code] ............................................ 107
024345CIV
3. What Does Not Affect Possession
................................................................108
3. Effects of Possession ...............................108
a. Possession in the Concept of Owner is
Converted into Ownership After the
Required Lapse of Time Necessary of
Prescription ...............................................108
b. Entitlement to Fruits/Expenses........109
(1) Possessor in Good Faith ..............109
(2) Possessor in Bad Faith ..................109
4. Rules for Movables ..................................110
F. Usufruct .........................................................110
1. In General ..................................................110
a. Characteristics .......................................110
b. Classifications .......................................111
2. Rights and Obligations of the
Usufructuary ..................................................112
a. Rights .....................................................112
(1) Rights as to the Thing and its Fruits
................................................................112
(2) Right to Natural and Industrial
Fruits Pending at the Beginning of
Usufruct ................................................112
(3) Right to Lease the Thing in Usufruct
................................................................113
(4) To Enjoy Any Increase Which the
Thing May Acquire Through Accession
................................................................114
(5) To Make Improvements on the
Property as He May Deem Proper ...114
(6) Right of Retention .........................114
b. Rights of the Owner ............................115
(1) At the beginning of the Usufruct 115
(2) During the Usufruct ......................115
c. Obligations ............................................115
(1) Obligations at the Beginning of the
Usufruct or before Exercising the
Usufruct ................................................115
(2) Obligations During the Usufruct 116
(3) Obligations at the Time of the
Termination of the Usufruct (RIPP) 116
3. Classes of Usufruct ..................................116
a. Usufruct constituted on certain rights
.....................................................................116
b. Usufruct on things which gradually
deteriorate ..................................................116
c. Usufruct on consumable things .........117
d. Usufruct on fruit-bearing trees and
shrubs .........................................................117
e. Usufruct on woodlands and nurseries
.....................................................................117
f. Usufruct of judicial action to recover 117
g. Usufruct of part of common property
.....................................................................117
4. Extinguishment of the Usufruct ............117
a. By the Death of the Usufructuary,
unless a Contrary Intention Clearly
Appears ......................................................117
FOR UP CANDIDATES ONLY
b. By the Expiration of the Period for
which it was Constituted......................... 117
c. By the Fulfillment of any Resolutory
Condition Provided in the Title Creating
the Usufruct .............................................. 117
d. By Merger of the Usufruct and
Ownership in the Same Person ............. 117
e. By Renunciation of the Usufructuary
.................................................................... 118
f. By the Total Loss of the Thing in
Usufruct ..................................................... 118
g. By the Termination of the Right of the
Person Constituting the Usufruct ......... 118
h. By Prescription .................................... 118
G. EASEMENTS ............................................. 118
1. Modes of Acquiring Easements ............. 118
a. By Title or by Something Equivalent to
a Title ......................................................... 118
b. By Law (Legal Easements) ................. 119
c. By Prescription ..................................... 119
2. Rights and Obligations of the Owners of
the Dominant and Servient Estates ........... 119
a. Rights of Dominant Estate Owner ... 119
b. Obligations of Dominant Estate Owner
.................................................................... 120
c. Rights of the Servient Estate Owner 120
d. Obligations of Servient Estate Owner
.................................................................... 120
3. Modes of Extinguishment ...................... 120
4. Legal vs. Voluntary Easements .............. 121
5. Kinds of Legal Easement ........................ 122
a. Relating to Waters................................ 122
(1) Natural Drainage [Art. 637, Civil
Code] ..................................................... 122
(2) Riparian Banks [Art. 638, Civil
Code] ..................................................... 122
(3) Abutment of a Dam [Art. 639, Civil
Code] ..................................................... 122
(4) Drawing Water and Watering
Animals [Arts. 640 and 641, Civil Code]
................................................................ 122
(5) Aqueduct [Arts. 642-646, Civil
Code] ..................................................... 122
(6) Stop Lock or Sluice Gate [Art. 647,
Civil Code] ............................................ 123
b. Right of Way ........................................ 123
c. Light and View [Arts. 667-673, Civil
Code] .......................................................... 125
1. Positive: Opening a window through a
party wall. ....................................................... 125
a. Period of prescription begins upon
the opening being made through the wall
of another. ................................................. 125
b. When a part owner of a party wall
opens a window therein, such act implies
the exercise of the right of ownership by
the use of the entire thickness of the wall.
125
024346CIV
c. The easement is created only after
the lapse of the prescriptive period. ......125
2. Negative: Opening a window through a
wall on the dominant estate. .......................125
a. Period of prescription begins upon the
formal prohibition upon the owner of the
adjoining land or tenement. ........................125
H. NUISANCE .................................................126
1. Classes ........................................................126
a. According to Nature ............................127
(1) Nuisance per se ................................127
(2) Nuisance per accidens ...................127
b. According to Scope of Injurious Effects
.....................................................................127
(1) Public Nuisance .............................127
(2) Private Nuisance ............................127
2. Doctrine of Attractive Nuisance ............127
3. Liability in Case of Nuisance ..................128
4. Regulation of Nuisances..........................128
a. Public Nuisance ....................................129
(1) Summary Abatement.....................129
(2) Need for Abatement .....................129
(3) Who May Abate Public Nuisances
................................................................129
b. Private Nuisance ..................................130
I. MODES OF ACQUIRING OWNERSHIP
..............................................................................130
1. Occupation ................................................131
a. Requisites ...............................................131
b. Rules ......................................................131
1. On Land............................................131
2. On animals .......................................131
3. On Other Personal Property ..................131
2. Tradition ....................................................132
3. Donation ....................................................132
a. Requisites [CADAF] ............................132
b. Features .................................................132
c. Persons Who May Give/Receive a
Donation....................................................132
d. Classifications .......................................133
e. Distinctions Between Mortis Causa and
Inter Vivos Donations ...............................133
f. Form .......................................................133
1. Movables ...........................................133
2. Immovables ......................................134
3. Onerous Donations ........................134
g. Effects and Limitations .......................134
h. Reduction and Revocation .................134
4. Prescription ....................................................135
a. Definition ...................................................135
b. Who May Acquire Ownership by
Prescription ....................................................135
c. Types...........................................................135
1. Acquisitive Prescription ......................135
2. Extinctive Prescription........................135
3. Distinctions Between Acquisitive and
Extinctive Prescription ............................135
FOR UP CANDIDATES ONLY
4. Distinctions Between Extinctive
Prescription and Laches .......................... 136
d. When Inapplicable ................................... 136
e. Prescription of Ownership and Other Real
Rights.............................................................. 137
f. Prescription of Actions ............................ 137
LAND TITLES AND DEEDS........................... 140
I. TORRENS SYSTEM .............................. 140
A. In General ..................................................... 140
1. The Torrens System................................. 140
2. Nature ........................................................ 140
3. Purpose ...................................................... 140
4. Background ............................................... 140
B. Concepts ........................................................ 140
1. Land Title .................................................. 140
2. Deed ........................................................... 140
3. Estate.......................................................... 141
4. Land Registration ..................................... 141
a. Nature of Land Registration .............. 141
b. Laws Implementing Land Registration
.................................................................... 141
c. Purpose of Land Registration ............ 142
d. Object of Registration ........................ 142
5. Classification of Lands [Sec. 3, Art. XII,
1987 Constitution] ........................................ 142
C. Administration of the Torrens System ..... 143
1. Land Registration Authority ................... 143
2. Register of Deeds ..................................... 143
II. REGALIAN DOCTRINE ..................... 144
A. Concept of the Regalian Doctrine ............ 144
B. Effects of the Regalian Doctrine ............... 145
C. Native Title and Ancestral Domains ........ 145
1. Native Title................................................ 145
2. Ancestral Domains................................... 145
III. NATIONALITY RESTRICTIONS ON
LAND OWNERSHIP ................................. 146
A. Individuals..................................................... 146
B. Corporations ................................................. 147
C. Limitations to Ownership of Land by
Corporations ...................................................... 147
1. For private lands: .................................... 147
2. For patrimonial property of the State [Sec.
3, Art. XII, 1987 Constitution] ................... 147
IV. ORIGINAL REGISTRATION (PD 1529)
..................................................................... 148
A. Concept ......................................................... 148
B. Voluntary or Involuntary ............................ 148
C. Who May Apply ........................................... 148
D. Jurisdiction.................................................... 150
E. Decree of Registration ................................ 150
F. Review of Decree of Registration; Innocent
Purchaser for Value (IPV); Rights of IPV .... 150
V. An Act Improving the Confirmation
Process for Imperfect Land Titles (RA 11573),
amending CA 141 and PD 1529 .................... 151
024347CIV
VI. CERTIFICATE OF TITLE ................. 152
A. The Torrens Title .........................................152
1. Original Certificate of Title (OCT) ........152
2. Transfer Certificate of Title (TCT) ........153
3. Patents ........................................................153
B. Probative Value ............................................153
C. Effects of Registration under the Torrens
System .................................................................153
1. Land is placed under the operation of the
Torrens system ..............................................153
2. Claims and liens prior to the decree of
registration .....................................................153
3. Title to the land becomes nonprescriptible ...................................................154
4. Torrens certificate is presumed valid and
devoid of flaws ..............................................154
D. Effect of Non-Registration ........................154
E. Dealings in Land before Issuance of Decree
..............................................................................155
F. Laches, When Applicable ............................155
VII. SUBSEQUENT REGISTRATION .... 156
A. In General .....................................................156
B. Voluntary Dealings.......................................156
1. Innocent purchaser for value and in good
faith .................................................................156
2. Mortgagee in good faith ..........................157
3. Reliance on title ........................................157
4. Double Sales ..............................................157
5. Forged Deed .............................................157
6. Registration of Voluntary Instruments in
General ...........................................................158
a. Registration of Dealings Less than
Ownership [Sec. 54, P.D. 1529] ........158
b. Registration of Deeds of Sale and
Transfers ...............................................159
c. Registration of Mortgages and Leases
[Sec. 60, P.D. 1529] .............................159
e. Registration of Trusts .....................160
C. Involuntary Dealings ...................................160
1. Attachments ..............................................160
2. Adverse Claim ...........................................161
3. Sale on Execution or For Taxes or
Assessments ...................................................162
4. Notice of Lis Pendens ................................163
VIII. NON-REGISTRABLE PROPERTIES
..................................................................... 164
A. Civil Code provisions dealing with nonregistrable properties.........................................164
1. Properties of public dominion [Art. 420,
Civil Code] .....................................................164
2. Waters under Art. 502, Civil Code.........165
B. Specific kinds of non-registrable properties
or lands................................................................165
1. Forest or timberland, public forest, forest
reserves ...........................................................165
2. National parks ...........................................165
3. Mangrove swamps ....................................165
FOR UP CANDIDATES ONLY
4. Mineral lands ............................................. 165
5. Foreshore land and seashore and
reclaimed lands.............................................. 165
6. Lakes .......................................................... 165
7. Creeks and Streams .................................. 165
8. Military or Naval Reservations ............... 165
9. Watershed .................................................. 165
10. Grazing lands .......................................... 165
11. Previously titled land ............................. 166
12. Alluvial deposit along river when manmade ............................................................... 166
13. Reservations for public and semi-public
purposes ......................................................... 166
C. Patrimonial Property ................................... 166
X. ASSURANCE FUND ............................. 167
A. Nature of Assurance Fund ......................... 167
B. Conditions for Compensation from
Assurance Fund ................................................. 167
C. Prescriptive Period ....................................... 167
D. Action of compensation from funds........ 167
E. Limitation of Action .................................... 168
XI. RECONSTITUTION OF TITLES ..... 168
A. Kinds.............................................................. 168
SUCCESSION ..................................................... 170
I. General Provisions ................................... 170
A. Definition ...................................................... 170
1. Kinds of Succession................................. 170
2. Scope of Inheritance ................................ 170
B. Rules on Opening of Succession .............. 170
1. The rights to succession are transmitted
from the moment of the death of the
decedent [Art. 777, Civil Code] .................. 170
2. A person may be “presumed” dead for the
purpose of opening his succession after
absence of: ..................................................... 171
C. Subjects of Succession................................. 171
1. Kinds of Successors/ Heirs .................... 171
II. Testamentary Succession ....................... 172
A. General Provisions ...................................... 172
B. Wills ................................................................ 172
1. Kinds of Wills ........................................... 172
2. Characteristics of Wills: ........................... 172
a. Purely personal ................................ 172
b. Free and intelligent [Art. 839,
Civil Code]........................................... 172
c. Solemn or formal ............................ 172
d. Revocable and ambulatory ............ 172
e. Mortis causa ........................................ 172
f. Individual .......................................... 172
g. Executed with animus testandi ......... 173
h. Executed with testamentary capacity
................................................................ 173
i. Unilateral act ..................................... 173
j. Dispositive......................................... 173
k. Statutory grant ................................. 173
C. Non-Delegability of Testamentary Power173
024348CIV
D. Applicable Law as to Form and Substance
of a Will...............................................................173
E. Testamentary Capacity ................................173
F. Forms of Wills ..............................................174
1. Attested or Notarial Wills .......................174
a. Formal requirements for notarial
wills: .......................................................174
b. Witnesses to a Notarial Will
(Qualification and Disqualifications) 176
c. Rules on Interested Witness [Art.
823, Civil Code] ...................................176
2. Holographic Wills.....................................176
a. Formal requirements: ......................176
b. Witnesses Required for Probate [Art.
811, Civil Code] ...................................177
c. Additional Dispositions ..................177
d. Insertion, Cancellation, Erasure or
Alteration [Art. 814, Civil Code] .......177
e. Effect of Insertion Written by
Another Person on the Validity of a
Holographic Will .................................177
3. Other Types of Wills................................177
a. Joint wills ..........................................177
b. Mutual wills ......................................178
c. Reciprocal wills ................................178
G. Codicil and Incorporation by Reference ..178
1. Codicil ........................................................178
2. Incorporation by Reference ....................178
H. Conflict Rules ...............................................178
I. Modes of Revocation of Wills and
Testamentary Dispositions ..............................179
1. Effect on the Recognition of a NonMarital Child ..................................................179
2. Theory of Dependent Relative Revocation
.........................................................................179
3. Revocation Based on a False Cause ......180
4. Republication and Revival.......................180
J. Allowance and Disallowance of Wills ........180
1. Kinds of Probate ......................................180
2. Scope of Probate Proceedings [Art. 839,
Civil Code] .....................................................180
3. Effect of Final Decree of Probate, Res
Judicata on Formal Validity ..........................181
4. Grounds for Denying Probate ...............181
K. Heirs...............................................................181
1. Compulsory Heirs ....................................181
a. Classes of Compulsory Heirs [Art. 887,
Civil Code].................................................181
2. Institution of Heirs...................................181
a. Limitations on the Institution of Heirs
.....................................................................182
1. Extent of Grant [Art. 842, Civil
Code] .....................................................182
2. Effect of Predecease of Heir [Art.
856, Civil Code] ...................................182
b. Collective Institution ...........................182
c. Proscription Against Collective
Institution ..................................................182
FOR UP CANDIDATES ONLY
d. Institution Based on a False Cause ... 182
e. Manner of Distribution:...................... 182
f. Declaration of Heirship, as decided in
Treyes v. Larlar, G.R. No. 232579 (2020)
.................................................................... 183
3. Substitution of Heirs ............................... 183
a. Causes of Substitution......................... 183
b. Kinds of Substitution:......................... 183
1. Brief or Compendious [Art. 860,
Civil Code] ............................................ 183
2. Reciprocal [Art. 861, Civil Code] .. 183
3. Simple Substitution [Art. 859, Civil
Code] ..................................................... 183
4.
Fideicommissary
Substitution
(Compared With Testamentary Trusts)
................................................................ 184
L. Legitime ......................................................... 184
1. Specific Rules on Legitime:..................... 184
a. Direct Descending Line ............ 184
b. Direct Ascending Line ................... 185
2. Collation in Connection With the
Computation of Legitime ............................ 185
3. Table of Legitime ..................................... 187
4. Impairment of the legitime ..................... 189
a. Remedy of a Compulsory Heir in Case
of Impairment of Legitime ..................... 189
b. Method of Reduction [Art. 911, Civil
Code] .......................................................... 190
c. How are Devises and Legacies with
usufructs, life annuities and pensions
reduced?..................................................... 190
5. Presumptive Legitime .............................. 190
M. Preterition..................................................... 191
1. Concept [Art. 854, Civil Code]............... 191
2. Requisites ................................................... 191
3. Governing Law ......................................... 191
4. Omission of Heir from Inheritance ...... 191
5. No Preterition ........................................... 191
6. Distinguished from Disinheritance ....... 191
N. Conditional Dispositions ........................... 192
1. Condition Not to Marry .......................... 192
2. Disposicion Captatoria ............................ 192
3. Modal Institution...................................... 192
O. Void Testamentary Dispositions .............. 192
P. Disinheritance ............................................... 192
1. Effect of Disinheritance.......................... 193
2. Grounds for Disinheritance ................... 193
a. Causes Common to Disinheritance and
Unworthiness............................................ 193
b. Ineffective disinheritance [Art. 918,
Civil Code] ................................................ 193
3. Requisites for the Various Grounds for
Disinheritance ............................................... 194
4. Modes of Revocation of Disinheritance:
......................................................................... 195
5. Reconciliation [Art. 922, Civil Code] .... 196
a. Effects of reconciliation...................... 196
Q. Legacies and Devises .................................. 196
024349CIV
1. Requisites for Validity ..............................196
a. Persons Charged with the Duty to Give
Legacies and Devises in a Will ...............196
2. Validity and Effect of Legacy or Devise
.........................................................................196
3. Delivery of Legacy/Devise [Art. 951, Civil
Code]...............................................................197
4. Property Not Owned by the Testator ...197
5. Ineffective Legacies/Devises..................197
a. Effect of Ineffective Legacies or
Devises [Art. 956, Civil Code] ................197
6. Revocation of Legacies and Devises [Art.
957, Civil Code].............................................197
III. Legal and Intestate Succession ............ 198
A. General Provisions; Relationship and Right
of Representation ..............................................198
1. Fundamental Principles in Intestate
Succession ......................................................198
2. Relationship ...............................................198
3. Incapacity [Art. 968, Civil Code] ............198
4. Repudiation [Arts. 968-969, Civil Code]
.........................................................................198
5. Adoption [Art. 189, Family Code] .........198
6. Right of Representation...........................199
B. Causes of Intestacy.......................................199
C. Order of Intestate Succession ....................200
1. Rules of Exclusion and Concurrence in
Intestate Shares .............................................200
2. Outline of Intestate Shares .....................201
D. Rule of Proximity and Rule of Equality ...202
E. Determination of Heirs ...............................203
F. Successional Barrier......................................203
G. Successional Rights of Adopted Children203
H. Successional Rights of Adopting Parents 203
I. Successional Rights of Marital and NonMarital Children .................................................203
J. Successional Rights of the Surviving Spouse
..............................................................................204
K. Successional Rights of Collateral Relatives
..............................................................................204
IV. Provisions Common to Testate and
Intestate Succession .................................... 204
A. Capacity to Succeed .....................................204
1. Requisites for Capacity to Succeed by Will
or by Intestacy [Art. 1024 – 1025, Civil
Code]...............................................................204
a. Persons Incapable of Succeeding [Arts. 1027,
739, 1032, Civil Code] ......................................204
2. Incapacity by Reason of Unworthiness and
Effects of Condonation [Art. 1032, Civil
Code]...............................................................204
3. Incapacity by Reason of Morality or Public
Policy [Arts. 739 and 1028, Civil Code] ....205
4. Incapacity by Reason of Possible Undue
Influence ........................................................205
5. Determination of Capacity ......................205
FOR UP CANDIDATES ONLY
B. Right of Representation in Testacy and
Intestacy.............................................................. 205
1. Requisites and Limitations ...................... 205
C. Right of Accretion in Testamentary
Succession and in Intestacy ............................. 206
1. Requisites and Limitations ...................... 206
D. Acceptance and Repudiation of Inheritance
............................................................................. 207
1. Requisites [Art. 1043, Civil Code].......... 207
2. Forms of Acceptance [Arts. 1049 – 1050,
Civil Code] ..................................................... 207
3. Form of Repudiation [Art. 1051, Civil
Code] .............................................................. 207
4. Heirs in Two (2) Capacities [Art. 1055,
Civil Code]: .................................................... 207
5. Irrevocability of Acceptance or
Repudiation [Art. 1056, Civil Code] .......... 208
6. Effects of Repudiation Compared to
Predecease and Incapacity........................... 208
OBLIGATIONS AND CONTRACTS .............. 209
OBLIGATIONS .......................................... 210
I. GENERAL PROVISIONS ...................... 210
A. Definition ...................................................... 210
B. Elements of an obligation ........................... 210
1. Active Subject (Obligee/Creditor) ........ 210
2. Passive Subject (Obligor/Debtor) ......... 210
3. Prestation (Object) ................................... 210
C. Sources of obligations ................................. 210
1. Law ............................................................. 210
2. Contracts ................................................... 210
3. Quasi-Contracts ........................................ 210
4. Acts or Omissions Punishable by
Law/Delicts ................................................... 210
5. Quasi-Delicts ............................................ 210
II. NATURE AND EFFECT ..................... 211
A. Obligation to give ........................................ 211
1. Types of Things ........................................ 211
2. Rights and Duties of Parties ................... 211
B. Obligation to do or not to do .................... 212
1. Rights and Duties of Parties ................... 212
C. Transmissibility of obligations ................... 213
D. Performance of Obligations ...................... 213
1. Definition .................................................. 213
2. General Rule/Requirement .................... 213
3. Exceptions ................................................. 213
i. Substantial Performance ...................... 213
ii. Incomplete/Irregular performance... 213
iii. Partial Liquidation .............................. 213
E. Breaches of Obligations .............................. 213
1. Failure to Perform.................................... 214
2. Default, Delay, or Mora ........................... 214
i. Kinds of Delay ...................................... 215
3. Fraud (Dolo) in the Performance of the
Obligation ...................................................... 216
i. Requisites for Fraud to Vitiate a
Contract (Dolo Causante) .......................... 216
024350CIV
4. Negligence (Culpa) in the Performance of
the Obligation................................................217
a. Common Carriers.................................217
b. Hotel and inn-keepers .........................217
c. Banks ......................................................217
d. Pharmacists ...........................................217
5. Contravention of the Tenor of the
Obligation ......................................................218
F. Remedies Available to Creditor in Cases of
Breach .................................................................218
1. Principal Remedies of Creditors ............218
2. Subsidiary Remedies of Creditors ..........220
i. Accion Subrogatoria .............................220
ii. Accion Pauliana ....................................220
III. KINDS OF OBLIGATIONS ............... 221
A. Pure ................................................................221
B. Conditional ....................................................221
1. Kinds of Conditions as to Effect ...........221
i. Suspensive ..............................................221
ii. Resolutory .............................................222
2. Kinds of Conditions as to Cause/Origin
.........................................................................222
i. Potestative ..............................................222
ii. Casual .....................................................222
iii. Mixed ....................................................222
3. Impossible Conditions .............................224
4. Positive And Negative Conditions ........224
C. Obligation with a Period or a Term ..........224
1. Kinds of Period [Art. 1193, Civil Code]
.........................................................................225
2. Effect of Advance Payment or Delivery
[Art. 1195, Civil Code] .................................225
3. Loss, Deterioration, or Improvement of
the Thing Before Period Expires [Art. 1194,
Civil Code] .....................................................225
4. Benefit of the Period [Art. 1196, Civil
Code]...............................................................225
5. When Courts May Fix Period .................226
D. Alternative or Facultative ...........................227
E. Joint and Solidary Obligations ...................228
1. Joint Obligations.......................................228
i. Presumption of Joint Obligation [Art.
1207, Civil Code] ......................................229
ii. Presumption of Divisibility in Joint
Obligations [Art. 1208, Civil Code] .......229
2. Solidary Obligations .................................230
i. Kinds of Solidary Obligations.............230
ii. Defenses Available to a Solidary Debtor
[Art. 1222, Civil Code].............................231
a. Those derived from the nature of the
obligation ..............................................231
b. Those personal to him....................232
c. Those pertaining to his own share 232
d. Those personally belonging to other
co-debtors but only as regards that part
of the debt for which the latter are
responsible. ...........................................232
FOR UP CANDIDATES ONLY
iii. Loss of the thing or impossibility of
performance of the passive/mixed
solidary obligation [Art. 1221, Civil Code]
.................................................................... 232
F. Obligations with a Penal Clause................. 232
1. Rules on Penalty ....................................... 232
2. Enforcement of the Penalty ................... 233
3. Proof of Actual Damage ......................... 233
4. When Penalty may be Reduced [Art. 1229,
Civil Code]: .................................................... 233
IV.
EXTINGUISHMENT
OF
OBLIGATIONS ......................................... 233
A. Modes of Extinguishing Obligations [Par. 1,
Art. 1231, Civil Code] ....................................... 233
B. Other Modes of Extinguishing Obligations
[Par. 2, Art. 1231, Civil Code] ......................... 233
C. Other Forms of Extinguishment Not Found
in Art. 1231 ........................................................ 234
1. Payment or Performance ........................ 234
i. Definition ............................................... 234
ii. Object of Payment .............................. 234
iii. Necessity of Complete Performance
[Art. 1248, Civil Code] [CD] .................. 234
iv. By whom .............................................. 235
v. To whom............................................... 236
vi. Place of Payment ................................ 236
vii. Time of Payment ............................... 236
viii. Form of Payment ............................. 236
2. Application of Payments ......................... 237
3. Dation in Payment ................................... 238
4. Tender of Payment and Consignation .. 239
i. Definitions ............................................. 239
a. Tender of payment .......................... 239
b. Consignation .................................... 239
ii. Requisites of Consignation................. 239
iii. When tender and refusal not required/
Consignation alone is sufficient [Art. 1256,
Civil Code] ................................................ 240
iv. What Constitutes Valid Consignation
.................................................................... 240
v. How Consignation Is Made ............... 240
vi. Who Bears the Expenses................... 240
vii. Effects of Consignation.................... 240
viii. Withdrawal of Consigned Amount by
the Debtor ................................................. 240
5. Loss of determinate thing due or
Impossibility or difficulty of performance 241
i. Loss ......................................................... 241
a. Loss of Determinate Things .......... 241
b. Loss of Generic Things ................. 241
c. Partial Losses ................................... 241
d. Presumption of Fault ..................... 242
e. Loss in Obligations to Give with
Resolutory Conditions ........................ 242
f. Creditors’ Rights .............................. 242
ii. Impossibility of Performance ............ 242
a. In General......................................... 242
b. Types of Impossibility .................... 243
024351CIV
1. Physical and Legal.......................243
2. Subjective and Objective ...........243
3. Partial Impossibility ....................243
iii. Unforeseen Difficulty.........................243
C. Condonation or Remission of Debt..........244
i. Definition and General Rules ..................244
ii. Kinds of Remission ..................................244
a. Express Remission ...............................244
b. Implied Remission ...............................245
c. Partial Remission ..................................246
D. Confusion .....................................................246
1. Definition...................................................246
2. Requisites ...................................................246
3. Effects ........................................................246
i. In general ................................................246
ii. Confusion among the Guarantors ....246
iii. In case of joint or solidary obligations
.....................................................................246
E. Compensation ...............................................247
1. Requisites ...................................................247
2. Nature and Effects ...................................247
i. General Rule ..........................................247
ii. By Operation of Law...........................247
iii. Compensation Distinguished from
Other Modes of Extinguishment ..........247
3. Kinds of Compensation ..........................248
i. As to extent ............................................248
a. Total ...................................................248
b. Partial ................................................248
ii. As to cause ............................................248
a. Legal Compensation........................248
b. Voluntary Compensation ...............248
c. Judicial Compensation ....................248
d. Facultative Compensation .............249
F. Novation ........................................................249
1. In General ..................................................249
i. Requisites:...............................................249
ii. Effects....................................................250
2. Kinds of Novation ...................................251
i. As to Form .............................................251
a. Express ..............................................251
b. Implied ..............................................251
ii. As to extent or effect [Tomimbang v.
Tomimbang, G.R. No. 165116 (2009)] ....251
iii. As to Essence or Object ....................251
a. Objective/Real .................................251
b. Subjective/Personal ........................251
c. Mixed .................................................251
3. Substitution of Debtors ...........................252
4. Subrogation ...............................................253
I. GENERAL PROVISIONS...................... 253
A. Definition ......................................................253
B. Elements of a Contract ...............................253
II. BASIC PRINCIPLES OF CONTRACTS
..................................................................... 254
A. Obligatory force between the Parties........254
1. General Rule: Freedom to Contract ......254
FOR UP CANDIDATES ONLY
2. Exceptions ................................................. 254
a. When it is inequitable [Art. 1310]...... 254
b. Special Disqualifications ..................... 254
c. What may not be stipulated................ 255
2. Mutuality .................................................... 255
a. General Rule ......................................... 255
b. Exception.............................................. 255
3. Relativity .................................................... 255
a. General Rule ......................................... 255
b. Exceptions ............................................ 255
i. Contracts creating real rights .......... 255
ii. Contracts in fraud of creditors ...... 255
4. Stipulations in favor of a third person
(stipulation pour autrui) ................................. 255
5. Freedom to Stipulate (Autonomy of the
Will) and its Limitations .............................. 256
6. Binding Effect of a Contract .................. 256
7. Privity of Contract ................................... 256
a. Concept: Contracts take effect only
between the parties, their assigns and heirs
.................................................................... 256
b. No one may contract in the name of
another ....................................................... 256
c. Stipulations in favor of third persons256
8. Consensuality of Contracts ..................... 256
a. Concept and Coverage ........................ 257
b. Exceptions ............................................ 257
c. Reformation of Instruments .............. 257
i. In general ........................................... 257
ii. Requisites [Art. 1359, Civil Code] 257
iii. Burden of Proof ............................. 258
iv. Effect of Reformation ................... 258
v. Cases Where Reformation is Proper
................................................................ 258
f. Cases Where Reformation is Not
Proper.................................................... 259
g. Prescriptive Period for Reformation
................................................................ 259
h. Who May Ask for Reformation .... 259
III. ESSENTIAL REQUISITES ............... 259
A. Consent ......................................................... 259
1. Definition .................................................. 259
2. Requisites for Valid Consent .................. 260
3. Concurrence of Offer and Acceptance. 260
i. Offer ....................................................... 260
ii. Acceptance............................................ 261
4. Necessary Legal Capacity ........................ 261
5. Consent Must be Intelligent, Free,
Spontaneous and Real.................................. 262
i. Mistake ................................................... 262
ii. Intimidation .......................................... 263
iii. Violence ............................................... 263
iv. Undue Influence ................................. 264
v. Fraud (Dolo causante)............................. 264
6. Simulation of Contracts .......................... 265
i. Absolute vs. Relative Simulation [Art.
1345, Civil Code]...................................... 265
B. Object ............................................................ 266
024352CIV
1. Requisites ...................................................266
2. What may be the object of a contract ...266
i. General Rule ..........................................266
ii. Exceptions [Arts. 1347-1349, Civil
Code] ..........................................................266
iii. Exceptions to the Exception ............266
C. Cause or Consideration ...............................267
1. Requisites ...................................................267
2. Presumption ..............................................267
3. Cause vs. Object .......................................267
4. Distinguished from Motive .....................267
5. Cause in contracts [Art. 1350, Civil Code]
.........................................................................267
6. Effect of Lack of Cause, Unlawful Cause,
False Cause and Lesion [Arts. 1352-1355,
Civil Code] .....................................................268
IV. DEFECTIVE CONTRACTS ............... 268
A. Rescissible contracts ....................................269
1. Rescission ..................................................269
2. Characteristics of Rescissible Contracts269
3. Rescissible Contracts and Their Requisites
.........................................................................269
i. Requisites for Rescission under Arts.
1381 (1) and (2), Civil Code....................270
ii. Requisites before a Contract Entered
into In Fraud of Creditors May Be
Rescinded under Art. 1381 (3), Civil Code
.....................................................................270
iii. Requisites Before Payment Made by
Insolvent can be Rescinded ....................271
4. Effects of Rescission [Art. 1385, Civil
Code]...............................................................271
5. Presumption of Fraud..............................271
6. Resolution and rescission distinguished271
B. Voidable contracts........................................272
1. Characteristics of Voidable Contracts ...273
2. Who may institute action for annulment
.........................................................................273
3. Effects of Annulment ..............................273
4. Modes of Validating a Voidable Contract
.........................................................................274
a. Prescription ...........................................274
b. Ratification ............................................274
c. Loss of the Thing .................................275
C. Unenforceable Contracts ...........................275
1. Characteristics ...........................................275
2. Kinds of Unenforceable Contracts [Art.
1403, Civil Code] ..........................................275
D. Void or inexistent contracts.....................276
1. Characteristics ...........................................277
2. Divisibility of Contracts ..........................278
3. In Pari Delicto Principle (in pari delicto,
non oritur actio) [Art. 1411, Civil Code] ...278
i. General Rules ........................................278
ii. Exceptions to the Principle of In Pari
Delicto: .........................................................278
OBLIGATIONS .......................................... 279
FOR UP CANDIDATES ONLY
I. IN GENERAL ........................................ 279
A. Concept ......................................................... 279
B. Conditions Necessary for Natural
Obligations ......................................................... 279
C. Types of Obligations in Juridical Science. 280
II.
CONVERSION
TO
CIVIL
OBLIGATIONS ......................................... 280
III.
EXAMPLES
OF
NATURAL
OBLIGATIONS .......................................... 281
A. Performance after Prescription ................. 281
1. Voluntary Performance by Obligor....... 281
2. When Third Person Pays the Debt ....... 281
B. Contracts Made by a Minor ........................ 281
1. Minor Voluntarily Returns Payment ..... 281
2. Minor Voluntarily Pays............................ 281
3. Arts. 1426 and 1427, Civil Code,
distinguished .................................................. 282
C. Performance by Winning Party.................. 282
D. Payment beyond Inheritance ..................... 282
E. Payment of a Void Legac............................ 282
QUASINTRACTS ...................................... 283
I. IN GENERAL ........................................ 283
II.
NEGOTIORUM
GESTIO
(UNAUTHORIZED MANAGEMENT) .. 283
A. Obligations of a Gestor .............................. 283
1. Observe the requisite standard of diligence
......................................................................... 283
2. Liability in the management of the
property .......................................................... 283
B. Obligations of the Owner of the Property or
Business .............................................................. 284
C. Effect of Ratification ................................... 284
D. Extinguishment of Management............... 284
i. Requisites .................................................... 284
ii. When Debt not yet Due.......................... 285
iii. Responsibility of Two or More Payees 285
iv. When Money or Thing Delivered is
Owned by Third Person .............................. 285
v. Liability of Payee ...................................... 285
vi. Exemption from the Obligation to
Restore the Payment Unduly Made ........... 285
vii. Presumption of Payment by Mistake,
Defense .......................................................... 285
III.
SOLUTIO
INDEBITI
(UNDUE
PAYMENT) ............................................... 285
A. Requisites ...................................................... 285
B. When Debt not yet Due ............................. 286
C. Responsibility of Two or More Payees..... 286
D. When Money or Thing Delivered is Owned
by Third Person................................................. 286
E. Liability of Payee .......................................... 286
F. Exemption from the Obligation to Restore
the Payment Unduly Made .............................. 286
G. Presumption of Payment by Mistake,
Defense ............................................................... 286
024353CIV
IV. OTHER QUASI-CONTRACTS .......... 287
V. ESTOPPEL ............................................ 288
A. Definition ......................................................288
B. Kinds of Estoppel ........................................288
1. Equitable Estoppel or Estoppel in pais
[Art. 1433, Civil Code] .................................288
2. Technical Estoppels .................................288
3. Estoppel by Judgment .............................288
4. Estoppel by laches ....................................288
C. Persons Bound..............................................288
D. Cases Where Estoppel Applies..................288
1. Sale or alienation of a thing which does
not belong to the seller or grantor and later
on acquire title thereto [Art. 1434, Civil
Code]...............................................................288
2. Agent sells or alienates a thing [Art. 1435,
Civil Code] .....................................................288
3. Title of the lessee or bailee against the
lessor or bailor [Art. 1436, Civil Code]......289
4. Contract between third persons
concerning immovable property where one
of them is misled by a person with respect to
the ownership or real right over the real
estate [Art. 1437, Civil Code] ......................289
5. One who has allowed another to assume
apparent ownership of personal property for
the purpose of making any transfer of it,
cannot, if he received the sum for which a
pledge has been constituted, set up his own
title to defeat the pledge of the property,
made by the other to a pledgee who received
the same in good faith and for value [Art.
1438, Civil Code] ..........................................289
TRUSTS ...................................................... 290
I. IN GENERAL ......................................... 290
A. Definition ......................................................290
1. Characteristics of Trust ...........................290
2. Distinguished from Other Concepts .....290
A. EXPRESS TRUST ......................................292
B. IMPLIED TRUST .......................................292
1. Kinds of Implied Trusts ..........................293
a. Resulting Trusts ....................................293
b. Constructive Trusts .............................295
SALES AND LEASE .......................................... 296
I. Sales .........................................................297
A. Definition and Essential Requisites...........297
1. Consent of contracting parties ...............297
2. Object certain which is the subject matter
of the contract ...............................................298
a. Must be licit...........................................298
b. Existing, Future, Contingent..............298
c. Determinate or Determinable ............299
3. Cause of the obligation which is
established ......................................................299
a. Requisites of a valid price ...................299
FOR UP CANDIDATES ONLY
b. How price is determined/when certain
.................................................................... 299
c. Inadequacy of price ............................. 300
d. When no price is agreed upon ........... 300
e. False price vs simulated price............. 300
4. Perfection .................................................. 300
a. Meeting of Minds ................................. 300
b. Option contracts.................................. 300
c. Right of first refusal............................. 301
d. Mutual promise to buy and sell ......... 301
B. Contract of Sale ............................................ 301
1. Donation.................................................... 301
2. Barter .......................................................... 302
3. Contract for a Piece of Work ................. 302
4. Dacion en Pago ........................................ 302
5. Agency to Sell ........................................... 302
6. Lease........................................................... 302
C. Earnest Money ............................................. 303
D. Double Sales [Art. 1544, NCC] ................. 303
E. Risk of Loss .................................................. 303
a. Res Perit domino [Arts. 1263, and 1189
NCC] .............................................................. 304
b. Prior to Perfection of Contract.............. 304
c. At Time of Perfection [Arts. 1493 and
1494, NCC].................................................... 304
d. After Perfection but Before Delivery ... 305
e. After Delivery ........................................... 305
F. Breach of Contract of Sale .......................... 305
1. Remedies.................................................... 305
a. Remedies of the Seller ......................... 306
2. Sale of Goods ........................................... 306
3. Special Remedies of the Unpaid Seller
[Arts. 1525-1535 of the NCC] .................... 307
a. Remedies of the Buyer ........................ 310
1. Sale of Movables ............................. 310
2. Sale of Immovables [Arts. 15391543] ...................................................... 311
4. Recto Law: Sale of Movables on
Installment [Arts. 1484-1486, NCC] ......... 312
a. Specific Performance........................... 312
b. Cancellation of sale if vendee fails to
pay 2 or more installments ..................... 312
c. Foreclosure of Chattel Mortgage if
vendee fails to pay 2 or more installments
.................................................................... 312
5. Maceda Law .............................................. 312
G. Extinguishment of Sale .............................. 313
1. In general ................................................... 313
2. Conventional Redemption / Pacto de retro
sale .................................................................. 313
a. Period [Art.1606, NCC] ...................... 313
b. By Whom Exercised ........................... 313
c. From Whom to Redeem..................... 313
d. How Exercised..................................... 314
e. Effect of Redemption ......................... 314
f. Effect of non-redemption................... 314
g. Right to Redeem v. Option to Purchase
.................................................................... 314
024354CIV
3. Legal Redemption ....................................315
a. Definition [Art. 1619, NCC] ..............315
b. Period to redeem [Art. 1623, NCC] ..315
c. Who may exercise ................................315
4. Equitable Mortgage ..................................315
a. Presumption that a contract is an
equitable mortgage ...................................316
b. Requisites for presumption of an
equitable mortgage ...................................316
c. Rationale behind provision on equitable
mortgage ....................................................316
d. Remedies of apparent vendor ............317
e. Period of redemption ..........................317
f. Exercise of the right to redeem [Art.
1616, NCC] ...............................................317
g. How redemption is exercised .............317
II. Lease....................................................... 318
A. General Provisions.......................................318
1. Definition...................................................318
a. Who is Qualified or Disqualified? .....318
b. Transfer of Lease .................................319
c. Warranties .............................................319
d. Termination ..........................................320
B. Kinds of Lease ..............................................320
1. Lease of Things.........................................320
2. Lease of Work and Service .....................320
C. Rights and Obligations of the Lessor........320
1. Obligations of a Lessor ...........................320
2. Rights of a Lessor .....................................321
a. To engage in a business .......................321
b. To Eject the Lessee (Unlawful
Detainer) ....................................................321
D. Rights And Obligations Of The Lessee ...321
1. Obligations of a Lessee............................321
2. Rights of a Lessee .....................................322
a. To Sublease ...........................................322
b. To Reduce or Rescind in case of FE 322
c. To make use of the period..................322
d. To not be ejected during redemption
period .........................................................322
AGENCY ............................................................. 323
I. NATURE, FORM, AND KINDS ........... 324
A. Nature and Elements ...................................324
B. Form ...............................................................326
C. Kinds ..............................................................326
1. As to Manner of Creation .......................326
2. As to Scope of Business ..........................327
3. As to Authority Conferred ......................327
4. Other Kinds of Agency ...........................327
a. Agency by estoppel ..............................327
b. Agency by operation of law ...............328
D. Carry Out the Agency .................................328
E. Prefer the Interest of the Principal Over His
Own .....................................................................328
F. Render an Account, and Deliver ................329
G. Summary of Liabilities for Damages ........329
FOR UP CANDIDATES ONLY
H. Liability to Pay Interest [Art. 1896, Civil
Code] ................................................................... 329
I. Liability for Acts of Substitutes [Arts. 18921893, Civil Code] ............................................... 329
1. Liability of the agent for his substitutes 330
J. Obligations of Commission Agents [Arts.
1903-1908, Civil Code] ..................................... 330
1. Responsibility for goods received [Art.
1903, Civil Code] .......................................... 330
2. Goods belonging to different owners [Art.
1904, Civil Code] .......................................... 330
3. Failure to collect credits [Art. 1908, Civil
Code] .............................................................. 330
d. Sale on credit ........................................ 330
II. OBLIGATIONS OF THE PRINCIPAL
..................................................................... 331
A. Comply with the Obligations Contracted by
the Agent ............................................................ 331
B. Advance or Reimburse Sums Necessary .. 331
1. The principal is not liable for the expenses
incurred by the agent in certain cases [Art.
1918, Civil Code] .......................................... 332
C. Indemnify the Agent for Injury ................. 332
D. Compensate the Agent ............................... 332
E. Scope and Nature of the Liability of the
Principal .............................................................. 333
1. Solidary Liability ....................................... 333
2. If the Contract Involves Things Belonging
to the Principal .............................................. 333
IV. MODES OF EXTINGUISHMENT ... 333
A. Summary ....................................................... 333
B. Revocation .................................................... 334
1. In General ................................................. 334
2. When Revocation is Not Binding on Third
Persons ........................................................... 334
a. When Notice is Required.................... 334
b. When a Third Person in Good Faith
Has No Knowledge of Revocation ....... 334
3. Appointment of New Agent .................. 334
4. Direct Management by the Principal .... 335
5. General authority revoked by special
authority ......................................................... 335
6. When Agency Cannot be Revoked ....... 335
C. Withdrawal by the Agent ............................ 335
D. Death, Civil Interdiction, Insanity or
Insolvency .......................................................... 335
1. In General ................................................. 335
2. Exceptions ................................................. 336
a. Agency Coupled with an Interest ...... 336
b. Contract between Agent Without
Knowledge of Death and Third Person in
Good Faith................................................ 336
c. Unfinished business............................. 336
3. In case of the death of an agent ............. 336
E. Dissolution, Accomplishment, or Expiration
............................................................................. 336
CREDIT TRANSACTIONS .............................. 337
024355CIV
I. LOAN ...................................................... 338
A. Kinds ..............................................................338
1. Nature.........................................................338
2. Purpose ......................................................338
a. As to Object ..........................................339
b. As to Ownership of the Thing Loaned
.....................................................................339
c. As to Consideration .............................339
d. As to Obligations of the Borrower ...339
e. As to Liability for Loss ........................340
f. Commodatum .......................................340
3. Parties .........................................................340
a. Use by the Bailee ..................................340
i. As to Who May Use of the Property
Loaned ...................................................340
ii. As to the Use of Fruits of the Thing
Loaned ...................................................340
b. Obligations of the Bailee (TUNR-PBS)
.....................................................................340
c. Obligations of the Bailor (DR-BP)....341
d. Liability for Deterioration ..................341
e. Liability for Loss ..................................341
f. Right of Retention ................................342
g. Extinguishment (DEA-PU)................342
4. Mutuum or Simple Loan .........................342
a. Obligations of the Borrower (EVI) ...342
b. Obligations of the Creditor ................342
5. Precarium ...................................................343
B. Interest ...........................................................343
1. Requisites for Interest to be Chargeable
(EWL) .............................................................343
2. Kinds of Interest ......................................343
a. Conventional Interest ..........................343
b. Interest on Interest ..............................343
c. Compensatory, Penalty or Indemnity
Interest .......................................................344
3. Usury ..........................................................345
4. Finance Charges........................................345
a. Under the Truth in Lending Act [RA
3765] ...........................................................345
b. Requirement for Disclosure ...............346
c. Under the Philippine Credit Card
Industry Regulation Law [RA 10870] ...346
d. In Relation to Credit Limit .................346
e. Requirement for Disclosure ...............347
f. When Finance Charge is Imposed .....347
g. How Finance Charge is Imposed ......347
II. DEPOSIT ............................................... 347
A. Voluntary Deposit........................................348
1. Extinguishment .........................................348
2. Obligations of a Depositary (KRB) .......348
3. Authority of Depositary (CC-UR) .........349
4. Obligations of a Depositor .....................349
5. Authority of Depositor ............................349
6. Right of Retention ....................................349
B. Necessary Deposit ........................................349
1. Kinds of Necessary Deposit ...................350
FOR UP CANDIDATES ONLY
2. Deposit by Travelers in Hotels and Inns
......................................................................... 350
3. Extent of Liability Under Art. 1998, Civil
Code ............................................................... 350
4. When Hotel-Keeper Liable .................... 350
5. When Hotel-Keeper not Liable ............. 350
a. Rule in the Occurrence of Theft or
Robbery ..................................................... 350
b. Exemption or Diminution of Liability
.................................................................... 350
6. Hotel-Keeper’s Right to Retention ....... 351
C. Judicial Deposit or Sequestration .............. 351
1. Nature and Purpose ................................. 351
2. Depositary of Sequestered Property ..... 351
3. Applicable Law ......................................... 351
III. GUARANTY AND SURETYSHIP...... 351
A. Nature and Extent of Guaranty ................ 351
1. Obligation Secured by Guaranty ........... 352
2. Parties to a Guaranty [Art. 2047 (1), Civil
Code] .............................................................. 352
a. Qualifications of a Guarantor [Art.
2056, Civil Code]...................................... 352
3. Excussion .................................................. 352
4. Right to Protection .................................. 353
5. Right to Indemnification ......................... 353
6. Right to Subrogation ............................... 353
7. Right of Reimbursement ......................... 353
8. Rights of Co-Guarantors ........................ 353
a. Requisites for the Applicability of Art.
2073, Civil Code ....................................... 354
B. Nature and Extent of Suretyship ............... 354
1. Concept...................................................... 354
a. Suretyship .............................................. 354
2. Form of Surety ......................................... 354
3. Obligations Secured ................................. 355
4. Surety Distinguished from Standby Letter
of Credit ......................................................... 355
5. Surety Distinguished from Guaranty .... 355
6. Surety Distinguished from Joint and
Solidary Obligations ..................................... 356
C. Effect of Guaranty ....................................... 356
1. The Guarantor has the Right to Benefit
from Excussion/Exhaustion [Art. 2058, Civil
Code] .............................................................. 357
2. The Creditor has the Right to Secure a
Judgment Against the Guarantor Prior to the
Excussion....................................................... 357
3. The Creditor has the Duty to Make Prior
Demand for Payment from the Guarantor
[Art. 2060, Civil Code] ................................. 357
4. The Guarantor has the Duty to Set Up the
Benefit of Excussion [Art. 2060, Civil Code]
......................................................................... 357
5. The Creditor has the Duty to Resort to All
Legal Remedies [Arts. 2058 and 2061, Civil
Code] .............................................................. 357
024356CIV
6. The Creditor has the Duty to Notify the
Guarantor in the Action Against the Debtor
[Art. 2062, Civil Code] .................................357
7. A Compromise Shall Not Prejudice a
Person Not Party to It [Art. 2063, Civil
Code]...............................................................357
8. Effects of Guaranty between the Debtor
and the Guarantor ........................................358
D. Extinguishment of Guaranty .....................358
1. General Rule..............................................358
2. Specific Instances that Extinguish the
Guaranty.........................................................358
a. Creditor Voluntary Accepts the
Immovable for Payment .........................358
b. When an Extension is Granted to the
Debtor without the Consent of Guarantor
.....................................................................358
c. When Subrogation is Not Feasible....358
E. Legal and Judicial Bonds .............................358
1. Qualifications of Personal Bondsman [Art.
2082 in relation to Art. 2056, Civil Code] .359
2. Pledge or Mortgage in Lieu of Bond [Art.
2083, Civil Code] ..........................................359
3. Bondsman Not Entitled to Excussion
[Art. 2084, Civil Code] .................................359
IV. PERSONAL PROPERTY SECURITIES
(R.A. No. 11057) .......................................... 359
A. Scope of the Personal Property Security Act
(PPSA) [Sec. 4, PPSA] ......................................359
B. Security Interest ............................................360
1. Asset-Specific Rules - Accounts
Receivable ......................................................360
C. Security Agreement ......................................361
D. Perfection of Security Interest ...................361
E. Registration of Security Interest ................363
F. Priority of Security Interest .........................364
1. Priority Rules for Intangible Assets .......364
2. Priority Rules for Tangible Assets .........365
3. Priority Rules for Specific CasesSecurity
Interests Over Goods that are Subject to the
Right of Retention ........................................365
4. Priority of Perfected Security Interest
Prior to Insolvency Proceedings ................367
G. Repossession ................................................367
H. Enforcement of Security Interest ..............368
1. Recovery ....................................................368
2. Disposition ................................................368
a. Notification of Disposition ................369
b. Right of Redemption...........................369
3. Retention....................................................370
I. Takeover Rights .............................................370
J. Transitional Provisions .................................371
1. Prior Interests ...........................................371
2. Transitional Period ...................................371
V. REAL ESTATE MORTGAGE .............. 372
A. Objects of Real Estate Mortgage ...............372
1. Obligations Secured .................................372
FOR UP CANDIDATES ONLY
B. Characteristics ............................................... 373
1. Characteristics of the Collateral ............. 373
2. Characteristics of the Mortgage ............. 373
C. Kinds .............................................................. 374
D. Principle of Indivisibility of Mortgage ..... 374
E. Recording Required ..................................... 375
F. Foreclosure of Mortgage ............................. 375
1. Judicial Foreclosure [Rule 68, Rules of
Court] ............................................................. 375
2. Extrajudicial Foreclosure ........................ 376
3. Nature of Power of Foreclosure by
Extrajudicial Sale .......................................... 378
4. Right to Surplus or Deficiency ............... 378
5. Effect of Inadequacy of Price in
Foreclosure Sale ............................................ 378
G. Waiver of Security by Creditor .................. 379
H. Redemption .................................................. 379
1. Kinds .......................................................... 379
2. Requisites ................................................... 379
VI. ANTICHRESIS ................................... 380
A. General Concepts ........................................ 380
B. Form of Antichresis..................................... 380
C. Obligations Secured ..................................... 380
1. Principle of Indivisibility ......................... 380
2. After-Incurred Obligations ..................... 380
D. Right of Retention ....................................... 381
E. Foreclosure of Antichresis ......................... 381
TORTS AND DAMAGES ................................. 382
I. PRINCIPLES ........................................ 383
A. Elements........................................................ 383
B. Quasi-Delict .................................................. 383
C. Abuse of Rights ............................................ 383
ii. Article 19, Civil Code. Every person must,
in the exercise of his rights and in the
performance of his duties, act with justice, give
everyone his due, and observe honesty and
good faith. .......................................................... 383
1. Rationale .................................................... 383
2. Purpose ...................................................... 383
3. Effects ........................................................ 383
4. Essence ...................................................... 383
D. Unjust Enrichment...................................... 384
1. Definition .................................................. 384
2. Elements .................................................... 384
3. Nature of Action ...................................... 384
E. Liability Without Fault ................................ 384
1. Inducers of Violation............................... 384
2. Owners of Enterprises and Employers 384
3. Fellow Workers and Employers ............ 384
4. Engineers and Architects ........................ 384
5. Animal Possessors.................................... 385
6. Motor Vehicle Owners ............................ 385
7. Manufacturers & Processors of Goods 385
8. Proprietors vis-a-vis Engineers &
Architects ....................................................... 385
9. Family Heads Residing in a Building .... 385
F. Acts Contrary to Law .................................. 385
024357CIV
G. Acts Contrary to Morals .............................386
1. In General ..................................................386
a. Purpose ..................................................386
b. Rationale................................................386
a. ..................................................................386
2. Moral Seduction........................................386
a. Existence of Seduction ........................386
b. Absence of Seduction .........................386
3. Public Humiliation ...................................386
4. Malicious Prosecution..............................387
a. Definition ..............................................387
b. Elements ...............................................387
c. Essence ..................................................387
5. Oppressive Dismissal...............................387
II. CLASSIFICATION OF TORTS ........... 388
A. Intentional .....................................................388
1. Abuse of Right ..........................................388
2. Acts contrary to law/illegal acts .............388
3. Acts contrary to morals/acts contra bonus
mores .................................................................388
a. In general ...............................................388
4. Tortuous interference ..............................388
a. Interference with rights to person .....388
b. Interference with rights to property .388
c. Interference with contractual relations
.....................................................................389
5. Unfair competition ...................................389
6. Violation of constitutional rights; violation
of civil liberties ..............................................390
7. Defamation, fraud, and physical injuries
.........................................................................391
B. Negligent........................................................392
C. Strict Liability ................................................392
1. Manufacturers and Processors of Products
and Services ...................................................392
2. Possessors and Users of Animal ............392
3. Provinces, Cities, and Municipalities for
Defective Public Works ...............................392
4. Proprietors .................................................393
a. Building Owners...................................393
b. Other Proprietors ................................393
c. Liability of Engineers and Architects 393
5. Heads of Families .....................................394
6. Employers ..................................................394
a. Compensation in the Event of Death or
Injury of an Employee in the Course of
Employment .............................................394
b. Solidary Liability with Another
Employee...................................................394
III. THE TORTFEASOR/ PERSONS
LIABLE ....................................................... 394
A. Joint tortfeasors ............................................394
B. Direct tortfeasor ...........................................395
1. Natural Persons ........................................395
2. Juridical Persons .......................................395
C. Persons vicariously liable ............................395
FOR UP CANDIDATES ONLY
IV.
QUASI-DELICT
vs.
CULPA
CONTRACTUAL vs. CULPA CRIMINAL
.................................................................... 395
A. Nature of Liability........................................ 395
V. PROXIMATE CAUSE .......................... 396
A. Concept of Proximate Cause ..................... 396
1. Two Definitions ....................................... 396
2. Differentiated from other causes ........... 396
B. Tests to Determine Proximate Cause ....... 398
C. Doctrine of Last Clear Chance .................. 398
VI. VICARIOUS LIABILITY .................... 399
A. Doctrine of Vicarious Liability .................. 399
1. Rationale .................................................... 399
2. When Not Applicable.............................. 399
3. When moral culpability can be directly
imputed to the direct tortfeasor, as when
there is actual intent to cause harm to others
......................................................................... 399
B. Persons Vicariously Liable [Art. 2180, NCC]
............................................................................. 400
C. Persons exercising parental authority ....... 400
a. Parents ........................................................ 400
b. Guardians .................................................. 401
c. Teachers and schools ............................... 401
d. Owners/managers of establishments or
employers ....................................................... 403
1. Owners and Managers of an
Establishment or Enterprise [par. 4, Art.
2180, Civil Code]...................................... 404
2. Employers [par. 5, Art. 2180, Civil
Code] .......................................................... 404
e. The State .................................................... 405
D. What must be established for vicarious
liability ................................................................. 405
1. Parents ....................................................... 405
2. Teachers & Schools ................................. 405
3. Owners and Managers of Establishments
......................................................................... 406
4. Employers ................................................. 406
5. State ............................................................ 406
VII. RES IPSA LOQUITUR ...................... 406
A. Elements........................................................ 406
B. Basis ............................................................... 407
C. Effect of the Rule ........................................ 407
1. Effect of Direct Evidence....................... 407
2. Res Ipsa Loquitur vs. Expert Testimony in
Medical Negligence Cases ........................... 407
VIII. DAMNUM ABSQUE INJURIA ....... 408
IX. DEFENSES ......................................... 408
A. Full/Complete Defense .............................. 408
1. Plaintiff’s Negligence is the Proximate
Cause .............................................................. 408
2. Plaintiff’s Assumption of Risk ............... 408
3. Valid Waiver.............................................. 409
4. Loss without Injury .................................. 409
5. Fortuitous event ....................................... 410
024358CIV
6. Efficient Intervening Cause ....................410
7. Last Clear Chance .....................................411
8. Prescription Period...................................411
9. Double Recovery ......................................413
B. Partial Defense ..............................................414
1. Contributory Negligence .........................414
2. Concurrent Causes ...................................415
X. NEGLIGENCE...................................... 415
A. Standard of Care...........................................416
1. Default Standard of Care: Good Father of
a Family ..........................................................416
2. Standard of Care Needed in Specific
Circumstances ...............................................416
B. Presumptions ................................................418
1. In Motor Vehicle Mishaps ......................418
a. Liability of the owner ..........................418
b. Liability of the driver ...........................419
2. Possession of Dangerous Weapons or
Substances ......................................................419
3. Common Carriers .....................................419
4. Res Ipsa Loquitur .....................................420
XI. DAMAGES ............................................ 420
A. General provisions .......................................420
B. Kinds of damages .........................................421
1. Actual and Compensatory Damages .....421
a. Components..........................................422
b. Loss Covered ........................................422
c. Earning capacity, business standing ..424
d. Death by Crime or Quasi-Delict .......424
e. Civil/death indemnity..........................425
1. Death by Crime or Quasi-Delict ...425
2. Civil or Death indemnity................425
f. Attorney’s fees and expenses of
litigation .....................................................426
g. Interest ...................................................427
2. Moral Damages .........................................428
a. When Awarded .....................................429
b. When Recoverable...............................430
1. In Criminal Offense resulting in
physical injuries and death..................430
2. In Quasi-delicts resulting in physical
injuries ...................................................430
3. In seduction, abduction, rape, and
other lascivious acts.............................430
4. In illegal or arbitrary detention or
arrest ......................................................431
5. In case of libel, slander, or any other
form of defamation .............................431
6. In case of malicious prosecution ..431
7. In acts referred to in Arts. 21, 26, 27,
28, 29, 32, 34 and 35, Civil Code.......431
c. Who may Recover Moral Damages ..433
3. Nominal Damages ....................................434
a. When Awarded .....................................434
1. Violation of a right ..........................434
2. No actual loss caused or proven ...434
3. Under conditions of equity .....................435
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4. Temperate Damages ................................ 435
a. When Recoverable ............................... 435
1. Nature of the case prevents
determination of actual loss ............... 435
2. In addition to civil indemnity ........ 435
3. Cases where amount of loss is not
proven ................................................... 435
4. In addition to other actual damages
proven, when there is a chronic and
continuing injury involved ................. 436
5. Liquidated Damages ................................ 436
6. Exemplary or Corrective Damages ....... 437
b. When Recoverable .............................. 437
c. Requisites .............................................. 438
C. Miscellaneous Rules ..................................... 439
1. Damages that cannot co-exist ................ 439
a. Nominal with other damages ............. 439
b. Actual and liquidated .......................... 439
2. Damages that must co-exist ................... 439
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a. Exemplary with moral, temperate,
liquidated or compensatory ....................439
3. Damages that must stand alone .............439
a. Nominal damages .................................439
D. Graduation of Damages .............................439
1. Duty of Injured Party ............................439
2. Rules ...........................................................439
a. In Crimes ...............................................440
1. Civil Indemnity ................................440
2. Moral Damages................................440
3. Exemplary Damages .......................440
4. Temperate Damages .......................440
XII. DAMAGES IN CASE OF DEATH .... 443
A. Death by Crime or Quasi-Delict ...............443
B. Civil or Death indemnity .............................443
XIII. DUTY OF THE INJURED PARTY. 444
1. Duty of Injured Party...............................444
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CIVIL LAW
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PRELIMINARY TITLE
I.
WHEN LAWS TAKE
EFFECT
Article 2, Civil Code. Laws shall take effect after
fifteen days following the completion of their
publication either in the Official Gazette or in a
newspaper of general circulation in the Philippines
unless it is otherwise provided (As amended by
E.O. 200).
General Rules
The clause "unless it is otherwise
provided" refers to the date of effectivity (i.e.,
as to when a law shall take effect) and not to
the requirement of the publication itself, which
cannot, in any event, be omitted [Tañada v.
Tuvera, G.R. No. L-63915 (1986)].
● Publication is indispensable in every case,
but the legislature may at its discretion
provide that the usual fifteen-day period
shall be shortened or extended [Tañada v.
Tuvera, supra].
Exception:
Implementing
rules
and
regulations and those internal in nature
[Tañada v. Tuvera, supra].
II. IGNORANCE OF THE
LAW
Ignorance of the law excuses no one from
compliance therewith [Art. 3, Civil Code].
It is founded not only on expediency and
policy but also on necessity [Zulueta v.
Zulueta, G.R. No. 428 (1902)].
Every person is presumed to know the law
even if he has no actual knowledge of the law
[Tañada v. Tuvera, supra].
The presumption does not apply to foreign
laws because there is no judicial notice of
such foreign laws; such laws must be proved
like any other matter of fact [Ching Huat v. Co
Heong, G.R. No. L-1211 (1947)].
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CIVIL LAW
III. RETROACTIVITY OF
LAWS
Laws shall have no retroactive effect unless
the contrary is provided [Art. 4, Civil Code].
General Rule: All statutes
construed as having only
operations.
should be
prospective
Exceptions
1. When the law itself expressly provides;
a. Exceptions to Exception:
▪ Ex post facto law
▪ Impairment of the obligations in the
contract
2. In case of remedial statutes;
3. In case of curative statutes;
a. Exceptions to the Exception:
▪ If it will violate the Constitution
▪ If it will destroy the rights of third
persons
▪ Final judgment
4. In case of laws interpreting others;
5. In case of laws creating new rights [Bona
v. Briones, G.R. No. L-10806 (1918)];
6. Penal Laws favorable to the accused [Art.
22, RPC].
IV. MANDATORY OR
PROHIBITORY LAWS
Article 5, Civil Code. Acts executed against the
provisions of mandatory or prohibitory laws shall be
void, except when the law itself authorizes their
validity.
Paragraph 3, Article 17, Civil Code. 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.
V.
WAIVER OF RIGHTS
Article 6, Civil Code. Rights may be waived,
unless the waiver is contrary to law, public order,
public policy, morals, or good customs, or
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prejudicial to a third person with a right recognized
by law.
Waiver
Voluntary and intentional relinquishment or
abandonment of a known legal right or
privilege. It has been ruled that a waiver to be
valid and effective must be couched in clear
and unequivocal terms which leave no doubt
as to the intention of a party to give up a right
or benefit which legally pertains to him [RB
Michael Press v. Galit, G.R. No. 153510
(2008)].
The waiver should be made in a positive
manner [Dona Adela Export International Inc.
v. Tidcorp, G.R. No. 201931 (2015)].
Requisites of a Valid Waiver
1. Existence of a right;
2. Knowledge of the existence thereof; and
3. An intention to relinquish the right [Herrera
v. Borromeo, G.R. No. L-41171, (1987)].
General Rule: Rights may be waived.
Exceptions
1. If the waiver is contrary to law, public
order, public policy, morals or good
customs;
2. If the waiver prejudices a third person;
3. If the alleged rights do not yet exist;
4. If the right is a natural right.
No compromise upon the following
questions shall be valid [Art. 2035, Civil
Code]:
1. The civil status of persons;
2. The validity of a marriage or a legal
separation;
3. Any ground for legal separation;
4. Future support;
5. The jurisdiction of courts;
6. Future legitime.
CIVIL LAW
VI. PRESUMPTION AND
APPLICABILITY OF
CUSTOM
Article 11, Civil Code: Customs which are
contrary to law, public order, or public policy shall
not be countenanced.
Custom is defined as “a rule of conduct
formed by repetition of acts, uniformly
observed (practiced) as a social rule, legally
binding and obligatory.” The Court had
occasion to state that “a local custom as a
source of right cannot be considered by a
court of justice unless such custom is properly
established by competent evidence like any
other fact. The same evidence, if not one of a
higher degree, should be required of a foreign
custom [Yao Kee v. Sy-Gonzales, G.R. No.
55960 (1988)].
General Rule: Customs must be proved as a
fact according to the rules of evidence [Art.
12, Civil Code].
Exception: If there is already a decision
rendered by the same court recognizing the
custom. It becomes an official act of the
judicial department in which the court may
take judicial notice [Sec. 2, Rule 129, Rules of
Court].
VII. LEGAL PERIODS
Section 31 Revised Administrative Code (RAC).
Legal Periods. "Year" shall be understood to be
twelve calendar months; "month" of thirty days,
unless it refers to a specific calendar month in
which case it shall be computed according to the
number of days the specific month contains; "day,"
to a day of twenty-four hours; and "night," from
sunset to sunrise.
1. Year
–
12
calendar
months
[Commissioner of Internal Revenue vs.
Primetown Property Group, Inc., G.R. No.
162155 (2007)].
Sec. 31 of the RAC governs the computation
of legal periods with respect to counting a
year since it is a more recent law than Art. 13
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of the Civil Code which indicated that years
are of 365 days each [Commissioner of
Internal Revenue v. Aichi Forging Company of
Asia, G.R. No. 184823 (2010)].
2. Month – 30 days, unless month is
identified
CIVIL LAW
1. When the offense is committed by a
foreign sovereign while in Philippine
territory
2. When the offense is committed by
diplomatic representatives
3. When the offense is committed in a public
or armed vessel of a foreign country.
If months are designated by their name, they
shall be computed by the number of days
which they respectively have [Art., 13, Civil
Code].
IX.
CONFLICT OF LAWS
1.
Introduction
3.
4.
5.
6.
Its incorporation in municipal laws are based
not on the extraterritorial validity of the foreign
law but on the comity of nations.
Day – 24 hours
Night – Sunset to sunrise
Calendar week – Sunday to Saturday
Week – 7 successive days, not
necessarily Sunday to Saturday.
The first day shall be excluded, and the last
day included [Art. 13, Civil Code].
Rule if the last day is a weekend or a legal
holiday
If the last day of the period, as thus computed,
falls on a Saturday, a Sunday, or a legal
holiday in the place where the court sits, the
time shall not run until the next working day
[Sec. 1, Rule 22, Rules of Court].
Exception for contractual obligations
The act will still be due despite the fact that
the last day falls on a weekend or a legal
holiday.
This is because obligations arising from
contracts have the force of law between the
contracting parties.
VIII. TERRITORIALITY
PRINCIPLE
Penal laws and those of public security and
safety shall be obligatory upon all who live or
sojourn in the Philippine territory, subject to
the principles of public international law and to
treaty stipulations. [Art. 14, Civil Code]
Exemptions to the Territoriality Principle under
International
Law
(Theory
of
Extraterritoriality):
024363CIV
"No law has any effect, of its own force,
beyond the limits of the sovereignty from
which its authority is derived. The extent to
which the law of one nation, as put in force
within its territory, whether by executive order,
by legislative act, or by judicial decree, shall
be allowed to operate within the dominion of
another nation, depends upon what our
greatest jurists have been content to call "the
comity of nations. [Hilton v. Guyot, 159 US
113 (1895)]
“Comity,” in the legal sense, is neither a
matter of absolute obligation, on the one
hand, nor of mere courtesy and good will,
upon the other. But it is the recognition that
one nation allows within its territory to the
legislative, executive, or judicial acts of
another nation, having due regard both to
international duty and convenience and to the
rights of its own citizens or of other persons
who are under the protection of its laws.
[Hilton v. Guyot, supra]
a.
Definition
That part of municipal law governs cases
involving a foreign element.
That part of the law comes into play when the
issue before the court affects some fact or
event, or transaction that is so closely
connected with a foreign system of law as to
necessitate recourse to that system. [Chesire]
The law concerning the rights of persons
within the territory and dominion of one nation
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by reason of acts, private or public, done
within the dominion of another nation. [Hilton
v. Guyot, supra]
b.
Scope
1. Adjudicatory jurisdiction: Determines the
circumstances that allow for a legal order
to impose upon its judiciary the task of
deciding multi-state and multinational
disputes
2. Choice-of-law: Refers to the probable
sources from which the applicable law of
the controversy may be derived.
3. Recognition and enforcement of foreign
judgments: Deals with the study of
situations that justify recognition by the
forum court of a judgment rendered by a
foreign court or the enforcement of such
within the forum.
A.
Nationality Principle
Lex Patriae – Nationality and citizenship are
the basis for identifying the personal laws
applicable to an individual.
Art. 15, Civil Code NCC: Laws relating to
family rights and duties, or to the status,
condition, and legal capacity of persons are
binding upon citizens of the Philippines, even
though living abroad.
Problems
Principle
in
Applying
for
Nationality
Dual or Multiple Citizenship
An individual can be claimed as a national of 2
or more states pursuant to the rule that each
State determines who its own nationals are.
[Hague Convention on Conflict of National
Laws]
Effective nationality
In the determination of the rights of an
individual who may claim multiple nationalities
in a third state, the ICJ applied the principle of
“effective nationality,” i.e. that based on
stronger factual ties between the person
concerned and one of the States whose
nationality is involved. [Nottebohm Case
(Liechtenstein v. Guatemala, ICJ Rep 4 [1955]
ICJ Rep 4)]
024364CIV
B.
CIVIL LAW
Lex Situs
With respect to the choice of law in property,
Lex Situs refers to the law of the country in
which the property is situated. An application
of Lex Situs is as follows:
For Movables:
Based on the state’s power over its territory.
The state where the property is located has
the sole power to decide the validity and
effects of the transfer of the property.
For Immovables:
1. Determined by the law of the place where
the land is situated
2. The connecting factor is immovable itself
and not the parties
Note: In the Philippines however, in light of
Article 16 of the CC, one need not classify the
subject property, as the aforementioned
provision expressly provides that, “real and
personal property are subject to the law of the
country where they are situated (LEX
SITUS).”
Traditional approach – physically part of the
country and subject to the laws
Modern approach – situs is the place most
closely and significantly related to the issue
Thus, the only time the court has to classify
the subject property is when it is located in a
foreign country which has a law that
distinguishes between real and personal
property. [Coquia and Aguiling-Pangalangan]
Exception to the Lex Situs Rule
1. The transaction does not affect the
transfer of title to/ownership of the land –
LEX INTENTIONIS or LEX VOLUNTATIS
2. Contracts where the real property is
offered by way of security for the
performance of an obligation such as a
loan.
a. LOAN – covered by rules on ordinary
contracts
b. MORTGAGE – LEX SITUS
3. Testate or intestate succession and
capacity to succeed – LEX NATIONALII
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C.
Lex Loci Celebrations
Forms and solemnities of contracts, wills, and
other public instruments shall be governed by
the laws of the country in which they are
executed. – Art. 17, 1st par., Civil Code.
Exception: Art. 26, 1st par., Family Code.
Article 17, Civil Code. The forms and solemnities
of contracts, wills, and other public instruments
shall be governed by the laws of the country in
which they are executed.
When the acts referred to are executed before the
diplomatic or consular officials of the Republic of
the Philippines in a foreign country, the solemnities
established by Philippine laws shall be observed in
their execution.
This principle is derived from a broader
proposition that the place governs the act
(locus regit actum).
D.
Doctrine of Renvoi
Renvoi
Based on the state’s power over its territory.
The state, where the property is located, has
the sole power to decide the validity and
effects of the transfer of the property.
The procedure whereby a jural matter
presented is referred by the conflict of laws
rules of the forum to a foreign state (Step 1 in
the figure below), the conflict of laws rule of
which, in turn, refers the matter to the law of
either the forum (remission – 2a in the figure
below) or a third state (transmission – 2b in
figure below).
CIVIL LAW
Limitation of renvoi
The process of renvoi is not applicable in
instances where there is a FALSE
CONFLICT. There’s a false conflict when one
of the states does not have a real interest in
applying its law in the controversy.
Ways of Dealing with the Problem of
Renvoi
Reject the
renvoi
Forum conflict rules are
deemed to refer only to the
internal law of that state.
Accept the
renvoi
Look into not just the internal
law of the foreign state, but
also the choice-of-law rules
applicable in multi-state
cases.
Desistance/
Mutual
disclaimer
of
jurisdiction
The forum court, upon
reference to foreign law, sees
that such law only applies to
its own nationals and has no
provision for an application to
a non-national.
Foreign
Court
Theory
The forum court would
assume the same position
that the foreign court would
take were the case litigated in
the foreign court.
PERSONS
I.
HUMAN RELATIONS IN
RELATION TO PERSONS
A.
Abuse of Right
Article 19, Civil Code: Every person must, in the
exercise of his rights and in the performance of his
duties, act with justice, give everyone his due, and
observe honesty and good faith.
Note: On its own, Article 19 is not actionable.
While Article 19 lays down a rule of conduct
for the government of human relations and for
the maintenance of social order, it does not
provide a remedy for its violation. Generally,
024365CIV
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an action for damages under either Article 20
or Article 21 would be proper [Tocoms
Philippines v. Philips Electronics, G.R. No.
214046 (2020); Globe MacKay Cable and
Radio Corp. v. CA, G.R. No. 81262 (1989)].
Elements of Abuse of Right
1. There is a legal right or duty;
2. Which is exercised in bad faith; and
3. For the sole intent of prejudicing or
injuring another [California Clothing v.
Quiñones, G.R. No. 175822 (2013)].
Test of abuse of rights
No hard and fast rule; it depends on the
circumstances of each case. The exercise of a
right must be in accordance with the purpose
for which it was established, and must not be
excessive or unduly harsh; there must be no
intention to injure another.
CIVIL LAW
The Court held that violation of a statutory
duty is negligence and that Article 20 provides
the legal basis for an award of damages to a
party who suffers damage whenever one
commits an act in violation of some legal
provision [Garcia v. Salvador, G.R. No.
168512 (2007)].
b. Acts Contrary to Morals
Article 21, Civil Code: Any person who wilfully
causes loss or injury to another in manner that is
contrary to morals, good customs or public policy
shall compensate the latter for the damage.
Elements [Albenson v. CA, G.R. No. 88694
(1993)]
1. There is an act which is legal;
2. But which is contrary to morals, good
customs, and public policy; and
3. It is done with intent to injure.
1. Kinds of Abuse of Right
a. Acts Contrary to Law
Article 20, Civil Code: Every person who, contrary
to law, wilfully or negligently causes damage to
another, shall indemnify the latter for the same.
The provision is intended to provide a remedy
in cases where the law declares an act illegal
but fails to provide relief to the party injured
[Jarencio].
Art. 20 concerns violations of existing law as a
basis for an injury. It allows recovery should
the act have been willful or negligent. Willful
may refer to the intention to do the act and the
desire to achieve the outcome which is
considered by the plaintiff in tort action as
injurious. Negligence may refer to a situation
where the act was consciously done but
without intending the result which the plaintiff
considers as injurious. [Arco Pulp and Paper
Co., Inc. v. Lim, G.R. No. 206806 (2014)]
Does a “willful” act require malice or
deceit?
Yes. The Code uses the motive-laden word
“willfully” rather than the comparatively weaker
word “intentionally.”
An act that is “willful” connotes an evil or
malicious motive, while an act that is merely
intentional has ordinarily no such implication
[Carpio, Antonio T., Intentional Torts in
Philippine Law, 47 PHIL L.J. 649 (1972)].
c. Acts Contrary to Morals, In General
A reading of the provision may provide an
inference of three (3) requisites for a cause
of action under Article 21:
1. that one willfully causes injury or loss to
another;
2. that it was done in a manner that is
contrary to morals, good customs, or
public policy; and
3. That the act done to cause injury or loss
must be legal.
Salvador was misdiagnosed with Hepatitis,
d. Breach of Promise to Marry and
and as a result of which she lost her job.
Moral Seduction
During the trial, it was proven that the clinic
was operating under substandard conditions,
Mere breach of promise to marry is not an
in violation of the Clinical Laboratory Law,
actionable wrong. But to formally set up a
DOH Administrative Order No. 49-B, and the
wedding and go through the above-described
Philippine Medical Technology Act of 1969.
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preparation and publicity, only to walk out of it
when the matrimony is about to be
solemnized, is quite different. This is palpably
and unjustifiably contrary to good customs
[Wassmer v. Velez, G.R. No. L-20089 (1964)].
e. Malicious Prosecution
Malicious prosecution is the institution of
any action or proceeding – civil, criminal or
administrative – maliciously and without
probable cause.
Elements [Magbanua v. Junsay, G.R.
No.132659 (2007)]
1. The fact of the prosecution or that the
prosecution did occur and that the
defendant was himself the prosecutor or
that he instigated its commencement;
2. That the action finally terminated with an
acquittal;
3. That in bringing the action, the prosecutor
acted without probable cause; and
4. That the prosecutor was actuated or
impelled by legal malice, that is, by
improper or sinister motive.
To constitute such, there must be proof that
the prosecution was prompted by a sinister
design to vex and humiliate a person and that
it was initiated deliberately by the defendant
knowing that his charges were false and
groundless [Que v. IAC, G.R. No. 66865
(1989)].
The presence of probable cause signifies as a
legal consequence the absence of malice
[Que v. IAC, supra].
f. Public Humiliation
It is against morals, good customs, and public
policy to humiliate, embarrass and degrade
the dignity of a person. Everyone must
respect the dignity, personality, privacy, and
peace of mind of his neighbors and other
persons [Article 26, Civil Code; Grand Union
v. Espino, G.R. No. L-48250 (1979)].
g. Oppressive Dismissal
The right of an employer to dismiss an
employee is not to be confused with the
024367CIV
CIVIL LAW
manner in which this right is to be exercised
and the effects flowing therefrom.
B. Unjust Enrichment
Article 22, Civil Code. Every person who through
an act of performance by another, or any other
means, acquires or comes into possession of
something at the expense of the latter without just
or legal ground, shall return the same to him.
Article 23, Civil Code. Even when an act or event
causing damage to another’s property was not due
to the fault or negligence of the defendant, the
latter shall be liable for indemnity if through the act
or event he was benefited.
Article 2142, Civil Code. Certain lawful, voluntary
and unilateral acts give rise to the juridical relation
of quasi-contract to the end that no one shall be
unjustly enriched or benefited at the expense of
another.
Article 2143, Civil Code. The provisions for quasi
contracts in this Chapter do not exclude other
quasi-contracts which may come within the purview
of the preceding article.
Elements [Yon Mitori International Industries
v. Union Bank of the Philippines, G.R. No.
225538 (2020)]
1. A person is unjustly benefited; and
2. Such benefit is derived at the expense of
or with damages to another.
The restitution must cover the loss suffered by
the plaintiff, but it can never exceed the
amount of unjust enrichment of the defendant
if it is less than the loss of the plaintiff.
C. Liability Without Fault
Article 23, Civil Code. Even when an act or event
causing damage to another’s property was not due
to the fault or negligence of the defendant, the
latter shall be liable for indemnity if through the act
or event he was benefited.
This provision imposes liability even without
fault, as long as the injurious act or event
benefited the defendant.
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This article is based on equity. An involuntary
act, because of its character, cannot generally
create an obligation; but when by such act its
author has been enriched, it is only just that
he should be indemnified for the damages
caused, to the extent of his enrichment.
D. Ostentatious
Wealth
Display
of
Article 25, Civil Code: Thoughtless extravagance
in expenses for pleasure or display during a period
of acute public want or emergency may be stopped
by order of the courts at the instance of any
government or private charitable institution.
E. Violation of Human Dignity
Article 26, Civil Code. Every person shall respect
the dignity, personality, privacy and peace of mind
of his neighbors and other persons. The following
and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for
damages, prevention and other relief:
1.
2.
3.
4.
Prying into the privacy of another’s residence;
Meddling with or disturbing the private life or
family relations of another;
Intriguing to cause another to be alienated
from his friends;
Vexing or humiliating another on account of his
religious beliefs, lowly station in life, place of
birth, physical defect, or other personal
condition.
Article 26 specifically applies to intentional
acts which fall short of being criminal
offenses. It itself expressly refers to tortious
conduct which “may not constitute criminal
offenses.”
Note: Coverage of Art. 26 is not limited to
those enumerated therein, the enumeration
being merely examples of acts violative of a
person’s rights to dignity, personality, privacy
and peace of mind. Other “similar acts” are
also covered within the scope of the article.
See Tortuous Interference under Torts and
Damages portion for further discussion on the
topic.
024368CIV
CIVIL LAW
F. Civil Action
Article 29, Civil Code. When the accused in a
criminal prosecution is acquitted on the ground that
his guilt has not been proved beyond reasonable
doubt, a civil action for damages for the same act
or omission may be instituted. Such action requires
only a preponderance of evidence. Upon motion of
the defendant, the court may require the plaintiff to
file a bond to answer for damages in case the
complaint should be found to be malicious.
If in a criminal case the judgment of acquittal is
based upon reasonable doubt, the court shall so
declare. In the absence of any declaration to that
effect, it may be inferred from the text of the
decision whether or not the acquittal is due to that
ground.
Article 30, Civil Code. When a separate civil
action is brought to demand civil liability arising
from a criminal offense, and no criminal
proceedings are instituted during the pendency of
the civil case, a preponderance of evidence shall
likewise be sufficient to prove the act complained
of.
Article 31, Civil Code. When the civil action is
based on an obligation not arising from the act or
omission complained of as a felony, such civil
action may proceed independently of the criminal
proceedings and regardless of the result of the
latter.
Article 33, Civil Code. In cases of defamation,
fraud, and physical injuries a civil action for
damages, entirely separate and distinct from the
criminal action, may be brought by the injured
party. Such civil action shall proceed independently
of the criminal prosecution, and shall require only a
preponderance of evidence.
Article 35, Civil Code. When a person, claiming to
be injured by a criminal offense, charges another
with the same, for which no independent civil action
is granted in this Code or any special law, but the
justice of the peace finds no reasonable grounds to
believe that a crime has been committed, or the
prosecuting attorney refuses or fails to institute
criminal proceedings, the complaint may bring a
civil action for damages against the alleged
offender. Such civil action may be supported by a
preponderance of evidence. Upon the defendant's
motion, the court may require the plaintiff to file a
bond to indemnify the defendant in case the
complaint should be found to be malicious.
If during the pendency of the civil action, an
information should be presented by the prosecuting
attorney, the civil action shall be suspended until
the termination of the criminal proceedings.
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Article 36, Civil Code. Pre-judicial questions which
must be decided before any criminal prosecution
may be instituted or may proceed, shall be
governed by rules of court which the Supreme
Court shall promulgate and which shall not be in
conflict with the provisions of this Code.
A pre-judicial question is one raised in a
criminal case by the accused, which is of such
a nature that, if decided favorably to the
accused in a civil case, will cause the
supposed crime to disappear; the prejudicial
question must be determinative of the case
before the court, and, that jurisdiction to try
said question must be lodged in another
tribunal.
A judicial declaration of absolute nullity is not
necessary to prove a void ab initio prior and
subsequent marriages in a bigamy case.
Consequently, judicial declaration of absolute
nullity of the first and/or second marriages
presented by the accused in the prosecution
for bigamy is a valid defense, irrespective of
the time within which they are secured. [Pulido
v. People of the Philippines, G.R. No. 220149
(2021)].
II. CAPACITY TO ACT
CIVIL LAW
Juridical Capacity and Capacity to Act
Distinguished
Juridical Capacity
Capacity to Act
Fitness of a person Power to do acts
to be the subject of with legal effect
legal relations
Passive
Active
Aptitude
for
the Aptitude to exercise
holding
and rights
enjoyment of right
Inherent in natural Acquired
(not
persons
inherent) and may
be lost
Lost upon death and Lost through death
cannot be limited or and
may
be
restricted
restricted by other
causes
Can exist without Must
exist
with
capacity to act
juridical capacity
Cannot be limited or May be restricted or
restricted
limited
1. In General
Note: Juridical capacity can exist even without
capacity to act; the existence of the latter
implies that of the former. Full civil capacity is
the existence of both capacity to act and
juridical capacity.
Persons
Any being, physical, moral, real, juridical, and
legal susceptible of rights and obligations or
being the subject of legal relations [Tolentino].
Capacity and incapacity depend on the law.
Therefore, they cannot be modified by
agreements. It is a matter of public interest
[Tolentino].
Personality
The aptitude of a person to become the
subject of legal relations is inherent in every
natural person and is lost only through death
[Tolentino].
2. Kinds of Persons
A. Civil Personality
Status
The legal condition or class to which one
belongs in society or the legal and juridical
position of the individual in society, which
determines the nature and number of rights of
an individual [Tolentino].
024369CIV
Persons could be natural, juridical,
presumptive, or provisional.
1. Natural persons refer to individuals or
human beings who are created by
procreation.
2. Juridical persons are artificial, abstract
entities created through laws [Tolentino].
3. Persons
with
presumptive
or
provisional personality refer to a
conceived child considered born for all
purposes favorable to it, provided it be
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born later with the conditions under Art. 41
Civil Code [Art. 40, Civil Code].
Characteristics of Fetal Personality
1. Limited – because it only has rights
for purposes favorable to it
2. Provisional/Conditional – because it
should be born alive later before the
rights can be claimed
3. Can enjoy rights – inherit by will or
intestacy and be given donations even
before birth.
A conceived child has a provisional
personality for all purposes favorable to it.
1. It is entitled to support [Quimiguing v.
Icao, G.R. No. L-26795 (1970)]
2. It may inherit or succeed [Art. 1025, Civil
Code]
3. It may receive donations [Art. 742, Civil
Code]
Period of Conception: The first 120 days of
the 300 days preceding the birth of the child
[Art. 166, Family Code].
4. Quasi-Personality refers to the estate of
the deceased which is considered an
artificial or juridical person for the
purposes of the settlement and distribution
of his estate which include the exercise of
the rights and the fulfillment of obligations
that survived after his death [Limjoco v.
Intestate Estate of Fragrante, G.R. No. L770 (1948)].
B. Natural Persons
Art. 40, Civil Code provides that the conceived
child shall be considered born for all purposes
that are favorable to it, provided it be born
later with the conditions specified in Art. 41,
Civil Code (i.e. that the fetus be alive at the
time it is completely delivered from the
mother’s womb). This proviso, however, is not
a condition precedent to the right of the
conceived child; for if it were, the first part of
Art. 40 would become entirely useless and
ineffective [Quimiguing v. Icao, G.R. No. L26795 (1970)].
024370CIV
CIVIL LAW
Characteristics of Fetal Personality
1. Limited – because it only has rights for
purposes favorable to it
2. Provisional/Conditional – because it
should be born alive later before the rights
can be claimed
3. Can enjoy rights – inherit by will or
intestacy and be given donations even
before birth.
A conceived child has a provisional
personality for all purposes favorable to it.
1. It is entitled to support [Quimiguing v.
Icao, G.R. No. L-26795 (1970)]
2. It may inherit or succeed [Art. 1025, Civil
Code]
3. It may receive donations [Art. 742, Civil
Code]
Period of Conception: The first 120 days of
the 300 days preceding the birth of the child
[Art. 166, Family Code].
C. Juridicial Persons
A juridical person is an abstract being, formed
for the realization of collective purposes, to
which the law has granted capacity for rights
and obligations. The entity must be
recognized as having its own rights and
obligations which are not that of its component
members. Its personality is manifested only in
the realm of patrimonial relations–it has no
family and personal rights [Tolentino].
Juridical Persons may:
1. Acquire and possess the property of all
kinds
2. Incur obligations
3. Bring civil or criminal actions [Tolentino]
Juridical persons are not completely at par
with natural persons as to capacity because
they cannot exercise rights that presuppose
physical existence, such as family rights,
making of wills, etc. But like natural persons,
they can have nationality, a domicile, a name,
and a right to reputation. They can own and
possess property, dispose of such property,
enter into contracts, and inherit by will. They
can also incur obligations [Tolentino].
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1. Capacity to Act and Restrictions
on Capacity to Act
Refers to the power to do acts with legal effect
[Art. 37, Civil Code].
Presumption of Capacity: Capacity to act
must be supposedly attached to a person who
has not previously been declared incapable,
and such capacity is presumed to continue for
so long as the contrary is not proved
[Standard Oil Co. v. Arenas, G.R. No. L-5921
(1911)].
Restrictions on Capacity to Act
Circumstances which modify, limit, or restrict
capacity to act:
1. Minority
2. Insanity or imbecility
3. Deaf-mutism
4. Civil Interdiction (Penalty)
5. Prodigality
6. Family relations
7. Alienage
8. Absence
9. Insolvency and trusteeship
Religious belief and political opinion do not
limit the capacity to act [Art. 39, Civil Code].
Note: Incapacitated persons are not exempt
from certain obligations arising from their acts
or property relations. Restrictions in the
capacity to act generally affect obligations
arising from contracts only. As a rule, they do
not affect those arising from law, quasi-delicts,
etc. Also, certain rights are not affected by
incapacity, such as the right to inherit or to
support [Perez]
D. Minority
Art. 234, Family Code is amended, lowering
the age of emancipation/majority from 21 to
18 years. Arts. 235 and 237 of the Family
Code are repealed [RA 6809].
CIVIL LAW
3. Not obliged to make restitution except
insofar as he has been benefited [Art.
1399, Civil Code]
4. Minor has no right to demand the
thing/price voluntarily returned by hum
[Art. 1426, Civil Code]
5. Minor has no right to recover voluntarily
paid sum or delivered thing if consumed in
good faith [Art. 1427, Civil Code]
6. Must pay a reasonable amount for
necessaries delivered to him [Art. 1489,
Civil Code]
7. A contract where one of the parties is a
minor is voidable [Art. 1390 (1), Civil
Code]
8. A contract is unenforceable when both of
the parties are minors (incapable of giving
consent) [Art. 1403 (3), Civil Code]
9. The legal capacity of contracting parties is
an essential requisite of marriage [Art. 2
(1), Family Code]
Estoppel works against minors who
misrepresent their ages in a contract and are
compelled to comply with its terms [Mercado
v. Espiritu, G.R. No. L-11872 (1917)].
However, when a minor made no active
misrepresentation as to his minority and such
minority is known to the other party, the
contract may be annulled by the minor upon
attaining age the age of majority [Bambalan v.
Maramba, G.R. No. L-27710 (1928)].
Failure of the minors to disclose their age
does not constitute fraud. Because it was
merely a passive misrepresentation, they
were not stopped and cannot be legally bound
by their signature in the contract. They do not
have to pay the interest, they may just return
their portion of the loan. However, the minors
are obliged to make restitution insofar as they
have benefited from what they have received
[Art. 1399, Civil Code; Braganza v. Villa
Abrille, G.R. No. L-12471 (1959)].
Effects on Marriage
1. May not yet contract marriage [Art. 5,
Family Code]
2. Marriages, where one of the parties is
below 18, even with the consent of
parents/guardians, are void [Art. 35,
Family Code]
Effects on Contracts
1. They cannot give consent to a contract
[Art. 1327 (1), Civil Code)]
2. The minority cannot be asserted by the
other party in an action for annulment [Art.
1397, Civil Code]
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Effect on Crimes [RA 9344 (Juvenile Justice
and Welfare Act of 2006)]
General Rule: Exempted from criminal
liability
Exception: Acted with discernment, and the
minor is between 15 and 18 years of age
E. Insanity
Insanity includes many forms of mental
disease, either inherited or acquired. A person
may not be insane but only mentally deficient
(idiocy,
imbecility,
feeble-mindedness).
Insanity is the complete deprivation of reason
or intelligence or power to discern [People v.
Austria, G.R. Nos. 111517-19 (1996)].
Prevailing Presumption: Every person is of
sound mind, in the absence of proof to the
contrary [Art. 800 (1), Civil Code].
Effect on Contracts
1. Incapacity to give consent to a contract
[Art. 1327 (2), Civil Code]
2. Contracts entered into during lucid
intervals are valid [Art. 1328, Civil Code]
3. Burden of proof lies with the party
asserting the contract was entered into by
the insane during a lucid interval
4. Restitution of benefits [Art. 1399, Civil
Code]
5. Voidable if one of the parties is insane
[Art. 1390, Civil Code]
6. Unenforceable if both of the parties are
insane [Art. 1403 (3), Civil Code]
7. Marriage may be annulled if either party
was of unsound mind.
Exception: unless such party after
coming to reason, freely cohabited with
the other as husband and wife [Art. 45 (2),
Family Code]
Effect on Marriage
May be annulled if either party was of
unsound mind unless such party, after coming
to reason, freely cohabited with the other [Art.
45 (2), Family Code].
Action for annulment of marriage must be filed
by the sane spouse who had no knowledge of
the
other’s
insanity,
or
by
any
024372CIV
CIVIL LAW
relative/guardian of the insane before the
death of either party; or by the insane spouse
during a lucid interval or after regaining sanity
[Art. 47 (2), Family Code].
F. Deaf-mutism
Effect on Contracts
1. Cannot give consent to a contract if
he/she also does not know how to write
[Art. 1327 (2), Civil Code]
2. Can make a valid will, if able to do so;
otherwise, he shall designate two persons
to read it and communicate to him, in
some practicable manner, the contents
thereof [Art. 807, Civil Code]
3. Cannot be a witness to the execution of a
will [Art. 820, Civil Code]
4. Voidable if one of the parties is a deaf
mute who does not know how to write [Art.
1390(1), Civil Code]
5. Unenforceable if both of the parties are
deaf mutes and do not know how to write
[Art. 1403 (3), Civil Code]
G. Prodigality
The word “incompetent” includes prodigals
[Sec. 2, Rule 92, Rules of Court]
Note: It is not the circumstance of prodigality,
but the fact of being under guardianship that
restricts the capacity to act.
H. Civil Interdiction
It is an accessory penalty imposed upon
persons who are sentenced to a principal
penalty not lower than reclusion temporal [Art.
41, Revised Penal Code].
Effect on Parental/Marital Authority
Offender is deprived of the rights of parental
authority, or guardianship, and of marital
authority [Art. 34, Revised Penal Code].
Effect on Marriage and Property
1. For the validity of marriage settlements,
the participation of the guardian shall be
indispensable [Art. 123, Civil Code]
2. Sentence of one’s spouse to a penalty
that carries with it civil interdiction is
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sufficient to cause for judicial separation of
property [Art. 135 (1), Family Code]
3. The administration of the exclusive
property of either spouse may be
transferred by the court to the other
spouse when one of them is sentenced to
civil interdiction [Art. 142 (3), Family Code]
4. Does not have the right to manage his
property and
5. Does not have the right to dispose of such
by any act inter vivos [Art. 34, Revised
Penal Code].
communication received in confidence by
one from the other during the marriage.
Exception: Spouse may testify against
the other even without the consent of the
latter
a. In a civil case by one against the
other; or
b. In a criminal case for a crime
committed by one against the other or
the
latter’s
direct
descendants/ascendants.
3. Parental and Filial Privilege Rule [Sec. 25,
Rule 130]
I. Family Relations
Family relations include those:
1. Between husband and wife;
2. Between parents and children;
3. Among
other
ascendants
and
descendants; and
4. Among brothers and sisters, whether of
the full- or half-blood [Art. 150, Family
Code]
Effect on Litigation
1. Marital Disqualification Rule or Spousal
Immunity [Sec. 23, Rule 130, Rules of
Court]
Elements
a. Marriage is valid and subsisting at the
time of the offer of testimony
b. The “other” spouse is a party to the
action, either as a plaintiff or
defendant
c. Without the consent of the affected
spouse
Exception: Spouse may testify against
the other even without the consent of the
latter
a. In a civil case by one against the
other; or
b. In a criminal case for a crime
committed by one against the other or
the
latter’s
direct
descendants/ascendants.
2. Marital Privilege [Sec. 24 (a), Rule 130]
No person shall be compelled to testify
against his or her
a. Parents
b. Other direct Ascendants
c. Children; or
d. Other Direct Descendants
Exception: when such testimony
indispensable in a crime
a. Against that person or
b. By one Parent against the other.
is
J. Alienage
Dual Citizenship v. Dual Allegiance
[Cordora v. COMELEC, G.R. No. 176947
(2009)]
Dual Citizenship
Dual Allegiance
Arises when, as a
result
of
the
concurrent
application of the
different laws of two
or more states, a
person
is
simultaneously
considered
a
national by said
states
Refers
to
the
situation in which a
person
simultaneously
owes,
by
some
positive act, loyalty
to two or more states
Involuntary
Result of individual’s
volition
A husband or wife, during or after the
marriage, cannot be examined without the
consent of the other as to any
024373CIV
CIVIL LAW
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K. Absence
Absence is a limitation because it is a ground
for the judicial appointment of a representative
[Art. 381, Civil Code].
Note: Refer to the discussion below on
Absence.
L. Insolvency and Trusteeship
Under the Insolvency Law, a debtor who has
been found insolvent cannot dispose of his
property or receive payments [Perez citing Act
No. 1956 (Rules on Corporate Rehabilitation)].
1. Domicile
Persons
and
Residence
of
Domicile of Natural Persons
The place of their habitual residence [Art. 50,
Civil Code]
Domicile of Juridical Persons
The place where their legal representation is
established, or where they exercise their
primary functions unless there is a law or
other provision that fixes the domicile [Art. 51,
Civil Code].
Domicile v. Residence
While domicile is permanent (there is intent to
remain), the residence is temporary and may
be changed anytime (there is no necessary
intent to remain).
Requisites of Domicile
1. Residence or bodily appearance in a new
locality;
2. Intention to permanently remain there
(animus manendi); and
3. An intention to abandon the old domicile
(animus non revertendi).
There must be animus manendi coupled with
animus non revertendi. One must have an
actual change of domicile and a bona fide
intention to establish a new residence [Poe
Llamanzares v. COMELEC, G.R. No. 221697
(2016)].
024374CIV
CIVIL LAW
Kinds of Domicile
1. Domicile of Origin: Domicile of parents
of a person at the time he was born.
2. Domicile of Choice: Domicile chosen by
a person, changing his domicile of origin.
Domicile where he intends to remain
(animus revertendi).
3. Domicile by Operation of Law (e.g. Art.
69, Family Code: domicile of married
persons).
A married woman does not lose her domicile
to that of her husband. Unless there is clear
proof of abandonment, the domicile of origin
subsists [Romualdez-Marcos v. COMELEC,
G.R. No. 119976 (1995)].
A foundling found in the Philippines and/or in
Philippine embassies, consulates, and
territories abroad is presumed a natural-born
Filipino citizen regardless of the status or
circumstances of birth [RA 11767 (Foundling
Recognition and Protection Act)].
A house is not necessary to establish a
domicile [Jalosjos v. COMELEC, G.R. No.
193237 (2012)].
M. Birth and Death of Natural
Persons
Birth
For civil purposes, the fetus is considered
born if it is alive at the time it is completely
delivered from the mother’s womb [Art. 41,
Civil Code]. Because of the expectancy that it
may be born, the law protects it and reserves
its rights, making its legal existence, if born
alive, retroact to the moment of its conception
[Tolentino].
Intrauterine
Life
When Considered Born
7 months or If alive (e.g. can breathe
more
independently, etc. upon
delivery)
Less than 7 If alive after completion of
months
24 hours from delivery
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Note, however:
1. The State shall equally protect the life of
the mother and the life of the unborn from
conception [Art. II, Sec. 12, 1987
Constitution].
2. The life of a new human being
commences upon fertilization [Imbong v.
Ochoa, G.R. No. 204819 (2014)].
Death
Civil personality is extinguished by death [Art.
42, Civil Code].
Criminal liability ends with death, but civil
liability may be charged against the estate
[People v. Tirol, G.R. No. L-30538 (1981)].
Deceased
A
CIVIL LAW
Deceased
B
Presumed to
have survived
Under 15
Under 15
Older
Above 60
Above 60
Younger
Under 15
Above 60
Under 15
Above 15 but under 60, Male
different sex
Above 15 but under 60, Older
same sex
Under 15 Between 15 Between
or over 60
and 60
and 60
15
N. Presumption of Survivorship
The statutory presumption provided by Art. 43,
Civil Code applies only when there is doubt on
the order of death between persons who are
called to succeed each other. It does not
apply when there is a credible eyewitness as
to who died first [Joaquin v. Navarro, G.R. No.
5426 (1953)].
Art. 43, Civil Code vs. Sec. 3(jj), Rule 131,
Rules of Court
Art. 43, Civil Code
Sec. 3(jj), Rule 131
Only use the presumptions when there are
no facts to get inferences from
Only
used
succession
purposes
for Cannot be used for
succession
purposes
In any circumstance
Only during death in
calamities,
wreck,
battle
or
conflagration
Rule 131, Section 3(jj) provides that, except
for purposes of succession, when two persons
perish in the same calamity, and it is not
shown who died first, and there are no
circumstantial evidence to be inferred from,
the survivorship is determined from the
probabilities resulting from the strength and
the age of the sexes.
024375CIV
III. USE OF SURNAMES
A. Surname of Children
1.
Legitimate
Children
and
Legitimated
Reading Art. 364 of the Civil Code together
with the State's declared policy to ensure the
fundamental equality of women and men
before the law, a legitimate child is entitled to
use the surname of either parent as a last
name [Alanis III v. CA, G.R. No. 216425
(2020)].
2. Adopted Child
An adopted child shall bear the surname of
the adopter [Art. 365, Civil Code; Art. 189 (1),
Family Code].
Under RA 11642, the adopter has the right to
choose the name by which the child is to be
known, consistent with the best interest of the
child. An adopted child shall bear the surname
of the adopter [Sec. 41 (2), RA 11642; Art.
365, Civil Code; Art. 189 (1), Family Code].
Note: RA 11642 took effect on January 21,
2022, beyond the bar cutoff date of June 30,
2021.
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3. Illegitimate Child
Separation
Illegitimate children shall use the surname of
their mother [Art. 176, Family Code].
A woman is not prohibited from continuously
using her maiden name once she is married
because when a woman marries, she does
not change her name but only her civil status
[Remo v. Sec. of DFA, G.R. No. 169202
(2010)].
Exception [Philippine Passport Act (RA
8239)]
Once a married woman opted to adopt her
husband’s surname in her passport, she may
not revert to the use of her maiden name,
except in the following cases:
1. Death of Husband;
2. Divorce;
3. Annulment; or
4. Nullity of Marriage
2. After Marriage
Annulment
[Art. 371,
Civil Code]
Wife’s Surname
Wife is the guilty party
Shall resume using her
maiden name
Legal
Separation
[Art. 372,
Civil Code]
When legal separation has
been granted, the wife shall
continue using her name and
surname employed before
the legal separation.
Death of
Husband
[Art. 373,
Civil Code]
A widow may use the
deceased
husband’s
surname as though he were
still living, in accordance with
Art. 370, Civil Code.
C. Confusion of Names
General Rule [Art. 374, Civil Code]
In case of identity of names and surnames,
the younger person shall be obliged to use
such additional name or surname as will avoid
confusion.
Special Rules [Art. 375, Civil Code]
In the case of the identity of names and
surnames
between
ascendants
and
descendants, the word “Junior” can only be
used by a son.
Grandsons and other direct male descendants
shall either:
1. Add a middle name or the mother’s
surname, or
2. Add the Roman numerals II, III, and so on.
Note: Although Art. 375, Civil Code restricts
the use of “Junior” to sons, social usage
allows the use of “Junior” also for daughters
but not for granddaughters [Paras].
Wife is the innocent party
Wife has choice to:
• Continue using
024376CIV
husband’s surname
Use maiden name
Exception
• Court decrees otherwise;
or
• She or former husband is
married again to another
person
1. During Marriage
Prevailing rule
A married woman may use:
1. Her maiden first name and surname and
add her husband’s surname, or;
2. Her maiden first name and her husband’s
surname, or;
3. Her husband’s full name, but prefixing a
word indicating that she is his wife, such
as “Mrs.” [Art. 370, Civil Code].
4. Her maiden name [Remo v. Sec. of DFA,
G.R. No. 169202 (2010)].
Wife’s Surname
•
B. Surname of Wife During and
After Marriage
Separation
CIVIL LAW
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Usurpation and Unauthorized or Unlawful
Use of Name [Arts. 377-378, Civil Code]
Usurpation of a name and surname may be
the subject of an action for damages and
other relief [Art. 377, Civil Code].
be changed or corrected
without a judicial order,
except:
● 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.
D. Change of Names
General Rule [Art. 376, Civil Code]
No person can change his name or surname
without judicial authority.
Exception [Arts. 379-380, Civil Code]
The employment of pen names or stage
names is permitted, provided it is done in
good faith and there is no injury to third
persons. Pen names and stage names cannot
be usurped [Art. 379, Civil Code].
[Sec 3, RA 10172 amending
Sec. 5, RA 9048]
IV. ENTRIES IN THE CIVIL
REGISTRY AND CLERICAL
ERROR LAW
RA 9048 (Correction of Error in Name), as
amended by RA 10172 (Correction of Error
in Birthday and Sex)
Grounds
The petition for change of first
name or nickname may be
allowed in any of the following
cases [Sec. 4, RA 9048]:
● The petitioner finds
the first name or
nickname
to
be
ridiculous, tainted with
dishonor or extremely
difficult to write or
pronounce;
● The new first name or
nickname has been
habitually
and
continuously used by
the petitioner and he
has been publicly
known by the first
name or nickname in
the community, or;
● The change will avoid
confusion.
Under Sec. 1, RA 10172: No
entry in a civil register shall
024377CIV
CIVIL LAW
Requirement
s
Documentary Attachments:
1. A
certified
true
machine copy of the
certificate or of the
page of the registry
book containing the
entry or entries sought
to be corrected or
changed;
2. At least two (2) public
or private documents
showing the correct
entry or entries upon
which the correction or
change
shall
be
based; and
3. Other
documents
which the petitioner or
the city or municipal
civil registrar or the
consul general may
consider relevant and
necessary
for
the
approval
of
the
petition.
Additional
Documentary
Attachments
Generally:
1. Certification
from
appropriate
law
enforcement agencies
that the petitioner has
no pending case or no
criminal record.
For Day and Month in Date
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of Birth and Sex:
Earliest school record or
earliest school documents
such as, but not limited to.
1. Medical records;.
2. Baptismal certificate;
and
3. Other
documents
issued by religious
authorities.
V. RULES GOVERNING
PERSONS WHO ARE
ABSENT
For GenderSex:
Certification by an accredited
government
physician
attesting to the fact that the
petitioner did not undergo a
sex change or sex transplant.
General Rule [Art. 381, Civil Code]: A judge,
at the instance of an interested party, a
relative, or a friend, may appoint a person to
represent the absentee in all that may be
necessary.
Note: RA 9048 (as amended
by RA 10172) does not allow
a change of first name on the
ground of sex reassignment
[Silverio v. Republic, G.R. No.
174689 (2007)].
Changes in Procedure: The
petition shall be published at
least once a week for two (2)
consecutive weeks in a
newspaper
of
general
circulation.
Clerical or Typographical Error
[Sec. 2 (3), RA 10172]
Refers to a mistake committed in the
performance of clerical work in writing,
copying, transcribing, or typing an entry in the
civil register that is
1. harmless and innocuous,
2. visible to the eyes or obvious to the
understanding, and
3. can be corrected or changed only by
reference to other existing records or
records.
What Cannot Be Corrected:
1. Nationality
2. Age
3. Status
024378CIV
CIVIL LAW
A. Civil Code Provisions
1. Provisional Measures in Case of
Absence
Note: The same shall be observed when
under similar circumstances that power
conferred by the absentee has expired.
Requisites
1. A person disappears from his domicile.
2. His whereabouts are unknown.
3. He did not leave an agent to administer
his property.
Who May Be Appointed [Art. 383, Civil
Code]
General Rule: The spouse present shall be
preferred, when there is no legal separation.
Exception: If there is no spouse, any
competent person may be appointed by the
court.
Safeguarding the Absentee’s Rights and
Properties [Art. 382, Civil Code]
The judge shall specify the power, obligations,
and remuneration of the absentee’s
representative, regulating them, according to
the circumstances, by the rules concerning
guardians.
2. Declaration of Absence
When Absence May Be Declared [Art. 384,
Civil Code]
A person’s absence may be declared
1. After two years have elapsed without any
news about the absentee or since the
receipt of the last news, or
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2. After five years have elapsed, in case the
absentee left a person in charge of the
administration of his property.
Who May Ask for the Declaration of
Absence [Art. 385, Civil Code]
1. The spouse present;
2. The heirs instituted in a will, who may
present an authentic copy of the same;
3. The relatives who may succeed by the law
of intestacy;
4. Those who may have, over the property of
the absentee, some right subordinated to
the condition of his death.
Effectivity of the Judicial Declaration of
Absence [Art. 386, Civil Code]
The judicial declaration of absence shall not
take effect until six months after its publication
in a newspaper of general circulation.
Appointment of Administrator [Art. 387,
Civil Code]
An administrator of the absentee’s property
shall be appointed in accordance with Article
383.
3. Administration of the Property of
the Absentee
Appointment of Administrator [Art. 387,
Civil Code]
An administrator of the absentee’s property
shall be appointed in accordance with Article
383.
On Alienation or Encumbrance of the
Property Administered [Art. 388, Civil Code]
The wife who is appointed as an administratrix
of the husband’s property cannot alienate or
encumber the husband’s property; or that of
the conjugal partnership, without judicial
authority.
Cessation of Administration [Art. 389, Civil
Code]
When Administration Ceases
1. When the absentee appears personally or
by means of an agent;
2. When the death of the absentee is proved
and his testate or intestate heir appears;
024379CIV
CIVIL LAW
3. When a third person appears, showing by
a proper document that he has acquired
the absentee’s property by purchase or
other titles.
Effects of Cessation
1. The administrator shall cease in the
performance of his office, and;
2. The property shall be at the disposal of
those who may have a right thereto.
4. Presumption of Death
General Rule [Art. 390, Civil Code & Art. 41,
Family Code]
1. Seven (7) years, for all purposes, except
succession and marriage.
2. Ten (10) years, for the purpose of the
opening of the succession, except
marriage.
3. Four (4) consecutive years, for purposes
of remarriage.
Exception [Art. 390, Civil Code]
If the absentee disappeared after the age of
seventy-five (75) years: An absence of five (5)
years shall be sufficient to open his
succession.
Where Disappearance is Attendant with
Dangerous Circumstance [Art. 391, Civil
Code]
The absentee shall be presumed dead for all
purposes, if he were absent under the
following circumstances:
1. Where the absentee is on board a vessel
lost during a sea voyage, or an aeroplane
which is missing, who has not been heard
of for four (4) years since the loss of the
vessel or airplane;
2. Where the absentee is in the armed forces
who have taken part in the war, and has
been missing for four (4) years.
3. Where the absentee has been in danger
of death under other circumstances and
his existence has not been known for four
(4) years.
In Case of the Absentee’s Reappearance or
Proof of Existence [Art. 392, Civil Code]
If the absentee appears, or without appearing,
his existence is proved, he shall recover his
property in which it may have been alienated
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or the property acquired therewith; but he
cannot claim either fruits or rents.
Statutory Presumption on the Order of
Death Between Persons Who Are Called to
Succeed Each Other [Art. 43, Civil Code]
Trigger: If there is doubt, as between two or
more persons who are called to succeed each
other, as to which of them died first
B. Presumptive Death of Absent
Spouse Under the Family Code
General Rule [Art. 41, Family Code]
Marriage contracted by any person during the
subsistence of a previous marriage is void.
Exceptions [Art. 41, Family Code]
When there is a subsequent marriage due to
ordinary absence, where:
1. The prior spouse had been absent for
four (4) consecutive years under
ordinary circumstances, or for two (2)
consecutive
years
under
the
extraordinary circumstances in Art. 391,
Civil Code; and
2. The surviving spouse had a well-founded
belief that the absent spouse was already
dead.
MARRIAGE AND FAMILY RELATIONS
MARRIAGE AND
FAMILY RELATIONS
I. GENERAL PRINCIPLES
CIVIL LAW
any contract they may make. The reciprocal
rights arising from this relation, so long as it
continues, are such as the law determines
from time to time, and none other [Goitia v.
Campos Rueda, G.R. No. 11263 (1916)].
A. Essential Requisites
Essential Requisites [Art. 2, Family Code]
1. Legal capacity of the contracting parties,
who must be a male and a female; and
2. Consent (of the contracting parties) is
freely given in the presence of a
solemnizing officer.
Formal Requisites [Art. 3, Family Code]
1. Authority of solemnizing officers (subject
to Art. 35 (2), Family Code)
2. A valid marriage license (subject to
exceptions)
3. Marriage ceremony
Effect of Absence or Defect/Irregularity of
the Requisites on the Marriage [Art. 4,
Family Code]
Absence
Defect or Irregularity
Essential
Void
Voidable
Formal
Void
No effect, but makes
the party responsible
for such irregularity
civilly, criminally and/or
administratively liable
Note: The term “defect” is used for essential
requisites while “irregularity” is used for formal
requisites.
1. Sex
Article 1, Family Code. Marriage is a special
contract of permanent union between a man and a
woman entered into in accordance with law for the
establishment of conjugal and family life. It is the
foundation of the family and an inviolable social
institution whose nature, consequences, and
incidents are governed by law and not subject to
stipulation, except that marriage settlements may
fix the property relations during the marriage within
the limits provided by this Code.
Marriage is an institution, the maintenance of
which the public is deeply interested in. It is a
relation for life and the parties cannot
terminate it at any shorter period by virtue of
024380CIV
Note: The best source for citing the
requirement of male/female is still statutory,
as provided explicitly Art. 1, Family Code.
Marriage is a special contract of permanent
union between a man and a woman.
A person’s sex is an essential factor in
marriage and family relations. It is a part of a
person’s legal capacity and civil status. In this
connection, sex is defined as “the sum of
peculiarities of structure and function that
distinguish a male from a female.” The sex of
a person is determined at birth, visually done
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by the birth attendant (the physician or
midwife) by examining the genitals of the
infant.
Thus, the words “male” and “female” in
everyday understanding do not include
persons
who
have
undergone
sex
reassignment. Furthermore, considering that
there is no law legally recognizing sex
reassignment, the determination of a person’s
sex made at the time of his or her birth, if not
attended by error, is immutable [Silverio v.
Republic, G.R. No. 174689 (2007)].
However, the Supreme Court ruled in the case
of Republic v. Cagandahan [G.R. No. 166676
(2008)] that when the change in sex happens
naturally, as when the person has Congenital
Adrenal Hyperplasia (CAH) or is “biologically
or naturally intersex,” the determining factor in
their sex classification would be what they,
having reached the age of majority, with good
reason thinks is their sex. Sexual
development in cases of intersex persons
makes the sex classification at birth
inconclusive, hence a change in name and
sex as registered in the birth certificate is here
allowed.
2. Age
Article 5, Family Code. Any male or female of the
age of eighteen years or upwards not under any of
the impediments mentioned in Articles 37 and 38,
may contract marriage.
Other Impediments Referenced:
Art. 37, Family Code: Incestuous Marriages
1. Between ascendants and descendants of
any degree; and
2. Between brothers and sisters, whether of
the full or half-blood.
Art. 38, Family Code: Void for public policy
1. Between collateral blood relatives,
whether legitimate or illegitimate, up to the
fourth civil degree;
2. Between step-parents and step-children;
3. Between parents-in-law and children-inlaw;
4. Between the adopting parent and the
adopted child;
024381CIV
CIVIL LAW
5. Between the surviving spouse of the
adopting parent and the adopted child;
6. Between the surviving spouse of the
adopted child and the adopter;
7. Between an adopted child and a legitimate
child of the adopter;
8. Between adopted children of the same
adopter; and
9. Between parties where one, with the
intention to marry the other, killed that
other person's spouse or his or her own
spouse.
3. Consent Freely Given
Consent here refers to the consent of the
contracting parties. The consent must refer to
the contracting parties’ bona fide intention to
be married to the other. i.e., to make the
woman his wife [People v. Santiago, G.R. No.
27972 (1927)].
Absence of consent renders the marriage void
while defective consent makes it voidable [Art.
4, Family Code].
Situation
Consent
Status of
Marriage
Either party was Vitiated/
of
unsound Defective
mind [Art. 45
(2),
Family
Code]
Voidable
Mistake as to Absent
the identity of
the other party
[Art. 35 (5),
Family Code]
Void
e.g.
if
one
mistakenly
marries
his
fiancée’s
twin
[Tolentino]
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Situation
Consent
Mistake as to Absent
the
legal
consequences
and nature of
the
marriage
ceremony
Status of
Marriage
Void
Situation
Consent
Consent
was Vitiated/
obtained
by Defective
fraud:
a. Nondisclosure of
previous
conviction of
crime of
moral
turpitude
b. Concealmen
t of
pregnancy
by another
man
c. Concealmen
t of STD
d. Concealmen
t of drug
addiction,
habitual
alcoholism,
homosexuality, or
lesbianism
[Art. 46,
Family
Code]
Voidable
Consent
was Vitiated/
obtained by:
Defective
a. Force
b. Intimidation
c. Undue
Influence
[Art. 45 (4),
Family
Voidable
Status of
Marriage
Code]
Marriage
Absent
entered into by
a person whose
real intent is to
avoid
prosecution for
rape [People v.
Santiago, G.R.
No.
27972
(1927)]
e.g. thinking the
ceremony is a
joke, pretend, or
play-acting
[Tolentino]
024382CIV
CIVIL LAW
Void
Note: Defects in consent are discussed further
below in void and voidable marriages.
4. No Subsisting Marriage
A marriage contracted by any person during
the subsistence of a previous valid marriage
shall be null and void unless there is a
declaration of presumptive death of the
absentee spouse [Art. 41, Family Code].
The parties are not required to obtain a
judicial declaration of absolute nullity of a void
ab initio first and subsequent marriages in
order to raise it as a defense in a bigamy case
[Pulido v. People of the Philippines, G.R. No.
220149 (2021)].
B. Formal Requisites
1. Marriage Ceremony
No prescribed form or religious rite for the
solemnization of marriage is required [Art. 6,
Family Code].
2. Authority of Solemnizing Officer
Who May Solemnize Marriage:
Normal Circumstances
Incumbent member of the Judiciary, within
his jurisdiction [Art. 7, Family Code]
Priest, Rabbi, Imam or Minister of any
Church or Religious Sect who must be:
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Normal Circumstances
a. Duly authorized by his church or
religious sect;
b. Registered with the civil registrar
general;
c. Acting within the limits of the written
authority granted to him by his church or
religious sect;
d. At least one of the contracting parties
belongs to the solemnizing officer’s
church or religious sect [Art. 7, Family
Code]
Municipal and City Mayors [Secs. 444 and 4455, Local Government Code]
Articulo Mortis (in addition to those
above mentioned)
Ship Captain or Airplane Chief may
solemnize a marriage in articulo mortis
between passengers or crew members
[Arts. 7 and 31, Family Code]
A Military Commander of a unit may
solemnize marriages in articulo mortis
between persons within the zone of military
operation in the absence of a chaplain [Arts.
7 and 32, Family Code]
Marriages Abroad
Consul-general, consul or vice-consul may
solemnize marriages between Filipino
citizens abroad [Arts. 7 and 10, Family
Code]
General Rule: Those solemnized by any
person not legally authorized to perform
marriages are void.
Exception: Unless such marriages were
contracted with either or both parties believing
in good faith that the solemnizing officer had
the legal authority to do so [Art. 35 (2), Family
Code].
Good faith refers to questions of fact, not
ignorance of the law (e.g. they did not know
the priest’s license expired vs. thinking a
024383CIV
CIVIL LAW
Senator could solemnize their marriage)
[Legarda, Deriquito-Mawis, and Vargas].
Note: An irregularity in a formal requisite will
not affect the validity of the marriage but those
responsible may be held criminally, civilly,
and administratively liable [Arts. 4 & 7,
Family Code].
3. Marriage License
General Rule: The license required is that
which is issued by the local registrar of the city
or municipality where either contracting party
habitually resides [Art. 9, Family Code]. The
publication is required. The civil registrar
determines the age of the parties.
Where Valid: License valid in any part of the
Philippines.
Period of Validity: It will be valid for 120 days
from the date of issue, automatically canceled
at the expiration of such period.
Foreign National
1. When either or both parties are foreign
nationals: A certificate of legal capacity
to contract marriage issued by a
diplomatic or consular official, shall be
submitted before a marriage license can
be obtained [Art. 21, Family Code]
2. Stateless persons or refugees from other
countries:
Affidavit
stating
circumstances showing the capacity to
contract marriage, instead of a certificate
of legal capacity [Art. 21, Family Code]
Note: The Apostille Convention, which took
effect in the Philippines on 14 May 2019,
simplifies the authentication of foreign
documents. Public documents executed in
Apostille-contracting
countries,
once
Apostilled, no longer need authentication from
the Philippine embassy or consulate general.
In the same way, PH documents Apostillized
by the DFA need not be authenticated by
Foreign embassies or consulate generals if
the country is a member of the convention
[DFA Public Advisory].
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Exemption from License Requirement
1. Marriage in articulo mortis [Art. 27,
Family Code]
The marriage may be solemnized without the
necessity of a marriage license. It remains
valid even if the ailing party survives.
a. Between
passengers
or
crew
members in a ship or airplane [Art.
31, Family Code]
b. Persons within a military zone [Art.
32, Family Code]
c. Other situations in articulo mortis
2. Marriage in remote and inaccessible
places [Art. 28, Family Code]
3. Marriages by Muslims and Ethnic
cultural minorities provided they are
solemnized in accordance with their
customs, rites, or practices [Art. 33,
Family Code]
4. Marriage by parties who have cohabited
for at least 5 years without any legal
impediment to marry each other [Art. 34,
Family Code; Ninal v. Bayadog, G.R. No.
133778 (2000)]
Note: A false affidavit of having lived together
for 5 years as husband and wife cannot be
considered as a mere irregularity in the formal
requisites of marriage but a complete
absence, rendering their marriage void ab
initio [De Castro v. Assidao-De Castro, G.R.
No. 160172 (2008)].
Requisites for the 5-year Cohabitation to
be Valid for the Exemption from Acquiring
a Marriage License
1. The man and woman must have been
living together as husband and wife for at
least five (5) years before the marriage;
2. The parties must have no legal
impediment to marry each other;
3. The fact of absence of legal impediment
between the parties must be present at
the time of marriage;
4. The parties must execute an affidavit
stating that they have lived together for at
least five years [and are without legal
impediment to marry each other]; and
5. The solemnizing officer must execute a
sworn statement that he had ascertained
the qualifications of the parties and that he
024384CIV
CIVIL LAW
had found no legal impediment to their
marriage [Borja-Manzano v. Judge
Sanchez, A.M. MTJ-00-1329 (2001)].
II. MIXED MARRIAGES,
FOREIGN MARRIAGES,
AND FOREIGN DIVORCE
A.
Marriages
Abroad
Solemnized
General Rule: Marriages solemnized abroad
in accordance with the laws in force in that
country shall be valid in the Philippines [Art.
26 (1), Family Code].
Exceptions: Void when it involves
1. A marriage where one or both parties are
below 18 years old [Art. 35 (1), Family
Code]
2. Bigamous or polygamous marriage [Art.
35 (4), Family Code]
3. Mistake in identity [Art. 35 (5), Family
Code]
4. Subsequent marriages that are void under
Art. 53 [Art. 35 (6), Family Code]
5. Psychological incapacity [Art. 36, Family
Code]
6. Incestuous marriages [Art. 37, Family
Code]
7. Marriage void for reasons of public policy
[Art. 38, Family Code]
Note: This means that the foreign marriage
may still be recognized as valid in the
Philippines even if it would have fallen under
Pars. 2 & 3, Art. 35, Family Code so long as it
is valid under the law of the country in which it
was solemnized.
Essential
Requisites
Formal Requisites
Inherent
in
the Requirements
parties,
carried independent of the
everywhere
parties
Lex Nationalii – Lex
loci
Laws relating to celebrationis – If
family rights and valid
where
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Essential
Requisites
Formal Requisites
duties, or to the
status,
condition,
and legal capacity of
persons are binding
upon PH citizens
even though living
abroad [Art. 15, Civil
Code]
celebrated,
then
valid
everywhere;
forms of contracting
marriage are to be
regulated by the law
where
it
is
celebrated [Art. 17,
Civil Code]
Foreign marriages
void under PH law
due to lack of an
essential requisite,
even if valid under
foreign laws, will not
be recognized.
Foreign marriages
may be void under
PH law due to the
absence of a formal
requisite
under
foreign laws.
Proof of Foreign Marriage in order that it
may be upheld:
1. Provisions of the foreign law, and
2. Celebration of the marriage in accordance
with said provisions.
B. Foreign Divorce
If the foreign spouse obtains a valid divorce
decree abroad capacitating him/her to
remarry, the Filipino spouse shall have the
capacity to remarry under Philippine law [Art.
26 (2), Family Code].
The citizenship of the spouses at the time of
the divorce determines their capacity to obtain
a valid divorce [Quita v. Dandan, G.R. No.
124862 (1998)].
A marriage between two Filipinos cannot be
dissolved even by a divorce obtained abroad,
because of Arts. 15 & 17, Civil Code [Garcia
v. Recio, G.R. No. 138322 (2001)].
Aliens may obtain divorces abroad, which may
be recognized in the Philippines, provided
they are valid according to their national law;
thus, it is a matter of evidence. The marriage
tie when thus severed as to one party ceases
to bind either [Van Dorn v. Romillo, G.R. No.
L-68470 (1985)].
024385CIV
CIVIL LAW
Divorces obtained abroad by Filipino citizens
may now be validly recognized in the
Philippines but only in cases of mixed
marriages involving a Filipino and a foreigner
[Republic of the Philippines v. Manalo, G.R.
No. 221029 (2018)].
Note: Following the ruling in Galapon v.
Republic [G.R. No. 243722 (2020)], paragraph
2, Art. 26, Family Code applies to mixed
marriages where the divorce decree is: (1)
obtained by the foreign spouse; (2) obtained
jointly by the Filipino and foreign spouse; or
(3) obtained solely by the Filipino spouse.
III.
VOID MARRIAGES
[See Tan-Andal v. Andal, G.R. No. 196359,
May 11, 2021]
Types of Void Marriages
1. Absence
of
any
formal/essential
requisites [Art. 35, Family Code]
2. Bigamous and polygamous marriages
[Art. 35 (4), Family Code]
3. Bad faith of both spouses in the
subsequent marriage [Art. 44, Family
Code]
4. Psychologically Incapacitated spouse
[Art. 36, Family Code]
5. Void subsequent marriages [Art. 35 (6),
Family Code] for failure to comply with Art.
53, Family Code
6. Incestuous Marriages [Art. 37, Family
Code]
7. Void by reasons of public policy [Art. 38,
Family Code]
Article 39, Family Code. The action or defense for
the declaration of absolute nullity shall not
prescribe. (as amended by RA 8533)
A. Absence of Requisites
Void from the Beginning [Art. 35, Family
Code]
1. Marriage where any party is below
eighteen (18) years of age even with the
consent of parents or guardians
2. Marriage solemnized by any person
not legally authorized to perform
marriages unless such marriages were
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contracted with either or both parties
believing in good faith that the
solemnizing officer had legal authority to
do so
Note: One’s belief in good faith that the
solemnizing officer has the required
authority is a mistake of fact, and not of
law.
3.
4.
5.
6.
Marriage solemnized without a valid
marriage license, except in marriages
under exceptional circumstances
Bigamous or polygamous marriages
not falling under Art. 41 (Art. 41, Family
Code: Subsequent marriage by present
spouse who obtained a declaration of
presumptive death for absent spouse
prior to the subsequent marriage)
There is a mistake as to the identity of
the other contracting party
Subsequent marriages that are void
under Art. 53, Family Code (Noncompliance with Art. 52, Family Code)
To be considered void on the ground of
absence of a marriage license, the law
requires that the absence of such marriage
license must be apparent on the marriage
contract, or at the very least, supported by a
certification from the local civil registrar that no
such marriage license was issued to the
parties [Alcantara v. Alcantara, G.R. No.
167746 (2007)].
B. Bigamous and Polygamous
Marriages
Elements of a Bigamous Marriage
1. Offender legally married
2. Marriage not legally dissolved
3. Offender
contracts
a
subsequent
marriage
4. Subsequent marriage has all the
essential requisites for validity, except
legal capacity [Capili v. People, G.R. No.
183805 (2013)]
CIVIL LAW
to all marriages celebrated under the Civil
Code and the Family Code. Art. 40, Family
Code did not amend Art. 349, Revised Penal
Code, and thus, did not deny the accused the
right to collaterally attack the validity of a void
ab initio marriage in the criminal prosecution
for bigamy [Pulido v. People of the
Philippines, G.R. No. 220149 (2021)]. (Note:
This case was promulgated after the cutoff
date of June 30, 2021)
Presumptive Death
Failure of the spouse present to obtain a
judicial declaration of presumptive death
before entering a subsequent marriage [Art.
41, Family Code].
Bad Faith of Both Spouses
Both spouses entered a subsequent marriage
after presumptive death, who acted in bad
faith [Art. 44, Family Code].
C. Subsequent Marriage When
One Spouse is Absent
Requirements for Subsequent Marriage to
be Valid When Prior Spouse is Absent [Art.
41, Family Code]
1. Subsequent marriage due to ordinary
absence where:
a. Absent spouse had been absent for 4
consecutive years;
b. The spouse present had a wellfounded belief that the absent
spouse is dead; and
c. Judicial declaration of presumptive
death was secured (no prejudice to
the effect of the reappearance of the
absent spouse)
2. Subsequent
marriage
due
to
extraordinary absence where:
a. Absent spouse had been missing for 2
consecutive years;
b. There is a danger of death under the
circumstances set forth in Art. 391,
Civil
Code
attendant
to
the
disappearance;
c. Onboard vessel lost at sea voyage,
airplane,
d. Armed forces in war, or
e. The danger of death under other
circumstances, existence not known
The parties are not required to obtain a
judicial declaration of absolute nullity of a
void ab initio first and subsequent
marriages in order to raise it as a defense
in a bigamy case. The same rule now applies
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3. The spouse present had a well-founded
belief that the missing person is dead;
and
4. Judicial declaration of presumptive
death was secured through a summary
proceeding (no prejudice to the effect of
the reappearance of the absent spouse).
Although incapable of an exact definition,
“well-founded belief” requires a stringent
standard. Jurisprudence demands an active
search for the absentee spouse, along with
attempts to contact legal authorities to aid in
the search and corroborative evidence to
support the claim that a diligent search and
inquiry was made [Republic v. Quiñonez, G.R
No. 237412 (2020)].
Effect of Reappearance of Absent Spouse
General Rule: The subsequent marriage
remains valid.
Exception: It is automatically terminated by
the recording of the affidavit of reappearance
of the absent spouse at the instance of any
interested person, with due notice to the
spouses of the subsequent marriage [Art. 42,
Family Code].
Note: It is the recording of the affidavit of
reappearance that automatically terminates
the subsequent marriage. Hence, if the
absentee spouse reappears without recording
an affidavit of reappearance, then there is no
legal effect. Meanwhile, the absentee spouse
cannot remarry [Tolentino].
Exception to the Exception: If there is a
judgment annulling the previous marriage or
declaring it void ab initio [Art. 42, Family
Code].
Good faith: Period of absence for
presumptive death is mandatory. However,
the law shortens the period for purposes of
remarriage.
The period of absence is counted from when
the party last heard from his/her absentee
spouse [Jones v. Hortiguela, G.R. No. 43701
(1937)].
024387CIV
CIVIL LAW
Absence of Spouse under Art. 41 Family
Code [Republic v. Nolasco, G.R. No. 94053
(1993)]
[Art. 41, Family Code]
1. A well-founded belief
that the absent spouse
is dead; and
Grounds
Absence of:
a. 4
years
under
normal
circumstances; or
b. 2
years
under
extraordinary
circumstances
Summary
Required
proceedings
for
the
declaration
of
presumptive
death
The subsequent marriage
Effect on the is automatically terminated
subsequent
by the recording of an
marriage
affidavit of reappearance of
the absent spouse
D. Bad Faith of Both Spouses
Article 44, Family Code. If both spouses of the
subsequent marriage acted in bad faith, said
marriage shall be void ab initio and all donations by
reason of marriage and testamentary dispositions
made by one in favor of the other are revoked by
operation of law.
E. Psychological Incapacity
Article 36, Family Code. A marriage contracted by
any party who, at the time of the celebration, was
psychologically incapacitated to comply with the
essential marital obligations of marriage, shall
likewise be void even if such incapacity becomes
manifest only after its solemnization.
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Nullification of Marriage under Art. 36,
Family Code (as recently articulated in
Tan-Andal v. Andal; Totality of Evidence
Rule)
The Court in Tan-Andal v. Andal [G.R. No.
196359 (2021)] pronounced that psychological
incapacity is not a medical but a legal
concept. It refers to a personal condition that
prevents a spouse from complying with
fundamental marital obligations only in relation
to a specific partner that may exist at the time
of marriage but may have been revealed
through behavior subsequent to the
ceremonies. In this case, the Court stated that
it need not be a permanent and incurable
disorder (effectively overturning previous
jurisprudence on the matter). Therefore, the
testimony of a psychologist or psychiatrist is
not mandatory in all cases. The totality of
evidence must show clear and convincing
evidence to cause the declaration of nullity of
marriage.
Things to be Considered in Invoking and
Proving Psychological Incapacity:
1. The burden of proof in proving
psychological incapacity is on the plaintiff.
The quantum of proof required in nullity
cases is clear and convincing evidence
2. Psychological incapacity is neither a
mental incapacity nor a personality
disorder that must be proven through
expert testimony. There must be proof,
however, of the durable or enduring
aspects of a person’s personality, called
“personality structure,” which manifests
itself through clear acts of dysfunctionality
that undermine the family
3. Incurable, not in the medical, but in the
legal sense; incurable as to the partner
4. As to gravity, it must be shown that the
incapacity is caused by a genuinely
serious psychic cause
5. Juridical antecedence
6. Marital obligations refer to Arts 68-71,
220, 221 & 225, Family Code
7. The decisions of the National Appellate
Matrimonial Tribunal of the Catholic
Church of the Philippines have a
persuasive effect on nullity cases pending
before secular courts [Tan-Andal v. Andal,
G.R. No. 196359 (2021)].
024388CIV
CIVIL LAW
F. Incestuous Marriage
Marriages between the following are
considered incestuous, and are therefore
void ab initio:
1. Between ascendants and descendants
of any degree, legitimate or illegitimate
2. Between brothers and sisters, whether
full or half-blood, legitimate or illegitimate
[Art. 37, Family Code]
G. Against Public Policy
Marriages between the following are
considered against public policy, and are
therefore void ab initio:
1. Between collateral blood relatives,
legitimate or illegitimate, up to the fourth
civil degree;
2. Between step-parents and step-children;
(Note: Stepbrothers and stepsisters can
marry because marriages between them
are not among those enumerated in Art.
38, Family Code)
3. Between parents-in-law and children-inlaw;
4. Between adopting parent and adopted
child;
5. Between the surviving spouse of the
adopting parent and the adopted child;
6. Between the surviving spouse of the
adopted child and the adopter;
7. Between an adopted child and a legitimate
child of the adopter;
8. Between adopted children of the same
adopter; and
9. Between parties where one, with the
intention to marry the other, killed that
other person's spouse, or his or her own
spouse [Art. 38, Family Code]
Note: The following relationships are outside
of Arts. 37-38, Family Code and are therefore
not impediments to marriage:
1. Brother-in-law with sister-in-law;
2. Stepbrother with stepsister;
3. Guardian with ward; and
4. Adopted son of the husband with adopted
daughter of the wife (i.e. stepchildren).
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H.
Non-compliance
Recording Requirement
Declaration of Nullity
with
After
Subsequent marriage of spouses, where the
requirements of recording under Art. 52,
Family Code has not been complied with,
shall be null and void [Art. 53, Family Code].
The judgment of annulment or of absolute
nullity of the marriage, the partition and
distribution of the properties of the spouses,
and the delivery of the children's presumptive
legitime shall be recorded in the appropriate
civil registry and registries of property;
otherwise, the same shall not affect third
persons [Art. 52, Family Code].
Arts. 50, 51, and 52, Family Code, in relation
to Arts. 102 and 129, Family Code (i.e., the
rules governing the liquidation of the absolute
community or the conjugal partnership of
gains, the property regimes for valid and
voidable marriages) relate only to voidable
marriages and, exceptionally, to void
marriages under Art. 40, Family Code (i.e.
the declaration of nullity of a subsequent
marriage contracted by a spouse of a prior
void marriage before the latter is judicially
declared void) [Valdez v. QC-RTC, G.R. No.
122749 (1996)].
Under the Civil Code, no judicial declaration
for nullity of previous marriage was required to
contract a subsequent marriage [People v.
Mendoza, G.R. No. L-5877 (1954)].
Note: This is now the general rule under
Pulido v. People, supra. [G.R. No. 220149
(2021)]., which was promulgated after the
cutoff date of June 30, 2021.
Effects of Termination of Subsequent
Marriage Under Art. 42 [Art. 43, Family
Code]
1. Children of subsequent marriage:
conceived prior to its termination
considered legitimate; custody and
support decided by the court in a proper
proceeding.
2. Property
Regime:
dissolved
and
liquidated (party in bad faith shall forfeit
024389CIV
CIVIL LAW
his/her share in favor of the common
children or if there are none, children of
the guilty spouse by a previous marriage,
and in case there are none, to the
innocent spouse).
3. Donation propter nuptias: remains valid,
(but if the donee contracted marriage in
bad faith, donations are revoked by
operation of law)
4. Insurance benefits: innocent spouse
may revoke the designation of the guilty
party as beneficiary, even if such
designation is stipulated as irrevocable.
5. Succession Rights: party in bad faith
shall be disqualified to inherit from the
innocent spouse, whether testate or
intestate.
Both Spouses Guilty of Bad Faith
If both spouses of the subsequent marriage
acted in bad faith, all donations by reason of
marriage and testamentary dispositions made
by one party in favor of the other are revoked
by operation of law [Art. 44, Family Code].
Who may File the Petition for Nullity of
Void Marriages?
General Rule: Only the husband or wife may
file the petition [Sec. 2, AM No. 02-11-10-SC].
Exceptions:
1. Nullity of marriage cases commenced
before the effectiveness of A.M. No. 0211-10-SC
2. Marriages
celebrated
during
the
effectiveness of the Civil Code [Carlos v.
Sandoval, G.R. No 179922 (2008)]
Procedure in Attacking a Void Marriage
Void Marriages may be attacked collaterally or
directly.
Safeguard
Against
Collusion
and
No Confession of Judgment
In the cases referred to in the preceding
paragraph i.e., all cases of annulment or
declaration of absolute nullity of marriage, no
judgment shall be based upon a stipulation of
facts or confession of judgment [Art. 48 (2),
Family Code].
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CIVIL LAW
Stipulation of Facts
An admission by both parties after agreeing to
the existence of any of the grounds or facts
that would constitute a void/voidable marriage.
apply in the proper cases to marriages that
are declared void ab initio or annulled by final
judgment under Arts. 40 and 45 [Art. 50 (1),
Family Code].
Confession of Judgment
The admission by one party admitting his/her
fault to cause the invalidity of the marriage.
Final judgment in such cases shall provide for:
1. Liquidation, partition, and distribution of
the properties of the spouses
2. Custody and support of the common
children
3. Delivery of their presumptive legitimes
Although the admission of guilt of the wife
constitutes a confession of judgment, the
husband was also able to present other
evidence to support the allegation. Hence,
there was no collusion [Ocampo v.
Florenciano, G.R. No. L-13553 (1960)].
Participation of the OSG
The obvious intent of the AM 02-11-10-SC
was to require the OSG to appear as counsel
for the State in the capacity of a defensor
vinculi (i.e., defender of the marital bond) to
oppose petitions for, and to appeal judgments
in favor of declarations of nullity of marriage
under Art. 36, Family Code, thereby ensuring
that only the meritorious cases for the
declaration of nullity of marriages based on
psychological incapacity-those sufficiently
evidenced by gravity, incurability, and juridical
antecedence-would succeed [Mendoza v.
Republic, G.R. No. 157649 (2012)].
No Motion to Dismiss
Sec. 7, AM 02-11-10-SC prohibits the filing of
a motion to dismiss in actions for annulment of
marriage [Aurelio v. Aurelio, G.R. No. 175367
(2011)].
Effect of Pendency of Action for
Declaration of Nullity:
1. The court shall provide for the support of
the spouses.
2. The custody and support of the common
children, giving paramount consideration
to their moral and material welfare, their
choice of parent with whom they wish to
remain.
3. The court shall also provide for visitation
rights of the other parent [Art. 49, Family
Code].
Effect of Final Judgment Declaring Nullity
The effects provided for by Pars. 2, 3, 4 & 5,
Art. 43 and by Art. 44, Family Code shall also
024390CIV
Unless: Such matters had been adjudicated
in previous judicial proceedings [Art. 50 (2),
Family Code].
All creditors of the spouses/property regime
shall be notified of the proceedings for
liquidation [Art. 50 (3), Family Code].
In the partition, the conjugal dwelling and lot
shall be adjudicated to the spouse with whom
majority of the common children remain [Art.
102 and 129, Family Code].
Generally, children born or conceived within
void marriages are illegitimate.
Exceptions:
1. Children conceived or born before the
judgment under Art. 36 has become final
and executory [Art. 54, Family Code]
2. Children conceived or born of subsequent
marriages under Art. 53 [Art. 54, Family
Code]
IV. VOIDABLE
MARRIAGES
Art. 4, Family Code states that a defect in any
of the essential requisites shall render the
marriage voidable as provided in Art. 45,
Family Code.
Grounds for Annulment that Must Exist at
the Time of the Marriage [Art. 45, Family
Code]
1. The party on whose behalf it is sought to
have the marriage annulled was eighteen
(18) years of age or over but below
twenty-one (21), and the marriage was
solemnized without the consent of the
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2.
3.
4.
5.
6.
parents, guardian, or person having
substitute parental authority over the
party, in that order, unless after attaining
the age of twenty-one (21), such party
freely cohabited with the other and both
lived together as husband and wife;
Either
party
was
of
unsound
mind, unless such party after coming to
reason, freely cohabited with the other as
husband and wife;
The consent of either party was obtained
by fraud, unless such party afterward,
with full knowledge of the facts
constituting the fraud, freely cohabited
with the other as husband and wife;
The consent of either party was obtained
by force, intimidation or undue
influence unless the same having
disappeared or ceased, such party
thereafter freely cohabited with the other
as husband and wife;
Either party was physically incapable of
consummating the marriage with the
other, and such incapacity continues and
appears to be incurable; or
Either party was afflicted with a sexually
transmissible disease found to be
serious and appears to be incurable.
Nature of an Action for Annulment
Action in rem, concerns the status of parties.
1. The res is the relation between parties or
marriage tie.
2. Jurisdiction depends on nationality or
domicile not the place of celebration.
A. Lack of Parental Consent
Par. 1, Art. 45, Family Code provides the first
ground for a voidable marriage, which is the
solemnization of a marriage of a party
between 18-21 years of age without the
consent of their parents.
May be ratified by the party 18 or above but
below 21 upon free cohabitation upon
reaching 21.
B. Insanity
Par. 2, Art. 45, Family Code provides the
second ground for a voidable marriage, which
024391CIV
CIVIL LAW
is a marriage entered into by an insane party
or a person of unsound mind.
Must exist at the time of the celebration of the
marriage. The insanity that occurs after the
celebration of marriage does not constitute a
cause for nullity [Katipunan v. Tenorio, G.R.
No. 43442 (1937)].
C. Fraud
Par. 3, Art. 45, Family Code provides the
third ground for a voidable marriage, wherein
consent to the marriage was obtained
through fraud. The party who was the victim
of the fraud may, however, ratify the detection
in the marriage by voluntarily cohabiting with
the party after knowledge of the facts
constituting the fraud.
Article 46, Family Code. Any of the following
circumstances shall constitute fraud referred to in
No. 3 of the preceding Article:
1. Non-disclosure of a previous conviction by final
judgment of the other party of a crime involving
moral turpitude;
2. Concealment by the wife of the fact that at the
time of marriage, she was pregnant by a man
other than her husband;
3. Concealment
of
sexually
transmissible
disease, regardless of its nature, existing at
the time of marriage; or
4. Concealment of drug addiction, habitual
alcoholism or homosexuality or lesbianism
existing at the time of marriage.
No other misrepresentation or deceit as to
character, health, rank, fortune or chastity shall
constitute such fraud as will give grounds for the
action of annulment of marriage.
Note: The enumeration of the grounds for
annulment under Art. 46, Family Code for
reasons of fraud or vice of consent is
exclusive. No other misrepresentation or
deceit of character, health, rank, fortune, or
chastity shall constitute fraud.
Non-Disclosure of Conviction of Crime
Involving Moral Turpitude
1. The crime must involve moral turpitude,
or “Conduct that is contrary to justice,
honesty, and morality” [Black’s Law
Dictionary]
2. Must be convicted by final judgment
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3. Conviction must be prior to marriage
A crime involves moral turpitude when it
pertains to an act of “baseness, vileness,
depravity in the private and social duties
which a man owes to his fellow man or to
society in general, contrary to the accepted
and customary rules of right and duty between
man and man” [Teves v. COMELEC, G.R. No.
180363 (2009)].
Concealment of Pregnancy by Another
Man
Wife must have:
1. Concealed her pregnancy and
2. Pregnancy is by another man other than
her husband
The concealed pregnancy, which vitiates
consent, must have existed at the time of
the marriage.
It has been held that where the non-marital
child was already almost 3 years old when the
spouses got married, any purported fraud the
wife may have committed to induce the
husband to marry her cannot be considered
as fraudulent concealment under Article 46
(2). This is because the wife was not pregnant
at the time of the marriage [Republic v.
Villacorta, G.R. No. 249953 (2021)].
Concealment of Sexually Transmissible
Disease
The STD that was concealed from the other
spouse need not be serious and incurable.
When the ground for annulment falls under
Par. 3, Art. 46 vis-à-vis Par. 3, Art. 45, Family
Code,
the
healthy
spouse
through
cohabitation can still ratify the marriage
because the defect is in the fact of the
concealment and not the gravity of the
disease. Hence, even if the STD is treatable,
the fraud gives the unsuspecting spouse the
right to file for annulment.
Concealment of Drug Addiction, Habitual
Alcoholism, Homosexuality or Lesbianism
The non-disclosure of the drug addiction,
habitual
alcoholism,
homosexuality
or
lesbianism must have been done prior to the
marriage. Recovery or rehabilitation from
STD, drug addiction, and habitual alcoholism
024392CIV
CIVIL LAW
will not bar action for annulment; the defect is
not the disease, but the fraud which vitiated
consent [Tolentino].
It is the concealment of homosexuality, and
not homosexuality per se, that vitiates the
consent of the innocent party. Such
concealment presupposes bad faith and intent
to defraud the other party in giving consent to
the marriage [Almelor v. RTC, G.R. No.
179620 (2008)].
Any Other Misrepresentation
Art. 46, Family Code categorically states that
any other misrepresentation as to character,
health, rank, fortune, or chastity shall not be a
manifestation of fraud sufficient to be a ground
for annulment of marriage.
The non-disclosure of a husband’s premarital
relationship with another woman does not
constitute fraud. It was expressly stated in Art.
46, Family Code that misrepresentation or
deceit as to one’s chastity shall not be a basis
for an action to annul a marriage [Anaya v.
Palaroan, G.R. No. L-27930 (1970)].
D. Force, Intimidation, Undue
Influence
Par. 4, Art. 45, Family Code provides the
fourth ground for a voidable marriage, wherein
the consent of one party was obtained by
violence, intimidation, or undue influence.
There is violence when in order to wrest
consent, serious or irresistible force is
employed [Art. 1335, Civil Code].
Intimidation must be one as to compel the
party by a reasonable and well-grounded
fear of an imminent and grave evil upon his
person/properties [Art. 1335, Civil Code]
1. Degree of intimidation: age, sex, condition
of person shall be borne in mind
2. Threat or intimidation as not to act as free
agent
Note: A threat to enforce one’s claim through
competent authority, if one’s claim is just and
legal, does not vitiate consent [Art. 1335, Civil
Code].
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There is undue influence when a person
takes improper advantage of his power or
position over the will of another, depriving the
latter of a reasonable freedom of choice.
Among the circumstances that define
improper advantage are the (1) confidential,
(2) family, (3) spiritual, (4) professional or
other relationship between the parties, or the
fact that the person alleged to have been
unduly influenced was suffering from (5)
mental weakness, (6) ignorance, or (7) was in
financial or emotional distress [Art. 1337, Civil
Code].
Ground
(Art. 45,
FC)
Insanity
May be ratified upon voluntary cohabitation
after force, intimidation, or undue influence
has ceased or disappeared.
CIVIL LAW
Who
can file
(Art. 47,
FC)
Prescrip
tion
(Art.
47, FC)
Ratificatio
n (Art.
45, FC)
Parent or
guardian
who did
not give
consent
Before
party
below 21
reaches
21
without
parental
consent
after
attaining
age of 21
Sane
spouse
with no
knowled
ge of the
other’s
insanity
Any time
before
the
death of
either
party
Free
cohabitatio
n of Insane
party after
insane
party
comes to
reason
E. Impotency
Legal
guardian
of insane
party
Impotence refers to the person’s physical
condition where sexual intercourse with a
person of the opposite sex is impossible. It
does not refer to mere sterility.
Insane
party
During
lucid
interval
or after
regaining
sanity,
and
before
death
Fraud
Injured
(defraud
ed) party
Within 5
years
after
discover
y of
fraud
Free
cohabitatio
n of the
defrauded
party after
having full
knowledge
of fraud
Force,
Intimidatio
n,
Undue
influence
Injured
party
Within 5
years
after
disappea
rance of
force,
undue
influence
, or
intimidation
Free
cohabitatio
n of the
injured
party after
the force or
intimidation
or undue
influence
has
ceased or
disappeare
d
Refers to the inability to copulate, not
procreate.
F. Sexually-Transmissible
Disease Serious and Incurable
Requisites
1. Should exist at the time of the marriage
2. Should be found serious
3. Should appear to be incurable [Art. 45 (6),
Family Code]
Not subject to ratification: Cannot be ratified or
validated by cohabitation.
Who may file, prescription, ratification
Ground
(Art. 45,
FC)
Lack of
Parental
Consent
024393CIV
Who
can file
(Art. 47,
FC)
Prescrip
tion
(Art.
47, FC)
Ratificatio
n (Art.
45, FC)
Party 18
or above
but
below 21
Within 5
years
after
attaining
age of
21
Free
cohabitatio
n of the
party who
entered the
marriage
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Ground
(Art. 45,
FC)
Impotence
STD
Who
can file
(Art. 47,
FC)
Prescrip
tion
(Art.
47, FC)
Ratificatio
n (Art.
45, FC)
Potent
spouse
Within 5
years
after
marriage
Cannot be
ratified by
action;
prescribes
Within 5
years
after
marriage
Cannot be
ratified by
action;
prescribes
Healthy
party
CIVIL LAW
Note: Same effects with those provided under
Arts. 43(2-5) and 44.
2. Status of Children (Art. 54, FC)
V. EFFECT OF
DEFECTIVE MARRIAGES
A. Effects of Pendency
In the absence of adequate provisions in a
written agreement:
1. Support of spouses
2. Support and custody of children
3. Visitation rights
a. Void Marriages
General Rule: Conceived or born outside a
valid marriage before the judgment of
absolute nullity, illegitimate (Art. 165, Family
Code)
Exceptions: Conceived or born
● Before the judgment of annulment;
● Before the judgment of absolute nullity
under Art. 36 (Psychological Incapacity)
[Art. 54, Family Code]
● Of the subsequent marriage under Art. 53
(Failure to Record the Decree of Nullity of
Annulment);
● Prior to the termination of the subsequent
marriage under Art. 42 (when the absent
spouse files an affidavit of reappearance)
b. Voidable Marriages
1. Legitimate – if conceived on or before the
final judgment of annulment
2. Illegitimate – if conceived after the final
judgment of annulment [Art. 54, Family
Code]
B. Effects of Decree
1. Properties
a. Void Marriages/ Union
Marriage (Arts. 147-148 FC)
Without
3. Continued Use Of Surname [Art.
371, Civil Code]
No community property, only co-ownership
1. Art. 147: (Equal shares) governs property
relations of void marriages
2. Art. 148: (In proportion to other forms of
cohabitation) governs property relations of
bigamous adulterous relationships
b. Voidable Marriages (Art. 50, FC)
Absolute community exists unless they agreed
upon another system in their marriage
settlement
1. ACP/CPG dissolved, share forfeited to
heirs if bad faith
2. Donations are valid, except if bad faith
3. Insurance may be revoked if bad faith
4. No succession for spouse in bad faith
024394CIV
Voidable Marriages: Dependent on the wife
being the innocent or guilty party
1. Innocent – continued use of husband’s
surname allowed
2. Guilty – use of husband’s surname no
longer allowed; use maiden name +
surname.
VI.
LEGAL SEPARATION
An action for legal separation involves nothing
more than the bed-and-board separation of
the spouses. It is purely personal in nature
[Lapuz Sy v. Eufemio, G.R. No. L-30977
(1972)].
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A. Grounds for Legal Separation
[Art. 55, Family Code]
1. Repeated physical violence or
grossly abusive conduct directed
against the petitioner, a common
child, or a child of the petitioner
Note: Acts of Violence according to the AntiViolence Against Women and Their Children
Act of 2004 (RA 9262) are also grounds for
legal separation under Art. 55 (1), Family
Code.
2. Physical violence or moral
pressure to compel the petitioner to
change
religious
or
political
affiliation
The law does not require the violence or moral
pressure to be repeated. A single act of
violence is sufficient to be a ground since
religious and political beliefs are human rights
[Tolentino].
3. Attempt of the respondent to
corrupt or induce the petitioner, a
common child, or a child of the
petitioner, to engage in prostitution,
or connivance in such corruption or
inducement
Only the respondent spouse must be guilty of
corrupting or inducing the petitioner, a
common child or a child of the petitioner to
engage in prostitution.
4. Final judgment sentencing the
respondent to imprisonment of more
than six (6) years, even if pardoned
5. Drug addiction or habitual
alcoholism of the respondent
6. Lesbianism or homosexuality of
the respondent
The other forms of psychoses, if existing at
the inception of marriage, like the state of a
party being of unsound mind or concealment
of drug addiction, habitual alcoholism,
homosexuality or lesbianism, merely renders
the marriage contract voidable pursuant to Art.
024395CIV
CIVIL LAW
46, Family Code. If drug addiction, habitual
alcoholism, lesbianism or homosexuality
should occur only during the marriage, they
become mere grounds for legal separation
under Art. 55 Family Code [Santos v. Court of
Appeals and Bedia-Santos, G.R. No. 112019
(1995)].
7. Contracting by the respondent of a
subsequent
bigamous
marriage,
whether in the Philippines or abroad
Note: As a ground for legal separation,
however, there is no need for a criminal
conviction for bigamy.
8. Sexual infidelity or perversion
9. Attempt by the respondent against
the life of the petitioner
10. Abandonment of petitioner by
respondent without justifiable cause
for more than one (1) year.
Abandonment
is
not
mere
physical
estrangement but also financial and moral
desertion. There must be an absolute
cessation of marital relations, duties, and
rights with the intention of perpetual
separation [Dela Cruz. v. Dela Cruz, G.R. No.
L-19565 (1968)].
To be a ground for legal separation,
abandonment must be without just cause
[Ong Eng Kiam v. Ong, G.R. No. 153206
(2006)].
B. Defenses [Art. 56, Family
Code]
1. Condonation by the aggrieved
party – after the commission of the
offense; may be expressed or
implied.
Condonation may be given expressly or
impliedly. An example of an implied
condonation is when a husband repeatedly
has intercourse with the wife despite the wife’s
cruelty. “Although he did not wish it, [he did it]
eventually for the sake of peace” [Willan v.
Willan, G.R. No. L-13553 (1960)].
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CIVIL LAW
2. Consent by the aggrieved party to
the commission of the offense –
before the commission of the
offense; may be expressed [e.g.
written
agreement,
Matubis
v.
Praxedes, G.R. No. L-11766 (1960)] or
implied
A joint manifestation, under oath and duly
signed by the spouses shall be filed with the
court in the same proceeding for legal
separation [Art. 65, Family Code].
The non-interference of the husband with
regard to the amorous relations between his
wife and Ramos constitutes consent [People
v. Sensano and Ramos, G.R. No. L-37720
(1933)].
C. Procedure
3. Connivance between parties in the
commission of the offense
8. Death of either party during the
pendency of action
Who may File the Action
A petition for legal separation may be filed
only by the husband or the wife [Sec. 2(a)(1),
A.M. No. 02-11- 11-SC (Rule on Legal
Separation)].
Connivance is present when the husband
throws no protection around his wife nor
warns her against intimacy with the driver. A
husband who had reliable reports for two
months that gave him reason to suspect that
his wife was having an affair with her driver
yet did nothing to keep the latter away is guilty
of connivance [Sargent v. Sargent, 114 A. 428
(1920)].
Where to File the Action
The petition shall be filed in the Family Court
of the province or city where the petitioner or
the respondent has been residing for at least
six (6) months prior to the date of filing “or in
the case of a non-resident respondent, where
he may be found in the Philippines, at the
election of the petitioner” [Sec. 2(c), A.M. No.
02-11-11-SC].
4.
Mutual guilt or recrimination
between spouses in the commission
of any ground for legal separation
When to File Action
An action for legal separation shall be filed
within five (5) years from the time of the
occurrence of the cause [Art. 57, Family
Code; Sec. 2(a)(1), A.M. No. 02-11-11-SC].
5. Collusion between parties to
obtain a decree of legal separation
Collusion in matrimonial cases is the act of
married persons in procuring a divorce by
mutual consent, whether by preconcerted
commission by one of a matrimonial offense,
or by failure, in pursuance of the agreement,
to defend divorce proceedings [Brown v.
Yambao, G.R. No. L-10699 (1957)].
6. Prescription of action for legal
separation
Article 57, Family Code. An action for legal
separation shall be filed within five years from the
time of the occurrence of the cause.
7.
Reconciliation
of
parties
during the pendency of action [Art.
66 (1), Family Code]
024396CIV
Cooling-off and Reconciliation Effects
An action for legal separation shall in no case
be tried before six (6) months shall have
elapsed since the filing of the petition [Art. 58,
Family Code].
Actions cannot be tried unless the court has
attempted to reconcile the spouses and
determined that despite such efforts,
reconciliation is highly improbable [Art. 59,
Family Code].
Note:
1. This is without prejudice to a judicial
determination of custody of children,
alimony, and support pendente lite.
2. This Family Code provision dictating a
mandatory 6-month cooling-off period
does not apply in cases where violence,
as used in RA 9262 (Anti-Violence Against
Women and their Children), is alleged.
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The case should be heard as soon as
possible by the court.
D. Effects of Filing Petition
1. The spouses are entitled to live
separately, but the marital bond is not
severed [Art. 61 (1), Family Code]
2. Administration of community or conjugal
property – If there is no written agreement
between the parties, the court shall
designate one of them or a third person to
administer the ACP or CPG [Art. 61 (2),
Family Code]
Note: No motion to dismiss the petition shall
be allowed except on the ground of lack of
jurisdiction over the subject matter or over the
parties; provided, however, that any other
ground that might warrant a dismissal of the
case may be raised as an affirmative defense
in an answer [Sec. 4, A.M. No. 02-11-11-SC]
E. Effects of Pendency
The Court shall provide for: [Arts. 62 & 49,
Family Code]
1. Support of spouses
2. Custody of children: The court shall give
custody of children to one of them if there
is no written agreement between the
spouses.
3. Visitation rights of the other spouse
F. Effects of Decree of Legal
Separation
1. The spouses can live separately [Art. 63,
Family Code] but the marriage bonds are
not severed [Art. 63(1), Family Code]
2. The ACP or CPG shall be dissolved and
liquidated, and the share of the guilty
spouse shall be forfeited in favor of the
common children, previous children, or
innocent spouse, in that order [Arts. 63(2)
in relation to & Art. 43 (2), Family Code]
3. Custody of the minor children shall be
awarded to the innocent spouse [Arts.
63(3) in relation to Art.& 213, Family
Code]
4. The guilty spouse shall be disqualified
from inheriting from the innocent spouse
024397CIV
5.
6.
7.
8.
CIVIL LAW
by intestate succession, and t. The
provisions in favor of the guilty party in the
will of the innocent spouse shall also be
revoked by operation of law [Art. 63(4),
Family Code]
Donations in favor of the guilty spouse
may be revoked [Art. 64, Family Code] but
this action prescribes after five (5) years
from the decree of legal separation [Art.
64, Family Code]
An innocent spouse may also revoke the
designation of a guilty spouse as a
beneficiary in an insurance policy, even if
such stipulations are irrevocable, but this
action prescribes after five (5) years from
the decree of legal separation [Art. 64,
Family Code; Sec. 11, PD 612]
Obligation for mutual support ceases, but
the court may order the guilty spouse to
support the innocent spouse [Art. 198,
Family Code]
The wife shall continue to use the
surname of the husband even after the
decree for legal separation [Laperal v.
Republic, G.R. No. L-18008 (1992)]
G. Reconciliation
Effects of Reconciliation:
1. Proceedings for legal separation shall be
terminated at whatever stage [Art. 66 (1),
Family Code].
2. If there is a final decree of legal
separation, it shall be set aside [Art. 66
(2), Family Code].
3. The separation of property and forfeiture
of share of the guilty spouse shall subsist
unless the spouses agree to revive their
former property regime or institute another
property regime [Arts. 66-67, Family
Code].
4. Joint custody of children is restored.
5. The right to intestate succession by the
guilty spouse from the innocent spouse is
restored.
6. The right to testamentary succession
depends on the will of the innocent
spouse.
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H. Effect of Death of One of the
Parties
The death of either party to a legal separation
proceeding, before final decree, abates the
action. There is no more need for legal
CIVIL LAW
separation because the marriage is already
dissolved by the death of one of the parties.
An action for legal separation is also purely
personal between the spouses [Lapuz Sy v.
Eufemio,
G.R.
No.
30977
(1972)].
Void Marriages, Voidable Marriages and Legal Separation
Void Marriages
Voidable Marriages
Legal Separation
Grounds
1. Absence of essential or
formal requisites:
. One is a minor
b. No authority to marry
c. No valid marriage license
d. Bigamous and
polygamous marriages
e. Mistake of identity
f. Void subsequent
marriages
2. Psychological incapacity
3. Incestuous marriages
4. Marriages against public
policy
5. Subsequent marriages
which did not comply with Art.
52
Defect in any of the
essential requisites:
1. Lack of parental
consent,
2. Insanity,
3. Fraud,
4. Force,
intimidation,
undue influence,
5. Impotence,
6. Serious and
incurable STD
Grounds not relating to
any of the essential or
formal requisites:
1. Repeated physical
violence
2. Pressure to compel to
change religious/ political
affiliation
3. Corruption/ inducement
to engage in prostitution
4. Final judgment with
sentence of more than 6
years
5. Drug addiction/ habitual
alcoholism
6. Homosexuality/
lesbianism
7. Bigamous marriage
8. Sexual infidelity or
perversion
9. Attempts against the
life of petitioner
10. Abandonment without
just cause for more than
1-year
Defenses
None
Prescription
No Prescription
024398CIV
1. Condonation
2. Consent
3. Connivance
4. Collusion
5. Recrimination
6. Prescription
1. Lack of parental
consent
. Spouses - 5
years after
turning 21
b. Parents before the
spouses turn
21
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Within 5 years from the
occurrence of the cause
FOR UP CANDIDATES ONLY
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Void Marriages
Voidable Marriages
CIVIL LAW
Legal Separation
2. Insanity
a. Insane spouse
- during lucid
intervals
b. Sane spouse/
guardian lifetime
3. Fraud - 5 years
after the discovery
of the fraud
4. Force,
intimidation,
undue influence - 5
years after cessation
5. Impotence/ STD 5 years from
marriage
Who can file According to A.M. No. 02-1110-SC:
1. Before March 18,
2003 (petition for
nullity or celebration
of marriage) - any
party
2. On and after March
18, 2003 (petition for
nullity or celebration
of marriage) - only the
spouses
Only the spouses
(cannot survive the
death of the plaintiff)
Only the spouses (cannot
survive the death of the
plaintiff)
Effects of
Pendency
In the absence of adequate provisions in a written
agreement:
1. Support of spouses
2. Support and custody of children
3. Visitation rights
In the absence of
adequate provisions in a
written
agreement:
1. Support of spouses
2. Support and custody of
children
3. Visitation rights
Effects of
Decree
1. Properties [Art. 147 - 148,
FC]
a. Art. 147 (equal shares)
governs property
relations of void
marriages
b. Art. 148 (in proportion)
governs property
relations of bigamous
adulterous relationships
2. Status of Children [Art. 54,
1. Properties [Art. 63(2),
FC]
.
Dissolution and
Liquidation of
ACP/CPG
2. Support and Custody
[Art. 213, FC]
a. Parental authority to
the parent
designated by Court
after all relevant
024399CIV
1. Properties [Art.
50,
FC]
a. ACP/CPG
dissolved,
share forfeited
to heirs if bad
faith
b. Donations are
valid, except if
bad faith
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Void Marriages
Voidable Marriages
FC]
General Rule: Conceived or
born before the judgment of
absolute nullity, illegitimate
c. Insurance
may be
revoked if bad
faith
d. No succession
for spouse in
Exceptions:
bad faith
Conceived or born
2.
Status
of Children
a. Before the judgment of
[Art. 54, FC]
annulment;
a. Conceived or
b. Before the judgment of
born before
or absolute nullity under
judgment,
Art. 36 (Psychological
legitimate.
Incapacity)
3.
Continued
Use of
c. Of the subsequent
Surname [Art. 371,
marriage under Art. 53
CC]
(Failure to Record the
. Dependent on
Decree of Nullity of
her being the
Annulment);
innocent or
d. Prior to the termination of
guilty party
the subsequent marriage
under Art. 42 (when the
absent spouse files an
affidavit of
reappearance)
CIVIL LAW
Legal Separation
consideration
b. Tender years
presumption for
Child under 7 y.o.
[Art 213(2), FC]
3. Inheritance, Donations,
and Designation in
Insurance Policies [Sec.
22, rules on Legal
Separation]
4. Continued Use of
Surname [Art. 372, CC]
VII.
RIGHTS AND
OBLIGATIONS BETWEEN
HUSBAND AND WIFE
VIII. PROPERTY
RELATIONS BETWEEN
SPOUSES
These rights and duties are not subject to a
stipulation between the spouses; and though
they may voluntarily agree to any change in
their personal relations, this agreement will be
void and have no legal effect.
A. General Provisions
1.
2.
3.
4.
5.
6.
Live Together
Fix a Family Domicile
Support the Family
Management of Family Life
Effect of Neglect of Duty
Exercise of Profession
Requisites for Validity of Marriage
Settlements [Art. 75, Family Code]
1. Future spouses agree upon the regime of
absolute
community,
a
conjugal
partnership of gains, complete separation
of property, or any other regime.
2. In the absence of marriage settlement, or
when the regime agreed upon is void, the
system of absolute community property as
established in this Code shall govern.
Requirements for Marriage Settlements
and any Modification Thereof [Art. 77,
Family Code]
1. Must be made in writing
2. Signed by the parties
3. Executed before the marriage celebration
024400CIV
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4. If executed by a person below 21 years,
valid only when persons are required to
give consent to the marriage (father,
mother, or guardian, respectively) are
made parties to the agreement [Art. 78,
Family Code; Sec. 3, RA 6809 amending
Art. 236, Family Code]
B. Donations by Reason of
Marriage
(Donation
Propter
Nuptias)
Donations propter nuptias are made in
consideration of marriage. There can be a
valid donation even if the marriage never took
place, but the absence of marriage is a
ground for the revocation of the donation
[Solis v. Barroso, G.R. No. 27939 (1928)].
Requisites of Donation Propter Nuptias
1. Made before the celebration of marriage
2. Made in consideration of marriage
3. Made in favor of one or both of the future
spouses
4. In a public document and not merely
privately stipulated [Solis v. Barroso, G.R.
No. 27939 (1928)]
Who May Donate
1. Spouses to each other
2. Parents of one or both spouses
3. Third persons to either or both spouses
Donations Excluded are:
1. Ordinary wedding gifts given after the
celebration of marriage
2. Donations in favor of future spouses made
before marriage but not in consideration
thereof
3. Donations made in favor of persons other
than the spouses even if founded on the
intended marriage
024401CIV
CIVIL LAW
Grounds for Revocation of Donation
Propter Nuptias [Art. 86, Family Code]
Marriage Not Celebrated
Donation
contained
marriage
settlement
Donation
contained in
separate
instrument
Rendered void [Art. 81,
in Family Code]
Does not prescribe
Donor’s choice
a
Prescribes within
(5) years from
supposed
date
marriage
five
the
of
Void Marriage
General Rule: There must be a judicial
declaration of nullity for the void marriage.
1. Art. 40, in
relation
to
Art.
53,
Family Code
(void
subsequent
marriage due
to
noncompliance
with
registration
requirement
in Art. 52,
Family
Code)
If
doneespouse
contracted
the second
marriage in
bad
faith
(knowing
that it was
void),
donations in
favor of the
second
marriage are
revoked by
operation of
law.
2. Art 44,
Family Code
(bad faith in
securing
a
declaration
of
presumptive
death)
If either or
both
spouses in
the
subsequent
marriage
acted in bad
faith
(knowing
that
the
person was
still
alive),
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If
both
parties acted
in
good
faith,
the
revocation
will be by the
donor’s
choice;
within
5
years from
the date of
finality of the
judicial
declaration
of nullity.
FOR UP CANDIDATES ONLY
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Void Marriage
donations in
favor of the
subsequent
marriage are
revoked by
operation of
law.
3. All other Donor’s
void
choice,
marriages
regardless of
good/bad
faith of the
donee.
Other Cause of Annulment
Revoked by operation of law if the donee is
the guilty spouse who acted in bad faith
CIVIL LAW
Reason for excluding ACP: All property will
again be shared by both spouses after the
marriage.
Exception: The limit of 1/5 only applies when
the donation is contained in the marriage
settlements. If it is contained in another
instrument, the general rules on unofficious
donations shall apply.
Donations During Marriage
General rule: Spouses cannot donate to each
other, directly or indirectly; donations made by
spouses to each other during the marriage are
void [Art. 87, Family Code]. These donations
refer to donations inter vivos. [Tolentino]
Exception: Moderate gifts on the occasion of
any family rejoicing.
A spouse cannot donate to persons which the
other spouse may inherit from as it constitutes
an indirect donation [Nazareno v. Birog, 45
O.G. No. 5 (1947)].
Resolutory Condition Complied With
General Rule: Revocation is by donor’s
choice and done within five (5) years from
finality of decree of legal separation
Exception: If the other spouse is the donor,
action does not prescribe
Acts of Ingratitude [Art. 765, Civil Code]
General Rule: Revocation is by donor’s
choice and done within one (1) year from
knowledge of fact of ingratitude with the
donor being capable of bringing suit [Art.
769, Civil Code]
C.
Void Donations by The
Spouses
Donations Before Marriage [Art. 84, Family
Code]
Sale between spouses [Art. 1490, New Civil
Code]
General rule: The husband and wife cannot
sell the property to each other [Art. 1490, New
Civil Code].
Exceptions:
1. When a separation of property was
agreed upon in the marriage settlements;
or
2. When there has been a judicial separation
of property under Art. 191.
Donations Between Common-law Spouses
The donation between common-law spouses
falls within the provision prohibiting donations
between
spouses
during
marriage
[Matabuena v. Cervantes, G.R. No. L-2877
(1971)].
D. Absolute Community
Property Regime
of
General rule: Future spouses who agree upon
Definition
a regime other than ACP cannot donate to
The community property consists of all the
each other more than one-fifth (1/5) of their
property owned by the spouses at the time of
present property (excess shall be considered
the celebration of the marriage, and those
void) [Art. 84, Family Code].
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either one or both of them acquired during the
marriage [Art. 91, Family Code].
Property acquired during the marriage is
presumed to belong to the community unless
proved to be excluded therefrom [Art. 93,
Family Code].
If Marriage Does Not Take Place [Art. 81,
Family Code]
Everything stipulated in the marriage
settlements or contracts referred to in the
preceding articles in consideration of a future
marriage, including donations between the
prospective spouses made therein, shall be
rendered void if the marriage does not take
place. However, stipulations that do not
depend upon the celebration of the marriages
shall be valid [Art. 81, Family Code].
Provisions on Co-ownership Apply
The provisions on co-ownership shall apply to
the absolute community of property between
the spouses in all matters not provided for in
this Chapter [Art. 90, Family Code].
CIVIL LAW
N.B. The creditors of the spouse who made
such a waiver may petition the court to rescind
the waiver to the extent of the amount
sufficient to cover the amount of their credits.
E. Conjugal
Gains Regime
Partnership
of
This property regime was formerly the default
regime under the Civil Code.
In this regime, the spouses retain ownership
of their separate property. However, the
spouses place in a common fund the
proceeds, products, fruits, and income of their
separate property and those acquired by
either or both spouses through their efforts or
by chance.
The presumption applies that all properties
acquired during the marriage belong to the
CPG. There are 3 distinct patrimonies in this
system, the husband’s capital property, the
wife’s paraphernal property, and the conjugal
property.
Comparison of ACP and CPG
Absolute Community of
Property (ACP)
Conjugal Partnership of Gains (CPG)
When it
commences
At the precise moment of the For marriages after the Family Code,
celebration of the marriage [Art. 88, CPG becomes the property regime only
FC]
if agreed to by the parties through a
marriage settlement.
What it
consists of
All the properties owned by the Proceeds, products, fruits, and income of
spouses at the time of the their separate properties
celebration of the marriage or
Everything acquired by them during
acquired thereafter [Art. 91, FC]
marriage through their own efforts
Everything acquired through their efforts
or by chance.
Under the ACP, spouses cannot
exclude specific properties from the
regime unless done in a settlement.
024403CIV
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PERSONS AND FAMILY RELATIONS
Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
Winnings from gambling shall Specific properties [Art. 117, FC]
accrue to the community property 1. Acquired by onerous title during the
but obligations from gambling shall
marriage at the expense of the
not. [Art. 95, FC]
Common Fund;
2. Acquired through the labor, industry,
Property acquired during the
work, or profession of either or both
marriage is presumed to have been
spouses
obtained through joint efforts of 3. Fruits from common property and
parties, even though one did not
net fruits of the exclusive property of
actually
participate
in
the
each spouse
acquisition. This is true for a party 4. Share of either spouse in hidden
whose efforts consisted of the care
treasure, whether as finder or owner
and maintenance of the family
of the property where the treasure
household. Such is regarded as
was found
contributions to the acquisition of 5. Acquired through occupation such
common property by one who has
as fishing or hunting
no salary, income, work, or 6. Livestock existing at the dissolution
industry. [Ocampo v. Ocampo, G.R.
of the partnership in excess of what
No. 198908 (2015)]
is brought by either spouse to the
marriage
7. Acquired by chance, such as
winnings from gambling or betting
Moral damages arising from a contract
paid from the CPG [Zulueta v. Pan
American World Airways, G.R. No. L28589 (1973)]
Loans contracted during the marriage
are conjugal, and so is any property
acquired therefrom [Mendoza v. Reyes,
G.R. No. L-31625 (1983)]
Property purchased by installment, paid
partly with conjugal funds and partly with
exclusive funds, if full ownership was
vested during the marriage; the CPG
shall reimburse the owner-spouse [Art.
118, FC]
If a winning ticket is bought by conjugal
funds, the prize is conjugal (otherwise,
the prize is the exclusive property of the
spouse who owns the ticket)
Improvement on exclusive property: if the
original value is less than the new value
(where new value = value of land + value
of improvements + net change in value),
then the land becomes conjugal
024404CIV
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FOR UP CANDIDATES ONLY
PERSONS AND FAMILY RELATIONS
Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
property, subject to the reimbursement of
the value of the property of the ownerspouse at the dissolution of the CPG
Property belonging to one spouse
converted into another kind totally
different in nature from its original form
during the marriage becomes conjugal in
the absence of proof that the expenses
of the conversion were exclusively for the
account of the original owner-spouse,
subject to reimbursement of the value of
the original property from the conjugal
partnership
What remains
exclusive
property [Art.
92, FC]
Properties acquired before the Property brought into the marriage by
marriage, for those with legitimate each spouse as his/her own
descendants by a former marriage
(to protect rights of children by a
former marriage)
Properties acquired during the
marriage by a gratuitous title, i.e.
donation, inheritance by testate and
intestate succession, including the
fruits of such properties
Properties
acquired
during
the
marriage by a gratuitous title, i.e.
donation, inheritance by testate and
intestate succession (but the fruits of
such properties form part of the CPG)
Except: When expressly provided Except: When expressly provided by the
by the donor or testator that the donor or testator that the property shall
property shall form part of the ACP form part of the CPG
Properties for personal use i.e.
wearing apparel, toilet articles, Property acquired by right of redemption,
by barter, or by exchange with property
eyeglasses
belonging to either spouse
Except: Luxurious jewelry and
those of special value that increase Plata v. Yatco, G.R. No. L-20825 (1964):
in value over time (partakes of the Plata purchased the property when she
was single. When married, she and her
nature of an investment)
husband Bergosa co-signed a mortgage
on the property. Upon foreclosure,
Bergosa was sued for being an illegal
detainer. A writ of execution on the
property was carried out but Plata
refused to leave the premises. SC ruled
that Plata cannot be held in contempt.
Property is not conjugal.
Her husband signing as co-mortgagor
does not convert it to CPG. She could
024405CIV
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Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
ignore execution because the decision
was for her husband alone.
Property purchased with
money of either spouse
exclusive
Property purchased by installment paid
partly with conjugal funds and partly with
exclusive funds if full ownership was
vested before the marriage [Art. 118,
FC]. Even if the installment is completed
after the marriage, the property is
exclusive if ownership was vested in one
spouse before the marriage [Lorenzo v.
Nicolas, G.R. No. L-4085 (1952)].
Presumption
All properties acquired during the
marriage forms part of the ACP,
unless it is proven that they are
excluded. [Art. 93, FC]
Charges and
Obligations
Art. 94, 121-123 FC
1. Support of the following:
a. Spouses;
b. Common children;
c. Legitimate children of a previous marriage;
d. Illegitimate children – follow the provisions on Support; common property
liable in case of absence or insufficiency of the exclusive property of the
debtor-spouse, but the payment shall be considered as an advance on
the share of the debtor-spouse.
2. Expenses to enable either spouse to commence/complete a
professional/vocational course or activity for self-improvement;
3. Value donated or promised by both spouses in favor of common legitimate
children for the exclusive purpose of commencing/ completing a
professional/ vocational course or activity for self-improvement;
4. Generally: all expenses are incurred with the consent of the spouses or for
the benefit of the family.
If
community
property
is
insufficient, the spouses are
solidarily liable for the unpaid
balance
from their
separate
properties except for:
1. Debts contracted by either
spouse before marriage which
have not redounded to the
benefit of the family;
2. Support of illegitimate children;
and
024406CIV
All property acquired during the
marriage, whether made, contracted, or
registered in the name of one spouse,
are presumed conjugal unless the
contrary is proven. [Art. 116, FC]
If conjugal partnership property is
insufficient, the spouses are solidarily
liable for the unpaid balance from their
separate properties. Gambling losses of
any kind (i.e. legal or illegal) shall be
borne by the losing spouse’s separate
property [Art. 123, FC]
DBP v. Adil, G.R. No. L-4085 (1988):
Loan contracts signed by both spouses
are conjugal, and they are jointly liable
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PERSONS AND FAMILY RELATIONS
Ownership,
administration,
enjoyment, and
disposition of
property
CIVIL LAW
Absolute Community of
Property (ACP)
Conjugal Partnership of Gains (CPG)
3. Liabilities incurred by either
spouse arising from crime or
quasi-delict.
Gambling losses of any kind (i.e.
legal or illegal) shall be borne by
the losing spouse’s separate
property [Art. 95, FC]
for payment, even if only one spouse
signs a subsequent promissory note.
Ayala Investment v. Ching, G.R. No.
118305 (1998): The indirect benefits that
might accrue to a husband in signing as
a surety or guarantee in an agreement
not in favor of the family but in favor of
his employer corporation are not benefits
that can be considered as giving a direct
advantage accruing to the family. Hence,
the creditors cannot go against the
conjugal
partnership
property
in
satisfying the obligation subject to the
surety agreement. A contrary view would
put in peril the conjugal partnership by
allowing it to be given gratuitously as in
cases of donation of conjugal partnership
property, which is prohibited.
The administration and enjoyment of the community/conjugal property shall
belong to both spouses jointly.
In case of disagreement, the husband’s decision shall prevail, subject to
recourse to the court by the wife for a proper remedy, within 5 years from the
date of contract [Arts. 96, 124 FC].
De Ansaldo v. Sheriff of Manila, G.R. No.
L-43257 (1937): Spouses are not coowners of CPG during the marriage and
cannot alienate the supposed 1/2 interest
of each in the said properties. The
interest of the spouses in the CPG is
only inchoate or a mere expectancy and
does not ripen into title until it appears
after the dissolution and liquidation of the
partnership that there are net assets.
Either spouse may, through a will, Disposition or encumbrance of conjugal
dispose of his or her interest in the property requires the following: Authority
community property. [Art. 97, FC]
of the court or written consent of the
other spouse. The absence of such will
However, the will should refer only render such encumbrance void. [Art.
to his or her share in the 124, par. 2, FC]
community property.
Donation of one spouse without the consent of the other is not allowed. [Arts.
98, 125 FC]
Exception:
024407CIV
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Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
Moderate donations to charity or on the occasion of family rejoicing or distress.
Jader-Manalo v. Camaisa, G.R. No. 147978 (2002): Mere awareness of a
transaction is NOT consent.
Homeowner’s Savings & Loan Bank v. Dailo, G.R. No. 153802 (2005): In the
absence of (court) authority or written consent of the other spouse, any
disposition or encumbrance of the conjugal property shall be void.
Cheeseman v. IAC, G.R. No. 7483 (1991): If, however, one of the spouses is
an alien, the Filipino spouse may encumber or dispose of the property w/o the
consent of the former. The property is presumed to be owned exclusively by
the Filipino spouse.
Dissolution of
the regime
Terminates upon [Arts. 99, 126 FC]:
1. Death of either spouse – follow rules in Art. 103
2. Legal separation – follow rules in Arts. 63 and 64
3. Annulment or judicial declaration of nullity – follow rules in Arts. 50 and 52
Judicial separations of property during the marriage – follow rules in Arts. 134
to 138
Rules on de
facto
separation
General rule: De facto separation does NOT affect the ACP/CPG.
Effect of de
facto
separation
Exceptions:
1. Spouse who leaves the conjugal home without just cause shall not be
entitled to support; however, he/she is still required to support the other
spouse and the family
2. If consent is necessary for the transaction but is withheld or otherwise
unobtainable, an authorization may be obtained from the court
3. Support for the family will be taken from the ACP/CPG
4. If ACP/CPG is insufficient, spouses shall be solidarily liable
If it is necessary to administer or encumber separate property of the spouse
who left, the spouse present may ask for judicial authority to do this.
If ACP/CPG is not enough and one spouse has no separate property, the
spouse who has property is liable for support, according to provisions on
support.
Rules on
Abandonment
Abandonment [Art. 101, 128 FC]
Present/aggrieved spouse may petition the court for:
1. Receivership
2. Judicial Separation of Property
3. Authority to be the sole administrator of the absolute community, subject to
precautionary conditions that the court may impose.
A spouse is deemed to have abandoned the other when he or she has left the
conjugal dwelling without any intention of returning.
Spouse is prima facie considered to have abandoned the other spouse and the
024408CIV
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FOR UP CANDIDATES ONLY
PERSONS AND FAMILY RELATIONS
Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
family if he or she has:
1. Left for a period of 3 months
2. Failed to inform the other spouse of his or her whereabouts for a period of
3 months
Partosa-Jo v. CA, G.R. No. 82606
(1992): Physical separation of the
spouses, coupled with the husband’s
refusal to give support to the wife,
sufficed to constitute abandonment as a
ground for an action for the judicial
separation of their conjugal property.
Liquidation of
assets and
liabilities
024409CIV
Procedure [Art. 102, FC]
1. Prepare an inventory of assets
of ACP and of spouses with
market values
2. Debts and obligations are
paid with community property,
and separate debts and
obligations not charged to ACP
paid by respective assets of
spouses
1. If obligations exceed the assets
of the ACP, nothing is divided.
Creditors can go after the
separate properties of the
spouses, which are solidarily
liable for the deficiency.
3. Delivery of whatever remains
in their exclusive property
4. The balance, or net remainder,
is divided equally between the
spouses, or in accordance with
the proportion agreed upon in
the
marriage
settlement,
irrespective of how much each
brought into the community
5. If the personal obligations of
a spouse exceed his/her
separate property, the creditor
can go after the share of the
spouse on the net remainder of
the ACP, without prejudice to
the provisions of the law on
forfeitures and delivery of
presumptive legitimes
6. After covering all community
obligations and obligations
of spouses, the balance of
Procedure [Art. 129, FC]
1. Prepare an inventory of all
properties
2. Amounts advanced by CPG in
payment of personal debts and
obligations shall be credited to the
CPG
3. Reimburse each spouse for the use
of his/her exclusive funds in the
acquisition of property or for the
value of his or her exclusive property,
the ownership of which has been
vested by law in the conjugal
partnership
4. Debts and obligations of CPG shall
be paid out of the conjugal assets,
otherwise,
both
spouses
are
solidarily liable with their exclusive
property
5. Remains of the exclusive properties
shall be delivered to respective
owner-spouses.
6. Indemnification for loss/deterioration
of movables belonging to either
spouse, even due to a fortuitous
event, used for the benefit of the
family
7. The net remainder of CPG shall
constitute the profits which shall be
divided equally between husband
and wife except when:
a. A different proportion or division
was agreed upon in the
marriage settlements
b. There has been a voluntary
waiver or forfeiture of such
share as provided in the FC
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Absolute Community of
Property (ACP)
CIVIL LAW
Conjugal Partnership of Gains (CPG)
separate properties shall be
c. Presumptive
legitimes
are
delivered to respective spouses
delivered to common children
or their heirs, and they will also 8. Conjugal dwelling goes to:
divide into two equal shares
a. Spouse with whom the majority
whatever is left of the
of common children choose to
community assets, without
remain (below 7 y.o. = deemed
prejudice to the provisions of
to have chosen the mother based
the law on forfeitures and
on the tender years presumption)
delivery
of
presumptive
b. Whoever the court chooses in
legitimes
case of lack of majority
7. Presumptive
legitimes
are
delivered to common children
8. Conjugal dwelling goes to:
a. Spouse with whom the
majority
of
common
children choose to remain
(below 7 y.o., = deemed to
have chosen the mother
based on the tender years
presumption)
b. Whoever
the
court
chooses in case of lack of
majority
Rules in case of termination of a marriage by the death of one of the spouses
[Art. 104, FC]:
1. The community property shall be liquidated in the same proceeding for the
settlement of the estate of the deceased spouse.
2. If no such judicial settlement proceeding is instituted, the surviving spouse
shall liquidate the community property either judicially or extra-judicially,
within one year from the death of the deceased spouse.
3. If no liquidation is made within the period, any disposition or encumbrance
involving community property of the terminated marriage shall be void.
4. Non-compliance with liquidation procedures would mean that a
subsequently contracted marriage will follow a regime of complete
separation of property.
Procedure for liquidation of properties of two marriages [Art. 104, FC]:
1. Determine the capital, fruits, and income of each community upon such
proof as may be considered according to the rules of evidence.
2. In case of doubt as to which community the existing properties belong to,
they shall be divided between two communities in proportion to the capital
and duration of each.
024410CIV
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PERSONS AND FAMILY RELATIONS
F. Separation of Property and
Administration
of
Common
Property by One Spouse During
the Marriage
What
consists of
CIVIL LAW
it Present or future property
or both
Each spouse’s earnings
from his or her own
profession, business, or
industry
If the spouses did not execute a written
agreement regarding their property regime
prior to the marriage, they can no longer
change it after the marriage ceremony has
taken place unless they have secured judicial
approval [Art. 134, Family Code].
G. Separation
Regime
of
May be total or partial. If
partial,
property
not
considered separate is
presumed to pertain to
the ACP
Property
Each spouse has complete control and
ownership of his or her own properties which
will include “all earnings from his or her
profession, business or industry and all fruits,
natural, industrial or civil, due or received
during the marriage from his or her separate
property.” Expenses of the family shall be
shouldered by the spouses in proportion to
their income, or, in case of insufficiency or
default thereof, to the current market value of
their separate properties.
Separation of Property
When
applies
Natural, industrial or civil
fruits
of
spouse’s
separate properties
it Agreed upon in the
marriage settlements by
the spouses
Mandatory under Arts.
103 & 130, Family Code
(subsequent
marriages
contracted by a surviving
spouse without judicial
settlement of previous
property regime)
Judicial separation
property (Voluntary
sufficient just cause)
Liabilities
Creditors
for
family
expenses:
Spouses
solidarily liable
Ownership,
administration,
enjoyment,
and
disposition
of
or
Default property regime
when
there
is
reconciliation
between
spouses after judicial
separation of property
024411CIV
Family expenses: Both
spouses are liable in
proportion
to
their
income; if insufficient,
based on the current
market value of their
separate properties
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Spouses
may
own,
dispose of, possess,
enjoy, and administer
separate estates without
the consent of the other
Administration
of
exclusive properties may
be transferred by the
court between spouses
when:
1. One spouse becomes
the other spouse’s
guardian
2. One
spouse
is
judicially declared an
absentee
3. One spouse is given
the penalty of civil
interdiction
4. One spouse becomes
a fugitive
5. One
spouse
FOR UP CANDIDATES ONLY
PERSONS AND FAMILY RELATIONS
CIVIL LAW
Art. 147,
Family Code
becomes the
other
spouse’s guardian
6. One
spouse
is
judicially declared an
absentee
7. One spouse is given
the penalty of civil
interdictio.
8. One
spouse
becomes a fugitive
3.
4.
Conveyance between the
spouses is allowed under
Art. 1490, Civil Code
5.
6.
H. Separation
Regime
of
Property
7.
Each spouse has complete control and
ownership of his or her own properties which
will include “all earnings from his or her
profession, business or industry and all fruits,
natural, industrial or civil, due or received
during the marriage from his or her separate
property.” Expenses of the family shall be
shouldered by the spouses in proportion to
their income, or, in case of insufficiency or
default thereof, to the current market value of
their separate properties.
I. Property Regime of Unions
Without Marriage
Applicabilit
y
024412CIV
Art. 147,
Family Code
Art. 148,
Family Code
Man
and
woman
living
together
as
husband
and
wife, with the
capacity
to
marry (Art. 5,
without
any
legal
impediment)
1. at
least
eighteen
(18) years
old
2. not violative
of Art. 37
(incestuous
Man
and
woman
living
together
as
husband
and
wife,
NOT
capacitated to
marry:
1. Under
eighteen
(18) years
old
2. Adulterous
relationship
3. Bigamous/
polygamou
s marriage
4. Incestuous
8.
void
marriage)
not violative
of Art. 38
(void
marriage by
reason of
public
policy)
not
bigamous
at
least
18 years
old
not violative
of Art. 37
(incestuous
void
marriage
not violative
of
Art.
38
(void
marriage
by reason
of public
policy)
not
bigamous
Art. 148,
Family Code
marriages
under Art.
37
5. Void
marriages
by reason
of
public
policy
under Art.
38
6. Under
18 years
old
7. Adulterous
relationship
8. Bigamous/
polygamou
smarriage
9. Incestuous
marriages
under Art.
37
10. Void
marriages
by reason
of public
policy unde
r Art. 38
Other
void
marriages due
to absence of
formal requisite
Salaries
and Wages
Owned in equal
shares
Separately
owned
parties
Properties
acquired
through
exclusive
funds
Remains
exclusive,
provided there
is proof
Remains
exclusive
Properties
acquired by
both
through
work
and
industry
Governed
rules on
ownership
Owned
common
proportion
respective
contribution
Properties
acquired
while living
together
Owned in equal
shares since it
is presumed to
have
been
acquired
through
joint
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by
co-
by
in
in
to
No presumption
of
joint
acquisition.
When there is
evidence of joint
acquisition but
FOR UP CANDIDATES ONLY
PERSONS AND FAMILY RELATIONS
Art. 147,
Family Code
efforts
If one party did
not participate in
acquisition,
presumed
to
have
contributed
jointly, if the
former’s efforts
consisted in the
care
and
maintenance of
family
and
household
Art. 148,
Family Code
Art. 147,
Family Code
none as to the
extent of actual
contribution,
there
is
a
presumption of
equal sharing.
descendants,
such
share
belongs to the
innocent party
J.
Judicial
Property
Where only one
party to a void
marriage is in
good faith, the
share of the
party in bad
faith is forfeited:
In in favor of
their
common
children
In
case
of
default of or
waiver by any or
all
of
the
common
children or their
descendants,
each
vacant
share
shall
belong to the
respective
surviving
descendants
In the absence
of
such
024413CIV
Art. 148,
Family Code
Separation
of
Art. 134, Family Code. In the absence of an
express declaration in the marriage settlements,
the separation of property between spouses during
the marriage shall not take place except by judicial
order. Such judicial separation of property may
either be voluntary or for sufficient cause.
N.B.
Neither
party
can
encumber
or
dispose by acts
inter vivos his
share in coowned property
without
the
consent of the
other party until
cohabitation is
terminated.
Forfeiture
CIVIL LAW
If the spouses did not execute a written
agreement regarding their property regime
prior to the marriage, they can no longer
change it after the marriage ceremony has
taken place unless they have secured judicial
approval.
Sufficient Causes and Grounds for Return
to Previous Regime
If one party is
validly married
to
another,
his/her share in
the
co-owned
properties
will
accrue to the
ACP/CPG
of
his/her existing
valid marriage.
If the party who
acted in bad
faith
is
not
validly married
to
another,
his/her
share
shall be forfeited
in the same
manner as that
provided in Art
147.
The same rules
on
forfeiture
shall apply if
both parties are
in bad faith.
Sufficient Causes
for Judicial
Separation of
Property
[Art. 135, Family
Code]
Grounds for Return
to Previous
Regime
[Art. 141, Family
Code]
Spouse
of
the Termination of
petitioner has been civil interdiction
sentenced
to
a
penalty which carries
with it the penalty of
civil interdiction
the
Spouse of petitioner Reappearance
is judicially declared absentee spouse
an absentee
of
Loss of parental
authority
of
the
spouse of petitioner
has been decreed by
the court
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Restoration
of
parental authority to
the
spouse
previously deprived
of it
FOR UP CANDIDATES ONLY
PERSONS AND FAMILY RELATIONS
Sufficient Causes
for Judicial
Separation of
Property
[Art. 135, Family
Code]
Grounds for Return
to Previous
Regime
[Art. 141, Family
Code]
Spouse of petitioner
has abandoned the
latter or failed to
comply with his or
her obligations to the
family
When the spouse
who left the conjugal
home
without
a
decree
of
legal
separation resumes
common life with the
other
The spouse granted
the
power
of
administration in the
marriage settlements
has abused that
power
When the court,
being satisfied that
the spouse granted
the
power
of
administration
will
not again abuse that
power,
authorizes
the resumption of
said administration
At the time of the
petition, the spouses
have been separated
in fact for at least
one (1) year and
reconciliation
is
highly improbable.
Reconciliation
and
resumption of the
common life of the
spouses who have
been separated in
fact for at least one
(1) year
When
after
the
voluntary dissolution
of the ACP or CPG
has been judicially
decreed upon the
joint petition of the
spouses, they agree
to the revival of the
former
property
regime. No voluntary
separation
of
property
may
thereafter
be
granted.
The spouses may jointly file a verified petition
with the Court for the voluntary dissolution of
the ACP, and CPG, and for the separation of
their common properties [Art. 136, Family
Code].
Effect on creditors [Art. 136, Family Code]
All creditors of the ACP/CPG as well as the
personal creditors of the spouses shall be
listed in the petition and notified of the filing
[Art. 136, Family Code].
Effect of receiving the decree [Art. 137,
Family Code]
ACP/CPG shall be liquidated. During the
pendency of the proceeding for separation of
property, the absolute community or conjugal
partnership shall pay for the support of the
spouses and their children [Art. 137, Family
Code].
Effect of dissolution [Art. 138, Family Code]
After dissolution of the ACP/CPG, provisions
on complete separation of property shall apply
[Art. 138, Family Code].
IX.
THE FAMILY
A. General Principles
Art. 149, Family Code. The family, being the
foundation of the nation, is a basic social institution
which public policy cherishes and protects.
Consequently, family relations are governed by law
and no custom, practice or agreement destructive
of the family shall be recognized or given effect.
Art. 150, Family Code. Family relations include
those:
a.
Between husband and wife
b.
Between parents and children
c.
Among other ascendants and descendants
d.
Among brothers and sisters, full or half blood
In the first three cases, the presentation of a
final judgment against the guilty or absent
spouse is sufficient for the grant of the decree
of judicial separation of property.
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X. THE FAMILY HOME
A. General Principles
What Constitutes the Family Home [Art.
152, Family Code]
The family home is the dwelling house where
the family resides and the land on which it is
situated sustained [Art. 152, Family Code].
When Deemed Constituted [Art. 153, Family
Code]
The family home is deemed constituted on a
house and lot from the time it is occupied as a
family residence [Art. 153, Family Code].
Limitations on the Family Home [Art. 156,
Family Code]
The family home must be part of the
properties of the absolute community or the
conjugal partnership, or of the exclusive
properties of either spouse with the other’s
consent. It may also be constituted by an
unmarried head of a family in his or her own
property [Art. 156, Family Code].
B. Who May Constitute the
Family Home
The family home may be constituted:
1. Jointly by the husband and wife; or
2. An unmarried head of the family [Art. 152,
Family Code]
Note: A person may constitute and be the
beneficiary of only one family home [Art. 161,
Family Code].
C. Beneficiaries of the Family
Home
Beneficiaries [Art. 154, Family Code]
1. The husband and wife, or an unmarried
person who is the head of a family; and
2. Their parents, ascendants, descendants,
brothers, and sisters, whether the
relationship is legitimate or illegitimate,
who are living in the family home and who
depend on the head of the family for legal
support [Art. 154, Family Code].
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Requisites to be a Beneficiary of the
Family Home
1. The
relationship
is
within
those
enumerated in Art. 150, Family Code
2. They live in the family home
3. They are dependent for legal support on
the head of the family
Descendants
cannot
be
considered
beneficiaries if they are supported by their
own parents and not by the ascendants who
constituted the family home [Patricio v. Dario,
G.R. No. 170829 (2006)].
D. Exemption From Forced Sale,
Execution, Attachment
Rule: The family home is exempt from the
following from the time of its constitution and
so long as any of its beneficiaries resides
therein:
1. Execution;
2. Forced sale;
3. Attachment [Art. 153, Family Code].
Note: The provisions of this Chapter (Arts.
152-162, Family Code) shall also govern
existing family residences insofar as said
provisions are applicable [Art. 162, Family
Code].
E. Sale of Family Home
When the Family Home may be Sold [Art.
158, Family Code]
The family home may be sold, alienated,
donated, assigned, or encumbered by the
owner or owners thereof with the written
consent of the person constituting the same,
as the latter’s spouse, and a majority of the
beneficiaries of legal age. In case of conflict,
the court shall decide [Art. 158, Family Code].
Requirements for the Sale, Alienation,
Donation, Assignment, or Encumbrance of
the Family Home [Art. 158, Family Code]
The written consent of the following:
1. the person constituting it;
2. the spouse of the person constituting it;
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3. the majority of the beneficiaries who are of
legal age [Art. 158, Family Code].
F. When Terminated
The family home shall continue despite the
death of one or both of the spouses or of the
unmarried head of the family:
1. for a period of ten (10) years; or
2. for as long as there is a minor beneficiary.
3. for a period of ten (10) years; or
4. for as long as there is a minor beneficiary.
And the heirs cannot partition the same unless
the court finds compelling reasons therefore.
The rule shall apply regardless of whoever
owns the property or constituted the family
home [Art. 159, Family Code].
Art. 159, Family Code imposes the
proscription
against
the
immediate
partition of the family home regardless of
its ownership. This signifies that even if the
family home has passed by succession to the
co-ownership of the heirs, or has been willed
to any one of them, this fact alone cannot
transform the family home into an ordinary
Paternity & Filiation Table
CIVIL LAW
property, much less dispel the protection cast
upon it by the law. The rights of the individual
co-owner or owner of the family home cannot
subjugate the rights granted under Article 159
to the beneficiaries of the family home [Arriola
v. Arriola, G.R. No. 177703 (2008)].
XI. PATERNITY AND
FILIATION
A. Concepts of Paternity,
Filation, and Legitimacy
The filiation of children may be (a) by nature
or (b) by adoption. Natural filiation may be
(a) legitimate or (b) illegitimate [Art. 163,
Family Code; See table below].
Note: In Aquino v. Aquino [G.R. Nos. 208912
and 209018 (2021)], the Court used the terms
“marital” and “nonmarital” to replace the terms
“legitimate” and “illegitimate” when referring to
the children, as the latter terms are pejorative
terms when used to describe children based
on their parent’s marital status.
Status
Children Who Have
This Status
Rights
Effects on Succession
Legitimate
1. Conceived
OR
born during the
valid marriage of
the parents [Art.
164, FC]
2. Conceived
through artificial
insemination [Art.
164, FC]
3. Children
of
a
subsequent
marriage
(after
declaration
of
presumptive
death) conceived
prior
to
its
termination [Art.
43, FC]
4. Conceived or born
before the final
judgement
of
1. Bear the surnames of
the father and the
mother
2. Receive support from
parents, ascendants,
and brothers/sisters in
proper cases
3. Entitled to legitimate
and other successional
rights [Art. 174, FC]
4. Claim legitimacy [Art.
173, FC]
Legitimate
children
are
entitled to 1/2 of the estate
of
the parent
divided
amongst themselves [Art.
888, CC]
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Status
Children Who Have
This Status
CIVIL LAW
Rights
Effects on Succession
annulment under
Art. 45 or absolute
nullity under Art.
36 [Art. 54, FC]
5. Conceived or born
of the subsequent
marriage
under
Art. 53 [Art. 54,
FC]
6. Legitimated
children*
[Art.
177, FC]
7. Adopted
Children**
[RA
8552]
Illegitimate
or NonMarital
Conceived AND born 1. Bear the surname of
outside
a
valid
the mother
marriage [Art. 165, 2. Bear the surname of
FC]
the father if filiation
has been expressly
recognized by the
father
through
a
record of birth, a
public document, or
private
handwritten
instrument
3. Receive support
4. Entitled
to
successional
rights
[Art 176, FC]
5. Establish illegitimate
filiation [Art 175, FC]
Each illegitimate child
is entitled to an amount 1/2
the share of a legitimate
child [Art. 176, FC]
Legitimated*
Conceived AND born Same as Legitimate
outside
a
valid Child [Art. 179, FC]
marriage
provided
that:
1. At the time of
conception:
the
parents were NOT
disqualified
to
marry each other
(unless
the
impediment was a
minority of either
or both of them)
[Art. 177, FC]
AND
2. The
parents
Same as Legitimate
Child
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Status
Children Who Have
This Status
CIVIL LAW
Rights
Effects on Succession
From
the
Domestic
Administrative
Adoption
and Alternative Child Care
Act:
1. Adoptees
are
considered
as
legitimate child of the
adopter [Sec. Section
41, RA 11642]
2. Adoptees are entitled
to love, guidance, and
support in keeping
with the means of the
family. [Sec. 41, RA
11642]
From
Domestic
Administrative Adoption and
Alternative Child Care Act:
1. In testate and intestate
succession,
the
adopters
and
the
adoptee
shall
have
reciprocal
rights
of
succession
without
distinction
from
legitimate filiations.
subsequently
enter into a valid
marriage
[Art.
178, FC]
Adopted
Those
adopted
through
Domestic
Domestic
Administrative
Adoption
and
Alternative
Child
Care Act [RA 11642]
B. Legitimate Children
1. Who are Legitimate Children
a. Children conceived or born during the
valid marriage of the parents [Art. 164,
Family Code]
b. Children conceived through artificial
insemination [Art. 164, Family Code]
c. Children of a subsequent marriage
conceived prior to its termination [Art. 43,
Family Code]. This refers to those
subsequent marriages which were
terminated after the reappearance of the
spouse presumed dead.
d. Children conceived or born before the
judgment of annulment under Art. 45 or
absolute nullity under Art. 36 has become
final and executory [Art. 54, Family Code]
e. Children conceived or born of the
subsequent marriage under Art. 53 [Art.
54, Family Code]
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However,
if
the
adoptees
and
their
biological parents have
left a will, the law on
testamentary succession
shall govern. [Sec. 43,
RA 11642]
f. Legitimated children [Art. 177, Family
Code]
g. Adopted Children [RA 11642]
Natural/Biological
A child conceived or born during a valid
marriage is presumed to belong to that
marriage, regardless of the existence of
extramarital relationships [Liyao v. Liyao, G.R.
No. 138961 (2002)].
Artificial Insemination [Art. 164, Family
Code]
Artificial insemination is the impregnation of a
female with semen from a male without sexual
intercourse.
The child conceived through artificial
insemination with the consent of both husband
and wife is legitimate.
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The Family Code does not require, as a
condition for the legitimacy of the child, the
impotence of the husband.
3. The action commenced by the child shall
survive notwithstanding the death of either
or both of the parties.
Note: The child must be born to the wife to be
considered legitimate [Art. 164, Family Code].
3. Rights of Legitimate Children
2. Proof of Filiation of Legitimate
Children
Proof of Filiation is Necessary:
1. Where the child is born after 300 days
following the termination of the
marriage → Child has no status, and
whoever alleges legitimacy must prove it.
2. If the legitimacy of a child conceived or
born in wedlock is impugned and the
plaintiff has presented evidence to prove
any of the grounds provided in Art. 166,
Family Code → proof of filiation may be
used as a defense [Tolentino]
Legitimate Children may Establish Their
Filiation by any of the Following [Art. 172,
Family Code]:
1. Primary
Evidence
(for
voluntary
recognition)
a. Their record of birth appearing in the
civil register or a final judgment.
b. An admission of his filiation by his
parent in a public document or a
private handwritten instrument and
signed by said parent
2. Secondary Evidence (for involuntary
recognition)
a. Proof of open and continuous
possession of status as a legitimate
child.
b. Any other means stated by the rules of
court or special laws.
Note: Only in the absence of primary evidence
can secondary evidence be admitted
Action for Claiming Filiation (Legitimate
Children) [Art. 173, Family Code]:
1. The child can bring the action during his or
her lifetime.
2. If the child dies during a minority or in a
state of insanity, such action shall be
transmitted to his heirs, who shall have a
period of five (5) years within which to
institute the action.
024419CIV
Rights of Legitimate Children [Art. 174,
Family Code]
3S → Support, Surname, Succession
1. To bear the Surnames of the father and
the mother, in conformity with the
provisions of the Civil Code on Surnames
2. To receive Support from their parents,
their ascendants, and in proper cases,
their brothers and sisters, in conformity
with the provisions of the Family Code on
Support
3. To be entitled to the legitimate and other
Successional rights granted to them by
the Civil Code
Future support cannot be the subject of a
compromise, pursuant to Art. 2035, Civil
Code. The reason behind this prohibition is
that the right to support is founded upon the
need of the recipient to maintain his existence,
and thus the renunciation of such will be
tantamount to allowing the suicide of the
person or his conversion to a public burden,
which is contrary to public policy. [De Asis v.
CA, G.R. No. 127578 (1999)]
4. Grounds to Impugn Legitimacy
Article 166, Family Code. Legitimacy of a child
may be impugned only on the following grounds:
(1) That it was physically impossible for the
husband to have sexual intercourse with his
wife within the first 120 days of the 300 days
which immediately preceded the birth of the
child because of:
(a) the physical incapacity of the husband to
have sexual intercourse with his wife;
(b) the fact that the husband and wife were
living separately in such a way that sexual
intercourse was not possible; or
(c) serious illness of the husband, which
absolutely prevented sexual intercourse;
(2) That it is proved that for biological or other
scientific reasons, the child could not have
been that of the husband, except in the
instance provided in Art. 164 (2);the second
paragraph of Article 164; or
(3) That in the case of children conceived through
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artificial insemination, the written authorization
or ratification of either parent was obtained
through mistake, fraud, violence, intimidation,
or undue influence. (255a)
Grounds
to
impugn
legitimacy,
summarized:
1. It was physically impossible for the
husband to have sexual intercourse with
his wife within the first 120 days of the 300
days immediately preceding the birth of
the child.
2. It is biologically or scientifically impossible
that the child is that of the husband except
those born through artificial insemination.
3. That in the case of artificial insemination,
the written authorization or ratification of
either parent was obtained through
mistake, fraud, violence, intimidation, or
undue influence.
Notes:
● The court has held that impossibility of
access to the wife as contemplated in Art.
166 and Art. 116 of the family code means
that: (1) the husband was absent during
the initial period of conception, (2) there is
patent,
continuing,
and
incurable
impotence of the husband, or/and (3) the
husband is imprisoned, unless it is proven
that the cohabitation took place under
corrupt violation of prisons [Andal v.
Macaraig citing Manresa, G.R. No. L-2474
(1961). (Andal v. Macaraig, G.R. No.
2474, 30 May 1961)
● DNA testing is a valid probative tool to
determine filiation according to the Court
under the second way of impugning
legitimacy in Art. 166. However, the DNA
test must yield a 99.9% match as a
minimum value of the Probability of
Paternity in order to make a paternity
conclusion [Herrera v. Alba, G.R. No.
148220 (2005)](Herrera v. Alba, G.R. No.
148220, 15 June 2005).
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C. Illegitimate Children
1. Who are Illegitimate Children
General Rule: Those conceived and born
outside of a valid marriage [Art. 165, Family
Code].
Exceptions [Art. 54, Family Code]:
1. Children Those conceived or born before
the judgment of annulment or absolute
nullity of marriages voids under Art.
36 (psychological incapacity); and
2. Those conceived or born Under Art. 53
(subsequent marriages which did not
comply with Art. 52)
2. Proof of Filiation of Illegitimate
Children
Action for Claiming Illegitimate Filiation
Illegitimate children may establish their
illegitimate filiation in the same way and on
the same evidence as legitimate children [Art.
175, Family Code].
1. For actions based on primary evidence,
the action may be brought during the
same periods stated in Art. 173 of the
Family Code applies - a lifetime of the
child, and will not be extinguished by the
death of either party.
2. For actions based on secondary
evidence, the action may only be brought
during the lifetime of the alleged parent.
The same kind of evidence is provided in Art.
172 for establishing legitimate filiation may be
used to prove the filiation of illegitimate
children, and the action for this purpose must
be brought within the same period and by the
same parties as provided in Article 173 [Art.
175, Family Code].
However, if the evidence to prove the filiation
is secondary, the action must be brought
within the lifetime of the alleged parent [Art.
175, Family Code].
Primary Evidence
Signature of the father on the birth certificate
is considered an acknowledgment of paternity
and the mere presentation of a duly
authenticated copy of such certificate will
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successfully establish filiation [Eceta v. Eceta,
G.R. 157037 (2004)].
evidence to prove the same [Perla v. Baring,
supra].
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
acknowledgment of the child, and no further
court action is required [De Jesus v. Estate of
Decedent Juan Gamboa Dizon, G.R. No.
142877 (2001)].
By "open and continuous possession of the
status of a legitimate child" is meant the
enjoyment by the child of the position and
privileges usually attached to the status of a
legitimate child, like bearing the paternal
surname, treatment by the parents and family
of the child as legitimate, constant attendance
to the child's support and education, and
giving the child the reputation of being a child
of his parents [Fernandez v. Fernandez citing
Sempio-Diy, G.R. No. 143256 (2001)] [De
Jesus v. Syquia, G.R. No. L-39110 (1933)].
Secondary Evidence
Rule 130, Sec. 40 [now Sec. 41] is limited to
objects
commonly
known
as
family
possessions reflective of a family's reputation
or tradition regarding pedigree like inscriptions
on tombstones, monuments, or coffin plates
[Jison v. CA, G.R. No. 124853 (1998)].
"Su padre [Your father]" ending in a letter is
only proof of paternal solicitude and not of
actual paternity. Signature on a report card
under the entry of “Parent/Guardian” is
likewise inconclusive of open admission [Heirs
of Rodolfo Bañas v. Heirs of Bibiano Bañas,
G.R. No. L-25715 (1985)].
Mere possession of status as an illegitimate
child does not make an illegitimate child
recognized but is only a ground for bringing an
action to compel judicial recognition by the
assumed parent [Gono-Javier v. CA, G.R. No.
111994 (1994)].
To prove open and continuous possession of
the status of an illegitimate child, there must
be evidence of the manifestation of the
permanent intention of the supposed father to
consider the child as his, by continuous and
clear manifestations of parental affection and
care, which cannot be attributed to pure
charity [Perla v. Baring citing Jison v. CA,
G.R. No. 172471 (2012)].
Meanwhile, the lack of participation of the
supposed father in the preparation of a
baptismal certificate renders this document
incompetent to prove paternity. Baptismal
certificates are per se inadmissible in
evidence as proof of filiation and they cannot
be admitted indirectly as circumstantial
024421CIV
Other Evidence
DNA evidence can be used as proof of
paternity [Agustin v. CA, G.R. No. 162571
(2005)].
Marriage certificates cannot be used as proof
of filiation [Lim v. CA, G.R. No. L-39381
(1975)].
There are four significant procedural aspects
of a traditional paternity action that parties
have to face: a prima facie case, affirmative
defenses, presumption of legitimacy, and
physical resemblance between the putative
father and the child. A prima facie case exists
if a woman declares — supported by
corroborative proof — that she had sexual
relations with the putative father; at this point,
the burden of evidence shifts to the putative
father. Further, the two affirmative defenses
available to the putative father are: (1)
incapability of sexual relations with the mother
due to either physical absence or impotency,
or (2) that the mother had sexual relations
with other men at the time of conception
[Gotardo v. Buling citing Herrera v. Alba, G.R.
No. 165166 (2012)].
3. Rights of Illegitimate Children
Rights of Illegitimate Children
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 the Family Code. The legitime
of each illegitimate child shall consist of onehalf (1/2) of the legitime of a legitimate child
[Art. 176, Family Code].
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It is mandatory that the mother of an
illegitimate child signs the birth certificate of
her child in all cases, irrespective of whether
the father recognizes the child as his or not.
The only legally known parent of an
illegitimate child, by the fact of illegitimacy, is
the mother of the child who conclusively
carries the blood of the mother [Barcelote v.
Republic, G.R. No. 222095 (2017)].
Illegitimate children shall be under the
parental authority of their mother. Mothers are
entitled to the sole parental authority of their
illegitimate children, notwithstanding the
father’s recognition of the child. In the
exercise of that authority, mothers are
consequently entitled to keep their illegitimate
children in their company, and the Court will
not deprive them of custody, absent any
imperative cause showing the mother’s
unfitness to exercise such authority and care
[Masbate v. Relucio, G.R. No. 235498 (2018)].
CIVIL LAW
2. If he should die after the filing of the
complaint
without
having
desisted
therefrom
3. If the child was born after the death of the
husband.
Legitimacy and filiation can be questioned
only in a direct action seasonably filed by
the proper party, and not through the
collateral attack. [Braza v. The City Civil
Registrar of Himamaylan, G.R. No. 181174,
(2009)]
D. Legitimated Children
Rule: Legitimated children are illegitimate
children who because of the subsequent
marriage of their parents are, by legal fiction,
considered legitimate.
1. Who May Be Legitimated
The choice of a child over seven (7) years of
age [Art. 213, Family Code] and over ten (10)
years of age [Sec. 6, Rule 99, Rules of Court]
shall be considered in custody disputes only
between married parents, as they are
accorded joint parental authority over their
common children [Art. 211, Family Code]. This
choice is not available to an illegitimate child,
because parental authority is given only to the
mother [Art. 176, Family Code], unless she is
shown to be unfit or unsuitable [Masbate v.
Relucio, supra].
Requisites for Legitimation:
1. The child must have been conceived and
born outside of wedlock; and
2. The parents, at the time of the child's
conception, were not disqualified by any
impediment to marry each other, or
disqualified only because either or both of
them were below eighteen (18) years old
[Art. 177, Family Code as amended by RA
9858]
4. Grounds to Impugn Filiation
Procedure and Effects:
1. Legitimation
shall
take
place
by
a subsequent valid marriage between the
parents. The annulment of a voidable
marriage
shall
not
affect
the
legitimation. [Art. 178, Family Code].
2. Effects of legitimation shall retroact to the
time of the child’s birth [Art. 180, Family
Code].
3. Legitimation of children who died before
the celebration of the marriage shall
benefit their descendants [Art. 181, Family
Code].
General Rule: Only the husband can
impugn the filiation of a child. If he does not
bring an action within the prescribed periods
[See Grounds to Impugn Legitimacy
above], he cannot file such action anymore
thereafter, and this is also true with his heirs.
Exception: The heirs of the husband may
impugn the filiation of a child within the
periods prescribed in Art. 170 [Art. 171,
Family Code]:
1. If the husband should die before the
expiration of the period fixed for bringing
his action
024422CIV
2. How Legitimation Takes Place
3. Grounds to Impugn Legitimacy
Rights of Legitimated Children
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Legitimated children have the same rights as
those of legitimate children [Art. 179, Family
Code].
E. Adopted Children
1. Domestic Administrative Adoption
and Alternative Child Care Act [RA
11642]
Since adoption is wholly and entirely artificial,
to establish the relation the statutory
requirements must be strictly carried out;
otherwise, the adoption is an absolute nullity
[Lazatin v. Honorable Judge Campos, Jr.,
G.R. No. L-43955-56 (1979)].[Republic v. CA
and Caranto, G.R. No. 103695 (1996)].
Note: Republic Act No. 11642 (the Domestic
Administrative Adoption and Alternative Child
Care Act) repealed RA 8552 and amended
RA 8043. It took effect on January 21, 2022.,
which is beyond the bar cutoff date of June
30, 2021.
Under RA 11642, the Inter-Country Adoption
Board is reorganized into the National
Authority for Child Care. The duties, functions
and responsibilities of the ICAB, the DSWD
and other government agencies relating to
alternative child care and adoption are
transferred to the NACC.
2. Who May Adopt
1.
Filipino Citizens [Sec. 21 (a), RA
11642]
a. Of at least twenty-five (25) years of
age
b. With full civil capacity and legal rights
c. Of good moral character and has not
been convicted of any crime involving
moral turpitude
d. Emotionally
and
psychologically
capable of caring for children
e. At least sixteen (16) years older than
the adoptee, except:
i. when the adopter is the biological
parent of the adoptee; or
ii. the spouse of the adoptee’s parent;
or
iii. the sibling of the adopted.
024423CIV
CIVIL LAW
f.
In a position to support and care for
adopted his/her children in keeping
with the means of the family
g. Has undergone pre-adoption services
2. Foreign Nationals
a. Are permanent or habitual residents of
the Philippines for at least five (5)
years
b. Must possess the same qualifications
as stated for Filipino nationals prior to
the filing of the petition
c. Must come from a country with
diplomatic
relations
with
the
Philippines and that the laws of the
adopter’s country will:
i. acknowledge the Certificate of
Adoption as valid
ii. acknowledge the child as a legal
child of the adopters
iii. allow entry of the child into the such
country as an adoptee
3. Guardians [Sec. 21 (b), RA 11642]: With
respect to their wards, after the
termination of the guardianship and
clearance
of
his/her
financial
accountabilities
4. Foster parent [Sec. 21 (c), RA 11642]:
With respect to the foster child
5. Philippine government officials and
employees [Sec. 21 (d), RA 11642]
a. Deployed abroad, and
b. Are able to bring the child with them
3. Who May Be Adopted [Sec. 22, RA
11642]
1.
2.
3.
4.
5.
child who has been issued a Certificate
Declaring a Child Legally Available for
Adoption (CDCLAA)
Legitimate child of one spouse by the
other spouse
Illegitimate child by a qualified adopter, to
improve the child’s status to that of
legitimacy
A Filipino of legal age if, prior to the
adoption, said person has been
consistently considered and treated, for a
period of at least three (3) years, by the
adopter(s) as his/her child since minority
A child whose previous adoption has been
rescinded
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6. A child whose biological or adoptive
parents(s) haves died, provided that no
proceedings shall be initiated within six (6)
months from the time of death of said
parents(s)
7. A foster child
8. A relative of the adopter
a. Rights of an Adopted Child
1.
In General [Sec. 42, RA 11642]
Except in cases where the biological parent is
the adopter’s spouse, all legal ties between
biological parent and adoptee shall be
severed, and the same shall then be vested
on the adopters.
2.
Legitimacy [Sec. 41, RA 11642]
The adoptee shall be considered the
legitimate son/daughter of the adopters for all
intents and purposes, and as such is entitled
to all rights and obligations provided by law to
legitimate children born to them without
discrimination of any kind. The adoptee is
entitled to love, guidance, and support in
keeping with the means of the family.
3.
Succession [Sec. 43, RA 11642]
In testate and intestate succession, the
adopter and the adoptee shall have reciprocal
rights of succession without distinction from
legitimate filiation. However, if the adoptee
and his/her biological parents had left a will,
the law on testamentary succession shall
govern.
4.
Name [Sec. 41, RA 11642]
Under RA 11642, the adopter has the right to
choose the name by which the child is to be
known, consistent with the best interest of the
child.
5.
Nationality
Adoption does not confer citizenship of the
adopter to the adopted, and vice versa. Under
Sec. 3, Art. IV of the Constitution, Philippine
citizenship may be lost/acquired [only] in the
manner provided by law. The adoption of an
alien is not a means of acquiring Philippine
citizenship. A Filipino adopted by an alien
does not lose his Philippine citizenship.
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The right to confer citizenship belongs to the
State (political) and cannot be granted by a
citizen through adoption. Adoption creates a
relationship between the adopter and
adoptee, not between the State and the
adoptee [Tolentino].
4. Effects of a Decree of Adoption
[See Article Nos. 189-190 of the
Family Code]
On Legitimate Status
The adoptee shall be considered the
legitimate child of the adopter for all intents
and purposes and as such in entitled to:
• all the rights and obligations provided by
law to legitimate children born to them
without discrimination of any kind;
• love, guidance, and support in keeping
with the means of the family; and
• legitimate filiation that is created between
the adopter and adoptee shall be
extended to the adopter’s parents,
adopter’s
legitimate
siblings,
and
legitimate descendants [Sec. 41, RA No.
11642 (2022)].
On Parental Authority
Upon issuances of the Order of Adoption:
• Adoption shall cease as alternative care
and become parental care.
• Adoptive parents shall now have full
parental authority over the child.
• Except in cases where the biological
parent is the spouse of the adopter, all
legal ties between the biological parents
and the adoptee shall be severed and the
same shall then be vested on the
adopters.
• In case spouses jointly adopt or one
spouse adopts the legitimate child of the
other, joint parental authority shall be
exercised by the spouses [Sec. 42, RA
No. 11642 (2022)].
Retroactive effect may not be given to the
decree of adoption so as to impose a liability
upon the adopting parents accruing at a time
when adopting parents had no actual or
physical custody over the adopted child
[Tamargo v. CA, G.R. No. 85044, (1992)].
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On Name
The adopter is also given the right to choose
the name by which the child is to be known,
consistent with the best interest of the child
[Sec. 41, RA No. 11642 (2022)].
The adopted child acquires the right to use the
surname of the adopters [Art. 189 (1), Civil
Code].
On Hereditary Rights
In testate and intestate succession, the
adopters and the adoptee shall have
reciprocal rights of succession without
distinction from legitimate filiations. However,
if the adoptees and their biological parents
have left a will, the law on testamentary
succession shall govern [Sec. 43, RA No.
11642 (2022)].
a. Instances and Effects of Rescission
[Sec. 47, RA 11642]
Under RA 11642, the adoption may be
rescinded only upon the petition of the
adoptee or by his/her guardian, with the
National Authority for Child Care (NACC), or
with the assistance of the local social welfare
development officer (SWDO) if the adoptee is
a minor or if the adoptee is over eighteen (18)
or over but is incapacitated, based on the
following grounds: [Sec. 47, RA 11642]
1. Repeated
physical
and/or
verbal
maltreatment by the adopters despite
having undergone counseling
2. Attempt on the life of adoptee
3. Sexual assault or violence
4. Abandonment and/or failure to comply
with parental obligations
CIVIL LAW
4. Reverting successional rights to their
status prior to adoption, but not only as of
the date of the judgment of judicial
rescission.
5. Vested rights acquired prior to judicial
rescission shall be respected.
Note: Rescission contemplates a situation
where the adoption decree remains valid until
its termination.
5.
Inter-country Adoption
8043, as amended by RA 11642]
[RA
Inter-Country Adoption refers to the sociolegal process of adopting a Filipino child by a
foreigner or a Filipino citizen permanently
residing abroad where the petition is filed, the
supervised trial custody is undertaken, and
the decree of adoption is issued outside the
Philippines.
Note: Under RA 11642, the Inter-Country
Adoption Board is reorganized into the
National Authority for Child Care. The duties,
functions and responsibilities of the ICAB, the
DSWD and other government agencies
relating to alternative child care and adoption
are transferred to the NACC.
a. When Allowed
No child shall be matched to a foreign
adoptive family unless it can be satisfactorily
shown that the child cannot be adopted locally
[Sec. 11, RA 8043].
XII. SUPPORT
A. Scope;
Support
What
Comprises
Effects of Rescission [Sec. 53, RA 11642]
1. Restoration of parental authority of the
adoptee’s biological parent(s) or the legal
Support consists of everything indispensable
custody of the NACC if the adoptee is still
for sustenance, dwelling, clothing, medical
a child or restoration of the parental
attendance, education, and transportation, in
authority of the adoptee’s biological
keeping with the financial capacity of the
parent(s) upon petition of the latter to the
family [Art. 194 (1), Family Code].
NACC
1. Education includes a person’s schooling
2. Extinguish the reciprocal rights and
or training for some profession, trade, or
obligations of the adopters and adoptees.
vocation, the right to which shall subsist
3. Cancellation of the new birth certificate of
beyond the age of majority [Art. 194 (2),
the adoptee as ordered by the court and
Family Code].
restoration of the adoptee’s original birth
certificate.
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2. Transportation includes expenses in going
to and from school, or to and from a place
of work [Art. 194 (2), Family Code].
B. Who are Obliged to Give
Support
Those obliged to support each other are:
1. Spouses,
2. Legitimate ascendants and descendants,
3. Parents and their children (legitimate and
illegitimate) and the children of the latter
(legitimate and illegitimate),
4. Legitimate brothers and sisters, whether
of full or half-blood; [Art. 195, Family
Code]
5. Illegitimate brothers and sisters, whether
of full or half-blood
a. Except when the need for support of
one (who is of age) is due to a cause
imputable
to
his/her
fault
or
negligence [Art. 196, Family Code]
Mutual Obligation to Support of Spouses
Note: Both legitimate and illegitimate children
are entitled to support. The only difference is
the source of support which, for illegitimate
children, is the parent’s separate properties.
Where the illegitimate parent is legally married
to another person, their CPG or ACP cannot
answer for support for the illegitimate child of
one of them, unless the parent has no
adequate separate property, in which case,
support will be taken from the CPG or ACP
subject to reimbursement upon liquidation
[Arts. 122 & 197, Family Code].
C. Source of Support
CPG or ACP shall answer for the support of
the:
1. spouse,
2. their common children, and
3. the legitimate children of their spouse
[Arts. 94 & 121, Family Code].
The separate property of the obligor shall
answer for the support of the:
1. Legitimate ascendants,
2. [All other] descendants, whether legitimate
or illegitimate and
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CIVIL LAW
3. Brothers and sisters, whether legitimate or
illegitimately related.
If no separate property, the ACP/CPG (if
financially capable) shall advance the support,
to be deducted from the obligor’s share upon
liquidation of such regime [Art. 197, Family
Code].
D. Order of Support
Article 199, Family Code. Whenever two or more
persons are obliged to give support, the liability
shall devolve upon the following persons in the
order herein provided:
1. The spouse;
2. The descendants in the nearest degree;
3. The ascendants in the nearest degree;
and
4. The brothers and sisters.
The order of liability among ascendants and
descendants would be:
1. Legitimate children and descendants,
2. Legitimate parents and ascendants, and
3. Illegitimate children and their descendants
[Tolentino].
In Case of Multiple Obligors
When the obligation to give support falls upon
two or more persons, the payment of the
same shall be divided between them in
proportion to their resources [Art. 200 (1),
Family Code].
Also, in case of urgent need and by special
circumstances, the judge may order only one
obligor to furnish support without prejudice to
reimbursement from other obligors of the
share due from them [Art. 200 (2), Family
Code].
In Case of Multiple Recipients
If there are multiple recipients and only one
obligor, and the latter has no sufficient means
to satisfy all claims:
1. Observe order in Art. 199 as to whose
claim shall be satisfied first;
2. But if the concurrent obligees are the
spouse and a child subject to parental
authority, the child shall be preferred [Art.
200 (3), Family Code].
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Support Given by a Stranger
Article 206, Family Code. When, without the
knowledge of the person obliged to give support, it
is given by a stranger, the latter shall have a right
to claim the same from the former, unless it
appears that he gave it without intention of being
reimbursed.
The stranger contemplated in this provision is
one who does not have any obligation to
support the recipient.
Person Obliged Refuses or Fails to Give
Support
Article 207, Family Code. When the person
obliged to support another unjustly refuses or fails
to give support when urgently needed by the latter,
any third person may furnish support to the needy
individual, with the right of reimbursement from the
person obliged to give support. This Article shall
particularly apply when the father or mother of a
child under the age of majority unjustly refuses to
support or fails to give support to the child when
urgently needed.
E. Amount of Support
The amount of support is in proportion to the
means of the provider and the needs of the
receiver, and can be reduced or increased if
such circumstances change [Arts. 201 & 202,
Family Code].
Contractual Support or that Given by Will
The excess in an amount beyond that
required for legal support shall be subject to
levy on attachment or execution [Art. 208,
Family Code].
Reason: The amount of support agreed upon
in the contract or given in the will can be more
than what the recipient needs [Sempio-Diy].
Furthermore, contractual support shall be
subject to adjustment whenever a modification
is necessary due to changes in circumstances
manifestly beyond the contemplation of the
parties [Art. 208, Family Code].
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CIVIL LAW
F. Manner and Time of Payment
Article 203, Family Code. The obligation to give
support shall be demandable from the time the
person who has a right to receive the same needs
it for maintenance, but it shall not be paid except
from the date of judicial or extrajudicial demand.
Support pendente lite may be
accordance with the Rules of Court.
claimed
in
Payment shall be made within the first five (5) days
of each corresponding month or when the recipient
dies, his heirs shall not be obliged to return what he
has received in advance.
Two Options to Fulfill the Obligation to
Give Support
1. Payment of the amount; or
2. Receiving and maintaining the recipient in
the home of the provider
Requisites for Option #2:
1. The obligor has his own home or domicile,
and
2. There is no moral or legal reason which
prevents the recipient from living in the
obligor’s
home
or
domicile
[Art.
204, Family Code].
G.
Renunciation
Termination
and
The obligation of spouses to mutual support
lies in the existence of marriage bonds. Once
the marriage has been declared null, this
obligation ceases.
The Court held that the validity of the marriage
can be collaterally attacked, so long as it is in
an action for support. Although the suit is not
instituted to directly address the issue of
validity, the Court deems it essential to the
determination of the issue on support [De
Castro v. Assidao-De Castro, G.R. No.
160172 (2008)].
Under Art. 194, Family Code, the obligation to
support a recipient’s education may continue
even after the person entitled has reached the
age of majority [Art. 194, Family Code].
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H. Support Pendente Lite
Pending legal separation or annulment, and
for declaration of nullity, support pendente lite
for spouses and children will come from the
ACP/CPG. After the final judgment granting
the petition, the mutual support obligation
between the spouses ceases. However, in a
legal separation, the court may order the guilty
spouse to give support to the innocent spouse
[Art. 198, Family Code].
CIVIL LAW
a. Exception to the Exception: If there
is a judicial order to the contrary.
2. In case of absence or death of either
parent, the parent present or alive [Art.
212, Family Code].
3. In case of separation of the parents, the
parent designated by the court [Art. 213,
Family Code].
4. In the case of illegitimate children, the
mother [Art. 176, Family Code]
B. Substitute Parental Authority
Note: In Par. 1, Art. 100, Family Code, de
facto separation does not affect the ACP/ and
the CPG, except that the spouse who leaves
the conjugal home without just cause shall not
be entitled to support [Art. 100 (1), Family
Code].
XIII. PARENTAL
AUTHORITY
A.
Concept
Authority
of
Parental
What Comprises Parental Authority [Art.
209, Family Code]
1. Caring for and rearing of children for civic
consciousness and efficiency, and;
2. Development of the moral, mental, and
physical character and well-being of
children.
What Characterizes Parental Authority [Art.
210, Family Code]
General Rule: Parental authority is not
renounceable and non-transferable.
Exception: In cases provided by law.
Who Exercises Parental Authority [Arts.
211-213, Family Code]
General Rule: Joint exercise by the father
and the mother of a child [Art. 211 (1), Family
Code].
Exceptions:
1. In case of disagreement, the father’s
decision prevails [Art. 211 (1), Family
Code].
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When Substitute Parental Authority is
Exercised [Art. 214, Family Code]
In case of death, absence, or unsuitability of
the parents
Who
Exercises
Substitute
Parental
Authority (in order)
1. The surviving grandparent [Art. 214,
Family Code].
a. Exception: When several survive, the
one designated by the court, taking
into
account
all
relevant
considerations [Art. 214, Family
Code].
2. The oldest brother or sister, over 21 years
of age [Art. 216, Family Code].
3. The child’s actual custodian, over 21
years of age [Art. 216, Family Code].
C. Special Parental Authority
Who Exercises Special Parental Authority
[Art. 218, Family Code]
1. The school (its administrators and
teachers), or
2. The individual, entity, or institution
engaged in child care
When is Special Parental Authority
Exercised [Art. 218, Family Code]
1. While the child is under their supervision,
instruction, or custody
2. During all authorized activities, whether
inside or outside the premises of the
school, entity, or institution
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Substitute Parental Authority and Special
Parental Authority, Distinguished
DIFFERENCE
SUBSTITUTE
SPECIAL
Who
Exercises
Grandparent,
the
oldest
sibling,
or
courtappointed
guardian
Schools
(administrators and
teachers) or
individual,
entities
engaged in
child care
When
Exercised
Only in case
of
death,
absence,
or
unsuitability of
parents
Concur- rent
with
parental
authority or
substitute
parental
authority
How Liable
Subsidiarily
liable
for
damages
caused by the
minor
Principally
and
solidarily
liable
for
damages
caused the
minor’s acts
or
omissions
while under
their
custody,
supervision,
or
instruction
CIVIL LAW
Disciplinary Measures over the Child [Art.
223, Family Code]
Persons exercising parental authority over a
child may petition the proper court of the place
where the child resides for an order providing
for disciplinary measures over the child.
Note:
1. The child shall be entitled to the
assistance of counsel, either of his choice
or appointed by the court, and a summary
hearing shall be conducted wherein the
petitioner and the child shall be heard.
2. However, if in the same proceeding the
court finds the petitioner at fault,
irrespective of the merits of the petition, or
when the circumstances warrant, the court
may also order the deprivation or
suspension of parental authority or adopt
such other measures as it may deem just
and proper.
For Persons Exercising Substitute Parental
Authority [Art. 233 (1), Family Code]
The person exercising substitute parental
authority shall have the same authority over
the person of the child as the parents.
2. Effect of Parental Authority over
the Child’s Property
Joint Legal Guardianship [Art. 225 (1),
Family Code]
The father and the mother shall jointly
exercise legal guardianship over the property
of their unemancipated child without the
necessity of a court appointment.
D. Effects of Parental Authority
1. Effect of Parental Authority over
the Child’s Person
Civil Liability [Art. 221, Family Code]
Parents and other persons exercising parental
authority shall be civilly liable for the injuries
and damages caused by the acts or omissions
of their unemancipated children living in their
company and under their personal parental
authority subject to the appropriate defenses
provided by law.
024429CIV
In case of disagreement, the father’s decision
shall prevail, unless there is a judicial order to
the contrary.
Nature of Administration [Art. 226, Family
Code]
The property of the unemancipated child
earned or acquired with his work or industry or
by onerous or gratuitous title shall belong to
the child in ownership and shall be devoted
exclusively to the latter’s support and
education, unless the title or transfer provides
otherwise.
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The right of the parents over the fruits and
incomes of the child’s property shall be limited
primarily to the child’s support and secondarily
to the collective daily needs of the family [Art.
226, Family Code].
Bonds [Art. 225 (2), Family Code]
Where the market value of the property or the
annual income of the child exceeds P50,000,
the parent concerned shall be required to
furnish a bond in such amount as the court
may determine, but not less than ten per
centum (10%) of the value of the property or
annual income, to guarantee the performance
of the obligations prescribed for general
guardians [Art. 225 (2), Family Code].
The petition shall be considered as a
summary special proceeding, with the
ordinary rules on guardianship being merely
suppletory.
Except the Following, in which case the
Ordinary Rules on Guardianship shall
Apply:
1. When the child is under substitute
parental authority;
2. When the guardian is a stranger, or; or
3. When a parent has remarried.
Trusts [Art. 227, Family Code]
If the parents entrust the management or
administration of any of their properties to an
unemancipated child, the net proceeds of
such property shall belong to the owner.
The child shall be given a reasonable monthly
allowance in an amount not less than that
which the owner would have paid if the
administrator were a stranger unless the
owner grants the entire proceeds to the child.
In any case, the proceeds thus given in whole
or in part shall not be charged to the child’s
legitime.
E. Suspension or Termination of
Parental Authority
CIVIL LAW
3. Upon the emancipation of the child.
Unless Subsequently Revived by Final
Judgment, there is Permanent Termination
[Art. 229, Family Code]
1. Upon adoption of the child;
2. Upon appointment of a general
guardian;
3. Upon
judicial
declaration
of
abandonment of the child in a case filed
for the purpose;
4. Upon final judgment of a competent
court divesting the party concerned of
parental authority
a. Note: Also mandatory and permanent
if the person exercising parental
authority has subjected the child or
allowed him to be subjected to
sexual abuse [Art. 232, Family Code].
5. Upon judicial declaration of absence or
incapacity of the person exercising
parental authority.
When Suspended [Arts. 230-231, Family
Code]
1. Upon conviction of the parent or the
person exercising the same of a crime
which carries with it the penalty of civil
interdiction;
2. Upon final judgment of a competent
court in an action filed for the purpose or
in a related case, if the parent or the
person exercising the same:
a. Treats the child with excessive
harshness or cruelty;
b. Gives the child corrupting orders,
counsel, or example;
c. Compels the child to beg, or
d. Subjects the child or allows him to be
subjected to acts of lasciviousness
[Art. 231, Family Code].
Note: The grounds enumerated above are
deemed to include cases that have resulted
from culpable negligence of the parent or
person exercising parental authority [Art. 231,
Family Code].
When Reinstated [Arts. 230-231, Family
Code]
1. Automatically upon service of penalty (civil
interdiction).
2. Automatically upon pardon or amnesty of
the offender.
When Permanently Terminated [Art. 228,
Family Code]
1. Upon the death of the parents
2. Upon the death of the child, or
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3. By judicial order, if the court finds that the
cause, therefore, has ceased and will not
be repeated [Art. 231, Family Code].
Prohibition for Persons Exercising Special
Parental Authority [Art. 233, Family Code]
In no case shall the school administrator,
teacher or individual engaged in child care
and exercising special parental authority inflict
corporal punishment upon the child.
XIV. EMANCIPATION
A. Cause of Emancipation
When Emancipation Takes Place [Art. 234,
Family Code, as amended by RA 6809 6089]
By attainment of majority, at the age of
eighteen (18) years
B. Effect of Emancipation
Effect: Termination of parental authority over
the person and property of the child
emancipated [Art. 228 (3), Family Code]. The
person emancipated becomes qualified and
responsible for all acts of civil life.
Note:
1. Persons possessing parental authority
over the emancipated individual are
required to give their respective parental
consent until the emancipated individual is
at the age of twenty-one (21).
2. Nothing shall be construed to derogate the
duty and responsibility of parents and
guardians for children and wards below
twenty-one (21) years of age mentioned in
the Pars. 2 & 3, Art. 2180, Civil Code.
3. Other exceptions established by existing
laws
in
special
cases.
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PROPERTY
CIVIL LAW
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PROPERTY
CIVIL LAW
PROPERTY
I. CLASSIFICATION OF
PROPERTY
A. Based on Mobility [Immovable
or Movable]
1. Real or Immovable Property [Art.
415, Civil Code] – NIDA
a. Immovables by Nature (Pars. 1, 2*[ if
they are spontaneous products of soil]
and 8) – [LBCR-E-MQS]
1.
Land,
Buildings,
Roads
and
Construictions of all kinds adhered to the
soil [Art. 415 (1), Civil Code]
The dismissal of the complaint was proper. A
house is classified as immovable property by
reason of its adherence to the soil on which it is
built [Art. 415(1), Civil Code]. This classification
holds true regardless of the fact that the house
may be situated on land belonging to a different
owner. But once the house is demolished, as in
this case, it ceases to exist as such and hence
its character as an immovable likewise ceases
[Bicerra v. Teneza, G.R. No. L-16218 (1962)].
Art. 415 enumerates lands and buildings
separately. This can only mean that a
building, by itself, is considered an
immovable [Soriano v. Spouses Galit, G.R.
No. 156295 (2003)].
The inclusion of the building, separate and
distinct from the land, in the enumeration of
what may constitute real properties [Art. 415,
Civil Code] could only mean one thing — that a
building is by itself an immovable property
irrespective of whether or not said structure
and the land on which it is adhered to
belong to the same owner [Tumalad v.
Vicencio, G.R. No. L- 30173 (1971)].
2. Everything attached to an immovable
object in a fixed manner, in such a way
that it cannot be separated therefrom
without
breaking
the
material
or
deterioration of the object [Art. 415(3),
Civil Code]
Trees and plants are immovable by nature if
they are the spontaneous products of the
soil and by incorporation if they are produced
by lands of any kind through cultivation or
labor.
Once trees or plants are cut or uprooted,
whether for firewood, or for lumber, or other
use, they become movable.
● Timber [Manresa] – Still immovable; once a
timber is uprooted (MUST BE uprooted
naturally), it still can grow. It is part of the
timberland.
Growing fruits:
● May be treated as personal property
● When growing crops are sold, the
transaction is considered as sale of
movables because it is understood that they
are to be gathered or harvested for delivery
and are no longer attached to the land or
integral parts.
3. Mines, Quarries, and Slag dumps, while
the matter thereof, forms part of the bed,
and waters either running or stagnant [Art.
415(8), Civil Code]
Once severed, they become movable, for
then they are no longer mines, etc. but
minerals.
“Waters” which are immovables, such as a sea
(as to that part which may be appropriated),
river, or lake, must not be confused with “water’’
itself which is plainly movable property. Waters,
either running or stagnant, are classified as
immovables in most jurisdictions.
b. Immovables by Incorporation (Pars. 1,
2 [they are produced by lands of any
kind through cultivation or labor], 3, and
4) – [LTEF]
●
024433CIV
Movables but are attached to an immovable
in such a way as to be an integral part
[Pars. 2, 3, and 7, Art. 415, Civil Code]
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1.
Lands,
Buildings,
Roads,
and
Constructions
of all kinds adhered to the soil [Art.
415(1), Civil Code]
Buildings → Immovable property, provided it is
more or less permanent. structure independent
of and regardless of the ownership of the land.
● Structures which are merely superimposed
on (not adhered) to the soil like bayongbarong may be considered as movable.
However, socio-economic status is also a
factor, there are families who could only
afford these types of housing so there is
also the need to look at the intent on being
immovable/movable.
● What
if
it
is
sold
to
be
demolished/demolished?
=
becomes
movable
Roads and construction → Immovable
property.
● It is immovable as long as there is an intent
to attach it permanently although it is merely
made to rest on the land.
● Does not matter whether it is public/private
● Wall/fences are immovable as construction
by incorporation.
2. Trees, plants, and growing fruits while
they are attached to the land or form an
integral part of an immovable [Art. 415(2),
Civil Code]
3. Everything attached to an immovable
object in a fixed manner, in such a way
that it cannot be separated therefrom
without
breaking
the
material
or
deterioration of the object [Art. 415(3),
Civil Code]
Note: The Code does not require that the
attachment or incorporation be made by the
owner of the land, the only criterion being the
union or incorporation with the soil [Navarro v.
Pineda, G.R. No. L-18456 (1963)].
4. Fertilizers
The fertilizer must be used on the land because
it is only then that the intention of the owner to
use them on the tenement is beyond doubt.
024434CIV
●
●
To be part of the land = IMMOVABLE by
incorporation and destination.
If the fertilizer is already used on the
land for cultivation BUT still in the
container = MOVABLE.
c.
Immovables
by
Destination
(Paragraphs 4, 5, 6, 7, and 9) – [OMAFD]
1. Statutes, reliefs, paintings or other
objects for use or Ornamentation [Art.
415(4), Civil Code]
Requisites:
1. The objects must be placed in the
immovable by the owner of the latter; and
Note: If placed by a person other than the
owner (e.g. lessee, usufructuary), they must
be acting as the agent of the owner.
Otherwise, the object will not attain the
character of an immovable [Davao Sawmill
v. Castillo, G.R. No. L- 40411 (1935)].
2. With
intention
to
attach
them
permanently even if separation will not
involve breakage or injury.
Note: Where the improvement or ornaments
placed by the lessee are not to pass to the
owner at the expiration of the lease.
2. 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 to directly
meet the needs of the said industry or
works [Art. 415(5), Civil Code]
Note: These machinery, etc. need not be
attached to an immovable. Their immovable
character depends upon their use in the
industry or works carried on in a building or
on a piece of land [De Leon].
Example: Machineries of breweries used in the
manufacture of liquor and soft drinks, though
movable in nature, are immobilized because
they are essential to said industries [Mindanao
Bus Co. v. City Assessor and Treasurer, G.R.
No. L-17870 (1962)].
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3. Animal houses, etc. or breeding places
of similar nature, and the animals in these
places [Art. 415(6), Civil Code]
Requisites:
1. Placed by the owner or the tenant as the
owner’s agent;
2. With
the
intention to have them
permanently attached to the land; and
3. Forming a permanent part of the land [Art.
415(6), Civil Code]
4. Fertilizers
5. Docks, and structures which, although
floating, are intended by their nature to
remain at a fixed place on a river, lake, or
coast [Art. 415(9), Civil Code] (e.g. power
barges [FELS Energy v. The Province of
Batangas, G.R. No. 168557 (2007)]
Note: Vessels are considered as movables,
although they partake the nature of real
property, in view of its importance in the world
of commerce [Rubiso v. Rivera, G.R. No. L11407 (1917)]
d. Immovables by Analogy (Par. 10)
Contracts for public works, servitude, and
other real rights over immovable property
(e.g. usufruct of real property for a period of
one (1) year, and registered) [Art. 415(10),
Civil Code]
2. Personal or Movable [Arts. 416 and
417, Civil Code]
Classes of movable or personal property:
1. Property not included in Art. 415;
2. Real property considered personal property
by special provision of law;
3. Forces of nature;
4. In general, all movable things – three (3)
tests may be applied.
a. Whether
the
property
can
be
transported or carried from place to
place;
b. Whether such change of location can be
made without injuring the immovable
to which the object may be attached;
024435CIV
c. Whether the object does not fall within
any of the ten (10) cases enumerated in
Art. 415.
1.NOT THE LAST QUESTION, there
are special provisions in law that
classifies a property as movable
property.
● It is possible that there is an
amending law.
2.This test fails to consider par. 2 of
Art. 416.
5. Obligations and actions;
a. These are really personal rights, they
have a definite passive subject.
b. The word “property’’ in law, has
acquired a meaning which goes beyond
material objects and comprehends also
rights.
c. Includes the infinite variety of contracts,
promises, or obligations which confer on
one party the right to recover movable
property or a sum of money from
another by action.
d. Demandable sums - amounts are
liquidated or determined
6. Shares of stocks; and
a. They are personal property, and,
therefore, can be the subject matter of a
chattel mortgage. So are the certificates
themselves evidencing the ownership of
the shares.
b. The word “stock’’ means “participation’’
or “interest.’’
7. Other incorporeal personal property.
3. Importance and Significance of
Classification under the Civil Code
1. In the determination of the offenses
committed (e.g. Arts. 293, 308, and 312,
Revised Penal Code)
2. In the form of contracts
a. (e.g., REM, Antichresis, Pledge)
b. Donations of real property must be in a
public instrument to be valid [Art. 749,
Civil Code]. However, a donation of a
movable may be done orally or in
writing, unless the value of the movable
exceeds
five
thousand
pesos
(Php5,000) [Art. 748, Civil Code].
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3. For acquisitive prescription
4. Actions for recovery of possession
(discussed under Ownership)
5. Determination of proper venue of actions;
Real Actions v. Personal Actions [Secs. 12, Rule 4, Rules of Court]
6. Determination of governing law (Private
International law; Note: distinction is
unimportant for property situated in the
Philippines) [Art. 16, Civil Code]
7. For transactions involving real property, the
same must be recorded in the Registry of
Property to affect third persons
8. Preference of credits (Note: Only applicable
in insolvency proceedings [Art. 2242, Civil
Code]
9. Double Sales –
a. Immovables: the first one to register in
good faith the sale to him of immovable
property shall be the owner. If there is
no registration the first in good faith
possession shall be the owner. If there
is no registration and no possessor in
good faith, then the one with the oldest
title in good faith shall be the owner.
b. Movables: The first person who
takes possession in good faith shall
be the owner [Art. 1544, Civil Code].
10. Taxation – whether the property would
be subjected to real estate taxes
B. Based on Ownership/ RightsHolder
Property is either of:
1. Public dominion; or
2. Private ownership [Art. 419, Civil Code].
Note: Churches and other consecrated objects
are outside the commerce of man; they are
considered neither public nor private property
[Barlin v. Ramirez, G.R. No. L-2832 (1906)].
CIVIL LAW
3. It is not susceptible to prescription;
4. It cannot be leased, sold, or otherwise be
the object of a contract;
5. It is not subject to attachment and
execution; and
6. It cannot be burdened by any voluntary
easements [Alolino v. Flores, G.R. No.
198774 (2016)].
Public Dominion
As enumerated by Art. 420, Civil Code
Public Domain
All lands of the public domain, waters,
minerals, coal, petroleum, and other mineral
oils, all forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna,
and other natural resources are owned by
the State. With the exception of agricultural
lands all other natural resources shall not be
alienated [Sec. 2, Art. XII, 1987 Constitution]
Public Lands
Public Land Act, Sec. 2 provides that the
statute applies to lands of the public domain.
Classification Administered by the State
[Art. 420, Civil Code]
Three (3) kinds of property of public dominion –
[USD]
1. Property intended for public use
2. Property intended for some specific public
service
3. Property intended for the development of
the national welfare
2. Private Ownership
1. Patrimonial Property – Property owned by
the State and its political subdivisions in
1. Public Dominion
their private capacity, and all property of the
State not included in Art. 420 of the Civil
Property of public dominion is outside the
Code [Arts. 421-424, Civil Code]
commerce of man [Republic v. Pasig Rizal Co.,
2. Property belonging to private persons –
Inc., G.R. No. 213207 (2022)]. As such:
Personally or through predecessors -in1. It is not alienable or disposable;
interest,
openly,
continuously
and
2. It is not subject to registration under PD
exclusively
–
for
20
years
is
converted
to
1529 (Property Registration Decree) and
private
property
immediately
preceding
the
cannot be the subject of a Torrens title;
filing of the application for confirmation of
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title except when prevented by war or force
majeure [RA 11573].
Conversion
How is alienable Public Land converted to
private property through prescription?
1. Alienable public land (patrimonial
property only) held by a possessor –
Personally or through predecessors-ininterest,
openly,
continuously
and
exclusively – for 30 years is converted to
private property by the mere lapse or
completion of the period. The application for
confirmation is a mere formality because
land had already been converted, giving
rise to a registrable title [Director of Lands v.
IAC, G.R. No. 73002 (1986)].
2. Private land converted to property of
public dominion through abandonment
and reclamation – Through the gradual
encroachment or erosion by the ebb and
flow of the tide, private property may
become public if the owner appears to have
abandoned the land, and permitted it to be
totally eaten up by the sea so as to become
part of the shore. The land having
disappeared on account of the gradual
erosion in case of natural expropriation, and
having remained submerged until they were
reclaimed by the government, they are
public land [Government v. Cabangis, G.R.
No. L-28379 (1929)].
3. Based on Consumability
Only applies to movable property and is
determined by nature [Art. 418, Civil Code]
1. Consumable goods – movables which
cannot be used in a manner appropriate
without their being consumed.
2. Non-consumable goods – all those
excluded in the first category.
4.
Based
Substitution
on
Susceptibility
2. Non-fungibles
–
Those
specifically
determined and cannot be substituted by
others, such as lands, buildings, a horse,
etc. [Tolentino]. (Note: If the parties agreed
that the same thing be returned, it is not
fungible) [De Leon].
5. Hidden Treasures
Any hidden and unknown deposit of money,
jewelry or other precious objects, the lawful
ownership of which does not appear [Art. 439,
Civil Code].
General Rule: Hidden treasure belongs to the
owner of the land, building, or other property on
which it is found [Art. 438, Civil Code]
Exceptions [Art. 438, Civil Code]:
Finder of hidden treasure is entitled to one-half
(½) if:
1. Finding is by chance;
2. Finder is not co-owner of the property
where it is found;
3. Finder is not a trespasser;
4. Finder is not an agent of landowner; and
5. Finder is not the owner of the land, building,
or other property.
If the things found may be of interest to science
or the arts, the State has a right to acquire
them at their just price, which shall be divided
in conformity with the rule stated [Art. 438, Civil
Code].
For purposes of hidden treasure, a
usufructuary is considered a stranger to
property; a naked owner gets the owner’s
share [Art. 566, Civil Code].
6. Based on the Constitution
to
1.
2.
3.
4.
Public Agricultural Land;
Mineral Land;
Timber Land;
National Parks.
Only applies to movable property and is
determined by the intention of the parties.
1. Fungibles – Those which belong to a
common genus which includes several
species of the same kind, perfectly
permitting substitution of one by the others,
such as grain, wine, oil, etc. [Tolentino]
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II. BUNDLE OF RIGHTS
A. Ownership
1. Rights of an Owner
1. Right to enjoy and dispose of a thing,
without other limitations than those
established by law.
2. Right of action against the holder and
possessor of the thing in order to recover it.
3. Jus Utendi: right to use and enjoy
4. Jus Fruendi: right to receive the fruits
5. Jus Abutendi: right to consume a thing by
use
6. Jus Disponendi: right to alienate,
encumber, transform or even destroy the
thing owned
7. Jus Vindicandi: right to recover possession
of property based on a claim of ownership
8. Jus Possidendi: right to possess the
property (Implied from all the other rights)
9. Jus Accessionis: right to whatever is
attached to the thing in such a way that they
cannot be separated without injury
10. Jus Tresauris: right to hidden treasure
11. Right to Exclude; Doctrine of Self-Help [Art.
429, Civil Code]
12. Right to enclose or fence [Art. 430, Civil
Code]
13. Right to receive just compensation in case
of expropriation [Art. 435, Civil Code] but
not if the property is seized by competent
authority in the exercise of police power,
unless seizure is unjustified.
14. Right of ownership of land to its surface and
everything under it, except natural
resources - the owner may make any
works, plantations, and excavations subject
to servitudes and special laws and
ordinances and reasonable needs of aerial
navigation [Art. 437, Civil Code].
a. Actions to Recover Ownership and
Possession of Real Property and its
Distinctions
Accion Interdictal / Action for Ejectment
A summary action for recovery of actual,
material or de facto physical possession
through an action for forcible entry or unlawful
024438CIV
detainer. It must be filed in the MTC or MeTC
[Sec. 1, Rule 70, Rules of Court].
Forcible Entry
Unlawful Detainer
The possession was
already
unlawful
from the time of
entry.
The possession was
first
lawful,
but
became illegal. (e.g. a
lessee refuses to
vacate the property
after
the
lease
contract has expired)
Lawful possessor
deprived through
FISTS:
1. Force
2. Intimidation
3. Strategy
4. Threats, and
5. Stealth
Possessor refused to
vacate upon demand
by owner
Period to Bring
Action: 1 year from
dispossession
(force, intimidation,
threats) or from
knowledge
of
dispossession
(strategy, stealth)
Period
to
Bring
Action: 1 year from
last
demand
to
vacate.
Note:
Legal
possession
(by
permission
or
tolerance) becomes
unlawful upon failure
to vacate
Accion Publiciana
Accion publiciana, also known as accion
plenaria de posesion, is an ordinary civil
proceeding to determine the better right of
possession of realty independently of title. It
refers to an ejectment suit filed after the
expiration of one (1) year from the accrual of
the cause of action or from the unlawful
withholding of possession of the realty. The
objective of the plaintiffs in accion publiciana is
to recover possession only, not ownership.
However, where the parties raise the issue of
ownership, the courts may pass upon the issue
to determine who between or among the parties
has the right to possess the property.
Howeover, such adjudication is not conclusive
on the issue of ownership [Madrid v. Spouses
Mapoy, G.R. No. 150887 (2009)].
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Note: Actions for ejectment/accion interdictal
not filed within one (1) year must be filed as
accion publiciana.
Accion Reivindicatoria
Accion reivindicatoria seeks the recovery of
ownership and includes the jus utendi and the
jus fruendi brought in the proper RTC. Accion
reivindicatoria is an action whereby plaintiff
alleges ownership over a parcel of land and
seeks recovery of its full possession [Spouses
Cañezo v. Bautista, G.R. No. 170189 (2010)]. It
must be brought in the properRTC in an
ordinary civil proceeding [Heirs La Madrid v.
Tumaliuan, G.R. No. 243799 (2021)].
Requisites for Accion Reivindicatoria
1. The property must be identified; and
2. The plaintiff must rely on the strength of his
title (E incumbit probatio qui dicit, non qui
negat – “He who asserts, not he who
denies, must prove”) [Art. 434, Civil Code].
b. Actions to Recover Movable Property
Replevin
For manual delivery of movable property, for
either ownership or possession. The party
praying for the recovery of the possession may,
at the commencement of the action or at any
time before such action, apply for an order for
the delivery of such property to him [Sec. 1,
Rule 60, Rules of Court].
The applicant must show the following:
1. That the applicant is the owner of the
property claimed or that he is entitled to its
possession;
2. Particular description of the property
claimed;
3. That the property is wrongfully detained
by the adverse party, alleging the cause of
detention thereof to the best of his
knowledge, information, and belief;
4. That the property has not been distrained
or taken for tax assessment or a fine
pursuant to law, or seized under a writ of
execution or preliminary attachment, or
otherwise placed under custodia legis.
5. If the property is so seized, the applicant
must show that it is exempt from the
seizure; and
024439CIV
6. The actual market value of the property
[Sec. 2, Rule 60, Rules of Court].
2. Limitations on Ownership
a. General Limitations
1. Taxation
2. Eminent Domain
3. Police power
b. Specific Limitations
1. Legal servitudes - Once requisites are
satisfied, the servient owner may ask the
Court to declare the existence of an
easement (e.g. Easement of Right of Way,
Easement of Light and View etc.) [Arts.
2191, 677-679, 670, 644, 666, 684-687,
676, 649, 637, 652, Civil Code].
2. Must not injure the rights of a third
person (Sic Utere Tuo Ut Alienum Non
Laedas) [Art. 431, Civil Code]
3. Actions in a state of necessity - The
owner of a thing has no right to prohibit the
interference of another with the same, if the
interference is necessary to avert an
imminent danger and the threatened
damage, compared to the damage arising
to the owner from the interference, is much
greater. The owner may demand from the
person benefited, indemnity for the damage
to him [Art. 432, Civil Code].
4. Nuisance - A nuisance is any act, omission,
establishment, business, condition of
property, or anything else which:
a. injures or endangers the health or
safety of others;
b. annoys or offends the senses;
c. shocks, defies or disregards decency or
morality;
d. obstructs or interferes with the free
passage of any public highway or street,
or any body of water; or
e. hinders or impairs the use of property
[Art. 694, Civil Code].
5. Limitations imposed by the owner
himself (e.g. voluntary easements) are
valid, provided they are not contrary to law)
6. Limitations
imposed
by
the
party transmitting the property either by
the contract or will (e.g. onerous
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donations or easement constituted when
dividing one property)
2. For Immovables
a. Accession Discreta
B. Rights of Accession
The right to the ownership of the fruits produced
by one’s property.
1. General Principles
Jus possidendi vs. Jus possessionis:
● Jus possidendi (right to possession) – An
incident of ownership or a right included in
ownership.
● Jus possessionis (right of possession) – A
right independent from ownership.
Right of accession with respect to
immovable property:
● The landowner may not refuse both to pay
for the building and to sell the land and
instead seek to compel the owner of the
building to remove the building from the
land. He is entitled to such removal ONLY
when, after having chosen to sell the land,
the other party fails to pay for said land.
[Ignacio vs. Hilario, G.R. No. L-175 (1946)])
● Should no other arrangement be agreed
upon, the owner of the land does not
automatically become the owner of the
improvement. [Filipinas Colleges, Inc. vs.
Timbang, G.R. Nos. L-12812-13 (1959)]
● Art. 448 is not applicable where a person
constructs a house on his own land and
then sells the land, not the building.
[Coleongco vs. Regalado, G.R. No. L-4529
(1952)])
● Art. 448 does not apply to cases which are
governed by other provisions of law such as
co-ownership, usufruct, agency, lease.
● The provision on indemnity in Art. 448 may
be applied by analogy considering that the
primary intent of the law is to avoid a state
of forced co-ownership especially where the
parties in the main agree that Arts. 448 and
546 are applicable and indemnity for the
improvements may be paid although they
differ as to the basis of the indemnity.
[Pecson vs. CA, G.R. No. 115814 (1995))].
Right of accession with respect to movable
property:
● Accession exists only if separation is not
feasible. Otherwise, separation may be
demanded.
024440CIV
General Rule: The right of the owner to the
products of his property or to the fruits of the
same regardless if it is natural, industrial or civil
fruits.
Exceptions:
1. In usufruct: The usufructuary is entitled not
only to the enjoyment of the property
subject matter thereof but also to its fruits
2. In lease of rural lands: The lessee is entitled
to the natural and industrial fruits of the
thing leased while the lessor is entitled to
civil fruits in the form of the rent paid by the
lessee.
3. In antichresis: The creditor acquires the
right to receive the fruits of an immovable
loan from his debtor, with the obligation to
apply them to the payment of the interest, if
owing, and thereafter to the principal of his
credit.
4. In possession in good faith: A possessor in
good faith is entitled to the fruits received by
him before his possession is legally
interrupted.
5. Fruits naturally falling: Fruits naturally falling
upon adjacent land belong to the owner of
the said land and not to the owner of the
tree.
Kinds of Fruits [NIC]:
Natural
Fruits
Spontaneous products of the soil
that
appear
without
the
intervention of human labor, and
the young and other products of
animals.
REQUIREMENT: It is necessary
that there must be no human
labor which has intervened in its
generation.
About the young and the animal
products – If there is no
stipulation as to who is the owner
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of the young, “the young belongs
to the owner of the female
parent.”
Industrial
Fruits
Those produced by lands of any
kind through cultivation and
labor.
REQUIREMENT:
from the soil.
Civil
Fruits
Must
come
Rents of buildings, price of
leases of lands, and other
property and the amount of
perpetual or life annuities or other
similar income [Art. 442(3), Civil
Code]
Principles
Applicable
to
Accession
Discreta:
1. Time of accrual depending on kind:
a. Annuals: from the time seedlings
appear on the ground.
b. Perennials: from the time fruits actually
appear on the plants.
c. Young of animals: from the time they
are in the womb, although unborn –
beginning of maximum ordinary period
of gestation.
d. Fowls: from the time of incubation.
2. Pay expenses to third person possessor
in good faith - He who receives the fruits
has the obligation to pay the expenses
incurred by a third person in the production,
gathering and preservation of the fruits [Art.
443, Civil Code].
a. Exception: Owner does not have to
pay if land is recovered before gathering
from a possessor in bad faith.
Note: But if the owner recovers land from
possessor in bad faith, he may choose to
acquire the land and he can make the
possessor, builder, planter, sower account for
the fruits that have been gathered, with the
obligation to deduct the expenses for producing,
harvesting and preservation of the fruits.
b. Accession Continua
The right of the owner to anything which is
incorporated or attached to his property,
024441CIV
whether the attachment is by reason of natural
or artificial causes.
Artificially or Industrially Incorporated [Arts.
455-456, Civil Code]
Building, planting, or sowing on land owned by
another.
General Rule: Whatever is built, planted, or
sown on the land of another and the
improvements or repairs made thereon,
belong to the owner of the land, subject to the
provisions of the Code with regard to a builder,
planter, and sower in bad faith [Art. 445, Civil
Code].
Presumptions:
1. All works, sowing and planting are
presumed made by the owner and at his
expense, unless the contrary is proved [Art.
446, Civil Code].
2. The party in bad faith is always liable for
damages [Art. 447, Civil Code].
3. When both parties are in bad faith, they are
considered to be in good faith [Art. 453, Civil
Code].
4. The owner of the principal thing owns the
natural, industrial and civil fruits, except
when the following persons exist:
a. Possessor in Good Faith [Art. 544, Civil
Code]
b. Usufructuary [Art. 566, Civil Code]
c. Lessee [Art. 1680, Civil Code]
d. Antichretic creditor [Art. 2132, Civil
Code]
Good Faith
1. On the part of the builder
a. asserts title to the land on which he
builds, i.e., that he be a possessor in the
concept of owner; and
b. is unaware that there exists in his title or
mode of acquisition any flaw which
invalidates
it
[Princess
Rachel
Development Corporation v. Hillview
Marketing Corporation, G.R. No. 222482
(2020)].
2. On the part of the landowner
a. He did not know or was not aware that
something was being built, planted or
down on his land; he learned of it only
after the act was done.
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Bad Faith
1. On the part of the landowner: If the
building, planting, or sowing was done with
his knowledge and without opposition on
his part [Art. 453(2), Civil Code].
2. On the part of the owner of materials: If
the materials were used with his knowledge
and without opposition on his part [De
Leon].
3. On the part of the builder, planter, and
sower (BPS): One who has knowledge of
any flaw or defect in his title or mode if
acquisition [Art. 526, Civil Code]
1. He does not have title to the land (and this
does not have the right to build thereon); or
2. He has no permission to build, plant, or sow
on the land which he possesses but does
not own.
Note: Bad faith leads to liability for damages
and the loss of the works or the improvement
without right to indemnity [Art. 449, Civil Code].
If both parties are in bad faith, then treat them
as if they are both in good faith [Art. 453(1),
CivilCode].
He is a possessor in bad faith at the time he
build, planted, or sowed he knew that:
TABLE 1: RULE IF THE PLANTER AND OWNER OF THE LAND ARE DIFFERENT
Gathered Fruits
Planter in Good Faith
Planter in Bad Faith
Planter
Keeps fruits before possession is legally
interrupted [Art. 544 par.1, NCC]
Reimbursed for expenses for production,
gathering, and preservation [Art. 443, NCC]
Landowner
No necessity to reimburse the planter of
expenses since the planter retains the fruits
[Art. 544 par. 1, NCC]
Owns fruits provided he pays planter
expenses for production, gather and
preservation [Art. 443, NCC]
Standing Crops
Planter
Planters in Good Faith
Planter in Bad Faith
Reimbursed for expenses, for production,
gathering and preservation [Art. 443, NCC]
Loses what is built, planted or sown without
right to indemnity [Art. 449, NCC]
Entitled to reimbursement for the necessary
expenses of preservation of the land [Art.
452, NCC]
Landowner
Owns fruits provided he pays planter expenses
for production, gather and preservation [Art.
443, NCC]
Owns fruits [Art. 449, NCC]
TABLE 2: RULE WHEN THE LAND OWNER IS THE BUILDER, PLANTER OR SOWER
Landowner and Builder, Planter or Sower
Owner of Materials
Good Faith
Acquire building etc. after paying indemnity for value of
materials [Art. 447, NCC]
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1.
2.
Receiving indemnity for value of materials; or
Remove materials if without injury to works,
plantings or constructions [Art. 447, NCC]
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TABLE 2: RULE WHEN THE LAND OWNER IS THE BUILDER, PLANTER OR SOWER
1.
2.
Landowner and Builder, Planter or Sower
Owner of Materials
Bad Faith
Good Faith
Acquire building etc. after paying value of
materials; and
Indemnity for damages, subject to the right of the
owner of materials to remove [Art. 447, NCC]
1.
2.
Be indemnified for value of materials and damages;
or
Remove materials, with or without injury and be
indemnified for damages [Art. 447, NCC]
Good Faith
1.
2.
Bad Faith
Acquire without paying indemnity and right to
damages [Arts. 445 and 449, NCC]
Pay necessary expenses for preservation [Arts.
452 and 546, NCC]
1.
2.
Lose materials without being indemnified and pay
damages [Arts. 445 and 449, NCC]
Recover necessary expenses for preservation of
land without the right to retain the thing until the
indemnity is paid [Arts. 452 and 546, NCC]
Bad Faith
As though both acted in good faith (in pari delicto) [Art. 453, NCC]
TABLE 3: RULE WHEN THE LAND OWNER IS NOT THE BUILDER, PLANTER OR SOWER
Landowner
Builder, Planter, Sower and Owner of Materials
Good Faith
He can either [Art. 448, NCC]:
1. Acquire improvements after paying indemnity for:
2. Necessary expenses; and
3. Useful expenses which could either be:
1.
Original costs of improvements; or
2.
Increase in the value of the whole [Arts. 443
and 546, NCC]
4. Sell the land to builder or planter or collect rent
from sower unless the value of the land is
considerably greater than the building etc., in
which case, the builder and planter shall pay rent.
5. The parties shall agree upon the terms of the
lease and in case of disagreement, the court shall
fix the terms thereof.
If the landowner:
1. Acquire the improvements after paying indemnity,
builder, planter and sower has the right to retain the
thing (and cannot be required to pay rent) until
indemnity is paid) [Art. 546, NCC]
If the useful improvements can be removed without
damage to the principal thing, the Builder, Planter or
Sower may remove them, unless the person who
recovers the possession exercises the other [Arts.
547 and 447, NCC)
2.
Sell the land, Builder or Planter cannot be obliged to
buy the land if its value is considerably more than
that of the building or trees.
In such a case, he shall pay reasonable rent.
The parties shall agree upon the terms of the lease
and in case of disagreement, the court shall fix the
terms thereof [Art.448, NCC]
Good Faith
1.
024443CIV
The landowner can either:
a. Acquire
improvements
without
paying
indemnity and collect damages [Arts. 445,
449 and 451, NCC];
b. Order the demolition of work or restoration to
former condition and collect damages in both
cases [Art. 450, NCC]; or
Bad Faith
1.
2.
3.
Lose improvements
without the right to be
indemnified unless the latter sells the land [Art. 449,
NCC]
Recover necessary expenses for preservation of
land without the right to retain the thing until the
indemnity is paid [Arts. 452 and 546, NCC]
Pay damages to the land owner [Art. 451, NCC]
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TABLE 3: RULE WHEN THE LAND OWNER IS NOT THE BUILDER, PLANTER OR SOWER
Landowner
Builder, Planter, Sower and Owner of Materials
c.
2.
Sell the land to builder and planter or rent it to
the sower, and collect damages in both cases
[Art. 450, NCC]
Pay necessary expenses for preservation [Arts.
452, 546, NCC]
Bad Faith
Good Faith
Acquires improvements after paying indemnity and
damages to builder, planter, sower, unless the latter
decides to remove [Arts. 454 and 447, NCC]
1.
2.
Receive indemnity for improvements and receive
damages; or
Remove them in any event and receive damages
[Arts. 454 and 447, NCC]
He cannot compel the builder, planter or sower to buy
the land.
The reason why said article [Art. 447, NCC] applies
may be explained as follows:
● That if the land owner knew that something was
being built, planted or down on his land by another
and he did not interpose any objection thereto, it is
as if he was the one building, planting or sowing in
bad faith on his own land with materials belonging
to another, using the owner of the materials as his
worker (Rabuya, 2008)
Bad Faith
As though both acted in good faith (in pari delicto) [Art. 453, NCC]
TABLE 4: RULE WHEN THE LANDOWER, BUILDER, PLANTER, SOWER AND OWNER OF MATERIALS ARE
DIFFERENT PERSONS
Landowner
Builder, Planter, Sower
Owner of Materials
Good Faith
He shall answer subsidiarily for their
value and only in the event that the
one who made use of them has no
property with which to pay [Art. 455,
NCC]
Pay value of materials to its owner
without paying damages [Art. 455,
NCC]
1.
and
2.
and
If the landowner:
1. Acquires the improvement,
Builder, Planter, or Sower may
demand from the landowner
the value of the materials and
labor [Art. 455, NCC]
He can either [Art. 448, NCC[:
1. Acquire improvements after
paying indemnity for:
a. Necessary expenses; and
b. Useful expenses which
could either be:(1) Original
costs of improvements; or
(2) Increase in the value of
the whole [Arts. 546 and
443, NCC]
1. Sell the land to builder and
planter or collect rent from
024444CIV
Collect value of materials
primarily from builder, planter,
sower,
subsidiarily
from
landowner [Art. 455, NCC]; or
Remove the materials only if
without injury to the work
constructed, or without the
plantings,
constructions
or
works being destroyed
[Art.
447, NCC]
And he has the right to retain
the thing (and cannot be
required to pay rent) until
indemnity is paid [Art.546,
NCC]
If the useful improvements can
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TABLE 4: RULE WHEN THE LANDOWER, BUILDER, PLANTER, SOWER AND OWNER OF MATERIALS ARE
DIFFERENT PERSONS
Landowner
Builder, Planter, Sower
sower unless the value of the
land is considerably greater
than the building etc., in which
case, the builder and planter
shall pay rent.
The parties shall agree upon the
terms of the lease and in case
of disagreement, the court shall
fix the terms thereof
Owner of Materials
be removed without damage to
the
principal
thing,
the
possessor in good faith may
remove them, unless the
person who recovers the
possession exercises the other
[Arts. 547 and 447, NCC]
2.
Sell the land or rent it, Builder
or Planter cannot be obliged to
buy the land if its value is
considerably more than that of
the building or trees.
In such a case, he shall pay
reasonable rent.
The parties shall agree upon
the terms of the lease and in
case of disagreement, the
court shall fix the terms thereof
[Art. 448, NCC]
Good Faith
Good Faith
Landowners can either [Art. 448,
NCC]:
1. Acquire improvements after
paying indemnity for:
a. Necessary expenses; and
b. Useful expenses which
could either be: (1) Original
costs of improvements; or
(2) Increase in the value of
the whole [Arts. 546 and
443, NCC]
If the landowner:
1. Acquires the improvement,
Builder, Planter, or Sower has
the right to retain the thing
(and cannot be required to pay
rent) until indemnity is paid
[Art. 546, NCC]
1.
Sell the land to builder and
planter or collect rent from
sower unless the value of the
land is considerably greater
than the building etc., in which
case, the builder and planter
shall pay rent.
The parties shall agree upon the
terms of the lease and in case
of disagreement, the court shall
fix the terms thereof.
Without subsidiary liability for
cost of materials.
024445CIV
Bad Faith
If the useful improvements can
be removed without damage to
the
principal
thing,
the
possessor in good faith may
remove them, unless the
person who recovers the
possession
exercises
the
other; or
2.
Sell or rent it, Builder
Planter cannot be obliged
buy the land if its value
considerably more than that
the building or trees.
1.
2.
Loses materials without right to
indemnity [Art. 449, NCC]; and
Pay damages [Art. 451, NCC]
The builder, planter or sower would
be considered merely an agent of
the owner of materials.
Therefore, the provisions of Art. 449
of the Civil Code will apply by
analogy. He is even liable for
damages (Rabuya, 2008)
or
to
is
of
In such a case, he shall pay
reasonable rent.
The parties shall agree upon
the terms of the lease and in
case of disagreement, the
court shall fix the terms thereof
[Art. 448, NCC]
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TABLE 4: RULE WHEN THE LANDOWER, BUILDER, PLANTER, SOWER AND OWNER OF MATERIALS ARE
DIFFERENT PERSONS
Landowner
Builder, Planter, Sower
Owner of Materials
Without indemnity to the owner
of materials and collects
damages from him.
Good Faith
1.
2.
3.
4.
Bad Faith
Option to:
a. Acquire
improvements
without paying indemnity
and collect damages [Arts.
445 and 449, NCC];
b. Order the demolition of
work or restoration to
former condition and collect
damages in both cases [Art.
450, NCC]; or
c. Sell the land to builder and
planter or rent it to the
sower, and collect damages
in both cases [Art. 450,
NCC]
Has the right to demand
damages from both [Art. 451,
NCC]
Pay necessary expenses for
preservation [Arts. 452 and 546,
NCC]
Not subsidiarily liable to the
owner of the materials because
as to him, the two acted in bad
faith (De Leon, 2006)
1.
2.
3.
4.
Lose improvements without the
right to be indemnified unless
the landowner sells the land
[Art. 449, NCC]
Recover necessary expenses
for preservation of land without
the right to retain the thing until
the indemnity is paid (Articles
452 and 546, NCC)
Pay the value of the materials
to the owner of the materials.;
and
Pay damages to the landowner
[Art. 451, NCC]
Bad Faith
1.
Recover value from Builder,
Planter, Sower (in pari delicto)
If Builder, Planter, Sower
acquired improvements, remove
the materials only if without
injury to the work constructed,
or
without
the
plantings,
constructions or works being
destroyed [Art. 447, NCC]
No action against land owner;
and
May be liable to the land owner
for damages [Art. 451, NCC]
2.
3.
4.
Bad Faith
As though both acted in good faith (in pari delicto) [Art. 453, NCC]
Bad Faith
1.
2.
Good Faith
Acquires improvements after
paying indemnity and damages,
unless the latter decides to
remove [Arts. 454, 447 and 443,
NCC]; and
Cannot compel builder, planter
and sower to buy land.
If he pays the owner of the
materials, plants or seeds:
1. He may demand from the
landowner the value of the
materials and labor [Art. 455,
NCC] and shall also be obliged
to the reparation of damages
[Art. 447, NCC]; or
2. Remove the materials in any
event, with a right to be
indemnified for damages [Arts.
454 and 447, NCC]
Bad Faith
Bad Faith
The owner of the land shall answer
subsidiarily for their value and only
in the event that the one who made
Pay value of materials to its owner
[Art. 455, NCC]
024446CIV
Good Faith
1.
2.
Collect value of materials
primarily from builder, planter,
sower, subsidiarily from land
owner [Art. 455, NCC]; or
Remove the materials in any
event, with a right to be
indemnified for damages [Art.
447, NCC]
Good Faith
1.
Collect value of materials
primarily from builder, planter,
sower, subsidiarily from land
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TABLE 4: RULE WHEN THE LANDOWER, BUILDER, PLANTER, SOWER AND OWNER OF MATERIALS ARE
DIFFERENT PERSONS
Landowner
Builder, Planter, Sower
use of them has no property with
which to pay [Art. 455, NCC]
If the landowner:
1. Acquires the improvement,
Builder, Planter, or Sower may
demand from the landowner
the value of the materials and
labor [Art. 455, NCC]
And he has the right to retain
the thing (and cannot be
required to pay rent) until
indemnity is paid [Art. 546,
NCC]
and
Landowner can either [Article 448,
NCC]:
1. Acquire
2.
improvements after
paying indemnity for:
a. Necessary expenses; and
b. Useful expenses which
could either be:(1) Original
costs of improvements; or
(2) Increase in the value of
the whole [Arts. 546 and
443, NCC]
Sell the land to builder and
planter or collect rent from
sower unless the value of the
land is considerably greater
than the building etc., in which
case, the builder and planter
shall pay rent.
The parties shall agree upon the
terms of the lease and in case
of disagreement, the court shall
fix the terms thereof.
Without subsidiary liability for
cost of materials.
2.
Owner of Materials
2.
owner [Art. 455, NCC]; or
Remove the materials in any
event, with a right to be
indemnified for damages [Art.
447, NCC]
If the useful improvements can
be removed without damage to
the
principal
thing,
the
possessor in good faith may
remove them, unless the
person who recovers the
possession exercises option 2
[Arts. 547 and 447, NCC];
Sell or rent it, Builder
Planter cannot be obliged
buy the land if its value
considerably more than that
the building or trees.
or
to
is
of
In such a case, he shall pay
reasonable rent.
The parties shall agree upon
the terms of the lease and in
case of disagreement, the
court shall fix the terms thereof
[Art. 448, NCC]
3. Case where LO, BPS, and OM are
different persons [Art. 455, Civil
Code]
Note: If there are three (3) parties in BPS,
solve the problem by considering the options
open to the landowner vis-à-vis BPS
depending on their good faith or bad faith;
apply Art. 455 on one who acted in good faith.
Art. 455 shall not apply if the owner makes
use of the right granted by Art. 450.
Primarily, from the BPS. If the BPS be
insolvent, then the LO shall be
subsidiarily liable to the OM [Art. 455(1),
Civil Code]. However, this is not
applicable if the owner makes use of the
right granted under Art. 450 [Art. 455(2),
Civil Code].
Requisites for the LO’s subsidiary
Liability [Art. 455, Civil Code]
a. The OM acted in GF;
b. BPS is insolvent; and
c. The LO appropriates the accession to
himself.
General Rules:
1. OM in GF is entitled to reimbursement for
2. The BPS who has paid the OM may seek
the value of the materials used
reimbursement from the LO (value of
(regardless of the GF or BF of the LO
and/or the BPS).
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materials + labor) [Art. 455(2), Civil
Code].
during the year, i.e. higher than the riverbank
[Meneses v. CA, G.R. No. 82220 (1995)].
Requisites:
a. The BPS acted in GF; and
b. The LO appropriates the improvement
to himself.
Effect: Accretions which the banks of rivers
may gradually receive from the effect of the
current become the property of the owners of
the banks. It is likewise settled that "an
accretion does not automatically become
registered land just because the lot that
receives such accretion is covered by a
Torrens Title. Ownership of a piece of land is
one thing; registration under the Torrens
system of that ownership is another” [Republic
v. Tongson, Sr., G.R. No. 233304 (2020)].
3. If only the OM is in BF, he loses his
materials, as well as his right to
indemnity. He also becomes liable for
damages [Arts. 449, 451, Civil Code].
4. If only the BPS acted in BF, he
becomes liable to the OM for the value of
the materials plus damages. Should he
become insolvent, the LO shall pay for
the value of the materials but he will not
be liable for damages. Additionally, he
shall still be liable to the LO [Arts. 450451, Civil Code].
5. If only the LO acted in GF, he can
exercise any of his options under Arts.
449 and 450, both having an additional
right to ask for damages [Art. 451, Civil
Code]. He shall also not be subsidiarily
liable to the OM.
6. If ALL acted in BF, they shall be treated
as though all of them acted in GF [Art.
453, Civil Code]
a. Naturally Incorporated [Arts. 457465, Civil Code]
1. Alluvium [Art. 457, Civil Code]
The soil deposited on the estate fronting the
river bank.
Requisites [GCA]:
1. Deposit of soil or sediment is Gradual and
imperceptible;
2. A result of the action of the Currents of
the waters of the river and should have no
human intervention; and
3. Land where the accretion takes place is
Adjacent to the banks of the rivers
(Riparian Land) [Daclison v. Baytion,
G.R. No. 219811 (2016)].
Note: When deemed to exist: When the
deposit of the sediment has reached a level
higher than the highest level of the water
024448CIV
Rationale: To compensate the owners of the
land from forces of nature and to encourage
riparian owners to cultivate and enrich the
land.
What is not considered alluvium [Art. 458,
Civil Code]:
1. Deposits due to human action or
intervention
2. Deposits due to abrupt or unanticipated
flooding brought about by extreme
weather conditions
3. When the sea moved towards the estate
and the tide invaded it, the invaded
property became foreshore land and
passed to the realm of the public domain
[Baguio v. Heirs of Abello, G.R. Nos.
192956 & 193032 (2019), citing Republic
v. Court of Appeals, G.R. No. 100709
(1997)].
2. Avulsion [Art. 459, Civil Code]
A known portion of land is segregated from
one estate by the forceful current of a river,
creek, or torrent and transferred to another.
Requisites [RCI-AI]:
1. The segregation and transfer is caused by
the Current of a River, creek, or Torrent;
2. The segregation and transfer must be
sudden or Abrupt; and
3. The portion of land transported must be
known or Identifiable.
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Difference between Alluvion and Avulsion:
Alluvion
Avulsion
Deposit of soil is
gradual.
Sudden and abrupt
The deposit of soil
belongs
to
the
owner
of
the
property where the
same
was
deposited.
The owner of the
property from which a
part was detached
retains the ownership.
Accession
takes
place immediately
upon the deposit of
the soil.
The right accession
takes
place
only
AFTER TWO (2)
YEARS from the
attachment
or
incorporation of the
segregated portion of
land to the riparian
land and only if its
owner fails to remove
the same within said
period
The soil cannot be The detached portion
identified.
can be identified.
3. Uprooted Trees [Art. 460, Civil Code]
In case of uprooted trees, the owner retains
ownership if he makes a claim within six (6)
months. This refers only to uprooted trees and
does not include trees which remain planted
on a known portion of land carried by the force
of the waters. In this latter case, the trees are
regarded as accessions of the land through
gradual changes in the course of adjoining
streams [Payatas v. Tuazon, G.R. No. 30067
(1929)].
4. Change of Course of River [Arts. 461462, Civil Code]
3. Such change is sudden or abrupt; and
4. Change is permanent.
Effects:
Owners whose lands are occupied by the new
course of the river automatically (ipso facto)
become owners of the old bed, in proportion
to the area they lost [Art. 461, Civil Code].
Owners of the lands adjoining the old bed are
given the right to acquire the same by paying
the value of the land, not exceeding the value
of the land invaded by the new bed (the old
property of the owner) [Art. 461, Civil Code].
Note:
1. Where the river simply dries up, the
abandoned riverbed belongs to the State
as property of the public dominion [Art.
502, Civil Code].
2. Sec. 58 of the Water Code (PD 1067)
provides that when a river or stream
suddenly changes its course to traverse
private lands, the owners of the affected
lands may not compel the government to
restore the river to its former river bed,
nor can they restrain the government from
taking steps to revert the river or stream
to its former course. The owners of the
land thus affected are not entitled to
compensation
for
any
damage
sustained thereby. However, the former
owners of the new bed shall be the
owners of the abandoned bed in
proportion to the area lost by it.
5. Division of River into Branches [Art.
463 Civil Code]
Three (3) kinds of islands:
1. Island formed under Art. 463 – The
current of a river simply divides itself into
branches, leaving a piece of land or part
thereof isolated, thereby forming an
island. Since the land has not been
permanently invaded by the waters of the
river, no natural expropriation will occur.
2. Island formed under Art. 464 – An island
is formed on a sea, lake or navigable or
floatable river through whatever cause.
a. Clearly speaks of an addition to the
property of the State since the island
thus formed is expressly declared to
be property of the latter.
Requisites:
1. Change in the natural course of the waters
of the river;
2. Such change causes the abandonment of
the riverbeds; Note: “Natural Bed”: ground
covered by its waters during the highest
floods [Binalay v. Manalo, G.R. No. 92161
(1991)].
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3. Island formed under Art. 465 – An island
formed in non-navigable or non-floatable
rivers through successive accumulation of
deposits in the same manner as alluvion.
a. Formed in a navigable or floatable
river → Art. 464, NCC applies here.
b. Formed through a sudden and abrupt
process due to segregation of
identifiable portions of land from an
estate → Art. 463, NCC applies here.
Requisites:
1. It shall belong to the owner of the margins
or banks nearest to the island;
2. If the island is in the middle of the river,
the same shall be owned by the owners of
both margins, which case it shall be
divided longitudinally in halves; or
3. If the island is more distant from one
margin than from the other, the owner of
the nearer margin shall be the sole owner.
Rationale: The owners of the bank nearer the
islands are in the best position to cultivate and
attend to the exploitation of the same.
2. A portion of land is separated from the
estate by the current [Art. 463, Civil Code];
and
3. The island is formed in a place not
mentioned in Art. 464.
They Belong to the Owners of the Nearest
Margins or Banks if it is Formed [Art. 465,
Civil Code]:
1. through successive accumulation of
alluvial deposits; and
2. on non-navigable and non-floatable rivers.
Note: If the island is in the middle of the river,
divide longitudinally in half. If it is nearer to
one margin or bank, to the nearer riparian
owner [Art. 465, Civil Code].
Note: If a landowner allows the sea or a lake
to eat up his land completely, it is a case of
natural expropriation and if the land later
reappears, he does not regain ownership
thereof [Republic v. Cabangis, G.R. No. L28379 (1929)].
4. For Movables
6. Formation of Islands [Arts. 464- 465,
Civil Code]
They belong to the State if [Art. 464, Civil
Code]:
1. Formed on the seas within the jurisdiction
of the Philippines;
2. Formed on lakes; or
3. Formed on navigable or floatable rivers:
a. Capable of affording a channel or
passage for ships and vessels;
b. Must be sufficient not only to float
bancas and light boats, but also bigger
watercraft;
c. Deep enough to allow unobstructed
movements of ships and vessels.
Test of whether a river is navigable:
Whether it can be used as a highway of
commerce, trade and travel [De Leon].
They belong to the private owner of the
separated land if:
1. The current of a river divides itself into
branches, leaving a piece of land or part
thereof isolated;
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a. Conjunction/Adjunction [Arts. 466471, Civil Code]
Definition: Union, without bad faith, of two (2)
movable things belonging to different owners
in such a way that they form a single object.
The owner of the principal thing acquires the
accessory after indemnifying the owner of the
latter for its value [Art. 466, Civil Code].
General Rule: When the things united can be
separated without injury, their respective
owners may demand their separation [Art.
469(1), Civil Code].
Exception: The owner of the accessory may
demand the separation of the things united
even if there will be injury if the accessory is
more precious than the principal thing [Art.
467 and 469(2), Civil Code].
Note: Under Art. 469(2), an accessory is the
thing united with the principal for the latter’s
use, embellishment, or perfection.
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Adjunction – The union of two (2) movable
things belonging to different owners in such a
way that they form a single object, but each
of the component things preserves its
value [De Leon].
2. They are united in such a way that they
form a single object; and
3. They are so inseparable that their
separation would impair their nature or
result in substantial injury to the other
component.
Requisites:
1. There are two (2) movables belonging to
different owners;
Ownership of New Object Formed by Adjunction –
Owner of Principal Object in Good Faith
Owner of Principal Object in Bad Faith
Acquires the thing with the duty to indemnify the owner of
the accessory [Art. 466, Civil Code]
The owner of the accessory has the right to choose
between:
1. receiving payment from the owner
of
the principal (value of the accessory; or
2. the accessory be separated even if it
necessary
to destroy the principal.
would
be
There is indemnity for damages in either case [Art.
470(2), Civil Code].
Owner of Accessory in Good Faith
Has a right to demand separation even though there may
be damage if the accessory is more valuable
Both are in Bad Faith
By analogy, they are treated as if they were both in good
faith [Art. 453,
Civil Code by analogy]
Either of the Owners made the Incorporation with
the Knowledge and Without Objection of the Other
Treat owners as if both acted in good faith [Art. 470(3),
Civil Code]
Rules in Determination of the Principal
Thing [Art. 467-468, Civil Code]
1. That which the other has been united
as an ornament or for its use or
perfection
2. If it cannot be determined by applying
#1, the one with the greater value
3. If the values are equal, the one with
greater volume
4. The thing of greater merits, taking into
consideration all the pertinent legal
provisions, as well as the comparative
merits, utility and volume of their
respective things [Manresa].
Note: In painting and sculpture, writings,
printed matter, engraving and lithographs, the
board, metal, stone, canvas, paper or
parchment shall be deemed the accessory
thing [Art. 468(2), Civil Code].
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When Separation is Allowed [Art. 469, Civil
Code]
1. When separation will not cause any
injury, the respective owners can
demand separation; or
2. When the accessory is more precious
than the principal thing, the owner of
the
accessory
may
demand
separation, even though the principal
thing may suffer.
Note: Owner who caused the union shall
bear the expenses for separation even if
he acted in good faith.
b. Commixtion/ Confusion [Arts. 472473, 475, Civil Code]
Definitions:
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1. Mixture
–
Two or more things belonging to
different owners are combined with the
respective identities of the component
parts destroyed or lost.
2. Commixtion – Mixture of solid things.
3. Confusion – Mixture of liquid things [De
Leon].
Rules [Arts. 472-473, Civil Code]
1. Co-ownership based on proportional
value if caused by:
a. the will of the parties;
b. chance, and injury will result if things
are separated; or
c. will of only one owner, but in good
faith.
2. If caused by the will of one party in bad
faith:
a. He forfeits the thing belonging to him
b. He must pay damages
3. If the mixture is made with the
knowledge,
but
without
the
objection,
of
the other owner the parties will be
considered as if they acted in good faith
Legal effects:
[Art. 470, Civil Code by analogy; De
Leon].
Note: Good faith in accession does not
necessarily exclude negligence, which give
s rise to damages [Art. 456, Civil Code by
analogy].
c. Specification [Arts. 474-475, Civil
Code]
Definition: Takes place when the work of a
person is done on the material of another, and
such material, in consequence of the work
itself, undergoes a transformation [De Leon,
citing Manresa].
It is the transformation of another’s material by
the application of labor, into a thing of a
different kind.
Example: Turning grapes into wine, flour into
bread [De Leon].
Worker/maker in good GENERAL RULE: The worker in good faith who employs the material of
faith [Art. 474, Civil
another to make a thing of a different kind appropriates the thing thus
Code]
transformed after indemnifying the owner of the materials for the value
of the material [Art. 474(1), Civil Code].
EXCEPTION: If the material is more value or more precious than the
new thing, the owner of the material may:
1. Appropriate the new thing to himself after paying indemnity for the of
the work; or
2. Demand indemnity for the material [Art. 474(2), Civil Code]
If the owner of the 1. Appropriate the new thing without paying the owner of the material;
material was in bad
faith, the maker in 2. Require the owner to pay him the value of the thing, his work, or
good faith may:
labor, with damages [Applying Art. 470(2), Civil Code by analogy; De
Leon]
Worker/maker in bad
faith [Art. 474(3), Civil
Code]
If the maker was in bad faith, but the owner of the materials was in good
faith, the owner may:
1. Appropriate the work to himself without paying the maker.
Exception: if the value of the work, for artistic or scientific reasons, is
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considerably
more
than
that
material [in this case, only option 2 is available]; or
of
the
Demand the maker to indemnify him for the value of the material and
damages.
Worker/maker made Rights shall be determined as though both acted in good faith [Art.
use of material with 474(1), Civil Code].
consent and without
objection of owner
Note:
For
the
right
of
accession
with
regards
to
moveable property, sentimental value is duly appreciated [Art. 475,
Civil Code].
C.
Actions
to
Recover
Ownership and Possession of
Property
1. Accion Reivindicatoria
Accion reivindicatoria seeks the recovery of
ownership and includes the jus utendi and the
jus fruendi brought in the proper regional trial
court. Accion reivindicatoria is an action
whereby plaintiff alleges ownership over a
parcel of land and seeks recovery of its full
possession [Spouses Cañezo v. Bautista,
G.R. No. 170189 (2010)]. It must be brought
in the proper regional trial court in an ordinary
civil proceeding [Heirs La Madrid v.
Tumaliuan, G.R. No. 243799 (2021)].
Requisites for Accion Reivindicatoria
1. The property must be identified; and
2. The plaintiff must rely on the strength of
his title (E incumbit probatio qui dicit, non
qui negat – “He who asserts, not he who
denies, must prove”) [Art. 434, Civil Code].
2. Accion Publiciana
However, where the parties raise the issue of
ownership, the courts may pass upon the
issue to determine who between or among the
parties has the right to possess the property
[Madrid v. Spouses Mapoy, G.R. No. 150887
(2009)].
Note: Actions for ejectment/accion interdictal
not filed within one year must be filed as
accion publiciana.
3. Accion Interdictal
Accion Interdictal / Action for Ejectment
A summary action for recovery of actual,
material or de facto physical possession
through an action for forcible entry or unlawful
detainer. It must be filed in the MTC or MeTC
[Sec. 1, Rule 70, Rules of Court].
Forcible Entry
The possession
was already
unlawful from the
time of entry.
Accion publiciana, also known as accion
plenaria de posesion, is an ordinary civil
proceeding to determine the better right of
possession of realty independently of title.
It refers to an ejectment suit filed after the
expiration of one year from the accrual of the
cause of action or from the unlawful
withholding of possession of the realty. The
objective of the plaintiffs in accion publiciana
is to recover possession only, not ownership.
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Unlawful Detainer
The possession was
first lawful, but
became illegal. (e.g. a
lessee refuses to
vacate the property
after the lease
contract has expired)
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Forcible Entry
Unlawful Detainer
Lawful possessor
deprived through
FISTS:
1. Force
2. Intimidation
3. Strategy
4. Threats, and
5. Stealth
Possessor refused to
vacate upon demand
by owner
Period to Bring
Action: 1 year from
dispossession
(force, intimidation,
threats) or from
knowledge of
dispossession
(strategy, stealth)
Period to Bring
Action: 1 year from
last demand to
vacate.
facie appearance of validity or legal
efficacy.
Such cloud must be due to some
instrument, record, claim, encumbrance or
proceeding which is apparently valid but is
in truth invalid, ineffective, voidable or
unenforceable, and is prejudicial to the
plaintiff’s title. Plaintiff must return to the
defendant all benefits he may have received
from the latter, or reimburse him for
expenses that may have redounded to his
benefit [Art. 479, Civil Code].
Note: Legal
possession (by
permission/ tolerance)
becomes unlawful
upon failure to vacate
Note: An action to quiet title applies only to
real property; except to some personal
properties like vessels or stock certificates
which partake of the nature of real property,
or when they are considered as real
property because of special registration
requirements.
4. Quieting of Title
b. Who may file
a. Requisites
Any person interested under a deed, will,
contract or other written instrument, or whose
rights are affected by a statute, executive
order or regulation, ordinance, or any other
governmental regulation may, before breach
or violation thereof, bring an action in the
appropriate RTC to determine any question of
construction or validity arising, and for a
declaration of his rights or duties, thereunder
[Bar Matter No. 803, 17 February 1998].
1. Plaintiff has a legal or an equitable title to
or interest in the real property subject of
the action; and he need not be in
possession of said property [Art. 477, Civil
Code]
2. The deed, claim, encumbrance, or
proceeding claimed to be casting a cloud
on plaintiff’s title must be shown to be in
fact invalid or inoperative despite its prima
c. Quieting of Title vs. Removing or Preventing a Cloud
Definition
Purpose
Action to Quiet Title
Action to Remove or Prevent a Cloud
A common law remedy for the
removal of any cloud upon a doubt or
uncertainty with respect to title to real
property [Paras].
A semblance of title, either legal (party is the registered
owner) or equitable (party has beneficial ownership), or
a claim or a right in real property, appearing in some
legal form but which is, in fact, invalid or which would be
inequitable to enforce
To put a stop to vexatious litigation in
relation to the property
To cancel, deliver, remove, or release an encumbrance
which can be considered a claim re: plaintiff’s title
1.
1.
Requisites
2.
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Plaintiff must show that there is
an instrument, record, claim,
encumbrance, or proceeding,
Said instrument, etc. must
2.
Plaintiff has a title to a real property or interest
therein;
Defendant is bent on creating a cloud on the title
or interest therein. The danger must not be merely
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Action to Quiet Title
3.
1.
2.
When
Inapplicable
3.
4.
5.
6.
constitute or cast a cloud;
doubt; question; or shadow,
Said cloud, etc. is adverse to the
owner's title to or interest in real
property [Art. 476, Civil Code]
Action to Remove or Prevent a Cloud
3.
speculative or imaginary but imminent; and
Unless the defendant is restrained or stopped,
the title or interest of the plaintiff will be
prejudiced or adversely affected.
To questions involving interpretation of documents;
To mere written or oral assertions of claim, except if made in a legal proceeding or
asserts that an instrument or entry in plaintiff’s favor is not what it purports to be;
To boundary disputes;
To deeds by strangers to the title unless purporting to convey the property of the plaintiff;
To instruments invalid on their face; or
Where the validity of the instrument involves a pure question of law
d. Prescription/Non-Prescription of Action
Condition
Effect on Prescription
Plaintiff is in possession of the property
Plaintiff is not in possession of the
property
Action does not prescribe
Plaintiff is a possessor with real
right
Action prescribes in 10 years
Plaintiff is owner of the property
Action prescribes in 30 years
Note: An action to quiet title may be defeated by a claim of ordinary or extraordinary acquisitive
prescription by the defendant
D. Co-Ownership
1. Requisites
1. Plurality of owners;
2. Object must be an undivided thing or right;
and
3. Each co-owner’s right must be limited only
to his ideal or abstract share of the
physical whole [De Leon].
What Governs Co-Ownership [Art. 484 (2),
Civil Code]
1. Contracts;
2. Special laws; and
3. The Civil Code.
Characteristics
1. There are two (2) or more co-owners.
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2. There is a single object which is not
materially or physically divided and his
ideal share of the whole.
3. There is no mutual representation by the
co- owners.
4. It exists for the common enjoyment of the
co- owners.
5. It has no distinct legal personality.
6. It is governed first of all by the contract of
the parties; otherwise, by special legal
provisions, and in default of such
provisions, by the provisions of Title III on
Co-Ownership [De Leon].
Only Limitation
Each of the co-owners holds the property pro
indiviso and exercises his or her rights with
the entire property; thus, each co-owner may
use and enjoy the property with no other
limitation than that he shall not injure the
interests of his co-owners [Silva v. Lo, G.R.
No. 206667 (2021)].
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Prohibition against partition: A donor or
testator may prohibit partition for a period
which shall not exceed 20 years [Art. 494(3),
Civil Code].
2. Sources of Co-Ownership
a. Law
1. Cohabitation:
co-ownership
between
common law spouses [Arts. 147-148, 90,
Family Code]
2. Purchase creating implied trust [Art. 1452,
Civil Code]
3. Easement of party wall: co-ownership of
part- owners of a party wall [Art. 658, Civil
Code]
4. Condominium Law: co-ownership of the
common areas by holders of units [Sec.
6(c), RA 4726]
e. By Fortuitous Event or by Chance
1. Co-ownership between owners of 2 things
that are mixed by chance or by will of the
owners [Art. 472, Civil Code]
2. Hidden Treasure [Art. 438, Civil Code] When the discovery is made on the
property of another, or of the State or any
of its subdivisions, and by chance, onehalf shall be allowed to the finder.
b. Contract
f. By Occupancy
1. In general [Art. 494, Civil Code]
2. Universal partnership [Art. 1779, Civil
Code]
3. Associations [Art. 1775, Civil Code]
Harvesting and fishing: co-ownership by two
(2) or more persons who have seized a res
nullius thing [Art. 713, Civil Code]
3. Rights of Co-Ownership
c. Intestate Succession
Co-ownership between the heirs before
partition of the estate [Art. 1078, Civil Code]
d.
Testamentary
Disposition
Donation Inter Vivos
or
Donations Made to Several Persons Jointly
General Rule: When a donation is made to
several persons jointly, it is understood to be
in equal shares, and there shall be no right of
accretion among them,
Exception: The donor has otherwise provided
[Art. 753, Civil Code].
Donations Made to Spouses Jointly
General Rule: In donations to spouses jointly,
right of accretion is presumed
Exception: The donor provides otherwise
[Art. 753(2), Civil Code]
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a. Right to Share in the Benefits as
Well as the Charges [Art. 485, Civil
Code]
1. Proportionality
The share of the co-owners shall be
proportional to their respective interests. Any
stipulation to the contrary is void [Art. 485(1),
Civil Code].
2. Presumption of Equal Share
The portions belonging to the co-owners in the
co-ownership shall be presumed equal, unless
the contrary is proved [Art. 485(2), Civil Code].
b. Right to Use the Thing Owned in
Common [Art. 486, Civil Code]
c. Right to Full Ownership of His Part
and of the Fruits and Benefits
Pertaining thereto [Art. 493, Civil Code]
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Distinctions Between Right to Property Owned in Common and Full Ownership Over the Ideal
Share
Rights
Involved
Property Owned in Common
Full Ownership over the Ideal Share
Right to use the thing owned in
common (Art. 486, Civil Code)
A co-owner has the right to:
1. Alienate;
2. Assign;
3. Mortgage; and
4. Substitute another person in its enjoyment.
Exception: When personal rights are involved (Art. 493, Civil
Code)
Limitations
Use of the thing owned in
common must be:
1. in accordance with the
purpose for which the coownership is intended
The purpose of the coownership may be changed by
agreement, express or implied.
The rights above can only pertain to the co-owner’s ideal share
prior to partition.
Co-owners are free to dispose of their undivided aliquot shares
therein, limited to the portion allotted to them upon partition. If
the sale is of a definite portion of the common property, the
consent of all co-owners is required because it operates as a
partition (Spouses Rol v. Racho, G.R. No. 246096, (2021)]
2. in such a way as to not injure
the interest of the coownership;
3. in such a way as not to
prevent the other co-owners
from using it according to their
right (Art. 486, Civil Code).
A sale made before the partition of the property among the coheirs does not annul or invalidate the
deed of sale. (Lipa Agricultural Development Corp. v. Salas, G.R. No. 242646, (2021)] Only the
rights of the co-owner/seller are transferred, thereby making the buyer a co-owner of the property.
The proper action in such a case is not for the nullification of the sale, or for the recovery of
possession of the property owned in common from the third person, but for division or partition of the
entire property if it continued to remain in the possession of the co-owners who possessed and
administered it. (Tomas Claudio Memorial College, Inc. v. Court of Appeals, G.R. No. 124262,
(1999)].
in
should be dismissed [Clemente v. Republic,
G.R. No. 220008 (2019)].
Actions contemplated: All cases for
recovery of possession (forcible entry,
unlawful detainer, accion publiciana, replevin,
accion reivindicatoria).
e. Right to Compel Other Co-Owners to
Contribute to the Expenses of
Preservation and to the Taxes [Art.
488, Civil Code]
The Action is considered filed for the benefit of
all the co-owners.
General Rule: Each co-owner shall have a
right to compel the other co-owners to
contribute:
1. To the necessary expenses (incurred for
preservation of the thing or right). If
practicable, he must first notify his coowners of the necessity for such repairs
[Art. 489, Civil Code]
2. To the taxes [Art. 488, Civil Code]
d. Right to Bring an Action
Ejectment [Art. 487, Civil Code]
A co-owner may bring such an action without
joining all the other co-owners as co-plaintiffs
because the suit is presumed to have been
filed to benefit his co-owners. If the plaintiff/coowner claims to be the sole owner, the action
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Exception to paying necessary expenses
and taxes: Co-owner no longer has to pay if
he renounces his undivided interest as
equivalent to his share of expenses and taxes
[Art. 488, Civil Code]. This means that his/her
renunciation does not cover all of his/her
interest in the property co-owned.
Exception to the Exception: No waiver shall
be made if prejudicial to co-ownership [Art.
488, Civil Code].
1. Expenses to improve or embellish the
thing shall be decided upon by a majority
as determined in Art. 492, Civil Code.
2. As for the expenses for pure luxury or
mere pleasure, these are not refundable
for not serving purposes of preservation
[Art. 548, Civil Code].
f. Right to Reimbursement for
Necessary Repairs [Arts. 488-489, Civil
Code]
General Rule: A co-owner has the right to
compel the other co-owners to contribute to
the expenses of preservation, maintenance, or
necessary repairs of the thing or right owned
in common and to the taxes [Art. 488, Civil
Code].
Requirement of notice: If practicable, the coowner must first notify the co-owners of the
necessity for the repairs [Art. 489, Civil Code].
Exception to the requirement of notice: If
impracticable or where the repairs are very
urgent, and the other co-owners are in remote
places and cannot be reached by an ordinary
means of communication. This means that
his/her renunciation does not cover all his/her
interest in the property co-owned.
Lack of notice even if practicable: Does not
exempt other co-owners to contribute. The coowner who advanced them has the burden of
proving that they were properly incurred.
g. Right to Oppose Alterations [Art.
491, Civil Code]
CIVIL LAW
common, even though benefits for all would
result therefrom.
Rationale: Alteration is an act of ownership.
Alteration – a change in the nature or use of a
thing; it contemplates a permanent change.
Examples:
1. Change of the thing from the state or
essence in which the others believe it
should remain. Withdrawal of the thing
from the use to which they wish it to be
intended
2. Any other transformation which prejudices
the condition or substance of the thing or
its enjoyment by the others [Manresa].
Examples of Alterations
1. The construction of a house on the coowned property is an act of dominion. It is
an alteration of the property owned in
common [Cruz v. Catapang, G.R. No.
164110 (2008)].
2. Mortgage, donation, or sale of a portion or
the whole of the property co-owned
3. Allowing or entering into an easement
Exception: If the withholding of the consent
by one or more of the co-owners is clearly
prejudicial to the common interest, the courts
may afford adequate relief.
h. Right to Partition [Art. 494, Civil
Code]
Partition is the separation, division and
assignment of a thing held in common among
those to whom it may belong. Every act which
is intended to put an end to indivision among
co-heirs and legatees or devisees is deemed
to be a partition. Partition may be inferred
from circumstances sufficiently strong to
support the presumption. Thus, after a long
possession in severalty, a deed of partition
may be presumed [Spouses Marcos v. Heirs
of Bangi, G.R. No. 185745 (2014)].
An oral partition by the heirs is valid if no
creditors are affected. Even the requirement
General Rule: Unanimous Consent: None of
of a written memorandum under the statute of
the co-owners shall, without the consent of the
frauds does not apply considering that such a
others, make alterations in the thing owned in
transaction is not a conveyance of property
resulting in change of ownership but merely a
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designation and segregation of that part which
belongs to each heir. (Lipa Agricultural
Development Corp. v. Salas, G.R. No. 242646
(2021)].
General Rule:
a. No co-owner shall be obliged to remain in
the co-ownership; and
b. Each co-owner may demand at any time
the partition of the thing owned in common,
insofar as his share is concerned [Art. 494(1),
Civil Code].
The fact that an agreement for partition lacks
technical description of the parties’ respective
portions or that the subject property is still
embraced by a single certificate of title could
not legally prevent a partition, where the
different portions allotted to each are
determined and separately identifiable
(Leoverzo
v.
Valdez,
G.R.
No.
169985(2011)].
Note: A creditor or assignee of a co-owner
may take part in the division of the thing
owned in common and object to its being
effected without their concurrence. But they
cannot impugn any partition already executed
unless there has been fraud or in case it was
made notwithstanding a formal opposition to
prevent it, without prejudice to the right of the
debtor or assignor to maintain its validity [Art.
497, Civil Code].
Exceptions:
1. An agreement to keep the thing undivided
for a certain period of time, not exceeding
ten (10) years, shall be valid [Art. 494,
Civil Code].
2. A donor or testator may prohibit partition
for a period which shall not exceed twenty
(20) years [Art. 494, Civil Code].
3. Neither shall there be any partition when it
is prohibited by law [Art. 494, Civil Code].
4. When physical partition would render the
thing unserviceable for the use for which it
is intended [Art. 495, Civil Code].
Elements for Prescription to Run in Favor
of Co-Owner:
1. He has performed unequivocal acts of
repudiation amounting to an ouster of the
other co-owners;
2. Such positive acts of repudiation have
been made known to the other co-owners;
and
3. The evidence thereon must be clear and
convincing [Salvador v. CA, G.R. No.
109910 (1995)].
4. He has been in possession through open,
continuous, exclusive, and notorious
possession of the property for the period
required by law (Figuracion v. FiguracionGerilla, G.R. No. 151334 (2013)].
While the action for the partition of the thing
owned in common does not prescribe, the coownership does not last forever since it may
be repudiated by a co-owner. In such a case,
the action for partition does not lie. What may
be brought by the aggrieved co-owner is an
accion reivindicatoria or action for recovery of
title and possession. That action may be
barred by prescription. (Heirs of Jardin v.
Heirs of Hallasgo, G.R. No. L-55225 (1982)].
Sample of Acts of Repudiation
1. Filing of actions in court like quieting of
title, accion reivindicatoria and other
similar suit
2. Co-owner who causes cancellation of the
existing title and petitions for an issuance
of a new title in his favor
3. Co-owner who permanently fences the
property and hires security personnel to
prevent other co-owners from entering the
property
i. Right to Redemption [Art. 1619, Civil
Code]
Definition
Legal redemption – the right to be
subrogated, upon the same terms and
conditions stipulated in the contract, in the
place of one who acquires a thing by
purchase or dation in payment, or by any
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Note: If the thing owned in common is
indivisible:
1. The co-owners can agree that it be alloted
to one of them, and the latter will
indemnify the others; or
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2. If they cannot agree, the thing shall be
sold and its proceeds distributed [Art. 498,
Civil Code]
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other transaction whereby ownership is
transmitted by onerous title [Art. 1619, Civil
Code].
2. If the resolution of the majority is seriously
prejudicial to those interested in the
property owned in common.
General Rule: A co-owner of a thing may
exercise the right of redemption in case the
shares of all the other co-owners or of any of
them are sold to third person [Art. 1620, Civil
Code].
In which case, the court will intervene: the
court, at the instance of an interested party,
shall order such measures as it may deem
proper, including the appointment of an
administrator.
As legal redemption is intended to minimize
co-ownership, once a property is subdivided
and distributed among the co-owners, the
community ceases to exist and there is no
more reason to sustain any right of legal
redemption. Every act intended to put an end
to indivision among co-heirs is deemed to be
a partition [Avila v. Sps. Barabat, G.R. No.
141993 (2006)].
Examples of Acts Seriously Prejudicial
1. Call for a substantial change of the thing
2. Authorizing leases, loans, and other
contracts without the necessary security,
thereby exposing the property to serious
danger
3. Continued employment of an administrator
who is guilty of fraud or negligence in his
management [Manresa]
When exercised
Within 30 days from the notice in writing by
the selling co-owner [Art. 1623, Civil Code]
Note: A co-owner is entitled to a written notice
from a selling co-owner in order to remove all
uncertainties about the sale, its terms and
conditions, as well as its efficacy and status
[Verdad v. CA, G.R. No. 109972 (2000)].
The written notice of sale is mandatory.
Notwithstanding actual knowledge of a coowner, he is still entitled to a written notice
from the selling co-owner in order to remove
all uncertainties about the sale, its terms and
conditions, as well as its efficacy and status.
(Verdad v. Court of Appeals, G.R. No.
109972, (1996)].
j. Right to Participate in Administration
of Property Owned in Common [Art.
492, Civil Code]
General Rule:
1. For the administration and better
enjoyment of the thing owned in common,
the resolutions of the majority of the coowners shall be binding [Art. 492(1), Civil
Code].
2. There shall be no majority unless the
resolution is approved by the co-owners
who represent the controlling interest in
the object of the co-ownership [Art.
492(2), Civil Code].
Exceptions to Acts of Administration Only
by Majority:
1. If there be no majority; or
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4. Rules
a. On Renunciation of Share
A co-owner may exempt himself from the
payment of expenses of preservation by
renouncing his undivided interest in the coownership as may be equivalent to his share
in the necessary expenses and taxes [Art.
488, Civil Code].
A co-owner who has not waived his share in
the co-ownership may be compelled to pay his
share in the cost of its maintenance, but he
may not be compelled to renounce.
Waiver of renunciation is not allowed if it is
prejudicial to the co-ownership [Art. 488, Civil
Code].
b.
Repairs
for
Preservation
Embellishments or Improvements
Requires consent of majority of co-owners
representing the controlling interest in the
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undivided thing [Arts. 489 and 492, Civil
Code].
Note: The rules under Art. 492 are applicable,
so judicial intervention may be resorted to.
Summary
Act of Co-Owner
Consent Needed
Preservation
(ex.
Critical
maintenance work
– roof leaks, cracks
in
the
walls,
electrical
wiring
system
which
renders
property
unsafe/unhealthy to
live in)
May be made at will
by any co-owner, but
preferably notice is
given to others [Arts.
488 and 489, Civil
Code].
2. The titles of ownership do not specify the
terms under which they should contribute
to the necessary expenses; and
3. There exists no agreement on the subject.
Part of the House
Manner of
Contribution
Main and party
walls, the roof, and
the other things
used in common
All owners contribute
in proportion to the
value of the story
belonging to each
Floor
of
the All owners contribute
entrance,
front pro rata or equally
door,
common
yard, and sanitary
works common to
all
Alterations
(ex. Consensus of all coSale,
mortgage, owners [Art. 491, Civil
assignment)
Code]
The floor of each Each owner bears the
co-owner’s story
cost of maintaining
the floor of his story
Lease for more Consensus of all cothan one (1) year
owners (considered
an act of alteration,
see Tolentino)
Stairs
Acts
of Majority of co-owners
administration
[Art. 492, Civil Code]
(ex. Payment of
taxes/association
dues,
hiring
contractors to do
minor repairs)
Improvement/
Majority of co-owners
Embellishing
the [Arts. 489 and 492,
Thing/
Useful Civil Code]
expenses
(ex.
Swimming
pool,
CCTV, landscaped
gardens, etc.)
c. Rules on Multi-Story House [Art. 490,
Civil Code]
Applies when:
1. The different stories of a house belong to
different owners;
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Stairs from the first
entrance to the first
story – pro rata
sharing of all owners
except the owner of
the ground floor
Stairs from the first to
the second story - pro
rata sharing of all
owners except the
owner of the ground
floor and that of the
first story; and so on.
5. Termination or Extinguishment
Means of Termination:
1. Total destruction of the thing owned in
common
2. Merger of all interests in one person
3. Acquisitive prescription
4. Partition
5. Sale of property co-owned
6. Termination of period agreed upon in coownership
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a. Total Destruction of Thing or Loss of
the Property Co-Owned
Exception: If the building is destroyed, there
is still co-ownership over the land and the
debris [Tolentino].
b. Merger of All Interests in One Person
This may take place by any of the causes
which are sufficient to transmit title to an
obligation, either by assignment, subrogation,
and sale of inheritance.
c. Acquisitive Prescription
This is a mode of acquiring ownership by a
possessor through the requisite lapse of time.
It may be ordinary or extraordinary [Art. 1117,
Civil Code].
Ordinary acquisitive prescription requires
possession of things in good faith and with a
just title for the time fixed by the law.
Extraordinary prescription is the opposite. No
good faith or just title is required, but long
possession under Art. 1132 (2) [De Leon].
d. Partition or Division
Modes:
1. Extrajudicial partition – The agreement
may be oral or written, done outside of
court [Vda. de Reyes v. CA, G.R. No.
92436 (1991)].
2. Judicial partition – Governed by the Rules
of Court insofar as they are consistent
with the Civil Code [Art. 496, Civil Code].
Action for Partition Will Determine: [Heirs
of Cesar Marasigan v. Marasigan, G.R. No.
156078 (2008)]
1. Whether or not the plaintiff is indeed a coowner of the property
2. How the property will be divided between
the plaintiff and defendant
Incidents of Partition
1. Mutual accounting for benefits received
and reimbursement for expenses made
[Art. 500, Civil Code].
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2. Payment of damages by each co-owner
caused by reason of his negligence or
fraud [Art. 500, Civil Code].
3. Liability of each co-owner for defects of
title and quality of the portion assigned to
each of the co-owners [Art. 501, Civil
Code].
Effects of Partition
1. Confers exclusive ownership of the
property adjudicated to a co-heir [Art.
1091, Civil Code].
2. Co-heirs shall be reciprocally bound to
warrant the title to, and the quality of each
property adjudicated [Art. 1092, Civil
Code].
3. Reciprocal obligation of warranty shall be
proportionate to the respective hereditary
shares of co-heirs [Art. 1093, Civil Code].
4. An action to enforce the warranty must be
brought within ten (10) years from the date
the right of action accrues [Art. 1094, Civil
Code].
5. The co-heirs shall not be liable for the
subsequent insolvency of the debtor of the
estate, but only for his insolvency at the
time the partition is made [Art. 1095, Civil
Code].
Rights of Third Parties in Partition
1. The partition of a thing owned in common
shall not prejudice third persons, who shall
retain the rights of mortgage, servitude, or
any real rights belonging to them before
the division was made [Art. 499, Civil
Code].
2. Note: A “third person” is defined as all
those who did not in any way participate
or intervene in the partition [Paras citing 3
Manresa 54 and Gonzaga v. Martinez,
G.R. No. L-3196 (1908)].
3. The creditors or assignees of the coowners may take part in the division of the
thing owned in common and object to its
being effected without their concurrence
[Art. 497, Civil Code].
Note: All kinds of creditors whether preferred
or ordinary are included within the scope of
creditors; but they must have become
creditors during the existence of the coownership and not before or after [Paras citing
3 Manresa 528-529].
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Exception: If the partition was already
executed, the creditors/assignees cannot
impugn the same.
A donor or testator may prohibit partition for a
period which shall not exceed twenty (20)
years.
Exception to the Exception: There was
fraud or a previous formal opposition against
the partition, without prejudice to the right of
the debtor or assignor to maintain its validity
[Art. 497, Civil Code].
E. POSSESSION
The law does not expressly require previous
notice to the creditors and assignees before a
partition [Tolentino].
If notice is not given, the partition is not
binding on the creditors and assignees.
But once notice has been given, it is the duty
of creditors and assignees to intervene and
make known their stand. If they fail to do so,
they cannot question the division made,
except in cases of fraud.
Partition of an Indivisible Thing [Art. 498,
Civil Code]
1. 1st option: The co-owners can agree that
one of them shall be the sole owner by
paying the value of the other co-owners’
shares.
2. 2nd option: If they cannot agree who
among them shall be the sole owner, the
property will be sold to a 3rd person and
the proceeds will be distributed among
them.
e. Sale of Property Co-Owned [Art. 498,
Civil Code]
The sale shall be resorted to only if:
1. The property is essentially indivisible.
2. The co-owners cannot agree that the
entire property be allotted or assigned to
one of them, who shall reimburse the
other co-owners of their shares.
f. Termination of Period Agreed Upon
by the Co-Owners [Art. 494, Civil Code]
An agreement to keep the thing undivided for
a certain period of time, not exceeding ten
(10) years, shall be valid. This term may be
extended by a new agreement.
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1. Kinds of Possession
a.
Possession
for
Oneself,
or
Possession Exercised in One’s Own
Name and Possession in the Name of
Another [Art. 524, Civil Code]
1. In One’s Own Name
The fact of possession and the right to such
possession is found in the same person.
2. In the Name of Another
The one in actual possession is without any
right of his own, but is merely an instrument of
another in the exercise of the latter’s
possession. It can either be:
1. Voluntary: When exercised by virtue of
an
agreement
(e.g.
agents
or
administrators appointed by the owner or
possessor). Third persons may also
voluntarily exercise possession in the
name of another, but it does not become
effective unless ratified by the person in
whose name it is exercised.
2. Necessary or legal: When exercised by
virtue of law (e.g. representatives who
exercise possession in behalf of a
conceived child, juridical persons, persons
not sui juris, and the CPG) [De Leon]
b. Possession in the Concept of a
Holder with the Ownership Belonging
to Another [Art. 525, Civil Code]
One who possesses as a mere holder, not in
the concept of owner, acknowledges in
another a superior right which he believes to
be ownership, whether his belief is right or
wrong, e.g., tenant, usufructuary, borrower in
commodatum [De Leon].
Examples of Possession in Concept of Holder
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1. Lessees
2. Trustees, including: parents over the
properties of their children; and husband
and wife over each other’s property
3. Antichretic Creditors
4. Agents
5. Attorneys
regarding
their
client’s
properties
6. Depositaries
7. Co-Owners
c. Possession in the Concept of an
Owner
Possession in the concept of an owner refers
to his overt acts which tend to induce the
belief on the part of others that he is the
owner. Possession in the concept of an owner
is jus possidendi.
If a person possesses the concept of owner—
he may eventually become the owner by
prescription. Thus, a possessor merely in the
concept of holder cannot acquire property by
acquisitive
prescription—one
cannot
recognize the right of another and at the same
time claim adverse possession.
d. Possession in Good Faith
1. Relevance of Good Faith and Bad Faith
Possessor in Good Faith
Possessor in Bad Faith
Kind of
Possessor
One who is unaware that there exists a flaw
which invalidates his acquisition of the thing.
He believes that the person from whom he
received a thing was the owner of the same
and that therefore he is now the owner based
upon ostensible title or mode of acquisition,
e.g. sale, donation, inheritance, or other
means of transmitting ownership [Art. 526,
Civil Code].
One who is aware that there
exists in his/her title or mode of
acquisition any flaw which
invalidates it [Art. 526, Civil
Code].
Fruits
For those already received [Art. 544 (1), Civil
Code]: entitled to all the fruits received before
possession is legally interrupted i.e., before
summons
Obligated to reimburse the fruits
received and those which the
legitimate possessor could have
received [Art. 549, Civil Code]
For those still pending: entitled pro rata to
those already growing when possession is
legally interrupted [Art. 545, Civil Code]
Necessary
Expenses
Entitled to reimbursement
Entitled to reimbursement
May retain the thing until reimbursed for such No right of retention [Art. 546,
expenses [Art. 546 (1), Civil Code]
Civil Code]
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Possessor in Good Faith
Useful
Expenses
Possessor in Bad Faith
Entitled to reimbursement
Not entitled to reimbursement
May retain the thing until reimbursed
No limited right of removal of
useful improvements [Arts. 546
May remove the improvements if they do not and 547, Civil Code]
cause damage to the principal thing, if the
person who recovers does not prefer to retain
them [Art. 546 (2), Civil Code]
Ornamental
Expenses
No refund but the improvements may
removed if they do not cause damage to
principal thing, and if his successor in
possession does not prefer to refund
amount expended. [Art. 548, Civil Code]
Liability for
loss or
deterioration
Liable only in cases in which it is proved that Liable in every case, even if
he acted with fraudulent intent or negligence, caused by a fortuitous event [Art.
after judicial summons [Art. 552, Civil Code]
552, Civil Code]
Costs of
Litigation
over the
property
Liable [Art. 550, Civil Code]
2. Rights of a Possessor in Good Faith
1.
2.
3.
4.
5.
6.
7.
8.
9.
024465CIV
be
the
the
the
No refund, but may remove
ornaments provided that the
principal thing is not injured and
the lawful possessor does not
prefer to retain the ornaments by
paying their value [Art. 549, Civil
Code]
Liable [Art. 550, Civil Code]
10. Generally, he/she can do on the things
possessed everything that the law
authorizes an owner to do until he/she is
Fruits [Art. 544, Civil Code]
ousted by one who has a better right
Refund of necessary expenses [Art. 546,
11.
Can
exercise the right of pre-emption and
Civil Code]
is entitled to indemnity in case of
Refund of useful expenses [Art. 546, Civil
appropriation
Code]
12. Has presumption of continuity of good
Right of retention when there are unpaid
faith [Arts. 528-529, Civil Code]
necessary or useful expenses [Art. 546,
13. Non-interruption
of
possession
Civil Code]
(possession during intermediate period)
Removal
of
useful/ornamental
[Arts. 554 and 561, Civil Code]
improvements without damage to the
14. Right
to
be
respected
and
principal thing [Arts. 546-547, Civil Code]
protected/restored in his/her possession
No liability for deterioration or loss, except
by the means established by the laws and
in cases of fraudulent intent or negligence
the Rules of Court [Art. 539, Civil Code].
[Art. 552, Civil Code]
These include summary actions (forcible
May acquire full ownership by prescription
entry and unlawful detainer), accion
[Arts. 1117-1138, Civil Code]
publiciana, and action for replevin. Accion
Presumption of just title [Art. 541, Civil
reivindicatoria is not included. “Every
Code]
possessor” – includes all kinds of
Can ask for the inscription of possession
possession, from that of an owner to that
in the Registry of Property [Art 708, Civil
of a mere holder, except that which
Code]
constitutes a crime.
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15. Lawful possessors can employ self-help
[Art. 429, Civil Code]
16. Possession of an immovable extends to
the movables within or inside [Arts. 542
and 426, Civil Code] (Exception: When it
is shown or proven that such movables
should be excluded)
3. Other Consequences
1. Possession is converted into
ownership after the required lapse of
time necessary of prescription [Art. 540,
Civil Code]
1. The possession must be under claim of
ownership, and it must be peaceful, public
and uninterrupted [Art. 1118, Civil Code].
2. Acts of possessive character done by
virtue of a license or mere tolerance on
the part of the real owner are not sufficient
and will not confer title by prescription or
adverse possession [Art. 1119, Civil
Code].
3. The following cannot acquire title by
prescription:
a. Lessees, trustees, pledges, tenants on
shares or planters, and all those who
hold in the name or in representation
of another.
b. Mere holders placed in possession of
the property by the owner such as
agents and employees.
c. Those holding the title in a fiduciary
character
such
as
receivers,
attorneys, depositaries, and antichretic
creditors.
d. Co-owner, with regard to common
property (Exception: When he/she
holds the same adversely against all
of the other co-owners with notice to
them of the exclusive claim of
ownership)
2. Entitlement to fruits/expenses:
Possessor in Good Faith [Arts. 544, 526527, Civil Code]
a. Possession in Bad Faith
024466CIV
Requisites:
1. Possessor has a title or mode of
acquisition;
2. There is a flaw or defect in said title or
mode;
3. Examples of vice or defect in title:
a. Grantor was not the owner
b. Requirements for transmission were
not complied with
c. Mistake in the identity of the person
d. Property was not really res nullius.
4. The possessor is aware of the flaw or
defect in the title.
Rights of a Possessor in Bad Faith
1. Right to be respected in possession [Art.
539, Civil Code]
2. Right to necessary expenses and the
expenses for production, gathering, and
preservation of fruits [Arts. 545-546, Civil
Code]
3. Does not have right to reimbursement of
expenses for luxury but may remove them
as long as the principal suffers no injury or
may sell them to the owner who opts to
buy the removable ornaments [Art. 549,
Civil Code]
4. No right to reimbursement for useful
improvements and no limited right of
removal [Art. 546, Civil Code]
5. Right
to
remove
ornamental
improvements or be paid the value of such
at the time of recovery but at the owner’s
option.
Obligations of a Possessor in Bad Faith
1. Reimburse the value of fruits received and
which the legitimate possessor could have
received [Art. 549, Civil Code]
2. Pay in proportion to the charges,
expenses of cultivation and the net
proceeds upon cessation of good faith
[Art. 545, Civil Code].
3. Bear the costs of litigation [Art. 550, Civil
Code]
4. Liability to the deterioration/loss of a thing
possessed in every case, including
fortuitous events [Art. 552, Civil Code].
2.
Acquisition
of
Possession
(including possession based on
tolerance)
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a. Ways of Acquiring Possession
(1) By the Material Occupation of a Thing
or the Exercise of a Right
Possession is acquired through the
following modes of constructive delivery:
1. Traditio
brevi
manu
–
If
the
transferee/buyer already had possession
of the object under a different title even
before the sale (e.g., lessee, depositary
subsequently buys the property)
2. Traditio constitutum possessorium –
the transferor/seller continues in the
possession of the object, but not in the
concept of an owner (e.g., owner sells the
property and becomes lessee)
For constructive possession, see
discussion
under
Characteristics
Possession.
the
of
(2) By the Fact that the Thing is Subject
to the Action of Our Will
Who Acquires Possession
1. The same person who is to enjoy it
2. His legal representative
3. His agent
4. Any person without any power whatsoever
General Rule: Only acquired upon ratification.
Exception: In cases of negotiorum gestio
where a person voluntarily manages the
property or business of another, the stanger’s
possession takes effect even without
ratification by the property owner.
1. His heirs
1. If there is bad faith on the part of the
decedent: The effects of the decedent’s
wrongful possession will not affect his
heirs. The heir suffers the consequences
of such possession only from the moment
he becomes aware of the flaws affecting
the decedent’s title [Art. 528 as cited in De
Leon].
2. If there is good faith on the part of the
decedent: The effects of the decedent’s
possession will benefit the heirs only from
the date of his death.
Possession is acquired through the
following modes of constructive delivery:
1. Traditio simbolica – delivering an object
or symbol, and placing the thing under the
control of the transferee (ex. Giving a key
where the thing or object is stored, kept or
under custody. Since the key is with the
vendee, then it means that the latter can
gain access to the object)
2. Traditio longa manu – the transferor
points out to the transferee the things
which are being transferred, or they
merely agree or consent that delivery has
been effected
Legal Capacity to Acquire Possession [Art.
535, Civil Code]
Minors and incapacitated persons may
acquire possession BUT they need the
assistance of their legal representatives to
exercise their rights arising from such
possession.
(3) By the Proper Acts and Legal
Formalities Established for Acquiring
Such Right
General Rule: Possession as a fact cannot
be recognized at the same time in two
different personalities
Acquisition by virtue of a just title such as
when property is transmitted by succession,
donation, contract, or execution of a public
instrument, etc.
2. Preference of Possession [Art. 538,
Civil Code]
Exception: Co-possession
In case a dispute arises, the order of
preference is as follows:
1. The present possessor shall be preferred
2. If there are two possessors, the one
longer in possession is preferred
b. By Whom May Possession be
3.
If
the dates of the possession are the
Acquired [Arts. 532-534, Civil Code]
same, the one who presents a title is
preferred
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4. If all the foregoing conditions are equal,
the thing shall be placed in judicial deposit
pending determination of its possession or
ownership through proper proceedings.
3. What Does Not Affect Possession
(1) Acts Merely Tolerated [Art. 537, Civil
Code]
1. Those which because of neighborliness or
familiarity, the owner of property allows
another person to do on the property
[Tolentino].
2. Permissive use merely tolerated by the
possessor cannot affect possession and
cannot be the basis of acquisitive
prescription [Art. 1119, Civil Code].
3. Possession to constitute the foundation of
prescriptive right must be possession
under claim of title; it must be adverse
[Cuaycong v. Benedicto, G.R. No. L-9989
(1918)].
4. A possessor by tolerance is necessarily
bound by an implied promise to vacate
upon demand, failing which a summary
action for ejectment is the proper remedy
against him [Peran v. CFI, G.R. No. L57259 (1983)].
(2) Acts Executed Clandestinely and
Without the Knowledge of the Possessor
[Art. 537, Civil Code]
1. Possession by the possessor is not
affected as long as it remains clandestine
and unknown.
2. “Clandestine possession” is secret
possession or possession by stealth. The
possession here must be unknown to the
owner [Paras quoting 4 Manresa 199].
3. Possession has to be in the concept of an
owner, public, peaceful and uninterrupted
[Art. 1120, Civil Code].
(3) Acts of Violence as long as the
Possessor Objects Thereto [Art. 536,
Civil Code]
1. Possession cannot be acquired through
force or intimidation as long as there is a
possessor who objects thereto.
024468CIV
a) This includes forcibly taking away in
the absence of another, and repels the
latter upon his return [Tolentino]
b) Force may be:
i) actual or threatened;
ii) done by possessor or agent,
iii) done against the owner or any
other possessor or the owner’s
representative;
iv) done to oust the possessor
[Paras].
c) Art. 536 applies to one who believes
himself the owner of real property. If
he takes justice into his own hands, he
is a mere intruder and he can be
compelled to return the property and
must suffer the NECESSARY and
NATURAL consequences of his
lawlessness [De Leon citing Santiago
v. Cruz, G.R. No. 31919 (1930)].
2. He who believes that he has an action or
a right to deprive another of the holding of
a thing must invoke the aid of a competent
court, if the holder refuses to deliver the
thing.
3. Effects of Possession
a. Possession in the Concept of Owner
is Converted into Ownership After the
Required Lapse of Time Necessary of
Prescription
To consolidate title by prescription, the
possession must be under claim of ownership,
and it must be peaceful, public, and
uninterrupted [Art. 1118, Civil Code].
Acts of possessive character done by virtue of
a license or mere tolerance on the part of the
real owner do not apply for purposes of
acquisitive prescription [Art. 1119, Civil Code].
The following cannot acquire title by
prescription (i.e. they are not adversely
possessing the property): [RPFC]
1. Lessees, trustees, pledges, tenants on
shares or planters and all those who hold
in the name or in Representation of
another.
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2. Mere holders placed in Possession of the
property by the owner, such as agents,
employees.
3. Those holding in a Fiduciary character like
receivers, attorneys, depositaries and
antichretic creditors.
4. Co-owner, with regard to common
property, except: when he holds the same
adversely against all of them with notice to
them the exclusive claim of ownership.
b. Entitlement to Fruits/Expenses
(1) Possessor in Good Faith
As to the Fruits Already Received [Art. 544
(1), Civil Code]
Entitled to all the fruits until possession is
legally interrupted (i.e. before summons, or
demand; see Art. 528 for when possession in
good faith is interrupted)
4. The possessor has the option of removing
the useful improvements, provided there is
no damage to the principal thing [Art. 547,
Civil Code].
Exception: When the option to pay for the
value of the expenses or the increase in
value of the thing is exercised by the
person who recovered possession.
As to Ornamental Expenses or Expenses
for Pure Luxury [Art. 548, Civil Code]
The possessor in good faith is not entitled to a
refund for ornamental expenses. But he may
remove the ornamental improvements if they
do not cause damage to the principal thing.
Exception: The one who recovers possession
decides to refund the ornamental expenses/
expenses for pure luxury
(2) Possessor in Bad Faith
As to the Fruits Still Pending [Art. 545,
Civil Code]
Entitled pro rata to the fruits already growing
when his possession is legally interrupted
As to the Necessary Expenses [Art. 546,
(1), Civil Code]
Definition: These are expenses necessary for
the preservation of the thing [Art. 452, Civil
Code by analogy]. The possessor in good
faith may retain the thing until he is
reimbursed for necessary expenses.
As to the Useful Expenses [Arts. 546 (2)
and 547, Civil Code]
Definition: These are expenses incurred to
give greater utility or productivity to the thing.
1. They are reimbursed only to the
possessor
in
good
faith
as
a
compensation or reward for him.
a. Possessor in bad faith cannot recover
such expenses.
2. Possessor in good faith may retain the
thing until he is reimbursed for useful
expenses.
3. The person who defeats the possessor in
possession has the option to:
a. Refund the amount of expenses; or
b. Pay the increase in value which the
thing may have acquired.
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Definition: One who is aware that there exists
in his title or mode of acquisition a flaw which
invalidates it [Art. 526, Civil Code].
Rights of a Possessor in Bad Faith:
[RNRV]
1. Right to be Respected in possession; [Art.
539, Civil Code]
2. Right to Necessary expenses and the
expenses for production, gathering, and
preservation of fruits [Arts. 545 and 546;
Art. 443, Civil Code]
3. Remove ornaments provided that the
principal thing is not injured and the lawful
possessor does not prefer to retain the
ornaments by paying their value when the
latter enters into possession [Art. 549,
Civil Code]
1. The possessor in bad faith does not
have a right to reimbursement for
expenses for luxury.
2. Right to be paid for the Value of the
ornaments at the time the lawful
possessor enters into possession, if the
latter prefers to retain them [Art. 549, Civil
Code]
Note: A possessor in bad faith is not entitled
to reimbursement for useful expenses and has
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no limited right of removal of useful
improvements [Art. 546-547, Civil Code].
Obligations of a Possessor in Bad Faith:
[RPBL]
1. Reimburse the value of fruits received and
which the legitimate possessor could have
received [Art. 549, Civil Code].
2. Pay in proportion to the charges,
expenses of cultivation and the net
proceeds upon cessation of good faith
[Art. 545, Civil Code].
3. Bear the costs of litigation [Art. 550, Civil
Code].
4. Liability to the deterioration/loss of a thing
possessed in every case, including
fortuitous events [Art. 552, Civil Code].
4. Rules for Movables
Possession of Movables
Possession is not deemed lost so long as they
remain under the control of the possessor,
even if whereabouts are unknown [Art. 556,
Civil Code].
Possessor of a Movable Property
Possession 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 of the same [Art. 559, Civil
Code]. The right of the owner cannot be
defeated even by proof that there was good
faith in the acquisition by the possessor.
[Dizon v. Suntay, G.R. No. L-30817, 29
September 1972].
Exception: When there is acquisition in good
faith of the possessor at a public sale, in
which case the owner cannot obtain its return
without reimbursing the price. The owner’s
right is based on his being dispossessed
without his consent [Dizon v. Suntay, supra].
F. Usufruct
1. In General
a. Characteristics
024470CIV
Usufruct is a temporary real right which gives
a right to enjoy the property as well as its fruits
of another with the obligation of preserving its
form and substance, unless the title
constituting it or the law otherwise provides
[Art. 562, Civil Code].
Constituted By: [PILL]
1. Law
2. Will of private persons expressed in acts
Inter vivos
3. Will of private persons expressed in a Last
will
4. Prescription [Art. 563, Civil Code]
Can be Constituted Over:
1. The whole or part of the fruits of the thing
2. A right, provided it is not strictly personal
or intransmissible [Art. 564, Civil Code].
General Characteristics
1. Nature: It is a real right of the use and
enjoyment of the property, whether or not
the same be registered in the Registry of
Property;
a. It must be registered in the Registry of
Property to prejudice third persons
[Art. 709, Civil Code]
b. It is transmissible
2. Term: Of temporary duration;
3. Purpose: To enjoy the benefits and derive
all advantages from the thing due to
normal exploitation;
4. Scope: May be constituted on real or
personal property, consumable or nonconsumable, tangible or intangible, the
ownership of which is vested upon
another.
Natural Characteristics
1. Includes jus abutendi, jus utendi, jus
fruendi, jus possidendi and jus vindicandi.
The only thing left with the grantor of the
usufruct is the jus disponendi.
2. Usufructuary must preserve the form or
substance of the thing.
3. Preservation is a natural requisite, not
essential because the title constituting it,
the will of the parties, or the law may
provide otherwise.
4. Usufruct is extinguished by the death of
the usufructuary.
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5. A person cannot create a usufruct over his
own property and retain it at the same
time [Gaboya v. Cui, G.R. No. L-19614
(1971)].
The rights and duties of the
usufructuary provided by law
may
be
modified
or
eliminated by the parties. If
the
usufructuary
is
authorized to alienate the
thing in case of necessity, it
is the usufructuary who
determines the question of
necessity
Reasons for Preserving Form and
Substance
1. To prevent extraordinary exploitation;
2. To prevent abuse, which is frequent;
3. To prevent impairment.
Exception: In an abnormal usufruct, alteration
is allowed.
b. Classifications
As to Number of Beneficiaries
As to Manner of Creation
Voluntary
Created by the will of private
persons:
By act inter vivos – such as
contracts and donations;
By donation of the usufruct;
Simple
Only
one
usufructuary
enjoys the property.
Multiple
Several usufructuaries enjoy
the
property
as
cousufructuaries
Simultaneou
s
At the same time.
Successive
One after the other.
By retention of the usufruct
by donor;
Limitations:
. If by donation, all donees
must be alive [Art. 756,
Civil Code].
. Fiduciary and the second
heir must be alive at the
time of the death of the
testator [Art. 863, Civil
Code].
. If
by
testamentary
succession, there must be
only two (2) successive
usufructuaries, and both
must be alive or at least
already conceived at the
time of the testator’s
death and later born alive
[Art. 869, Civil Code].
Where
a
usufruct
is
constituted inter vivos and
for valuable consideration,
the contract is unenforceable
unless in writing;
By act mortis causa – such
as testament
Legal
As provided by law.
Usufruct of parents over the
property of unemancipated
children (now limited to the
collective daily needs of the
family) [Art. 226, Family
Code]
Mixed
024471CIV
Created both by law and the
acts of persons, i.e. by
acquisitive prescription.
As to Object of Usufruct
Rights
Must not be strictly personal
or intransmissible
Normal
Involves
things
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non-consumable
which
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usufructuary
can
enjoy
without altering their form or
substance (e.g. form and
substance are preserved).
Abnormal or
Irregular
QuasiUsufruct
When the usufruct includes
things which cannot be used
in a manner appropriate to
its nature without being
consumed, and if not
consumed, may be useless
(ex: money, grain, liquors).
Includes things which cannot
be used without being
consumed. Money may be
the object of usufruct [Art.
574, Civil Code]
As to Effectivity
Pure
Without term or condition
With a Term
With a period, which may
either be suspensive (from a
certain day) or resolutory (to
a certain day)
Conditional
Subject to a condition which
may either be suspensive
(from a certain event) or
resolutory (until a certain
event)
As to Extent of the Usufruct
As to Fruits
Total - all consumed by the
usufruct.
Partial - constituted only on
a part or certain aspects of
the usufruct’s fruits
As to the
Object
Singular - only on particular
property of the owner.
Universal - over universal
property, i.e. over an entire
patrimony,
a
whole
inheritance of a compulsory
heir, a dowry, etc.
024472CIV
2. Rights and Obligations of the
Usufructuary
a. Rights
(1) Rights as to the Thing and its Fruits
[HIRE FLIERS]: Half of hidden treasure,
Increase, Remove, Enjoy, Fruits, Lease,
Improvements, Expenses, Retain, Set-off.
1. To receive the Fruits of the property in
usufruct [Art. 566, Civil Code]
2. To enjoy any Increase that the thing in
usufruct may acquire through accession,
servitudes, and all benefits inherent
therein [Art. 571, Civil Code]
3. To receive Half of the hidden treasure if
he accidentally finds it on the property
[Art. 566, Civil Code]
4. To personally Enjoy the thing in usufruct
[Art. 572, Civil Code]
5. To Lease it to another [Arts. 568-569 and
572, Civil Code]
6. To make useful
improvements or
Expenses he may deem proper [Art. 579,
Civil Code]
7. To Remove improvements, provided there
is no damage to the property [Art. 579,
Civil Code]
8. To Set off improvements he may have
made on the property against any damage
to the same [Art. 580, Civil Code]
9. To Retain the thing until he is reimbursed
for advances for extraordinary expenses
and taxes on the capital [Art. 612, Civil
Code]
(2) Right to Natural and Industrial Fruits
Pending at the Beginning of Usufruct
Fruits Pending at
the Beginning of
the Usufruct
Belong
to
usufructuary
Fruits Pending at
the Termination of
the Usufruct
the Belong to the naked
owner
Without need to The
owner
shall
reimburse
the reimburse
to
the
expenses to the usufructuary ordinary
owners
cultivation expenses
from the proceeds of
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Fruits Pending at
the Beginning of
the Usufruct
CIVIL LAW
Fruits Pending at
the Termination of
the Usufruct
the fruits (not to
exceed the value of
the fruits)
Without prejudice Rights of innocent 3rd
to the right of 3rd parties should not be
persons, e.g. if the prejudiced.
fruits
arose
by
building, planting,
sowing
by
a
possessor in good
faith, the pending
crop expenses of
cultivation and of
the net harvest and
charges shall be
prorated between
said possessor and
the usufructuary in
proportion to the
time of possession
[Art.
545,
Civil
Code]
In the case of civil
fruits, no need to
prorate, as civil
fruits accrue daily
[Art.
544,
Civil
Code]
Right to Civil Fruits
Deemed to accrue daily and belong to the
usufructuary in proportion to the time the
usufruct may last [Art. 569, Civil Code].
Special Rule as to Usufruct on Rent,
Pension or Interest
Whenever a usufruct is constituted on the
right to receive a rent or periodical pension,
whether in money or in fruits, or in the interest
on bonds or securities payable to bearer, each
payment due shall be considered as the
proceeds or fruits of such right [Art. 570 (1),
Civil Code].
024473CIV
Special Rule as to Benefits from Enterprise
with No Date Fixed for Distribution
Whenever it consists in the enjoyment of
benefits accruing from a participation in any
industrial or commercial enterprise, the date of
the distribution of which is not fixed, such
benefits shall have the same character [Art.
570 (2), Civil Code].
Special Rule for a Usufruct Over a CoOwned Property
To exercise all rights of the particular coowner with respect to the administration and
collection of fruits/interests from the aliquot
share of property.
Should co-ownership cease by reason of
partition, the usufruct of the part allotted to the
co-owner shall still belong to the usufructuary
[Art. 582, Civil Code].
(3) Right to Lease the Thing in Usufruct
General Rule: The thing in usufruct can be
leased without consent of the owner.
Exceptions:
1. Caucion Juratoria, wherein the lease
would show that the property is not
needed by the usufructuary and therefore
the use for which the usufruct was
constituted is changed.
2. Conditions imposed by naked owners i.e.,
Usufruct is purely personal, e.g., title
creating usufruct provides that usufruct
shall personally use and enjoy the
property given in usufruct.
3. Legal usufructs cannot be leased.
Period of the Lease
General Rule: The period of lease is
coextensive with the period of usufruct.
Exception: Lease of rural lands will subsist
during the agricultural year despite expiration
of the usufruct [Art. 572, Civil Code].
Rules as to Lease:
1. A lease executed by the usufructuary
before the termination of the usufruct and
subsisting after the termination of the
usufruct must be respected, but the rents
for the remaining period will belong to the
owner.
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2. If the usufructuary has leased the lands or
tenements given in usufruct, and the
usufruct should expire before the
termination of the lease, he or his heirs
and successors shall receive only the
proportionate share of the rent that must
be paid by the lessee [Art. 568, Civil
Code].
3. A lease executed by the owner before the
creation of the usufruct is not extinguished
by such usufruct.
Notes:
Future crops may be sold but such sale would
be void if usufruct terminates prior to harvest
of future fruits. The buyer’s remedy is to
recover from the usufructuary.
The usufructuary-lessor is liable for the act of
the substitute. A usufructuary who alienates or
leases his right of usufruct shall answer for
any damage which the things in usufruct may
suffer through the fault or negligence of the
person who substitutes him [Art. 590, Civil
Code].
(4) To Enjoy Any Increase Which the
Thing May Acquire Through Accession
The usufructuary shall have the right to enjoy
any increase which the thing in usufruct may
acquire through accession, the servitudes
established in its favor, and, in general, all the
benefits inherent therein [Art. 571, Civil Code].
any damage to the same [Art. 580, Civil
Code].
Note: Registration of improvements – to
protect usufructuary against third persons
(6) Right of Retention
The usufructuary has the right of retention
until he is reimbursed of the amount he paid
for taxes and the increase in value caused by
the extraordinary repairs he made [Art. 612,
Civil Code].
Rights as to the Legal Right of Usufruct
Itself [ABE – Alienate, Bring action, Exercise
all rights]
1. To Alienate or Mortgage the Right Itself
[Art. 572, Civil Code]
The usufructuary may alienate his right of
usufruct, even by a gratuitous title (e.g.
donation); but all the contracts he may
enter into as such usufructuary shall
terminate upon the expiration of the
usufruct.
Except:
a. Parental usufruct [Arts. 225 and 226,
Family Code]
b. Usufruct given in consideration of the
person of the usufructuary intended to
last during his lifetime
1. He may improve the thing without altering
its form and substance.
2. He is not entitled to indemnification.
3. He may also remove improvements made
by him if it is possible to do so without
damage to property.
2. To Bring Action and Oblige the Owner
to Give Him Proper Authority and
Necessary Proof in Cases of Usufruct
to Recover Real Property, Real Right,
or Movable Property [Art. 578, Civil
Code]
The action may be brought in the name of
the usufructuary. If a favorable judgment
is obtained, the usufruct shall be limited to
the fruits, and the naked ownership shall
belong to the owner.
Note: The option to remove improvements
belongs to the usufructuary, and the
naked owner cannot compel him to do so,
neither can the owner compel the
usufructuary to leave the improvements
and just pay for their value.
3. To Exercise all rights pertaining to the
co-owner
with
respect
to
the
administration and collection of fruits
or interest from the proper (Applicable
to usufruct of a part of a common
property) [Art. 582, Civil Code]
(5) To Make Improvements on
Property as He May Deem Proper
the
4. The usufructuary has the right to set-off
the improvements on the property against
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b. Rights of the Owner
(1) At the beginning of the Usufruct
See obligations of usufructuary at the
beginning of the usufruct discussed below.
(2) During the Usufruct
1. The owner retains title to the thing or
property.
2. He may alienate the property. He may not
alter the form or substance of the thing,
nor do anything prejudicial to the
usufructuary [Art. 581, Civil Code].
3. He may construct buildings, make
improvements and plantings, provided:
a. The value of the usufruct is not
impaired; and
b. The rights of the usufructuary are not
prejudiced [Art. 595, Civil Code].
4. He can constitute a voluntary easement
over land/building held in usufruct without
the usufructuary’s consent. But if it affects
the usufructuary’s right, the latter must
give his consent [Art. 689, Civil Code].
If the easement is perpetual, the consent
of both must be obtained [Art. 690, Civil
Code].
c. Obligations
(1) Obligations at the Beginning of the
Usufruct or before Exercising the
Usufruct
To make, after notice to the owner or his
legitimate representative, an inventory of
all the property, which shall contain an
appraisal of the movables and a description of
the condition of the immovables [Art. 583 (1),
Civil Code].
Exceptions to Making Inventory
1. No one will be injured thereby [Art. 585,
Civil Code]
2. Title constituting usufruct excused the
making of inventory.
3. Title constituting the usufruct already
made the inventory.
024475CIV
To give security, binding himself to fulfill the
obligations imposed upon him in accordance
with this Chapter [Art. 583 (2), Civil Code].
Exceptions to Giving Security:
1. No prejudice would result [Art. 585, Civil
Code];
2. Usufruct is reserved by a donor [Art. 584,
Civil Code];
3. Gratitude on the donee’s part demands
that the donor be excused from filing the
bond;
4. Title
constituting
usufruct
excused
usufructuary;
5. A usufructuary may take possession
under a caucion juratoria (bond by oath)
[Art. 587, Civil Code];
6. When there is waiver by the naked
owner;
7. When the usufructuary is the donor of the
property who has reserved the usufruct
[Art. 584, Civil Code];
8. When there is a parental usufruct under
the Family Code [Art. 225, Family Code].
Requisites of Caucion juratoria:
1. Proper court petition;
2. Usufruct is over a house, furniture or tools
of a trade and the necessity for delivery of
furniture, implements or house included in
the usufruct;
3. Approval of the court; and
4. Sworn promise.
Note: These requirements are not conditions
precedent to the commencement of the right
of the usufruct but merely to the entry upon
the possession and enjoyment of the
property.
Effect of Failure to Give Bond [Art. 586,
Civil Code]:
1. The owner may demand that the
immovable properties be placed under
administration;
2. That the movable properties be sold and
the proceeds of the sale be the property
held in usufruct – legal interest of 6% shall
be the fruits;
3. That the public bonds, instruments of
credit payable to order or to bearer be
converted into registered certificates or
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deposited in a bank or public institution;
and
4. That the capital or sums in cash and the
proceeds of the sale of the movable
property be invested in safe securities.
5. The owner may, until the usufructuary
gives security or is excused from so doing,
retain in his possession the property in
usufruct as administrator, subject to the
obligation to deliver to the usufructuary the
net proceeds, after deducting the sums,
which may be agreed upon or judicially
allowed him for such administration.
(2) Obligations During the Usufruct
[CAPCORN – Care, Allow improvements, Pay
AIDE (Annual taxes, Interest, Debts,
Expenses for litigation), Collect credit,
Ordinary repairs, Replace animals, Notify UP
(Urgent repairs, Prejudicial act)]
1. To take Care of the property as a good
father of the family [Art. 589, Civil Code]
2. To make Ordinary repairs – required by
the wear and tear due to the natural use of
the thing and are indispensable for its
preservation [Art. 592, Civil Code]
3. To inform/Notify the owner of:
a. Urgent extraordinary repairs [Art. 593,
Civil Code]
b. Any prejudicial act to the rights of
ownership over the usufruct, by a third
person [Art. 601, Civil Code]
c. Consequence: He is liable for
damages if he fails to give notice.
4. To Allow the naked owner to make works
and improvements of which the immovable
in usufruct is susceptible, or plantings, if
rural [Art. 595, Civil Code].
Provided:
a. The works or improvements are not
prejudicial to the usufructuary’s rights.
b. No diminution in the value of the
object in usufruct.
5. To Pay:
a. Annual taxes and charges on the fruits
for the time the usufruct lasts [Art.
596, Civil Code]. Interest on taxes on
capital paid by the naked owner [Art.
597, Civil Code]
024476CIV
b. Debts if the usufruct is over the
entirety of a patrimony [Art. 598, Civil
Code]
c. To pay expenses and costs for
litigation if incurred because of the
usufruct [Art. 602, Civil Code]
6. To secure the approval of the owner or the
court to Collect credit which form part of
the usufruct, if he has not given proper
security or has been excused from giving
security [Art. 599, Civil Code]
7. To answer for fault or negligence of the
one he alienated, leased to the object of
the usufruct or the fault or negligence of
the usufructuary’s agent [Art. 590, Civil
Code]
(3) Obligations at the Time of the
Termination of the Usufruct (RIPP)
1. To Return the thing upon termination
2. To Pay legal interest for the duration of
the usufruct on the expenses for
extraordinary repairs, if the naked owner
made the repairs [Art. 594, Civil Code]
3. To Pay proper interest on sums paid as
taxes by the owner
4. To Indemnify the naked owner for any loss
caused by the negligence of the
usufructuary or his transferees
3. Classes of Usufruct
a. Usufruct constituted on certain
rights
A usufruct may be constituted on the right to
receive rent or periodical pension, or interest
on bonds or securities.
Every payment of such shall be construed as
the fruits of such right and shall belong to the
usufructuary in proportion to the time that the
usufruct lasts [Art. 570, Civil Code].
b. Usufruct on things which gradually
deteriorate
1. Usufructuary is not responsible for the
deterioration due to wear and tear and has
no obligation to make any repairs to
restore it to its former condition
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2. Usufructuary is liable for damages due to
his fraud or negligence
3. Usufructuary is not liable for damages due
to fortuitous events [Art. 573, Civil Code].
c. Usufruct on consumable things
At the termination of the usufruct, the
usufructuary must:
1. Pay the appraised value of the
consumable thing, in case they were
appraised at delivery; or
2. Return the same quantity and quality or
pay their current price at extinguishment
of usufruct, if no appraisal has been made
[Art. 574, Civil Code].
d. Usufruct on fruit-bearing trees and
shrubs
The usufructuary may make use of the dead
trunks and those cut off or uprooted by
accident; provided, he replaces them with new
plants [Art. 575, Civil Code].
If the trees or trunks are uprooted by reason
of calamity or extraordinary event or if it is
impossible or will be too burdensome to
remove them, the usufructuary is NOT
responsible for such and he may demand that
the owner remove them [Art. 576, Civil Code].
e. Usufruct
nurseries
on
woodlands
and
Woodland
The usufructuary may enjoy all the benefits of
the woodland.
If the woodland is a copse (consists of timber
for building), the usufructuary may cut the
trees as the owner was in the habit of doing
and he may do so in a manner as not to
prejudice the preservation of the land [Art.
577, Civil Code].
Nurseries
The usufructuary may make necessary
thinnings in order that the remaining trees
may properly grow [Art. 577, Civil Code].
024477CIV
f. Usufruct of judicial action to recover
The action to recover real property may be
instituted in the name of the usufructuary. If by
reason of a favorable judgment the
usufructuary acquires title to the property, he
shall be limited to the fruits [Art. 578, Civil
Code].
g. Usufruct of part of common property
The usufructuary shall exercise all the rights
pertaining to the co-owner with respect to the
administration of the property and the
collection of its fruits [Art. 582, Civil Code].
4. Extinguishment of the Usufruct
a. By the Death of the Usufructuary,
unless a Contrary Intention Clearly
Appears
The death of the usufructuary extinguishes the
usufruct; however, the parties may stipulate
that the usufruct continue even after the
usufructuary’s death until the lapse of a period
[Art. 603, Civil Code].
b. By the Expiration of the Period for
which it was Constituted
The arrival of a certain time or event wherein
the usufruct is constituted upon extinguishes
the said usufruct [Art. 603, Civil Code].
c. By the Fulfillment of any Resolutory
Condition Provided in the Title
Creating the Usufruct
The fulfillment of the resolutory condition
extinguishes the usufruct [Art. 603, Civil
Code].
d. By Merger of the Usufruct and
Ownership in the Same Person
Where the rights of the usufruct and the owner
are merged in one and the same person, the
usufruct is extinguished [Art. 603, Civil Code].
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e. By Renunciation of the Usufructuary
The renunciation, to extinguish the usufruct,
may be made expressly or impliedly [Art. 603,
Civil Code].
f. By the Total Loss of the Thing in
Usufruct
Should the object of the usufruct be
completely destroyed or where it goes out of
commerce, the usufruct is extinguished [Art.
603, Civil Code].
g. By the Termination of the Right of
the Person Constituting the Usufruct
The usufruct is extinguished should the owner
lose right over the thing which the usufruct is
constituted in [Art. 603, Civil Code].
h. By Prescription
The usufruct is extinguished by acquisitive
prescription.
G. EASEMENTS
1. Modes of Acquiring Easements
An easement is either acquired through a
title/juridical act or by prescription [Arts. 620
and 622, Civil Code].
How Acquired
Kind of Easement
When an easement is established, all rights
necessary for its use are considered granted
[Art. 625, Civil Code].
Definition of Terms [Art. 615, Civil Code]:
● Continuous – Use of which is or may be
incessant, without intervention of any act
of man.
● Discontinuous – Those which are used
at intervals and depend upon the actions
of man
● Apparent – Those which are made known
and are continually kept in view by
external signs that reveal the use and
enjoyment of the same. Not necessary
that its sign be seen; it is sufficient if it
may be known or seen on inspection
● Non-Apparent – Shows no external
indication of their existence
a. By Title or by Something Equivalent
to a Title
Something Equivalent to a Title: Refers to
law or juridical acts such as donations,
contracts, or wills.
1. Continuous and apparent easements may
be acquired by virtue of a title [Art. 620,
Civil Code].
2. Continuous non-apparent easements, and
discontinuous ones, whether apparent or
not, are acquired only by virtue of a title
[Art. 622, Civil Code].
3. The absence of a document or proof
showing the origin of an easement which
cannot be acquired by prescription may be
cured by a deed of recognition by the
owner of the servient estate or by a final
judgment [Art. 623, Civil Code].
Title
Prescription
Continuous and
apparent (CA)
YES
YES
Deed of recognition: By an affidavit or a
formal deed acknowledging the servitude.
Continuous Nonapparent (CNA)
YES
NO
Discontinuous and
apparent (DA)
YES
NO
Final judgment: Owner of the dominant
estate must file a case in court to have the
easement declared by proving its existence
through other evidence.
Discontinuous Nonapparent (DNA)
YES
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The existence of an apparent sign of
easement between two estates, established or
maintained by the owner of both, shall be
considered, should either of them be
alienated, as a title in order that the easement
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may continue actively and passively. This is
also applicable to cases of co-ownership [Art.
624, Civil Code].
Exception: At the time the ownership of the
two estates is divided, the title of conveyance
of either of the two estates provides for the
contrary (says the easement will not
continue), or the apparent sign of easement is
removed before the execution of the deed of
conveyance [Art. 624, Civil Code].
Illustration: The presence of 4 windows was
considered an apparent sign that created a
negative easement of light and view (altius
non tollendi) i.e. not to build a structure that
will cover the windows [Amor v. Florentino,
G.R. No. L-48384 (1943)].
b. By Law (Legal Easements)
Easements imposed by law have for their
object either public use or the interest of
private persons [Art. 634, Civil Code].
These easements may be modified by
agreement of the interested parties, whenever
the law does not prohibit it, or no injury is
suffered by a third person [Art. 636, Civil
Code].
c. By Prescription
Continuous and apparent easements may be
acquired by prescription of ten (10) years [Art.
620, Civil Code].
Kind of
Easement
Computation of Time
Possession [Art. 621, Civil
Code]
of the easement, commenced to
exercise it upon the servient
estate
Negative
Easement
From the day on which the owner
of the dominant estate forbade,
by an instrument acknowledged
before a notary public, the owner
of the servient estate, from
executing an act which would be
lawful without the easement
Whether it is negative or positive depends on
the manner by which it is exercised
. Positive – Imposes upon the servient
owner the obligation of allowing
something to be done, or doing it himself
[Art. 616, Civil Code]
. Negative – Prohibits the servient owner
from doing something which he could
lawfully do if the easement did not exist
[Art. 616, Civil Code]
Mere passage which was permitted and is
under an implied license cannot be the basis
of prescription [Archbishop of Manila v.
Roxas, G.R. No. L-7386 (1912)].
2. Rights and Obligations of the
Owners of the Dominant and Servient
Estates
a. Rights of Dominant Estate Owner
Requisites:
1. The easement must be continuous and
apparent;
2. The easement must have been used for
ten (10) years; and
3. There is no need for good faith or just
title.
Kind of
Easement
Positive
Easement
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Computation of Time
Possession [Art. 621, Civil
Code]
From the day on which the owner
of the dominant estate, or the
person who may have made use
1. To use the principal easement, and all
accessory servitudes.
2. To make, at his own expense, on the
servient estate, any works necessary for
the use and preservation of the servitude,
but without altering it or rendering it more
burdensome [Art. 627 (1), Civil Code].
3. In a right of way, to ask for change in
width of easement sufficient for the needs
of the dominant estate [Art. 651, Civil
Code].
● The needs of the dominant property
ultimately determine the width of the
passage. These needs may vary from
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time to time [Encarnacion v. CA, G.R.
No. 77628 (1991)].
4. To renounce totally the easement, if he
desires to be exempt from contributing to
the expenses [Art. 628, Civil Code].
b. Obligations of Dominant Estate
Owner
1. To use the easement for the benefit of the
immovable and in the manner originally
established [Art. 626, Civil Code]
● If established for a particular purpose,
the easement cannot be used for a
different one. However, if established
in a general way, without specific
purpose, the easement can be used
for all the needs of the dominant
estate.
2. To notify the owner of the servient estate
before making repairs and to make repairs
in a manner least inconvenient to the
servient estate [Art. 627 (2), Civil Code]
3. Not to alter the easement or render it
more burdensome [Art. 627 (1), Civil
Code].
● In an easement of a right of way,
widening the road means making the
easement
more
burdensome
[Valderrama v. North Negros Sugar
Co., G.R. Nos. L-23810-12 (1925)].
4. To contribute to expenses of works
necessary for use and preservation of
servitude, if there are several dominant
estates [Art. 628, Civil Code].
● The contribution is in proportion to the
benefits which each may derive from
the work.
● If one owner does not wish to
contribute, he may exempt himself by
renouncing the easement for the
benefit of the others.
c. Rights of the Servient Estate Owner
1. To retain the ownership of the portion of
the estate on which the easement is
established [Art. 630, Civil Code]
2. To use the easement, provided he shall
also be obliged to pay the expenses
necessary for the preservation and use of
the servitude [Art. 628 (2), Civil Code]
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●
Exception to paying expenses:
When there is an agreement to the
contrary.
3. To change the place or manner of the use
of the easement, provided it be equally
convenient [Art. 629 (2), Civil Code]
In case the easement becomes very
inconvenient for the servient estate owner, or
if it prevents him from making any important
works, repairs, or improvements, the
easement may be changed, provided:
1. He offers another place/manner equally
convenient.
2. Does not cause injury to the dominant
estate owner.
3. Does not cause injury to those who have a
right to use the easement, if any [Art. 629
(2), Civil Code].
d. Obligations of Servient Estate Owner
1. Not to impair the use of the easement [Art.
629 (1), Civil Code]
2. To contribute proportionately to expenses
if he uses the easement [Art. 628 (2), Civil
Code]
● Exception: Unless there is an
agreement to the contrary.
3. To pay for the expenses incurred for the
change of location or form of the
easement
3. Modes of Extinguishment
Ways by which an easement may be
extinguished: [Art. 631, Civil Code]
(MINERRO – Merger, Impossibility, Non-use,
Expiration, Renunciation, Redemption, Other
causes)
1. By Merger in the same person of the
ownership of the dominant and
servient estates – must be absolute,
perfect and definite, and not merely
temporary. If the merger is temporary,
there is at most a suspension of the
easement, but no extinguishment.
2. By Non-user for ten (10) years – there is
inaction, and not outright renunciation.
This is due to the voluntary abstention by
the dominant owner, and not due to a
fortuitous event.
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a. If discontinuous easement, the
period is counted from the day it
ceased to be used.
b. If continuous easement, counted
from the day an act adverse to the
exercise of the right of easement took
place.
Note: use by a co-owner bars
prescription as to others as well [Art.
633, Civil Code].
3. Impossibility of use – impossibility
referred to must render the entire
easement
unusable
for
all
time.
Impossibility of using the easement due to
the condition of the tenements (e.g.
flooding) only suspends the servitude until
it can be used again.
Exception: If the suspension exceeds ten
(10) years, the easement is deemed
extinguished by non-use.
4. By the Expiration of the term or the
fulfillment of the resolutory condition applies only to voluntary temporary or
conditional easements.
5. By the Renunciation of the owner of
the dominant estate – must be specific,
clear, express (distinguished from nonuser); or
6. By the Redemption agreed upon
between the owners of the dominant
and servient estates.
Other Causes Not Mentioned in Art. 631,
Civil Code
1. Annulment and rescission of the title
constituting the voluntary easement;
2. Termination of the right of grantor of
the voluntary easement;
3. Abandonment of the servient estate;
Owner of the servient estate gives up
ownership of the easement (e.g. the strip
of land where the right of way is
constituted) in favor of the dominant
estate. The easement is extinguished
because ownership is transferred to the
dominant owner, who now owns both
properties.
4. Eminent domain; and the government’s
power to expropriate property for public
024481CIV
use, subject to the payment of just
compensation.
5. Special cause for extinction of legal
rights of way: if right of way no longer
necessary [Art. 655, Civil Code]
Right of Way Ceases to be Necessary [Art.
655, Civil Code]:
1. Owner of the dominant estate has joined it
to another abutting on a public road; or
2. A new road is opened giving access to the
isolated estate
Requisite: the public highway must
substantially meet the needs of the dominant
estate.
Owner of the servient estate may demand that
the easement be extinguished, and he must
return what he may have received by way of
indemnity. The interest thereon shall be
deemed payment for rent for the use of the
easement.
The opening of an adequate outlet to a
highway can extinguish only legal or
compulsory
easements,
not
voluntary
easements. The fact that an easement by
grant may have also qualified as an easement
of necessity does not detract from its
permanency as a property right, which
survives the termination of the necessity [Sps.
Castro v. Sps. Esperanza, G.R. No. 248763
(2020)].
4. Legal vs. Voluntary Easements
Legal easements are created by law,
whether for public use or for the interest of
private persons [Art. 619 and 634, Civil Code].
For Public Easements
1. Special laws and regulations relating
thereto (e.g. PD 1067 (Water Code) and
PD 705 (Forestry Code)).
2. By the provisions of Chapter 2, Title VII,
Book II, Civil Code.
For Private Legal Easements
1. By agreement of the interested parties
whenever the law does not prohibit it and
no injury is suffered by a 3rd person.
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2. By the provisions of Chapter 2, Title VII,
Book II.
Voluntary easements are created by the will
of the owners of the estate through contract,
last will or donation [Art. 619, Civil Code].
These must be recorded in the Registry of
Property to prejudice third persons [Art. 708,
Civil Code].
Note: Easements cannot be created by courts.
The court’s role is only to declare the
existence of an easement if in reality one
exists by virtue of law or will of the parties.
Thus, there are no judicial easements [Castro
v. Monsod, G.R. No. 183719 (2011)].
5. Kinds of Legal Easement
a. Relating to Waters
(1) Natural Drainage [Art. 637, Civil Code]
Lower estates are obliged to receive the
waters which naturally and without the
intervention of man descend from the higher
estates (as well as the stones or earth which
they carry with them).
The owner of the lower estate cannot
construct works which will impede this
easement; neither can the owner of the higher
estate make works which will increase the
burden.
Refer to Art. 46 of the Water Code which
states that “when artificial means are
employed to drain water from higher to lower
land, the owner of the highest land shall select
the routes and methods of drainage that will
cause the minimum damage to the lower
lands, subject to the requirements of just
compensation.”
51, Water Code] along their margins, to the
easement of public use in the general interest
of navigation, floatage, fishing, recreation and
salvage.
Estates adjoining the banks of navigable or
floatable rivers are subject to the easement of
towpath for the exclusive service of river
navigation and floatage. If it is necessary to
occupy lands of private ownership, the proper
indemnity shall first be paid.
(3) Abutment of a Dam [Art. 639, Civil
Code]
Whenever for the diversion or taking of water
from a river or brook, or for the use of any
other continuous or discontinuous stream, it
should be necessary to build a dam, and the
person who is to construct it is not the owner
of the banks, or lands which must support it,
he may establish the easement of abutment of
a dam, after payment of the proper indemnity.
Note: The Water Code requires a water permit
for the establishment of a dam [Art. 18, Water
Code].
(4) Drawing Water and Watering Animals
[Arts. 640 and 641, Civil Code]
Compulsory easements for drawing water or
for watering animals can be imposed only for
reasons of public use in favor of a town or
village, after payment of the proper indemnity
[Art. 640, Civil Code].
Easements for drawing water and for watering
animals carry with them the obligation of the
owners of the servient estates to allow
passage to persons and animals to the place
where such easements are to be used, and
the indemnity shall include this service [Art.
641, Civil Code].
(2) Riparian Banks [Art. 638, Civil Code]
The banks of rivers and streams, even in case
they are of private ownership, are subject
throughout their entire length and within a
zone of three (3) meters for urban areas,
twenty (20) meters for agricultural areas
and forty (40) meters for forest areas [Art.
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The width of the easement must not exceed
ten (10) meters [Art. 657, Civil Code].
(5) Aqueduct [Arts. 642-646, Civil Code]
Any person who may wish to use upon his
own estate any water of which he can dispose
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shall have the right to make it flow through the
intervening estates, with the obligation to
indemnify their owners, as well as the owners
of the lower estates upon which the waters
may filter or descend [Art. 642, Civil Code].
Requisites to Establish Easement of
Aqueduct [Art. 643, Civil Code]:
1. To prove that he can dispose of the
water and that it is sufficient for the use
for which it is intended;
2. To show that the proposed right of way is
the most convenient and the least
onerous to third persons;
3. To indemnify the owner of the servient
estate in the manner determined by the
laws and regulations.
4. Acquire a water permit [Art. 13, Water
Code]
What it cannot be imposed on: Easement of
aqueducts for private interest cannot be
imposed on buildings, courtyards, annexes, or
outhouses, or on orchards or gardens already
existing [Art. 644, Civil Code].
Right of servient estate owner: This
easement does not prevent the owner of the
servient estate from closing or fencing it, or
from building over the aqueduct in such a
manner as not to cause the latter any
damage, or render necessary repairs and
cleanings impossible [Art. 645, Civil Code].
Treatment under law: This easement is
considered as continuous and apparent, even
though the flow of the water may not be
continuous, or its use depends upon the
needs of the dominant estate, or upon a
schedule of alternate days or hours [Art. 646,
Civil Code].
In the appropriation of water, there is a need
to apply for water rights.
Any person having an easement for an
aqueduct may enter upon the servient land for
the purpose of cleaning, repairing or replacing
the aqueduct or the removal of obstructions
therefrom [Art. 49, Water Code].
Easements for aqueduct and of right of way
cannot be acquired by prescription because
024483CIV
although it may be apparent, it is
discontinuous in character. Under the Water
Code of the Philippines, all waters belong to
the state.
Water legally appropriated shall be subject to
the control of the appropriator from the
moment it reaches the appropriator from the
moment it reaches the appropriator’s canal or
aqueduct leading to the place where the water
will be used or stored and, thereafter, so long
as it is being beneficially used for the
purposes for which it was appropriated [Art. 8,
Water Code].
(6) Stop Lock or Sluice Gate [Art. 647,
Civil Code]
A person may construct a stop lock or sluice
gate in the bed of the stream from which the
water is to be taken, for the purpose of
irrigating or improving an estate.
He may demand that the owners of the banks
permit its construction, after payment of
damages, including those caused by the new
easement to such owners and to the other
irrigators.
b. Right of Way
Who May Demand [Art. 649, Civil Code]
1. The owner of the dominant estate; or
2. Any person with the real right to cultivate
or use the dominant estate e.g. a
usufructuary, a de jure possessor.
Note:
● A lessee cannot demand such easement,
because the lessor is the one bound to
maintain him in the enjoyment of the
property.
A right of way can be established through the
will of parties as well, and the provisions on
the legal easement of right of way will not
govern.
Requisites for Legal Demand to Establish
the Easement of Right of Way [Art. 649,
Civil Code; Floro v. Llenado, G.R. No. 75723
(1995)]:
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1. The dominant estate is surrounded by
other immovables owned by other
persons;
2. There must absolutely be no access i.e.
means of entrance or exit/egress to a
public highway;
3. Even if there is access, it is difficult or
dangerous
to
use,
or
grossly
insufficient;
a. Mere inconvenience in the use of an
outlet does not render the easement a
necessity.
b. An adequate outlet is one that is
sufficient for the purpose and needs of
the dominant owner, and can be
established at a reasonable expense.
c. Does not necessarily have to be by
land – an outlet through a navigable
river or a lake or the sea if suitable to
the needs of the tenement is sufficient.
d. The isolation of the immovable is not
due to the dominant owner’s own acts
e.g. if he constructs building to others
obstructing the old way; and
e. There is payment of indemnity.
How Indemnity is Computed [Art. 649, Civil
Code]
If right of way is permanent and continuous
for the needs of the dominant estate = value
of the land + amount of damage caused to the
servient estate.
If right of way is limited to necessary
passage for cultivation of the estate and for
gathering crops, without permanent way =
damage caused by encumbrance.
Rules for Establishing Right of Way
The easement of right of way shall be
established at the point least prejudicial to
the servient estate, and, insofar as
consistent with this rule, where the distance
from the dominant estate to a public
highway may be the shortest [Art. 650, Civil
Code].
always so as when there are permanent
structures obstructing the shortest distance;
while on the other hand, the longest distance
may be free of obstructions and the easiest or
most convenient to pass through [Quimen v.
CA, G.R. No. 112331 (1996)].
The fact that LGV had other means of egress
to the public highway cannot extinguish the
said easement, being voluntary and not
compulsory. The free ingress and egress
along Mangyan Road created by the voluntary
agreement between the parties is thus legally
demandable with the corresponding duty on
the servient estate not to obstruct the same
[La Vista Association v. CA, G.R. No. 95252
(1997)].
The width of the easement of right of way
shall be that which is sufficient for the needs
of the dominant estate, and may accordingly
be changed from time to time [Art. 651, Civil
Code].
Who has the Burden of Proof in an action
for Right of Way?
The burden of proving the existence of the
prerequisites to validly claim a compulsory
right of way lies on the owner of the
dominant estate.
Obligations in Permanent and Temporary
Easements of Right of Way
Permanent Right
of Way
Temporary Right of
Way
Indemnity
Consists of the Consists
of
damages and the damages only.
value of the land.
the
Necessary Repairs
Dominant owner to Servient
spend
spend.
owner
to
The
dominant Servient owner
owner
shall spend on such.
reimburse
a
proportionate share
to
Share in Taxes
The criterion of least prejudice to the servient
estate must prevail over the criterion of
shortest distance although this is a matter of
judicial appreciation. While shortest distance
may ordinarily imply least prejudice, it is not
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Temporary Right of
Way
of taxes to the
proprietor of the
servient estate.
Rules on Indemnity for Estates Enclosed
Through a Sale, Exchange, Partition or
Donation
Sale, Exchange or
Partition
Donation
Buyer, Grantee or Donee as Dominant
Owners
The
buyer
or The donee shall pay
grantee shall grant the donor indemnity.
the right of way
without indemnity
Seller, Grantor or Donor as Dominant
Owners
The
seller
or The donee shall grant
grantor shall pay the right of way
indemnity
without indemnity
Notes on Extinguishment
Extinguishment is not automatic. The owner of
the servient estate must ask for such
extinguishment.
Indemnity paid to the servient owner must be
returned without interest. Interest on account
of indemnity is deemed to be rent for use of
easement.
c. Light and View [Arts. 667-673, Civil
Code]
Easement of Light (jus luminum)
The right to admit light from the neighboring
estate by virtue of the opening of a window or
the making of certain openings.
Easement of View (jus prospectus)
The right to make openings or windows, to
enjoy the view through the estate of another
and the power to prevent all constructions or
works which would obstruct such a view or
make the same difficult.
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The easement of view necessarily includes
the easement of light, because it is impossible
to have a view only without a light. However, it
is possible to have light without a view.
How Acquired
Through a period of prescription of ten (10)
years, counted depending on whether it was
positive or negative in nature.
Nature [Art. 668, Civil Code]
1.
Positive: Opening a window through
a party wall.
a. Period of prescription begins upon the
opening being made through the wall
of another.
b. When a part owner of a party wall
opens a window therein, such act
implies the exercise of the right of
ownership by the use of the entire
thickness of the wall.
c. The easement is created only after
the lapse of the prescriptive period.
2. Negative: Opening a window through a
wall on the dominant estate.
a. Period of prescription begins upon
the formal prohibition upon the
owner of the adjoining land or
tenement.
i. Formal means that the prohibition
has been notarized. Notice and
demand were given to the owner of
the possible servient estate [Cortes
v. Yu-Tibo, G.R. No. 911 (1903)].
ii. When a person opens a window on
his own building, he is exercising
his right of ownership on his
property, which does not establish
an easement.
●
●
●
Coexistence is the right of the owner of
the adjacent property to build or plant on
his own land, even if such structures or
planting cover the window.
If the adjacent owner does not build
structures to obstruct the window, such is
considered mere tolerance and not a
waiver of the right to build.
An easement is created only when the
owner opens up a window and
subsequently prohibits or restrains the
adjacent owner from doing anything that
may tend to cut off or interrupt the light
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and the 10-year prescriptive period has
lapsed by a notarial prohibition.
Note: What is the reason why the easement of
light and view and the easement not to build a
higher easement (altius non tollendi) cannot
go together?
An easement of light and view requires that
the owner of the servient estate shall not build
to a height that will obstruct the window. They
are, as it were, the two sides of the same coin.
While an easement of light and view is
positive, that of altius non tollendi is negative
[Amor v. Florentino, supra].
Limitations as to Measurements
No windows, apertures, balconies, or other
similar projections which afford a direct view
upon or towards an adjoining land or
tenement can be made, without leaving a
distance of two (2) meters between the wall in
which they are made and such contiguous
property. Neither can side or oblique views
upon or towards such conterminous property
be had, unless there be a distance of sixty
(60) centimeters [Art. 670, Civil Code].
In cases of direct views from the outer line of
the wall when the openings do not project, the
distance shall be measured from the outer line
of the latter when they do, and in cases of
oblique view from the dividing line between
the two properties [Art. 671, Civil Code].
Exception: In buildings separated by a public
way or alley, not less than three (3) meters
wide, the distances required do not apply [Art.
672, Civil Code].
Exception: The distances may be stipulated
by the parties, provided that the distance
should not be less than what is prescribed by
the law, which is two (2) meters and sixty (60)
centimeters [Art. 673, Civil Code].
Whenever by any title a right has been
acquired to have direct views, balconies or
belvederes overlooking an adjoining property,
the owner of the servient estate cannot build
thereon at less than a distance of three (3)
meters to be measured in the manner
provided in Art. 671 [Art. 673, Civil Code].
024486CIV
Note: Breach of the required distances results
in the prescriptive period not running [Art. 670,
Civil Code].
Notes on the Acquisition of the Easement
Period of acquisitive prescription depends
upon whether the easement of light and view
is positive or negative.
If positive, then the prescription period is
counted from the day the window is opened.
If negative, then the prescription period is
counted from the formal prohibition made on
the owner of the servient estate [Art. 668, Civil
Code].
H. NUISANCE
1. Classes
Definition [Art. 694, Civil Code]
A
nuisance
is
any
act,
omission,
establishment, condition of property, or
anything else which:
1. Injures or endangers the health or
safety of others; (e.g. House in danger of
falling, fireworks or explosives factory,
houses without building permits and
without provisions for disposal of waste
matter) [Ayala v. Barretto, G.R. No. L9966 (1916)]; or
2. Annoys or offends the senses; (e.g.
leather factory, garbage cans, pumping
station with a high chimney, smoke, noise)
[Bengzon v. Prov. of Pangasinan, G.R.
No. L-41941 (1936)]; or
3. Shocks, defies, or disregards decency
or morality; (e.g. Movie actress strips
nude in the lobby of a movie house for
sake of publicity for a movie) [Paras]; or
4. Obstructs or interferes with the free
passage of any public highway or street,
or any body of water; (e.g. Permanent
obstructions on barrio roads, such as
illegally constructed houses, are injurious
to public welfare and convenience. The
occupation and use of private individuals
of public places devoted to public use
constitute public and private nuisances
and nuisance per se) [Alolino v. Flores,
supra]; or
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5. Hinders or impairs the use of property
(e.g. Illegal constructions or activities on
another person or entity’s land).
due hearing thereon in a tribunal authorized to
decide whether such a thing does in law
constitute a nuisance [Aquino v. Municipality
of Malay, supra].
Differentiate Nuisance from Negligence:
Negligence is penalized because of lack of
proper care, but a nuisance is wrong not
because of the presence or absence of care,
but because of the injury caused [Paras
quoting 39 AmJur 282].
Nuisances have been divided into two
classes: Nuisances per se, and nuisances per
accidens [Iloilo Cold Storage v. Municipal
Council, G.R. No. L-7012 (1913)]
Abatement: No authority has the right to
compel the abatement of a particular thing or
act as a nuisance without reasonable notice to
the person alleged to be maintaining or doing
the same of the time and place of hearing
before a tribunal authorized to decide whether
such a thing or act does in law constitute a
nuisance [Monteverde v. Generoso, supra].
a. According to Nature
b. According to Scope of Injurious
Effects
(1) Nuisance per se
(1) Public Nuisance
Those which are unquestionably and under
all circumstances nuisances, such as
gambling houses, houses of ill fame, etc.
[Iloilo Cold Storage v. Municipal Council,
supra].
Nuisance that affects a community or
neighborhood or any considerable number of
persons [Art. 695, Civil Code].
Generally defined as an act, occupation, or
structure, which is a nuisance at all times and
under any circumstances, regardless of
location or surrounding [Aquino v. Municipality
of Malay, G.R. No. 211356 (2014)].
One that is not included in the foregoing
(public nuisance) definition [Art. 695, Civil
Code].
Abatement: Since they affect the immediate
safety of persons and property, they may be
summarily abated under the undefined law of
necessity [Monteverde v. Generoso, G.R. No.
28491 (1928)].
(2) Nuisance per accidens
Those that are nuisances because of
particular
facts
and
circumstances
surrounding the otherwise harmless cause of
the nuisance [Iloilo Cold Storage v. Municipal
Council, supra].
Generally a question of fact, to be determined
in the first instance before the term nuisance
can be applied to it.
That which depends upon certain conditions
and circumstances, and its existence being a
question of fact, it cannot be abated without
024487CIV
(2) Private Nuisance
One which violates only private rights and
produces damages to one or a few specific
persons.
2. Doctrine of Attractive Nuisance
One who maintains on his premises
dangerous instrumentalities or appliances of a
character likely to attract children at 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 [Jarco
Marketing Corp. v. CA, G.R. No. 129792
(1999)].
Reason for Doctrine:
Although the danger is apparent to those of
age, it is so enticing or alluring to children of
tender years as to induce them to approach
[Ibid].
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Basis of Liability:
When one keeps in his premises dangerous
instrumentalities or appliances that are likely
to attract children, and fails to exercise
ordinary care to prevent children from playing
therewith
the nuisance, and that it is within his
power to abate the same.
c. If he cannot physically abate the
nuisance without legal action against
another person, then he shall not be
liable for such nuisance.
Application to Bodies of Water
1. General Rule: Not applicable to bodies of
water, artificial [merely duplicating nature]
or natural
2. Exception: There is some unusual
condition or artificial feature other than the
mere water and its location
3. Rationale: Children are earlier instructed
so that they are sufficiently presumed to
know the danger [nature has created
streams, lakes, and pools which attract
children]
3. A Private person or public official shall
be liable for damages if:
a. In an extrajudicial abatement;
b. He causes unnecessary injury; or
c. An alleged nuisance is later declared
by the courts to be not a real nuisance
[Art. 707, Civil Code].
Illustration: If the owner of private property
creates an artificial pool on his own property,
merely duplicating the work of nature without
adding any new danger, he is not liable
because of having created an “attractive
nuisance” [Hidalgo Enterprises v. Balandan,
G.R. L-3422 (1952)].
3. Liability in Case of Nuisance
Who are Liable [PrEsoPp]
3. Person responsible for creating the
nuisance; If the prejudice exceeds the
inconveniences that such proximity
habitually brings, the neighbor who
causes such disturbance is held
responsible for the resulting damage,
being guilty of causing nuisance [Velasco
v. Manila Electric Co., G.R. No. L-18390
(1971)].
3. Every successive owner or possessor
of property who fails or refuses to abate
a nuisance in that property started by a
former owner or possessor is liable
therefore in the same manner as the one
who created it [Art. 696, Civil Code];
a. Provided that he knew of the nuisance
and must knowingly fail or refuse to
abate the nuisance [Paras citing
Lambs v. Roberts, 196 Ala. 679].
b. To render the new owner or possessor
liable, it is necessary that he has
actual knowledge of the existence of
024488CIV
4. Regulation of Nuisances
General Rule
Lapse of time cannot legalize any nuisance,
whether public or private [Art. 698, Civil
Code].
Note: Arts. 698 and 1143 (2) do not apply to
easements which are extinguished by
obstruction or non-use for ten (10) years
under Art. 631 [Ongsiako v. Ongsiako, G.R.
No. L-7510 (1957)].
The abatement of a nuisance does not
preclude the right of any person injured to
recover damages for its past existence [Art.
697, Civil Code].
Extinctive Prescription
No Extinctive Prescription to abate a nuisance
or Acquisitive Prescription for the right to use
of the property that creates such nuisance.
The action to abate a public or private
nuisance
is
not
extinguished
by
prescription [Art. 1143 (2), Civil Code].
Defenses to Action Remedies of the
Property Owner
A person whose property is seized or
destroyed as a nuisance may resort to the
courts to determine whether or not it was in
fact a nuisance.
1. An action for replevin;
2. To enjoin the sale or destruction of the
property;
3. An action for the proceeds of its sale and
damages if it has been sold; or
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4. To enjoin private parties from proceeding
to abate a supposed nuisance.
a. Public Nuisance
Remedies Against a Public Nuisance
1. A prosecution under the Penal Code or
any local ordinance; or
2. A civil action; or
3. Abatement, without judicial proceedings
[Art. 699, Civil Code].
Note: The three remedies against a public
nuisance enumerated under Art. 699 are not
exclusive but cumulative [De Leon].
Criminal Prosecution as a Remedy
Criminal prosecution is instituted only for
“public nuisance” and not for a private
nuisance. The action is brought in the name of
the “People of the Philippines” since public
nuisances are considered as offenses against
the State [De Leon].
Judgment with Abatement as a Remedy
If a civil action is brought by reason of the
maintenance of a public nuisance, such action
shall be commenced by the city or municipal
mayor [Art. 701, Civil Code].
Process for Judicial Abatement (through
Civil Action):
General Rule: If a civil action is brought by
reason of the maintenance of a public
nuisance, such action shall be commenced by
the city or municipal mayor [Art. 701, Civil
Code].
Exception: A private person may file an
action on account of a public nuisance if it is
especially injurious to him [Art. 703, Civil
Code].
Extrajudicial Abatement as a Remedy
1. It must be reasonably and efficiently
exercised.
2. Means employed must not be unduly
oppressive on individuals.
3. No more injury must be done to the
property or rights of individuals than is
necessary to accomplish the abatement.
4. No right to compensation if property
taken or destroyed is a nuisance.
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Process for Extrajudicial Abatement:
1. The district health officer shall take care
that one or all of the remedies against a
public nuisance are availed of [Art. 700,
Civil Code].
2. The district health officer shall determine
whether or not abatement, without judicial
proceedings, is the best remedy against a
public nuisance [Art. 702, Civil Code].
(1) Summary Abatement
Nuisances per se
Since they affect the immediate safety of
persons and property, they may be
summarily abated under the undefined law of
necessity [Monteverde v. Generoso, supra].
Nuisances per accidens
If no compelling necessity requires the
summary abatement of a nuisance, the
municipal authorities, under their power to
declare and abate nuisances, do not have the
right to compel the abatement of a particular
thing or act as a nuisance without
reasonable notice to the person alleged to
be maintaining or doing the same of the
time and place of hearing before a tribunal
authorized to decide whether such a thing or
act does in law constitute a nuisance [Iloilo
Cold Storage v. Municipal Council, supra)].
(2) Need for Abatement
One of the most serious hindrances to the
enjoyment of life and property is a nuisance.
Provisions for its abatement are indispensable
[Report of the Code Commission, p. 51].
(3) Who May Abate Public Nuisances
District Health Officer
The district health officer shall take care that
one or all of the remedies against a public
nuisance are availed of [Art. 700, Civil Code].
Note: If the district health officer or the city
engineer is not consulted beforehand in the
case of extrajudicial abatement, the person
doing the abating is not necessarily liable.
They would be liable for damages under Art.
707 if the abatement is carried out with
unnecessary injury, or if the alleged nuisance
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is later declared by the courts to be not a real
nuisance [Paras].
Private Persons
Any private person may abate a public
nuisance which is especially injurious to him
by removing or, if necessary, destroying the
thing which constitutes the same, without
committing a breach of the peace, or doing
necessary injury [Art. 704, Civil Code].
Requisites of the Right of a Private
Individual to Bring a Civil Action to Abate a
Public Nuisance [Art. 704, Civil Code]
1. That demand be first made upon the
owner or possessor of the property to
abate the nuisance;
2. That such demand has been rejected;
3. That the abatement be approved by the
district health officer and executed with
the assistance of the local police; and
4. That the value of the destruction does
not exceed P3,000.
Other Persons Authorized by Law
Other persons may be authorized by law to
remove nuisances such as in Sitchon v.
Aquino [G.R. No. L-8191 (1956)], where the
Manila charter authorized the City Engineer to
do so.
Rules on Abatement
1. The right must be exercised only in
cases of urgent or extreme necessity.
The thing alleged to be a nuisance must
exist at the time that it was alleged to be a
nuisance.
2. A summary abatement must be resorted
to within a reasonable time after
knowledge of the nuisance is acquired or
should have been acquired by the person
entitled to abate.
3. The person who has the right to abate
must give reasonable notice of his
intention to do so, and allow thereafter a
reasonable time to enable the other to
abate the nuisance himself.
4. The means employed must be
reasonable and for any unnecessary
damage or force, the actor will be liable.
The right to abate is not greater than the
necessity of the case and is limited to the
removal of only so much of the
024490CIV
objectionable thing as actually causes the
nuisance.
5. The property must not be destroyed
unless it is absolutely necessary to do so.
b. Private Nuisance
Remedies Against a Private Nuisance [Art.
705, Civil Code]:
1. A civil action; or
2. Extrajudicial abatement
Requisites for a Valid Extrajudicial
Abatement [Art. 706, Civil Code]:
The procedure for extrajudicial abatement of a
public nuisance by a private person will also
be followed.
Note: See municipal health officer under Arts.
700 and 702, Civil Code. No breach of peace
or unnecessary injury.
I. MODES OF ACQUIRING
OWNERSHIP
Modes of Acquiring Ownership [Art. 712,
Civil Code]
1. Occupation - Arts. 713-720, Civil Code
2. Donation - Arts. 712, 725-726, Civil Code
3. Prescription and Laches - Arts. 712,
1106-1107, Civil Code
4. Intellectual Creation - Arts. 721-724,
Civil Code; Intellectual Property Code
5. Testate and Intestate Succession - Arts.
774-1105, Civil Code
6. By tradition, in consequence of certain
contracts - Arts. 1458-1637, Civil Code
Note: Only items (a), (b) and (c) are discussed
in Property. Item (d) is discussed in the
Intellectual Property Code part of the
Commercial Law reviewer. Items (e) and (f)
are discussed in the Succession and Sales
part, respectively, of the Civil Law reviewer.
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Pigeons and Fish
General Rule: Belongs to the owner of the
breeding place into which they have moved
[Art. 717, Civil Code];
1. Occupation
a. Requisites
1. The subject must have the intention to
acquire ownership and the necessary
capacity to consent.
2. The object must be appropriable by
nature and without an owner.
3. There must be an act of taking
possession of the thing (not necessarily
material holding so long as the thing is
considered subjected to the disposition of
the possessor)
b. Rules
3. On Other Personal Property
Abandoned Movables
May be acquired, as long as the abandonment
made by the prior possessor is voluntary and
intentional [De Leon].
Lost Movables (except treasure) [Art. 719,
Civil Code]
1. On Land
Ownership of land cannot be acquired by
occupation [Art. 714, Civil Code].
2. On animals
Wild Animals
Possessed only while under a person’s control
[Art. 560, Civil Code].
Domesticated Animals
Domesticated animals are those who retain
the habit of returning to the premises of their
owner [Art. 560, Civil Code]; and,
Claimable by prior owner within twenty (20)
days from occupation by another person [Art.
716, Civil Code].
Swarm of Bees
Prior owner has the right to pursue them to
another’s land, but is liable for damages the
other person may suffer [Art. 716, Civil Code].
Other persons may occupy or retain the
swarm if prior owner:
1. Has not pursued the swarm; or,
2. Ceased to pursue the swarm within two
(2) consecutive days from movement
towards other person’s property [Art. 716,
Civil Code]
024491CIV
Exception: Belongs to prior owner if
movement was enticed by some artifice or
fraud [Art. 717, Civil Code].
Known/Unknown Possessor
1. If prior possessor is known, the thing
must be returned to him/her;
2. If prior possessor is unknown, the thing
must be deposited with the mayor of the
city/municipality where it was found;
Procedure [Arts. 719-720, Civil Code]
1. The mayor publicly announces the
finding of the thing for two (2) consecutive
weeks in the way he deems best.
2. If the item cannot be kept without
deterioration or without expenses that
considerably diminish its value, it shall be
sold at public auction eight (8) days
after the publication.
3. If the owner does not appear within six (6)
months from publication, the thing or its
value shall be awarded to the finder.
4. If the owner appeared in time, the owner
is obliged to pay the finder one-tenth
(1/10) of the price of the thing.
Hidden Treasure
Definition: Any hidden and unknown
deposit of money, jewelry, or other precious
objects the lawful ownership of which does not
appear [Art. 439, Civil Code].
Ownership
General Rule: Belongs to the owner of the
property where it is found [Art. 438, Civil
Code].
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Exceptions [OTI-other, trespasser, interest]:
1. If found on (a) property of another, the
State, or any of its subdivisions and (b) by
chance;
● Only one-half (1/2) shall be allowed to
the finder;
2. If finder is a Trespasser;
● Finder is not entitled to any share;
and,
3. If things are of Interest to science or the
arts;
● The State may acquire them at their
just price, which shall be divided in
conformity with the rules stated
b. Although under Art. 725, donation is
an act, it is really a contract. The
essential requisites of consent, subject
matter, and cause must be present
[Tolentino].
5. Necessary Form prescribed by law.
2. Tradition
Donation transfers the title of the property
from the donor to the donee. It effectively
reduces the patrimony of the donor.
Actual Delivery
Deemed made when the thing sold is placed
in the control and possession of the vendee
[Art. 1497, Civil Code].
Not always essential to passing of title [Art.
1477, Civil Code].
Parties may agree when and on what
conditions the ownership shall pass to the
buyer [e.g. Art. 1478 where ownership will
only pass after full payment of the price].
Constructive Delivery
1. Execution of public instrument
2. Symbolic delivery
3. Traditio longa manu (long hand)
4. Traditio brevi manu (short hand)
5. Traditio constitutum possessorium
6. Quasi-tradicion
7. Delivery to a Common Carrier
3. Donation
a. Requisites [CADAF]
1.
2.
3.
4.
024492CIV
Capacity of donor to make a donation;
Donative intent (Animus donandi);
Delivery (actual or constructive);
Acceptance by the donee; and,
a. Acceptance by the donee is required
because donation is never obligatory.
One cannot be compelled to accept
the generosity of another.
b. Features
Nature and Effect of Donation
It is not enough that the act is gratuitous, there
must also be the intent to benefit the donee.
[Heirs of Reyes v. Calumpang, G.R. No.
138463 (2006)]
c. Persons Who May Give/Receive a
Donation
General Rule: All persons who may contract
and dispose of their property [Art. 735, Civil
Code].
Exceptions:
1. Guardians and trustees cannot donate the
property entrusted to them [Art. 736, Civil
Code];
2. Minors and others who cannot enter into a
contract may become donees but
acceptance shall be done through their
parents or legal representatives [Art. 741,
Civil Code];
3. For donation to conceived and unborn
children, acceptance may be made by
persons who would legally represent them
if they were already born [Art. 742, Civil
Code];
4. Donations made to incapacitated persons
shall be void (though simulated under the
guise of another contract or through a
person who is interposed) [Art. 743, Civil
Code]; and,
5. When the same thing is donated to two or
more different donees, rules on double
sale govern [Art. 744, Civil Code];
a. If movable property - ownership goes
to the first possessor in good faith;
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b. If immovable property - ownership
goes to the first registrant in good faith
[Art. 1544, Civil Code].
Mortis Causa
deferred until donor’s
death
d. Classifications
1. As to taking effect
a. Donation inter vivos - takes effect
during the donor’s lifetime [Arts. 729731, Civil Code]
b. Donation mortis causa - takes effect
upon the donor’s death [Art. 728, Civil
Code]
c. Donation propter nuptias - made by
reason of marriage and before the
celebration of which, for the
spouses [Art. 82, Family Code]
2. As to consideration
a. Simple Donation - the consideration is
the liberality of the donor or based on
the donee’s merits [Arts. 725-726,
Civil Code]
b. Remuneratory Donation - given on
account of the services provided by
the donee to the donor which do not
constitute a demandable debt
c. Modal Donation - imposes a burden
on the donee which is less than the
value of the gift
d. Onerous Donation - where the value
of the donated property exceeds the
value of the thing it is given for [Art.
733, Civil Code]
3. As to extinguishment
a. Pure Donation - not subject to a
condition or period
b. Conditional - subject to a condition
c. With a term - subject to a resolutory or
suspensive condition
e. Distinctions Between Mortis Causa
and Inter Vivos Donations
Mortis Causa
Made
in Made out of donor’s
contemplation
of generosity.
the donor’s death.
Void if the donor Valid even if
survives the donee. donor survives
donee.
the
the
Governed by the Governed
formalities for the formalities
validity of a will.
donations.
the
of
by
May
only
be Must be accepted by
accepted after the the donee during his
donor’s death.
lifetime.
Revocable at any
time and for any
reason before the
death of the donor.
Cannot be revoked
except for grounds
provided by law such
as in officiousness
and ingratitude. [Art.
760 and 765, Civil
Code]
Right to dispose of
the
property
donated is retained
by the donor during
his lifetime.
Right to dispose of
the property donated
is conveyed upon the
donation.
Subject to estate Subject
tax.
tax.
to
donor’s
f. Form
1. Movables
The donation of a movable may be made
orally or in writing. [Art. 748, Civil Code]
Inter Vivos
Takes effect upon Takes effect during
the death of the the lifetime of the
donor.
donor, independent of
the donor’s death.
Note:
execution
024493CIV
Inter Vivos
Actual
may be
Rules:
1. If the value of the movable property is
P5,000 or less, the donation may be made
orally or in writing.
. Orally - must be accompanied with
simultaneous delivery; otherwise void.
. In Writing - valid even if without
simultaneous delivery.
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2. If the value of the movable property
exceeds P5,000, the donation AND
acceptance must be done in writing;
otherwise, the donation is void.
2. Immovables
The donation of an immovable property must
be made in a public document. The
acceptance of the donation may be made in
the same document or in a separate
instrument [Art. 749, Civil Code].
Rules:
1. When donation and acceptance are in the
same instrument:
a. Donation must be in a public
instrument; and
b. Properties donated and the charges
must be specified therein.
2. When donation and acceptance are in
separate instruments:
a. Donation must be in a public
instrument;
b. Properties donated and the charges
must be specified therein;
c. Acceptance must be made in a public
document;
d. Done during the lifetime of the donor;
e. Donor must be notified of the
acceptance of the donee; and
f. Notification must be noted in the
instruments.
3. Onerous Donations
Governed by the Laws on Obligations and
Contracts.
b. Limitation
applies
to
simple,
remunerative and modal donations but
not to onerous ones nor to donations
mortis causa.
2. Donations cannot comprehend future
property [Art. 751, Civil Code]
a. Future property: Anything which the
donor cannot dispose of at the time of
the donation
b. Rationale: Nobody can dispose of
that which does not belong to him.
c. Future inheritance cannot be donated
because it is considered future
property. However, upon the death of
his predecessor, the inheritance
ceases to be future and consequently,
may be the object of donation [Osorio
v. Osorio, G.R. No. L-16544 (1921)].
3. Amount of donation limited to what donor
may give by will [Art. 752, Civil Code]
a. A person may not donate more than
he can give by will. A donation, which
exceeds what the donor may give
or receive by will, is considered
inofficious.
b. Limitation applies where the donor has
forced or compulsory heirs.
h. Reduction and Revocation
Distinguished
Reduction
Revocation
Total withdrawal of
amount, whether
the legitime is
impaired or not
Amount is only insofar
as the legitime is
prejudiced
Benefits the donor
Benefits the donor’s
heirs (except when
made on the ground
of the appearance of
a child)
g. Effects and Limitations
The patrimony or assets of the donor is
decreased, while that of the donee is
increased.
Limitations
1. Reservation of sufficient means for
support of donors and relatives [Art. 750,
Civil Code]
a. Donation without reservation is not
null and void in its entirety; it is only
subject to reduction by the court;
024494CIV
Revocation due to birth, appearance, or
adoption of a child applies only to donations
inter vivos and not to donations mortis causa,
onerous donations, and donations propter
nuptias.
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Situations Contemplated
1. The existence of children, if the donor
has no such child when the donation was
made [Art. 760, Civil Code];
2. The donee’s failure to comply with any of
the conditions the former imposed upon
the latter [Art. 764, Civil Code];
3. The donee’s ingratitude [Art. 765, Civil
Code];
4. Inofficious donations [Art. 752, Civil
Code]; or
5. Multiple donations cannot be covered by
the disposable portion in case of
succession [Art. 773, Civil Code].
Ordinary
Ordinary acquisitive prescription requires
possession of things in good faith and with
just title for the time fixed by law.
Note: Ownership and other real rights over
immovable property are acquired by ordinary
prescription through possession of ten (10)
years [Art. 1134, Civil Code].
4. Prescription
2. Extinctive Prescription
a. Definition
By prescription, one acquires ownership and
other real rights through the lapse of time in
the manner and under the conditions laid
down by law. In the same way, rights and
conditions are lost by prescription [Art. 1106,
Civil Code].
Note: For purposes of acquiring ownership,
only acquisitive prescription is being referred
to.
b. Who May Acquire Ownership by
Prescription
Persons who are capable of acquiring
property or rights by the other legal modes
may acquire the same by means of
prescription [Art. 1107 (1), Civil Code].
Minors and other incapacitated persons may
acquire property or rights personally or
through their parents, guardians, or legal
representatives [Art. 1107 (2), Civil Code].
c. Types
1. Acquisitive Prescription
The acquisition of ownership and other real
rights through possession in the concept of
ownership of a thing in the manner and
condition provided by law.
024495CIV
Extraordinary
Extraordinary acquisitive prescription is the
acquisition of ownership and other real rights
without need of title or of good faith or any
other condition.
It is the loss or extinguishment of property
rights or actions through the possession by
another of a thing for the period provided by
law or through failure to bring the necessary
action to enforce one’s right within the period
fixed by law.
Requisites
1. Capacity to acquire by prescription;
2. A thing capable of acquisition by
prescription;
3. Possession of the thing under certain
conditions; and
4. Lapse of time provided by law
Periods
1. Movables
a. 4 years ‐ If in good faith; and,
b. 8 years ‐ If in bad faith [Art. 1140 in
relation to Art. 1132, Civil Code]
2. Immovables
a. 10 years ‐ If in good faith
b. 30 years ‐ If in bad faith
3. Distinctions Between Acquisitive
and Extinctive Prescription
Acquisitive
Prescription
Extinctive
Prescription
Acquisition
of Extinction of the right
ownership
and due to the passage of
other real rights time.
through possession
in the concept of
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Acquisitive
Prescription
CIVIL LAW
Extinctive
Prescription
Prescription
Based on a fixed Not based on a fixed
time.
time.
ownership of a
thing in the manner
and
condition
provided by law.
d. When Inapplicable
Also referred to as Also referred to as
adverse
litigation of action.
possession
or
usucaption.
Expressly vests the Bars the
property and raises action.
a new title in the
occupant.
right
[Morales v. CFI, G.R. No. L-52278 (1980)]
4. Distinctions Between
Prescription and Laches
Extinctive
Laches
Concerned with the Concerned with the
fact of delay.
effect of delay.
A matter of time
Principally a question
of
inequity
of
permitting a claim to
be enforced, this
inequity
being
founded on some
subsequent change in
the condition or the
relation of the parties.
Statutory.
Not statutory.
Applies at law.
Applies at equity.
Cannot be availed Being a defense of
of unless it is equity, need not be
especially
specifically pleaded.
pleaded as an
affirmative
allegation.
024496CIV
By Offender
The offender can never acquire, through
prescription, movable properties possessed
through a crime such as robbery, theft, or
estafa [Art. 1133, Civil Code].
of
The
controlling The
controlling
feature
is
the feature is the owner
claimant
in out of possession.
possession.
Prescription
Laches
Note: The person who cannot invoke the right
of prescription is the offender or person who
committed the crime or offense, not a
subsequent transferee who did not participate
in the crime or offense, unless the latter knew
the criminal nature of the acquisition of the
property by the transferor.
Registered Lands
No title to registered land in derogation of the
title of the registered owner shall be acquired
by prescription or adverse possession
[Property Registration Decree, PD 1529].
Actions to Demand a Right of Way; to
Abate a Nuisance [Art. 1143, Civil Code]
Action to Quiet Title if Plaintiff is in
Possession
When the plaintiff is in possession of the
property, the action to quiet title does not
prescribe. The reason is that the owner of the
property or right may wait until his possession
is disturbed or his title is assailed before
taking steps to vindicate his right.
Void Contracts
The action or defense for the declaration of
the inexistence of a contract does not
prescribe [Art. 1410, Civil Code].
Action to Demand Partition; Distinguished
from Laches
No prescription shall run in favor of a coowner or co-heir against his co-owners or coheirs so long as he expressly or impliedly
recognizes the co-ownership [Art. 494, Civil
Code].
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Property of Public Dominion
Prescription, both acquisitive and extinctive,
does not run against the State in the exercise
of its sovereign function to protect its interest
except with respect to its patrimonial property
which may be the object of prescription [Art.
1113, Civil Code].
e. Prescription of Ownership and
Other Real Rights
Ownership and other real rights over
immovable property are acquired by ordinary
prescription through possession of ten (10)
years [Art. 1134, Civil Code].
f. Prescription of Actions
a. To Recover Movables
General Rule: Eight (8) years from the time
possession was lost [Arts. 1132 and 1140,
Civil Code]
Exceptions:
1. If action is brought after four (4) years
when the possessor has already acquired
title
by
ordinary
acquisitive
prescription [Art. 1132, Civil Code].
2. If the possessor acquired the movable in
good faith at a public sale, the owner
cannot
obtain
its
return
without
reimbursing the price paid [Art. 559, Civil
Code].
b. To Recover Immovables
General Rule: Real actions prescribed after
thirty (30) years [Art. 1141, Civil Code].
Exception: The possessor has acquired
ownership of the immovable by ordinary
acquisitive prescription through possession of
ten (10) years [Art. 1134, Civil Code].
c. Other Actions
CIVIL LAW
registration or date of issuance of
certificate of title over the property [Art.
1144, Civil Code]
Notes:
1. An action for reconveyance may be barred
by prescription. However, one recognized
exception is when the property in dispute
is in actual possession of the plaintiff.
Prescription does not run against the
plaintiff in actual possession of the
disputed land because such plaintiff has a
right to wait until his possession is
disturbed or his title is questioned before
initiating an action to vindicate his right. As
such, his undisturbed possession gives
him the continuing right to seek the aid of
a court of equity to determine the nature of
the adverse claim of a third party and its
effect on his title [Heirs of Bernardo and
Ronquillo v. Sps. Gamboa and Caballero,
G.R. 23305 (2020)].
2. An action for reconveyance and
cancellation of title prescribed in ten (10)
years from the time of the issuance of the
Torrens title over the property [Heirs of
Sumagang v. Aznar Enterprises, G.R. No.
214315 (2019)].
Interruption of Prescription
When Interrupted
1. When the action is filed before the court;
2. When there is a written extrajudicial
demand by the creditors; and,
3. When
there
is
any
written
acknowledgment of the debt by the
debtor.
Note: An interruption of the prescriptive
period wipes out the period that has
elapsed, sets the same running anew, and
creates a fresh period for the filing of an
action [Selerio v. Bancasan, G.R. No.
222442 (2020)].
Types of Interruption
1. Natural – Any natural cause that interrupts
the possession for more than one year
[Art. 1121, Civil Code]
2. Civil [Art. 1123, Civil Code] –
Action for Reconveyance
1. Based on fraud: Four (4) years from the
discovery of fraud [Art. 1391, Civil Code]
2. Based on implied or constructive trust:
Ten (10) years from the alleged fraudulent
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a. For acquisitive prescription – starts
from the time judicial summons are
received;
b. For extinctive prescription – starts
from the time action is filed in court,
written extrajudicial demand by the
creditors is received, or when there is
written acknowledgment of the debt by
the debtor [Art. 1155, Civil Code].
Suspension in Case of Acquisitive
Prescription – The period of interruption shall
be counted in favor of prescription (i.e., as if
interruption never happened but is merely
suspended) if:
1. Judicial summons is void;
2. The plaintiff desists from the complaint or
allows the proceedings to lapse;
3. The possessor is absolved from the
complaint.
Effect of Interruption
All the benefits acquired so far from the
possession
ceases.
024498CIV
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024499CIV
FOR UP CANDIDATES ONLY
LAND TITLES AND DEEDS
CIVIL LAW
4. Background
LAND TITLES AND
DEEDS
LAND TITLES AND DEEDS
I. TORRENS SYSTEM
Land Title refers to the evidence of the right of
the owner or the extent of his interest, by
which he can maintain control, and as a rule,
assert the right to exclusive possession and
enjoyment of the property. [Peña]
B. Concepts
A. In General
1. Land Title
1. The Torrens System
A system for registration of land under which,
upon landowner’s application, the court may,
after appropriate proceedings, direct the
issuance of a certificate of title. [Black’s Law
Dictionary]; those systems of registration of
transactions with interest in land whose
declared object is, under governmental
authority, to establish and certify to the
ownership of an absolute and indefeasible title
to realty, and to simplify its transfer [Grey Alba
v. De la Cruz, G.R. No. L-5246 (1910)],
2. Nature
The real purpose of the Torrens system of
registration is to quiet title to land; to put a
stop forever to any question of the legality of
the title, except claims which may arise
subsequent thereto. [Legarda v. Saleeby,
G.R. No. 8936 (1915)]
Land Title refers to the evidence of the right
of the owner or the extent of his interest, by
which he can maintain control, and as a rule,
assert the right to exclusive possession and
enjoyment of the property. [Peña]
Title and Certificate of Title Distinguished
[Castillo v. Escutin, G.R. No. 171057 (2009)]
Title
Lawful cause or
ground of
possessing that
which is ours.
Certificate of Title
It is a mere evidence
of ownership; it is
not the title to the
land itself.
That which
constitutes a just
cause of exclusive
possession, or which
is the foundation of
ownership of
property
3. Purpose
The real purpose of the Torrens system of
registration is to quiet title to land; to put a
stop forever to any question of the legality of
the title, except claims which may arise
subsequent thereto. [Legarda v. Saleeby,
supra]
General Rule: A title once registered cannot
be impugned, altered, changed, modified,
enlarged, or diminished.
Exception: Direct proceeding permitted by
law, usually for the protection of innocent third
persons
024500CIV
The title is a conclusive evidence of ownership
and it cannot be attacked collaterally [Castillo
v. Escutin, supra].
2. Deed
Deed is a written instrument executed in
accordance with law, wherein a person grants
or conveys to another certain land, tenements
or hereditaments. [Peña]
Elements of A Deed
1. Grantor
2. Grantee
3. Words of Grant
4. Description of the property involved
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5. Signature of the grantor
6. At least two (2) witnesses
7. Notarial acknowledgment
determined and confirmed or recognized so
that such land and the ownership thereof may
be recorded in a public registry.
3. Estate
Note: Registration does not vest title. It is not
a mode of acquiring ownership but is merely
evidence of such title over a particular
property
Estate represents the nature, extent, degree,
and quantity of a person’s interest in land.
Types of Estate
1. Freehold Estate – Indicates title of
ownership
a. Fee Simple – An absolute title;
Absolute estate in perpetuity; Title to
land is conferred upon a man and his
heirs absolutely and without any
limitation imposed upon the estate
b. Fee Tail – One designed to pass title
from grantee to his heirs, in the intent
of the grantor being to keep the
property in the grantee’s line of issue
c. Life Estate – One held for the
duration of the life of the grantee; In
some cases, it may terminate earlier
as by forfeiture
2. Less-than-Freehold Estate – Signifies a
right short of title
a. Estate for Years – In the nature of a
lease short of title; grantee or lessee
takes over possession of the land for a
period agreed upon but the grantor
retains the legal title to the property
b. Tenancy from period to period –
Also in the nature of a lease which
may run from month to month or from
year to year, with the peculiarity of
automatic renewal from time to time,
unless expressly terminated by either
party
c. Tenancy at will – Another form of
lease agreement where a person is
permitted to occupy the land of
another without any stipulation as to
period, but either party reserves the
right to terminate the occupation at will
or at any time
4. Land Registration
Land Registration is a judicial or
administrative proceeding whereby a person’s
claim of ownership over a particular land is
024501CIV
a. Nature of Land Registration
Judicial proceedings for the registration of
lands throughout the Philippines shall be in
rem and shall be based on the generally
accepted principles underlying the Torrens
system [Sec. 2, par. 1, PD 1529]
It is therefore binding on the whole world
because “by the description in the notice (of
initial hearing of the application for
registration) “To Whom It May Concern,” all
the world are made parties defendant.”
[Esconde v. Barlongay, G.R. No. L-67582
(1987)]
In a registration proceeding, the judgment of
the court confirming the title, and ordering its
registration in one’s name constitutes, when
final, res judicata against the whole world
[Ting v. Heirs of Liro, G.R. No 16891 (2007)]
There is no need to personally notify the
owners or claimants of the land sought to be
registered if it is involved in a land registration
case since it is a proceeding in rem. This
gives automatic power and authority to the
court over the res. [Guido-Enriquez v.
Victorino, et al. G.R. No. 180427 (2013)]
b.
Laws
Registration
Implementing
Land
Relevant Laws
1. Public Land Act [CA 141, as amended]
2. Property Registration Decree [PD 1529,
as amended]
3. Cadastral Act [Act 2259, as amended]
4. Indigenous Peoples Rights Act of 1997
[RA 8371]
5. Emancipation Decree [PD 27, as
amended]
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6. Comprehensive Agrarian Reform Law of
1988 [RA 6657, as amended]
To simplify and streamline land registration
proceedings,
Presidential
Decree
No.
1529, otherwise known as the Property
Registration Decree, was issued on June 11,
1978, governing registration of lands under
the Torrens system as well as the recording of
transactions relating to unregistered lands,
including chattel mortgages. This Decree
consolidates, in effect, all pre-existing laws on
property registration with such appropriate
modifications as are called for by existing
circumstances. [Peña]
e. To issue a certificate of title to the
owner which shall be the best
evidence of his ownership of the land
f. To avoid conflicts of title in and to real
estate and to facilitate transactions
4. As held in Capitol Subdivisions, Inc. v.
Province of Negros Occidental [G.R. No.
L-16257 (1963)]
a. To avoid possible conflicts of title in
and to real property, and
b. To facilitate transactions relative
thereto by giving the public the right to
rely upon the face of the Torrens
certificate of title and to dispense with
the need of inquiring further.
c. Purpose of Land Registration
d. Object of Registration
Registration is merely a species of notice. The
act of registering a document is never
necessary in order to give it legal effect as
between the parties. The system maintains a
permanent record of landholdings, in order to
prevent fraudulent claims to land by
concealment of transfers.
Only real property or real rights may be the
object of registration under the existing land
registration laws.
Another purpose is to notify and protect the
interests of strangers to a given transaction,
who may be ignorant thereof. However, where
a document so registered is invalid or legally
defective, registration will not in any way
render it valid or cure its defect.
Purposes
1. Constructive notice to the whole world.
[Sec. 52, PD 1529]
2. To notify and protect the interests of
strangers to a given transaction, who may
be ignorant thereof [Sapto, et al. v.
Fabiana, G.R. No. L-11285 (1958)]
3. As held in Legarda v. Saleeby, supra:
a. To quiet title to the land and to stop
forever any question as to the legality
of said title
b. To relieve the land of unknown claims
c. To guarantee the integrity of land titles
and to protect their indefeasibility once
the claim of ownership is established
and recognized
d. To give every registered owner
complete peace of mind
024502CIV
5. Classification of Lands [Sec. 3, Art.
XII, 1987 Constitution]
Classification of Lands
1. Agricultural
2. Forestland or timberland
3. Mineral Lands
4. National Parks
Classification of lands is an exclusive
prerogative of the executive department. In
the absence of such classification, the lands
remain as unclassified until it is released
therefrom and rendered open to disposition.
The President, through a Presidential
Proclamation or Executive Order can classify
or reclassify land to be included or excluded
from the public domain. The DENR Secretary
is also empowered to approve a land
classification and declare such land as
alienable and disposable. [Spouses Fortuna v.
Republic, G.R. No. 173423 (2014)]
Registrable lands are:
1. Alienable public agricultural lands; If the
land is in the public domain, the land must
be classified as alienable and disposable.
It must be classified as such at the time of
filing the application for registration.
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[Republic v. CA and Naguit, G.R. No.
144057 (2005)]
2. Private lands
Non-registrable lands
Those found in the Civil Code dealing with
non-registrable properties (e.g. property of
public dominion)
C. Administration of the Torrens
System
1. Land Registration Authority
Agency under the executive supervision of the
DOJ charged with the efficient execution of
the laws relative to the registration of lands
Composition:
1. Administrator
2. Two (2) Deputy
assistants)
Administrators
(as
Functions of LRA:
1. Extend speedy and effective assistance to
the Department of Agrarian Reform, the
Land Bank, and other agencies in the
implementation of land reform program of
the government
2. Extend assistance to courts in ordinary
and
cadastral
land
registration
proceedings; and
3. Be the central repository of records
relative to original registration of lands
titled under the Torrens system, including
the subdivision and consolidation plans of
titled lands.
2. Register of Deeds
Public repository of records of instruments
affecting registered or unregistered lands and
chattel mortgages in the province or city
wherein such office is situated.
Composition:
1. Register of Deeds
2. Deputy (as assistant)
024503CIV
Functions of Registers of Deeds:
1. Immediately register an instrument
presented for registration dealing with real
or personal property which complies with
the requisites for registration;
2. Shall see to it that said instrument bears
the proper documentary stamps and that
the same are properly canceled;
3. If the instrument is not registerable, he
shall deny the registration thereof and
inform the presenter of such denial in
writing, stating the ground or reason
therefore, and advising him of his right to
appeal by consulta in accordance with
Sec. 117 of PD 1529.
4. Prepare and keep and index system which
contains the names of all registered
owners and lands registered.
The function of the ROD with reference to
registration
of
deeds,
encumbrances,
instruments, and the like is ministerial in
nature, provided the applicant complies with
all the requisites [Baranda v. Gustilo, G.R. No.
81163 (1988)].
Instances when ROD may validly deny
registration of a voluntary instrument:
1. When there is more than one (1) copy of
the owner’s duplicate certificate of title and
not all such copies are presented to the
ROD;
2. Where the voluntary instrument bears on
its face an infirmity;
3. 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;
4. 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)]
Note: When the ROD is in doubt as to the
proper action to take on an instrument or deed
presented to him for registration, he should
submit the question to the Administrator of the
LRA en consulta [P.D. 1529, Sec. 117]
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II. REGALIAN DOCTRINE
A. Concept of the Regalian
Doctrine
A western legal concept that was first
introduced by the Spaniards into the country
through the laws of the Indies and the Royal
Cedulas whereby the Philippines passed to
Spain by virtue of “discovery” and conquest.
Consequently, all lands became the exclusive
patrimony and dominion of the Spanish
Crown. [Agcaoili]
Section 2, Article XII, 1987 Constitution. All
lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural
resources are owned by the State. With the
exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources
shall be under the full control and supervision of the
State. The State may directly undertake such
activities, or it may enter into co-production, joint
venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at
least 60 per centum of whose capital is owned by
such citizens. Such agreements may be for a
period not exceeding twenty-five years, renewable
for not more than twenty-five years, and under such
terms and conditions as may be provided by law. In
cases of water rights for irrigation, water supply,
fisheries, or industrial uses other than the
development of waterpower, beneficial use may be
the measure and limit of the grant.
The State shall protect the nation’s marine wealth
in its archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and
enjoyment exclusively to Filipino citizens.
The Congress may, by law, allow small-scale
utilization of natural resources by Filipino citizens,
as well as cooperative fish farming, with priority to
subsistence fishermen and fish workers in rivers,
lakes, bays, and lagoons.
The President may enter into agreements with
foreign-owned
corporations
involving
either
technical or financial assistance for large-scale
exploration, development, and utilization of
minerals, petroleum, and other mineral oils
according to the general terms and conditions
provided by law, based on real contributions to the
024504CIV
economic growth and general welfare of the
country. In such agreements, the State shall
promote the development and use of local scientific
and technical resources.
The President shall notify the Congress of every
contract entered into in accordance with this
provision, within thirty days from its execution
The principle of State ownership of lands and
all other natural resources had its roots in the
1935 Constitution, which expressed the
overwhelming sentiment in the Convention in
favor of the principle of State ownership of
natural resources and the adoption of the
Regalian doctrine [Sec. 1, Art XIII, 1987
Constitution].
The 1973 Constitution reiterated the Regalian
Doctrine in Sec. 8, Art. XIV. The present
Constitution provides that, except for
agricultural lands of the public domain which
alone may be alienated, forest or timber, and
mineral lands, as well as all other natural
resources must remain with the State, the
exploration, development, and utilization of
which shall be subject to its full control and
supervision albeit allowing it to enter into coproduction, joint venture, or productionsharing agreements, or into agreements with
foreign-owned corporations involving technical
or financial assistance for large-scale
exploration, development, and utilization.
[Secs. 2 and 3, Art. XII; La Bugal-B’laan Tribal
Association, Inc. v. Ramos, G.R. No. 127882
(2004)]
The Regalian Doctrine is enshrined in the
1987 Constitution [Art 12, Sec 2 & 3] which
states that all lands of public domain belong to
the State, thus private title to land must be
traced to some grant, express or implied, from
the State, i.e. The Spanish Crown or its
successors,
the
American
Colonial
government and thereafter the Philippine
Republic.
It does not negate native title to lands held in
private ownership since time immemorial.
[Cruz v. Sec. of Environment and Natural
Resources, G.R. No. 135385 (2000)]
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Native title recognizes ownership of land by
Filipinos independent of any grant from the
Spanish crown on the basis of possession
since time immemorial [cf: Cariño v. Insular
Government, G.R. No. 2869 (1907)]
B. Effects
Doctrine
of
the
Regalian
1. All lands of public domain belong to the
State, and the State is the source of any
asserted right to ownership in land and
charged with the conservation of such
patrimony [Republic v. IAC, G.R. No.
71285 (1987)]
2. Under the Regalian doctrine, all lands of
whatever classification and other natural
resources not otherwise appearing to be
clearly within private ownership are
presumed to belong to the State which is
the source of any asserted right to
ownership of land. [Repubic v. Remnan
Enterprises, Inc., G.R. No. 199310 (2014)]
3. The burden of proof in overcoming the
presumption of State ownership of the
lands of the public domain is on the
person applying for registration (or
claiming ownership), who must prove that
the land subject of the application is
alienable or disposable. To overcome this
presumption, incontrovertible evidence
must be established that the land subject
of application (or claim) is alienable or
disposable. [Valiao v. Republic, G.R. No.
170757 (2011)]
C. Native Title and Ancestral
Domains
1. Native Title
A recognized exception to the theory of jura
regalia, the ruling in Cariño v. Insular
Government, supra, institutionalized the
recognition of the existence of native title to
land, or ownership of land by Filipinos by
virtue of possession under a claim of
ownership since time immemorial and
independent of any grant from the Spanish
Crown [Agcaoili]
024505CIV
Lands under native title are not part of public
domain, “lands possessed by an occupant
and his predecessors since time immemorial,
such possession would justify the presumption
that the land had never been part of the public
domain or that it had been private property
even before the Spanish conquest [Republic
v. CA, G.R. No. 130174 (2000)]
Lands embraced by native title are presumed
to have been held prior to the Spanish
conquest and never to have been public land.
2. Ancestral Domains
Ancestral domains refer to all areas
generally belonging to ICCs/IPs comprising
lands, inland waters, coastal areas, and
natural resources therein, held under a claim
of ownership, occupied or possessed by
ICCs/IPs, by themselves or through their
ancestors, communally or individually since
time immemorial, continuously to the present
except when interrupted by war, force majeure
or displacement by force, deceit, stealth or as
a consequence of government projects or any
other voluntary dealings entered into by
government
and
private
individuals/corporations, and which are
necessary to ensure their economic, social
and cultural welfare.
It shall include ancestral lands, forests,
pasture, residential, agricultural, and other
lands individually owned whether alienable
and disposable or otherwise, hunting grounds,
burial grounds, worship areas, bodies of
water, mineral and other natural resources,
and lands which may no longer be exclusively
occupied by ICCs/IPs but from which they
traditionally had access to for their
subsistence
and
traditional
activities,
particularly the home ranges of ICCs/IPs who
are still nomadic and/or shifting cultivators.
[Sec. 3(a), RA 8371 otherwise known as the
Indigenous People’s Rights Act of 1997
(IPRA)]
Certificate of Ancestral Domain Title
(CADT) refers to a title formally recognizing
the rights of possession and ownership of
ICCs/IPs over their ancestral domains
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identified and delineated in accordance with
this law [Sec. 3(c), IPRA]
Certificate of Ancestral Lands Title (CALT)
refers to a title formally recognizing the rights
of ICCs/IPs over their ancestral lands.
Individually-owned ancestral lands, which
are agricultural in character and actually used
for agricultural, residential, pasture, and
tree farming purposes, including those with a
slope of eighteen percent (18%) or more, are
hereby classified as alienable and disposable
agricultural lands [Sec. 12, IPRA]
Native title, however, is a right of private
ownership particularly granted to ICCs/IPs
over their ancestral lands and domains. The
IPRA categorically declares ancestral lands
and domains held by native title as never to
have been public land. [Cruz v. Sec. of
Environment and Natural Resources, supra]
III. NATIONALITY
RESTRICTIONS ON LAND
OWNERSHIP
A. Individuals
General Rule: Only Filipinos can acquire or
hold title to private lands or to lands of the
public domain. [Halili v. CA, G.R. No. 113539
(1998); Secs. 2 and 5, Art. XII, 1987
Constitution]
Citizens of the Philippines may lease not more
than five hundred (500) hectares, or acquire
not more than twelve (12) hectares thereof, by
purchase, homestead, or grant. [Sec. 3, Art.
XII, 1987 Constitution]
The Krivenko Doctrine
The capacity to acquire private land is made
dependent upon the capacity to acquire or
hold lands of public domain. Private land may
be transferred or conveyed only to individuals
or entities ‘qualified to acquire lands of public
domain.’ [Krivenko v. Register of Deeds, G.R.
No. L- 630, 1947]
CIVIL LAW
percent of the capital of which was owned by
Filipinos. Aliens, whether individuals or
corporations, have been disqualified from
acquiring public lands; hence they have also
been disqualified from acquiring private lands.
[Krivenko v. Register of Deeds, supra7]
Exceptions
1. Aliens by way of hereditary succession
[Sec. 7, Art. XII, 1987 Constitution]
2. Natural born citizens who have lost their
citizenship:
For business use: limited to 5,000 sq. m.
for urban land and 3 hectares for rural
land. In the case of married couples, the
total area acquired by both of them shall
not exceed the maximum [Sec. 10, RA
No. 7042 (Foreign Investments Act) as
amended by RA No. 8179]
For residential purposes: limited to
1,000 sq m. for urban land and 1 hectare
for rural land. [BP 185, Sec. 2]
For married couples in either case: one
of them may avail of the privilege granted.
If both shall avail of the same, the total
area acquired by both of them shall not
exceed the maximum specified above.
But where a Filipino citizen naturalized as
a citizen in a foreign country has
“reacquired” his Philippine citizenship
under the terms of RA 9225 (2003)
otherwise known as the “Citizenship
Retention and Re-acquisition Act of 2003,”
the area limitations may no longer apply
since the law expressly grants him the
same right, as any Filipino citizen, to
“enjoy full civil and political rights” upon
the re-acquisition of his Filipino citizenship
[Agcaoili].
3. Aliens, although disqualified to acquire
lands of public domain, may lease private
land provided that such lease does not
amount to a virtual transfer of ownership.
They may also be given an option to buy
property on the condition that he is
granted Philippine citizenship [Llantino v.
Co liong Chong, G.R. No. L-29663 (1990)]
The 1935 Constitution reserved the right for
Filipino citizens or corporations at least sixty
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4. Lands acquired by an American citizen
prior the proclamation of Philippine
Independence on July 4, 1946 but after
the passage of the 1935 Constitution may
be registered, based on the ordinance
appended to the 1935 Constitution. [Moss
v. Director of Lands, G.R. No. L-27170
(1977)]
5. Land sold to an alien which is now in the
hands of a naturalized citizen can no
longer be annulled [De Castro v. Tan, GR
No. L-31956 (1984)]. The litigated
property is now in the hands of a
naturalized Filipino. It is no longer owned
by a disqualified vendee. The purpose of
the prohibition ceases to be applicable.
[Barsobia v. Cuenco, G.R. No. L-33048
(1982)]
6. Aliens may acquire condominium units
and shares in condominium corporations
up to no more than 40% of the total and
outstanding capital stock of a Filipinoowned or controlled corporation. [Sec. 5,
RA 4726 (The Condominium Act)]
Under such circumstances, the ownership of
the land is legally separated from the unit
itself, therefore the proscription against aliens
owning real property does not apply. [Hurst v.
PR Builders, Inc., G.R. No. 156364 (2008)]
B. Corporations
General Rule: Private corporations may not
hold alienable lands of the public domain.
[Sec. 3, Art. XII, 1987 Constitution]
CIVIL LAW
C. Limitations to Ownership of
Land by Corporations
1. For private lands:
1. At least 60% Filipino [Sec. 2, Art. XII, 1987
Constitution];
2. Restricted as to extent reasonably
necessary to enable it to carry out the
purpose for which it was created [Sec.
35(g), RA 11232 (Revised Corporation
Code)]; and
3. If engaged in agriculture, it is restricted
to 1,024 hectares [Sec. 71, RA 3844
(Agricultural Land Reform Code)].
2. For patrimonial property of the
State [Sec. 3, Art. XII, 1987
Constitution]
1. Lease only for a limited period of 25 years
2. Limited to 1,000 hectares
3. Applies to both Filipino and Foreign
corporations
4. This limitation does not apply where the
corporation acquired the land, the same
was already private land [Republic v. IAC
and Acme Plywood & Veneer Co., Inc.,
supra]
A Corporation Sole may acquire and register
private agricultural land. It has no nationality,
thus the constitutional proscription against
private
corporations
acquiring
public
agricultural lands will not apply. [RC Apostolic
Administrator of Davao v. LRC, G.R. No. L8415 (1957)] A corporation sole, which
consists of one person only, is vested with the
right to purchase and hold real estate and
register the same in trust for the faithful or
members of the religious society or church for
which the corporation was organized.
Exceptions
1. By lease for a period not exceeding
twenty- five years, renewable for not more
than twenty-five (25) years and not to
exceed one thousand hectares (1,000) in
A Religious Association Controlled by
area. [Ibid]]
Non- Filipinos is not excepted by the
2. If the predecessors-in-interest of the
Constitutional provisions. To permit them to
corporation have been in possession of
acquire agricultural lands would be to drive
the land in question since June 12,1945 or
the opening wedge to revive alien religious
earlier, then it may rightfully apply
land-holdings in the country. [Agcaoili]
confirmation of title to the land. The vested
right has to be respected. [Republic v. IAC
and Acme Plywood & Veneer Co., Inc.,
G.R. L-73002 (1986)]
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IV. ORIGINAL
REGISTRATION (PD 1529)
A. Concept
Original Registration
This is a proceeding brought before the land
registration court to determine title or
ownership of land on the basis of an
application for registration or answer by a
claimant in a cadastral registration.
Registration means any entry made in the
books of the registry, including both
registration in its ordinary and strict sense,
and cancellation, annotation and even
marginal notes. In its strict sense, it is the
entry made in the registry which records
solemnly and permanently the right of
ownership and any real rights. [Cheng v.
Genato, G.R. No. 129760 December 29,
1998]
Purpose of Torrens System
To decree land titles that shall be final,
irrevocable, and undisputable
Once a title is registered, the owner can rest
secure, without the necessity of waiting in the
portals of the court, or sitting in the ‘mirador
de su casa’ to avoid the possibility of losing
his land. [Legarda v. Saleeby, G.R. No. L8936
October 2, 1915]
Original Registration
Registration
vs.
Subsequent
Original
Registration
Subsequent
Registration
When
right
of
ownership or title to
land is for the first
time made of public
record
Any
transaction
affecting
such
originally registered
land, if in order, may
be registered in the
Office
of
the
Register of Deeds
concerned
024508CIV
B. Voluntary or Involuntary
Kinds of Original Registration
1. Voluntary Registration – these are
deeds, instruments, documents which are
the results of free and voluntary acts of
parties thereto.
2. Involuntary Registration – these refer to
writ, order, or process issued by the court
of record affecting registered land, also
other instruments which are not willful acts
of the registered owner, executed without
his knowledge or consent
Voluntary
Dealings
Dealings
vs.
Involuntary
Voluntary Dealings
Involuntary
Dealings
Presentation of the
owner’s
duplicate
certificate of title is
required to notify;
mere entry in the
day book of the
Register of Deeds
(RD) is insufficient
Entry in the day
book of RD is
sufficient notice to all
persons
C. Who May Apply
Who May Apply under Sec. 14, P.D. 1529
as amended by Sec. 6, R.A. No. 11573
Where to Apply: In the the Proper Court of
First Instance
The following persons may file an
application for registration of title to land,
whether personally or through their duly
authorized representatives:
1. Those who by themselves or through their
predecessors-in-interest have been in
open, continuous, exclusive and
notorious possession and occupation
of alienable and disposable lands of the
public domain not covered by existing
certificates of title or patents under a bona
fide claim of ownership for at least twenty
(20) years immediately preceding the filing
of the application for confirmation of title
except when prevented by war or force
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majeure. They shall be conclusively
presumed to have performed all the
conditions essential to a Government
grant and shall be entitled to a certificate
of title under this section.
2. Those who have acquired ownership of
private lands or abandoned riverbeds by
right of accession or accretion under the
provisions of existing laws.
3. Those who have acquired ownership of
land in any other manner provided for by
law [Sec. 14, P.D. 1529, as amended by
R.A. No. 11573]
Special Rules under Sec. 14 as amended
by Sec. 6, R.A. No. 11573
1. All the co-owners shall file the
application jointly [Sec. 14, par. 2, P.D.
1529 as amended by R.A. No. 11573]
Under Art. 493 of the Civil Code, each coowner shall have the full ownership only
over his part. Since a co-owner cannot be
considered the true owner over a specific
portion until division or partition is
effected, he cannot file an application for
registration for the whole area without
joining the other co-owners as applicants.
2. The vendor a retro may file an
application for the original registration
of the land [Sec. 14, par. 3, P.D. 1529, as
amended by R.A. No. 11573]
Provided, however, That should the period
for redemption expire during the pendency
of the registration proceedings and
ownership to the property consolidated in
the vendee a retro, the latter shall be
substituted for the applicant and may
continue the proceedings.
3. A trustee may apply for registration on
behalf of his principal [Sec. 14, par. 4,
P.D. 1529, as amended by R.A. No.
11573]
Exception: Unless prohibited by the
instrument creating the trust
024509CIV
Who May Apply under Sec. 16, P.D. 1529;
Land Applied for Registration by a NonResident of the Philippines
Non-resident applicants must file their
application through a duly authorized
representative or attorney-in-fact, whose
authority as such shall accompany the
application.
A special power of attorney executed before a
notary public or other competent official in a
foreign country cannot be admitted in
evidence unless it is duly certified in
accordance with Sec. 24, Rule 132 of the
Rules of Court [Lopez v. CA, G.R. No. 127827
(2003)].
Who May Apply under Sec. 12, CA 141
Any person who:
1. Is a citizen of the Philippines over the age
of 18, or the head of a family
2. Does not own more than 24 hectares of
land in the Philippines, or has not had the
benefit of any gratuitous allotment of more
than 24 hectares of land since the
occupation of the Philippines by the
United States
Note: They may enter a homestead of not
exceeding 24 hectares of agricultural land of
the public domain
Who May Apply under R.A. No. 8371 (IPRA)
1. Sec. 11 – Formal recognition of ancestral
domains by virtue of Native Title may be
solicited by ICCs/IPs concerned
2. Sec. 12 – Option to secure certificate of
title under CA 141 or Land Registration
Act 496
• Individual
members
of
cultural
communities
with
respect
to
individually-owned ancestral lands
who, by themselves or through their
predecessors-in-interest, have been in
continuous
possession
and
occupation of the same in the concept
of owner since time immemorial or for
a period of not less than thirty (30)
years immediately preceding the
approval of this Act and uncontested
by the members of the same ICCs/IPs
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shall have the option to secure title to
their ancestral lands
Option granted shall be exercised
within 20 years from the approval of
RA 8371
D. Jurisdiction
Where to File: The court that should take
cognizance of a registration case is that which
has territorial jurisdiction over the property.
General Rule: RTC of the province, city, or
municipality where the property is situated.
dismiss the application [Yujuico v. Republic,
G.R. No. 168661 (2007)],
How Value of Property Ascertained
The value of the property is ascertained in
three (3) ways:
1. By the affidavit of the claimant;
2. By agreement of the respective claimants,
if there are more than one; or,
3. From the corresponding tax declaration of
the real property [Sec. 34, B.P. 129 as
amended by RA No. 7691]
E. Decree of Registration
The RTC shall have exclusive jurisdiction over
all applications original for registration of title,
with power to hear and determine all
questions arising upon such applications or
petitions. [Sec. 2, par. 2, P.D. No. 1529]
However, first level courts may be assigned
by the SC to hear and determine cadastral or
land registration cases:
1. Where there is no opposition, or
2. Over contested lots, the value of which
does not exceed P100,000. [Republic v.
Bantique, G. R. No. 162322, March 14,
2012]
Exception: Delegated jurisdiction to the MTC,
MeTC, and MCTC by the Supreme Court in
cadastral and land registration cases IF:
1. There is no controversy over the land, OR
2. Its value is at mostP100,000 [Sec. 34, BP
129 as amended by RA No. 7691]
Lack of Jurisdiction
RTCs have no jurisdiction, however, if the
land turns out to be inalienable public land.
Initially, the land registration court has
jurisdiction over the land applied for at the
time of the filing of the application. At the trial,
the court, in the exercise of its jurisdiction,
determines whether the land applied for is
registrable, and the title thereto, confirmed. If
the land turns out to be inalienable public
land, then it has no jurisdiction to order its
registration and the court must perforce
024510CIV
Registration only confirms ownership
A decree of registration merely confirms, but
does not confer ownership. [City Mayor of
Parañaque City v. Ebio, G.R. No. 178411,
(2010)] Registration does not vest title or 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. The registration
does not give the owner any better title than
he has. He does not obtain title by virtue of
the certificate. He secures his certificate by
virtue of the fact that he has a fee simple title.
[Legarda v. Saleeby, supra]
F. Review of Decree of
Registration;
Innocent
Purchaser for Value (IPV);
Rights of IPV
Petition to Review Decree
Courts may reopen proceedings when an
application for review is filed by the aggrieved
party within one (1) year from the issuance of
the decree. [Sec. 32, P.D. 1529]
The petition is effectively a review of the land
registration court’s ruling. As such, it can be
filed as long as one (1) year has not elapsed,
because that is the time in which a land title
becomes indefeasible.
The petition is a separate and distinct remedy
from a motion for new trial, and the right to
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avail of the former is not affected by the denial
of the latter.
do not prevent a fair and just determination of
the case.
Who May File
Only an aggrieved party who has been
deprived of land or any estate or interest
therein by decree of registration may file for a
petition for review of decree.
V. An Act Improving the
Confirmation Process for
Imperfect Land Titles (RA
11573), amending CA 141
and PD 1529
When to File
Any time after the rendition of the court’s
decision and before the expiration of one (1)
year from entry of decree of registration.
There is no need to wait for actual entry in the
LRA before the aggrieved party may file a
petition to review the decree. [Rivera v.
Moran, G.R. No. L-24568 (1926)]
The one-year period begins to run from the
time the decision becomes final and
unappealable, which is 15 days from the time
the affected parties have been notified of the
entry of judgment.
Requisites for Review [Sec. 32, P.D. 1529]
1. The petitioner must have an estate or
interest in the land.
2. He must show actual fraud in the
procurement of the decree of registration.
3. The petition must be filed within one (1)
year from the issuance of the decree by
the LRA.
4. The property has not yet passed to an
innocent purchaser for value
Fraud
A petition to review the decree can only be
granted on the ground of extrinsic and actual
fraud.
Extrinsic fraud refers to any fraudulent act of
the successful party in litigation which
prevents the defeated party, his agents,
attorneys, or witnesses, which prevents him
from presenting fully and fairly his side of the
case [Sterling Investment Corp v. Ruiz, G.R.
No. L-30694 (1969)].
Guidelines on the Application of R.A. No.
11573 as provided in Republic v. Pasig
Rizal Co. Inc., G.R. No. 213207 (2022):
1. RA 11573 shall apply retroactively to all
applications for judicial confirmation of
title which remain pending as of
September 1, 2021, or the date when RA
11573 took effect.
These include all applications pending
resolution at the first instance before all
Regional Trial Courts, and applications
pending appeal before the Court of
Appeals.
2. Applications for judicial confirmation of title
filed on the basis of the old Secs. 14(1)
and 14(2) of PD 1529 and which remain
pending before the Regional Trial Court or
Court of Appeals as of September 1, 2021
shall be resolved following the period
and manner of possession required
under the new Sec.14(1).
Thus, beginning September 1, 2021, proof
of “open, continuous, exclusive and
notorious possession and occupation of
alienable and disposable lands of the
public domain not covered by existing
certificates of title or patents under a bona
fide claim of ownership for at least twenty
(20) years immediately preceding the filing
of the application for confirmation” shall be
sufficient for purposes of judicial
confirmation of title, and shall entitle the
applicant to a decree of registration.
3. In the interest of substantial justice, the
Regional Trial Courts and Court of
This is opposed to intrinsic fraud which
Appeals are hereby directed, upon proper
refers to the acts of a party in litigation which
motion or motu proprio, to permit the
presentation of additional evidence on
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land classification status based on the
parameters set forth in Sec. 7 of RA
11573.
a. Such additional evidence shall consist
of a certification issued by the DENR
geodetic engineer which
i. states that the land subject of the
application for registration has been
classified
as
alienable
and
disposable land of the public
domain;
ii. bears reference to the applicable
Forestry
Administrative
Order,
DENR
Administrative
Order,
Executive Order, or proclamation
classifying the land as such; and
iii. indicates the number of the LC Map
covering the land.
b. In the absence of a copy of the
relevant issuance classifying the land
as alienable and disposable, the
certification must additionally state (i)
the release date of the LC Map; and
(ii) the Project Number. Further, the
certification must confirm that the LC
Map forms part of the records of
NAMRIA and is precisely being used
by the DENR as a land classification
map.
c. The DENR geodetic engineer must be
presented as witness for proper
authentication of the certification in
accordance with the Rules of Court.
VI. CERTIFICATE OF TITLE
A. The Torrens Title
Certificate of ownership issued under the
Torrens System of registration, through the
Register of Deeds, naming and declaring
the owner of the real property described
therein free from all liens and encumbrances,
except such as may be expressly noted
thereon or otherwise reserved by law.
Presumption of Regularity
The presumption of regularity enjoyed by the
registration decree includes the presumption
that all requisites for the issuance of a
valid title had been complied with [Carpo v.
Ayala Land, G.R. No. 166577 (2010)].
024512CIV
Does not create but only confirms title
A certificate of title does not create or vest
title. It merely confirms or records a title
already existing and vested. It cannot be used
to protect a usurper from a true owner, nor
can it be used as a shield for the commission
of fraud; neither does it permit one to enrich
himself at the expense of another [Purisima v
Purisima, G.R. No. 200484 (2020)].].
1. Original Certificate of Title (OCT)
It is the first certificate of title issued in the
name of the registered owner by the Register
of Deeds covering a parcel of land which had
been registered under the Torrens System, by
virtue
of
judicial
or
administrative
proceedings.
The OCT shall be a true copy of the decree
of registration. It includes both the original
copy filed in the Registry of Deeds, and the
owner’s duplicate certificate [Sec. 39, P.D.
1529].
Contents
It shall set forth:
1. The full names of all persons whose
interests make up the ownership of the
land;
2. Their civil status and the names of their
respective spouses, if married; and
• If property belongs to the conjugal
partnership, it shall be issued in the
name of both spouses.
3. Their citizenship, residence, and postal
address. [Sec. 45, PD 1529]
No need to look beyond title
Every certificate of title contains an
attestation that the person named is the
owner of the property described therein.
Hence, every person dealing with registered
land may safely rely on the correctness of
the certificate of title issued therefor and the
law will in now way oblige him to go beyond
the certificate [Spouses Peralta v. Heirs of
Abalon, G.R. No. 183448 (2014)].].
Individuals who rely on a clean certificate of
title in purchasing said title are referred to as
innocent purchasers for value and in good
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faith [Register of Deeds of Negros Occidental
v Anglo, G.R. No. 171804 (2015)].
Effective Upon Date of Entry
Upon receipt of the Register of Deeds of the
original and duplicate copy of the certificate of
title, he shall enter the same in the record
book and shall be numbered, dated, signed
and sealed with the seal of his office. The
certificate shall shall take effect upon the
date of entry thereof. [Sec. 40, PD 1529]
2. Transfer Certificate of Title (TCT)
The subsequent certificate of title pursuant to
any deed of transfer or conveyance to another
person. [Sec. 42, PD 1529] The Register of
Deeds shall make a new certificate of title and
give the registrant an owner’s duplicate
certificate. The previous certificate shall be
stamped “cancelled.”
It shall show the number of the next previous
certificate covering the same land, and also
the fact that it was originally registered,
giving the record number, the number of the
OCT, and the volume and page of the
registration book in which it is found [Sec. 42,
PD 1529]
3. Patents
Whenever public land is by the Government
alienated, granted or conveyed to any person,
the same shall be brought forthwith under the
operation of this Decree [Sec. 103, par. 1, PD
1529].
The instruments whereby public land is
“alienated, granted, or conveyed” are
instruments transferring ownership, not
documents of lease transferring mere
possession [Dagdag v. Nepomuceno, G.R.
No. L-12691 (1959)].
Effect of Registration Pursuant to Patent
The same provision, Sec. 103, directs the
issuance to the grantee of an “owner’s
duplicate certificate”. After due registration
and issuance of the certificate of title, the land
shall be deemed registered land under
Property Registration Decree.
024513CIV
Public lands when duly registered are
veritable Torrens titles subject to no
encumbrances except those stated therein,
plus those specified by the statute. They
become private property which can no
longer be the subject of subsequent
disposition by the Director of Lands [Dagdag
v. Nepomuceno, supra].
The certificate of title issued by virtue of a
patent has the force and effect of a Torrens
title issued through judicial registration
proceedings [Pajomayo v. Manipon, G.R. No.
L-33676 (1917)].
B. Probative Value
The certificate, once issued, is the evidence of
the title which the owner has [Legarda v.
Saleeby, G.R. No. 8936 (2015)].
A Torrens Certificate of Title is valid and
enforceable against the whole world. It may
be received in evidence in all courts of the
Philippines, and shall be conclusive as to all
matters contained therein, principally the
identity of the owner of the covered land
thereby and identity of the land.
A Torrens title, once registered, cannot be
defeated, even by adverse, open and
notorious possession. A registered title
under the Torrens system cannot be defeated
by prescription. The title, once registered, is
notice to the whole world. All persons must
take notice. No one can plead ignorance of
the registration. [Egao v. CA, G.R. No. L79787 (1989)]
C. Effects of Registration under
the Torrens System
1. Land is placed under the operation
of the Torrens system
2. Claims and liens prior to the
decree of registration
General Rule: Every registered owner
receiving a certificate of title pursuant to a
decree of registration and every subsequent
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purchaser for value and in good fatih shall
hold the same free from all encumbrances
[Sec. 44, P.D. 1529].
Exceptions:
1. Those claims and liens noted in the
certificate of title; and
2. The encumbrances in the law.
Claims and liens that may limit the
registered owner’s absolute title:
a. Under Sec. 44, P.D. 1529:
1. Liens, claims or rights existing or arising
under the laws or the Constitution
which are not by law required to appear of
record in the Registry of Deeds [Sec. 44,
par. 2];
2. Unpaid real estate mortgages levied and
assessed within two (2) years immediately
preceding the acquisition of any right over
the land [Sec. 44, par. 3];
3. Any public highway or private way
established or recognized by law, or any
government irrigation canal or lateral
thereof [Sec. 44, par. 4]; and
4. Any disposition of the property or limitation
on the use thereof by virtue of PD No. 27
or any other law on agrarian reform
[Sec. 44, par. 5].
b. Under Sec. 46, P.D. 1529:
1. Rights incident to the relation of husband
and wife, and landlord and tenant;
2. Liability to attachment or levy on
execution;
3. Liability to any lien of any description
established by law on the land and the
buildings thereon, or on the interest of the
owner in such land or buildings;
4. Rights incident to the laws of descent or
partition between co-owners;
5. Taking of the property through eminent
domain;
6. Right to relieve the land from liability to be
recovered by an assignee in insolvency or
trustee in bankruptcy under the laws
relative to preference; and
7. Rights or liabilities created by law and
applicable to unregistered land.
024514CIV
3. Title to the land becomes nonprescriptible
No title to registered land in derogation of the
title of the registered owner shall be acquired
by prescription or adverse possession [Sec.
47, P.D. 1529].
Title to the land, once registered, is
imprescriptible. No one may acquire it from
the owner by adverse, open, and notorious
possession [Republic v. Mendoza, G.R. No.
185091 (2010)].
Prescription is unavailing not only agaisnt the
registered owner but also against his
hereditary successor because the latter
merely step into the shoes of the decedent by
operation of law and are merely the
continuation of their predecessor-in-interest
[Barcelona v. Barcelona, G.R. No. L-9014
(1956)].
4. Torrens certificate is presumed
valid and devoid of flaws
The Torrens certificate of title is presumed to
have been regularly issued, valid and without
defects. The related presumption is that the
buyer or transferee of registered land is not
aware of any defect in the title of the property
he purchased or acquired. He has the right to
rely upon the face of the Torrens title and to
dispense with the trouble of inquiring further,
except when he has actual knowledge of facts
and circumstances that would impel a
reasonably cautious man to make inquiry
[Albienda v. CA, G.R. No. L-61416 (1985)].
Registration is not equivalent to legal title.
Under the Torrens system, registration only
gives validity to the transaction or creates a
lien upon the land. It merely confirms, but
does not confer, ownership [Lu v. Manipon,
G.R. No. 147072 (2002)].
D. Effect of Non-Registration
If a purchaser, mortgagee or grantee should
fail to register his deed the conveyance,
considering our existing registration laws, it
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shall not be valid against any person unless
registered.
Exceptions:
1. The grantor,
2. His heirs and devisees, and
3. Third persons having actual notice or
knowledge thereof.
It is a settled rule that lands under a Torrens
title cannot be acquired by prescription or
adverse possession.
Sec. 47 of P.D. No. 1529, the Property
Registration Decree, expressly provides that
no title to registered land in derogation of the
title of the registered owner shall be acquired
by prescription or adverse possession [Dream
Village Neighborhood Association, Inc.,
represented by its Incumbent President Greg
Seriego v. Bases Conversion Development
Authority, G.R. No. 192896 (2013)].
E. Dealings in Land
Issuance of Decree
before
With the filing of an application for registration,
the land described therein does not cease to
become open to any lawful transaction. Sec.
22 of PD 1529 allows land subject of
registration to be dealt with after the filing of
the application and before the issuance of the
decree, but whatever may be the nature of the
transaction, the interested party should submit
to the court the pertinent instruments
evidencing the transaction to be considered in
the final adjudication of the case [Agcaoili,
144, supra].
However, if the motion is filed after the
decision of adjudication has become final but
before the issuance of the decree by the
Administrator of Land Registration Authority,
the court shall require the interested party to
pay the fees prescribed as if such instrument
had been presented for registration in the
office of the Register of Deeds. [Peña]
No Amendment of Application Needed
application by joinder, substitution, or
discontinuance of the parties. Sec. 22 does
not require amendment of the application,
it being sufficient that the court, by motion or
other appropriate pleading, be presented with
the instruments evidencing the transaction,
and the approved subdivision plan where the
land conveyed is located. [Agcaoili, 145,
supra].
F. Laches, When Applicable
The defense of laches, when proper, bars the
registered title holder from asserting his rights
over the registered property and from
recovering it [Sotto v. Tevez, G.R. No. L38018 (1978)].
Test: This defense, an equitable one, does
not concern itself with the character of the
defendant’s title but only with whether by
plaintiff’s unreasonable and unexplained
or inexcusable neglect, he is thus barred
from asserting his claim [Sotto v. Tevez,
supra].
Laches sets in if it would take 18 years for a
person to file an action to annul the land
registration proceedings, especially so if the
registrant has already subdivided the land and
sold the same to innocent third parties. A
party’s long inaction or passivity in
asserting his rights over disputed property
precludes him from recovering the same
[Heirs of Teodoro dela Cruz v. CA, G.R. No.
117384 (1998); Aurora Ignacio v. Valeriano
Basilio, et al., G.R. No. 122824 (2001)].
Note: The failure of the registered owner to
assert his right need not be for 50 years as in
Golloy vs. CA, nor the lesser period of 20
years as in Caragay-Layno vs. CA. Such
inaction still effectively bars suit even if such
inaction were from 10 to 16 years. And in the
more recent case of Isabela Colleges, Inc. vs.
Heirs of Nieves Tolentino-Rivera, [G.R. No.
132677, (2000)], it was pointed out that the
doctrine of laches can still be applied even if
only 7 years or 4 years had lapsed from the
emergence of the cause of action to the
institution of the court action [Aquino, pg. 116,
2007 Ed.].
Note: Sec. 22 should be differentiated from
Sec. 19 which refers to amendments to the
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VII. SUBSEQUENT
REGISTRATION
A. In General
Subsequent registration is a proceeding
where incidental matters after original
registration may be brought before the land
registration court by way of motion or petition
filed by the registered owner or a party in
interest. Subsequent registration may be
effected through voluntary or involuntary
dealings.
Voluntary Dealings
Involuntary
Refer
to
deeds,
instruments
or
documents
which
are the results of the
free and voluntary
acts of the parties
thereto.
Refers
to
instruments
which
are not the willful
acts
of
the
registered
owner
and may have been
executed without his
knowledge
or
against his consent.
1. Sale
2. Conveyances or
transfers of
ownership over
titled property
3. Mortgages
4. Lease
5. Pacto de retro
sale
6. Extrajudicial
settlement
7. Free patent /
homestead
8. Powers of
attorney
9. Trusts
1. Attachment
2. Mandamus
3. Sale
on
execution
of
judgment
or
sales for taxes
4. Adverse claims
5. Notice of lis
pendens
6. Expropriation
7. Forfeiture
8. Auction sale on
foreclosure
of
mortgage
An
innocent
purchaser for value
of registered land
becomes
the
registered owner the
moment he presents
and files a duly
notarized and valid
Entry thereof in the
day book of the
ROD is sufficient
notice to all persons
even if the owner’s
duplicate certificate
of
title
is
not
presented to the
024516CIV
Voluntary Dealings
Involuntary
deed of sale and the ROD [Saberon v.
same is entered in Ventanilla, Jr., G.R.
the day book of the No. 192669 (2014)].
ROD and at the
same
time
he
surrenders
or
presents the owner’s
duplicate certificate
of title covering the
land sold and pays
the registration fees.
Necessity and Effects Of Registration [Sec.
51 and 52, PD 1529]
The deed, mortgage, lease, or other voluntary
instrument, except a will, shall ONLY operate
as:
1. A contract between the parties and
2. Evidence of authority to the Register of
Deeds to make registration.
The act of registration shall be the operative
act to convey or affect the land insofar as third
persons are concerned. Through registration,
it creates constructive notice to the world.
B. Voluntary Dealings
Voluntary dealings are deeds, instruments,
documents which are the results of free and
voluntary acts of parties thereto.
The act of registration shall be the operative
act to convey or affect the land insofar as third
persons are concerned [Sec. 51, P.D. 1529].
1. Innocent purchaser for value and
in good faith
In case of voluntary registration of documents,
an innocent purchaser for value of registered
land becomes the registered owner, and, in
contemplation of law the holder of a certificate
of title, the moment he presents and files a
duly notarized and valid deed of sale and the
same is entered in the day book (primary
entry book), and at the same time he
surrenders or presents the owner’s duplicate
certificate of title covering the land sold and
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pays the registration fees, because what
remains to be done lies not within his power to
perform [Garcia v. CA, G.R. Nos. L-48971 and
4901 (1980)].
Note: The phrase "innocent purchaser for
value" is deemed to include an innocent
lessee, mortgagee, or other encumbrancer for
value [Sec. 32, PD 1529].
2. Mortgagee in good faith
General Rule: In contracts of mortgage, the
mortgagor should be the absolute owner of
the property to be mortgaged; otherwise, the
contract is void.
Exception: The doctrine of mortgagee in
good faith. Under this doctrine, even if the
mortgagor is not the owner of the mortgaged
of the property, the mortgage contract and the
foreclosure sale arising therefrom are given
effect by reason of public policy [Llanto v.
Alzona, G.R. No. 150730 (2005)].
A mortgagee has a right to rely in good faith
on the certificate of title of the mortgagor to
the property (registered in the Torrens
system) given as security and in the absence
of any sign that might arouse suspicion. He
has no obligation to undertake further
investigation.
Rationale: Based on the rule that all persons
dealing with property covered by the Torrens
Certificate of Title, as buyers or mortgagees,
are not required to go beyond what appears
on the title [Miles v. Lao, G.R. No. 209544
(2017)].
3. Reliance on title
General Rule: When there is nothing on the
certificate of title to indicate any cloud or vice
in the ownership of the property, the purchase
is not required to explore further than what the
Torrens title upon its face indicates [Centeno
v. CA, G.R. No. L-40105 (1985)].
He is charged with notice only of such
burdens and claims which are annotated on
the title, for registration is the operative act
that binds the property.
024517CIV
Exception: When should a purchaser
investigate?
1. Banks are required to exercise more care
and prudence in dealing with registered
lands for their business is one affected
with public interest. The general rule does
not apply.
2. When the party concerned has actual
knowledge of facts and circumstances that
would impel a reasonably cautious man to
make inquiry [Leung Yee v. Strong
Machinery Company, G.R. No. L-11658
(1918)].
3. When the purchaser is in bad faith; e.g. he
had full knowledge of a previous sale
[Jamoc v. CA, G.R. No. 92871 (1991)].
4. When a person buys land from one whose
rights over the land is evidenced only by a
deed of sale and an annotation in the
certificate of title but no TCT [Quiñiano v.
CA, G.R. No. L-23024 (1971)].
4. Double Sales
General Rule: Prior est in tempore, potior est
in jure (he who is first in time is preferred in
right). In case of sales of immovable property,
the ownership shall belong to the person
acquiring it who in good faith first recorded it
in the Registry of Property [Art. 1544, Civil
Code].
Exception: Does not apply if the previous
sale is found to be fraudulent, and the first
buyer is not one in good faith [Remalante v.
Tibe, G.R. No. L-59514 (1988)].
Remedy of latter vendee: The purchaser
from the owner of the later certificate and his
successors should resort to the vendor for
redress, rather than molest the holder of the
first certificate and his successors, who should
be permitted to rest secure in their title
[Gatioan v. Gaffud, G.R. No. L-21953 (1969)].
5. Forged Deed
General Rule: A forged deed is an absolute
nullity and conveys no title.
After the entry of the decree of registration on
the original petition or application, any
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subsequent registration procured by the
presentation of a forged duplicate certificate of
title, or a forged deed or other instrument,
shall be null and void [Sec. 53, P.D. 1529].
Exception: If the certificate of title has already
been transferred from the name of the true
owner to the name of the forger, and then the
land is subsequently sold to an innocent
purchaser for value.
6.
Registration
of
Instruments in General
Voluntary
Process of Registration [Sec. 55, P.D.
1529]
1. The deed or other voluntary instrument
must contain:
a. The following details of the grantee or
other person acquiring or claiming
interest:
• Full name
• Nationality
• Residence
• Postal address
• Civil status (if married, include
name in full of spouse)
b. If grantee is a corporation: It must
contain a recital showing that it is
legally qualified to acquire private
lands
2. File instrument creating or transferring
interest and certificate of title with Register
of Deeds together with:
a. Owner’s duplicate - the issuance of a
new transfer certificate without
presentation of an owner’s duplicate is
unwarranted and confers no right on
the purchaser [PNB v. Fernandez,
G.R. No. 42109 (1935)]
b. Payment of fees & documentary
stamp tax
c. Evidence of full payment of real estate
ta
d. Document of transfer – one (1) copy
additional for city/provincial assessor
3. Payment of fees and DST
a. After payment of entry fee the
Register of Deeds shall enter the
instruments in a primary entry book
[Sec. 56, PD 1529]
024518CIV
b. The national, provincial and city
governments are exempted from
payment of entry fees
c. RA 456 prohibits registration of
documents affecting real property
which is delinquent in the payment of
real estate taxes. Further, if evidence
of such payment is not presented with
fifteen (15) days from the date of entry
of said document in the primary entry
book of the register of deeds the entry
shall be deemed cancelled.
4. Entry of the Instrument in the Primary
Entry Book: Instruments are regarded as
registered from the time the Register of
Deeds enters them in the book
5. TCT shall then be issued
a. Registration of Dealings Less than
Ownership [Sec. 54, P.D. 1529]
If an instrument does not divest ownership or
title from owner or from transferee of the
registered
owners,
then
NO
NEW
CERTIFICATE shall be entered or issued.
Process of Registration for Dealings less
than Ownership
1. Filing of the instrument with the Register
of Deeds
2. A brief memorandum thereof is made:
a. On the certificate of title by the
Register of Deeds and signed by him,
and
b. On the owner’s duplicate
Cancellation or extinguishment of such
interests shall be registered in the same
manner.
Example: In a deed of conditional sale where
ownership is transferred after the full payment
of the installments of the purchase price, the
obligatory force of the vendor’s obligation to
transfer title is subordinated to the happening
of a future and uncertain event. Since the
deed in this case is in the nature of a
voluntary instrument, it must be registered as
such and not as an adverse claim [Logarta v.
Mangahis, G.R. No. 213568 (2016)].
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b. Registration of Deeds of Sale and
Transfers
Applies where an owner desires to convey his
registered land in fee simple [Sec. 57, P.D.
1529].
Process of Registration of Deeds of Sale
and Transfers, if entire property is the
subject [Sec. 57, P.D. 1529]
1. Owner executes and registers the deed
which must be sufficient in form.
2. A new certificate of title is issued and
Register of Deeds prepares and delivers
to grantee his owner's duplicate
certificate
3. Register of Deeds notes upon the OCT
and the duplicate certificate the date of
transfer, the volume and page of the
registration book where the new certificate
is registered
4. The original and the owner's duplicate of
the grantor's certificate shall be stamped
"cancelled".
5. The deed of conveyance shall be filed and
indorsed with the number and the place of
registration of the certificate of title of the
land conveyed.
Note: While Art. 1358, Civil Code seemingly
requires contracts transmitting rights over
immovable property to be in a public
document, a hornbook doctrine is that the
embodiment of certain contracts is only for
convenience.
Non-observance
of
the
prescribed formalities of contracts does not
necessarily excuse the contracting parties
from their obligation. It merely grants them the
right to compel each other to execute the
proper deed [Pontigon v. Sanchez, G.R. No.
221513 (2016)].
Process of Registration of Deeds of Sale
and Transfers, if only a portion of property
is the subject [Sec. 58, PD 1529]
1. Include a plan which shows all the
portions already subdivided with verified
and approved technical description.
2. That plan with the certified copy of the
technical descriptions shall be filed with
the Register of Deeds for annotation in the
TCT.
024519CIV
3. Register of Deeds shall issue a TCT and
cancel the grantor's certificate partially OR
it may be cancelled totally and a new one
issued describing therein the remaining
portion
Process of Registration of Deeds of Sale
and Transfers, if there are SUBSISTING
encumbrances and annotations
They shall be carried over in the new
certificate or certificates; except when they
have been simultaneously discharged.
c. Registration of Mortgages
Leases [Sec. 60, P.D. 1529]
and
Mortgages and leases shall be registered in
the manner provided in Sec. 54 (Dealings less
than ownership).
The deed shall take effect upon the title only
from the time of registration.
When a deed of mortgage is presented, the
Register of Deeds will enter upon the OCT
and upon the owner’s duplicate a
memorandum thereof and shall sign said
memorandum.
Effect of lis pendens on a previously
registered mortgage
Any subsequent lien or encumbrance
annotated at the back of the certificate of title
cannot in any way prejudice the mortgage
previously registered, and the lots subject to
the mortgage pass free from any lien or
encumbrance.
Rationale: The value of the mortgage could
be easily destroyed by a subsequent record of
an adverse claim or lis pendens, for no one
would purchase at a foreclosure sale if they
are bound by the posterior claim [BPI v.
Noblejas, G.R. No. L-12128 (1959) ].
d. Registration of Powers of Attorneys
[Sec. 64, P.D. 1529]
Powers of attorney and revocations shall be
registered with the Register of Deeds of the
province or city where the land lies.
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Any instrument revoking such power shall be
registered in like manner.
e. Registration of Trusts
Registration is by memorandum:
1. A memorandum by the words “in trust” or
“upon condition” or other apt words is
made if a deed or other instrument is filed
in order to:
a. Transfer registered land in trust, or
upon any equitable condition or
limitation expressed therein, or
b. Create or declare a trust or other
equitable interests in such land
without transfer [Sec. 65, PD 1529]
2. A memorandum by the words “with power
to sell,” or “power to mortgage” or other
apt words is made when: The instrument
creating or declaring a trust or other
equitable interest contains an EXPRESS
POWER to sell, mortgage, or deal with the
land in any manner
However, if an implied or constructive trust is
claimed, person claiming such must execute a
sworn statement thereof with the Register of
Deeds, containing a description of the land,
the name of the registered owner and a
reference to the number of the certificate of
title. Such claim shall not affect the title of a
purchaser for value and in good faith before
its registration [Sec. 68, PD 1529].
C. Involuntary Dealings
The following involuntary dealings affecting
registered land must be registered:
1. Attachments [Sec. 69, P.D. 1529]
2. Adverse claim [Sec. 70, P.D. 1529]
3. Sale on execution or for taxes or for any
assessment [Sec. 74, P.D. 1529]
4. Notice of lis pendens [Sec. 76, P.D. 1529]
1. Attachments
Registration of Attachment
Attachment is the legal process of seizing
another’s property in accordance with a writ or
judicial order for the purpose of securing
satisfaction of a judgment yet to be rendered
[Agcaoili, 483, supra].
024520CIV
Kinds
1. Preliminary
2. Garnishment
3. Levy on execution
Grounds upon which attachment may
issue
Sec. 1, Rule 57 of the Rules of Court provides
that at the commencement of the action or at
any time before the entry of judgment, a
plaintiff or any proper party may have the
property of the adverse party attached as
security for the satisfaction of any judgment
that may be recovered in the following cases:
1. In an action for the recovery of a specified
amount of money or damages, other than
moral and exemplary, on a cause of action
arising from law, contract, quasi-contract,
delict or quasi-delict against a party who is
about to depart from the Philippines with
intent to defraud his creditors;
2. In an action for money or property
embezzled or fraudulently misapplied or
converted to his own use by a public
officer, or an officer of a corporation, or an
attorney, factor, broker, agent, or clerk, in
the course of his employment as such, or
by any other person in a fiduciary
capacity, or for a willful violation of duty;
3. In an action to recover the possession of
property unjustly or fraudulently taken,
detained or converted, when the property,
or any part thereof, has been concealed,
removed, or disposed of to prevent its
being found or taken by the applicant or
an authorized person;
4. In an action against a party who has been
guilty of a fraud in contracting the debt or
incurring the obligation upon which the
action is brought, or in the performance
thereof;
5. In an action against a party who has
removed or disposed of his property, or is
about to do so, with intent to defraud his
creditors; or
6. In an action against a party who does not
reside and is not found in the Philippines,
or on whom summons may be served by
publication.
Process of Registration
1. Copy of writ in order to preserve any lien,
right or attachment upon registered land
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shall be filed with the Register of Deeds
where the land lies, containing number of
certificate of title of land to be affected or
description of land
2. Register of Deeds to index attachment in
names of both plaintiff & defendant or
name of person whom property is held or
in whose name stands in the records
a. If duplicate of certificate of title is not
presented:
i. Register of Deeds shall within 36
hours send notice to registered
owner by mail stating that there has
been registration & requesting him
to produce duplicate so that
memorandum be made
ii. If the owner neglects or refuses –
Register of Deeds shall report
matter to court.
b. Court after notice shall enter an order
to the owner to surrender certificate at
time & place to be named therein.
3. Although notice of attachment is not noted
induplicate, notation in book of entry of
Register of Deeds produces effect of
registration already
Effect of registration of attachment
1. Creates real right
2. Has priority over execution sale
3. But between 2 attachments – one that is
earlier in registration is preferred
Duty of Register of Deeds
Duty is ministerial but may refuse registration
in the following circumstances:
1. Title to land is not in the name of
defendant
• Exception: If the petitioner is an heir
2. No evidence is submitted to show that he
has present or possible future interest in
land
Discharge of attachment
An attachment may be discharged upon giving
a counter-bond, or on the ground that the
same was improperly or irregularly issued or
enforced, or that the bond is insufficient [Sec.
13, Rule 57, Rules of Court].
Effect: By the dissolution of the attachment
levied on the property through the filing of a
bond the released property becomes free and
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no longer liable to the results of the preceding
in which it was attached.
The act of the defendant of mortgaging the
released property to third persons is not a
conveyance in fraud of creditors, since the
transaction is legal and valid [Manila
Mercantile Co. v. Flores, G.R. No. 27552
(1927)].
2. Adverse Claim
Nature of Adverse Claim
The annotation of an adverse claim over
registered land under Sec. 70 of P.D. 1529
requires a claim on the title of the disputed
land [Castro v. Monsod, G.R. No. 183719
(2011)].
Registration of Adverse Claim
A claim is adverse when [Sec. 70 (1), PD
1529]:
1. Claimant’s right or interest in registered
land is adverse to the registered owner,
and
2. Such right arose subsequent to date of
original registration, and
3. No other provision is made in the Decree
for the registration of such right or
claimant
Note: A claim based on a future right does
not ripen into an adverse claim, nor can a
right still subject to negotiations be
enforced against a title holder [Cathay Metal
Corp. v. Laguna West Multipurpose Coop.,
G.R. No. 172204 (2014)].
Purpose of adverse claim
1. The annotation is a measure designed to
protect the interest of a person over an
immovable, where the registration of such
interest or right is not otherwise
provided for by P.D. 1529;
2. The annotation serves as a warning to
third parties dealing with said property
that someone is claiming an interest on
the same or a better right than the
registered owner of the property [Martinez
v. Garcia, G.R. No. 166536 (2010)].
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Requisites for registration of an adverse
claim:
1. The adverse claimant must give a
statement of the following in writing:
a. His alleged right or interest
b. How and under whom such alleged
right or interest is acquired
c. The description of the land in which
the right or interest is claimed and
d. The number of the certificate of title
2. The statement must be:
a. Signed by the adverse claimant
b. Sworn before a notary public
c. The statement must also state his
residence or the place to which all
notices may be served upon him
[Lozano v. Ballesteros, G.R. No.
49470 (1991)].
Incidents which may not be registered as
adverse claim
1. No adverse claim may be registered for
ownership over a parcel of land already
registered under the Torrens system
based on prescription and adverse
possession [Sec. 47, P.D. 1529].
2. Where a notice of lis pendens is
annotated on the title of the land already.
1. Since an adverse claim and a notice
of lis pendens have the same purpose
3. A claim based on occurrences prior to the
original registration is not registerable
[Aquino, 218, supra].
Duration of an adverse claim
1. Thirty (30) days from the date of
registration
2. After that, the annotation of adverse claim
may be cancelled, upon filing of a verified
petition by the party in interest.
• When cancelled, no second adverse
claim based on the same ground may
be registered by the same claimant.
Adverse claim is not ipso facto cancelled after
thirty (30) days, hearing is necessary.
[Sajonas v. CA, G.R. No. 102377 (1996)]
3. Sale on Execution or For Taxes or
Assessments
A valid levy is essential to the validity of an
execution sale, and levy is invalid if the notice
of levy of real property is not filed with the
office of the Register of Deeds [Valenzuela v.
Aguilar, G.R. No. L-18083 (1963)].
Execution sale
1. To enforce a lien of any description on
registered land, any execution or affidavit
to enforce such lien shall be filed with
Register of Deeds where the land lies
2. Register in the registration book &
memorandum upon proper certificate of
title as adverse claim or as an
encumbrance
3. To determine preferential rights between 2
liens: priority of registration of attachment
Tax sale
1. Sale of land for collection of delinquent
taxes and penalties due the Government
2. In personam (all persons interested shall
be notified so that they are given
opportunity to be heard)
a. Notice to be given to delinquent
taxpayer at last known address
b. Publication of notice must also be
made in English, Spanish, or local
dialect, posted in a public and
conspicuous place in place wherein
property is situated, and at the main
entrance of the provincial building
3. Sale cannot affect rights of other lien
holders unless they are given the right to
defend their rights: due process must be
strictly observed
4. Tax lien superior to attachment
Note: No need to register tax lien because it is
automatically registered once the tax accrues.
However, sale of registered land to foreclose
a tax lien needs to be registered.
Notice of Tax Sale
Where the registered owner was not notified
of the alleged tax delinquency and
proceedings relative to the tax sale, in view of
the in rem nature of tax sales, a notice by
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publication does not suffice. It is still
incumbent upon the city (or municipal)
treasurer to send notice of the tax delinquency
as well as notice by public auction directly to
the taxpayer in order to protect the interests of
the latter [Talusan v. Tayag, G.R. No. 133698
(2001)].
For purposes of real property tax, the
registered owner is deemed the taxpayer
[Talusan v. Tayag, supra].
A tax sale held despite the absence of actual
notice to the delinquent land owner is null and
void, and the title of the buyer therein is also
null and void [Sarmiento v. CA, G.R. No.
152627 (2005)].
Process of Registration
1. Officer’s return shall be submitted to
Register of Deeds together with duplicate
title
2. Register in the registration book
3. Memorandum shall be entered in the
certificate as an adverse claim or
encumbrance
4. After the period of redemption has expired
& no redemption (2 years from registration
of auction sale) is made: cancellation of
title & issuance of a new one
5. Before cancellation, notice shall be sent to
registered owner: to surrender title & show
cause why it shall not be cancelled
Note: Actual knowledge of a person is
equivalent to registration as against him.
4. Notice of Lis Pendens
Literally means “pending suit.” It is an
announcement to the whole world that a
particular real property is in litigation. The
inscription serves as a warning that one who
acquires an interest over litigated property
does so at his own risk, or that he gambles on
the result of the litigation over the property
[Marasigan v. IAC, G.R. No. L-69303 (1987)].
Purpose of lis pendens
1. To protect the rights of the party causing
the registration of the lis pendens;
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2. To advise third persons who purchase or
contract on the subject property that they
do so at their peril and subject to the result
of the pending litigation.
Effect of lis pendens
1. It keeps the subject matter within the
power of the court until the entry of final
judgment to prevent the defeat of the final
judgment by successive alenations. It
therefore creates merely a contingency &
not a lien.
2. It binds a purchaser, bona fide or not, of
the land subject to the litigation to the
judgment or decree that the court will
promulgate subsequently.
1. Without the notice of lis pendens, a
third party who acquires property after
relying on the certificate of title is a
purchaser in good faith [Lopez v.
Enriquez, G.R. No. 146262 (2005)].
When notice of lis pendens is proper:
1. To recover possession of real estate
2. To quiet title
3. To remove clouds upon the title thereof
4. For partition
5. Other proceedings of any kind in court
directly affecting the title to land or the use
or occupation thereof or the buildings
thereon
When notice of lis pendens is NOT proper:
1. Proceedings for the recovery of money
judgments
2. Attachments
3. Proceedings on the probate of wills
4. Administration of the estate of deceased
persons
5. Levies on execution
6. Foreclosure
Form of the notice of lis pendens [Sec. 76,
P.D. 1529]
1. The institution of the action or proceeding
2. The court wherein the same is pending
3. The date of the institution of the action
4. Reference to the number of the certificate
of title
5. Adequate description of the land affected
and registered owner thereof’
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When notice of lis pendens takes effect
The entry of the notice of lis pendens in the
primary entry book is sufficient to constitute
registration and such entry is notice to all
persons, including subsequent transferees, of
the pending action [Director of Lands v.
Reyes, G.R. No. L-27594 (1975)].
Other parties who need to register
1. Assignee in involuntary proceeding for
insolvency [Sec. 83, PD 1529]
a. Duty of the officer serving notice to file
a copy of the notice to the Register of
Deeds where the property of debtor
lies
b. Assignee elected or appointed by
court shall be entitled to entry of new
certificate of registered land upon
presentment of copy of assignment
with bankrupt’s certificate of title
(duplicate)
c. New certificate shall note that it is
entered to him as assignee or trustee
in insolvency proceedings
2. Government in eminent domain [Sec. 85,
PD 1529]
a. Copy of judgment shall be filed in the
Register of Deeds which states
description of property, certificate
number, interest expropriated, nature
of public use
b. Memorandum shall be made or new
certificate of title shall be issued
Effect of registration
1. Impossibility of alienating the property in
dispute during the pendency of the suit –
may be alienated but purchaser is subject
to final outcome of pending suit
2. Register of Deeds is duty bound to carry
over notice of lis pendens on all new titles
to be issued
Cancellation of lis pendens [Sec. 77, PD
1529]
1. Before final judgment – court may order
cancellation after showing that notice is
only for the purpose of molesting an
adverse party or it is not necessary to
protect the rights of the party who caused
it to be registered
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2. Register of Deeds may also cancel upon
verified petition of the party who caused
such registration
3. Deemed cancelled when certificate of
clerk of court stating manner of disposal of
proceeding is registered
VIII. NON-REGISTRABLE
PROPERTIES
Sec. 2, Art. XII, 1987 Constitution. All lands of the
public domain, waters, minerals, coal, petroleum,
and other mineral oils, all forces of potential
energy, fisheries, forests or timber, wildlife, flora
and fauna, and other natural resources are owned
by the State.
Sec. 2, Art. XI, 1987 Constitution. With the
exception of agricultural lands, all other natural
resources shall not be alienated.
The classification of public lands is an
exclusive prerogative of the Executive
Department of the Government 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 [Aquino, citing Director Lands and
Director of Forest Development v. CA, G.R.
No. L-58867 (1984)].
A. Civil Code provisions dealing
with non-registrable properties
1. Properties of public dominion [Art.
420, Civil Code]
1. Those intended for public use, such as
roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks,
shores, roadsteads, and others of similar
character; or
2. Those which belong to the State, without
being for public use, and are intended for
some public service or for the
development of the national wealth.
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2. Waters under Art. 502, Civil Code
4. Mineral lands
1. Rivers and natural beds
2. Continuous or intermittent waters of
springs and brooks running in their natural
beds and the beds themselves
3. Waters rising continuously or intermittently
on lands of public dominion
4. Lakes and lagoons formed by Nature on
public lands, and their beds
5. Rain waters running through ravines or
sand beds, which are also part of public
dominion
6. Subterranean waters on public lands
7. Waters found within the zone of operation
of public works, even if constructed by a
contractor
8. Waters rising continuously or intermittently
on lands belonging to private persons, to
the State, to a province, or to a city or
municipality from the moment they leave
such lands
9. The waste waters of fountains, sewers,
and public establishments
Both under the 1987 Constitution and Sec. 2
of the Public Land Act, mineral lands are not
alienable
and
disposable
[Lepanto
Consolidated Mining Co. v. Dumyung, G.R.
No. L-31666 (1979)].
5. Foreshore land and seashore and
reclaimed lands
Seashore, foreshore, and/or portions of
territorial waters and beaches, cannot be
registered. Even alluvial formation along the
seashore is part of public domain [Aquino,
citing Dizon v. Rodriguez, G.R. Nos. L-2030001 (1965)].
6. Lakes
Lakes are part of public dominion [Art. 502 (4),
Civil Code]
7. Creeks and Streams
B. Specific kinds of nonregistrable properties or lands
1. Forest or timberland, public forest,
forest reserves
2. National parks
Under the present Constitution, national parks
are declared part of the public domain, and
shall be conserved and may not be increased
nor diminished, except by law [Republic v.
AFP Retirement and Separation Benefits
System, G.R. No. 180463 (2013)].
3. Mangrove swamps
Mangrove swamps or mangroves should be
understood as comprised within the public
forests of the Philippines as defined in Sec.
1820, Administrative Code of 1917 [Director of
Forestry v. Villareal, G.R. No. L-32266
(1989)].
A dried up creek bed is property of public
dominion [Fernando v. Acuna, G.R. No.
161030 (2011)].
8. Military or Naval Reservations
The reservation made segregates it from the
public domain and no amount of time, in
whatever nature of possession, could have
ripened such possession into private
ownership [Republic v. Marcos, G.R. No. L32941 (1973)].
9. Watershed
The Constitution expressly mandates the
conservation and utilization of natural
resources, which includes the country’s
watershed [Tan v. Director Of Forestry, G.R.
No. L- 24548 (1983)].
10. Grazing lands
While the 1987 Constitution does not
specifically prove that grazing lands are not
disposable, yet if such lands are part of a
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forest reserve, there can be no doubt that the
same are incapable of registration [Aquino,
citing Director of Lands v. Rivas, G.R. No. L61539 (1986)].
11. Previously titled land
Proceeds from the indefeasibility of the
Torrens title.
12. Alluvial deposit along river when
man-made
Such deposit is really an encroachment of a
portion of the bed of the river, classified as
property of the public domain under Art. 420
(1) and Art. 502 (1) of the Civil Code, hence
not open to registration [Republic v. CA, G.R.
No. L-61647 (1984)].
13. Reservations for public and semipublic purposes
Sec. 14, Chapter 4, Book III of EO No. 292
provides that the President shall have the
power to reserve for settlement or public use,
and for specific public purposes, any of the
lands of public domain, the use of which is not
otherwise directed by law.
The land registration court has no jurisdiction
over non-registrable property and cannot
validly adjudge the registration of title thereof
in favor of a private applicant [Republic v.
Feliza, G.R. No. 182913 (2013)].
Thus, where it has so been adjudged, the river
not being capable of private appropriation or
acquisition by prescription, the title thereto
may be attacked, either directly or collaterally,
by the State which is not bound by any
prescriptive period provided by the Statute of
Limitation [Peña, citing Martinez v. CA, G.R.
No. L-31271 (1974)].
C. Patrimonial Property
Public domain lands become patrimonial
property not only with a declaration that these
are alienable or disposable. There must also
be an express government manifestation that
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the property is already patrimonial or no
longer retained for public service or the
development of national wealth under Art.
422, Civil Code. Only when the property has
become patrimonial can the prescriptive
period for the acquisition of the public
dominion begin to run [Malabanan v.
Republic, G.R. No. 179987 (2009)]
IX. DEALINGS WITH
UNREGISTERED LANDS
No deed, conveyance, mortgage, lease, or
other voluntary instrument affecting land not
registered under the Torrens system shall be
valid, except as between the parties thereto,
unless such instrument shall have been
recorded in the manner herein prescribed in
the office of the Register of Deeds for the
province or city where the land lies [Sec. 113
(1), PD 1529].
Effects
of
Transactions
Covering
Unregistered Land
1. As between the parties – The contract is
binding and valid even if not registered
2. As among third persons – There must
be registration for the transaction to be
binding against third persons
Primary Entry Book And Registration Book
The Register of Deeds for each province or
city shall keep a Primary Entry Book and a
Registration Book.
1. The Primary Entry Book shall contain,
among other particulars:
1. Entry number
2. Names of the parties
3. Nature of the document
4. Date, hour and minute it was
presented and received
2. The Registration Book – Provides
spaces whereon the annotation is made
after the instrument has been entered in
the
Primary
Entry
Book
Process of Registration
1. Registration is by way of annotation
2. The instrument dealing with unregistered
land is presented before the Register of
Deeds
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3. The Register will then determine if it can
be registered:
1. If, on the face of the instrument, it
appears that it is sufficient in law, the
Register of Deeds shall forthwith
record the instrument
2. In case the Register of Deeds refuses
its administration to record, he shall
advise the party in interest in writing of
the ground or grounds for his refusal.
The latter may appeal the matter to
the
Commissioner
of
Land
Registration.
Recording by the Register of Deeds is
ministerial.
Recording made under this section shall be
without prejudice to a third party with a better
right [Sec. 113, PD 1529].
Better right – refers to a right which must
have been acquired by a third party
independently of the unregistered deed, such,
for instance, as title by prescription, and that it
has no reference to rights acquired under that
unregistered deed itself [Peña, p. 600].
CIVIL LAW
persons who had lost their property. For this
purpose, an assurance fund was created. But
the assurance fund was not intended to block
any right which a person might have against
another for the loss of his land. Damages
were not recoverable from the assurance fund
when they could be recovered from the
person who caused the loss [Estrellado v.
Martinez, G.R. No. 23847 (1925)].
B. Conditions for Compensation
from Assurance Fund
1. The person who brings an action for
damages against the Assurance Fund be
the registered owner, and, as to holders of
transfer certificates of title, that they be
innocent purchasers in good faith and for
value, and
2. There must be a showing that there is no
negligence on the part of the party
sustaining the loss or damage or
deprivation of any land or interest therein
by the operation of the Property
Registration Decree [La Urbana v.
Bernardo, G.R. L-41915 (1936)]
C. Prescriptive Period
Involuntary Dealings In Unregistered
Lands
PD 1529 now permits the registration of
involuntary dealings in unregistered lands.
Tax sale, attachment and levy, notice of lis
pendens, adverse claim and other instruments
in the nature of involuntary dealings with
respect to unregistered lands, if made in the
form sufficient in law, shall likewise be
admissible to record [Sec. 113 (d), PD 1529].
X. ASSURANCE FUND
A. Nature of Assurance Fund
The plaintiff has a period of six (6) years from
the time the right of action accrues within
which to bring the action against the
Assurance Fund [Sec. 102, PD 1529].
D. Action of compensation from
funds
Requisites:
1. That a person sustains loss or damage, or
is deprived of any estate or interest in
land;
2. On account of the bringing of land under
the operation of the Torrens System
arising after original registration;
3. Through fraud, error, omission, mistake or
misdescription in a certificate of title or
entry or memorandum in the registration
book;
4. Without negligence on his part; and
5. Is barred or precluded from bringing an
action for the recovery of such land or
estate or interest therein [Stilianopoulos v.
The authors of the Torrens system also wisely
included provisions intended to safeguard the
rights of prejudiced parties rightfully entitled to
an interest in land but shut off from obtaining
titles thereto. As suppletory to the registration
of titles, pecuniary compensation by way of
damages was provided for in certain cases for
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Register of Deeds, G.R. No. 224678
(2018)].
E. Limitation of Action
Any action for compensation against the
Assurance Fund by reason of any loss,
damage or deprivation of land or any interest
therein shall be instituted within a period of six
(6) years from the time the right to bring such
action first occurred.
The right of action shall survive to the legal
representative of the person sustaining loss or
damage, unless barred in his lifetime.
If at the time such right of action first accrued
the person entitled to bring such action was a
minor or insane or imprisoned, or otherwise
under legal disability, such person or anyone
claiming from, by or under him may bring the
proper action at any time within two (2) years
after such disability has been removed,
notwithstanding the expiration of the original
period of six (6) years first above provided
[Sec 102, PD 1529].
CIVIL LAW
c.
Hearing is then conducted
d. Court may then order reconstitution if
meritorious
2. Administrative – which may be availed
only in case of:
a. Substantial loss or destruction of
original land titles due to fire, flood, or
other force majeure as determined by
the LRA
b. Number of certificates of title lost or
damaged should be at least 10% of
the total number in possession of the
Register of Deeds
c. In no case shall the number of
certificates of title lost or damaged be
less than 500; AND Petitioner must
have the duplicate copy of the
certificate of title [RA 6732]
XI. RECONSTITUTION OF
TITLES
The restoration of the instrument which is
supposed to have been lost or destroyed in its
original form and condition, under the custody
of
the
Register
of
Deeds.
The purpose of reconstitution is to have the
instrument
reproduced
after
proper
proceedings in the same form they were when
the loss or destruction occurred [Heirs of
Pedro Pinote v. Dulay, G.R. No. 56694
(1990)].
A. Kinds
1. Judicial
a. A petition is filed before the RTC
b. Petition is published in the Official
Gazette for two (2) consecutive issues
and posted on main entrance of
municipality for at least thirty (30) days
before hearing
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SUCCESSION
SUCCESSION
SUCCESSION
I. General Provisions
A. Definition
Succession is a mode of acquisition by
virtue of which the property, rights and
obligations, to the extent of the value of the
inheritance, of a person are transmitted
through death to another or others either by
will or by operation of law [Art. 774, Civil
Code].
1. Kinds of Succession
1.
2.
3.
4.
Testamentary
Legal or Intestate
Mixed
Compulsory
2. Scope of Inheritance
General Rule:
1. All the property, rights and obligations
(to the extent of the inheritance) of a
person which are not extinguished by
such person’s death [Art. 776, Civil
Code].
2. The property and the transmissible
rights and obligations which have accrued
to item (1) above since the opening of
the succession [Art. 781, Civil Code].
CIVIL LAW
or
circumstances
of
a
particular individual
4. Criminal responsibility
● Exception: In case of death of any
of the parties to a complaint for
illegal
dismissal
during
the
pendency of the proceedings, he
or she may be substituted by his
or her heirs [Nedira v. NJ World
Corporation, G.R. No. 240005
(2022)]
b. Intransmissible by stipulation
c. Intransmissible by provision of law
● Examples:
1. Usufruct [Art. 603, Civil Code]
2. Agency [Art. 1919, Civil Code]
3. Commodatum
[Art.
1939,
Civil Code]
2. Monetary debts left by the decedent
are intransmissible in the sense that they
are paid from the estate of the decedent
and only the net estate or remainder goes
to the heirs. If the decedent’s estate is
not sufficient to pay his debts, his heirs
cannot be held liable for said debts in
their personal capacity [Rule 88-90, Rules
of Court].
B.
Rules
on
of Succession
Opening
1.
The
rights
to
succession
are transmitted from the moment
of the death of the decedent [Art.
777, Civil Code]
Implications:
1. The law in effect at the time of death of
the decedent governs the succession
[Art. 2263, Civil Code];
2. The heir becomes the owner of his share
in the inheritance as well as all fruits
which accrue to such share upon the
death of the decedent;
3. Upon the death of the decedent, heirs
may immediately possess, administer
and dispose of their shares in the estate
(in the absence of existing debts/claims
against the estate);
4. Since succession takes place by
operation of law at the moment of the
death of the decedent, the heirs can sue
Exceptions:
1. Rights and obligations which are
not transmissible [Art. 1311, Civil Code];
and
a. Intransmissible by nature
● Refers to rights and obligations
which are strictly personal (intuitu
personae)
● Examples:
1. Those relating to family
relations
2. Those arising from public law
3. Those which involve or require
the
personal
skills,
qualifications, characteristics
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upon the rights of the decedent, without
having to be appointed executor or
administrator [Emnace v. CA, G.R. No.
126334 (2001)], and without need of a
judicial declaration of their status as heirs
[Ende v. Roman Catholic Prelate of the
Prelature Nullius of Cotabato, Inc., G.R.
No. 191867 (2021)];
5. Heirs may also be sued without a
previous declaration of heirship, provided
there is no pending special proceeding for
the settlement of estate of the decedent
[Gayon v. Gayon, G.R. No. L-28394
(1970)];
6. The possession of hereditary property is
deemed
transmitted
to
the
heir
without interruption and from the moment
of death of the decedent, in case the
inheritance is accepted [Art. 533(1), Civil
Code];
7. Estate taxes accrue upon death of the
decedent, even if the heirs come into
possession only later.
2. A person may be “presumed” dead
for the purpose of opening his
succession after absence of:
No. of Years
The presumption of death under Article 390
and 391 of the Civil Code arises by operation
of law, without need of a court declaration.
[Estrellita Tadeo-Matias vs. Republic of the
Philippines, G.R. No. 230751 (2018)]
1. Decedent – person whose property is
transmitted through succession, whether
or not he left a will [Art. 775, Civil Code]
2. Testator – a decedent who left a will [Art.
775, Civil Code]
3. Successor/Heir – person who succeeds
to the property of the decedent.
1. Kinds of Successors/ Heirs
1. Compulsory Heirs;
2. Voluntary or Testamentary Heir;
a. Instituted heir by universal title
b. Devisees are persons to whom gifts
of real property are given by virtue of
a will [Art. 782, Civil Code]
c. Legatees are persons to whom gifts of
personal property are given by virtue
of a will [Art. 782, Civil Code]
3. Legal or Intestate Heirs.
Age of Disappearance
10 years
75 years old and below
5 years
76 years old and above
A person who has gone missing for at
least four (4) years:
1. While on board a lost sea vessel or
airplane; or
2. While taking part in war as a member of
the armed forces; or
3. Has been in danger of death under other
circumstances shall be presumed dead for
the purpose of division of the estate.
If the absent person appears, such person
may recover the properties in the condition in
which they may be found or the price of any
alienated property may be given to said
returning person [Arts. 390-392, Civil Code].
024531CIV
C. Subjects of Succession
Note: In case of preterition, the distinction
between an instituted heir by universal title
and legatee/devisee is significant. Preterition
annuls the institution of heir by universal title.
On the other hand, preterition may result in
the reduction, not annulment, of a legacy or
devise to satisfy the legitime of a preterited
compulsory heir. [Art. 854, Civil Code].
Compulsory Heir
Devisee/ Legatee
Represents
the
juridical
personal
obligations
not
extinguished
by
death
Does not represent
regardless of the
legacy
or
devise
value
Succeeds to the
remainder of the
decedent’s
properties after all
the debts and all
the legacies and
Succeeds only to the
determinate thing or
quantity
which
is
mentioned in the
legacy or device
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Compulsory Heir
CIVIL LAW
Devisee/ Legatee
Exception:
What cannot be
delegated to 3rd
persons
devices have been
paid
Can exist in either Can
exist
only
testamentary
or in
testamentary
intestate
succession
succession
II. Testamentary Succession
A. General Provisions
Testamentary succession is that which
results from the designation of an heir, made
in a will executed in the form prescribed by
law. [Art. 779, Civil Code}
What may be
entrusted to 3rd
persons
designation of 1. designation
of
heirs, devisees,
person/institution
and legatees
falling under a
2. duration/efficac
class specified by
y of designation
testator
3. determination
2. manner
of
of
portions,
distribution
of
when referred
property specified
to by name [Art.
by testator [Art.
785,
Civil
786, Civil Code].
Code].
Note: The testator
must first specify the
class and the amount
of property for proper
delegation.
1.
B. Wills
Definition of a will: 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, Civil Code].
1. Kinds of Wills
b. Free and
Civil Code]
intelligent
[Art.
839,
Execution of a will tainted by any vices
affecting the free will of the testator can cause
its disallowance.
c. Solemn or formal
1. Notarial – a will which must comply with
formal requirements under the law,
including notarization and attestation,
among others [Arts. 804-808, Civil Code].
2. Holographic – a will entirely written,
dated and signed by the hand of the
testator [Art. 810, Civil Code].
If the formalities of a will required by law are
not complied with, it will be disallowed [Art.
839, Civil Code].
d. Revocable and ambulatory
2. Characteristics of Wills:
A will can be revoked at any time before the
testator’s death [Art. 828, Civil Code].
a. Purely personal
e. Mortis causa
General Rule: the making of a will is a strictly
personal act. Thus,
● It cannot be left in whole or in part to the
discretion of a third person, or
● It cannot be accomplished through an
agent or attorney.
It takes effect upon the testator’s death [Art.
783, Civil Code].
024532CIV
f. Individual
Prohibition against joint wills [Art. 818, Civil
Code].
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g. Executed with animus testandi
Intended by the testator to govern the
disposition of testator's property upon
testator's death
h. Executed with testamentary capacity
i. Unilateral act
Does not involve an exchange of values or
depend
on
simultaneous
offer
and
acceptance.
j. Dispositive
Disposes of property.
Even in the absence of dispositive provisions,
a will disinheriting a compulsory heir is still a
dispositive will because a disinheritance has
the effect of disposing the legitime of the
disinherited compulsory heir in favor of other
compulsory heirs [Seangio v. Reyes, G.R.
Nos. 140371-72 (2006)].
Exception: Non-dispositive wills.
e.g. A will recognizing an illegitimate child
k. Statutory grant
Permitted only by law, not a constitutional
right.
C. Non-Delegability of
Testamentary Power
General Rule: The making of a will is a
purely personal act. It cannot be e left in
whole or in part to the discretion of a third
person, or accomplished through an agent or
an attorney.
The following acts relative to making a will
cannot be delegated to third persons:
1. designation of heirs, devisees, and
legatees
2. duration/efficacy of designation
3. determination of portions, when
4. referred to by name [Art. 785, Civil Code].
024533CIV
Exceptions: The following acts relative to the
making of a will can be delegated to third
persons:
1. designation of person/institution falling
under a class specified by testator
2. manner of distribution of property
specified by testator [Art. 786, Civil Code].
D. Applicable Law as to Form
and Substance of a Will
Aspect of
the Will
Governing Law
Formal
Validity
Law in force at the time the
will was executed [Art. 795,
Civil Code].
Intrinsic
Validity
Law
of
decedent’s
nationality at the time of his
death [Arts. 16 and 2263,
Civil Code].
Aspects of the will governed by the
national law of the decedent:
1. Order of succession;
2. Amount of successional rights;
3. Intrinsic
validity
of
testamentary
provisions; and
4. Capacity to succeed [Art. 16, Civil Code]
E. Testamentary Capacity
Time of Determining Capacity
Capacity to make a will is determined as of
the time of making thereof [Art. 798, Civil
Code].
Supervening incapacity does not invalidate an
effective will. Likewise, a supervening capacity
does not validate the will of an incapable [Art.
801, Civil Code].
Requisites for Capacity to Make a Will
1. The testator must not be expressly
prohibited by law to make a will [Art.
796, Civil Code];
2. The testator must be at least 18 years
old [Art. 797, Civil Code]; and
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3. The testator must be of sound mind at
the time of execution [Art. 798, Civil
Code].
Applicable Laws as to Formal Validity:
Applicable Law
Test of soundness of mind
As to
Time
To be of sound mind, the testator must know:
1. The nature of the estate to be disposed of;
2. The proper objects of his bounty;
3. The character of the testamentary act [Art.
799, Civil Code]
Law in force at the time the will
was executed [Art. 795, Civil
Code]
As to
Place
Law of the country in which the will
was executed [Art. 17, Civil Code]
General Rule: Soundness of
presumed [Art. 800, Civil Code].
mind
is
Exceptions:
1. When the testator, one (1) month or less
before the execution of the will, was publicly
known to be insane [Art. 800, Civil Code].
2. When the testator executed the will after
being placed under guardianship or ordered
committed, in either case, for insanity under
Rules 93 and 101 of the Rules of Court, and
before said order has been lifted [Torres v.
Lopez, G.R. No. L-25966 (1926)].
F. Forms of Wills
In General [Art. 804, Civil Code]
1. The will must be in writing;
2. It must be in a language or dialect
known to the testator.
Arts. 815-817, Civil Code (summarized in
the table below) provide for the various
governing laws in these instances:
1. A will was made in a foreign country by a
Filipino [Art. 815];
2. A will was made in a foreign country by an
alien [Art. 816];
3. A will was made in the Philippines by an
Alien [Art. 817].
1. Attested or Notarial Wills
a. Formal requirements for notarial
wills:
1. Subscribed to by the testator or testator’s
representative at the end;
2. Attested and subscribed by three (3) or
more witnesses in the presence of the
testator and of one another;
3. Marginal signatures;
4. Pagination in letters; and
5. Acknowledged before a notary public.
Note: Unlike in holographic wills, there is no
requirement that an attested will should be
dated.
Formal Requirements
Subscription
Subscribed at the end of the will by:
1. Testator himself; or
2. Testator’s name written by a representative in his presence and under
his express direction.
Attestation Clause
Attested and subscribed by three (3) or more credible witnesses in the
presence of the testator and of one another [Art. 805, Civil Code]
The attestation clause shall state the following [par. 3, Art. 805, Civil
Code]:
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Formal Requirements
1. Number of pages;
2. The fact that the testator or his representative under his express
direction signed the will and every page in the presence of instrumental
witnesses; and
3. That the witnesses signed the will and all its pages in the presence of
the testator and of one another.
The signatures of the witnesses must be at the bottom of the attestation
clause [Cagro v. Cagro, G.R. No. L-5826 (1953)].
The notary public cannot be counted as an attesting witness [Cruz v.
Villasor, G.R. No. L-32213 (1973)].
Test of presence: Not whether they saw each other sign, but whether they
might have seen each other sign had they chosen to do so considering their
mental and physical condition and position with relation to each other at the
moment of inscription of each signature [Jaboneta v. Gustilo, G.R. No. 1641
(1906)].
Effect of omissions: Omissions which can be supplied by an examination
of the will itself, without the need of resorting to extrinsic evidence, will not
be fatal and will not prevent allowance of the will.
Marginal Signatures
General Rule: Testator or his representative shall write his name, and the
witnesses shall sign every page except the last page [Art. 805, Civil Code].
Exceptions:
1. When the will consists of only one (1) page;
2. When the will consists of only two (2) pages, the first of which contains
all dispositions and is signed at the bottom by the testator and the
witnesses, and the second page contains only the attestation clause duly
signed at the bottom by the witnesses [Abangan v. Abangan, G.R. No. L13431 (1919)];
3. The use of thumbprint was allowed [Matias v. Salud, G.R. No. L-10751
(1958)];
4. The inadvertent failure of one witness to affix his signature to one (1)
page of a testament, due to the simultaneous lifting of two (2) pages in
the course of signing, is not per se sufficient to justify denial of probate
[Icasiano v. Icasiano, G.R. No. L-18979 (1964)].
Page Numbers
All the pages of the will shall be numbered correlatively in letters placed
on the upper part of each page (i.e. Page One of Five Pages) [Art. 805,
Civil Code].
Acknowledged
before a notary
public [Art. 806,
Civil Code]
The certification of acknowledgement need not be signed by the notary in
the presence of the testator and the witnesses [Javellana v. Ledesma,
G.R. L7179 (1955)].
Additional
requirements for
1. Deaf/Deaf-Mute [Art. 807, Civil Code]
. Testator must personally read the will if he is able to do so; or
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Formal Requirements
handicapped
testators
a. The Testator shall personally designate two (2) persons to read the
contents and communicate it to him in some practicable manner.
2. Blind [Art. 808, Civil Code]
. The will shall be read to the testator twice by one of the subscribing
witnesses and by the notary public acknowledging the will.
a. A testator suffering from glaucoma may be considered as legally blind
[Garcia v. Vasquez, G.R. No. L-26615 (1970)].
b. The provision requiring reading of a will twice to a blind testator also
applies to an illiterate testator [In Re: Probate of the Will of Cosico,
G.R. No. 246997 (2021)].
General Rule
b. Witnesses to a Notarial Will
(Qualification and Disqualifications)
Qualifications [Art. 820, Civil Code]:
1. Of sound mind;
2. Aged 18 years or over;
3. Not blind, deaf or dumb; and
4. Able to read and write.
Disqualifications [Art. 821, Civil Code]
1. Person not domiciled in the Philippines;
2. Those who have been convicted of
falsification, perjury, or false testimony.
The notary public before whom the will is
acknowledged by the testator and the
witnesses cannot be considered a witness to
the will. [Cruz v. Villasor, supra]
Creditors may become witnesses. [Art. 824,
Civil Code]
Supervening incompetency of a witness shall
not prevent the allowance of the will [Art. 822,
Civil Code].
c. Rules on Interested Witness [Art.
823, Civil Code]
General Rule
Exception
Devises or legacies
in favor of an
interested witness
or his or her
spouse, parent, or
child will be void.
If there are three (3)
other
competent
witnesses,
the
devise or legacy shall
be valid and the
interested
witness
024536CIV
Exception
shall be treated as a
mere surplusage.
Note: A survivorship agreement is not a
will [Vitug v. CA, G.R. No. 82027 (1990)].
● A survivorship agreement is a contract
where two or more parties agree that,
upon the death of one of the co-owners,
the title to the property shall vest to the
survivor. Said contract imposes a mere
obligation with a term (i.e. the death of
one of the co-owners.)
● It is a valid contract but its effect may be
illegal if it is used as a mere cloak to hide
an inofficious donation, to transfer
property in fraud of creditors, or to defeat
the legitime of a compulsory heir.
● A survivorship agreement is NOT a will
because it does not pertain to a testator
but to a co-ownership. Therefore, it need
not follow the solemnities of will and it
need not be probated.
● A survivorship agreement is neither a
donation inter vivos or mortis causa, but
instead is an aleatory contract.
2. Holographic Wills
a. Formal requirements:
1.
2.
3.
In writing [Art. 804, Civil Code];
In a language known to the testator [Art.
804, Civil Code]; and
Entirely written, dated and signed in the
hand of the testator himself [Art. 810,
Civil Code].
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1. At least one (1) witness who knows the
handwriting and signature of the testator;
explicitly declare that it is the testator’s;
2. If contested – at least three (3) of such
witnesses;
3. In the absence of a competent witness,
expert testimony may be resorted to.
of the testator’s sole heir. In this case, the
holographic will had only one (1) substantial
provision, which was altered by substituting
the original heir with another, but which
alteration was not authenticated by the full
signature of the testator, the effect must be
that the entire will is voided or revoked for the
simple reason that nothing remains in the will
after that which could remain valid.
General Rule: The holographic will itself must
be presented for probate [Gan v. Yap, G.R.
No. L-12190 (1958)].
e. Effect of Insertion Written by
Another Person on the Validity of a
Holographic Will
b. Witnesses Required for Probate [Art.
811, Civil Code]
Exception: If there is a photostatic copy or
xerox copy of the holographic will, it may be
presented for probate [Rodelas v. Aranza,
G.R. No. L-58509 (1982)].
c. Additional Dispositions
In holographic wills, the dispositions of the
testator written below his signature must be
dated and signed by him in order to make
them valid as testamentary dispositions [Art.
812, Civil Code].
When a number of dispositions appearing in a
holographic will are signed without being
dated, and the last disposition has a signature
and date, such date validates the dispositions
preceding it, whatever be the time of prior
dispositions [Art. 813, Civil Code].
When Made
Effect
After
the
execution,
without consent
of testator
Insertion considered
not written. Validity
cannot be defeated
by the malice or
caprice of a third
person
After execution,
with consent
Will is valid, insertion
is void
Contemporaneo
us
to
the
execution of the
will
Will is void because it
is not written entirely
by the testator
3. Other Types of Wills
a. Joint wills
d. Insertion, Cancellation, Erasure or
Alteration [Art. 814, Civil Code]
To be valid, the testator must authenticate any
insertion, cancellation, erasure, or alteration
by his full signature.
If such change is not authenticated by the
testator, such change is considered not made.
Thus, “the will is not thereby invalidated as a
whole, but at most only as regards the
particular words erased, corrected, or
inserted” [Kalaw v. Relova, G.R. No. L-40207
(1984), citing Velasco v. Lopez, G.R. No. 905
(1903)].
1. A single testamentary instrument;
2. Which contains the wills of two (2) or more
persons;
3. Jointly executed by them;
4. Either for their reciprocal benefit or for the
benefit of a third person.
Rules on joint wills:
Filipinos cannot make joint wills. Joint wills
executed by Filipinos, whether in the
Philippines or abroad, are prohibited. [Arts.
818 and 819, NCC]
Note: However, in the case of Kalaw v.
Relova, the alteration involved the designation
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b. Mutual wills
1. Executed pursuant to an agreement
between two (2) or more persons;
2. Jointly executed by them; and
3. Either for their reciprocal benefit or for the
benefit of a third person.
Note: This is prohibited under Art. 818, Civil
Code.
c. Reciprocal wills
1. Testators
name
each
other
as
beneficiaries in their own wills (there are
therefore 2 separate documents);
2. Under similar testamentary plans – valid.
G. Codicil and Incorporation by
Reference
1. Codicil
a.
b.
c.
d.
It is a supplement or addition to a will;
Made after the execution of a will;
Annexed to be taken as a part of the will;
By which any disposition made in the
original will is explained, added to, or
altered;
Note: A codicil must be executed as in the
case of a will for it to be effective [Art. 826,
Civil Code], but need not take the same form
as the will to which it will be attached. Thus, a
holographic will may have a notarial codicil,
and a notarial will may have a holographic
codicil.
2. Incorporation by Reference
CIVIL LAW
except in case of voluminous books of
account or inventories.
Note: Not available in holographic wills.
H. Conflict Rules
Governing laws, in general
Aspect of
the Will
Governing Law
Formal
Validity
Law in force at the time the
will was executed [Art. 795,
Civil Code].
Intrinsic
Validity
Law of decedent’s nationality
at the time of his death [Arts.
16 and 2263, Civil Code].
Aspects of the will governed by the
national law of the decedent:
1. Order of succession;
2. Amount of successional rights;
3. Intrinsic
validity
of
testamentary
provisions; and
4. Capacity to succeed [Art. 16, Civil Code]
Governing Law as to the Place of
Execution of Wills:
Testator
Place of
Execution of
Will
FIlipino
Philippines
Philippine Law
[Art. 16, Civil
Code]
Outside of the
Philippines
1.
Philippine
Law [Art. 815,
Civil Code]; or
2. Law of the
country in which
it is executed
[Art. 17, Civil
Code]
Requisites:
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
Alien
Philippines
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,
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Governing
Law
1.
Philippine
Law; or
2. Law of the
country
of
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Testator
Place of
Execution of
Will
CIVIL LAW
Governing
Law
which testator is
a citizen or
subject
[Art.
817, Civil Code]
Outside of the
Philippines
1.
Philippine
Law [Art. 816,
Civil Code]; or
2. Law of the
testator’s
country; or
3. Law of the
place where the
testator resides;
or
4. Law of the
country where
the
will
is
executed [Art.
17, Civil Code]
testator. The right of revocation cannot be
waived or restricted [Art. 828, Civil Code].
Note: Even if a holographic will was not
intended to be revoked, unless a xerox copy
exists, it can no longer be proved.
Law Governing Revocation [Art. 829,
Civil Code]
Place of
Revocation
Testator’s
Domicile
Governing Law
Philippines
Philippines, or
some
other
country
Philippine Law
Outside the
Philippines
Philippines
(This situation
is
not
governed by
Art. 829)
1.
Law
of
Domicile
Philippine law; or
2. Law of Place
of Revocation; or
3. Law of Place
of Execution of
Will [Balane]
Foreign
country
1. Law of the
Place
of
Execution of Will;
or
2. Law of the
place in which
the testator had
his domicile at
the
time
of
revocation
I. Modes of Revocation of Wills
and Testamentary Dispositions
A will may be revoked by the testator at any
time before his death. [Art. 828, Civil Code]
Modes of Revocation [Art. 830, Civil
Code]:
1. By implication of law;
● EXAMPLE:
a. Preterition [Art. 854, Civil Code]
b. Legal separation [Art. 63, Family
Code]
c. Unworthiness to succeed [Art.
1032, Civil Code]
2. By the execution of a will, codicil or other
writing executed as provided in the case
of wills (may be total or partial); or
3. By burning, tearing, canceling, or
obliterating the will with the intention of
revoking it, by the testator himself, or by
some other person in his presence, and
by his express direction.
1. Effect on the Recognition of a NonMarital Child
The recognition of an illegitimate child does
not lose its legal effect even though the will
wherein it was made should be revoked [Art.
834, Civil Code].
2. Theory of Dependent Relative
Revocation
General Rule: A revocation made in a
subsequent will shall take effect, even if the
new will should become inoperative by reason
of the incapacity of the heirs, devisees or
legatees designated therein, or by their
renunciation [Art. 832, CC].
The act contemplating revocation must be
done at any time before the death of the
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Exception: Doctrine of Dependent Relative
Revocation [Molo v. Molo, G.R. No. L-2538
(1951)].
● The rule that where the act of destruction
is connected with the making of another
will so as to fairly raise the inference that
the testator meant the revocation of the
old to depend upon the efficacy of the new
disposition intended to be substituted, the
revocation will be conditional and
dependent upon the efficacy of the new
disposition; and if for any reason, the new
will intended to be made as a substitute is
inoperative, the revocation fails and the
original will remain in full force.
The failure of the new testamentary
disposition upon whose validity the revocation
depends is equivalent to the non-fulfillment of
a suspensive condition and hence prevents
the revocation.
3. Revocation Based on a False
Cause
A revocation based on a false cause or illegal
cause is null and void [Art. 833, Civil Code].
It must appear from the will that the testator is
revoking because of the cause which he did
not know was false.
4. Republication and Revival
Corrects
and
defects
by
extrinsic Restores a revoked
intrinsic will
Rules of Republication
Art. 835
Art. 836
Void as to form Void as to:
[Art.
805,
Civil 1. Non-formal defect
Code]
2. Previously
revoked
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How to Republish:
1. Execute new
will
2. Copy out the
provisions from
the original void
will
How to Republish:
1. Execute new will
or codicil
2. Simply make
references to old
will
Reference to
original
insufficient
Reference to original
sufficient
J. Allowance and Disallowance
of Wills
Probate Requirement: No will shall pass
either real or personal property unless it is
proved and allowed in accordance with the
Rules of Court [Art. 838, Civil Code].
Definition of a Probate: A proceeding in rem
required to establish the validity of a will and
in order to pass real or personal property. The
testator himself may, during his lifetime,
petition the court having jurisdiction for the
allowance of his will [Art. 838, Civil Code].
1. Kinds of Probate
Note: Probate of a will is mandatory.
Revival
Takes place by an Takes
place
act of the testator
operation of law
Art. 836
1. Post-mortem: after death
2. Ante-mortem: during the testator’s lifetime
Republication v. Revival
Republication
Art. 835
1. Identity
2. Due execution
3. Testamentary capacity of the testator
2. Scope of Probate Proceedings [Art.
839, Civil Code]
General Rule: The probate court cannot
inquire into the intrinsic validity of
testamentary provisions. Only the extrinsic
validity of such wills may be examined.
Exceptions:
1. When practical considerations demand
that the intrinsic validity of the will be
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resolved: When the will is intrinsically void
on its face (e.g., when there is clearly a
preterition) such that to rule on its formal
validity would be a futile exercise [Acain v.
IAC, G.R. No. L-72706 (1987)].
2. The claimant and all the other parties
having legal interest in the property
consent,, either expressly or impliedly, to
the submission of the question of intrinsic
validity to the court [Valera v. Inserto, G.R.
No. L-56504 (1987)].
3. Probate court may pass upon the title to a
property, but such determination is
provisional and not conclusive, and is
subject to the final decision in a separate
action to resolve title [Pastor v. CA, G.R.
No. L-56340 (1983)].
4. The probate court may decide on the
ownership of a property when the estate
contains only one (1) property to be
adjudicated upon because it would be
impractical
otherwise
[Portugal
v.
Portugal-Beltran, G.R. No. 155555
(2005)].
3. Effect of Final Decree of Probate,
Res Judicata on Formal Validity
The probate of a will by the probate court
having jurisdiction thereof is usually
considered as conclusive as to its due
execution and validity and is also conclusive
that the testator was of sound and disposing
mind at the time when he executed the will,
and was not acting under duress, menace,
fraud, or undue influence, and that the will is
genuine and not a forgery [Mercado v. Santos,
G.R. No. 45629 (1938)].
4. Grounds for Denying Probate
1.
2.
3.
4.
024541CIV
If the formalities required by law have not
been complied with;
If the testator was insane or otherwise
mentally incapable of making a will at the
time of its execution;
If it was executed through force or under
duress, or the influence of fear, or
threats;
If it was procured by undue and improper
pressure and influence, on the part of the
beneficiary or some other person;
5.
6.
If the signature of the testator was
procured by fraud; and
If the testator acted by mistake or did not
intend that the instrument he signed
should be his will at the time affixing his
signature thereto [Art. 839, Civil Code].
K. Heirs
1. Compulsory Heirs
a. Classes of Compulsory Heirs [Art.
887, Civil Code]
1. Primary:
Legitimate
Children
and
Legitimate Descendants with respect to
their Legitimate Parents and Ascendants
2. Secondary: Those who succeed only in
the absence of the primary compulsory
heirs:
a. Legitimate Parents and Legitimate
Ascendants, with respect to their
Legitimate
Children
and
Descendants.
b. Illegitimate Parents with respect to
their Illegitimate Children.
Note that other illegitimate ascendants are
not included.
3. Concurring: Those who succeed together
with the primary or the secondary
compulsory heirs:
● Surviving Spouse
● Illegitimate Children and Illegitimate
Descendants
2. Institution of Heirs
A will shall be valid even though it —
1. should not contain an institution of an heir;
or
2. such institution should not comprise the
entire estate; or
3. the person so instituted should not accept
the inheritance or be incapacitated to
succeed.
In such cases, the testamentary dispositions
made in accordance with law shall be
complied with and the remainder of the estate
shall pass to the legal heirs [Art. 841, Civil
Code].
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a. Limitations on the Institution of
Heirs
be presumed to have been individually
instituted.
1. Extent of Grant [Art. 842, Civil Code]
Example: “I give to A, B, and the children of D
my parcel of land in Quezon City.” If D has
four (4) children, the parcel of land in Quezon
City shall be divided into six (6) parts, under
Art. 847, since each of D’s children shall
receive one share.
Freedom of disposition depends upon the
existence, kind and number of compulsory
heirs.
1. No compulsory heirs – Testator has full
power of disposition
2. With compulsory heirs – Testators
cannot disregard the rights of the
compulsory heirs. Testator may dispose of
the free portion of his estate only.
2. Effect of Predecease of Heir [Art. 856,
Civil Code]
Any heir who dies before the testator or is
incapacitated to succeed or renounces the
inheritance transmits no rights of the testator
to his own heirs.
b. Collective Institution
There is a collective institution of heirs when a
group of individuals is called to inherit as one
(1) unit, as opposed to individually.
General rule: A collective institution of some
heirs, when made in conjunction with the
individual institution of other heirs, shall be
deemed as an individual institution.
Exception: Where it is clear that the testator
intended to institute the heirs collectively, then
the will of the testator shall be given effect.
[Art. 847, Civil Code]
c. Proscription
Institution
Against
Collective
The Civil Code contains no express
proscription against the collective institution of
heirs. However, Art. 847 provides for a
presumption
against
collective
institutions, where it is made in conjunction
with individual institutions of heirs.
Art. 847 provides that if the testator institutes
some
heirs
individually,
and
others
collectively, those collectively instituted shall
024542CIV
d. Institution Based on a False Cause
General rule: The statement of a false cause
for the institution of an heir shall be
considered as not written.
Exception: If it appears from the will that the
testator would not have made such an
institution if he had known the falsity of such a
cause. [Art. 850, Civil Code]
Art. 850 is a positive injunction to ignore
whatever false cause the testator may have
written in his will for the institution of heirs.
The institution may be annulled only when one
is satisfied, after an examination of the will,
that the testator clearly would not have made
the institution had she known the cause for it
to be false. [Austria v. Reyes, G.R. No. L23079,(1970)]
e. Manner of Distribution:
1. Heirs instituted without designation of
shares shall inherit in equal parts [Art.
846, Civil Code]
2. If the institution pertains to some heirs
individually and others collectively, the
presumption is that all are individually
instituted [Art. 847, Civil Code]
3. If siblings are instituted (whether full or
half-blood), the presumption is that the
inheritance is to be distributed equally
[Art. 848, Civil Code]. This is different from
the rules of distribution in intestate
succession.
4. If parents and children are instituted, they
are presumed to have been instituted
simultaneously and not successively
[Art. 849, Civil Code]
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f. Declaration of Heirship, as decided in
Treyes v. Larlar, G.R. No. 232579 (2020)
The rule which requires a prior determination
of heirship in a separate special proceeding
as a prerequisite before one can file an
ordinary civil action to enforce ownership
rights acquired by virtue of succession, is
abandoned.
Henceforth, the rule is: unless there is a
pending special proceeding for the settlement
of the decedent’s estate or for the
determination of heirship, the compulsory or
intestate heirs may commence an ordinary
civil action to declare the nullity of a deed or
instrument, and for recovery of property, or
any other action in the enforcement of their
ownership rights acquired by virtue of
succession, without the necessity of a prior
and separate judicial declaration of their
status as such.
The ruling of the trial court shall only be in
relation to the cause of action of the ordinary
civil action, i.e., the nullification of a deed or
instrument, and recovery or reconveyance of
property, which ruling is binding only between
and among the parties.
3. Substitution of Heirs
Substitution - the appointment of another
heir, so that he may enter into the inheritance
in default of the heir originally instituted [Art.
857, Civil Code].
The substitute shall be subject to the same
charges and conditions imposed upon the
instituted heir, unless the testator has
expressly provided the contrary, or the
charges or conditions are personally
applicable only to the heir instituted [Art. 862,
Civil Code].
a. Causes of Substitution
The testator may designate a substitute for
any of the following causes:
1. If the heir predeceases the testator;
2. If the heir renounces or repudiates the
inheritance; or
024543CIV
3. If the heir becomes incapacitated to
accept the inheritance [Art. 859, Civil
Code]
b. Kinds of Substitution:
1. Brief or Compendious [Art. 860, Civil
Code]
Brief – Two (2) or more persons were
designated by the testator to substitute for
only one (1) heir.
Compendious – One (1) person is
designated to take the place of two (2) or
more heirs.
2. Reciprocal [Art. 861, Civil Code]
If the heirs instituted in unequal shares should
be reciprocally substituted, the substitute shall
acquire the share of the heir who dies,
renounces, or is incapacitated, unless it
clearly appears that the intention of the
testator was otherwise. If there is more than
one (1) substitute, they shall have the same
share in the substitution as the institution.
Example (only 1 substitute): If two (2) heirs
are reciprocally substituted, then if one (1) of
them dies before the testator dies, renounces,
or turns out to be incapacitated, the other will
get his share, regardless of whether or not
their shares are equal.
Example (more than 1 substitute): A is
instituted to 1/3, B to 1/6, and C to ½. If C dies
before the testator, renounces or turns out to
be incapacitated, then the other two will get
his shares in the same proportion as in the
institution. A will get twice as much as B
(because his share of 1/3 in the institution is
twice the size of B’s share of 1/6).
3. Simple Substitution [Art. 859, Civil
Code]
The testator may designate one (1) or more
persons to substitute the heir/s instituted in
case the heirs should:
. die before him;
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should not wish to accept the inheritance
(repudiation); or
should be incapacitated to accept the
inheritance.
4.
Fideicommissary
Substitution
(Compared With Testamentary Trusts)
Situation 2: The testator dies first followed by
the second heir. The first heir survived them
but subsequently died, who will inherit? The
second heir and his heirs under Art. 866, Civil
Code. This is because the second heir passes
his rights to his own heirs when he dies before
the first heir.
The testator institutes an heir with an
obligation to preserve and to deliver to
another the property so inherited. The heir
instituted to such a condition is called the First
Heir or the Fiduciary Heir; the one to receive
the property is the Second Heir or the
Fideicommissary [Art. 863, Civil Code].
Situation 3: If the first heir dies, followed by
the testator, then the second heir, who will
inherit? No specific provision in law, but the
second heir inherits because the testator
intended him to inherit.
Requisites [Arts. 863-865, Civil Code]:
1. A Fiduciary or first heir instituted is
entrusted with the obligation to preserve
and to transmit to a Fideicommissary
Substitute or second heir the whole or part
of the inheritance.
2. The substitution must not go beyond one
(1) degree from the heir originally
instituted.
3. The
Fiduciary
Heir
and
the
Fideicommissary are living at the time of
the death of the testator.
4. The fideicommissary substitution must be
expressly made.
5. The fideicommissary substitution is
imposed on the free portion of the estate
and never on the legitime
It 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,
Civil Code].
In the absence of an obligation on the part of
the first heir to preserve the property for the
second heir, there is no fideicommissary
substitution [PCIB v. Escolin, G.R. Nos. L27860 and L-27896 (1974)].
Effects of predecease of the first heir/
fiduciary
or
the
second
heir/
fideicommissary:
Situation 1: If the heir dies followed by the
second heir, then the testator dies, who will
inherit? The legal heirs. There is no
fideicommissary substitution because first and
second heirs are not living at the time of the
testator’s death [Art. 863, Civil Code].
024544CIV
L. Legitime
Every renunciation or compromise as regards
a future legitime between the person owing it
and his compulsory heirs is void, and the latter
may claim the same upon the death of the
former; but they must bring to collation
whatever they may have received by virtue of
the renunciation or compromise [Art. 905, Civil
Code].
1. Specific Rules on Legitime:
a. Direct Descending Line
1. Rule of Preference between lines [Arts.
978 and 985, Civil Code]
● Those in the direct descending line
shall exclude those in the direct
ascending and collateral lines; and
● Those in the direct ascending line
shall, in turn, exclude those in the
collateral line.
● Rule of Proximity [Art. 962, Civil
Code]: The relative nearest in degree
excludes the farther one.
2. Right of representation ad infinitum in
case of predecease, incapacity, or
disinheritance [Arts. 972 and 992, Civil
Code]
● For decedents who are Legitimate
Children,
only
the
Legitimate
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Descendants are entitled to right of
representation.
● For decedents who are Illegitimate
Children, both the Legitimate and the
Illegitimate
Descendants
can
represent, only with respect to the
decedent’s illegitimate parents.
3. If all the Legitimate Children repudiate
their legitime, the next generation of
Legitimate Descendants may succeed in
their own right.
b. Direct Ascending Line
1. Rule of division between lines
● The father and the mother shall inherit
equally if both are living. One parent
succeeds to the entire estate of the
child if the other parent is dead [Art.
986, Civil Code].
● In default of the mother and the father,
the ascendants nearest in degree will
inherit [Art. 987, Civil Code].
● If there is more than one relative of the
same degree but of different lines, one
half will go to the paternal ascendants
and the other half to the maternal
ascendants [Art. 987, Civil Code].
2. Rule of equal division
● The relatives who are in the same
degree shall inherit in equal shares
[Art. 987, Civil Code].
Steps in Determining the Legitime of
Compulsory Heirs [Arts. 908-910, Civil
Code]
Value of the Estate
— Taxes
— Less Liabilities
NET ESTATE
+ collationable donations
THEORETICAL* HEREDITARY ESTATE
*Because this amount is what the legitime will
be based on, but the actual amount available
for physical distribution is the net estate.
2. Collation in Connection With the
Computation of Legitime
Concept of Collation
To collate is to bring back or to return to the
hereditary mass in fact or by fiction, property
which came from the estate of the decedent
during his lifetime, by donation or other
gratuitous title but which the law considers as
an advance from the inheritance [Art. 1061,
Civil Code].
It is the act by virtue of which, the compulsory
heir who concurs with other compulsory heirs
in the inheritance brings back to the common
hereditary mass the property which they may
have received from the testator so that a
division may be effected according to law and
the will of the testator.
In reducing inofficious donations, the last to be
donated should be the first to be reduced.
Rationale for collation: If donations inter vivos
will not be collated, then the rule on legitimes
shall be circumvented or disregarded.
Collation is used in the Civil Code in
three (3) senses:
1. Addition – adding to the mass of the
hereditary estate the value of the donation
or gratuitous disposition.
2. Imputation – crediting the donation as an
advance on the legitime (if the donee is a
compulsory heir) or on the free portion (if
the donee is a stranger, i.e., not a
compulsory heir).
3. Reduction – determining to what extent
the donation will remain and to what
extent it is excessive or inofficious.
1. Restitution – returning or the act of
payment of the excess to the mass of
hereditary estate.
Persons Obliged to Collate
General rule: Compulsory heirs
Exceptions:
1. When the testator should have so
expressly provided [Art. 1062, Civil Code]
– in which case you collate against the
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disposable free portion because there
MUST be collation.
2. When the compulsory heir should have
repudiated his inheritance [Art. 1062, Civil
Code]
3. When there is only ONE (1) compulsory
heir
4. Grandchildren who survive with their
uncles, aunts, or first cousins and inherit
by right of representation [Art. 1064, Civil
Code]
Note: Grandchildren may inherit from their
grandparents in their own right, i.e., as
heirs next in degree, and not by right of
representation if their parent repudiates
the inheritance of the grandparent, as no
living person can be represented except in
cases of disinheritance and incapacity. In
this case, the grandchildren are not
obliged to bring to collation what their
parents have received gratuitously from
their grandparent.
What to Collate
1. Any property or right received by
gratuitous title during the testator’s lifetime
[Art. 1061, Civil Code]
2. All that they may have received from the
decedent during his lifetime [Art. 1061,
Civil Code]
3. Expenses incurred by the parents in giving
their children a professional, vocational or
other career shall not be brought to
collation unless the parents so provide, or
unless they impair the legitime; but when
their collation is required, the sum which
the child would have spent if he had lived
in the house and company of his parents
shall be deducted therefrom [Art. 1068,
Civil Code]
4. Any sums paid by a parent in satisfaction
of the debts of his children, election
expenses, fines, and similar expenses
shall be brought to collation [Art. 1069,
CC]
Note: Only the value of the thing donated shall
be brought to collation.
024546CIV
Properties not subject to collation
Absolutely no collation:
Expenses for support, education (only
elementary
and
secondary),
medical
attendance, even in extraordinary illness,
apprenticeship, ordinary equipment, or
customary gifts [Art. 1067, Civil Code]
Generally not imputable to legitime/
cannot
be
collated,
subject
to
exceptions:
1. Expenses incurred by parents in giving
their children professional, vocational or
other career unless the parents so
provide, or unless they impair the legitime
[Art. 1067, Civil Code]
2. Wedding gifts by parents and ascendants,
consisting of jewelry, clothing and outfit,
except when they exceed 1/10 of the sum
disposable by will [Art. 1070, Civil Code]
3. Neither shall donations to the spouse of
the child be brought to collation; but if they
have been given by the parent to the
spouses jointly, the child shall be obliged
to bring to collation one-half of the thing
donated [Art. 1066, Civil Code]
Note: Parents are not obliged to bring to
collation in the inheritance of their ascendants
any property which may have been donated
by the latter to their children [Art. 1065, Civil
Code].
Wedding Gifts
The wedding gift under Art. 1070 of the Civil
Code may be compared to a donation propter
nuptias as follows:
Donation Propter
Nuptias
Wedding Gift
The object is not The
object
is
specified. It could be jewelry, clothing or
anything of value.
outfit.
The donor is not The donor must be a
specified. He or she parent or ascendant
could be anyone of the donee.
with the capacity to
dispose of property.
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Donation Propter
Nuptias
Wedding Gift
Donation Propter
Nuptias
Wedding Gift
If given by a parent,
the donee is either
the child of the
donor, or the future
spouse of the child
of the donor, or both
of them jointly.
The donee is either
a
child
or
a
descendant of the
donor.
donations, except as
modified
by
the
provisions of the
Family Code. Thus,
a donation propter
nuptias given by a
parent to a child is
collationable in full,
except if the donor
declared it to be
non-collationable.
(1/10)
of
the
disposable
free
portion
of
the
hereditary estate of
the donor.
The gift must be The gift may be
given before the given at any time,
celebration of the either before or after
marriage.
the celebration of
the marriage.
The
donation
is The gift is nongoverned by the collationable to the
rules of ordinary extent of one-tenth
3. Table of Legitime
Legend:
LC – legitimate children
LP – legitimate parents
Surviving
Relatives
LC and
Descendants
LC – illegitimate children
ILP – illegitimate parents
SS
LC alone
½ of the estate,
in equal portions
1LC, SS
½ of the estate
¼ of the estate,
taken from the
free portion
2 or more
LC, SS
½ of the estate,
in equal portions
Same portion as
1 LC
LC, ILC
½ of the estate,
in equal portions
1 LC, SS,
ILC
½ of the estate,
in equal portions
2 or more
LC, SS, ILC
LP alone
024547CIV
½ of the estate,
in equal portions
ILC
SS – surviving spouse
LP and
Ascendants
½ share of 1 LC
¼ of the estate
(preferred over
ILC)
Same portion as
1 LC
½ share of 1 LC
N.B. May suffer
reduction pro
rata, because
share of SS is
given preference
½ share of 1 LC
½ of the estate,
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LC and
Descendants
SS
ILC
LP and
Ascendants
ILP
in equal portions
LP, ILC
¼ of the estate,
in equal portions
LP, SS
¼ of the estate
LP, SS, ILC
⅛ of the estate
½ of the estate,
in equal portions
½ of the estate,
in equal portions
¼ of the estate,
in equal portions
ILC alone
½ of the estate,
in equal portions
½ of the estate
⅓ of the estate
ILC, SS
SS alone
⅓ of the estate,
in equal portions
GR: ½ of the
estate
Exception:
Marriage in
articulo mortis,
and the testator
dies within 3
months from
marriage – ⅓
Exception to the
exception:
Have been living
as husband and
wife for more
than 5 years – ½
of the estate
ILP alone
½ of the estate
ILP, SS
¼ of the estate
COMBINATION
Legitimate
child/
descendants
children
or
One (1) legitimate child/ descendant
and surviving spouse
More than one (1) legitimate child/
descendant and surviving spouse
Legitimate
child/
children
or
descendants and illegitimate child/
children
One (1) legitimate child/ descendant,
illegitimate child, surviving spouse
024548CIV
¼ of the estate
HEIRS
LEGITIME/ SHARE IN THE ESTATE
Whether they survive alone or
with concurring compulsory
heirs
Legitimate child/ descendant
½
Surviving spouse
Legitimate
descendants
Surviving spouse
children/
½
¼
½, in equal proportions
Legitimate child/ descendant
Illegitimate child
Share equal to that of each child/
descendant
½
1 IC = ½ LC
Legitimate child/ descendant
Illegitimate child
Surviving spouse
½
1 IC = ½ LC
¼
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COMBINATION
HEIRS
Legitimate children/ descendants,
illegitimate child, surviving spouse
Legitimate parent/s or ascendants
Legitimate parent/s or ascendants,
legitimate child/ children
Legitimate parent/s or ascendants,
illegitimate child/ children
Legitimate parent/s or ascendants,
surviving spouse
Illegitimate child/ children
Illegitimate child/ children, surviving
spouse
Surviving spouse
Legitimate
parents/
ascendants,
surviving spouse, illegitimate children
Illegitimate parents
Illegitimate parents, child/ children of
any class
Illegitimate parents, surviving spouse
Legitimate
descendants
Illegitimate child
Surviving spouse
children/
Legitimate
parents/
ascendants
Legitimate
parents/
ascendants
Legitimate children
Legitimate
parents/
ascendants
Illegitimate child/ children
Legitimate
parents/
ascendants
Surviving spouse
Illegitimate child
Illegitimate children
Illegitimate child/ children
Surviving spouse
Surviving spouse
Marriage in articulo mortis, and
deceased dies within 3 months
after marriage
Legitimate
parents/
ascendants
Illegitimate children
Surviving spouse
Illegitimate parents
Illegitimate parents
Child/ children
Illegitimate parents
Surviving spouse
4. Impairment of the legitime
a. Remedy of a Compulsory Heir in
Case of Impairment of Legitime
Extent and
Nature of
Impairment
Remedy
Total omission of
a
compulsory heir
who is a direct
descendant or
ascendant
(preterition)
Annulment of institution
and reduction of
legacies and devises
insofar as they may be
inofficious [Art. 854,
Civil Code]
Testamentary
dispositions
Reduction of the
disposition insofar as
024549CIV
LEGITIME/ SHARE IN THE ESTATE
½
½ LC
Share equal to that of each legitimate
child/ descendant
½
Extent and
Nature of
Impairment
impairing or
diminishing the
legitime
None
½
½
½, in equal shares
½
¼
½
½, in equal shares
1/3
1/3
½
1/3
½
¼
1/8
½
None
½
¼
¼
Remedy
they may be inofficious
or excessive [Art. 907,
Civil Code]
Partial impairment Completion of the
legitime [Art. 906, Civil
Code]
Impairment by
inofficious
donations
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Collation – reduction of
donations [Arts. 771
and 911, Civil Code]
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b. Method of Reduction [Art. 911, Civil
Code]
Order of priorities to be observed in the
reduction [Balane]:
1. Reduce pro rata the non-preferred
legacies
and
devises,
and
the
testamentary dispositions to heirs
2. Reduce pro rata the preferred legacies
and devises
3. Reduce the donations inter vivos
according to the inverse order of their
dates (oldest is the most preferred)
Note: Rule on Reduction of Legitimes
(Shares)
Legitimate
children
Never reduced, they are
primary and preferred
Surviving
spouse
Never reduced
Illegitimate
children
Subject to reduction, pro
rata, without preference (you
get the remaining portion,
divide it by the number of
illegitimate children)
c. How are Devises and Legacies with
usufructs, life annuities and pensions
reduced?
5. Presumptive Legitime
If the value of these grants exceeds the free
portion, it impairs the legitimes, and should be
reduced.
Presumptive legitime is an advance of the
legitime of children whose parents’ marriage
have been:
1. Declared as void ab initio; or
2. Annulled.
The compulsory heir has two (2) options:
1. Delivering to the devisee or legatee the
free portion
2. Complying with the testamentary provision
Note: If the devise subject to reduction should
consist of real property, which cannot be
conveniently divided, it shall go to the devisee
if the reduction does not absorb ½ of its value;
and in a contrary case, to the compulsory
heirs; but the former and the latter shall
reimburse each other in cash for what
respectively belongs to them [Art. 912, Civil
Code].
The devisee who is entitled to a legitime may
retain the entire property, provided its value
does not exceed that of the disposable portion
and of the share pertaining to him as a
legitime [Art. 912, Civil Code].
If the heirs or devisees do not choose to avail
themselves of the right granted by the
foregoing, any heir or devisee who did not
have such right may exercise it; should the
latter not make use of it, the property shall be
sold at public auction at the instance of any
one of the interested parties [Art. 913, Civil
Code].
024550CIV
Presumptive legitimes shall be computed as
of the date of the final judgment. [Art. 51,
Family Code]
Art. 50 of the Family Code also requires the
final judgment annulling a marriage, or
declaring it void ab initio, shall provide for,
among other things, the delivery of the
presumptive legitimes of the children, unless
the matter had been adjudicated in a previous
judicial proceeding.
Form of presumptive legitimes
General Rule: Presumptive legitimes shall be
delivered in either:
1. Cash;
2. Property; or
3. Sound securities. [Art. 51, Family Code]
Exception: Presumptive legitimes shall be
delivered in the form mutually agreed upon by
the parties, which must be judiciary approved.
[Art. 51, Family Code]
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M. Preterition
5. No Preterition
1. Concept [Art. 854, Civil Code]
If the heir in question is instituted in the will
but the portion given to him by the will is less
than his legitime – there is no preterition
[Reyes v. Barretto-Datu, G.R. No. L-17818
(1967)].
Preterition is the omission of one, some, or all
of the compulsory heirs in the direct line,
whether living at the time of the execution of
the will or born after the death of the testator.
Preterition consists in the omission in the
testator’s will of the forced heirs or anyone of
them either because they are not mentioned
therein, or, though mentioned, they are neither
instituted as heirs nor are expressly
disinherited [Nuguid v. Nuguid, 17 SCRA 450
(1966); Maninang v. CA, 114 SCRA 478
(1982)]
2. Requisites
1. There must be a total omission of one (1),
some or all of the heir/s from the
inheritance [Seangio v. Reyes, G.R. Nos.
140371-72 (2006)].
2. The omission must be that of a
compulsory heir.
3. The compulsory heir omitted must be of
the direct line.
4. The omitted compulsory heir must be
living at the time of the testator’s death or
must at least have been conceived before
the testator’s death.
3. Governing Law
A case of preterition is governed by Art. 854 of
the Civil Code.
4. Omission of Heir from Inheritance
Not Named
If the heir is given a legacy or devise – there is
no preterition [Aznar v. Duncan, G.R. No. L24365 (1966)].
If the heir had received a donation inter vivos
from the testator – the better view is that there
is no preterition. The donation inter vivos is
treated as an advance on the legitime
under Arts. 906, 909, 910 and 1062.
The remedy, if the value of inheritance, legacy
or devise, or donation inter vivos is only for
completion of his legitime under Arts. 906 and
907
6. Distinguished from Disinheritance
Preterition
Tacit deprivation of a Express deprivation of
compulsory heir of a compulsory heir of
his legitime
his legitime
May be voluntary but Always voluntary; For
the presumption of some legal cause
law is that it is
involuntary
Law presumes there
has been merely
oversight or mistake
on the part of the
testator
If the disinheritance is
valid, the compulsory
heir disinherited is
totally excluded from
the inheritance
Since
preterition
annuls the institution
of heirs, the omitted
heir gets not only his
legitime but also his
share in the free
portion not disposed
of by way of legacies
and devises
In case of invalid
disinheritance,
the
compulsory heir is
merely restored to his
legitime
Although Named
He
is
not He is:
named in the 1. Expressly
inherited
will.
without valid cause;
2. Not instituted as an
heir;
3. Not assigned any part
of the estate
Thus, the heir is deprived of his right to
legitime.
024551CIV
Disinheritance
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N. Conditional Dispositions
1. Condition Not to Marry
Art. 874 of the Civil Code provides that the
following conditions relating to marriage are
prohibited:
1. Absolute condition not to contract a first
marriage; and
2. Absolute condition not to contract a
subsequent marriage, generally
Exception: Valid if imposed on the widow or
widower by the deceased spouse, or by the
latter’s ascendants or descendants
2. Disposicion Captatoria
Disposicion captatoria are legacy-hunting
provisions, or those 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, Civil Code].
Also called scriptura captatoria.
3. Modal Institution
Dispositions with an obligation imposed upon
the heir, without suspending the effectiveness
of the institution, as a condition does.
A mode functions similarly to a resolutory
condition.
In modal institutions, the testator states:
● the object of the institution;
● the purpose or application of the property
left by the testator; or
● the charge imposed by the testator upon
the heir [Rabadilla v. CA, G.R. No. 113725
(2000)].
O.
Void
Dispositions
Testamentary
Void testamentary dispositions by
reason of public policy [Art. 739 and Art.
1028, Civil Code]:
1. Those made in favor of a person with
whom the testator was guilty of adultery or
024552CIV
concubinage at the time of the making of
the will;
2. Those made in consideration of a crime of
which both the testator and the beneficiary
have been found guilty; and
3. Those made in favor of a public officer or
his spouse, descendants and ascendants,
by reason of his public office.
Void testamentary dispositions as
provided by law:
1. The dispositions of the testator declaring
all or part of the estate inalienable for
more than twenty (20) years [Art. 870,
Civil Code];
2. 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, Civil Code]
3. Testamentary dispositions that impair or
diminish the legitime of the compulsory
heirs, insofar as they are inofficious or
excessive [Art. 907, Civil Code]
4. The legacy or devise of a thing belonging
to another person, if the testator
erroneously believed that the thing
pertained to him [Art. 930, Civil Code]
5. A devise of indeterminate real property, if
there is no immovable property of its kind
in the estate [Art. 941, Civil Code]
P. Disinheritance
A compulsory heir may, in consequence of
disinheritance, be deprived of his legitime, for
causes expressly stated by law [Art. 915, Civil
Code].
Requisites for a valid disinheritance:
1. Heir disinherited must be designated by
name or in such a manner as to leave no
room for doubt as to who is intended to be
disinherited;
2. It must be for a cause designated by law;
3. It must be made in a valid will;
4. It must be made expressly, stating the
cause in the will itself;
5. The cause must be certain and true and
must be proved by the interested heir if
the disinherited heir should deny it;
6. It must be unconditional; and
7. It must be total.
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Note: The burden of proving the truth of the
cause for disinheritance shall rest upon the
other heirs of the testator, if the disinherited
heir should deny it [Art. 917, Civil Code].
1. Effect of Disinheritance
A disinherited heir is totally excluded from the
inheritance. This means that he forfeits not
only his legitime, but also his intestate portion
(if any), and any testamentary disposition
made in a prior will of the disinheriting testator
[Balane].
Rights of Descendants of Person
Disinherited [Art. 923, Civil Code]:
Disinheritance gives rise to the right of
representation in favor of the children and
descendants of the disinherited person with
respect to his legitime.
2. Grounds for Disinheritance
a. Causes Common to Disinheritance
and Unworthiness
Art. 1032 enumerates five (5) acts of
unworthiness which likewise constitute
grounds to disinherit a compulsory heir.
The effect of the concurring causes of
unworthiness and grounds for disinheritance
is as follows: If the testator failed to disinherit
the offender, the law nonetheless intervenes
by excluding the offender from the inheritance
of the testator or the decedent by reason of
unworthiness.
How do you reconcile unworthiness and
disinheritance as regards restoration to
capacity?
Under the rules
on Disinheritance
Under the rules on
Unworthiness
Note: This is
expressly made
by the testator.
Note: This is by
operation of law.
A subsequent
conciliation is
024553CIV
Requires subsequent
conciliation, and
Under the rules
on Disinheritance
Under the rules on
Unworthiness
Note: This is
expressly made
by the testator.
Note: This is by
operation of law.
enough to restore
the capacity of the
heir to inherit.
either:
● Written pardon; or
● A Subsequent
will.
Overlap of rules:
Remedy
1. If the offended party does not make a
will subsequent to the occurrence of the
cause:
● Unworthiness sets in
● Written condonation is necessary to
restore capacity to inherit.
2. If the offended party makes a will
subsequent to the occurrence of the
cause:
. If he knew the cause and
● he disinherits – Art. 922
● he institutes or pardons the
offender – restored to capacity
● the will is silent – unworthiness
stays.
a. If he did not know the cause –
unworthiness stays.
b. Ineffective disinheritance [Art. 918,
Civil Code]
Disinheritance is ineffective if:
1. If the cause is not specified; or
2. The truth of the cause so specified is
contradicted, and was not proved; or
3. The cause so specified is not among
those provided under Arts. 919 to 921,
whichever is applicable.
Effects of ineffective disinheritance:
1. The heir intended to be disinherited
retains his right to the legitime.
2. The institution of heirs, insofar as it may
prejudice the heir intended to be
disinherited, shall be annulled.
3. Devises, legacies, and other testamentary
dispositions shall be valid to such extent
as will not impair the legitime. [Art. 918,
Civil Code]
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3. Requisites for the Various Grounds for Disinheritance
Grounds for Disinheritance
The heir has been found guilty of an attempt
against the life of the testator, his or her
spouse, descendants, or ascendants.
● Applies to children or descendants,
parents or ascendants, and spouse
[Arts. 919 to 921, Civil Code]
Requisites
1. The felony must be intentional.
2. Final conviction is required.
Groundless accusation against the testator of 1. The testator was accused by the heir, either
a crime for which the law prescribes
through the filing of a complaint in court, or by
imprisonment for 6 years or more
presenting incriminating evidence against the
● Applies to children or descendants,
testator.
parents or ascendants, and spouse [Arts. 2. The crime of which the testator is accused
919 to 921, Civil Code]
carries a penalty of at least 6 years
imprisonment.
3. The testator must be acquitted.
4. The accusation must be found to be
groundless.
When the heir has been convicted of adultery 1. Final conviction of adultery or concubinage is
or concubinage with the spouse of the testator
required.
● Applies only to children or descendants,
and parents or ascendants [Arts. 919-920,
Civil Code]
The heir vitiates the consent of the testator to 1. The heir employs fraud, violence, intimidation,
make a will, or change one already made.
or undue influence against the testator.
● Applies to children or descendants, 2. As a result, the testator either makes a will, or
parents or ascendants, and spouse
changes one already made.
[Arts. 919 to 921, Civil Code]
A refusal without justifiable cause to support 1. There must have been a need or demand for
the disinheriting testator
support.
● Applies to children or descendants, 2. The demand must have been unjustifiably
parents or ascendants, and spouse [Arts.
refused.
919 to 921, Civil Code]
Maltreatment of the testator by word or deed, 1. The act of verbal or physical assault must be of
by the child or descendant
a serious nature.
● Applies only to descendants or children 2. A case is not required to have been filed
[Art. 919, Civil Code]
against the child or descendant.
When a child or descendant leads a 1. There must be habituality to dishonorable or
dishonorable or disgraceful life
disgraceful conduct.
● Applies only to descendants or children 2. The disgraceful or dishonorable conduct need
[Art. 919, Civil Code]
not be sexual in nature.
Conviction of a crime which carries with it the 1. Final conviction is required.
penalty of civil interdiction.
2. The accessory penalty of civil interdiction is
● Applies only to descendants or children
imposed with the principal penalties of death,
024554CIV
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Grounds for Disinheritance
Requisites
[Art. 919, Civil Code]
reclusion perpetua, and reclusion temporal.
Abandonment of children, or inducing their Three (3) grounds for disinheritance here:
daughters to live a corrupt or immoral life, or 1. Abandonment of children – includes all conduct
attempting against their virtue
constituting a repeated and total refusal or
● Applies only to parents or ascendants [Art.
failure to care for the child.
920, Civil Code]
2. Inducement to live a corrupt or immoral life
3. Attempt against the virtue – conviction is not
required.
The loss of parental authority for causes The loss of parental authority must have been by
specified in the Family Code
reason of the parent’s culpability, as in the
● Applies only to parents or ascendants [Art. following instances:
920, Civil Code]
1. Judicial deprivation of parental authority on the
ground of sexual abuse [Art. 232, Family Code]
2. Loss of parental authority as a result of judicial
declaration of abandonment of the child [Art.
229(3), Family Code]
3. Judicial deprivation of parental authority on the
grounds of:
• Excessive, harsh, or cruel treatment of a
child;
• Giving the child corrupting orders, counsel,
or example;
• Compelling the child to beg; or
• Subjecting the child or allowing him to be
subjected to acts of lasciviousness [Art.
231, Family Code]
An attempt by one of the parents against the 1. No conviction is required.
life of the other, unless there has been a 2. Reconciliation between the parents removes
reconciliation between them.
the right of the child to disinherit, and rescinds
● Applies only to parents or ascendants [Art.
a disinheritance already made.
920, Civil Code]
When the spouse has given cause for legal 1. A decree of legal separation is not required.
separation
2. The causes for legal separation are those
● Applies only to the surviving spouse [Art.
enumerated in Art. 55 of the Family Code.
921, Civil Code]
When the spouse has given grounds for the
loss of parental authority
● Applies only to the surviving spouse [Art.
921, Civil Code]
Actual loss of parental authority is not required.
Giving grounds therefore suffices.
of
3. Nullity of the will which contains the
disinheritance.
1. Reconciliation [Art. 922, Civil Code]
2. Subsequent institution of the disinherited
heir
Note: The moment that testator uses one of
the acts of unworthiness as a cause for
disinheritance, the rules on disinheritance
4.
Modes
of
Disinheritance:
024555CIV
Revocation
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shall apply. Thus, reconciliation renders the
disinheritance ineffective.
5. Reconciliation
Code]
[Art.
922,
Civil
a. Effects of reconciliation
1. If no disinheritance has been made yet,
the offended person will be deprived of his
right to disinherit.
2. If disinheritance has been effected, it will
be rendered ineffectual.
Q. Legacies and Devises
Legacy
Devise
A gift of personal A
gift
of
real
property given in a property given in a
will
will
It is bequeathed.
It is devised.
1. Requisites for Validity
a. Persons Charged with the Duty to
Give Legacies and Devises in a Will
1. Compulsory
heir,
provided,
their
legitimes are not impaired [Art. 925, Civil
Code]
2. Voluntary heir
3. Legatee or devisee can be charged with
the duty of giving a sub-legacy or subdevise but only to the extent of the value
of the legacy or devise given him [Art.
925, Civil Code]
4. The estate represented by the executor
or administrator, if no one is charged
with this duty to pay or deliver the legacy
or devise in the will
If there is an administration proceeding, it
constitutes a charge upon the estate. If there
is no administration proceeding, it is a charge
upon the heirs.
024556CIV
2. Validity and Effect of Legacy or
Devise
Legacy or Devise of a thing owned in part
by the testator [Art. 929, Civil Code]
General Rule: The legacy or devise shall be
understood to be limited to such part or
interest.
Exception
If the testator expressly declares that he gives
the thing in its entirety.
In such a case, the declaration shall be taken
as an implicit order from the estator to the
executor or administrator of the estate to
acquire full ownership of the thing.
Legacy or Devise of a thing belonging to
another [Art. 930, Civil Code]
Testator erroneously Void
believed that the
property belonged to
him
The
thing Effective
bequeathed
afterwards becomes
his by whatever title
Testator
knew Valid – estate must try
property
did
not to acquire property or
belong to him
else give the heir the
monetary value.
Legacy or Devise of a thing belonging to
the legatee or devisee
The
thing
already Ineffective
belongs to the legatee
or devisee at the time
of the execution of the
will [Art. 932, Civil
Code]
The thing is subject to Valid only as to the
an encumbrance or interest
or
interest of another encumbrance
person [Art. 932, Civil
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Legacy or Devise of a thing belonging to
the legatee or devisee
from the testator to acquire the thing in
its entirety. [Art. 929, Civil Code]
Code]
5. Ineffective Legacies/Devises
Legatee or devisee
Ineffective
subsequently alienates
the thing [Art. 933,
Civil Code]
The following legacies or devises are
ineffective:
1. The thing already belongs to the legatee
or devisee at the time of the execution of
the will [Art. 932, Civil Code]
2. The legatee or devisee subsequently
alienates the thing [Art. 933, Civil Code]
3. After alienating the thing, the legatee or
devisee subsequently reacquires it
gratuitously [Art. 933, Civil Code]
After alienating the Ineffective
thing, the legatee or
devisee subsequently
reacquires
it
gratuitously [Art. 933,
Civil Code]
After alienating the
thing, the legatee or
devisee acquires it by
onerous title [Art. 933,
Civil Code]
Legatee or devisee
can
demand
reimbursement from
the heir or estate
3. Delivery of Legacy/Devise [Art.
951, Civil Code]
The very thing bequeathed shall be delivered
and not its value:
1. With all its accessions and accessories
2. In the condition in which it may be upon
the death of the testator
3. Legacies of money must be paid in cash
[Art. 952, Civil Code].
4. Property
Testator
Not
Owned
by
the
1. Property not owned by the testator –
the legacy or devise may be valid if:
a. At the time of the execution of the will,
the testator knew that the thing was
not his; or
b. If he subsequently acquires the same
during his life, by whatever title [Art.
930, Civil Code]
2. Property partly owned by the testator:
a. General Rule: The legacy or devise is
valid only as to the portion owned by
the testator.
b. Exception: If the testator bequeaths
or devises the thing in its entirety, it
shall be taken as an implied order
024557CIV
a. Effect of Ineffective Legacies or
Devises [Art. 956, Civil Code]
In case of repudiation, revocation or
incapacity of the legatee or devisee, the
legacy or devise shall be merged with the
mass of the hereditary estate, except in cases
of substitution or accretion.
6. Revocation of Legacies
Devises [Art. 957, Civil Code]
and
1. Testator transforms the thing such that it
does not retain its original form or
denomination.
2. Testator alienates the thing by any title or
for any cause. Reacquisition of the thing
by the testator does not make the legacy
or devise valid, unless it is effected by the
right of repurchase.
3. The thing is totally lost during the lifetime
or after the death of the testator.
4. Other causes: nullity of will, noncompliance with a suspensive condition,
sale of the thing to pay the debts of the
deceased during the settlement of his
estate.
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III. Legal and Intestate
Succession
A.
General
Provisions;
Relationship and Right of
Representation
Intestacy – that which takes place by
operation of law in default of compulsory and
testamentary succession. Not defined in the
Civil Code.
CIVIL LAW
2. Direct line is preferred over collateral line.
Blood relationship is either full or half-blood
[Art. 967, Civil Code].
Note: As among brothers and sisters and
nephews and nieces, there is a 2:1 ratio for
full- blood and half-blood relatives. This
distinction does not apply with respect to other
collateral relatives.
3. Incapacity [Art. 968, Civil Code]
Legal succession is a mode of transmission
mortis causa which takes place in the
absence of the expressed will of the decedent
embodied in a testament [Tolentino].
General Rule: If there are several relatives of
the same degree, and one or some of them
are unwilling or incapacitated to succeed, his
portion shall accrue to the others of the same
degree.
1. Fundamental Principles in Intestate
Succession
Exception: When the right of representation
should take place.
Rule of Preference Between Lines:
● Those in the direct descending line shall
exclude those in the direct ascending and
collateral lines;
● Those in the direct ascending line shall, in
turn, exclude those in the collateral line.
Note: This accretion in intestacy takes place in
case of predecease, incapacity, or repudiation
among heirs of the same degree. The
relatives must be in the same relationship
because of the Rule of Preference Between
Lines.
Rule of proximity of degree:
● The nearer excludes the more remote,
without prejudice to the right of
representation.
4. Repudiation [Arts. 968-969, Civil
Code]
Rule of Equality among Relatives of the
Same Degree:
● Those of equal degree inherit in equal
shares.
2. Relationship
Proximity of Relationship: Determined by
the number of generations. Each generation
forms one degree [Art. 963, Civil Code].
In a line, as many degrees are counted as
there are generations or persons, excluding
the progenitor [Art. 966, Civil Code].
There is no right of representation in
repudiation. If the nearest relative (if only one)
or all the nearest relatives (if several)
repudiates the inheritance, those of the
following degree shall inherit in their own
right.
In case of repudiation by all in the same
degree, the right of succession passes on the
heirs in succeeding degrees: descending line
first, ascending line next, and collateral line
next [Balane].
5. Adoption [Art. 189, Family Code]
In adoption, the legal filiation is personal and
exists only between the adopter and the
adopted. The adopted is deemed a legitimate
Notes:
child of the adopter, but still remains as an
1. Descending line is preferred over the
intestate heir of his natural parents and other
ascending line.
blood relatives.
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Note: Under Section 43 of the Domestic
Administrative Adoption and Alternative Child
Care Act (RA 11642), in both testate and
intestate succession, the adopters and the
adoptee shall have reciprocal rights of
succession without distinction from legitimate
filiations.
6. Right of Representation
Representation – 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. 970, Civil
Code].
Effect of Representation
The representative heir acquires the rights
which the person represented would have if
he were living or if he could have inherited.
When it occurs
Representation is allowed with respect to
inheritance conferred by law (legitime and
intestate based on Art. 923).
It occurs only in the following instances:
(DIP)
1. Predecease of an heir;
2. Incapacity or unworthiness;
3. Disinheritance [Art. 923, Civil Code].
Note: No right of representation in the case of
a voluntary heir, devisee or a legatee [ Art.
856, Civil Code].
An heir who renounces can represent, but
cannot be represented. Rationale is found in
Art. 971 which states that “The representative
does not succeed the person represented but
the one whom the person represented would
have succeeded.”
Representation in the Direct Descending
Line:
Representation takes place ad infinitum in the
direct descending line but never in the direct
ascending line [Art. 972, Civil Code].
General Rule: Grandchildren inherit from the
grandparents by right of representation, if
proper.
024559CIV
Exception: When all the children repudiate,
the grandchildren inherit in their own right
because representation is not proper [Art.
969, Civil Code].
Representation in Collateral Line:
In the collateral line, representation takes
place only in favor of the children of the
brothers or sisters (i.e., nephews and nieces)
whether of the full or half-blood [Art. 972, Civil
Code] and only if they concur with at least one
(1) brother or sister.
B. Causes of Intestacy
Instances When Legal or Intestate
Succession Operates [Art. 960, Civil
Code]:
1. If a person dies without a will, or with a
void will, or will has subsequently lost its
validity;
2. When the will does not institute an heir;
3. When the will does not dispose of all the
property belonging to the testator. Legal
succession shall take place only with
respect to the property which the testator
has not disposed (mixed succession);
4. If the suspensive condition attached to the
institution of the heir does not happen or is
not fulfilled;
5. If the heir dies before the testator;
6. If the heir repudiates the inheritance, there
being no substitution, and no right of
accretion takes place;
7. When the heir instituted is incapable of
succeeding, except in cases provided in
the Civil Code;
8. Upon the expiration of term, or period of
institution of heir [Balane];
9. Upon fulfillment of a resolutory condition
attached to the institution of heir,
rendering the will ineffective [Balane];
10. Preterition – Intestacy may be total or
partial depending on whether or not there
are legacies or devises [Balane];
11. When a testamentary disposition is
impossible of compliance or is ineffective
[Jurado].
Note: In all cases where there has been an
institution of heirs, follow the ISRAI order:
1. If the Institution fails, Substitution occurs.
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2. If there is no substitute, the right of
Representation applies in the direct
descending line to the legitime if the
vacancy is caused by predecease,
incapacity, or disinheritance.
3. The right of Accretion applies to the free
portion when the requisites in Art. 1016
are present.
4. If there is no substitute, and the right of
representation or accretion is not proper,
the rules on Intestate succession shall
apply.
C.
Order
Succession
Decedent is
a Legitimate
Child
of
Decedent is an
Illegitimate
Child
Intestate
Decedent is an
Adopted Child
Legitimate
children or
descendants
(LCD)
Legitimate
children or
descendants
(LCD)
Legitimate
children or
descendants
(LCD)
Legitimate
parents or
ascendants
(LPA)
Illegitimate
children or
descendants
(LPA)
Illegitimate
children or
descendants
(ICD)
Illegitimate
children or
descendants
(ICD)
Illegitimate
parents (IP)
Legitimate or
illegitimate
parents, or
legitimate
ascendants,
adoptive parents
Surviving
spouse (SS)
Surviving spouse
(SS)
Surviving spouse
(SS)
Brothers and
sisters/
Nephews and
nieces
(BS/NN)
Illegitimate
brothers and
sisters/nephews
and nieces
(IBS/NN)
Brothers and
sisters/nephews
and nieces
(BS/NN)
Legitimate
collateral
relatives
within the 5th
degree (C5)
State
State
024560CIV
1.
Rules
of
Exclusion
and
Concurrence in Intestate Shares
Intestate
Heirs
Excludes
Excluded
By
Concurs
With
LC + LD
Ascendants,
Collaterals
and State
No one
SS, ILC
ILC + D
ILP,
Collaterals
and State
No one
SS, LC,
LP
LP + LA
Collaterals
and State
LC
SS, ILC
ILP
Collaterals
and State
LC and ILC
SS
SS
Collaterals
other than
siblings,
nephews and
nieces, State
No one
LC, ILC,
LP, ILP,
Siblings,
Nephews,
Nieces
Siblings,
Nephews,
Nieces
All other
collaterals
and State
LC, ILC,
LP, ILP
SS
Other
collaterals
within 5th
degree
Collateral
more remote
in degree and
State
LC, ILC,
LP, ILP
and
SS
Collaterals
in the
same
degree
State
No one
Everyone
No one
Note: In partial intestacy, the testamentary
dispositions can reduce the shares of intestate
heirs, provided that their legitimes, if they are
also compulsory heirs, are not impaired. More
specifically:
1. The law of legitimes must be brought into
operation in partial intestacy.
2. If among the concurring intestate heirs
there are compulsory heirs whose legal or
State
intestate portions exceed their respective
legitimes, the amount of the testamentary
disposition must be deducted from the
disposable portion, to be borne by all the
intestate heirs in the proportions that they
are entitled to receive from such
disposable portion as intestate heir.
3. If the legal or intestate share of a
compulsory heir is equal to his legitime,
then the amount of the testamentary
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disposition must be deducted only from
the legal or intestate shares of the others.
4. If the testamentary dispositions consume
the entire disposable portion, then the
intestate heirs who are compulsory heirs
will get only their legitimes, and those who
are not compulsory heirs will get nothing
[Tolentino].
2. Outline of Intestate Shares
Legitimate
children only
●
●
Legitimate
children and
Illegitimate
children
●
●
Legitimate
children and
Surviving
spouse
Legitimate
children,
Surviving
spouse, and
Illegitimate
children
●
●
●
024561CIV
Divide the entire estate
equally
among
all
legitimate children [Art.
979, Civil Code]
Legitimate
children
include
an
adopted
child.
Divide the entire estate
such
that
each
illegitimate child gets 1⁄2
of what a legitimate child
gets [Art. 983, Civil
Code and Art. 176,
Family Code]
Ensure
that
the
legitimate children are
first satisfied.
Divide the entire estate
equally between the
legitimate children and
the surviving spouse,
the latter deemed as
one child. The same rule
holds where there is
only one child.
Divide the entire estate
such that the surviving
spouse is deemed one
legitimate child and each
illegitimate child getting
1⁄2 of what the legitimate
child gets [Art. 996, Civil
Code and Art. 176,
Family Code]
Ensure that the legitime
of the legitimate children
and the spouse are first
satisfied.
Legitimate
parents only
●
Divide the entire estate
equally [Art. 985, Civil
Code].
Legitimate
ascendants
only
(excluding
parents)
●
Divide the entire estate
equally but with the
observance of the rule of
division by line [Art. 987,
Civil Code].
Legitimate
parents and
Illegitimate
children
●
Legitimate parents get
1⁄2
of
the
estate,
illegitimate children get
the other 1⁄2 [Art. 991,
Civil Code].
Legitimate
parents and
surviving
spouse
●
Legitimate parents get
1⁄2 of the estate, the
surviving spouse gets
the other 1⁄2 [Art. 997,
Civil Code].
Legitimate
parents,
surviving
spouse and
illegitimate
children
●
Legitimate parents get
1⁄2 of the estate; the
surviving spouse and
illegitimate child get 1⁄4
each, the latter to share
among themselves if
more than one [Art.
1000, Civil Code].
Illegitimate
children only
●
Divide the entire estate
equally [Art. 988, Civil
Code].
Illegitimate
children and
surviving
spouse
●
Illegitimate children get
1⁄2 of the estate; the
surviving spouse gets
the other 1⁄2 [Art. 998,
Civil Code].
Surviving
spouse only
●
Entire estate goes to the
surviving spouse [Art.
995, Civil Code].
Surviving
spouse and
illegitimate
parents
●
Illegitimate parents get
1⁄2 and the spouse gets
the other 1⁄2 [by analogy
with Art. 997, Civil
Code].
Surviving
spouse and
legitimate
●
Surviving spouse gets
1⁄2 of the estate, while
the rest gets the other
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brothers and
sisters,
nephews
and nieces
Surviving
spouse and
illegitimate
brothers and
sisters,
nephews
and nieces
1⁄2 with the nephews
and nieces inheriting by
representation if proper
[Art. 1001, Civil Code].
●
Surviving spouse gets
1⁄2 of the estate while
the rest gets the other
1⁄2 with the nephews
and nieces inheriting by
representation, if proper;
Note that all the other
relatives
should
be
“illegitimate” because of
the iron-curtain rule [Art.
994, Civil Code].
Illegitimate
parents only
●
Entire estate goes to the
illegitimate parents [Art.
993, Civil Code].
Illegitimate
parents and
children of
any kind
(whether
legitimate or
illegitimate
child)
●
Illegitimate parents are
excluded and do not
inherit.
Legitimate
brothers and
sisters only
●
Other
collaterals
[Arts. 1009
and 1010]
2 is to 1 ratio [Art. 975
and 1008, Civil Code].
●
●
State
●
Divide the entire estate
per capita. Collateral
relatives must be within
the 5th degree of
consanguinity.
The
nearer
relative
excludes
the
more
remote relatives.
If there are no other
intestate heirs, the State
inherits the entire estate
through
escheat
proceedings [Art. 1011,
Civil Code].
D. Rule of Proximity and Rule of
Equality
Rule of Proximity [Art. 962(1), Civil
Code]:
General Rule: The relative nearest in degree
excludes the more distant ones.
Divide the entire estate
such
that
full-blood
brothers or sisters get a
share
double
the
amount of a half-blood
brother or sister [Art.
1004 and 1006, Civil
Code].
Legitimate
brothers and
sisters,
nephews
and nieces
●
Divide the entire estate
observing the 2 is to 1
ratio for full and halfblood relationships with
respect to the brothers
and sisters, with the
nephews and nieces
inheriting
by
representation, if proper
[Art. 1005 & 1008, Civil
Code].
Nephews
and nieces
●
Divide the entire estate
per capita, observing the
024562CIV
only
Exception: When the right of representation
should take place.
Rule of Equal Division [Arts. 962(2), Civil
Code]:
General Rule: The relatives who are in the
same degree shall inherit in equal shares.
Exceptions [Balane]:
1. Rule of preference between lines;
2. Distinction between legitimate and
illegitimate filiation. The ratio under the
present law is 2:1 [Art. 983, in relation to
Art. 895, Civil Code as amended by Art.
176, Family Code];
3. Rule of division by line in the ascending
line [Art. 987(2), Civil Code];
4. Distinction between full-blood and halfblood relationship among brothers and
sisters, as well as nephews and nieces
[Art. 1006 and 1008, Civil Code];
5. Right of representation.
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E. Determination of Heirs
1. Rule of Proximity: The relative nearest in
degree excludes the farther one [Art.
962(1), Civil Code], saving the right of
representation when it properly takes
place.
2. Rule of Preference between Lines
● Those in the direct descending line
shall exclude those in the direct
ascending and collateral lines;
● Those in the direct ascending line
shall, in turn, exclude those in the
collateral line.
3. Rules of Exclusion and Concurrence
● Legitimate children and descendants
exclude all ascendants but illegitimate
children and descendants only
exclude legitimate parents. Both
exclude all collaterals.
● Ascendants exclude all collaterals.
● Surviving
spouse concurs with
descendants,
ascendants
and
siblings, nephews and nieces, but
excludes all other collaterals.
● Siblings, nephews and nieces exclude
all other collaterals.
F. Successional Barrier
Rule of Barrier between the legitimate
family and the illegitimate family (the
iron-curtain rule):
The illegitimate family cannot inherit by
intestate succession from the legitimate family
and vice-versa [Art. 992, Civil Code].
Note: In Aquino v. Aquino [G.R. No. 208912
(2021)], the Supreme Court ruled that
children, regardless of their parents’ marital
status, can now inherit from their
grandparents and other direct ascendants by
right of representation. This decision was
promulgated on December 7, 2021.
G. Successional
Adopted Children
Rights
of
The adopters and the adoptee shall have
reciprocal rights of succession without
distinction from legitimate filiation [Art. 18, RA
8552].
024563CIV
An adopted child succeeds to the property of
the adopting parents in the same manner as a
legitimate child [Art. 979, Civil Code]. Also, the
adopted shall remain an intestate heir of his
natural parents and other blood relatives [Art.
189, Family Code].
H. Successional
Adopting Parents
Rights
of
The adopters and the adoptee shall have
reciprocal rights of succession without
distinction from legitimate filiation [Art. 18, RA
8552].
Notes:
1. When
the
parents,
legitimate
or
illegitimate, or the legitimate ascendants
of the adopted concur with the adopter,
the former shall inherit 1/2 and the
adopters shall inherit the other half;
2. When the surviving spouse or the
illegitimate children of the adopted concur
with the adopters, the spouse or the
illegitimate children shall inherit 1/2 and
adopters shall inherit the other half.
3. When the adopters concur with the
illegitimate children and the surviving
spouse of the adopted, they shall each
inherit 1/3;
4. When only the adopters survive, they shall
inherit the entire estate [Art. 190, Family
Code]
I. Successional Rights of Marital
and Non-Marital Children
Rules of Division:
● If all are legitimate children, they shall
inherit in their own right.
● If some are legitimate children and others
legitimate grandchildren, the former shall
inherit in their own right and the latter shall
by right of representation.
● If all are legitimate grandchildren, they
shall inherit by right of representation.
● If some are legitimate children and others
are illegitimate children, the latter shall
inherit half the share of the former. The
legitimes of legitimate children must be
satisfied first.
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J. Successional Rights of the
Surviving Spouse
The surviving spouse will always inherit,
whether alone or concurring with other heirs.
The surviving spouse is not an intestate heir
of his or her parent-in-law.
K. Successional Rights
Collateral Relatives
of
General rule: Collateral relatives are
excluded when there are legitimate and
illegitimate
descendants,
legitimate
ascendants, illegitimate parents or a surviving
spouse.
Exception: Brothers and sisters, or nephews
and nieces, inherit when they concur with the
surviving spouse only, the former inheriting ½
of the estate and the latter the other half.
Notes:
1. Only collateral relatives within the fifth
degree of consanguinity can inherit.
2. When several collateral relatives concur,
the rule of proximity is applicable.
3. As an exception to the rule of proximity,
nephews or nieces can inherit by right of
representation when they concur with
brothers or sisters.
4. Where collateral relatives of the same
degree concur, the rule of double share
for full blood collaterals is applicable. This
rule is applicable only to brothers and
sisters or nephews and nieces but not to
other collaterals.
IV. Provisions Common to
Testate and Intestate
Succession
A. Capacity to Succeed
1. Requisites for Capacity to Succeed
by Will or by Intestacy [Art. 1024 –
1025, Civil Code]
024564CIV
1. The heir, legatee or devisee must be living
or in existence at the moment the
succession opens [Art. 1025, Civil Code];
and
2. He must not be incapacitated or
disqualified by law to succeed [Art.
1024(1), Civil Code].
a. Persons Incapable of Succeeding
[Arts. 1027, 739, 1032, Civil Code]
1. Priest who heard the last confession of the
testator during his last illness, or the
minister of the gospel who extended
spiritual aid to him during the same period;
2. Relatives of the priest or minister of the
gospel within the fourth degree, the
church, order, chapter, community,
organization, or institution to which such
priest or minister may belong;
3. Guardian with respect to testamentary
dispositions given by a ward in his favor
before the final accounts of the
guardianship have been approved, even if
the testator should die after the approval
thereof; except if the guardian is his
ascendant, descendant, brother, sister, or
spouse;
4. Attesting witness to the execution of a will,
the spouse, parents, or children, or
anyone claiming under such witness,
spouse, parents, or children;
5. Physician, surgeon, nurse, health officer
or druggist who took care of the testator
during his last illness.
6. Individuals, associations and corporations
not permitted by law to inherit;
2.
Incapacity
by
Reason
of
Unworthiness
and
Effects
of
Condonation [Art. 1032, Civil Code]
The following are incapable of succeeding by
reason of unworthiness:
1. Parents who have abandoned their
children or induced their daughters to lead
a corrupt or immoral life, or attempted
against their virtue;
2. Any person who has been convicted of an
attempt against the life of the testator, his
or
her
spouse,
descendants,
or
ascendants;
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3. Any person who has accused the testator
of a crime for which the law prescribes
imprisonment for six (6) years or more, if
the
accusation
has
been
found
groundless;
4. Any heir of full age who, having
knowledge of the violent death of the
testator, should fail to report it to an officer
of the law within a month, unless the
authorities have already taken action; this
prohibition shall not apply to cases
wherein, according to law, there is no
obligation to make an accusation;
5. Any person convicted of adultery or
concubinage with the spouse of the
testator;
6. Any person who by fraud, violence,
intimidation, or undue influence should
cause the testator to make a will or to
change one already made;
7. Any person who by the same means
prevents another from making a will, or
from revoking one already made, or who
supplants, conceals, or alters the latter's
will;
8. Any person who falsifies or forges a
supposed will of the decedent.
3. Incapacity by Reason of Morality or
Public Policy [Arts. 739 and 1028,
Civil Code]
1. Those made in favor of a person with
whom the testator was guilty of adultery or
concubinage at the time of the making of
the will;
2. Those made in consideration of a crime of
which both the testator and the beneficiary
have been found guilty;
3. Those made in favor of a public officer or
his spouse, descendants and ascendants,
by reason of his public office.
4. Incapacity by Reason of Possible
Undue Influence
5. Determination of Capacity
General Rule: At the time of death of the
decedent [Art. 1034, Civil Code].
Exceptions:
1. Those falling under 2, 3, and 5 of Art.
1032 – when the final judgment is
rendered;
2. Those falling under 4 of Art. 1032 – when
the month allowed for the report expired;
3. If the institution is conditional – when the
condition is complied with.
B. Right of Representation in
Testacy and Intestacy
Representation – 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. 970, Civil Code]
1. Requisites and Limitations
1. The right of representation may only be
exercised under any of the following
circumstances:
a. Predecease of an heir;
b. Incapacity or unworthiness; or
c. Disinheritance [Art. 923, Civil Code]
2. Representation only occurs to respect
inheritance conferred by law as to:
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1. The priest who heard the confession of
the testator during his last illness, or the
minister of the gospel who extended
spiritual aid to him during the same period
2. The relatives of such priest or minister of
the gospel within the fourth degree, the
024565CIV
church, order, chapter, community,
organization, or institution to which such
priest or minister may belong
3. A guardian with respect to testamentary
dispositions given by a ward in his favor
before the final accounts of the
guardianship have been approved, even if
the testator should die after the approval
thereof
a. Exception: Any provision made by the
ward in favor of the guardian when the
latter is his ascendant, descendant,
brother, sister, or spouse, shall be
valid;
4. Any physician, surgeon, nurse, health
officer or druggist who took care of the
testator during his last illness.
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3.
4.
5.
6.
7.
CIVIL LAW
a. Legitime; and
b. Intestate share [Art. 923, Civil Code]
There is no right of representation in
testamentary succession – that is, as to
devisees and legacies.
A renouncer can represent, but cannot be
represented. [Arts. 976 & 977, Civil Code]
a. Rationale: The representative does
not succeed the person represented
but the one whom the person
represented
would
have
succeeded. [Art. 971 Civil Code]
Representation takes place ad infinitum in
the direct descending line, but never in
the ascending line. [Art. 972, Civil Code]
General rule: Grandchildren inherit from
the
grandparents
by
right
of
representation, if proper.
a. Exception: Whenever all the children
repudiate, the grandchildren inherit in
their
own
right,
because
representation is not proper. [Art. 969,
Civil Code]
In the collateral line, representation takes
place only in favor of the children of the
brothers and sisters (i.e., nephews and
nieces) whether of the full- or half-blood
[Art. 972, Civil Code], and only if they
concur with at least one brother or sister
of the decedent.
C. Right of Accretion in
Testamentary Succession and
in Intestacy
Definition of Accretion [Art. 1015, Civil
Code]
It is a right by virtue of which, when two (2) or
more persons are called to the same
inheritance, devise or legacy, the part
assigned to 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.
It is the mechanism where the share of an heir
is increased by the shares vacated by heirs
who cannot inherit for various reasons. This is
based on the presumed intent of the decedent
to give the property to nobody but the coheirs.
024566CIV
Basis: The right of accretion is based upon
the presumed will of the decedent. Thus, the
testator can expressly provide that there shall
be no accretion among persons who would
otherwise be entitled thereto. Conversely, the
testator may validly provide for accretion in a
case where no accretion would take place
under the provisions of the law [Tolentino].
1. Requisites and Limitations
1. Accretion happens in any of the following
instances:
a. Repudiation by an heir;
b. Incapacity of an heir; or
c. Predecease of an heir. [Art. 1016, Civil
Code]
2. Accretion occurs only when the following
requisites concur:
a. Unity of object and plurality of subjects
(two or more persons are called to the
same inheritance or same portion
thereof); and
b. Vacancy of share (one of the heirs
dies before the testator, or renounces
the inheritance, or is incapacitated)
2. There can only be accretion if there is an
institution of heirs with respect to specific
properties [Art. 1016, Civil Code]. Both
heirs must have been called to inherit the
same whole.
3. There can be no accretion if there is
earmarking.
a. There is earmarking when the whole
has been subdivided into specific
portions.
b. Rationale: If there is earmarking, the
heirs are not called to the same whole.
4. Among compulsory heirs, there can only
be accretion with respect to the free
portion. There can be no accretion with
respect to legitimes. [Art.1021, Civil Code]
5. The heirs to whom the portion goes by the
right of accretion take it in the same
proportion that they inherit [Art. 1019, Civil
Code]
6. There can be no accretion where:
a. The testator provides otherwise, in
testamentary succession; or
b. The obligation is purely personal, and
hence, intransmissible.
7. The heirs to whom the inheritance accrues
shall succeed to all the rights and
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obligations which the heir who renounced
or could not receive it would have had
[Art. 1020, Civil Code].
8. In testamentary succession, when the
right of accretion does not take place, the
vacant portion of the instituted heirs, if no
substitute has been designated, shall pass
to the legal heirs of the testator, who shall
receive it with the same charges and
obligations [Art. 1022, Civil Code].
9. Accretion shall also take place among
devisees, legatees and usufructuaries
under the same conditions established for
heirs [Art. 1023, Civil Code]
D. Acceptance and Repudiation
of Inheritance
Definition of Acceptance
The act by which the person called to succeed
by universal title either by the testator or by
law manifests his will of making his own the
universality of the rights and obligations which
are transmitted to him [Tolentino].
Definition of Repudiation
The manifestation by an heir of his desire not
to succeed to the rights and obligations
transmitted to him [Tolentino].
1. Requisites [Art. 1043, Civil Code]
1. Certainty of death of the decedent; and
2. Certainty of the right to inheritance.
2. Forms of Acceptance [Arts. 1049 –
1050, Civil Code]
CIVIL LAW
they accept or repudiate the inheritance; if
they do not do so within that time, they are
deemed to have accepted the inheritance
[Art. 1057, Civil Code].
An inheritance is deemed accepted:
1. If the heir sells, donates, or assigns his
right to a stranger, or to his co-heirs, or to
any of them – the heir must first accept
the inheritance before he can dispose of it.
2. If the heir renounces the same, even
though gratuitously, for the benefit of one
or more of his co-heirs – this is actually a
donation. The heir must first accept the
inheritance before he can donate it.
3. If the heir renounces it for a price in favor
of all his co-heirs indiscriminately – this is
actually an onerous disposition. The heir
must first accept the inheritance before he
can dispose of it.
Note: But if the renunciation should be
gratuitous, and in favor of all the co-heirs (to
whom the portion renounced should devolve
by accretion), the inheritance shall not be
deemed as accepted [Art. 1050, Civil Code].
This is a true case of renunciation.
3. Form of Repudiation [Art. 1051,
Civil Code]
1. In a public instrument acknowledged
before a notary public; or
2. In an authentic document – equivalent of
an indubitable writing or a writing whose
authenticity is admitted or proved; or
3. By petition presented to the court having
jurisdiction over the testamentary or
intestate proceeding
1. Express Acceptance – one made in a
public or private document [Art. 1049(2),
Civil Code].
4. Heirs in Two (2) Capacities [Art.
2. Tacit Acceptance – one resulting from
1055, Civil Code]:
acts by which the intention to accept is
necessarily implied or from acts which one
1. If a person is called to the same
would have no right to do except in the
inheritance as an heir by will and by law,
capacity of an heir.
and he repudiates the inheritance in his
3. Implied Acceptance - Within thirty (30)
capacity as a testamentary heir, he will be
days after the court has issued an order
considered to have also repudiated the
for the distribution of the estate in
inheritance as a legal heir.
accordance with the Rules of Court, the
2.
If he repudiates it as a legal heir, without
heirs, devisees and legatees shall signify
knowledge of his being a testamentary
to the court having jurisdiction whether
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CIVIL LAW
heir, he may still accept it in the latter
capacity.
5. Irrevocability of Acceptance or
Repudiation [Art. 1056, Civil Code]
General Rule: The acceptance or repudiation
of an inheritance, once made, is irrevocable
and cannot be impugned.
Exceptions:
1. When the acceptance or repudiation
suffers from any of the vices which annul
consent; or
2. When an unknown will appear.
6. Effects of Repudiation Compared
to
Predecease
and
Incapacity
Cause of
Vacancy
Predecease
Testamentary
Succession
Legitime
Free
Portion
Represen
tation
Accretion
Intestate
successi
on
Incapacity
Represen
tation
Intestate
successi
on
Disinheritan
ce
Represen
tation
Intestate
successi
on
Accretion
Intestate
successi
on
Intestate
Successi
on
Represent
ation
Intestate
successio
n
Represent
ation
Intestate
successio
n
-
-
Accretion
Accretion
Intestate
successi
on
Repudiation
024568CIV
Intestate
successi
on
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CIVIL LAW
C. Sources of obligations
OBLIGATIONS
OBLIGATIONS
I. GENERAL PROVISIONS
A. Definition
1. Law
Obligations arise when imposed by the law
itself and cannot be presumed [Art. 1158, Civil
Code].
2. Contracts
Article 1156, Civil Code. An obligation is a
juridical necessity to give, to do or not to do.
An obligation is a juridical relation, whereby a
person (called the creditor) may demand from
another (called the debtor) the observance of
a determinative conduct, and in case of
breach, may obtain satisfaction from the
assets of the latter [Makati Stock Exchange v.
Campos, G.R. No. 138814 (2009)].
B. Elements of an obligation
1. Active Subject (Obligee/Creditor)
The person (natural or juridical) who has the
right or power to demand the prestation.
2. Passive Subject (Obligor/Debtor)
The person bound to perform the prestation.
3. Prestation (Object)
The conduct required to be observed by the
debtor/obligor (i.e. to give, to do, or not to do)
[Ang Yu Asuncion v. CA, G.R. No. 109125
(1994)];
1. Must be possible, physically and
juridically.
2. Must be determinate or at least
determinable according to pre-established
elements.
3. Must have a possible equivalent in money.
Obligations arise from the stipulation of the
parties; it has the force of law and should be
complied with in good faith [Art. 1159, Civil
Code].
3. Quasi-Contracts
Obligations arise from lawful, voluntary and
unilateral acts and which are enforceable to
the end that no one shall be unjustly
enriched or benefited at the expense of
another [Art. 2142, Civil Code].
4. Acts or Omissions Punishable by
Law/Delicts
Obligations arise from civil liability which is the
consequence of a criminal offense [Art. 1161,
Civil Code]
5. Quasi-Delicts
Obligations arise from damages caused to
another through an act or omission, there
being fault or negligence but no
contractual relations exist between the
parties [Art. 2176, Civil Code].
Note: Responsibility for fault or negligence
under a quasi-delict [Art. 2176, Civil Code] is
entirely separate and distinct from the civil
liability arising from negligence under the
penal code. But the plaintiff cannot recover
damages twice for the same act or omission
of the defendant [Art. 2177, Civil Code].
Article 1157, Civil Code. Obligations arise from:
1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts.
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CIVIL LAW
II. NATURE AND EFFECT
A. Obligation to give
1. Types of Things
Specific/
Determinate Thing
Generic Thing
Limited Generic Thing
Particularly
designated
or Object is designated only by When the generic objects are
physically segregated from all its class, genus, or species.
confined to a particular class.
others of the same class [Art.
1460, Civil Code];
Identified by individuality.
Cannot be substituted against Can be substituted by any of Can be substituted by any of the
the obligee’s will, although the the same class and same same particular class.
thing may be of the same value kind.
as, or more valuable than that
which is due [Art. 1244, Civil
Code]
2. Rights and Duties of Parties
Duties of the Debtor
Rights of the Creditor
To Give a Specific Thing
1. To preserve or take care of the thing due
with the proper diligence of a good father
of a family, unless another standard of
case is required by the law or stipulation of
the parties [Art. 1163, Civil Code]
2. To deliver the thing itself [Art. 1165, Civil
Code]
3. To deliver the fruits of the thing [Art.
1166, Civil Code]
4. To
deliver
its
accessions
and
accessories, even though not mentioned
[Art. 1166, Civil Code]
a. Accessions - everything which is
produced by a thing, or which is
incorporated or attached thereto,
excluding fruits
b. Accessories - things designed for the
embellishment, use or preservation of
another thing of more importance.
5. To pay damages in case of breach [Art.
1170, Civil Code]
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1. To compel delivery [Art. 1165, Civil Code]
2. To the fruits from the time the obligation to
deliver arises [Art. 1164, Civil Code]
3. To the accessions and accessories, even if
not mentioned [Art. 1166, Civil Code]
4. Cannot be compelled to receive a different
thing, although of the same value as, or more
valuable than that which is due [Art. 1244, Civil
Code]
5. To recover damages in case of breach,
exclusive or in addition to specific performance
[Arts. 1165 and1170, Civil Code]
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Duties of the Debtor
Rights of the Creditor
To Give a Generic Thing
1. To take care of the thing [Art. 1163, Civil
Code]
2. To deliver a thing of the quality intended
by the parties taking into consideration the
purpose of the obligations and other
circumstances [Art. 1246, Civil Code]
3. Creditor cannot demand a thing of
superior quality; neither can the debtor
deliver a thing of inferior quality [Art. 1246,
Civil Code]
4. To pay damages in case of breach [Art.
1170, Civil Code]
1. To ask that the obligation be complied with at
the expense of the debtor [Art. 1165, Civil
Code]
2. To recover damages in case of breach [Art.
1170, Civil Code]
3. Not to be compelled to receive a different one,
although of the same value as, or more
valuable than that which is due [Art. 1244, Civil
Code]
4. To ask that the obligation be complied with by a
third person at the expense of the debtor
[Art. 1165, Civil Code]
B. Obligation to do or not to do
1. Rights and Duties of Parties
Duties of the Debtor
Rights of the Creditor
Obligation To Do
1. To do it [Art. 1167, Civil Code]
2. To shoulder the cost of execution should
he fail to do it [Art. 1167, Civil Code]
3. To undo what has been poorly done [Art.
1167, Civil Code]
4. To pay damages in case of breach [Art.
1170, Civil Code]
1. To have the obligation executed at the cost of
the debtor [Art. 1167, Civil Code]
2. To recover damages in case of breach [Art.
1170, Civil Code]
Note: The debtor cannot be compelled to perform
his obligation. The ultimate sanction of civil
obligations is indemnification of damages. This
would be tantamount to involuntary servitude.
Obligation Not To Do
1. Not to do what should not be done
1. To ask to undo what should not be done, at the
2. To shoulder the cost of undoing what
debtor’s expense [Art. 1168, Civil Code]
should not have been one [Art. 1168, Civil 2. To recover damages, where it would be
Code]
physically or legally impossible to undo what
3. To pay damages in case of breach [Art.
should not have been done, because of:
1170, Civil Code]
a. The very nature of the act itself;
b. Rights acquired by third persons who
acted in good faith
c. When the effects of the acts prohibited are
definite in character and will not cease
even if the thing prohibited be undone.
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C.
Transmissibility
obligations
CIVIL LAW
of
Article 1178, Civil Code. Subject to the laws, all
rights acquired in virtue of an obligation are
transmissible, if there has been no stipulation to the
contrary.
General Rule: All rights acquired by virtue of
an obligation are transmissible [Art. 1178, Civil
Code]. Contracts take effect only between the
parties, their assigned and heirs [Art. 1311,
Civil Code].
Exception: Nature of obligation, law or
stipulation to the contrary provides otherwise
[Arts. 1178 and1311, Civil Code].
Only personal obligations, or those identified
with the persons themselves are extinguished
by death [Stronghold Insurance Co. v.
Republic-Asahi Glass Corp., G.R. No. 147561
(2006)].
D. Performance of Obligations
1. Definition
Payment means not only (1) the delivery of
money, but also (2) the performance, in any
other manner, of an obligation [Art. 1232, Civil
Code].
2. General Rule/Requirement
The thing or service in which the obligation
consists must be completely delivered or
rendered, as the case may be [Art. 1233, Civil
Code].
3. Exceptions
i. Substantial Performance
Trigger: The obligation has been substantially
performed in good faith.
Effect: The obligor may recover though there
had been a strict and complete fulfillment, less
damages suffered by the obligee [Art. 1234,
Civil Code].
024573CIV
ii. Incomplete/Irregular performance
Trigger: Obligee accepts performance despite
knowledge
of
its
incompleteness
or
irregularity, and without expression any
protest or objection.
Effect: The obligation
complied with.
is
deemed
fully
Note: There is a clear distinction between
acceptance and mere receipt. The word
accept, as used in Article 1235 of the Civil
Code, means to take as satisfactory or
sufficient, or agree to an incomplete or
irregular performance [De Castro v. CA, G.R.
No. 115838 (2002)]
iii. Partial Liquidation
Trigger: The debt is partly liquidated and
partly unliquidated.
Effect: The creditor may demand and the
debtor may affect the payment of the
liquidated debt without waiting for the
liquidation of the unliquidated debt [Art.
1248(2), Civil Code].
E. Breaches of Obligations
Those who in the performance of their
obligations are guilty of the following are liable
for damages [Art. 1170, Civil Code]:
1. Fraud (dolo): The fraud contemplated by
the foregoing provision is the deliberate
and intentional evasion of the normal
fulfillment of obligations or what is called
dolo incidente/fraud.
2. Negligence (culpa): Fault or negligence of
the debtor as an incident in the fulfillment
of an existing obligation.
3. Delay (mora): Delay in the fulfillment of
the obligation. The delay however must be
imputable to the debtor/obligor.
4. Those who in any manner contravene
the tenor thereof: Covers any illicit act
which impairs the strict and faithful
fulfillment of the obligation.
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1. Failure to Perform
Rule
Rescission of a contract will not be permitted
for a slight or casual breach, but only for such
substantial and fundamental breach as would
defeat the agreement [Vermen Realty Corp v.
CA, G.R. No. 101762 (1993)].
Effect of Failure to Perform
Substantial
Breach
Slight or Casual
Breach
1. Total Breach
1. Partial breach
2. Amounts
to 2. There is partial/
nonsubstantial
performance,
performance
in
basis
for
good faith
rescission
3. Gives
rise
to
under Art. 1191
liability
for
and payment of
damages
only
damages
[Art. 1234, Civil
Code]
Substantial breach
The question of whether a breach of contract
is substantial depends upon the attending
circumstances and not merely on the
percentage of the amount not paid [Sps.
Cannu v. Sps. Galang, G.R. No. 139523
(2005)].
Substantial performance in good faith
• An attempt in good faith to perform,
without any willful or intentional departure
therefrom
• The deviation from the obligation must be
slight, and the omission or defect must be
technical and unimportant, and must not
pervade the whole or be so material that
the object which the parties intended to
accomplish in a particular manner is not
attained [International Hotel Corp. v.
Joaquin, G.R. No. 158361 (2013)].
CIVIL LAW
In positive obligations, like an obligation to
give, the obligor or debtor incurs in delay from
the time the obligee or creditor demands from
him the fulfillment of the obligation. [Pineda v.
De Vega, G.R. No. 233774 (2019)].
Rules on Default, Delay, or Mora
Unilateral
Obligations
Reciprocal
Obligations
General Rule: “No Neither party incurs in
demand,
no delay if the other does
delay.”
not comply or is not
ready to comply in a
The
mere proper manner with
expiration of the what is incumbent
period fixed by the upon him. From the
parties
is
not moment one of the
enough in order parties
fulfills
his
that the debtor may obligation, delay by
incur in delay.
the other begins [Art.
1169(3), Civil Code].
Those obliged to
deliver or to do No delay if neither
something incur in performs.
delay from the
time the obligee
judicially
or
extrajudicially
demands
from
them the fulfillment
of their obligation
[Art. 1169(1), Civil
Code].
When demand is not necessary in order
that delay may exist [Art. 1169(2), Civil
Code]
1. When demand would be useless, as
when the obligor has rendered it beyond
his power to perform; such as:
a. When the impossibility is caused by
some act or fault of the debtor (e.g.
debtor absconded or has destroyed
the thing to be delivered);
2. Default, Delay, or Mora
b. When the impossibility is caused by a
fortuitous event, but the debtor has
Definition: Default or mora, which is a kind of
bound himself to be liable in case of
voluntary breach of an obligation, signifies the
such event [Art. 1262(2) Civil Code].
idea of delay in the fulfillment of an obligation
2. When from the nature and the
with respect to time.
circumstances of the obligation it appears
that the designation of the time when
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the thing is to be delivered or the
service is to be rendered was a
controlling motive for the establishment
of the contract (time is of the essence);
3. When the law so provides; or
4. When the obligation expressly declares.
5. When the obligor has explicitly
acknowledged that he is in default
Note: It is insufficient that the law or obligation
fixes a date for performance. It must further
state expressly that after the period lapses,
default will commence.
i. Kinds of Delay
1. Moral Solvendi
2. Mora Accipiendi
3. Compensatio Morae
Mora Solvendi
Delay on the part of the debtor to fulfill his
obligation either to give (ex re) or to do (ex
persona).
Requisites
1. Obligation must be liquidated, due and
demandable
2. Non-performance by the debtor within
the period agreed upon
3. Demand, judicial or extrajudicial, by the
creditor, unless demand is not necessary
under the circumstances enumerated in
Art. 1169(2), Civil Code. [Pantaleon v.
American Express International Inc.
(AMEX), G.R. No. 174269 (2009)]
Effects
1. The debtor is liable for damages [Art.
1170, Civil Code].
2. For determinate objects, the debtor shall
bear the risk of loss, even if the loss is due
to fortuitous events [Art. 1165(3), Civil
Code].
Mora Accipiendi
Delay on the part of the creditor to accept
the performance of the obligation [Pantaleon
v. American Express International Inc.
(AMEX), supra ].
024575CIV
CIVIL LAW
Requisites [Pantaleon v. AMEX, supra]
1. Debtor offers performance.
2. Offer must be in compliance with the
prestation as it should be performed.
3. Creditor refuses performance without just
cause.
Effects
1. The responsibility of the debtor is reduced
to fraud and gross negligence.
2. The debtor is exempted from the risk of
loss of the thing, which is borne by the
creditor. [Art. 1262, Civil Code]
3. The expenses incurred by the debtor for
the preservation of the thing after the
mora shall be chargeable to the creditor.
a. If the obligation bears interest, the
debtor does not have to pay from the
time of delay.
b. The creditor is liable for damages.
c. The debtor may relieve himself of the
obligation by consigning the thing [Art.
1256, Civil Code].
Compensatio Morae
Delay of both parties in reciprocal
obligations [Megaworld Properties and
Holdings Inc. v. Majestic Finance and
Investment Co., G.R. No. 169694 (2015)].
Effects
1. Delay of the obligor cancels delay of
obligee (and vice versa) hence it is as if
there is no default.
2. The liability of the first infractor shall be
equitably tempered by the courts. If it
cannot be determined which of the parties
first violated the contract, the same shall
be deemed extinguished, and each shall
bear his own damages [Art. 1192, Civil
Code].
Equitable Tempering under Art. 1192 vs.
under Art. 2215 [Ong v. Bognalbal, G.R. No.
149140 (2006)]
Art. 1192
Art. 2215
In case both parties
have committed a
breach
of
the
obligation,
the
liability of the first
In contracts, quasicontracts, and quasidelicts, the court may
equitably mitigate the
damages
under
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Art. 1192
Art. 2215
infractor shall be circumstances other
equitably tempered than the case referred
by the courts.
to in the preceding
article, as in the ff.
instances:
(1) That the plaintiff
himself
has
contravened
the
terms of the contract xxxThe
second
infractor
is
not
liable for damages
at all; only the first
infractor is liable,
but with his liability
mitigated.
Does not consider
which infractor first
committed
the
breach.
3. Fraud (Dolo) in the Performance of
the Obligation
Art. 1171, Civil Code. Responsibility arising from
fraud is demandable in all obligations. Any waiver
of an action for future fraud is void.
Definition
Fraud (dolo) is the deliberate or intentional
evasion of the normal fulfillment of an
obligation (dolo incidente) [Legaspi Oil Co.
Inc. v. CA, G.R. No. 96505 (1993)]. It may
also refer to an inducement through false
representation and insidious machination
(dolo causante) [Cathay Pacific Airways Ltd.
v. Sps. Vazquez, G.R. No. 150843 (2003)].
Two (2) Types of Fraud
Dolo Causante
[Arts. 1338(1),1344,
Civil Code]
Dolo Incidente
[Art. 1344(2), Civil
Code]
Definition
Those deceptions or
misrepresentations
of
a
serious
character employed
by one party and
without which the
024576CIV
Those which are not
serious in character
and without which
the
other
party
would
still
have
entered into the
CIVIL LAW
Dolo Causante
[Arts. 1338(1),1344,
Civil Code]
Dolo Incidente
[Art. 1344(2), Civil
Code]
other party would contract [Tankeh v.
not have entered DBP, supra].
into the contract
[Tankeh v. DBP,
G.R. No. 171428
(2013)].
When Present
Deception is used by
one party prior to or
simultaneous
with
the contract, in order
to
secure
the
consent of the other
[Tankeh v. DBP,
supra].
Deception used by
one party at the time
of birth or perfection,
or performance of
the obligation
Object
Essential cause of Some particular or
the
obligation accident
of
the
without which the obligation
other party would
not have entered
into the contract
Effect
Voidable
Damages
and Damages
i. Requisites for Fraud to Vitiate a
Contract (Dolo Causante)
1. It must have been employed by one
contracting party upon the other [Art.
1344, Civil Code];
2. It must have induced the other party to
enter into the contract [Art. 1338, Civil
Code];
3. It must have been serious [Art. 1344, Civil
Code]; and
4. It must have resulted in damage or injury
to
the
party
seeking
annulment
[Constantino v. CA, G.R. No. 116018
(1996)].
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Note: Any waiver of action for future fraud is
void [Article 1171, Civil Code]. This means
that past fraud may be the subject of a valid
waiver. [De Leon]
4. Negligence (Culpa) in
Performance of the Obligation
the
Article 1172, Civil Code. Responsibility arising
from negligence in the performance of every kind of
obligation is also demandable, but such liability
may be regulated by the courts, according to the
circumstances.
Article 1173, Civil Code. The fault or negligence
of the obligor consists in the omission of that
diligence which is required by the nature of the
obligation and corresponds with the circumstances
of the persons, of the time and of the place. x x x x
If the law or contract does not state the diligence
which is to be observed in the performance, that
which is expected of a good father of a family shall
be required.
General Rule: Standard of care required is
diligence of a good father of the family.
Exceptions (Other standards of care)
a. Common Carriers
They are bound to observe extraordinary
diligence in the vigilance over the goods and
for the safety of the passengers transported
by them [Art. 1733, Civil Code].
b. Hotel and inn-keepers
The keepers of hotels or inns shall be
responsible for the deposit of effects, made by
travelers, as depositaries, provided that notice
was given to them, or their employees of such
effects and that they take precautions relative
to the care and vigilance of their effects [Art.
1998, Civil Code].
This responsibility shall include the loss of, or
injury to, the personal property of the guests
caused by the servants or employees of the
keepers of hotels or inns as well as strangers;
but not that which may proceed from any force
majeure [Art. 2000, Civil Code].
024577CIV
c. Banks
Banks have the obligation to treat the
accounts of their clients ‘meticulously and with
the highest degree of care’ [Poole-Blunden v.
UnionBank, G.R. No. 205838 (2017)].
d. Pharmacists
As active players in the field of dispensing
medicines to the public, the highest degree of
care and diligence is expected [Mercury Drug
Corporation v. De Leon, G.R. No. 165622
(2008)].
Note: The Court has emphasized that a higher
degree of caution and an exacting standard of
diligence in patient management and health
care are required of a hospital's staff, as they
deal with the lives of patients who seek urgent
medical assistance. [Our Lady of Lourdes
Hospital v. Spouses Capanzana, G.R. No.
189218 (2017)].
Test of Negligence
Whether or not the defendant, in doing the
alleged
negligent
act,
observed
the
reasonable care and caution, which an
ordinary and prudent person would have used
in the same situation. If not, then he is guilty of
negligence [Mandarin Villa Inc. v. CA, G.R.
No. 119850 (1996)].
Kinds of Civil Negligence
Culpa Contractual
Culpa Aquiliana
Negligence
is Negligence is direct,
merely incidental in substantive,
and
the performance of independent.
an obligation.
There is always a There may or may not
pre-existing
be a pre-existing
contractual relation. contractual obligation.
The source of the
obligation of the
defendant to pay
damages is the
breach or nonfulfillment of the
contract.
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The
source
obligation
is
defendant’s
negligence itself.
of
the
FOR UP CANDIDATES ONLY
OBLIGATIONS AND CONTRACTS
Culpa Contractual
Culpa Aquiliana
Proof
of
the The negligence of the
existence of the defendant must be
contract and of its proven.
breach or nonfulfillment
is
sufficient
prima
facie to warrant
recovery.
CIVIL LAW
when he received it [Chaves v. Gonzales,
G.R. No. L-27454 (1970)].
F.
Remedies
Available
Creditor in Cases of Breach
1. Principal Remedies of Creditors
Obligation to Give a
Specific Thing
Extent of Damages to be Awarded [Art.
2201, Civil Code]
Good Faith
Bad Faith
Obligor is liable for
those that are the
natural
and
probable
consequences
of
the breach of the
obligation,
and
which the parties
have foreseen or
could
have
reasonably
foreseen at the
time the obligation
was constituted.
Obligor
shall
be
responsible for all
damages which may
be
reasonably
attributed to the nonperformance of the
obligation.
Any
waiver
or
renunciation made in
the anticipation of
such liability is null
and void.
For example, there is a contravention of the
tenor of the obligation when a person tasked
to repair a typewriter fails to repair it and,
instead, returns it in shambles. Under Art.
1167 of the Civil Code, said person should
pay the cost of the labor or service expended
in the repair of the typewriter by another
person. Under Art. 1170, Civil Code, said
person shall also be liable for the cost of
missing parts because he failed to return the
typewriter in the same condition as it was
024578CIV
Obligation to Give
a Generic Thing
and Obligation to
Do
Alternative Remedies
Compel the debtor to
make
delivery
(specific
performance)
[Art.
1165(1), Civil Code]
Ask the obligation
to be complied with
at the expense of
the debtor [Art.
1165(2),
Civil
Code].
Rescission
[Art. If a person obliged
1191, Civil Code]
to do something
fails to do it, the
same
shall
be
executed at his cost
[Art. 1167, Civil
Code]
What has been
poorly done [may]
be undone [Art.
1167, Civil Code].
5. Contravention of the Tenor of the
Obligation
The contravention of the tenor includes any
illicit act which impairs the strict and faithful
fulfillment of the obligation. It constitutes every
kind of defective performance [Arrieta v.
National Rice and Corn Corp., G.R. No. L15645 (1964)].
to
Rescission
[Art.
1191, Civil Code]
Damages in any event
Those who in the performance of their
obligations are guilty of fraud, negligence,
or delay, and those who in any manner
contravene the tenor thereof, are liable for
damages [Art. 1170, Civil Code].
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OBLIGATIONS AND CONTRACTS
Rescission (Resolution
Obligations)
in
CIVIL LAW
Reciprocal
Article 1191, Civil Code. The power to rescind
obligations is implied in reciprocal ones, in case
one of the obligors should not comply with what is
incumbent upon him.
The injured party may choose between the
fulfillment and the rescission of the obligation, with
the payment of damages in either case. He may
also seek rescission, even after he has chosen
fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed,
unless there be just cause authorizing the fixing of
a period.
This is understood to be without prejudice to the
rights of third persons who have acquired the thing,
in accordance with Arts. 1385 and 1388 and the
Mortgage Law.
Rescission
The unmaking of a contract, or its undoing
from the beginning, and not merely its
termination [Pryce Corp v. PAGCOR, G.R.
No. 157480 (2005)].
Right to Rescind
The rescission on account of breach of
stipulations is not predicated on injury to
the economic interests of the party plaintiff
but on the breach of faith by the defendant,
that violates the reciprocity between the
parties [Universal Food Corporation v. CA,
G.R. No. L-29155 (1970)].
Effect of Rescission Under Art. 1191
Extinguishes the obligatory relation as if it
had never been created, the extinction
having a retroactive effect. Both parties must
surrender what they have respectively
received and return each other as far as
practicable to their original situation [Art. 1385,
Civil Code].
Rescission may take place extrajudicially, by
the declaration of the injured party. The party
who deems the contract violated may
consider it resolved or rescinded, and act
accordingly, without previous court action,
but it proceeds at its own risk. For it is only
the final judgment of the corresponding court
that will conclusively and finally settle whether
024579CIV
the action taken was or was not correct in law.
But the law definitely does not require that
the contracting party who believes itself
injured must first file suit and wait for a
judgment before taking extrajudicial steps to
protect its interest [UP v. Delos Angeles, G.R.
No. L-28602 (1970)].
Under Art. 1191, the right to rescind an
obligation is predicated on the violation of the
reciprocity between parties, brought about by
a breach of faith by one of them. Rescission,
however, is allowed only where the breach is
substantial and fundamental to the
fulfillment of the obligation [Del Castillo
Vda. de Mistica v. Naguiat, G.R. No. 137909
(2003); Sps. Cannu v. Sps. Galang, G.R. No.
139523 (2005)].
It will not be permitted in casual or slight
breach [Song Fo v. Hawaiian Philippines, G.R.
No. 23769 (1925)].
Distinguished from Rescission under Art.
1380
Rescission /
Resolution [Art.
1191, Civil Code]
Rescission [Art.
1380, Civil Code]
Based on non- Based on lesion or
performance
or fraud upon creditors.
non-fulfillment
of
obligation.
Action is instituted Action is instituted by
only by the injured either party or by a
party.
third person.
Principal
retaliatory
character.
action, Subsidiary action, in
in the absence of any
other legal means to
obtain reparation.
Applies only to
reciprocal
obligations where
one party is guilty
of non-fulfillment
Applies
to
either
unilateral or reciprocal
obligations
even
when the contract has
been fully fulfilled.
In some cases, the Court cannot grant a
court may grant a period or term within
term
for which
one
must
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OBLIGATIONS AND CONTRACTS
Rescission /
Resolution [Art.
1191, Civil Code]
performance.
Rescission [Art.
1380, Civil Code]
comply.
Non-performance
Non-performance by
by the other party is the other party is
important.
immaterial.
2. Subsidiary Remedies of Creditors
i. Accion Subrogatoria
Article 1177, Civil Code. The creditors, after
having pursued the property in possession of the
debtor to satisfy their claims, may exercise all the
rights and bring all actions of the latter for the same
purpose, save those which are inherent in his
person; they may also impugn the acts which the
debtor may have done to defraud them.
The right of the creditor to exercise all of the
rights and bring all the actions which his
debtor may have against third persons.
In order to satisfy their claims against the
debtor, creditors have the following
successive rights:
1. To levy by attachment and execution upon
all the property of the debtor, except those
exempt from execution;
2. To exercise all the rights and actions of
the debtor, except such as are inherently
personal to him; and
3. To ask for rescission of the contracts
made by the debtor in fraud of their rights.
Requisites
1. The person to whom the right of action
pertains must be indebted to the creditor
2. The debt is due and demandable
3. The creditor must be prejudiced by the
failure of the debtor to collect his debts
due to him from third persons, either
through malice or negligence
4. The debtor's assets are insufficient
(debtor is insolvent)
5. The right of action is not purely personal
to the debtor
024580CIV
CIVIL LAW
Note: Previous approval of the court is not
necessary
to
exercise
the
accion
subrogatoria.
ii. Accion Pauliana
Creditors may also impugn the acts which the
debtor may have done to defraud them [Art.
1177, Civil Code].
Paragraph 3, Article 1381, Civil Code. The following
contracts are rescissible:
(3) Those undertaken in fraud of creditors when the
latter cannot in any other manner collect the claims
due them.
Requisites [Cheng v. CA, G.R. No. 144169
(2001)]
1. There is a credit in favor of the plaintiff
prior to the alienation by the debtor
2. The
debtor
has
performed
a
subsequent
contract
conveying
patrimonial benefit to third person/s.
3. The debtor’s acts are fraudulent to the
prejudice of the creditor.
4. The creditor has no other legal remedy
to satisfy his claim
5. The third person who received the
property is an accomplice to the fraud.
An accion pauliana presupposes the following:
1. A judgment;
2. the issuance by the trial court of a writ of
execution for the satisfaction of the
judgment, and;
3. the failure of the sheriff to enforce and
satisfy the judgment of the court.
It requires that the creditor has exhausted the
property of the debtor. The date of the
decision of the trial court is immaterial.
What is important is that the credit of the
plaintiff antedates that of the fraudulent
alienation by the debtor of his property.
After all, the decision of the trial court against
the debtor will retroact to the time when the
debtor became indebted to the creditor
[Cheng v. CA, G.R. No. 144169 (2001)].
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OBLIGATIONS AND CONTRACTS
Accion
Subrogatoria
Accion Pauliana
Not necessary that
creditor’s claim is
prior to the acquisition
of the right by the
debtor
Credit must exist
prior
to
the
fraudulent
alienation [Siguan
v. Lim, G.R. No.
134685 (1999)].
No
need
fraudulent intent
No
period
prescription
CIVIL LAW
1. Kinds of Conditions as to Effect
i. Suspensive
for Fraudulent intent is
required
if
the
contract rescinded
is onerous
for Prescribes in four
(4) years from the
discovery of the
fraud
III. KINDS OF OBLIGATIONS
Obligation shall only be effective upon the
fulfillment of the condition [Art. 1181, Civil
Code]. The obligee acquires a mere hope or
expectancy, protected by law, upon the
constitution of the obligation.
Before Fulfillment
After Fulfillment
The
demandability
and
acquisition/
effectivity of the rights
arising
from
the
obligation
is
suspended, but the
creditor may bring the
appropriate
actions
for the preservation of
his right [Art. 1188,
Civil Code].
The
obligation
arises or becomes
effective.
The obligor can be
compelled
to
comply with what is
incumbent
upon
him.
A. Pure
Article 1179, Civil Code. Every obligation whose
performance does not depend upon a future or
uncertain event, or upon a past event unknown to
the parties, is demandable at once.
Every obligation which contains a resolutory
condition shall also be demandable, without
prejudice to the effects of the happening of the
event.
A pure obligation is immediately demandable,
regardless of the presence of a condition or a
term/period.
B. Conditional
Article 1181, Civil Code. In conditional obligations,
the acquisition of rights, as well as the extinguishment
or loss of those already acquired, shall depend upon
the happening of the event which constitutes the
condition.
Definition
A condition is a future AND uncertain event.
This includes the acquisition of proof or
knowledge of a past event unknown to the
parties.
024581CIV
Doctrine of Constructive Fulfillment of
Suspensive Conditions
Article 1186, Civil Code. The condition shall be
deemed fulfilled when the obligor voluntarily
prevents its fulfillment.
A suspensive condition is deemed fulfilled
when:
1. Obligor intends to prevent obligee from
complying with the condition
2. Obligor actually prevents obligee from
complying with the condition
The two (2) requisites must concur. Mere
intention of the debtor to prevent the
happening of the condition, or to place
ineffective obstacles to its compliance, without
actually preventing the fulfillment, is
insufficient [International Hotel Corporation v.
Joaquin, G.R. No. 158361 (2013)].
Doctrine does not apply to:
1. Resolutory conditions
2. External contingency that is lawfully within
the control of the obligor [Taylor v. Uy
Tieng, G.R. No. L-16109 (1922)]
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OBLIGATIONS AND CONTRACTS
3. Obligor, in preventing the fulfillment of the
condition, acts pursuant to a right
Principle of Retroactivity in Suspensive
Conditions
Paragraph 1, Article 1187, Civil Code. The
effects of a conditional obligation to give, once the
condition has been fulfilled, shall retroact to the day
of the constitution of the obligation. Nevertheless,
when the obligation imposes reciprocal prestations
upon the parties, the fruits and interests during the
pendency of the condition shall be deemed to have
been mutually compensated.
xxx xxx xxx
CIVIL LAW
ii. Resolutory
The obligation is demandable at once, without
prejudice to the effects of the happening of the
event [Art. 1179(2), Civil Code].
Before Fulfillment
After Fulfillment
Preservation
of
creditor’s
rights
[Art. 1188(1), Civil
Code] also applies
to obligations with a
resolutory
condition.
Whatever may have
been
paid
or
delivered by one or
both of the parties
upon the constitution
of the obligation shall
have to be returned
upon the fulfillment of
the condition [Art.
1190(1), Civil Code].
There is no return to
the
status
quo.
However, when the
condition
is
not
fulfilled, rights are
consolidated and they
become absolute in
character.
Rationale: Obligation is constituted when its
essential elements concur. The condition
imposed is only an accidental element.
Applicability: This applies to consensual
contracts only.
Exception: This does not apply to real
contracts which can only be perfected by
delivery.
Effects of the Happening of Suspensive
Conditions
To Give
To Do/Not To Do
If reciprocal, the
fruits and interests
shall be deemed to
have been mutually
compensated as a
matter of justice and
convenience
[Art.
1187(1), Civil Code]
In obligations to do or
not to do, the court
shall determine the
retroactive effect of the
condition that has been
complied with [Art.
1187(2), Civil Code]
If unilateral, the
debtor
shall
appropriate the fruits
and
interests
received,
unless
from the nature and
circumstance
it
should be inferred
that the intention of
the
persons
constituting
the
same was different
[Art. 1187(1), Civil
Code]
The power of the court
includes
the
determination
of
whether or not there
will be any retroactive
effect. This rule shall
likewise
apply
in
obligations
with
a
resolutory
condition
[Art. 1190(3), Civil
Code]
024582CIV
2. Kinds of
Cause/Origin
Conditions
as
to
i. Potestative
The fulfillment of the condition depends on the
sole act or decision of a party.
ii. Casual
The fulfillment of the condition depends upon
chance or upon the will of a third person [Art.
1182, Civil Code].
iii. Mixed
The fulfillment of the condition depends partly
upon the will of a party to the contract and
partly upon chance and/or will of a third
person.
Exclusively
Condition and obligation
upon
the are valid
Creditor’s Will
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OBLIGATIONS AND CONTRACTS
Exclusively
upon
the
Debtor’s Will
in case of a
Suspensive
Condition
[Art.
1182,
Civil Code]
Condition and obligation
are void because to
allow
such
condition
would be equivalent to
sanctioning
obligations
which are illusory. It also
constitutes
a
direct
contravention
of
the
principle of mutuality of
contracts.
Exclusively
upon
the
Debtor’s Will
in case of a
Resolutory
Condition
[Art. 1179(2) ,
Civil Code]
Condition and obligation
are valid because in
such a situation, the
position of the debtor is
exactly the same as the
position of the creditor
when the condition is
suspensive. It does not
render the obligation
illusory.
Illustration: The condition that payment should
be made by Hermosa as soon as he receives
funds from the sale of his property in Spain is
a mixed condition, depending partly upon the
will of intestate and partly upon chance, i.e.,
the presence of a buyer of the property for the
price and under the conditions desired by the
intestate.
The condition implies that the obligor
already decided to sell the house and all
that was needed to make the obligation
demandable is that the sale be
consummated and the price thereof
remitted to the islands. There were still other
conditions that had to concur to effect the
sale, mainly that of the presence of a buyer,
ready, able and willing to purchase the
property under the conditions set by the
intestate [Hermosa v. Longara, G.R. No. L5267 (1953)].
Loss, Deterioration, or Improvement of a
Specific Thing before Fulfillment of
Suspensive Condition in Obligations to
Give [Art. 1189, Civil Code] or of Resolutory
Condition in Obligations to Do or Not to Do
[Art. 1190(2), Civil Code]
024583CIV
CIVIL LAW
Loss
Thing
of
a A thing is deemed lost:
a. When it perishes;
b. When it goes out of
commerce of man; or
c. When it disappears in
such a manner that
its
existence
is
unknown
or
it
cannot be recovered
[Art. 1189(2), Civil
Code]
Deterioration
of a Thing
Any
reduction
or
impairment
in
the
substance or value of a
thing which does not
amount to a loss
Improvement
of a Thing
Anything
added
to,
incorporated
in,
or
attached to the thing that
is due.
Re: Obligation to Deliver a Determinate
Thing
When the conditions have been imposed
with the intention of suspending the efficacy of
an obligation to give, the following rules shall
be observed in case of the improvement,
loss or deterioration of the thing during the
pendency of the condition [Art. 1189, Civil
Code]:
Without Debtor’s
Fault/Act
With Debtor’s
Fault/Act
Loss
Obligation
extinguished.
1189
(1),
Code]
is Obligation
is
[Art. converted into one of
Civil indemnity
for
damages. [Art. 1189
(2), Civil Code]
Deterioration
Impairment to be
borne
by
the
creditor. [Art. 1189
(3), Civil Code]
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UP Law Bar Operations Commission 2023
Creditor may choose
between bringing an
action for rescission
of the obligation OR
bringing an action for
FOR UP CANDIDATES ONLY
OBLIGATIONS AND CONTRACTS
Without Debtor’s
Fault/Act
With Debtor’s
Fault/Act
specific performance,
with
damages
in
either case. [Art. 1189
(4), Civil Code]
Improvement
Improvement at the
debtor’s expense,
the debtor shall
ONLY
have
usufructuary rights.
[Art. 1189 (6), Civil
Code]
Improvement by the
thing’s nature or by
time shall inure to the
benefit of the creditor.
[Art. 1189 (5), Civil
Code]
CIVIL LAW
impossible or unlawful condition shall be
valid.
2. If the condition is not to do an
impossible thing: Said condition shall be
considered as not having been agreed
upon.
The prohibition in the deed of donation against
the alienation of the property for an entire
century, being an unreasonable emasculation
and denial of an integral attribute of
ownership, should be declared as an illegal or
impossible condition. Consequently, such
condition shall be considered as not imposed.
[Roman Catholic Archdiocese of Manila v. CA,
G.R. No. 77425 (1991)]
4. Positive And Negative Conditions
Re: Obligations To Do and Not To Do
Paragraph 3, Article 1190, Civil Code. As for the
obligations to do and not to do, the provisions of
the second paragraph of article 1187 shall be
observed as regards the effect of the
extinguishment of the obligation.
Paragraph 2, Article 1187, Civil Code. In
obligations to do and not to do, the courts shall
determine, in each case, the retroactive effect of
the condition that has been complied with.
Re: Obligations
Condition
With
a
Resolutory
Upon the happening of the resolutory
condition, the rules of Art. 1189, Civil Code
shall be applied to the party who is bound to
return (i.e. the creditor in the original
obligation).
3. Impossible Conditions
General Rule
Impossible conditions, those contrary to good
customs or public policy and those prohibited
by law shall annul the obligation which
depends upon them [Art. 1183, Civil Code].
Exceptions [Art. 1183, Civil Code]
1. If the obligation is divisible: The part
thereof which is not affected by the
024584CIV
Positive [Art.
1184, Civil Code]
Negative [Art. 1185,
Civil Code]
The condition that
some event happen
at a determinate
time
shall
extinguish
the
obligation
1. as soon as the
time expires or
2. if it has become
indubitable that
the event will
not take place.
The condition that
some event will not
happen
at
a
determinate time shall
render the obligation
effective from the
moment
1. the time indicated
has elapsed, or
2. if it has become
evident that the
event
cannot
occur.
Where no date of fulfillment is stipulated, the
condition must be fulfilled within a reasonable
time or the time probably contemplated
according to the nature of the obligation [Art.
1185(2), Civil Code].
C. Obligation with a Period or a
Term
1. Obligations for whose fulfillment a day
certain has been fixed ⎯ shall be
demandable only when that day comes
[Art. 1193, Civil Code].
2. Obligations with a resolutory period
⎯ take effect at once, but terminate upon
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CIVIL LAW
arrival of the day certain [Art. 1193, Civil
Code].
3. When the debtor binds himself to pay
when his means permit him to do so,
the obligation shall be deemed to be one
with a period [Art. 1180, Civil Code].
Period or Term
Interval of time, which either suspends
demandability or produces extinguishment.
1. Kinds of Period [Art. 1193, Civil
Code]
A fortuitous event does not interrupt the
running of the period. It only relieves the
contracting parties from the fulfillment of their
respective obligations during the period
[Victoria’s Planters v. Victoria Milling Co., G.R.
No. L-6648 (1955)].
2. Effect of Advance Payment or
Delivery [Art. 1195, Civil Code]
Term/Period and Condition Distinguished
Term/Period
Must
necessarily May or
come, although it happen
may not be known
when
on
the
its
or
may
not
Gives rise to an
obligation
or
extinguishes
one
already existing
No
retroactive Has retroactive effect
effect unless there
is an agreement to
the contrary
When it is left
exclusively to the
will of the debtor,
the existence of the
obligation is not
affected
024585CIV
Trigger:
1. Something has been paid or delivered
before the arrival of the period, and
2. The obligor being unaware of the period or
believing that the obligation has become
due and demandable
Condition
Interval of time Fact or event which is
which is future and future and uncertain
certain
No
effect
existence of
obligation, only
demandability
performance
1. Ex die/ Suspensive Period – Obligation
becomes demandable after the lapse of
the period.
2. In die/ Resolutory period – Obligation
becomes demandable at once but is
extinguished after the lapse of the period.
When
it
is
left
exclusively to the will
of the debtor, the very
existence
of
the
obligation is affected
Effect: That thing paid or delivered may be
recovered with fruits and interests
3.
Loss,
Deterioration,
or
Improvement of the Thing Before
Period Expires [Art. 1194, Civil Code]
Trigger: In case of loss, deterioration or
improvement of the thing before the arrival of
the day certain
Effect: The rules in Art. 1189 shall apply
4. Benefit of the Period [Art. 1196,
Civil Code]
Trigger: Whenever in an obligation, a period
is designated.
Effect: It is presumed to have been
established for the benefit of both the creditor
and the debtor
Exception: From the tenor of the same or
other circumstances it should appear that the
period has been established in favor of one or
of the other.
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Period for the benefit of either creditor or
debtor
Creditor
Debtor
Creditor
may
demand
the
fulfillment
or
performance of the
obligation at any
time
but
the
obligor
cannot
compel him to
accept
payment
before
the
expiration of the
period.
Debtor may oppose
any
premature
demand on the part
of the obligee for the
performance of the
obligation, or if he so
desires,
he
may
renounce the benefit
of the period by
performing
his
obligation in advance.
If the period is for the benefit of the debtor
alone, he shall lose every right to make
use of it:
1. When after the obligation has been
contracted, he becomes insolvent, unless
he gives a guaranty or security for the
debt; [Art. 1198(1), Civil Code]
2. When he does not furnish to the creditor
the guaranties or securities which he has
promised; [Art. 1198(2), Civil Code]
3. When by his own acts he has impaired
said guaranties or securities after their
establishment, and when through a
fortuitous event they disappear, unless he
immediately gives new ones equally
satisfactory; [Art. 1198(3), Civil Code]
4. When the debtor violates any undertaking,
in consideration of which the creditor
agreed to the period; [Art. 1198(4), Civil
Code]
5. When the debtor attempts to abscond [Art.
1198(5), Civil Code]
6. When required by law or stipulation; [Art.
1306, Civil Code]
5. When Courts May Fix Period
CIVIL LAW
obligation is deemed to be one with a
period [Art. 1180, Civil Code].
General Rule: The courts may fix the duration
of the period. Once fixed by the courts, the
period cannot be changed by the parties. The
courts shall determine such period as may,
under the circumstances, have been probably
contemplated by the parties [Art. 1197, Civil
Code].
Exception: The court shall not fix a period
anymore if the fixing is rendered futile by the
circumstances of the case. For example, if it
can be deduced that the parties intended that
the obligation be complied with within a
reasonable time, and it has been fifty (50)
years since the execution, the reasonable
time contemplated by the parties has already
lapsed. Hence, there is no need to fix a period
which will only be a mere formality with no
other purpose than to delay or lead to an
unnecessary multiplication of suits [Clemente
v. Republic, G.R. No. 220008 (2019)].
“Period probably contemplated by the
parties”
The seller was given a reasonable time to
comply with its obligation to construct streets
in the perimeter of the land. In fixing a period,
the SC ruled that the parties intended that the
period be indefinite and shall last until the
informal settlers are evicted from the land
where the streets ought to be constructed
[Araneta v. Phil. Sugar Estates, G.R. No. L22558 (1967)].
The parents, out of parental love, allowed their
children to occupy their land. The SC ruled
that no period was intended from such
agreement. Hence, the Court has no authority
to set a period. Rather, the parties implied a
resolutory condition that the agreement would
end upon the dissipation of parental love
[Macasaet v. Macasaet, G.R. Nos. 154391-92
(2004)].
Triggers:
1. If the obligation does not fix a period but it
can be inferred from its nature and the
circumstances that a period was intended
[Art. 1197, Civil Code];
2. If the period depends upon the will of the
debtor [Art. 1197, Civil Code]; or
3. If the debtor binds himself to pay when his
means permit him to do so and thus the
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D. Alternative or Facultative
Alternative and Facultative Conditions
Distinguished
Alternative
Obligations
Facultative
Obligations
Of the two or more Of the two or more
prestations, several prestations, only one
are due.
is due, while the
other/s
may
be
performed
in
substitution of the one
due.
May be complied
with by performance
of one of the
prestations
which
are
alternatively
due.
May be complied with
by performance of
another prestation in
substitution of that
which is due.
The right of choice Choice of prestation
belongs
to
the pertains only to the
debtor, unless it debtor.
has been expressly
granted
to
the
creditor [Art. 1200,
Civil Code].
Loss/impossibility of
all prestations due
to a fortuitous event
shall extinguish the
obligation.
Loss/impossibility
of
the prestation due to
a fortuitous event is
sufficient to extinguish
the obligation.
Loss/impossibility of
one
of
the
prestations
does
not extinguish the
obligation.
Loss/impossibility
of
the substitute/s does
not
extinguish
the
obligation, provided the
obligation which is due
subsists
Culpable loss of any
of
the
objects
alternatively
due
before the choice is
made may give rise
to liability on the
part of the debtor.
Culpable loss of the
object which the debtor
may
deliver
in
substitution before the
substitution is effected
does not give rise to
any liability on the
part of the debtor.
Right of Choice [Art. 1200, Civil Code]
General Rule: Belongs to the debtor
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Exceptions
1. it is expressly granted to the creditor
2. it is expressly granted to a third person
Consent of other party
The law does not require the other party to
consent to the choice made by the party
entitled to choose [Art. 1200(1), Civil Code].
The only possible exception is when the
debtor has chosen a prestation which could
not have been the object of the obligation [Art.
1200(2), Civil Code]; the creditor’s consent
would bring about a novation of the obligation
The consent of the creditor to a novation by
change of debtor is as indispensable as the
creditor’s consent in conventional subrogation
in order that a novation shall legally take place
[Reyes v. CA, G.R. No. 120817 (1996)]
Debtor cannot make a choice, or delays
selection
If through the creditor's acts the debtor cannot
make a choice according to the terms of the
obligation, the latter may rescind the
contract with damages [Art. 1203, Civil
Code].
If the debtor does not select at the time
when performance should be effected, the
choice can be made for him by the creditor
by applying Art. 1167
In obligations to do (debtor considered to have
waived his right, subject to equity
considerations) [Art. 1167, Civil Code].
Effect of notice of choice
The effect of the notice is to limit the obligation
to the object or prestation selected.
The obligation is converted into a simple
obligation to perform the prestation chosen.
[Art. 1205, Civil Code]
Once a selection has been communicated, it
is irrevocable [Ibid].
Instances when obligation is converted
into a simple obligation
1. The person with the right of choice has
communicated his choice [Arts. 1201 &
Art.1205(1), Civil Code]
2. Only one prestation is practicable [Art.
1202, Civil Code]
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Loss of Specific Things or Impossibility
of Performance of Prestations in an
Alternative Obligation
CIVIL LAW
Fortuitous Event
price/value of the thing
lost, with right to
damages
If Debtor’s Choice [Art. 1204, Civil Code]
Fortuitous Event
Debtor’s Fault
All prestations lost/impossible
Debtor is released Creditor shall have a
from the obligation. right to indemnity for
damages based on
the value of the last
thing
which
disappeared
or
service which become
impossible,
plus
damages other than
the value may also be
awarded
Some prestations lost/impossible
Debtor to perform Debtor to perform that
that which he shall which the debtor shall
choose
from choose from among
among
the the
remainder,
remainder.
without liability for
damages
One prestation remains
Debtor to perform Debtor to perform that
that which remains. which remains
If Creditor’s Choice [Art. 1205, Civil Code]
Fortuitous Event
Debtor’s Fault
All prestations lost/impossible
Debtor is released Creditor may claim the
from the obligation.
price/value of any of
them, with indemnity
for damages
Some prestations lost/impossible
Debtor to deliver
that which he shall
choose from among
the remainder.
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Creditor may claim any
of those subsisting
without a right to
damages
OR
Debtor’s Fault
One prestation remains
Debtor to perform Creditor may claim the
that which remains.
remaining thing without
a right to damages OR
the price/value of the
thing lost with right to
damages
Facultative Obligations
Only one prestation is agreed upon, but the
obligor may render another in substitution [Art.
1206, Civil Code].
Loss or Deterioration of Substitute in
Facultative Obligations [Art. 1206, Civil
Code]
Before
Substitution is
Made
After Substitution is
Made
If due to bad faith
or
fraud
of
obligor: obligor is
liable.
The
loss
or
deterioration of the
substitute on account
of the obligor’s delay,
negligence, or fraud,
If due to the renders the obligor
negligence of the liable because once
obligor: obligor is the substitution is
not liable.
made, the obligation
is converted into a
simple one with the
substituted thing as
the object of the
obligation.
E.
Joint
Obligations
and
Solidary
1. Joint Obligations
The whole obligation, whether capable of
division into equal parts or not, is to be paid or
performed by several debtors (joint debtors)
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and/or demanded by several creditors (joint
creditors).
Each debtor is liable only for a proportionate
part of the debt, and each creditor is entitled
only to a proportionate part of the credit [Art.
1208, Civil Code].
i. Presumption of Joint Obligation [Art.
1207, Civil Code]
General Rule: An obligation is presumed joint
if there is a concurrence of several creditors,
or of several debtors, or of several creditors
and debtors in one and the same obligation
Exceptions
1. When the obligation expressly states that
there is solidarity
2. When the law requires solidarity, i.e.
quasi-delicts [Art. 2194, Civil Code], joint
payees by mistake [Art. 2157, Civil Code],
acts under Arts. 19-22, Civil Code, if
committed by two or more persons acting
jointly
3. When the nature of the obligation requires
solidarity
4. When a charge or condition imposed upon
heirs or legatees, and the testament
expressly makes the charge or condition
in solidum
5. When the solidary responsibility is
imputed by a final judgment upon several
defendants
As a rule, hospitals are not liable for the
negligence of its independent contractors.
However, it may be found liable if the
physician or independent contractor acts as
an ostensible agent of the hospital. This
exception is also known as the "doctrine of
apparent authority." [Casumpang v. Cortejo,
G.R. No. 171127 (2015)]
CIVIL LAW
Joint Divisible Obligation
One where a concurrence of several creditors,
or of several debtors, or of several creditors
and debtors, by virtue of which, each of the
creditors has a right to demand, and each of
the debtors is bound to render compliance
with his proportionate part of the prestation
which constitute the object of the obligation.
Joint Indivisible Obligation
Article 1209, Civil Code. If the division is
impossible, the right of the creditors may be
prejudiced only by their collective acts, and the
debt can be enforced only by proceeding against all
the debtors. If one of the latter should be insolvent,
the others shall not be liable for his share.
When there are several debtors or creditors,
but the prestation is indivisible, the obligation
is joint, unless solidarity has been stipulated
[Article 1209, Civil Code].
When Indivisible [Art. 1225, Civil Code]
1. Obligations to give definite things
2. Obligations not susceptible of partial
performance
3. Indivisibility is provided by law or intended
by the parties, even though the object or
service may be physically divisible
4. In obligations not to do, when character of
prestation requires indivisibility
Summary: in case of Breach
Joint Divisible
Obligations
Joint Indivisible
Obligations
In case of breach of
obligation by one of
the
debtors,
damages due must
be borne by him
alone.
In case of breach
where one of the joint
debtors fails to comply
with his undertaking,
the obligation can no
longer be fulfilled or
performed. Thus, the
action
must
be
converted into one for
indemnity
for
damages, with each
debtor liable only for
his part in the price or
value of the prestation.
ii. Presumption of Divisibility in Joint
Obligations [Art. 1208, Civil Code]
Credit or debt shall be presumed to be divided
into as many equal shares as there are
creditors or debtors, the credits or debts being
considered distinct from one another.
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2. Solidary Obligations
Solidarity
An obligation where there is concurrence of
several creditors, or of several debtors, or of
several creditors and several debtors, by
virtue of which, each of the creditors has the
right to demand, and each of the debtors is
bound to render, entire compliance with the
prestation which constitutes the object of the
obligation [Art. 1207, Civil Code].
The indivisibility of an obligation does not
necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility [Art. 1210,
Civil Code].
Solidarity may exist although the creditors and
the debtors may not be bound in the same
manner and by the same periods and
condition [Art. 1211, Civil Code].
Solidarity
Indivisibility
Refers to the legal
tie (vinculum juris),
and consequently
to the subjects or
parties
of
the
obligation
Refers
to
the
prestation that is not
capable of partial
performance
More than one Exists even if there is
creditor or more only one creditor
than one debtor and/or one debtor
(plurality
of
subjects)
Each creditor may
demand the entire
prestation and each
debtor is bound to
pay
the
entire
prestation
Each creditor cannot
demand more than
his share and each
debtor is not bound to
pay more than his
share
Effect of breach: Effect
of
Solidarity remains
Obligation
converted
indemnity
damages
All debtors are
liable for breach
committed by a codebtor
024590CIV
breach:
is
to
for
Only
the
debtors
guilty of breach of
obligation is liable for
damages
Indivisibility
All debtors are Other debtors are not
proportionately
liable if one debtor is
liable for insolvency insolvent
of one debtor
i. Kinds of Solidary Obligations
As to Source
1. Legal – imposed by law
2. Conventional – agreed upon by parties
3. Real – imposed by the nature of the
obligation
Illustration: MWSS shall be solidarily liable for
liabilities for fines of its concessionaires,
having bound itself to have jurisdiction,
supervision, and control over all waterworks
and sewerage systems in certain areas and
for granting concessionaires the right to
operate the waterworks and sewerage areas
in these Service Areas. [Maynilad v.
Secretary, G.R. 202897 (2019)]
As to Parties Bound
1. Active (solidarity among creditors) – Each
creditor has the authority to claim and
enforce the rights of all, with the resulting
obligation of paying everyone what
belongs to him.
2. Passive (solidarity among debtors) –
Each debtor can be made to answer for
the others, with the right on the part of the
debtor-payor to recover from the others
their respective shares.
3. Mixed (solidarity among creditors and
debtors) – The creditor can commence an
action against anyone of the debtors for
the compliance with the entire obligation
minus the portion or share which
corresponds to the debtor affected by the
condition or period [Art. 1211, Civil Code].
Active Solidary
creditors)
Obligation
(among
Article 1214, Civil Code. The debtor may pay any
one of the solidary creditors; but if any demand,
judicial or extrajudicial, has been made by one of
them, payment should be made to him.
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Effects of Active Solidarity
1. If from the law or the nature or the wording
of the obligation the contrary does not
appear, an obligation is presumed to be
only joint [Alipio v. CA, G.R. 134100
(2000)]
2. Each represents the other in receiving
payment and all other advantageous acts
(i.e. interrupt prescription and render the
debtor in default for the benefit of all
creditors) [Art. 1212, Civil Code]
3. Each one of the solidary creditors may do
whatever may be useful to the others, but
not anything which may be prejudicial to
the latter [Art. 1212, Civil Code]
4. One creditor does NOT represent all
others in acts such as novation (even if
advantageous),
compensation
and
remission. In this case, even if the debtor
is released, the other creditors can still
enforce their rights against the creditor
who made the novation, compensation or
remission [Art. 1215(2), Civil Code]
5. The creditor who collects the debt, shall
be liable to the others for the share in the
obligation corresponding to them [Art.
1215(2), Civil Code]
6. The credit and its benefits are divided
equally among them, unless agreement to
the contrary. [Art. 1215(2), Civil Code]
7. Debtor may pay any one of the solidary
creditors; but if any demand, judicial or
extrajudicial, has been made by one of
them, payment should be made to him
who demanded [Art. 1214, Civil Code]
Passive Solidary Obligation
General Rules
1. The creditor may proceed against any one
of the solidary debtors or some or all of
them simultaneously, so long as the debt
has not been fully collected [Art. 1216,
Civil Code].
2. Payment made by one of the solidary
debtors extinguishes the obligation. If two
or more solidary debtors offer to pay, the
creditor may choose which offer to accept
[Art. 1217 (1), Civil Code].
3. 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
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to him, or pertain to his own share. For
defenses which personally belong to the
others, such debtor may avail himself
thereof only as regards that part of the
debt for which the latter are responsible
[Art. 1222, Civil Code].
Effects of Passive Solidarity
1. Each debtor can be required to pay the
entire obligation, but after payment he can
recover from the co-debtors their
respective shares [Art. 1217(2), Civil
Code]
2. Each debtor may set up his own claims
against the creditor as payment of the
obligation
3. Remission of the entire debt affects all
debtors, but when remission is limited to
the share of one debtor, the other debtors
are still liable for the balance of the
obligation
a. The remission of the whole obligation,
obtained by one of the solidary debtors,
does not entitle him to reimbursement
from his co-debtors [Art. 1220, Civil
Code].
b. The remission made by the creditor of
the share which affects one of the
solidary debtors does not release the
latter from his responsibility towards the
co-debtors, in case the debt had been
totally paid by any one of them before
the remission was effected [Art. 1219,
Civil Code].
4. All debtors are liable for the loss of the
thing due, even if only one of them is at
fault, or after incurring delay it is lost by
fortuitous event [Art. 1221 (2), Civil Code]
5. Interests due by delay of one is borne by
all of them [Art. 1221 (2), Civil Code]
ii. Defenses Available to a Solidary
Debtor [Art. 1222, Civil Code]
a. Those derived from the nature of the
obligation
Defenses inherent in an obligation include
non-existence of the obligation because of
absolute simulation or illicit object, nullity due
to defect in capacity or consent of all debtors,
unenforceability,
non-performance
of
suspension condition or non-arrival of period,
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extinguishment of the obligation, res judicata,
and prescription.
b. Those personal to him
Personal defenses such as minority, insanity,
fraud, violence, or intimidation will serve as a
complete exemption of the defendant debtor
from liability to the creditor
c. Those pertaining to his own share
d. Those personally belonging to other
co-debtors but only as regards that part
of the debt for which the latter are
responsible.
Comparing Demand Upon Solidary Debtor
and Payment by a Solidary Debtor
Demand Upon a
Solidary Debtor
Payment by a
Solidary Debtor
The demand made
against one of them
shall not be an
obstacle to those
which
may
subsequently
be
directed against the
others so long as
the debt has not
been fully collected
[Art. 1216, Civil
Code].
Full payment made by
one of the solidary
debtors extinguishes
the obligation [Art.
1217 (1), Civil Code].
The creditor may
proceed against any
one of the solidary
debtors
or
all
simultaneously [Art.
1216, Civil Code].
If two or more solidary
debtors offer to pay,
the
creditor
may
choose which offer to
accept [Art. 1217 (1),
Civil Code].
A creditor’s right to
proceed against the
surety
exists
independently of his
right to proceed
against the principal
[Palmares
v
CA,
G.R.
No.
126490 (1998)].
The solidary debtor
who
made
the
payment shall have the
right to claim from his
co-debtors the share
which corresponds to
them with interest,
UNLESS payment is
barred by prescription
or illegality [Art. 1218,
Civil Code].
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iii. Loss of the thing or impossibility of
performance of the passive/mixed
solidary obligation [Art. 1221, Civil
Code]
Without fault The obligation
of
the extinguished.
debtors
shall
be
With fault of All
debtors
shall
be
any of the responsible to the creditor,
debtors
for the price and the
payment of damages and
interest, without prejudice
to their action against the
guilty or negligent debtor.
Through
a
fortuitous
event
after
one incurred
in delay
All
debtors
shall
be
responsible to the creditor,
for the price and the
payment of damages and
interest, without prejudice
to their action against the
guilty or negligent debtor.
F. Obligations with a Penal
Clause
Penal Clause
An accessory obligation which the parties
attach to a principal obligation for the purpose
of insuring the performance thereof by
imposing on the debtor a special presentation
(generally consisting in the payment of a sum
of money) in case the obligation is not fulfilled
or is irregularly or inadequately fulfilled" [SSS
v. Moonwalk Development & Housing Corp.,
G.R. No. 73345(1993)].
If the principal obligation is void, the penal
clause shall also be void. However, the nullity
of the penal clause does not carry with it the
nullity of the principal obligation [Art. 1230,
Civil Code].
1. Rules on Penalty
1. The penalty shall substitute the indemnity
for damages and payment of interest in
case of non-compliance [Art. 1226, Civil
Code], unless:
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a. There is an express provision to that
effect
b. The obligor refuses to pay the penalty
c. The obligor is guilty of fraud in nonfulfillment
2. Debtor cannot exempt himself from the
performance of the principal obligation by
paying the stipulated penalty unless this
right has been expressly reserved for him
[Art. 1227, Civil Code].
3. The creditor cannot demand the fulfillment
of the principal obligation and demand the
satisfaction of the penalty at the same
time unless the right has been clearly
granted to him [Art. 1227, Civil Code]. A
tacit or implied grant is admissible.
a. If the creditor chooses to demand
the satisfaction of the penalty, he
cannot afterwards demand the
fulfillment of the obligation.
b. If there was fault on the part of the
debtor, the creditor may demand not
only the satisfaction of the penalty but
also the payment of damages.
c. If the creditor has chosen to
demand the fulfillment of the
principal
obligation
and
the
performance
thereof
becomes
impossible without his fault, he may
still demand the satisfaction of the
penalty.
2. Enforcement of the Penalty
The enforcement of the penalty can be
demanded by the creditor only when the nonperformance is due to the fault or fraud of the
debtor. The non-performance gives rise to the
presumption of fault; in order to avoid the
payment of the penalty, the debtor has the
burden of proving an excuse - the failure of
the performance was due to either force
majeure or the acts of the creditor himself
[Development Bank of the Philippines v. Go,
G.R. No. 168779 (2007)].
3. Proof of Actual Damage
Proof of actual damage suffered by the
creditor is not necessary in order that the
penalty may be enforced [Art. 1228, Civil
Code].
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4. When Penalty may be Reduced
[Art. 1229, Civil Code]:
1. If the principal obligation has been partly
complied with.
2. If the principal obligation has been
irregularly complied with.
3. If the penalty is iniquitous or
unconscionable, even if there has been
no performance.
The question of whether a penalty is
reasonable or iniquitous can be partly
subjective and partly objective. Its
resolution would depend on such factors as,
but not necessarily confined to, the type,
extent and purpose of the penalty, the nature
of the obligation, the mode of breach and its
consequences, the supervening realities, the
standing and relationship of the parties, and
the like, the application of which, by and large,
is addressed to the sound discretion of the
court [Ligutan v CA, G.R. No. 138677 (2002)].
IV. EXTINGUISHMENT OF
OBLIGATIONS
A. Modes of Extinguishing
Obligations [Par. 1, Art. 1231,
Civil Code]
1. By payment or performance
2. By the loss of the thing due;
3. By the condonation or remission of the
debt;
4. By the confusion or merger of the rights of
creditor and debtor;
5. By compensation;
6. By novation
B.
Other
Modes
of
Extinguishing Obligations [Par.
2, Art. 1231, Civil Code]
1.
2.
3.
4.
By annulment
By rescission
By fulfillment of a resolutory condition
Prescription
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C.
Other
Forms
of
Extinguishment Not Found in
Art. 1231
d. Must be not so material that intention
of the parties is not attained
[International Hotel Corporation v.
Joaquin, G.R. No. 158361 (2013)]
1. Death of one of the contracting parties in
personal obligations [Art. 1311(1), Civil
Code]
2. Will of one of the contracting parties
3. Renunciation or Waiver by the creditor
4. Mutual Desistance or withdrawal [Saura
Import & Export Co. v. DBP, G.R. No. L24968 (1972)]
5. Happening of a fortuitous event [Art. 1174,
Civil Code]
6. Compromise [Art. 2028, Civil Code]
7. Impossibility of fulfillment [Arts. 1184 &
1266, Civil Code]
8. Expiration of resolutory term or period [Art.
1193(2), Civil Code]
2. When the obligee accepts performance
despite its incompleteness or irregularity
and without expressing any protest or
correction [Art. 1235, Civil Code]
1. Payment or Performance
i. Definition
The delivery of money OR the performance of
obligation in any other manner [Art. 1232, Civil
Code]
ii. Object of Payment
Integrity of Prestation
General Rule: A debt shall be understood to
have been paid when the thing or service in
which the obligation consists has been
completely delivered or rendered [Art.
1233, Civil Code]. Partial or irregular
performance
will
not
produce
the
extinguishment of an obligation as a general
rule.
Exceptions:
1. When
the
obligation
has
been
substantially performed in good faith [Art.
1234, Civil Code]
Requisites of substantial performance:
a. Attempt in good faith to perform
without willful or intentional departure;
b. Deviation is slight;
c. Omission or defect is unimportant; and
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Identity of Prestation
General Rules
For obligations to give: The same thing or
the same prestation, in the manner agreed
upon, must be delivered or performed. The
debtor cannot compel the creditor to receive a
different one, although the latter may be of the
same value as, or more valuable than that
which is due [Art. 1244(1), Civil Code].
For obligations to do or not to do: an act or
forbearance cannot be substituted by another
act or forbearance against the obligee's will
[Art. 1244(2), Civil Code].
Exceptions to Art. 1244, Civil Code:
1. If the obligation is facultative [Art. 1206,
Civil Code]
2. When the creditor agrees to a dation in
payment [Art. 1245, Civil Code]
3. When obligee accepts incomplete or
irregular performance without any
protest → obligation deemed fully
complied with [Art. 1235, Civil Code].
4. If there is substantial performance by
debtor → The obligor may recover as
though there had been a strict and
complete fulfillment, less damages
suffered by the obligee [Art. 1234, Civil
Code]
iii. Necessity of Complete Performance
[Art. 1248, Civil Code] [CD]
General Rules:
1. The Creditor cannot be compelled
partially to receive the prestations in
which the obligation consists.
2. The Debtor may not be required to make
partial payments
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Exceptions:
1. There is an express stipulation that
permits partial performance
2. When the debt is in part liquidated and in
part unliquidated, the creditor may
demand and the debtor may effect the
payment of the former without waiting for
the liquidation of the latter
3. When the nature of the obligation is
susceptible to partial fulfillment (e.g. there
are different prestations with different
terms and conditions, or the obligation
cannot be performed at one time)
CIVIL LAW
Effects of payment by interested third
person
a. Obligation is extinguished;
b. Debtor should fully reimburse the
interested third person;
c. The interested third person is
subrogated to the rights of the creditor
[Art 1302(3)].
4. A third person not interested in the
obligation. However, the creditor is not
bound to accept payment by him, unless
there is a stipulation to the contrary [Art.
1236, Civil Code].
iv. By whom
Payor must have:
1. free disposal of the thing due, and
2. capacity to alienate it [Art. 1239, Civil
Code].
Free disposal of the thing due means that the
thing to be delivered must not be subject to
any claim or lien or encumbrance of a third
person. Capacity to alienate means that the
person is not incapacitated to enter into
contracts [Arts. 1327 &1329, Civil Code].
However, when a minor between eighteen
(18) and twenty-one years (21) of age
entered into a contract without the consent
of the parent or guardian, and voluntarily
pays a sum of money or delivers a fungible
thing in fulfillment of the obligation, there
shall be no right to recover the same from
the obligee who has spent or consumed it in
good faith. [Art. 1427, Civil Code].
Payor may either be:
1. The debtor or his duly authorized agent
2. The debtor’s heir or successor in
interest
3. A third person interested in the
fulfillment of the obligation (i.e. codebtor, guarantor, surety, owner of
mortgaged property or pledge) whether
the debtor consents to it or not, and even
without debtor’s knowledge [Art. 1302,
Civil Code]. This includes payment by a
joint debtor [Monte de Piedad y Caja de
Ahorros de Manila v. Rodrigo, G.R. No. L42928 (1936)] but not a solidary codebtor.
024595CIV
Payment by a third person not interested
in the fulfillment of the obligation
General Rule: The creditor is not bound to
accept payment or performance by a third
person who has no interest in the fulfillment of
the obligation [Art. 1236, Civil Code]
Exception:
1. Stipulation to the contrary [Art. 1236, Civil
Code]
2. With consent of debtor [Art 1302(2)]
Reimbursement for Payment Made by a
Third Person
The third party
pays with the
consent of the
debtor
The third party
pays without the
knowledge or
consent of the
debtor
The third party may
claim reimbursement
for the full amount
[Art. 1236(2), Civil
Code].
The third party may
only claim insofar as
the payment has
been beneficial to
the
debtor
[Art.
1236(2), Civil Code].
The third party is
presumed to be
legally
subrogated
[Art.
1302,
Civil
Code].
The
third
party
cannot compel the
creditor to subrogate
him on his rights
[Art.
1237,
Civil
Code].
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Reimbursement
Distinguished
Reimbursement
and
Subrogation
Subrogation
Personal action to Includes
recover
amount reimbursement,
but
paid
also the exercise of
other rights attached
to
the
original
obligation
(e.g.
guaranties, securities)
Payment made by a third person who does
not intend to be reimbursed by the debtor is
deemed to be a donation, which requires the
debtor’s consent. But the payment is in any
case valid as to the creditor who has accepted
it [Art. 1238, Civil Code].
v. To whom
CIVIL LAW
Exceptions to the requirement of proof
of benefit:
a. Subrogation: if after the payment, the
third person acquires the creditor’s
rights;
b. Ratification: if the creditor ratifies the
payment to the third person;
c. Estoppel: if by the creditor’s conduct,
the debtor has been led to believe that
the third person has authority to
receive the payment [Art. 1241, Civil
Code];
d. Payment made in good faith to any
person in possession of the credit
shall release the debtor [Art. 1242,
Civil Code];
4. In case of active solidarity
a. The debtor may pay any one of the
solidary creditors.
b. But, if any demand, judicial or
extrajudicial, has been made by one
of them, payment should be made to
him. [Art. 1214, Civil Code]
1. Payment shall be made to:
a. The person in whose favor the
vi. Place of Payment
obligation has been constituted; or
b. His successor in interest; or
1. In the place designated in the
c. Any person authorized to receive it
obligation.
[Art. 1240, Civil Code]
2. In the absence of stipulation and if the
2. Payment to a person who is
obligation is to deliver a determinate thing:
incapacitated to administer his
Wherever the thing might be at the
property shall be valid if:
moment the obligation was constituted.
a. He has kept the thing delivered, OR
3. In any other case: domicile of debtor
b. Insofar as the payment has been
[Art. 1251, Civil Code]
beneficial to him [Art. 1241(1), Civil
Code].
vii. Time of Payment
3. Payment made to a third person may
also be valid
General Rule: Upon demand
a. Insofar as it has redounded to the
benefit of the creditor
Exceptions:
1. When time is of the essence
b. Proof that such payment has
2. When the debtor loses the benefit of the
redounded to the benefit of the
period
creditor is required.
3. When the obligation is reciprocal
c. When payment is made to the wrong
party,
the
obligation
is
not
extinguished as to the creditor who is
viii. Form of Payment
without fault or negligence even if the
debtor acted in utmost good faith and
General Rule: Payment must be made in the
by mistake as to the person of the
currency stipulated
creditor or through error induced by
fraud of a third person [Allied Banking
Exception: if payment is not possible in such
Corp. v. Lim Sio Wan, G.R. No.
currency → pay in legal tender [Art. 1249,
133179 (2008)].
Civil Code].
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Legal Tender
Such currency which in a given jurisdiction
can be used in the payment of debts, and
which cannot be refused by the creditor.
When payment is not in legal tender
General Rule: The creditor may refuse to
accept payment (e.g. checks) not made in
legal tender [Philippine Airlines v. CA, G.R.
No. L-49188 (1990)].
• Checks representing demand deposits do
not have legal tender power and their
acceptance in the payment of public and
private debts is at the creditor’s option
[Sec. 60, R.A. No. 7653].
• If the creditor accepts the check or no
prompt objection to the form of payment
is made, there is a valid tender of
payment and credit can no longer claim
later that payment is not in legal tender.
While it is true that in general, a
manager’s check is not legal tender, the
creditor has the option of refusing or
accepting it. [Pabugais v. Sahijwani, G.R.
No. 156846 (2004)]
• Generally, when payment in check is
accepted, it produces the effect of
payment only when the check is
cleared and the funds are transferred to
the account of the creditor [Sec. 60, R.A.
No. 7653]. However, the subsequent
failure to encash the check within a period
of ten (10) years or more, will have the
effect of payment [Evangelista v.
Screenex, Inc., G.R. No. 211564 (2017)].
The delivery of promissory notes payable to
order, or bills of exchange or other mercantile
documents shall produce the effect of
payment only when:
1. they have been cashed, or
2. through the fault of the creditor they
have been impaired [Art. 1249(2), Civil
Code].
Extraordinary Inflation or Deflation
In case an extraordinary inflation or deflation
of the currency stipulated should supervene
→ the value of the currency at the time of
the establishment of the obligation shall be
the basis of payment
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CIVIL LAW
Exception: There is an agreement to the
contrary [Art. 1250, Civil Code].
Requisites for application of Art. 1250,
Civil Code
1. Official declaration of extraordinary
inflation of deflation from the BSP
2. Obligation is contractual in nature
3. Parties expressly agreed to consider the
effects of extraordinary inflation or
deflation [Equitable PCI Bank v. Sheung
Ngor, G.R. No. 171545 (2007)]
Even if the price index of goods and services
may have risen during the intervening period,
this increase, without more, cannot be
considered as resulting to "extraordinary
inflation" as to justify the application of Art.
1250, Civil Code [Telengtan & Sons, Inc. v.
United States Lines, G.R. No. 132284 (2006)].
Extraordinary
Inflation
or
Deflation
Requires Judicial Determination
The supervening of extraordinary inflation is
never assumed. The party alleging it must lay
down the factual basis for the application of
Art. 1250, Civil Code. The effects of
extraordinary inflation are not to be applied
without an official declaration by competent
authorities and the only competent authority
so far recognized by this Court to make such
an official proclamation is the BSP [Citibank
v. Sabeniano, G.R. No. 156132 (2007)].
2. Application of Payments
Requisites
If there is plurality of debts, the debtor, at the
time of payment, may declare to which of the
debts the payment must be applied, provided:
1. Debts are of the same kind
2. Debts are owed to the same creditor and
by the same debtor
3. All debts are due, UNLESS parties so
stipulate, or when application is made by
the party for whose benefit the term has
been constituted
4. Payment made is not sufficient to cover
all debts [Art. 1252, Civil Code]
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Rules on Application of Payments
1. Preferential right of debtor - debtor has
the right to select which of his debts he is
paying
2. The debtor makes the designation at
the time he makes the payment.
3. Unless the parties so stipulate, or when the
application of payment is made by the party
for whose benefit the term has been
constituted, application shall not be made
as to debts which are not yet due. [Art.
1252, Civil Code].
4. If not, the creditor makes the
application, by so stating in the receipt
that he issues, unless there is cause for
invalidating the contract.
5. If neither the creditor nor debtor exercises
the right to apply, or if the application is
not valid, the application is made by
operation of law.
Note: The court will apply the payment
according to the justice and equity of the
case, taking into consideration all its
circumstances [Premiere Development
Bank v. Central Surety, G.R. No. 176246
(2009)].
6. If debt produces interest, the payment of
principal is not deemed to have been
made unless the interests are covered
[Art. 1253, Civil Code].
7. When no application can be inferred
from the circumstances of payment, it is
applied:
a. to the most onerous debt of the
debtor; or
b. if debts due are of the same nature
and burden, to all the debts in
proportion [Art. 1254, Civil Code].
8. Rules on application of payment may not
be invoked by a surety or solidary
guarantor.
Exceptions:
1. Rules on application of payment apply to a
person owing several debts of the same
kind to a single creditor. They cannot be
made applicable to a person whose
obligation as a mere surety is both
contingent and singular. There must be
full and faithful compliance with the terms
of the contract [Reparations Commission
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CIVIL LAW
v. Universal Deep-Sea Fishing Corp., G.R.
Nos. L-21901 and L-21996 (1978)].
2. The debtor’s right to apply payment can
be waived and even granted to the
creditor if the debtor so agrees [Premiere
Development v. Central Surety, G.R. No.
176246 (2009)].
Limitations
1. Creditor may refuse partial payment [Art.
1248, Civil Code]
2. Payment of principal not yet made if
interest has not been covered [Art. 1253,
Civil Code]
3. Debtor cannot apply payment to a debt
which is not yet liquidated [Art. 1252(1),
Civil Code].
4. He cannot choose a debt with a period
(established for the creditor’s benefit)
before the period has arrived [Ibid].
3. Dation in Payment
Definition
Property is alienated to the creditor in
satisfaction of a debt in money [Art. 1245, Civil
Code]
Requisites
1. Existence of a money obligation
2. Alienation to the creditor of a property by
the debtor with the creditor’s consent
3. Satisfaction of the money obligation
4. Payment by cession
Special form of payment where the debtor
assigns/abandons ALL his property for the
benefit of his creditors in order that from the
proceeds thereof, the latter may obtain
payment of their credits [Art. 1255, Civil Code].
Requisites
1. There is a plurality of debts
2. There is a plurality of creditors
3. Partial or relative insolvency of debtor
4. Acceptance of the cession by the
creditors
5. Debtor is released only for the net
proceeds unless there is a stipulation to
the contrary [Art. 1255, Civil Code].
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Remedy if Creditors Refuse Cession
valid tender of payment thereof [Soco v.
Militante, G.R. No. L-58961 (1983)].
There will be a proceeding in accordance with
the FRIA such that all of the assets of an
insolvent debtor are pooled then sold for the
benefit of the creditors [R.A. No. 10142].
Cession and Dation Distinguished
Cession
Dacion en Pago
Plurality of creditors One creditor
Debtor must be Debtor
not
partially
or necessarily in state of
relatively insolvent
financial difficulty
Universality
of Thing delivered
property is ceded
equivalent
performance
Merely
releases
debtor for the net
proceeds of things
ceded or assigned,
unless there is
contrary intention
is
of
Extinguishes
obligation
to
the
extent of the value of
the thing delivered, as
agreed upon, proved
or implied from the
conduct
of
the
creditor
Involves
all Does not involve all
properties of debtor properties of debtor
Creditor does not Creditor
become owner of owner
the ceded property
4.
Tender
Consignation
of
becomes
Payment
and
i. Definitions
a. Tender of payment
Manifestation made by the debtor to the
creditor of his desire to comply with his
obligation,
with
offer
of
immediate
performance [Del Carmen v. Sps. Sabordo,
G.R. No. 181723 (2014)].
Tenders of payment, in order to be valid, must
be made in the lawful currency. The tender
of a check to pay for an obligation is not a
024599CIV
b. Consignation
Deposit of the object of obligation in a
competent court in accordance with the rules
prescribed by law whenever the creditor
unjustly refuses payment or because of some
circumstances which render direct payment to
the creditor impossible or inadvisable
[Spouses Bontostro v. Spouses Luna, G.R.
No. 172346 (2013)].
ii. Requisites of Consignation
1. There is a debt due;
2. Consignation is made because of some
legal cause:
a. There was tender of payment and
creditor refuses without just cause to
accept it
b. Instances when consignation alone
would suffice as provided under Art.
1256, Civil Code
3. Previous notice of consignation was
given to those persons interested.
Previous notice is essential to the validity
of the consignation and its lack invalidates
the same [Soco v. Militante, supra] (1st
notice)
4. Actual deposit/consignation with proper
judicial authority
5. Subsequent notice of consignation (2nd
notice) [Art 1258(2), Civil Code]
Tender of Payment and Consignation
Distinguished
Tender of
Payment
Consignation
Manifestation
made by the debtor
to the creditor of his
desire to comply
with his obligation,
with
offer
of
immediate
performance.
Deposit of the object
of obligation in a
competent court in
accordance with the
rules prescribed by
law whenever the
creditor
unjustly
refuses payment or
because of some
circumstances which
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Tender of
Payment
CIVIL LAW
Consignation
render direct payment
to
the
creditor
impossible
or
inadvisable.
Antecedent
preparatory act
Extrajudicial
or Principal act
Judicial
Both Tender and Consignation Needed
To Produce Effect of Payment
announced to the persons interested in the
fulfilment
of
the
obligation.
The
consignation shall be ineffectual if it is not
made strictly in consonance with the
provisions which regulate payment [Art. 1257,
Civil Code].
v. How Consignation Is Made
Consignation shall be made by depositing
the things due at the disposal of judicial
authority, before whom the tender of
payment shall be proved, in a proper case,
and the announcement of the consignation in
other cases. The consignation having been
made, the interested parties shall also be
notified thereof [Art. 1258, Civil Code].
vi. Who Bears the Expenses
To have the effect of payment and the
consequent extinguishment of the obligation
to pay, the law requires the companion acts of
tender of payment and consignation. Tender
of payment without consignation only frees the
debtor from the obligation to pay interest on
the amount due from the time the unjustified
refusal takes place [Go Cinco v. CA, G.R. No.
151903 (2009)].
iii. When tender and refusal not
required/
Consignation
alone
is
sufficient [Art. 1256, Civil Code]
1. Creditor is absent or unknown, or does not
appear at the place of payment;
2. Creditor is incapacitated to receive the
payment at the time it is due;
3. When without just cause, creditor refuses
to give receipt;
4. Two or more persons claim the same right
to collect (i.e. Interpleader);
5. Title of the obligation has been lost.
The expenses of consignation, when properly
made, shall be charged against the creditor
[Art. 1259, Civil Code].
vii. Effects of Consignation
If accepted by the creditor or judicial
declaration by the Court that consignation is
properly made:
1. Debtor is released in same manner as if
he had performed the obligation at the
time of consignation
2. Accrual of interest is suspended from
the moment of consignation
3. Deterioration or loss of the thing or
amount consigned, occurring without the
fault of debtor, must be borne by
creditor from the moment of deposit
When Consignation is Completed
Unless there is an unjust refusal by a creditor
to accept payment from a debtor, Art. 1256 of
the Civil Code cannot apply [Llobrera v.
Fernandez, G.R. No. 142882 (2006)].
Consignation is completed at the time the
creditor accepts the same without objections,
or, if he objects, at the time the court declares
that it has been validly made in accordance
with law [Dalton v. FGR Realty and
Development Corporation, G.R. No. 172577
(2011)].
iv.
What
Consignation
viii. Withdrawal of Consigned Amount
by the Debtor
Constitutes
Valid
In order that the consignation of the thing due
1. Amount deposited may be withdrawn by
may release the obligor, it must first be
debtor if made before approval of the
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CIVIL LAW
court or acceptance of the creditor. In
such a case, obligation remains in force
[Art. 1260(2), Civil Code].
2. After approval of the court or acceptance
by the creditor, with the consent of the
latter → Obligation remains in force, but
guarantors and co-debtors are released.
Preference of the creditor over the thing is
lost [Art. 1261, Civil Code].
3. After approval of the court or acceptance
by the creditor, and without creditor’s
consent → debtor can no longer withdraw
the consigned amount since the obligation
has already been extinguished [Pabugais
v. Sahijwani, G.R. No. 156846 (2004)].
4. If the creditor authorizes the debtor to
withdraw, third persons who were
benefited by the consignation are not
prejudiced by the revival of the obligation.
When the legal excuse of fortuitous event
is not applicable:
1. Obligor delays delivery of determinate
thing [Art. 1165(3), Civil Code];
2. Obligor promises to deliver the same
thing to two or more persons who do
not have the same interest [Art. 1165(3),
Civil Code];
3. Nature of the obligation requires
assumption of risk [Art. 1174, Civil
Code]
4. Provided by law or stipulation; [Art.
1174, Civil Code]
5. Liability of a bailee in fortuitous events;
[Art. 1942, Civil Code]
6. Liability of a depositary in fortuitous
events [Art. 1979, Civil Code]
7. Liability of the officious manager in
fortuitous events [Art. 2147, Civil Code].
5. Loss of determinate thing due or
Impossibility
or
difficulty
of
performance
b. Loss of Generic Things
General
Rule:
extinguished.
Obligation
is
NOT
i. Loss
a. Loss of Determinate Things
General Rule: Obligor shall not be liable for
delivery of a determinate thing when:
1. Thing is lost or destroyed without
debtor’s fault; and
2. Debtor has not incurred in delay [Art.
1262(1), Civil Code].
Exception: the obligor is still liable for the loss
when:
1. Law or a stipulation provides that obligor
is still liable for fortuitous events; or
2. The nature of the obligation requires an
assumption of risk.
o In such a case, obligor is also liable
for damages [Art. 1262(2), Civil Code].
3. When the obligation to deliver a
determinate object arises from a criminal
act → debtor shall be liable for the
payment of its price [Art. 1268, Civil Code]
4. Acceptance of payments in bad faith
[Art. 2159, Civil Code]
024601CIV
Article 1263, Civil Code. In an obligation to deliver
a generic thing, the loss or destruction of anything
of the same kind does not extinguish the
obligation.
Exceptions:
1. Delimited Generic Thing - When there is
a limitation of the generic object to a
particular existing mass or a particular
group of things, the obligation is
extinguished by the loss of the particular
mass or group or limited quantity from
which the prestation has to be taken
[Tolentino]
2. Genus goes out of commerce - The
obligation to deliver is extinguished
c. Partial Losses
When there is partial loss of the object, the
courts shall determine whether, under the
circumstances, the partial loss is so important
as to extinguish the obligation [Art. 1264, Civil
Code]. In other words, the court will decide
whether the partial loss is such as to be
equivalent to a complete or total loss [De
Leon].
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Effects of Partial Losses
1. Loss
is
significant
possible
extinguishment of obligation
2. Loss is insignificant - obligation is NOT
extinguished
CIVIL LAW
Obligation to
Deliver a
Specific Thing
incurred delay.
the kind or class is
limited itself, and the
whole class perishes.
d. Presumption of Fault
General Rule: It is presumed that the loss
was due to debtor’s fault when the thing is lost
while in his possession [Art. 1265, Civil Code].
Exceptions:
1. There is proof to the contrary; or
2. In case of earthquake, flood, storm or
other natural calamity [Art. 1265, Civil
Code].
e. Loss in Obligations to Give with
Resolutory Conditions
When the conditions have been imposed with
the intention of suspending the efficacy of
an obligation to give, the following rules
shall be observed in case of the improvement,
loss or deterioration of the thing during the
pendency of the condition:
1. If the thing is lost without the fault of the
debtor,
the
obligation
shall
be
extinguished;
2. If the thing is lost through the fault of
the debtor, he shall be obliged to pay
damages; it is understood that the
thing is lost when it perishes, or goes
out of commerce, or disappears in
such a way that its existence is
unknown or it cannot be recovered
[Art. 1189, Civil Code].
Effects of Loss [Arts. 1262-1263, Civil
Code]
Obligation to
Deliver a
Specific Thing
Obligation to Deliver
a
Generic Thing
Obligation
is
extinguished if the
thing
was
destroyed without
fault of the debtor
and before he has
Loss of a generic
thing
does
not
extinguish
an
obligation, EXCEPT
in case of delimited
generic things, where
024602CIV
Obligation to Deliver
a
Generic Thing
f. Creditors’ Rights
The obligation having been extinguished by
the loss of the thing, the creditor shall have all
the rights of action which the debtor may
have against third persons by reason of the
loss [Art. 1269, Civil Code].
Requisites:
1. Obligation is extinguished; and
2. Extinguishment is due to the loss of the
thing
Effect: Creditor shall have all rights of action
which the debtor may have against third
persons by reason of the loss.
ii. Impossibility of Performance
a. In General
Article 1266, Civil Code. The debtor in obligations
to do shall also be released when the prestation
becomes legally or physically impossible without
the fault of the obligor.
Impossibility
at
Constitution
and
Subsequent Impossibility Distinguished
Impossibility at
the Time the
Obligation was
Constituted [Art.
1348, Civil Code]
Brings about
nullity
of
contract
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Impossibility which
Supervenes at the
Time of
Performance [Art.
1266, Civil Code]
the Brings
about
a
the modification
or
extinguishment of the
obligation, depending
on whether or not it is
imputable
to
the
debtor
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b. Types of Impossibility
1. Physical and Legal
Physical Impossibility: There is physical
impossibility when the act, by reason of its
nature, cannot be accomplished [Tolentino].
Legal Impossibility: Occurs where the
intended acts, even if completed, would not
amount to a crime. (Intod v. Court of Appeals,
G.R. No. 103119, [October 21, 1992], 289
PHIL 485-495) There is legal impossibility
when, the act, by subsequent law, is
prohibited [Tolentino].
2. Subjective and Objective
Objective Impossibility: There is objective
impossibility when the act or service in itself,
without considering the person of the obligor,
becomes impossible [Tolentino].
Subjective Impossibility: There is subjective
impossibility when the act or service cannot
be done by the debtor himself, but it can be
accomplished
by
others.
Failure
of
performance is imputable to the debtor. Thus,
the debtor must indemnify the creditor for the
damages suffered by the latter [Tolentino].
3. Partial Impossibility
The rule in Art. 1264, Civil Code, (partial loss)
may be applied. Thus, the Courts shall
determine whether it is so important as to
extinguish the obligation. If the debtor has
performed part of the obligation when
impossibility occurred, the creditor must pay
the part done as long as he benefits from it
[Tolentino].
iii. Unforeseen Difficulty
When the service has become so difficult as
to be manifestly beyond the contemplation
of all the parties, the obligor may also be
released therefrom, in whole or in part [Art.
1267, Civil Code].
CIVIL LAW
Requisites:
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 event must not be due to the act of
any of the parties; and
4. The contract is for a future prestation
[Tagaytay Realty Co, Inc. v. Gacutan,
G.R. No. 160033 (2015)].
Doctrine of Unforeseen Events
The parties to the contract must be presumed
to have assumed the risks of unfavorable
developments. It is therefore only in
absolutely
exceptional
changes
of
circumstances
that
equity
demands
assistance for the debtor [PNCC v. CA, G.R.
No. 116896 (1997)].
Fortuitous Events, Loss/Impossibility, and
Unforeseen Difficulty Distinguished
Fortuitous
Events
Loss/
Impossibilit
y
Could not
have been
foreseen or
foreseen
but
inevitable.
Perishes,
goes out of
commerce
or
disappears
Causes
loss of the
thing
or
obligation
could
not
be complied
with in the
normal
manner
Could not
have been
foreseen.
Service
has become
so
difficult but
not
impossible.
Fault
Without
fault
May be with Without Fault
or
without
fault
Effect
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Unforeseen
Difficulty
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Fortuitous
Events
Loss/
Impossibilit
y
Non-liability If
without
for
delay/ fault,
damages
extinguishes
the
obligation; If
with
fault,
liability
for
damages
Unforeseen
Difficulty
Release from
the obligation
in whole or in
part
C. Condonation or Remission of
Debt
i. Definition and General Rules
General Rules:
1. Condonation or remission is essentially
gratuitous, and
2. requires the acceptance by the obligor.
3. It may be made expressly or impliedly.
4. One and the other kinds shall be subject
to the rules which govern inofficious
donations. Express condonation shall,
furthermore, comply with the forms of
donation [Art. 1270, Civil Code].
Requisites [Tolentino]:
1. The debt must be existing and
demandable;
2. The renunciation must be gratuitous;
3. Parties must be capacitated and must
consent;
4. The debtor must accept the remission implied in mortis causa and express in
inter vivos condonation;
5. Formalities of a donation are required in
the case of an express remission or
condonation.
Effect: The
[Tolentino].
obligation
is
extinguished
CIVIL LAW
refers. [H. Villarica Pawnshop, Inc. v. SSS,
G.R. No. 228087 (2018)].
If 2nd Requisite is Not Met
If the renunciation is not gratuitous, the nature
of the act changes and it may become:
1. Dation in payment – when the creditor
receives a thing different from that
stipulated;
2. Novation – when the object or principal
conditions of the obligation have changed;
or
3. Compromise – when the matter
renounced is in litigation or dispute and in
exchange of some concession which the
creditor receives [Dizon v. CTA, G.R. No.
140944 ( 2008)]
ii. Kinds of Remission
As To Form
1. Express Express
remission
must
Remission comply with forms of ordinary
donations. An express remission
must be accepted in order to be
effective [Art. 1270, Civil Code].
When the debt refers to movable
or personal property, Art. 748 will
govern; if it refers to immovable
or real property, Art. 749 applies.
2. Implied It is inferred from the acts of the
Remission parties.
As To Extent
1. Total
Extinguishes the entire obligation
2. Partial
Refers to only a particular aspect
of the obligation, i.e. amount of
indebtedness or an accessory
obligation [Dizon v. CTA, supra
As to Manner
1. Inter
Effective during the lifetime of the
creditor
Vivos
Definition
Condonation or remission of debt is an act of
2. Mortis
Effective upon the death of the
liberality, by virtue of which, without receiving
creditor.
Causa
any equivalent, the creditor renounces the
enforcement of the obligation, which is
a. Express Remission
extinguished in its entirety or in that part or
aspect of the same to which the remission
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One and the other kind shall be subject to the
rules which govern inofficious donations.
Express condonation shall, furthermore,
comply with the forms of donation [Art. 1270
(2), Civil Code].
The law subjects express remission to the
same formalities as donations.
Express Remission of Movable or Personal
Property
The donation of a movable may be made
orally or in writing.
An oral donation requires the simultaneous
delivery of the thing or of the document
representing the right donated.
If the value of the personal property donated
exceeds five thousand pesos (Php5,000), the
donation and the acceptance shall be made in
writing. Otherwise, the donation shall be void
[Art. 748, Civil Code].
Express Remission of Immovable or Real
Property
In order that the donation of an immovable
property may be valid, it must be made in a
public document, specifying therein the
property donated and the value of the charges
which the donee must satisfy.
CIVIL LAW
Trigger:
1. Delivery of a private document evidencing
a credit; and
2. Delivery was made voluntarily by the
creditor to the debtor
Effect: There will be implied renunciation.
Exception: The contrary is proved.
Note: If in order to nullify this waiver it should
be claimed to be inofficious, the debtor and
his heirs may uphold it by proving that the
delivery of the document was made in virtue
of payment of the debt [Art. 1271(2), Civil
Code].
Presumption
of
Renunciation
Accessory Obligation
of
Accessory obligation of pledge has been
remitted when the thing after its delivery is
found in the possession of the debtor or third
person [Art. 1274, Civil Code].
Trigger:
1. A thing is pledged;
2. There has been a delivery of such thing to
the creditor; and
3. The thing pledged is found in the
possession of the debtor, or of a third
person who owns the thing.
The acceptance may be made in the same
deed of donation or in a separate public
document, but it shall not take effect unless it
is done during the lifetime of the donor.
Effect: It is presumed that the accessory
obligation of pledge has been remitted.
If the acceptance is made in a separate
instrument, the donor shall be notified thereof
in an authentic form, and this step shall be
noted in both instruments [Art. 749, Civil
Code].
Whenever the private document in which the
debt appears is found in the possession of the
debtor, it shall be presumed that the creditor
delivered it voluntarily, unless the contrary is
proved [Art. 1272, Civil Code].
b. Implied Remission
Trigger: The private document in which the
debt appears is found in the possession of the
debtor.
Presumption of Renunciation
The delivery of a private document evidencing
a credit, made voluntarily by the creditor to the
debtor, implies the renunciation of the action
which the former had against the latter [Art.
1271(1), Civil Code].
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Presumption of Delivery
Effect: There is a presumption that it has
been voluntarily delivered by the creditor.
Exception: The contrary is proved.
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c. Partial Remission
Article 1273, Civil Code. The renunciation of the
principal debt shall extinguish the accessory
obligations; but the waiver of the latter leaves the
former in force.
On Acceptance
1. 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, Civil Code].
2. Acceptance must be made during the
lifetime of the donor and of the donee
[Art. 746, Civil Code].
CIVIL LAW
obligations transferred, the credit that the
creditor had against the debtor. [Testate
Estate of Mota v. Serra, G.R. No. 22825,
(1925)].
2. Requisites
1. It should take place between principal
debtor and creditor;
2. The very same obligation must be
involved; and
3. The confusion must be total, i.e. as
regards the whole obligation [Valmonte v.
CA, G.R. No. L-41621 (1999)].
3. Effects
i. In general
On Amount
1. The donation may comprehend all the
present property of the donor, or part
thereof, provided he reserves, in full
ownership or in usufruct, sufficient
means for the support of himself, and of
all relatives who, at the time of the
acceptance of the donation, are by law
entitled to be supported by the donor.
Without such reservation, the donation
shall be reduced on petition of any
person affected [Art. 750, Civil Code].
2. The
provisions
of
Art.
750
notwithstanding, no person may give or
receive, by way of donation, more than
he may give or receive by will. The
donation shall be inofficious in all that it
may exceed this limitation [Art. 752, Civil
Code].
D. Confusion
1. Definition
When the characters of creditor and debtor
are merged in the same person [Art. 1275,
Civil Code].
The rights of creditor and debtor are not
merged in one same person by the fact that
the things pertaining to said creditor and
debtor which were the subject of the obligation
were transferred to him where said transfer
did not include, among the rights and
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The obligation is extinguished from the time
the characters of the debtor and creditor are
merged in the same person [Art. 1275, Civil
Code].
ii. Confusion among the Guarantors
A merger which takes place in the person of
the principal debtor or creditor benefits the
guarantors. Confusion which takes place in
the person of any of the latter does not
extinguish the obligation [Art. 1276, Civil
Code].
iii. In case
obligations
of
joint
or
solidary
Confusion in
Joint Obligation
Confusion in
Solidary
Obligation
Confusion DOES
NOT extinguish a
joint
obligation
EXCEPT
as
regards the share
of the person in
whom
the
two
characters concur
[Art. 1277, Civil
Code]
Extinguishes
the
entire obligation, but
the other debtors may
be
liable
for
reimbursement
if
payment was made
prior to remission.
Obligation is not extinguished when confusion
takes place in the person of a subsidiary
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debtor (i.e. guarantor), but merger in the
person of the principal debtor shall benefit the
former.
Note: Where, however, the mortgagee
acquires ownership of the entire mortgaged
property, the mortgage is extinguished; but
this does not necessarily mean the
extinguishment of the obligation secured
thereby, which may become an unsecured
obligation.
E. Compensation
Mode of extinguishing the obligations of two
persons, who in their own right, are reciprocal
creditors and debtors of each other [Art. 1278,
Civil Code].
1. Requisites
1. Each obligor is bound principally, and at
the same time a principal creditor of the
other;
2. Both debts must consist in a sum of
money, or if the things due are
consumable, they be of the same kind and
quality;
3. Both debts are due;
4. Debts are liquidated and demandable; and
5. There must be no retention or controversy
over either of the debts, commenced by
third persons and communicated in due
time to the debtor [Art. 1279, Civil Code].
Taxes cannot be subject to compensation for
the simple reason that the government and
the taxpayer are not creditors and debtors of
each other. [Philex Mining v. CIR, G.R.
No.125704, (1998)].
To warrant the application of set off under Art.
1278 of the Civil Code, the debtor’s
admission of his obligation must be clear
and categorical and not one which merely
arises by inference or implication from the
customary execution of official documents in
assuming the responsibilities of a predecessor
[Bangko Sentral v. COA, G.R. No. 168964
(2006)].
CIVIL LAW
i. General Rule
When all requisites mentioned in Art. 1279 are
present, compensation takes effect by
operation of law, and extinguishes both debts
to the concurrent amount, even though the
creditors and debtors are not aware of the
compensation [Art. 1290, Civil Code].
ii. By Operation of Law
Compensation takes place by operation of
law, even though the debts may be payable at
different places, but there shall be an
indemnity for expenses of exchange or
transportation to the place of payment [Art.
1286 Civil Code].
Compensation takes effect by operation of law
even without the consent or knowledge of
the parties concerned when all the
requisites mentioned in Art. 1279, Civil
Code are present [Trinidad v. Acapulco, G.R.
No. 147477 (2006)].
iii. Compensation Distinguished from
Other Modes of Extinguishment
Compensation
Must always have Involves only
two obligations.
obligation.
There
are
two
persons who are
mutually
debtors
and creditors of
each other in two
separate
obligations,
each
arising from the
same cause.
There is
payment.
2. Nature and Effects
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one
There is only one
person whom the
characters of the
creditor and debtor
meet.
indirect There
is
impossibility
payment.
Compensation
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Confusion
Payment
an
of
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CIVIL LAW
Capacity to dispose
and receive the
thing
is
unnecessary since
compensation
operates by law
Requires capacity to
dispose of the thing
paid and capacity to
receive
May be partial
Must
be
performance
Compensation
total
Counterclaim
Takes place by Must be pleaded to
operation of law
be effectual
3. Kinds of Compensation
i. As to extent
a. Total
When two debts are of the same amount. If
they are of different amounts, compensation is
total as regards the smaller debt, and partial
only with respect to the larger debt [Art. 1281,
Civil Code].
b. Voluntary Compensation
Takes place when parties who are mutually
creditors and debtors of each other agree to
compensate their respective obligations even
though one of the requisites of compensation
may be lacking.
The
parties
may
agree
upon
the
compensation of debts which are not yet due
[Art. 1282, Civil Code].
Requisites of conventional compensation
1. That each of the parties can dispose of
the credit he seeks to compensate, and
2. That they agree to the mutual
extinguishment of their credits [United
Planters v. CA, G.R. No. 126890 (2009)].
c. Judicial Compensation
b. Partial
When the two obligations are of different
amounts and a balance remains [Art. 1281,
Civil Code]
Takes place by judicial decree, needs
pleading and proof. All requirements must
concur except liquidation.
If one of the parties to a suit over an obligation
has a claim for damages against the other, the
former may set it off by proving his right to
said damages and the amount thereof [Art.
1283, Civil Code].
ii. As to cause
a. Legal Compensation
Takes place by operation of law from the
moment all requisites are present.
Since it takes place ipso jure, when used as a
defense, it retroacts to the date when all its
requisites are fulfilled.
When all the requisites mentioned in Art. 1279
of the Civil Code are present, compensation
takes effect by operation of law, and
extinguishes both debts to the concurrent
amount, even though the creditors and
debtors are not aware of the compensation
[Art. 1290, Civil Code].
024608CIV
Legal compensation may apply to:
1. Awards of attorney’s fees, against the
litigant and not his lawyer [Gan Tion v.
CA, G.R. No. L-22490 (1969)]
2. Bank deposits, against the accounts of a
depositor whose checks were dishonored
[BPI v. CA, G.R. No. 116792 (1996)]
“Judicial
Compensation”
NOT
Contemplated by the Civil Code
In reality, what is set off against the other
party is a counterclaim as provided in the
Rules of Court. A counterclaim must be
pleaded to be effectual; whereas, a
compensation takes place by mere operation
of law and extinguishes the two debts as soon
as they exist simultaneously, to the amount of
their
respective
sums.
Hence,
the
counterclaim defined by the Rules of Court is
not the legal compensation contemplated by
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the Code [Yap Unki v. Chua Jamco, G.R. No.
5202 (1909)]
d. Facultative Compensation
CIVIL LAW
Without
debtor’s
knowledge
When it can be claimed by one of the parties
who, however, has the right to object to it.
This kind of compensation can only be set up
at the option of a creditor, when legal
compensation cannot take place because
some legal requisites in favor of the creditor
are lacking.
Obligations which cannot be compensated
1. Contracts of depositum
2. Contracts of commodatum
3. Future support due by gratuitous title
4. Civil liability arising from a penal offense
5. Obligations due to the government
6. Damage caused to the partnership by a
partner [Arts. 1287-1288, Civil Code]
Note: The indebtedness of a shareholder to a
banking corporation cannot be compensated
with the amount of his shares therein, there
being no relation of creditor and debtor with
respect to such shares. [Garcia v. Lim Chu
Sing, G.R. No. L-39427 (1934)]
Right of a Guarantor
A guarantor may set up compensation as
regards what the creditor may owe the
principal debtor [Art. 1280, Civil Code].
Effect of Assignment of Rights by the
Creditor to a Third Person [Art. 1285, Civil
Code]
With debtor’s Debtor cannot set up
against
assignee
consent
compensation pertaining to
him
against
assignor
UNLESS he reserved such
right at the time he gave
his consent
With debtor’s
knowledge but
without
consent
024609CIV
Debtor
may
set
up
compensation of debts
previous to the assignment
but not of subsequent
ones
Debtor
may
set
up
compensation of all credits
prior and also later to the
assignment until he had
knowledge
of
the
assignment
Order of Compensation
If a person should have against him several
debts which are susceptible of compensation,
the rules on application of payments shall
apply to the order of the compensation [Art.
1289, Civil Code].
F. Novation
1. In General
It is the substitution or change of an obligation
by another resulting in its extinguishment or
modification by:
1. Changing their object or principal
conditions;
2. Substituting the person of the debtor; or
3. Subrogating a third person in the rights of
the creditor [Art. 1291, Civil Code].
Unlike other modes of extinguishment, it is a
juridical act of dual function—it extinguishes
an obligation, and at the same time, it creates
a new one in lieu of the old. It operates as a
relative, not an absolute, extinction.
This is not to say however, that in every case
of novation the old obligation is necessarily
extinguished. Our Civil Code now admits of
the so-called imperfect or modificatory
novation where the original obligation is
not extinguished but modified or changed
in some of the principal conditions of the
obligation. Thus, Art. 1291 of the Civil Code
provides that obligations may be modified
[Modomo v. Sps. Layug, G.R. No. 197722
(2019)].
i. Requisites:
1. A previous valid obligation
2. Agreement of all the parties to the new
obligation
3. Animus novandi or intent to novate
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CIVIL LAW
4. Substantial difference between old and
new obligations and, consequently,
extinguishment of the old obligation
5. Validity of the new obligation [Tomimbang
v. Tomimbang, G.R. No. 165116 (2009)]
ii. Effects
In General
If Original
Obligation
is Void
If New
Obligation
is Void
Old obligation is extinguished Novation is void if the original
and replaced by the new one obligation was void, EXCEPT
stipulated.
when annulment may be
claimed only by the debtor, or
when ratification validates acts
that are voidable [Art. 1298,
Civil Code]
Original obligation is
void: No novation.
2. Original obligation
voidable: Effective if the
contract is ratified before
novation.
1.
Accessory Obligations
Accessory obligations are also extinguished,
but may subsist only insofar as they may
benefit third persons who did not give their
consent to the novation [Art. 1296, Civil
Code].
Accidental Modifications
The extension or shortening of the period for
the performance of the obligation is generally
considered as merely accidental and does not
bring about a novation [Tolentino].
Original or new obligation with suspensive
or resolutory condition
If the original obligation was subject to a
suspensive or resolutory condition, the new
obligation shall be under the same condition,
unless it is otherwise stipulated [Art. 1299,
Civil Code].
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New obligation is void, the old
obligation subsists, UNLESS the
parties intended that the former
relations shall be extinguished in
any event [Art. 1297, Civil Code]
New Obligation void: No
novation.
2. New obligation voidable:
Novation is effective.
1.
Compatible
Conditions
Incompatible
Conditions
1. Fulfillment
of
both conditions:
new obligation
becomes
demandable.
2. Fulfillment
of
condition
concerning the
original
obligation:
old
obligation
is
revived;
new
obligation loses
force.
3. Fulfillment
of
condition
concerning the
new obligation:
no
novation;
requisite of a
previous
valid
and
effective
obligation
lacking.
1. Original
obligation
is
extinguished,
while
new
obligation
exists.
2. Demandability
shall be subject
to
fulfillment/
nonfulfillment of
the
condition
affecting it.
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2. Kinds of Novation
i. As to Form
a. Express
Novation must be explicitly stated and
declared in unequivocal terms that their object
in executing the new contract is to extinguish
the old one. [Fortune Motors (Phils.) Corp. v.
CA, G.R. No. 112191 (1997); Quinto v.
People, G.R. No. 126712 (1999)]
Novation is Never Presumed
In the absence of an unequivocal declaration
of extinguishment of the pre-existing
obligation, only proof of incompatibility
between the old and new obligation would
warrant a novation by implication [California
Bus Line v. State Investment, G.R. No.
147950 (2003)].
b. Implied
CIVIL LAW
Novation must be established either by the
express terms of the new agreement or by the
acts of the parties clearly demonstrating the
intent to dissolve the old obligation as a
consideration for the emergence of the new
one. [Fortune Motors (Phils.) Corp. v. CA,
supra]
ii. As to extent or effect [Tomimbang v.
Tomimbang, G.R. No. 165116 (2009)]
1. Total: when the obligation is completely
extinguished.
2. Partial: When there is only a
modification or change in some principal
conditions of the obligation.
The will to novate, whether totally or partially,
must appear by express agreement of the
parties, or by their acts which are too clear
and unequivocal to be mistaken. [Fortune
Motors (Phils.) Corp. v. CA, supra]
iii. As to Essence or Object
The old and new obligations must be
incompatible on every point. [Fortune Motors
(Phils.) Corp. v. CA supra]
No specific form is required for an implied
novation. All that is prescribed by law would
be an incompatibility between the two
contracts. [Quinto v. People, G.R. No. 126712
(1999)]
Test of Incompatibility
The test of incompatibility is whether the two
obligations can stand together, each one
having its independent existence. If they
cannot, they are incompatible and the latter
obligation novates the first. [Nyco Sales
Corporation vs. BA Finance Corporation, G.R.
No. 71694(1991)].
a. Objective/Real
When the object (or cause) or principal
conditions of the obligation are changed [Art.
1291(1), Civil Code]
b. Subjective/Personal
Substitution of debtor or by subrogation [Art.
1291(2 & 3), Civil Code]
c. Mixed
Change in the object or principal condition and
change in the persons of either creditor and
debtor of an existing obligation [Art. 1291,
Civil Code].
The incompatibility must take place in any of
the essential elements of the obligation, such
as its object, cause or principal conditions
thereof; otherwise, the change would be
merely modificatory in nature and insufficient
to extinguish the original obligation [Quinto v.
People, supra].
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Objective/Real
Subjective/
Personal
Change of the 1. Substitution
of
subject matter;
debtors
2. Change of cause
a. Expromision
or consideration;
b. Delegacion
or
3. Change of the 2. Subrogation of a
principal
third person to
conditions
or
the rights of the
terms
creditor
a. Conventional
b. Legal
1.
3. Substitution of Debtors
Expromision
Delegacion
Initiative for change
does not emanate
from the debtor, and
may even be made
without
his
knowledge.
Debtor (delegante)
offers or initiates the
change, and the
creditor (delegatorio)
accepts
a
third
person (delegado)
as consenting to the
substitution.
Requisites
1.
2.
Consent of the Consent of
debtor
creditor and the 1. old
(delegante);
new debtor;
2. new
debtor
(delegatario);
Note:
Implied
and
consent by the
creditor
is 3. Creditor
(delegado).
allowed
[Asia
Banking Corp. v.
Elser, G.R. No.
L-30266 (1929)]
Knowledge
or
consent of the
old debtor is not
required.
Effects
Old debtor is 1. Insolvency of the
released
new
debtor
2. Insolvency of the
revives
the
1.
024612CIV
CIVIL LAW
Expromision
Delegacion
new debtor does
obligation of the
not revive the old
old debtor if it
obligation
in
was anterior and
case the old
public,
and
debtor did not
known to the old
agree
to
debtor.
2. New debtor can
expromision.
3. If
with
the
demand
knowledge and
reimbursement
consent of the
of the entire
old debtor, the
amount he has
new debtor can
paid from the
demand
original debtor.
reimbursement
He may compel
of the entire
the creditor to
amount paid and
subrogate him to
with subrogation
all of his rights.
of
creditor’s
rights.
4. If
without
knowledge of the
old debtor, the
new debtor can
demand
reimbursement
only up to the
extent that the
latter has been
benefited without
subrogation
of
creditor’s rights.
For subjective novation, it is insufficient
that the juridical relation between the
parties to the original contract is extended
to a third person. If the old debtor is not
released, no novation occurs and the third
person who has assumed the debtor’s
obligation becomes merely a co-debtor or
surety or co-surety [Cochingyan, Jr. v. R&B
Surety and Insurance Company, G.R. No. L47369 (1987)].
An accessory surety may not be released if
he expressly waives his discharge from the
obligation in case of change or novation in the
original agreement [Molino v. Security Diners
International Corp, G.R. No. 136780 (2001)].
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4. Subrogation
Transfers to the person subrogated the credit
with all the rights thereto appertaining, either
against the debtor or against third persons, be
they guarantors or possessors of mortgages,
subject to stipulation in a conventional
subrogation [Art. 1303, Civil Code].
Effects
Total
Partial
Transfers
to
the
person
subrogated,
the credit with all the
rights
thereto
appertaining,
either
against the debtor or
third persons.
A creditor, to whom
partial payment has been
made, may exercise his
right for the remainder,
and shall be preferred to
the person subrogated in
his place in virtue of the
partial payment.
Conventional Subrogation – takes place by
agreement of parties
Difference
between
Conventional
Subrogation and Assignment of Credit
[Licaros v. Gatmaitan, G.R. No. 142838
(2001)]
Conventional
subrogation
Assignment of
credit
Debtor’s consent is Debtor’s consent is
necessary.
not required.
Extinguishes
an Refers to the same
obligation
and right which passes
gives rise to a new from one person to
one.
another,
without
modifying
or
extinguishing
the
obligation.
Defects/vices in the Defects/vices in the
old obligation are old obligation are not
cured.
cured.
Legal Subrogation
Takes place by operation of law.
Legal subrogation is not presumed, except
in the following circumstances:
024613CIV
CIVIL LAW
1. When creditor pays another creditor who
is preferred, even without the debtor’s
knowledge
2. When a third person, not interested in the
obligation, pays with the express or tacit
approval of the debtor
3. When, even without the knowledge of the
debtor, a person interested in the
fulfillment of the obligation pays, without
prejudice to the effects of confusion as to
the latter’s share [Art. 1302, Civil Code]
Art. 1303 of the Civil Code particularly
provides that the effect of legal subrogation is
to transfer to the new creditor the credit and
all the rights and actions that could have been
exercised by the former creditor either against
the debtor or against third persons [BDO
Unibank v. Pua, G.R. No. 230923 (2019)].
CONTRACTS
I. GENERAL PROVISIONS
A. Definition
Article 1305, Civil Code. A contract is a meeting
of minds between two persons whereby one binds
himself, with respect to the other, to give something
or to render some service.
B. Elements of a Contract
Article 1318, Civil Code. There is no contract
unless the following requisites concur:
a. Consent of the contracting parties;
b. Object certain which is the subject matter of the
contract;
c. Cause of the obligation which is established.
For a contract to be valid, it must have three
essential elements:
1. consent of the contracting parties;
2. object certain which is the subject
matter of the contract; and
3. cause of the obligation which is
established [Sps. Lequin v. Sps.
Vizconde, G.R. No. 177710, (2009)].
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CIVIL LAW
II. BASIC PRINCIPLES OF
CONTRACTS
2. When there has been a judicial separation
of property under Art. 191, Civil
Code [Art. 1490, Civil Code]
A. Obligatory force between the
Parties
The following persons cannot acquire by
purchase, even at a public or judicial auction,
either in person or through the mediation of
another:
1. Guardian – the property of the person or
persons who may be under his
guardianship
2. Agents
–
the
property
whose
administration or sale may have been
intrusted to them, unless the consent of
the principal has been given
3. Executors and administrators – the
property
of
the
estate
under
administration
4. Public officers and employees – the
property of the State or of any
subdivision thereof, or of any
government-owned
or
controlled
corporation,
or
institution,
the
administration of which has been
intrusted to them
Article 1159, Civil Code. Obligations arising from
contracts have the force of law between the
contracting parties and should be complied with in
good faith.
Article 1308, Civil Code. The contract must bind
both contracting parties; its validity or compliance
cannot be left to the will of one of them.
1. General
Contract
Rule:
Freedom
to
The contracting parties may establish
stipulations, clauses, terms and conditions as
they may deem convenient as long as such
are not contrary to law, morals, good customs,
public order, or public policy. [Art. 1306, Civil
Code].
2. Exceptions
a. When it is inequitable [Art. 1310]
The Courts shall decide what is inequitable in
circumstances where the determination of the
performance is evidently inequitable.
b. Special Disqualifications
Every donation or grant of gratuitous
advantage, direct or indirect, between the
spouses during the marriage shall be void,
except moderate gifts which the spouses may
give each other on the occasion of any family
rejoicing. The prohibition shall also apply to
persons living together as husband and wife
without a valid marriage [Art. 87, Family
Code].
Husbands and wives cannot sell property to
each other except:
1. When there has been a marriage
settlement and a separation of property
was agreed upon
024614CIV
Note: The prohibition shall also apply
to judges and government experts
who, in any manner whatsoever, take
part in the sale.
5. Justices,
judges,
prosecuting
attorneys, clerks of superior and
inferior courts, and other officers and
employees
connected
with
the
administration of justice – the property
and rights in litigation or levied upon an
execution before the court within
whose jurisdiction or territory they
exercise their respective functions
Note: This prohibition includes the act
of acquiring by assignment and shall
apply to lawyers, with respect to the
property and rights which may be the
object of any litigation in which they
may take part by virtue of their
profession.
6. Any others specially disqualified by law
[Art. 1491, Civil Code].
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Persons who are prohibited from giving
each other any donation or advantage
cannot enter into universal partnership
[Art. 1782, Civil Code].
c. What may not be stipulated
Those contrary to law
1. Pactum commisorium - The creditor
cannot appropriate the things given by
way of pledge or mortgage, or dispose of
them. Any stipulation to the contrary is null
and void [Art. 2088, Civil Code]
2. Pactum leonina - A stipulation excluding
one or more partners from any share in
the profits or losses is void [Art. 1799, Civil
Code]
3. Pactum de non alienado - A stipulation
forbidding the owner from alienating the
immovable mortgaged property is void.
[Art. 2130, Civil Code]
4. Other limitations: Labor Code, Corporation
Code
CIVIL LAW
escalation clause shall be void [Floirendo, Jr.
v. Metropolitan Bank & Trust Co., G.R. No.
148325 (2007)].
However, the escalation clause may still be
valid if the creditor has anyway notified the
debtor in order to give the latter the option to
reject the repricing, or if the repricing of the
interest rates resulted in a decrease and not
an increase of rates [Villa Crista Monte Realty
& Dev’t Corp. v. Equitable PCI Bank, G.R. No.
208336 (2018)].
3. Relativity
a. General Rule
Article 1311, Civil Code. Contracts take effect only
between the parties, their assigns and heirs, except in
case where the rights and obligations arising from the
contract are not transmissible by their nature, or by
stipulation or by provision of law. The heir is not liable
beyond the value of the property he received from the
decedent. x x x
Those contrary to morals, good customs,
public order, and public policy.
b. Exceptions
2. Mutuality
i. Contracts creating real rights
a. General Rule
Article 1308, Civil Code. The contracts must bind
both contracting parties; its validity or compliance
cannot be left to the will of one of them.
Article 1312, Civil Code. In contracts creating real
rights, third persons who come into possession of the
object of the contract are bound thereby, subject to
the provisions of the Mortgage Law and the Land
Registration Laws.
b. Exception
ii. Contracts in fraud of creditors
A contract shall be valid even though its
fulfillment or implementation is left to the will
of either party as long as there is a finding of
the presence of essential equality of the
parties, which thus prevents the perpetration
of injustice on the weaker party [GF Equity v.
Valenzona, G.R. No. 156841 (2005)].
Article 1313, Civil Code. Creditors are protected in
cases of contracts intended to defraud them.
Example: Escalation clause
A bank’s unilateral determination and
imposition of the monthly adjustment of
interest rates without the other party’s assent,
in the event of changes in the rates prescribed
by law or the Bangko Sentral ng Pilipinas,
violates the principles of mutuality. Such
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4. Stipulations in favor of a third
person (stipulation pour autrui)
Requisites [Art. 1311 (2), Civil Code]:
1. The contract should contain some
stipulation in favor of a third person;
2. The third person communicated his
acceptance to the obligor before its
revocation;
3. The stipulation is not a mere or incidental
benefit or interest; and
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4. The contracting parties clearly and
deliberately conferred a favor upon a third
person.
Note: A mere incidental benefit or interest of a
person is not sufficient.
Rule: The third person may demand its
fulfillment [Art. 1311 (2), Civil Code].
5. Freedom to Stipulate (Autonomy of
the Will) and its Limitations
The contracting parties may establish
stipulations, clauses, terms and conditions as
they may deem convenient as long as such
are not contrary to law, morals, good customs,
public order, or public policy [Art. 1306, Civil
Code].
CIVIL LAW
7. Privity of Contract
Article 1311, Civil Code. Contracts take effect only
between the parties, their assigns and heirs, except in
case where the rights and obligations arising from the
contract are not transmissible by their nature, or by
stipulation or by provision of law. The heir is not liable
beyond the value of the property he received from the
decedent.
If a contract should contain some stipulation in favor
of a third person, he may demand its fulfillment
provided he communicated his acceptance to the
obligor before its revocation. A mere incidental benefit
or interest of a person is not sufficient. The
contracting parties must have clearly and deliberately
conferred a favor upon a third person.
a. Concept: Contracts take effect only
between the parties, their assigns and
heirs
6. Binding Effect of a Contract
The binding force of a contract is not limited to
what is expressly stipulated, but extends to all
consequences which are the natural effect of
the contract, considering its true purpose, the
stipulations it contains, and the object involved
[Art. 1315, Civil Code].
Form is generally not necessary for the
binding force of a contract, a meeting of the
minds being sufficient [Director of the Bureau
of Commerce v. Rodriguez, G.R. No. 48197
(1942)].
The binding force of a contract must be
recognized as far as it is legally possible to do
so (quando res non valet ut ago, valeat
quantum valere potest)||| [Heirs of Caburnay
v. Heirs of Sison, G.R. No. 230934 (2020)].
Contracts are not what the parties choose to
call them, but what they really are as
determined by the principles of laws [Baluran
v. Navarro, G.R. No. L-44428 (1977); GloriaDiaz v. CA, G.R. No. L-48198 (1978)].
The validity of the stipulations is one thing,
and the juridical qualification of the contract
resulting therefrom is very distinctly another
[Aquino v. Deala, G.R. No. L-43304 (1936)].
024616CIV
Contracts can only bind the parties who
entered into it, and cannot favor or prejudice a
third person, even if he is aware of such
contract and has acted with knowledge
thereof “Where there is no privity of contract,
there is likewise no obligation or liability to
speak about.” [Philippine National Bank v.
Teresita Tan Dee, et al., G.R. No. 182128,
(2014)].
b. No one may contract in the name of
another
Unless one has been authorized by the latter,
or unless he or she has by law a right to
represent him, he or she cannot contract in
the name of another. [Art. 1317]
c. Stipulations
persons
in
favor
of
third
See discussion above on Stipulation pour
autrui.
8. Consensuality of Contracts
Article 1305, Civil Code. A contract is a meeting of
minds between two persons whereby one binds
himself, with respect to the other, to give something or
to render some service.
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Article 1315, Civil Code. Contracts are perfected by
mere consent, and from that moment the parties are
bound not only to the fulfillment of what has been
expressly stipulated but also to all the consequences
which, according to their nature, may be in keeping
with good faith, usage, and law.
a. Concept and Coverage
The principle of consensuality provides that
contracts are generally perfected by mere
consent.
CIVIL LAW
Limitation of the Parol Evidence Rule
The right of reformation is necessarily an
invasion or limitation of the parol evidence
rule since, when a writing is reformed, the
result is that an oral agreement is by court
decree made legally effective. Consequently,
the courts, as the agencies authorized by law
to exercise the power to reform an instrument,
must necessarily exercise that power
sparingly and with great caution and zealous
care [Rosello-Bentir v. Leanda, supra].
ii. Requisites [Art. 1359, Civil Code]
It is not possible to cross out the
indispensable element of consensuality in the
perfection of contracts. [Asuncion v. CA, G.R.
No. 109125 (1994)]
Without mutual consent on the object and on
the cause, a contract cannot exist [Art. 1305,
Civil Code]; corollary to it, no one can be
forced, least of all perhaps by a court, into a
contract against his will or compelled to
perform
thereunder.|||[Equatorial
Realty
Development, Inc. v. Mayfair Theater, Inc.,
G.R. No. 106063 (1996)]
b. Exceptions
Real contracts, such as deposit, pledge, and
commodatum are not perfected until the
delivery of the object of the obligation [Art.
1316, Civil Code]
c. Reformation of Instruments
i. In general
Reformation - remedy in equity by means of
which a written instrument is made or
construed so as to express or conform to the
real intention of the parties when some error
or mistake has been committed [RoselloBentir v. Leanda, G.R. No. 128991, (2000)].
Rationale: It would be unjust and inequitable
to allow enforcement of a written instrument
which does not reflect or disclose the real
meeting of the minds of the parties. However,
an action for reformation must be brought
within the period prescribed by law,
otherwise, it will be barred by the mere lapse
of time [Rosello-Bentir v. Leanda, supra].
024617CIV
1. There must be a meeting of the minds of
the contracting parties
2. Their true intention is not expressed in
the instrument;
3. Such failure to express their true intention
is due to mistake, fraud, inequitable
conduct, or accident.
The appellant’s complaint states no cause of
action, for it fails to allege that the instrument
to be reformed does not express the real
agreement or intention of the parties. Such an
allegation is essential since the object
sought in an action for reformation is to
make an instrument conform to the real
agreement or intention of the parties.
Moreover, courts do not reform instruments
merely for the sake of reforming them, but
only to enable some party to assert right
under them as reformed [Garcia v. Bisaya,
G.R. No. L-8060 (1955)].
Note: If mistake, fraud, inequitable conduct, or
accident has prevented a meeting of the
minds of the parties, the proper remedy is not
reformation of the instrument but annulment of
the contract [Art. 1359 (2), Civil Code].
The action for reformation of instrument
should not be confused with the action for
annulment of contract [Veluz v. Veluz, G.R.
No. L-23261 (1968)].
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Reformation vs. Annulment [Veluz v. Veluz,
supra]
Reformation of
Instrument
Annulment
Presupposes a valid,
existing contract, in
which there had
been a meeting of
the minds of the
parties,
but
the
instrument drawn up
and signed by them
does not correctly
express the terms of
their agreement.
Presupposes
a
defective contract in
which the minds of
the parties did not
meet, or the consent
of one was vitiated.
Equity of reformation
is ordinarily limited
to
written
agreements, and its
purpose
is
to
establish
and
perpetuate the true
agreement.
Intended to declare
the
inefficiency
which the contract
already carries in
itself and to render
the
contract
inefficacious.
CIVIL LAW
v. Cases Where Reformation is Proper
1. Mistake
The mistake should be of fact generally,
and not of law [BPI v. Fidelity and Surety
Co., G.R. No. L-26743 (1927)].
Mutual
Mutual mistake of parties that causes
failure to disclose real agreement [Art.
1361, Civil Code].
Unilateral
a. One party was mistaken, while the
other acted fraudulently [Art. 1362,
Civil Code]; or
b. One party was mistaken, while the
other knew or believed that the
instrument did not state their real
agreement, but concealed it from the
former [Art. 1363, Civil Code].
Note: In (b), only the mistaken party
may ask for reformation.
2. Fraud
iii. Burden of Proof
The presumption is that an instrument sets out
the true agreement of the parties and that it
was executed for valuable consideration.
Thus, when there is some error or mistake in
the contract, the onus probandi is upon the
party who insists that the contract should be
reformed.
While intentions involve a state of mind,
subsequent and contemporaneous acts of the
parties as well as the evidentiary facts as
proved and admitted can be reflective of one’s
intention [Multi-Ventures Capital Management
Corporation v. Stalwart Management, G.R.
No. 157439 (2007)].
iv. Effect of Reformation
Active
If one party was mistaken and the other
acted fraudulently in such a way that the
instrument does not show their true
intention [Art. 1362, Civil Code]
Passive
When one party was mistaken and the
other knew or believed that the instrument
did not state their real agreement [Art.
1363, Civil Code]
3. Inequitable Conduct
If one party was mistaken and the other
acted fraudulently or inequitably in such a
way that the instrument does not show
their true intention [Art. 1362, Civil Code]
4. Accident
When, through the ignorance, lack of skill,
In granting reformation, the remedy in equity
negligence, or bad faith on the part of the
is not making a new contract for the parties,
person drafting the instrument or of the
but establishing and perpetuating the real
clerk or typist, the instrument does not
contract between the parties which, under the
express the true intention of the parties
technical rules of law, could not be enforced
[Art. 1364, Civil Code]
but for such reformation [Quiros v. Arjona,
G.R. No. 158901 (2004)].
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No fraud exists in the sense that neither of
the parties took part therein.
CIVIL LAW
Trigger
successors
in
interest [Art. 1368,
Civil Code]
5. Severe Pacto de Retro / Relative
Simulation
If two parties agree upon the mortgage or
pledge of real or personal property, but the
instrument states that the property is sold
absolutely or with a right of repurchase,
reformation is proper [Art 1365, Civil Code].
f. Cases Where Reformation is Not
Proper
1. Wills
There can be no reformation before the
testator dies because the making of a will
is strictly personal [Art. 784, Civil Code], a
free act [Art. 839, Civil Code], and
essentially revocable [Art. 828, Civil
Code].
2. When the real agreement is void, there
is nothing to reform.
Rule
If the mistake was Reformation may be
not mutual
ordered
upon
petition of the injured
party, or his heirs
and assigns [Art.
1368, Civil Code]
When through the
ignorance, lack of
skill, negligence or
bad faith on the part
of
the
person
drafting
the
instrument or of the
clerk or typist, the
instrument does not
express the true
intention
of
the
parties
The courts may
order
that
the
instrument
be
reformed [Art. 1364,
Civil Code]
3. Implied Ratification / Estoppel
The party who has brought an action to
enforce
the
instrument
cannot
subsequently ask for its reformation [Art.
1367, Civil Code].
III. ESSENTIAL REQUISITES
4. Simple donations inter vivos —
wherein no condition is imposed
Donation is an act of liberality [Art. 725,
Civil Code] and cannot be compelled.
a. Consent of the contracting parties;
b. Object certain which is the subject matter of the
contract;
c. Cause of the obligation which is established.
g. Prescriptive Period for Reformation
Article 1318, Civil Code. There is no contract unless
the following requisites concur:
A. Consent
The prescriptive period for actions based upon
a written contract and for reformation of an
instrument is ten (10) years under Art. 1144,
Civil Code [Rosello-Bentir v. Leanda, supra].
1. Definition
h. Who May Ask for Reformation
The fact that the signatures of the witnesses
and the notary public were forged does not
negate the existence of the contract, as
long as the parties consented to it. The
signatures of the witnesses and the notary
public are necessary simply to make the
contract binding on the third person [Soriano
v. Soriano, G.R. No. 130348 (2007)].
Trigger
Rule
If the mistake was Reformation may be
mutual
ordered
at
the
instance of either
party
or
his
024619CIV
The meeting of the minds of the parties on
the subject matter and cause of the contract.
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CIVIL LAW
2. Requisites for Valid Consent
1. It must be manifested by the concurrence
of the offer and acceptance [Arts. 13191326, Civil Code].
2. The contracting parties must possess the
necessary legal capacity [Arts. 13271329, Civil Code].
3. It must be intelligent, free, spontaneous,
and real (not vitiated) [Arts. 1330-1346,
Civil Code].
3. Concurrence
Acceptance
of
Offer
and
A contract is perfected by mere consent. From
the moment of a meeting of the offer and
the acceptance upon the object and the
cause that would constitute the contract,
consent arises. However, the offer must be
certain and the acceptance seasonable and
absolute; if qualified, the acceptance would
merely constitute a counteroffer [Insular Life v.
Asset Builders Corp., G.R. No. 147410
(2004)].
i. Offer
A unilateral proposition which one party
makes to the other for the celebration of the
contract. [Spouses Paderes v. CA, G.R. Nos.
147074 and 147075 (2005)]
Requisites for a Valid Offer: There is an
"offer" in the context of Art. 1319 only if the
contract can come into existence by the mere
acceptance of the offeree, without any further
act on the part of the offeror. Hence, the
"offer" must be definite, complete and
intentional. [Spouses Paderes v. CA, supra]
Invitation to Make Offers (Advertisements)
1. Business Advertisements of things for
sale are NOT definite offers, but just
invitations to make an offer, UNLESS the
contrary appears [Art. 1325, Civil Code].
2. Advertisements
for
bidders
are
invitations to make proposals, the
advertiser is NOT bound to accept the
lowest or highest bid; UNLESS the
contrary appears. The bidder is the offeror
[Art. 1326, Civil Code].
024620CIV
The Terms and Conditions of the bidding
disseminated constitutes the advertisement to
bid on the project. The bid proposals or
quotations submitted by the prospective
suppliers are the offers. The reply constitutes
the acceptance or rejection of the respective
offers [Jardine Davies Inc. v. CA, G.R. No.
128066 (2000)].
3. Statements of intention: no contract
results even if accepted.
In a letter informing another that the sender
was “in a position and is willing to entertain”
the purchase of a yacht under some terms,
the word “entertain” applied to an act does not
mean the resolution to perform said act, but
simply a position to deliberate for deciding to
perform or not to perform said act. It was
merely a position to deliberate whether or not
he would purchase the yacht and invitation to
a proposal being made to him, which might be
accepted by him or not [Rosenstock v. Burke,
G.R. No. 20732 (1924)].
Temporary Suspension of Offer
When a contract is suspended temporarily, it
provisionally ceases to be operative until
the occurrence of a condition or situation that
warrants the lifting of the suspension of the
contract. It is different from a cancellation of
a contract which terminates the contract such
that it does not become operative again
[Metro Rail Transit Development Corporation
v. Gammon Philippines, Inc., G.R. No. 200401
(2018)].
Termination of Offer
1. Rejection by the offeree
2. Incapacity (death, civil interdiction,
insanity, or insolvency) of the offeror or
offeree before acceptance is conveyed
[Art. 1323, Civil Code]
3. Submission of a counter-offer
4. Lapse of the time stated in the offer
without acceptance being conveyed
5. Revocation of the offer before learning of
acceptance
6. Supervening illegality before acceptance
[Reyes and Puno].
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ii. Acceptance
Acceptance must be absolute, unconditional,
and without variance of any sort from the
offer. It must also be made known to the
offeror. An acceptance not made in the
manner prescribed is not effective but
constitutes a counter-offer.
Requisites of Acceptance:
1. Unqualified and unconditional, i.e. it
must conform with all the terms of the
offer [Art. 1319, Civil Code].
2. Directed and communicated to the
offeror and learned by him [Art. 1319,
Civil Code]. If made through an agent, the
offer is accepted from the time the
acceptance is communicated to such
agent [Art. 1322, Civil Code].
3. Made within the proper time
4. May be express/implied, but is not
presumed [Art 1320, Civil Code]. Time,
place and manner of acceptance may be
fixed by offeror [Art 1321, Civil Code].
Cognition Theory
Acceptance made by letter or telegram does
not bind the offeror except from the time it
came to his knowledge. The contract, in such
a case, is presumed to have been entered into
in the place where the offer was made [Art.
1319 (2), Civil Code].
Option Contract
A preparatory contract in which one party
grants to the other, for a fixed period, the
option to decide whether or not to enter into a
principal contract [Art. 1324, Civil Code].
With
consideration
Without
consideration
Offeror
cannot Offeror may withdraw
unilaterally
by
communicating
withdraw his offer. withdrawal to the
offeree
before
acceptance.
General Rule: When the offerer gives to the
offeree a certain period to accept, the offer
may be withdrawn at any time before
acceptance, [Art. 1324, Civil Code].
024621CIV
CIVIL LAW
Exception: For "a promise to buy and sell"
specifically [Art. 1479, Civil Code], a promise
to sell to be valid and binding must be
supported by a consideration distinct from the
price. Otherwise, the option can still be
withdrawn, even if accepted [Tuazon v. Del
Rosario-Suarez, G.R. No. 168325 (2010)].
4. Necessary Legal Capacity
Two types of void contracts:
1. Those where one of the essential
requisites of a valid contract as provided
for by Art. 1318, Civil Code is totally
wanting; and
2. Those declared to be so under Art. 1409,
Civil Code.
By contrast, a voidable or annullable contract
is one in which the essential requisites for
validity under Art. 1318 are present, but
vitiated by mistake, violence, intimidation,
undue influence, or fraud [Art. 1330, Civil
Code].
Persons incapacitated to give consent
[Art. 1327, Civil Code]
1. Minors, except:
a. Where necessaries are sold or
delivered [Art. 1489, Civil Code]
b. Where
the
minor
actively
misrepresents his age (estoppel)
[Mercado v. Espiritu, G.R. No. L-11872
(1917)]
Note: There is no estoppel if the
minority was known by the other
party, and there was no active
misrepresentation on the part of the
minors [Bambalan v. Maramba, G.R.
No. L-27710 (1928)].
c. When it involves a natural obligation
and such obligation is fulfilled
voluntarily by the minor [Arts. 14251427, Civil Code]
d. Contracts entered into by guardians
or legal representatives
e. When upon reaching the age of
majority they ratify the same
f. When a minor opens a savings
account without the assistance of his
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parents, provided that the minor is at
least seven (7) years old and can read
and write [PD 734].
2. Insane or demented persons, unless they
contract during a lucid interval [Art. 1328,
Civil Code]
3. Deaf-mutes who do not know how to read
AND write.
Persons Disqualified to Contract
1. Those
under
civil
interdiction
for
transactions inter vivos [Art. 34, RPC]
2. Undischarged
insolvents
[Sec.
24,
Insolvency Law]
3. Husband and wife cannot donate to each
other [Art. 87, Family Code], nor sell to
each other if the marriage is under the
regime of Absolute Community of Property
[Art. 1490, Civil Code]
4. The ff. cannot purchase, whether in public
or private sale [Art. 1491, Civil Code]:
a. Guardian - Property of the ward
b. Agent - Property of the Principal
c. Executors and Administrators Property under administration
d. Public Officers - Property under their
administration
e. Justices,
judges,
prosecutors,
clerks of court, lawyers - property
attached in litigation
CIVIL LAW
5. Consent Must be Intelligent, Free,
Spontaneous and Real
Vices of Consent (makes
voidable) [Art. 1330, Civil Code]
1. Mistake
2. Intimidation
3. Violence
4. Undue influence
5. Fraud
contract
i. Mistake
A misunderstanding of the meaning or
implication of something or a wrong action or
statement proceeding from a faulty judgment
[Domingo Realty v. CA, G.R. No. 126236
(2007)].
In order that mistake may invalidate consent,
it should refer to the substance of the thing
which is the object of the contract, or to those
conditions which have principally moved one
or both parties to enter into the contract [Art.
1331, Civil Code].
There is no mistake if the party alleging it
knew the doubt, contingency or risk affecting
the object of the contract [Art. 1333, Civil
Code].
Requisites:
1. The error must be substantial regarding:
Incapacity
to
Give
Consent
vs.
a. The object of the contract (error in re)
Disqualification to Contract
which may be:
• Mistake as to the identity of the
thing (error in corpore)
Incapacity to Give
Disqualification to
•
Mistake
as to the substance of
Consent
Contract
the thing (error in substantia)
• Mistake as to the conditions of
Restrains the
Restrains the very
the thing provided, or
exercise of the right right itself
• Mistake as to the quantity of the
to contract
thing (error in quantitate)
Based upon
Based upon public
b. The condition which primarily moved
policy and morality
subjective
or induced one or both parties to enter
circumstances of
the contract.
certain persons
c. Identity or qualifications of one of the
parties (error in persona), but only if
Voidable
Void
such was the principal cause of the
contract.
2. The error must be excusable
3. The error must be a mistake of fact and
not of law.
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Mistake which vitiates consent is an error of
fact, and not an error of law. Ignorance of the
law excuses no one from compliance
therewith [Art. 3, Civil Code]; but the modern
tendency is to allow an excusable mistake of
law to be invoked as vitiating consent
[Tolentino].
On Possession: Mistake upon a doubtful or
difficult question of law may be the basis of
good faith [Art. 526, Civil Code].
Ignorantia Facti Excusat vs.
Ignorantia Legis Neminem Excusat
Mistake of Fact
Mistake of Law
One
or
both
contracting parties
believe that a fact
exists
when
in
reality it does not,
or vice versa
One or both parties
arrive at an erroneous
conclusion on the
interpretation of a
question of law or its
legal effects
Vitiates consent
Does
not
vitiate
consent except when
it involves mutual
error as to the effect
of
an
agreement
when
the
real
purpose is frustrated.
Note: The obligation to show that the terms of
the contract had been fully explained to the
party who is unable to read or understand the
language of the contract, when fraud or
mistake is alleged, devolves on the party
seeking to enforce it [Art. 1332, Civil Code].
ii. Intimidation
One of the contracting parties is compelled by
a reasonable and well-grounded fear of an
imminent and grave evil upon his person or
property, or upon the person or property of his
spouse, descendants or ascendants, to give
his consent [Art. 1335, Civil Code].
To determine the degree of intimidation, the
age, sex and condition of the person shall
be borne in mind [Art. 1335, Civil Code].
024623CIV
CIVIL LAW
Requisites:
1. One party is compelled to give his consent
by a reasonable and well-grounded fear of
an evil;
2. The evil must be imminent and grave;
3. The evil must be upon his person,
property,
spouse,
descendants
or
ascendants; and
4. The evil must be unjust.
iii. Violence
Serious or irresistible force used to wrest
consent [Art. 1335, Civil Code]
Violence
Intimidation
Serious
or Reasonable and wellirresistible force
grounded fear of an
imminent and grave
evil upon his person
or property, or person
or property of his
spouse, descendants,
or ascendants
Physical
compulsion
Moral compulsion
External
or Internal or induces
prevents the will to the performance of an
manifest itself
act
Determined by:
Intention
Means
employed
1.
2.
1.
Takes into account:
Age
Sex
Condition
1.
2.
3.
Physical force 1. Intimidation must
employed must
be
the
be irresistible,
determining
or
of
such
cause
of
the
degree
that
contract OR must
victim has no
have caused the
other recourse
consent to be
under
the
given
2. Threatened
act
circumstances
must be unjust or
but to submit
2. Such force is
unlawful
the determining 3. The threat must
be
real
and
cause in giving
serious
of consent
4. Produces
a
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Violence
Intimidation
reasonable
and
well-grounded
fear from the fact
the person has
the
necessary
means or ability to
inflict threatened
injury
Note: Violence or intimidation shall annul the
obligation, although it may have been
employed by a third person who did not take
part in the contract [Art. 1336, Civil Code].
CIVIL LAW
Intimidation
Undue Influence
Must
be
an There need not be an
unlawful act or unjust or unlawful act.
unjust act which is
threatened
and
which causes the
consent to be given
v. Fraud (Dolo causante)
When, through insidious words or
machinations of one of the contracting
parties, the other is induced to enter into a
contract which, without them, he would not
have agreed to [Art. 1338, Civil Code].
iv. Undue Influence
When a person takes improper advantage of
his power over the will of another, depriving
the latter of a reasonable freedom of choice
[Art. 1337, Civil Code].
Requisites:
1. Improper advantage
2. Power over the will of another
3. Deprivation of the latter’s will of a
reasonable freedom of choice
Circumstances to consider:
1. Relationship of the parties (family,
spiritual, confidential etc.)
2. That the person unduly influenced was
suffering
from
mental
weakness,
ignorance or in financial distress [Art.
1337, Civil Code]
In order that fraud may make a contract
voidable, it should be serious and should not
have been employed by both contracting
parties [Art. 1344, Civil Code].
Requisites:
1. It must be made in bad faith
2. One party must have employed fraud or
insidious words or machinations
3. Damage or injury resulted to the other
party
4. It must have been serious
5. It induced the other party to enter into a
contract
6. It must have been employed by one
contracting party upon the other and
not employed by both contracting parties
nor by third persons.
Determining the existence of Fraud
Note: By analogy, undue influence employed
by a third person may annul the contract.
Test of Undue Influence: Whether or not the
influence exerted has so overpowered or
subjugates the mind of a contracting party
as to destroy his free agency, making him
express the will of another rather than his own
[Coso-Fernandez v. Deza, G.R. No. L-16763
(1921)].
024624CIV
Not Fraudulent
1. Usual exaggerations in trade, when the
other party had an opportunity to know the
facts [Art. 1340, Civil Code]
2. A mere expression of an opinion unless
made by an expert and the other party has
relied on the former’s special knowledge
[Art. 1341, Civil Code]
3. Misrepresentation made in good faith [Art.
1343, Civil Code]
Note: Not fraudulent, but this may constitute
error.
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Fraudulent
Failure to disclose facts, when there is a duty
to reveal them, as when the parties are bound
by confidential relations [Art. 1339, Civil Code]
Dolo Causante vs. Dolo Incidente
Dolo Causante
(Causal Fraud)
Dolo Incidente
(Incidental Fraud)
Refers to those
deceptions
or
misrepresentations
of
a
serious
character employed
by one party and
without which the
other party would
not have entered
into the contract
Refers
to
those
deceptions
or
misrepresentations
which
are
not
serious in character
and without which the
other party would
have still entered into
the
contract
[Art.
1344, Civil Code]
Determines or is
the essential cause
of
the
consent
[Tankeh v. DBP,
supra]
Refers only to some
particular or accident
of
the
obligation
[Tankeh
v.
DBP,
supra]
Renders
the Renders the party
contract voidable
liable for damages
Fraud to vitiate consent must fulfill two
conditions:
1. The fraud must be dolo causante or it
must be fraud in obtaining the consent
of the party. The deceit must be serious.
The fraud is serious when it is sufficient to
impress, or to lead an ordinarily prudent
person into error; that which cannot
deceive a prudent person cannot be a
ground for nullity. The circumstances of
each case should be considered,
considering the personal conditions of the
victim.
2. The fraud must be proven by clear and
convincing evidence and not merely by
a preponderance thereof [ECE Realty v.
Mandap, G.R. No. 196182 (2014)].
Note: However, fraud in its general sense
(false representation of a fact) coming about
024625CIV
CIVIL LAW
in the consummation stage of the sale, as
opposed to the negotiation and perfection
stages, entitles the aggrieved party to the
rescission of the sales contract [Sps. Tongson
v. Emergency Pawnshop, G.R. No. 167874
(2010)].
6. Simulation of Contracts
Simulation is the declaration of a fictitious
will, deliberately made by agreement of the
parties, in order to produce, for the purposes
of deception, the appearances of a judicial
act which does not exist or is different with
that which was really executed [Nautica
Canning Corporation v. Yumul, G.R. No.
164588 (2005)]. There exists an instrument,
but there is no contract.
Requisites of Simulation:
1. An outward declaration of will different
from the will of the parties
2. The false appearance must have been
intended by mutual agreement
3. The purpose is to deceive third persons
[Penalosa v. Santos, G.R. No. 133749
(2001)]
The primary consideration in determining the
true nature of a contract is the intention of
the parties. Such intention is determined not
only from the express terms of their
agreement,
but
also
from
the
contemporaneous and subsequent acts of
the parties [Sps. Lopez v. Sps. Lopez, G.R.
No. 161925 (2009)].
i. Absolute vs. Relative Simulation [Art.
1345, Civil Code]
Absolute
Simulation
(Simulados)
Relative Simulation
(Disimulados)
The parties have The parties conceal
no intention to be their true agreement.
bound at all
Fictitious contract
Disguised contract
Void because there Bound to their real
is an absolute lack agreement, so long
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Absolute
Simulation
(Simulados)
Relative Simulation
(Disimulados)
of cause [Art. 1346, as
it
does
not
Civil Code]
prejudice
a
third
person and is not
contrary
to
law,
morals,
good
customs, public order
or public policy [Art.
1346, Civil Code].
If the parties merely state a false cause in the
contract to conceal their real agreement, the
contract is relatively simulated and the
parties are still bound by their real
agreement.
Hence, where the essential requisites of a
contract are present and the simulation refers
only to the content or terms of the contract,
the agreement is absolutely binding and
enforceable between the parties and their
successors in interest [Valerio v. Refresca,
G.R. No. 163687 (2006)].
B. Object
The subject matter of the obligation arising
from the contract. [Art. 1318 (2), Civil Code]
1. Requisites
1. Within the commerce of men [Art. 1347,
Civil Code]
2. Not legally or physically impossible [Art.
1348, Civil Code]
3. In existence or capable of coming into
existence [Arts. 1461, 1493, 1495, Civil
Code]
4. Determinate or determinable, without the
need of a new contract between the
parties [Arts. 1349 and 1460 (2), Civil
Code]
2. What may be the object of a
contract
024626CIV
CIVIL LAW
i. General Rule
All things or services may be the object of
contracts, which includes future things [Art.
1347, Civil Code].
A
showing
of
mere
inconvenience,
unexpected impediments, or increased
expenses is not enough to relieve a party of
the obligation [De Castro v. Longa, G.R. No L2152-53 (1951)].
A future thing may be the object of a
contract. Such contract may be interpreted
as:
1. Conditional contract, where its efficacy
should depend upon the future existence
of the thing.
2. Aleatory contract, where one of the
contracting parties assumes the risk that
the thing will never come into existence,
e.g. insurance [Tolentino].
ii. Exceptions [Arts. 1347-1349, Civil
Code]
1. Things which are outside the commerce of
men
2. Intransmissible rights
3. Future inheritance except in cases
authorized by law
Requisites:
1. The succession has not yet been opened;
2. The object of the contract forms part of the
inheritance; and
3. The promisor has an expectancy of a right
which is purely hereditary in nature
4. Services that are contrary to law, morals,
good customs, public order, or public
policy
5. Impossible things or services
6. Objects which are indeterminable as to
their kind, the genus should be expressed
iii. Exceptions to the Exception
1. In case of marriage settlements under Art.
130, Civil Code
2. In case of partition of properties inter vivos
by the deceased under Art. 1080, Civil
Code [JLT Agro v. Balansag, G.R. No.
141882 (2005)]
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C. Cause or Consideration
Article 1350, Civil Code. In onerous contracts the
cause is understood to be, for each contracting
party the prestation or promise of a thing or service
by the other; in remuneratory ones, the service or
benefit which remunerated; and in contracts of pure
beneficence, the mere liberality of the benefactor.
The essential and impelling reason why a
party assumes an obligation.
Motive, on the other hand, is the particular
reason for a contracting party which does not
affect the other.
CIVIL LAW
Cause
Object
As to the Thing
Prestation
or The thing or service
promise of a thing itself
or service by the
other
As to Contracting Parties
Different
respect to
part
with May be the same for
each both parties
4. Distinguished from Motive
1. Requisites
Cause
Motive
1. Exists at the time the contract is entered
into [Art. 1409 (3), Civil Code]
2. Lawful [Art. 1352, Civil Code]
3. True or real [Art. 1353, Civil Code]
Proximate reason Remote reason
for contract
the contract
2. Presumption
Objective
juridical reason
The law presumes that even if the contract
does not state a cause, one exists and is
lawful; and it is incumbent on the party
impugning the contract to prove the
contrary. If the cause is stated in the contract
and it is shown to be false, then it is
incumbent upon the party enforcing the
contract to prove the legality of the cause
[Sepe v. Heirs of Kilang, G.R. No. 199766
(2019)].
3. Cause vs. Object
Cause
Object
As to Remuneration
The
service
benefit which
remunerated
or The thing which is
is given in remuneration
As to Donation
The liberality of the The thing which is
donor or benefactor given or donated
024627CIV
for
or Psychological
and
purely
personal
reason
Always the same Differs
for
each
for each contracting contracting party
party
Illegality
affects Illegality does not
existence or validity affect existence or
of the contract
validity of contract
5. Cause in contracts [Art. 1350, Civil
Code]
Onerous
Contracts
The
undertaking
or
the
promise of
the thing or
service by
the
other
party
Remunerato
ry Contracts
Pure
Beneficence
The service Mere liberality
or
benefit of
the
which
is benefactor
remunerated
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6. Effect of Lack of Cause, Unlawful
Cause, False Cause and Lesion [Arts.
1352-1355, Civil Code]
Cause
Effect
Lack
of VOID.
Cause
–
absence
or
total lack of Note: Cause must exist at
zause
the time of the perfection of
the contract; it need not
exist later.
Contrary
to
law, morals,
good
customs,
public policy
and
public
order
(unlawful
cause)
of
–
is
is
Cause
Effect
Lesion
or
inadequacy
of cause –
cause is not
proportionate
to object
If parts of a contract are
illegal but the rest are
supported
by
lawful
cause, claimant of such
has the burden of showing
proof; otherwise, the whole
contract is VOID.
Rule:
NO
Exception: Inadequacy of
cause shall invalidate the
contract when:
(1) there is fraud, mistake,
undue influence
(2) when parties intended a
donation
REVOCABLE/VOIDABLE
Parties are given a chance
to show that a cause really
exists, and that said cause
is true and lawful.
IV. DEFECTIVE CONTRACTS
Rescissible
Annulable
Voidable
(contrato
nulo)
A contract that has caused
a particular damage to one
of the parties or to a third
person and which for
equitable reasons may be
set aside even if valid.
or A
contract
in
which
consent of one of the
parties is defective, either
because of want of
capacity or because it is
vitiated, but which contract
is valid until judicially set
aside.
Unenforceable A contract that for some
reason
cannot
be
enforced, unless ratified
in the manner provided by
law.
Void
Inexistent
or A contract which is an
absolute
nullity
and
produces no effect, as if it
had never been executed
or entered into.
[Tolentino]
024628CIV
General
EFFECT.
Note: Inadequacy of cause may be a badge of
fraud.
VOID.
Contracts with illegal cause
may still produce effect in
certain cases where parties
are not of equal guilt:
(1) innocent party cannot be
compelled to perform his
obligation and he may
recover what has already
been given;
(2) if both parties are guilty,
neither can sue the other,
the law leaving them as
they are (in pari delicto)
[Art. 1411, Civil Code]
Falsity
cause
cause
stated but
untrue
CIVIL LAW
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CIVIL LAW
A. Rescissible contracts
Lesion does not invalidate a contract except
only in special cases provided by law [Art.
1355, Civil Code].
General Rule: A rescissible contract is valid
until rescinded.
This general principle is not decisive. What is
decisive is the civil law rule that ownership is
acquired, not by mere agreement, but by
tradition or delivery.||| [Equatorial Realty
Development, Inc. v. Mayfair Theater, Inc.,
supra]
1. Rescission
Rescission is a remedy granted to contracting
parties and to third persons, to secure
reparation for damages caused to them by a
contract, by means of the restoration of things
to their condition at the moment prior to the
celebration of said contract [Ada v. Baylon,
G.R. No. 182435 (2012)].
It is a relief to protect one of the parties or a
third person from all injury and damages
which the contract may cause, to protect
some preferential right [Aquino v. Tañedo,
G.R. No. L-12457 (1919)].
Rescission in Art. 1380 distinguished from
rescission in Art. 1191, Civil Code
[Universal Food Corp. v. CA, L-29155
(1970)]
Rescission in Art.
1191
Premised
breach
Rescission in Art.
1380
on Based on economic
damage or prejudice
A primary remedy
Rescission
subsidiary
is
Lesion
The injury which one of the parties suffers by
virtue of a contract which is disadvantageous
for him. To give rise to rescission, the lesion
must be known or could have been known at
the time of making of the contract [Camus
205-206, cited by Tolentino].
024629CIV
Subsidiary Remedy
Rescission is not a principal remedy, but a
subsidiary one. It can only be availed of only if
the injured party proves that he has no other
legal means to obtain redress for the damage
caused [Art. 1177, Civil Code].
Necessary Extent
The rescission shall only be to the extent
necessary to cover the damages caused, i.e.
partial rescission [Art. 1384, Civil Code].
2. Characteristics
Contracts
of
Rescissible
1. The defect consists in injury or damage
either to one of the contracting parties or
to third persons;
2. Before rescission, they are valid, and
therefore, legally effective;
3. They can only be attacked directly only
and not collaterally;
4. They can be attacked only by a
contracting party or a third person who is
injured or defrauded;
5. They are susceptible of convalidation only
by prescription and not ratification; and
6. The action to claim rescission must be
commenced within four (4) years
[Art.1389, Civil Code].
3. Rescissible Contracts and Their
Requisites
Article 1381, Civil Code. The following contracts
are rescissible:
1. Those which are entered into by guardians
whenever the wards whom they represent suffer
lesion by more than one-fourth of the value of the
things which are the object thereof;
2. Those agreed upon in representation of absentees,
if the latter suffer the lesion stated in the preceding
number;
3. Those undertaken in fraud of creditors when the
latter cannot in any other manner collect the claims
due them;
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4. Those which refer to things under litigation if they
have been entered into by the defendant without
the knowledge and approval of the litigants or of
competent judicial authority;
5.
All other contracts specially declared by law to be
subject to rescission
i. Requisites for Rescission under Arts.
1381 (1) and (2), Civil Code
1. Contract was entered into by a guardian in
behalf of his ward or by a legal
representative in behalf of an absentee
[Art. 1381, Civil Code].
Note: A guardian is authorized only to
manage the estate of the ward; should he
dispose a portion thereof without authority
from the court by way of a contract, the
same is unenforceable under Art. 1403
(1), Civil Code, irrespective of whether
there is lesion or not.
2. It was entered into without judicial
approval [Art. 1386, Civil Code].
3. Ward or absentee suffered lesion of more
than one-fourth (1/4) of the value of the
property which is the object of the contract
[Arts. 1381 (1) and (2), Civil Code].
4. There is no other legal means of obtaining
reparation for the lesion [Art. 1383, Civil
Code].
5. The person bringing the action must be
able to return whatever he may be obliged
to restore [Art. 1385 (1), Civil Code].
6. The object of the contract must not be
legally in the possession of a third person
who did not act in bad faith [Art. 1385 (2),
Civil Code].
Note: Art. 1381 (4), Civil Code: Any
disposition of the thing subject of litigation or
any act which tends to render inutile the
court’s impending disposition in such case
without the knowledge and approval of the
litigants or of the court, is unmistakably and
irrefutably indicative of bad faith.
However, even without knowledge or approval
from the court, the conveyance of a property
subject of litigation may still be valid but is
024630CIV
CIVIL LAW
susceptible for rescission under Art. 1381 (4),
Civil Code.
A definitive judicial determination with respect
to the thing subject of litigation is not a
condition sine qua non before the rescissory
action contemplated under Art. 1381 (4), Civil
Code may be instituted. The primordial
purpose of Art. 1381 (4), Civil Code is to
secure the possible effectivity of the
impending judgment by a court with respect to
the thing which is the subject of litigation [Ada
v. Baylon, supra].
ii. Requisites before a Contract Entered
into In Fraud of Creditors May Be
Rescinded under Art. 1381 (3), Civil
Code
1. There is a credit existing prior to the
celebration of the contract, although not
yet due or demandable;
2. There is fraud, or at least, the intent to
commit fraud to the prejudice of the
creditor seeking rescission, which may be
presumed or proved [Art. 1387, Civil
Code];
3. Creditor cannot in any legal manner
collect his credit; insolvency of the debtor
is not required; and
4. The object of the contract must not be
legally in the possession of a third person
who did not act in bad faith.
General Rule: Rescission requires the
existence of creditors at the time of the
alleged fraudulent alienation, and this must be
proved as one of the bases of the judicial
pronouncement
setting
aside
the
contract. Without any prior existing debt,
there can neither be injury nor fraud.
Illustration: While it is necessary that the credit
of the plaintiff in the accion pauliana must
exist prior to the fraudulent alienation, the date
of
the
judgment
enforcing
it
is
immaterial.
Even if the judgment is
subsequent to the alienation, it is merely
declaratory, with retroactive effect to the date
when the credit was constituted [Siguan v.
Lim, supra].
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Accion Pauliana
The action to rescind contracts in fraud of
creditors. Consequently, accion pauliana
presupposes a judgment and unsatisfied
execution which cannot exist when the debt is
not yet demandable at the time the rescissory
action is brought [Planiol & Ripert 264; 2I
Ruggiero 169, cited by Tolentino].
Note: Even secured creditors are entitled to
accion pauliana.
Payments made in a state of insolvency for
obligations to whose fulfillment the debtor
could not be compelled at the time they were
effected, are also rescissible [Art. 1382, Civil
Code].
iii. Requisites Before Payment Made by
Insolvent can be Rescinded
1. It was made in a state of insolvency;
2. Obligation must have been one which
debtor could not be compelled to pay at
the time such payment was effected.
Note: A debtor can be compelled to pay by the
creditor even before the expiration of the
period since by his insolvency he has already
lost his right to the benefit of such period [Art.
1198 (1), Civil Code].
4. Effects of Rescission [Art. 1385,
Civil Code]
It creates an obligation of mutual restitution
or the obligation to return the things which
were the object of the contract, together with
their fruits, and the price with its interests.
However, if the object of the contract is in the
possession of third persons in good faith,
rescission cannot take place and indemnity for
damages may be demanded from the person
causing the loss [Art. 1385, Civil Code].
Rescission prescribes in a period of four
(4) years. For persons under guardianship
and for absentees, the period shall not begin
until the termination of the former's incapacity,
or until the domicile of the latter is known [Art.
1389, Civil Code].
CIVIL LAW
Do all creditors benefit from the
rescission?
The rescission should benefit only the creditor
who obtained the rescission, because the
rescission is to repair the injury caused to him
by the fraudulent alienation. If a balance is left
after satisfying the claim of the creditor who
brought the action, other creditors who are
qualified to bring an accion pauliana should be
given the benefit of rescission, instead of
requiring them to bring other rescissory
actions. However, creditors who only became
such after the fraudulent alienation, cannot
benefit from the rescission.
5. Presumption of Fraud
When alienation of property presumed in fraud
of creditors:
1. Alienation by gratuitous title if the debtor
has not reserved sufficient property to pay
all of his debts contracted before
alienation [Art. 1387, Civil Code]
2. Alienation by onerous title if made by a
debtor against whom some judgment has
been rendered in any instance or some
writ of attachment has been issued [Art.
1387, Civil Code].
Badges of Fraud
A conveyance leaving no property for other
creditors to attach is evidence of fraud [China
Banking v. CA, G.R. No. 129644 (2000)]:
1. Consideration is fictitious or inadequate;
2. Transfer was made while suit had begun
or pending;
3. Sale was upon credit by insolvent debtor;
4. There was large indebtedness or
complete insolvency;
5. Transfer consisted of all or nearly all
property especially when insolvent or
greatly;
6. The transfer was made between father
and son when other above circumstances
present; and
7. There was a failure of vendee to take
exclusive possession of all property
embarrassed financially.
6.
Resolution
distinguished
and
rescission
The Civil Code uses the terms synonymously.
024631CIV
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Definition
Rescission
Resolution
[Arts. 1380- [Art.
1191,
1381,
Civil Civil Code]
Code]
Rescission
Resolution
A subsidiary action
based on injury to
the
plaintiff’s
economic interests
as described in
Arts. 1380 & 1381,
Civil Code.
As referred to in Art.
1191, Civil Code the
action is based on the
defendant’s breach of
faith, a violation of the
reciprocity between
the parties.
defendant
makes good
the damages
caused, the
action
cannot
be
maintained
or continued.
[Heirs of Sofia Quirong v. Development Bank
of the Philippines, G.R. No. 173441 (2009)]
Differences
Rescission
Resolution
[Arts. 1380- [Art.
1191,
1381,
Civil Civil Code]
Code]
As
Nature
Action
to Subsidiary
of Action
involving
partial
resolution
Principal
Action,
retaliatory
nature
As to Basis Economic
Breach
prejudice
faith
rendering the
contract
legally
rescissible
in
of
Note: Not all
forms
of
economic
prejudice are
recognized
by law as a
ground
to
rescind
As to effect The cause of
action
is
subordinated
to
the
existence of
an economic
prejudice. H
ence, where
the
024632CIV
As
to Prejudiced
partiesthird
party
inmay
also
interest
seek remedy
Only party to
the contract
may
seek
remedy
As
to Equity
grounds
Noncompliance or
nonperformance
As
action
courts
May
be
denied if court
finds
that
there
is
sufficient
reason
to
justify
extension
to Right to seek
by remedy
is
not affected
by extension
of time
As
to Four
prescriptiv years
e period
1389,
Code]
(4) Ten
[Art. years
Civil
(10)
[Congregation of the Religious Virgin Mary v.
Orola, G.R. No. 169790 (2008)]
B. Voidable contracts
The
reparation of
damages for
the breach is
purely
secondary.
Voidable or annullable contracts are existent,
valid and binding, although they can be
annulled because of want of capacity or
vitiated consent of one of the parties.
However, before such annulment, they are
considered effective and obligatory between
parties. [First Philippine Holdings Corp. v.
Trans Middle East (Phils.) Equities, Inc., G.R.
No. 179505 (2009)]
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CIVIL LAW
Article 1390, Civil Code. The following contracts
are voidable or annullable, even though there may
have been no damage to the contracting parties:
1. Those where one of the parties is incapable of
giving consent to a contract;
2. Those where the consent is vitiated by mistake,
violence, intimidation, undue influence or fraud.
These contracts are binding, unless they are
annulled by a proper action in court. They are
susceptible of ratification.
1.
Characteristics
Contracts
of
Voidable
1. Its defect consists of the vitiation of
consent of one of the contracting parties;
2. It is binding until it is annulled;
3. It is susceptible of convalidation by
ratification or prescription; once ratified,
they become absolutely valid and can no
longer be annulled [Art. 1392, Civil Code];
and
4. Its defect or voidable character cannot be
invoked by third persons.
Rescission
Annulment
Merely
produces
the inefficacy of the
contract, which did
not essentially exist
in the contract
Declares
the
inefficacy which the
contract
already
carries in itself
Needs ratification Requires an act of
to be effective
ratification to be cured
Private
interest Direct influence of the
alone governs
public
interest
is
involved
May be compatible Based on a vice of
with the perfect the contract which
validity
of
the invalidates it
contract
A remedy
A sanction
Equity
predominates
The law predominates
May be demanded Can
024633CIV
be
Rescission
Annulment
by third parties only by parties to the
affected by the contract
contract
2. Who may institute action for
annulment
General Rule: Action for annulment may be
instituted by all who are thereby obliged
principally or subsidiarily.
Exceptions:
1. Persons capable of giving consent; and
2. Guilty parties who have caused the
vitiation of consent cannot allege the
incapacity or want of consent of those
they contracted with [Art. 1397, Civil
Code].
Requisites:
1. Plaintiff must have an interest in the
contract;
2. The victim, and not the party
responsible for the vice or defect, must
assert the same
Exception: If a third person is prejudiced in
his rights with respect to one of the
contracting parties and can show detriment
which would positively result to him from the
contract in which he had no intervention
[Teves v. People’s Homesite and Housing
Corp., G.R. No. L-21498 (1968)].
3. Effects of Annulment
Contract has been
Consummated
Contract has not
been Consummated
The parties shall be
released from the
obligations
arising
therefrom.
Mutual Restitution - the
contracting
parties
shall restore to each
other the things which
have been the subject
matter of the contract,
with their fruits, and the
price with its interest,
except
in
cases
provided by law [Arts.
1398-1402,
Civil
Code].
demanded
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Mutual Restitution
Vitiation of Parties shall restore to each
Consent
other the subject matter of
the contract with its fruits
and the price thereof with
legal interest.
In obligations to render
service, the value thereof
shall be the basis for
damages [Art. 1398, Civil
Code].
Incapacity
Incapacitated person is not
obliged
to
make
any
restitution except insofar as
he has been benefited by
the thing or price received
by him [Art. 1399, Civil
Code].
4. Modes of Validating a Voidable
Contract
1. By prescription of the action for
annulment [Art. 1391, Civil Code]
2. By ratification or confirmation [Arts. 13921396, Civil Code]
3. By loss of the thing which is the object of
the contract through the fraud or fault of
the person who is entitled to institute the
action for the annulment [Art. 1401, Civil
Code]
a. Prescription
Prescription of the Action for Annulment
Grounds for being
voidable
Reckoning Point
Intimidation,
Four (4) years from
violence,
or the time the defect of
undue influence
the consent ceases
Fraud or Mistake
Four
years
from
discovery thereof
Minors
and Four years from the
Incapacitated
time the guardianship
Persons
ceases.
024634CIV
CIVIL LAW
Constructive Notice
Discovery or fraud must be reckoned from the
time the document was registered in the office
of the Register of Deeds. Registration
constitutes constructive notice to the whole
world [Carantes v. CA, G.R. No. L-33360
(1977)].
b. Ratification
Concept
1. The act or means by virtue of which
efficacy is given to a contract which
suffers from a vice of curable nullity [Arts.
1392-1396, Civil Code].
3. Ratification is either express or tacit
How Ratified
When the person who has the right to invoke
it, with the knowledge of the reason which
renders the contract voidable and such reason
having ceased, executes an act implying an
intention to waive his right [Art. 1393, Civil
Code].
Requisites of Ratification:
1. Contract is tainted with a vice susceptible
of being cured;
2. Confirmation is effected by the person
who is entitled to do so under the law;
3. It is effected with knowledge of the vice
or defect of the contract;
4. Cause of the nullity or defect has already
disappeared.
The right to ratify may be transmitted to the
heirs of the party entitled to such right. It may
likewise be exercised by the guardian of the
incapacitated person having such right [Art.
1394, Civil Code].
Ratification does not require the conformity of
the contracting party who has no right to bring
an action for annulment [Art. 1395, Civil
Code].
Effect of Ratification
It extinguishes the action for annulment of a
voidable contract [Art. 1392, Civil Code].
It cleanses the contract from all its defects
from the moment it was constituted [Art. 1396,
Civil Code].
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CIVIL LAW
c. Loss of the Thing
1. Characteristics
Loss of thing by
Plaintiff
Loss of thing by
Defendant
If the loss of the
object
in
his
possession is due
to his fault or fraud,
the
action
for
annulment
of
contracts shall be
extinguished.
He
cannot
ask
for
annulment
[Art.
1401, Civil Code].
If it is lost through the
defendant’s fault, he
is liable for fruits
received, value of the
thing at the time it
was lost, with interest
from the same date
[Art.
1400,
Civil
Code].
1. Cannot be enforced by a proper action in
court;
2. Susceptible of ratification;
3. Cannot be assailed by third persons [Art.
1408, Civil Code].
2. Kinds of Unenforceable Contracts
[Art. 1403, Civil Code]
1. Unauthorized contracts – those entered
into by one who has no authority or legal
representation, or who has acted beyond
his powers [Art. 1403 (1), Civil Code]
2. Those which did not comply with the
Statute of Frauds [Art. 1403 (2), Civil
Code]
3. The Statute of Frauds embodied in Art.
1403 (2), Civil Code requires certain
contracts enumerated therein to be
evidenced by some note or memorandum
in order to be enforceable. The Statute
does not deprive the parties of the right to
contract with respect to the matters
therein involved, but merely regulates the
formalities of the contract necessary to
render it enforceable. Evidence of the
agreement cannot be received without the
writing or a secondary evidence of its
content [Swedish Match v. CA, G.R. No.
128120 (2004)].
4. Those where both parties are incapable of
giving consent to a contract [Art. 1403 (3),
Civil Code]
C. Unenforceable Contracts
Unenforceable contracts are those which
cannot be enforced by a proper action in
court, unless they are ratified, because either
they are entered into without or in excess of
authority, they do not comply with the statute
of frauds, or both of the contracting parties do
not possess the required legal capacity [Art.
1403, Civil Code].
An unenforceable contract may be ratified,
expressly or impliedly, by the person in whose
behalf it has been executed, before it is
revoked by the other contracting party.|||
[Mercado v. Allied Banking Corp., G.R. No.
171460 (2007)]
SUMMARY OF UNENFORCEABLE CONTRACTS
Contract entered into
without authority
Effect on
Contract
024635CIV
Contracts covered by
Statute of Frauds
Contract where both
parties are incapable of
giving consent
the No effect unless ratified. Cannot be enforced by a proper action in court.
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Contract entered into
without authority
How to assail
CIVIL LAW
Contracts covered by
Statute of Frauds
Contract where both
parties are incapable of
giving consent
Not by direct action.
Not by direct action.
Not by direct action.
As a defense, by motion
to dismiss the complaint
on the ground that the
contract
is
unenforceable
As a defense, by motion
to dismiss on the
ground that the contract
is unenforceable
As a defense, by motion
to dismiss the complaint
on the ground that the
contract is unenforceable
Objection
to
the
presentation of oral
evidence to prove an
oral contract [Art. 1405,
Civil Code]
Who can assail
- cannot be
assailed
by
third persons
[Art. 1408, Civil
Code]
By the person whose
name the contract was
entered into / by owner
of property
When
When a party asks the court to enforce the contract
How to
Defect
Cure Ratification by person
whose
name
the
contract was entered
into
D. Void or inexistent contracts
Definition
A void or inexistent contract is one which has
no force and effect from the very beginning. It
is as if it has never been entered into and
cannot be validated either by the passage of
time or by ratification.
By the party against
whom the contract is
being enforced; or his
privies
Ratification by party Ratification
of
party
against
whom
the against
whom
the
contract
is
being contract
is
being
enforced
enforced; or his privies;
or parents or guardians
Failure to object to the
presentation of oral The ratification by one
evidence to prove the party
converts
the
contract amounts to contract into a voidable
waiver [Art. 1405, Civil contract [Art. 1407, Civil
Code]; makes it as Code]
binding as if written
for by Art. 1318 of the Civil Code is totally
wanting; and
2. Those declared to be so under Art. 1409
of the Civil Code [Francisco v. Herrera,
G.R. No. 139982 (2002)].
Types of Void Contracts
1. Those where one of the essential
requisites of a valid contract as provided
024636CIV
By the party against
whom the contract is
being enforced; or his
privies; or parents or
guardians, as it is a
personal defense
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Article 1409, Civil Code. The following contracts
are inexistent and void from the beginning:
1. Those whose cause, object or purpose is contrary
to law, morals, good customs, public order or
public policy;
2. Those which
fictitious;
are
absolutely
simulated
or
3. Those whose cause or object did not exist at the
time of the transaction;
4. Those whose object is outside the commerce of
men;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to
the principal object of the contract cannot be
ascertained;
7. Those expressly prohibited or declared void by
law
These contracts cannot be ratified. Neither can the
right to set up the defense of illegality be waived.
1. Characteristics
1. It does not produce any legal effect;
2. It is not susceptible of ratification;
3. The right to set up the defense of
inexistence or absolute nullity cannot be
waived or renounced;
4. The action or defense for the declaration
of their inexistence or nullity is
imprescriptible [Art. 1410, Civil Code];
Note: This provision does not apply to
wills [Gallanosa v. Arcangel, G.R. No. L29300 (1978)].
5. The inexistence or absolute nullity of a
contract cannot be invoked by a person
whose interests are not directly affected
[Art. 1421, Civil Code].
a. Creditors of a party to an illegal
contract may, under the conditions set
forth in Art. 1177 exercise the rights
and actions of the latter.
b. Except only those which are inherent
in his person, including therefore, his
right to the annulment of said contract,
even though such creditors are not
affected by the same, except
indirectly, in the manner indicated in
024637CIV
said legal provision [Pascual v.
Secretary of Public Works, G.R. No. L10405 (1960)].
Note: A contract which is a direct result of a
previous illegal contract is also void and
inexistent [Art. 1422, Civil Code]. The novation
is void if the original obligation was void,
except when annulment may be claimed only
by the debtor or when ratification validates
acts which are voidable [Art. 1298, Civil
Code].
Void vs. Inexistent Contracts
Void
Inexistent
Those where all the
requisites
of
a
contract
are
present but the
cause, object or
purpose is contrary
to law, morals,
good
customs,
public order or
public policy, or the
contract itself is
prohibited
or
declared void by
law
Those where one or
some or all of the
requisites
essential
for the validity of a
contract
are
absolutely lacking
Principle of pari Principle
of
pari
delicto is applicable delicto is inapplicable
May produce legal Cannot produce any
effects
effect
Covers Art. 1409 Covers Art. 1409 (2)
(1), (2), (4), (6) and and (3), Civil Code
(7), Civil Code
Void vs. Voidable Contracts
Void
Voidable
Those where one
of the essential
requisites
is
wanting, either in
fact or in law, or is
declared void by
statute.
Those where all the
essential
requisites
are
present,
but
consent is vitiated by
want of capacity, or
by error, violence,
intimidation, or deceit
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Void
Voidable
Void; no contract at Valid until annulled
all
May be
indirectly
assailed Must be assailed
through an action for
that purpose by a
party to the contract,
and never by a third
person (direct attack)
Nullity may be set- Nullity may only be
up against anyone set-up against a party
who asserts a right thereto.
arising from it.
Not susceptible to May be validly ratified
ratification
Action to declare Action for annulment
nullity does not prescribes
prescribe
[Art.
1410, Civil Code]
2. Divisibility of Contracts
Trigger: A contract has separate provisions of
which only one or more provisions is invalid
Rule: If the illegal terms can be separated
from the legal ones, the latter may be
enforced [Art. 1420, Civil Code]
3. In Pari Delicto Principle (in pari
delicto, non oritur actio) [Art. 1411,
Civil Code]
Parties to a void agreement cannot expect the
aid of the law; the courts leave them as they
are, because they are deemed in pari delicto
or "in equal fault" [Menchavez v. Teves, G.R.
No. 153201 (2005)].
i. General Rules
Nullity proceeds from the illegality of the
cause or object of the contract, and the
act constitutes a criminal offense [Art.
1411, Civil Code]
1. Parties shall have no cause of action
against each other.
024638CIV
CIVIL LAW
2. Both parties shall be prosecuted.
3. Things or price of the contract which are
considered as effects or instruments of a
crime are forfeited in favor of the
government.
The act in which the unlawful or
forbidden cause consists does not
constitute a criminal offense [Art. 1412,
Civil Code]
When both
parties are
at fault
Neither may
recover what
he has given
by virtue of
the contract,
or demand
the
performance
of the other's
undertaking
When only one of the
contracting parties is at
fault
Guilty Party
Innocent
Party
1.
He
cannot
recover
what he has
given
by
reason
of
the contract,
1. He may
demand the
return of what
he has given
2.
He
is
without any
obligation to
2.
He comply with
cannot ask his promise.
for
the
fulfillment of
what
has
been
promised to
him.
ii. Exceptions to the Principle of In Pari
Delicto:
1. Payment of usurious interest paid in
excess of the interest may be recovered
by the debtor [Art. 1413, Civil Code].
2. Payment of money or delivery of property
for an illegal purpose, where the party
who paid or delivered repudiates the
contract before the purpose has been
accomplished, or before any damage has
been caused to a third person. The
repudiating party may be allowed to
recover money or property [Art. 1414, Civil
Code; Hulst v. PR Builders Inc., G.R. No.
156364 (2007)].
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3. Payment of money or delivery of property
made by an incapacitated person. It is
not necessary that the illegal purpose has
not been accomplished, or no damage
has yet been caused [Art. 1415, Civil
Code].
4. Agreement or contract not illegal per se
but merely prohibited by law, and the
prohibition is designed for the plaintiff’s
protection. Plaintiff may recover as
allowing recovery enhances public policy
[Art. 1416, Civil Code].
5.
6.
7.
8.
9.
Note: When the assailed contracts are
void ab initio, Art. 1416 cannot be applied,
as in the case of aliens purchasing
property despite knowing fully well the
constitutional
prohibition
against
foreigners owning land in the Philippines
at the time of purchase [Frenzel v. Catito,
G.R. No. 143958 (2003)].
Payment of any amount in excess of the
maximum price of any article or
commodity fixed by law [Art. 1417, Civil
Code]
Contract whereby a laborer undertakes to
work longer than the maximum number of
hours fixed by law [Art. 1418, Civil Code]
Contract whereby a laborer accepts a
wage lower than the minimum wage fixed
by law. He may recover the deficiency
with legal interest, and the employer shall
be criminally liable [Art. 1419, Civil Code].
In case of divisible contracts, the legal
portions/terms
may
be
enforced
separately from the illegal portions/terms
[Art. 1420, Civil Code].
One who lost in gambling because of
fraudulent schemes practiced on him. He
is allowed to recover his losses [Art. 315
(3) (b), RPC] even if gambling is
prohibited.
The principle of in pari delicto admits of an
exception under Art. 1416, Civil Code.
Recovery for what has been paid or delivered
pursuant to an inexistent contract is allowed
only when the following requisites are met:
1. the contract is not illegal per se but merely
prohibited;
2. the prohibition is for the protection of the
plaintiffs; and
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CIVIL LAW
3. if public policy is enhanced thereby
[Acabal v. Acabal, G.R. No. 148376
(2005)].
NATURAL
OBLIGATIONS
OBLIGATIONS
I. IN GENERAL
A. Concept
Natural obligations, not being based on
positive law but on equity and natural law, do
not grant a right of action to enforce their
performance, but after voluntary fulfillment by
the obligor, they authorize the retention of
what has been delivered or rendered by
reason thereof [Art. 1423, Civil Code].
General Rule: Natural obligations do not
grant a right of action to enforce their
performance.
Exception: After voluntary fulfillment, they
authorize the retention of what has been
delivered/rendered by reason thereof.
In order that there may be a natural obligation
there must exist a juridical tie which is not
prohibited by law [Art. 1306, Civil Code] and
which in itself could give a cause of action but
because of some special circumstances is
actually without legal sanction or means of
enforcing compliance by intervention of courts
[Art. 1423, Civil Code].
B. Conditions Necessary for
Natural Obligations
1. That there be a juridical tie between two
persons; (this distinguishes it from moral
obligations) and
2. That this tie is not given effect by law (this
distinguishes it from civil obligations).
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C. Types of Obligations
Juridical Science
in
1. Moral Obligations – duties of conscience
completely outside the field of law
2. Natural Obligations – duties not
sanctioned by any action but have a
relative judicial effect
3. Civil Obligations – juridical obligations
that are in conformity with positive law but
are contrary to juridical principles and
susceptible of being annulled; enforceable
by action
4. Mixed Obligations – full juridical effect;
falls under civil obligations
Natural
Obligations
Civil
Obligations
As
to Not by court
enforceability actions, but
by
good
conscience
of debtor
Court action
or
the
coercive
power
of
public
authority
As to basis
Equity and Positive law
natural
[Art. 1157,
justice
Civil Code]
Natural
Obligations
Imperfect
Obligations
Only
the
performance of the
obligation is left to
the will of the
debtor
Existence of the
obligation depends
exclusively upon the
judgment of debtor
Natural
Obligations
Moral Obligations
There is a juridical No
juridical
tie between the whatsoever
parties which is not
enforceable
by
court action.
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tie
Natural
Obligations
Moral Obligations
Voluntary fulfillment
of such produces
legal effects which
the
court
will
recognize
and
protect.
Voluntary fulfillment
of such does not
produce any legal
effect which the
court will recognize
and protect.
Within the domain Within the domain of
of law
morals
II. CONVERSION TO CIVIL
OBLIGATIONS
Rule
Partial payment of a natural obligation does
not make it civil; the part paid cannot be
recovered but the payment of the balance
cannot be enforced.
This is applicable only to natural obligations
because of prescription or lack of formalities
(nullity due to form e.g. Art. 1430) and not to
natural obligations subject to ratification or
confirmation.
Note: Payment by mistake is not voluntary
and may be recovered. Payment is voluntary
when the debtor knew that the obligation is a
natural one. The debtor, however, has the
burden of proving the mistake.
Natural obligations may be converted to
civil obligations by way of:
1. Novation
2. Ratification or confirmation
Rules on Natural Obligation:
1. The promise to perform a natural
obligation is as effective as performance
itself and converts the natural obligation to
a civil obligation.
2. Partial payment of a natural obligation
does not make it civil; the part paid cannot
be recovered, but payment of the balance
cannot be enforced. The exception would
be if the natural obligation is susceptible of
ratification.
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3. Guaranties for the performance of a
natural obligation are valid [Art. 2052, Civil
Code].
4. Payment of a natural obligation is not
subject to reduction by reason of
inofficiousness, appearance of children, or
ingratitude.
4. Debtor voluntarily reimburses the third
person
III. EXAMPLES OF
NATURAL OBLIGATIONS
1. Minor Voluntarily Returns Payment
A.
Performance
Prescription
after
1. Voluntary Performance by Obligor
Article 1424, Civil Code. When a right to sue upon
a civil obligation has lapsed by extinctive
prescription, the obligor who voluntarily performs
the contract cannot recover what he has delivered
or the value of the service he has rendered.
Requisites:
1. There is a civil obligation
2. The right to sue upon it has already
lapsed by extinctive prescription
3. Obligor performs contract voluntarily
Consequence: Obligor cannot recover what
he has delivered or value of the service he
rendered. Obligee gains the right to retain
what has been paid.
Consequence: Obligor cannot recover what
he has paid.
B. Contracts Made by a Minor
Article 1426, Civil Code. When a minor between
eighteen and twenty-one years of age who has
entered into a contract without the consent of the
parent or guardian, after the annulment of the
contract voluntarily returns the whole thing or price
received, notwithstanding the fact that he has not
been benefited thereby, there is no right to demand
the thing or price thus returned.
Note: Majority commences at the age of
eighteen (18) years [Art. 234, Family Code, as
amended by RA 6809]. This article may no
longer have any application because
emancipation terminates parental authority
[Art. 327, Civil Code].
Requisites:
1. There is a civil obligation
2. Minor between eighteen (18) and twentyone (21) entered into the contract without
consent of parent or guardian
3. Obligation is annulled after minor has
received the price or whole thing
4. Minor returns whole thing or price
received voluntarily
2. When Third Person Pays the Debt
Article 1425, Civil Code. When without the
knowledge or against the will of the debtor, a third
person pays a debt which the obligor is not legally
bound to pay because the action thereon has
prescribed, but the debtor later voluntarily
reimburses the third person, the obligor cannot
recover what he has paid.
Requisites (Prescribed Civil Obligation –
Payment to 3rd Person):
1. There is a debt
2. Action upon the debt has prescribed
3. A third person, without the knowledge or
against the will of the debtor, pays the
debt
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Consequence: There is no right to demand
the thing or price returned.
2. Minor Voluntarily Pays
Article 1427, Civil Code. When a minor between
eighteen and twenty-one years of age, who has
entered into a contract without the consent of the
parent or guardian, voluntarily pays a sum of
money or delivers a fungible thing in fulfillment of
the obligation, there shall be no right to recover the
same from the obligee who has spent or consumed
it in good faith.
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Requisites:
1. There is a civil obligation
2. Minor between eighteen (18) and twentyone (21) entered into the contract without
consent of parent or guardian
3. Minor pays a sum of money or delivers a
fungible thing voluntarily
4. Obligee spends the money or consumes
the thing in good faith
Consequence: There is no right to recover
the money paid or thing delivered.
Note: It is not the voluntary payment that
prevents recovery, but the consumption or
spending of the thing or money in good faith.
3. Arts. 1426 and 1427, Civil Code,
distinguished
Art. 1426
Presupposes
prior annulment
Refers
object
to
Art. 1427
a No prior annulment is
involved
any Refers to money or
fungible things
Consumption
in Requires
good faith is not consumption in good
required
faith
C. Performance
Party
by
D. Payment beyond Inheritance
Article 1429, Civil Code. When a testate or
intestate heir voluntarily pays a debt of the
decedent exceeding the value of the property which
he received by will or by the law of intestacy from
the estate of the deceased, the payment is valid
and cannot be rescinded by the payer.
Requisites under Art. 1429 (Payment made
by Heir):
1. Decedent incurred in debt during his
lifetime
2. Heir voluntarily pays debt
3. Value of debt exceeds value of heir’s
inheritance
Consequence: Payment is valid and heir
cannot rescind it.
E. Payment of a Void Legac
Article 1430, Civil Code. When a will is declared
void because it has not been executed in
accordance with the formalities required by law, but
one of the intestate heirs, after the settlement of the
debts of the deceased, pays a legacy in
compliance with a clause in the defective will, the
payment is effective and irrevocable.
Winning
Article 1428, Civil Code. When, after an action to
enforce a civil obligation has failed, the defendant
voluntarily performs the obligation, he cannot
demand the return of what he has delivered or the
payment of the value of the service he has
rendered.
Requisites:
1. There is a civil obligation
2. An action to enforce such obligation has
failed
3. Defendant voluntarily performs the
obligation
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Consequence: Defendant cannot demand
return of what he has delivered or the
payment of the value of the service.
Requisites:
1. There is a will providing for a legacy
2. The will is declared void because it was
not executed in accordance with the
formalities required by law
3. Heir pays legacy in compliance with a
clause in the defective will
Consequence: Payment is effective and
irrevocable.
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QUASI-CONTRACTS
QUASINTRACTS
I. IN GENERAL
A quasi-contract is that juridical relation
resulting from a lawful, voluntary and
unilateral act, and which has for its purpose
the payment of indemnity to the end that no
one shall be unjustly enriched or benefited at
the expense of another [Art. 2142, Civil Code].
Based on presumed will or intent of the obligor
dictated by equity and by the principles of
absolute justice [Padcom v. Ortigas Center,
G.R. No. 146807 (2002)].
There being no express consent, in the sense
of a meeting of minds between the parties,
there is no contract to speak of. However, in
view of the peculiar circumstances or factual
environment, consent is presumed to the end
that a recipient of benefits or favors resulting
from lawful, voluntary and unilateral acts of
another may not be unjustly enriched at the
expense of another [Philippine National Bank
v. CA, G.R. No. 97995 (1993)].
II. NEGOTIORUM GESTIO
(UNAUTHORIZED
MANAGEMENT)
CIVIL LAW
The obligation does not arise:
1. When the property or business is not
neglected or abandoned; or
2. If in fact the manager has been tacitly
authorized by the owner.
In the first case, the provisions of Arts. 1317
(1), 1403, and 1404, Civil Code regarding
unauthorized contracts shall govern. In the
second case, the rules on agency shall be
applicable [Art. 2144, Civil Code].
A. Obligations of a Gestor
1. Observe the requisite standard of
diligence
Article 2145, Civil Code. The officious manager
must perform his duties with all the diligence of a
good father of a family, and pay the damages
which through his fault or negligence may be
suffered by the owner of the property or business
under management.
The courts may, however, increase or moderate
the indemnity according to the circumstances of
each case.
2. Liability in the management of the
property
Negotiorum gestio takes place when a person
voluntarily takes charge of another’s
abandoned business or property without the
owner’s authority [Art. 2144, Civil Code].
Solidary liability
The officious manager is liable for the acts of
the persons to whom he delegated all or some
of his duties. The responsibility of two or more
gestors shall be solidary, unless the
management was assumed to save the thing
or business from imminent danger [Art. 2146,
Civil Code].
As a rule, reimbursement must be made to the
gestor (i.e., one who carried out the business)
for necessary and useful expenses.
Note: This is without prejudice to the direct
obligation of the delegate to the owner of the
business.
Liability for fortuitous events
Requisites:
The officious manager is liable for any
1. Person voluntary takes charge;
fortuitous event under the following conditions:
2. Takes charge of the agency or
1. If he undertakes risky operations which
management of a business or property
the owner was not accustomed to embark
belonging to another;
upon
3. Property or business is neglected or
2.
If
he has preferred his own interest to that
abandoned; and
of
the owner
4. Manager has not been tacitly authorized by
the owner.
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3. If he fails to return the property or
business after demand of the owner
4. If he assumed management in bad faith
[Art. 2147, Civil Code]
5. If he is manifestly unfit to carry on the
management
6. If by his intervention he prevented a more
competent person from taking up the
management [Art. 2148, Civil Code].
was no imminent and manifest danger to the
property or business, provided:
1. The gestor has acted in good faith; and
2. The property or business is intact, ready to
be returned to the owner [Art. 2151, Civil
Code].
Note: The gestor shall not be liable for (e) and
(f) if the management was assumed to save
the property or business from imminent
danger.
Article 2149, Civil Code. The ratification of the
management by the owner of the business
produces the effects of an express agency, even if
the business may not have been successful.
Personal liability
Be personally liable for contracts which he
entered into with third persons, even though
he acted in the name of the owner, and there
shall be no right of action between the owner
and third persons.
The gestor shall NOT be personally liable for
such contracts, provided:
1. The owner has expressly or tacitly ratified
the management, or
2. When the contract refers to things
pertaining to the owner of the business
[Art. 2152, Civil Code].
B. Obligations of the Owner of
the Property or Business
Although the management was not expressly
ratified, the owner who enjoys the advantages
of the same shall:
1. Be liable for the obligations incurred in his
interest
2. Reimburse the gestor for the necessary
and useful expenses and for the damages
the latter may have suffered in the
performance of his duties
The above obligations shall be incumbent
upon the owner if the management had for its
purpose the prevention of an imminent and
manifest loss, although no benefit may have
been derived [Art. 2150, Civil Code].
The owner would still be liable, even if the
owner did not derive any benefit and there
024644CIV
C. Effect of Ratification
D.
Extinguishment
Management
of
1. When the owner repudiates or puts an end
thereto
2. When the gestor withdraws from the
management, subject to Art. 2144
3. By the death, civil interdiction, insanity or
insolvency of the owner or the gestor [AIII.
SOLUTIO INDEBITI (UNDUE PAYMENT)
Solutio indebiti takes place when something is
received when there is no right to demand it,
and it was unduly delivered through mistake.
The recipient has the duty to return it [Art.
2154, Civil Code].
i. Requisites
1. Something has been unduly delivered
through mistake; and
2. Something was received when there was
no right to demand it [Metrobank v.
Absolute Management Corp., G.R. No.
170498 (2013)]
This situation may cover payment by reason
of a mistake in the construction or application
of a doubtful or difficult question of law [Art.
2155, Civil Code].
The Government also comes within the scope
of solutio indebiti. Tax refunds are based on
such [CIR v. Acesite, G.R. No. 147295
(2007)].
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ii. When Debt not yet Due
If the payer was in doubt whether the debt
was due, he may recover if he proves that it
was not due [Art. 2156, Civil Code].
iii. Responsibility of Two or More
Payees
When there has been payment of what is not
due, their responsibility is solidary [Art. 2157,
Civil Code].
iv. When Money or Thing Delivered is
Owned by Third Person
The payee cannot demand that the payor
prove his ownership of the thing delivered.
Nevertheless, should he discover that the
thing has been stolen and who its true owner
is, he must advise the latter.
If the owner, in spite of such information, does
not claim it within the period of one (1) month,
the payee shall be relieved of all responsibility
by returning the thing deposited to the payor.
If the payee has reasonable grounds to
believe that the thing has not been lawfully
acquired by the payor, the former may return
the same [Arts. 2158 and 1984, Civil Code].
v. Liability of Payee
If in bad faith, he shall be liable:
1. For legal interest if a sum of money is
involved, or
2. For the fruits received or which should
have been received if the thing produces
fruits, and
3. For any loss or impairment of the thing for
any cause, and
4. For damages to the person who delivered
the thing, until it is recovered [Art. 2159,
Civil Code].
If in good faith, he shall be liable:
1. For the impairment or loss of the thing
certain and determinate or its accessories
and accessions insofar as he has thereby
been benefited.
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CIVIL LAW
2. For the return of the price or assign the
action to collect the sum if he has
alienated the same [Art. 2160, Civil Code].
vi. Exemption from the Obligation to
Restore the Payment Unduly Made
A person who, believing in good faith that the
payment was being made of a legitimate and
subsisting claim,
3. destroyed the document, or
4. allowed the action to prescribe, or
5. gave up the pledges, or
6. cancelled the guaranties for his right shall
be exempt from the obligation to restore.
The person who paid unduly may proceed
only against the true debtor or the guarantors
with regard to whom the action is still effective
[Art. 2162, Civil Code].
vii. Presumption
Mistake, Defense
of
Payment
by
The presumption of payment by mistake
arises if something which had never been due
or had already been paid was delivered; but
he from whom the return is claimed may prove
that the delivery was made out of liberality or
for any other just cause [Art. 2163, Civil
Code].
III. SOLUTIO INDEBITI
(UNDUE PAYMENT)
Solutio indebiti takes place when something is
received when there is no right to demand it,
and it was unduly delivered through mistake.
The recipient has the duty to return it [Art.
2154, Civil Code].
A. Requisites
1. Something has been unduly delivered
through mistake; and
2. Something was received when there was
no right to demand it [Metrobank v.
Absolute Management Corp., G.R. No.
170498 (2013)]
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This situation may cover payment by reason
of a mistake in the construction or application
of a doubtful or difficult question of law [Art.
2155, Civil Code].
The Government also comes within the scope
of solutio indebiti. Tax refunds are based on
such [CIR v. Acesite, G.R. No. 147295
(2007)].
B. When Debt not yet Due
If the payer was in doubt whether the debt
was due, he may recover if he proves that it
was not due [Art. 2156, Civil Code].
C. Responsibility of Two or
More Payees
When there has been payment of what is not
due, their responsibility is solidary [Art. 2157,
Civil Code].
D. When Money or Thing
Delivered is Owned by Third
Person
The payee cannot demand that the payor
prove his ownership of the thing delivered.
Nevertheless, should he discover that the
thing has been stolen and who its true owner
is, he must advise the latter.
If the owner, in spite of such information, does
not claim it within the period of one month, the
payee shall be relieved of all responsibility by
returning the thing deposited to the payor.
If the payee has reasonable grounds to
believe that the thing has not been lawfully
acquired by the payor, the former may return
the same [Arts. 2158 & 1984, Civil Code].
E. Liability of Payee
CIVIL LAW
2. For the fruits received or which should
have been received if the thing produces
fruits, and
3. For any loss or impairment of the thing for
any cause, and
4. For damages to the person who delivered
the thing, until it is recovered [Art. 2159,
Civil Code].
If in good faith, he shall be liable:
1. For the impairment or loss of the thing
certain and determinate or its accessories
and accessions insofar as he has thereby
been benefited.
2. For the return of the price or assign the
action to collect the sum if he has
alienated the same [Art. 2160, Civil Code].
F.
Exemption
from
Obligation to Restore
Payment Unduly Made
A person who, believing in good faith that the
payment was being made of a legitimate and
subsisting claim,
1. destroyed the document, or
2. allowed the action to prescribe, or
3. gave up the pledges, or
4. cancelled the guaranties for his right shall
be exempt from the obligation to restore.
The person who paid unduly may proceed
only against the true debtor or the guarantors
with regard to whom the action is still effective
[Art. 2162, Civil Code].
G. Presumption of Payment by
Mistake, Defense
The presumption of payment by mistake
arises if something which had never been due
or had already been paid was delivered; but
he from whom the return is claimed may prove
that the delivery was made out of liberality or
for any other just cause [Art. 2163, Civil
Code].
If in bad faith, he shall be liable:
1. For legal interest if a sum of money is
involved, or
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the
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IV. OTHER QUASICONTRACTS
1. When, without the knowledge of the
person obliged to give support, it is given
by a stranger, the latter shall have a right
to claim the same from the former, unless
it appears that he gave it out of piety and
without intention of being repaid [Art.
2164, Civil Code].
2. When the person obliged to support an
orphan, or an insane or other indigent
person unjustly refuses to give support
to the latter, any third person may
furnish support to the needy individual,
with the right of reimbursement from the
person obliged to give support. The
provisions of this article apply when the
father or mother of a child under eighteen
(18) years of age unjustly refuses to
support him [Art. 2166, Civil Code].
3. When funeral expenses are borne by a
third person, without the knowledge of
those relatives who were obliged to give
support to the deceased, said relatives
shall reimburse the third person, should
the latter claim reimbursement [Art. 2165,
Civil Code].
4. When through an accident or other cause
a person is injured or becomes seriously
ill, and he is treated or helped while he is
not in a condition to give consent to a
contract, he shall be liable to pay for the
services of the physician or other person
aiding him, unless the service has been
rendered out of pure generosity [Art. 2167,
Civil Code]
5. When during a fire, flood, storm, or other
calamity, property is saved from
destruction by another person without the
knowledge of the owner, the latter is
bound
to
pay
the
former
just
compensation [Art. 2168, Civil Code]
6. When the government, upon the failure of
any person to comply with health or safety
regulations
concerning
property,
undertakes to do the necessary work,
024647CIV
CIVIL LAW
even over his objection, he shall be liable
to pay the expenses [Art. 2169, Civil
Code]
7. When by accident or other fortuitous
event, movables separately pertaining to
two or more persons are commingled or
confused, the rules on co-ownership shall
be applicable [Art. 2170, Civil Code]
8. The rights and obligations of the finder of
lost personal property shall be governed
by Arts. 719-720, Civil Code [Art. 2171,
Civil Code]
9. The right of every possessor in good
faith to reimbursement for necessary and
useful expenses is governed by Art. 546,
Civil Code [Art. 2172, Civil Code].
Note: Possessor in good faith may retain
the thing until he has been reimbursed
[Casis].
10. When a third person, without the
knowledge of the debtor, pays the debt,
the rights of the former are governed by
Arts. 1236 and 1237, Civil Code [Art.
2173, Civil Code].
Note: Cannot compel the creditor to
subrogate him in his rights.
11. When in a small community, a majority
of the inhabitants of age decide upon a
measure
for
protection
against
lawlessness, fire, flood, storm or other
calamity, anyone who objects to the plan
and refuses to contribute to the expenses
but is benefited by the project as executed
shall be liable to pay his share of said
expenses [Art. 2174, Civil Code].
12. Any person who is constrained to pay the
taxes of another shall be entitled to
reimbursement from the latter [Art. 2175,
Civil Code].
Note: The list of quasi-contracts in the
Civil Code is not exhaustive. A quasicontractual relation may be forced upon
the parties to prevent unjust enrichment
[PNB v. CA, supra].
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V. ESTOPPEL
C. Persons Bound
A. Definition
Estoppel is effective only as between the
parties thereto or their successors-ininterest [Art. 1439, Civil Code].
A condition or state by virtue of which an
admission or representation is rendered
conclusive upon the person making it, and
cannot be denied or disproved as against the
person relying thereon [Art. 1431, Civil Code].
Estoppel is a bar which precludes a person
from asserting anything contrary to that
which has been established as the truth,
either by the acts of judicial or legislative
officers or by his own deed or representation,
either express or implied [28 Am. Jur. 2d. 599600, cited by De Leon].
B. Kinds of Estoppel
1. Equitable Estoppel or Estoppel in
pais [Art. 1433, Civil Code]
1. Estoppel by silence [Art. 1437, Civil Code]
2. Estoppel by acceptance of benefits
2. Technical Estoppels
1. Estoppel by Deed – a party to a deed is
precluded from asserting as against the
other party, a material fact asserted
therein; [Art. 1433, Civil Code]
2. Estoppel by Record – a party is
precluded from denying the truth of the
matters set forth in a record whether
judicial or legislative and also to deny the
facts adjudicated by a court of competent
jurisdiction.
The government is not estopped by
mistake or error on the part of its officials or
agents.
In Manila Lodge No. 761 Benevolent and
Protective Order of the Elks v. CA [G.R. No. L41001 (1976)], the sale executed by the City
of Manila to Manila Lodge was certainly a
contract prohibited by law, and that estoppel
cannot be urged even if the City of Manila
accepted the benefits of such contract of sale
and the Manila Lodge No. 761 had performed
its part of the agreement, for to apply the
doctrine of estoppel against the City of Manila
in this case would be tantamount to enabling it
to do indirectly what it could not do directly.
D. Cases
Applies
Where
Estoppel
1. Sale or alienation of a thing which
does not belong to the seller or
grantor and later on acquire title
thereto [Art. 1434, Civil Code]
Requisites:
1. The seller or grantor is not the owner of a
thing
2. The person sells or alienates and delivers
it to another
3. The person later on acquires title to the
thing
3. Estoppel by Judgment
Effect: Title passes by operation of law to the
buyer or grantee.
A party to a case is precluded from denying
the facts adjudicated by a court of competent
jurisdiction.
2. Agent sells or alienates a thing
[Art. 1435, Civil Code]
4. Estoppel by laches
Requisite: Person in representation
another sells or alienates a thing
See discussion below on Laches.
of
Effect: The person cannot set up his own title
as against the buyer or grantee.
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3. Title of the lessee or bailee against
the lessor or bailor [Art. 1436, Civil
Code]
Requisite: There exists a lessor-lessee or
bailor-bailee relationship
Effect: The lessee or bailee is estopped from
asserting title to the thing leased or received.
4. Contract between third persons
concerning
immovable
property
where one of them is misled by a
person with respect to the ownership
or real right over the real estate [Art.
1437, Civil Code]
Requisites:
1. There must be fraudulent representation
or wrongful concealment of facts known to
the party estopped;
2. The party precluded must intend that the
other should act upon the facts as
misrepresented;
3. The party misled must have been
unaware of the true facts; and
4. The party defrauded must have acted in
accordance with the misrepresentation
CIVIL LAW
diligence, could or should have been done
earlier; it is negligence or omission to assert a
right within a reasonable time, warranting a
presumption that the party entitled to
assert it either has abandoned it or
declined to assert it [Pangasinan v.
Disonglo-Almazora, G.R. No. 200558 (2015)].
Elements [Pangasinan v. Disonglo-Almazora,
supra]:
1. Conduct on the part of the defendant, or
of one under whom he claims, giving rise
to the situation of which complaint is
made for which the complaint seeks a
remedy;
2. Delay in asserting the complainant’s
rights, the complainant having had
knowledge or notice, of the defendant’s
conduct and having been afforded an
opportunity to institute a suit;
3. Lack of knowledge or notice on the
part of the defendant that the
complainant would assert the right on
which he bases his suit; and
4. Injury or prejudice to the defendant in
the event relief is accorded to the
complainant, or the suit is not held to be
barred.
Prescription
Effect: The guilty party is precluded from
asserting his legal title or interest therein,
provided all these requisites are present.
Laches
Concerned with the Concerned with the
fact of delay
effect of delay
5. One who has allowed another to
assume apparent ownership of
personal property for the purpose of
making any transfer of it, cannot, if
he received the sum for which a
pledge has been constituted, set up
his own title to defeat the pledge of
the property, made by the other to a
pledgee who received the same in
good faith and for value [Art. 1438,
Civil Code]
Question or matter Question of inequity
of time
of permitting the claim
to be enforced
VI. LACHES
Based on a fixed Not based on a fixed
time
time
Statutory
Not statutory
Applies in law
Applies in equity
Cannot be availed Being a defense in
of unless it is equity, it need not be
specifically pleaded specifically pleaded
as an affirmative
allegation
Laches is the failure or neglect for an
unreasonable and unexplained length of
time to do that which, by exercising due
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CIVIL LAW
Trust
Guardianship or
Executorship
Trustees has legal
title to the property
[Estate
of
Cabacungan
v.
Laigo, supra].
Guardians
or
Executors do not
have legal title but
mere
actual
possession
and
limited powers over
the property [Art. 736,
Civil Code].
Trust
Contract
Always
involves
ownership,
embracing a set of
rights and duties
fiduciary
in
character,
which
may be created by
a
declaration
without
consideration
[Estate
of
Cabacungan
v.
Laigo, supra].
A legal obligation
based
on
an
undertaking
supported
by
a
consideration, which
obligation may or may
not be fiduciary in
character [Art. 1305,
Civil Code].
Trust
Debt
The beneficiary of a
trust
has
a
beneficial interest
in the trust property
[Estate
of
Cabacungan
v.
Laigo, supra)].
A creditor has merely
a
personal
claim
against the debtor
[Smith Bell Co v.
Estate of Maronilla,
G.R.
No.
8769
(1916)].
There is a fiduciary
relationship
between a trustee
and a beneficiary
[Estate
of
Cabacungan
v.
Laigo, supra].
There is no fiduciary
relationship between
a debtor and a
creditor [Sec. 438,
Manual for Regulation
of Banks].
TRUSTS
TRUSTS
I. IN GENERAL
A. Definition
A trust is the legal relationship between one
person having an equitable ownership of
property and another person owning the legal
title to such property, the equitable ownership
of the former entitling him to the performance
of certain duties and the exercise of certain
powers by the latter [Estate of Cabacungan v.
Laigo, G.R. No. 175073 (2011)].
1. Characteristics of Trust
1. It is a relationship
2. The relationship is of fiduciary character
3. The relationship is with respect to
property, not one involving merely
personal duties
4. It involves the existence of equitable
duties imposed upon the holder of the title
to the property to deal with it for the
benefit of another
5. It arises as a result of a manifestation of
intention to create the relationship
[Morales v. CA, G.R. No. 117228 (1997)].
2.
Distinguished
Concepts
Trust
from
Other
Stipulation pour
autrui
Refers to a specific Involves
any
property [Art. 1440, stipulation in favor of
Civil Code].
a third person [Art.
1311 (2), Civil Code].
Trust
Condition
Performance
of Performance
or
trust is enforceable accomplishment
is
not enforceable [Art.
1179, Civil Code].
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CIVIL LAW
Trust
Sale
Trust
Lease
An express trust is
not perfected by
mere consent, but
requires the actual
delivery
of
the
naked or legal title
to the trustee for
the relationship of
legality to arise [Art.
1446, Civil Code].
Seller obliges himself
to transfer ownership
and
deliver
possession to the
buyer [Art. 1458, Civil
Code].
Essence of the
contract is for the
trustee to manage
the trust property
as the legal title
holder for benefit or
interest
of
the
beneficiary
[Art.
1440, Civil Code].
Essence
of
the
contract
is
the
enjoyment of the
possession and use
of the leased property
[Sy v. Andoks, G.R.
No. 192108 (2012)].
Benefits enjoyed by
the beneficiary are
usually
of
a
permanent nature
[Estate
of
Cabacungan
v.
Laigo, supra].
Benefits enjoyed by
the lessee are only for
a limited contracted
period [Mañas v.
Nicolasora, G.R. No.
208854 (2020)].
Trust
Donation
An existing legal
relationship which
involves
the
separation of legal
and equitable title
[Estate
of
Cabacungan
v.
Laigo, supra)].
There is a transfer of
property as well as
the disposition of both
legal and equitable
ownership except in
cases of gifts in the
trust [Art. 712, Civil
Code].
The beneficiary of a
trust may demand
performance of the
obligation without
having
formally
accepted
the
benefit of the trust
in public document,
upon
mere
acquiescence
in
the formation of the
trust
and
acceptance under
the
second
paragraph of Art.
1311 [Cristobal
vs. Gomez, G.R.
No.
L-27014
(1927)].
The
donee
must
comply with the legal
requirements
in
accepting
donations [Art. 745,
Civil Code].
Trustee
in
an
express trust only
takes naked or
legal title and for
the
benefit
of
another person, the
beneficiary [Estate
of Cabacungan v.
Laigo, supra)].
Buyer
takes
full
ownership
of
the
subject matter for his
sole benefit [Heirs of
Corazon Villeza v.
Aliangan, G.R. Nos.
244667-69 (2020)].
Constituted merely
as a preparation,
arrangement,
medium, by which
the
trustee
is
expected to pursue
other juridical acts
for the benefit of
the
beneficiary
[Sec. 404, Manual
for Regulation of
Banks].
Entered into for its
own
end,
the
acquiring of title of the
subject matter by the
buyer
[Heirs
of
Corazon Villeza v.
Aliangan, supra].
Trust
Lease
Naked
title
is
transferred to the
trustee;
full
beneficial
ownership is for the
account
of
the
beneficiary [Estate
of Cabacungan v.
Laigo, supra].
Lessor retains naked
title [Vda. de Albar v.
Carandag, G.R. No.
L-13361 (1959)].
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II. GOVERNING RULES
The principles of the general law of trusts
insofar as they are not in conflict with this
Code, the Code of Commerce, the Rules of
Court and special laws are hereby adopted
[Art. 1442, Civil Code].
III. PARTIES
1. Trustor – the person who establishes the
trust
2. Trustee – one in whom the confidence is
reposed as regards property for the
benefit of another person
3. Beneficiary or cestui que trust – person
for whose benefit the trust has been
created [Art. 1440, Civil Code]
IV. KINDS OF TRUST
A. EXPRESS TRUST
Created by the intention of the trustor or of the
parties [Art. 1441, Civil Code]
Elements:
1. Competent trustor or settlor
2. Trustee
3. Ascertainable trust res / Trust property
4. Sufficiently certain beneficiaries [Cañezo
v. Rojas, G.R. No. 148788 (2007)].
Trust is created:
1. By declaration of the trustor or settlor that
he holds property in trust,
2. By conveyance to the trustee,
3. Inter vivos, or
4. By testament [Cañezo v. Rojas, supra].
Proof Required:
1. No express trusts concerning an
immovable or any interest therein may be
proved by parol evidence [Art. 1443, Civil
Code]. Trusts over real property are
unenforceable unless in writing, although
writing is not required for validity, only for
proof.
2. Where the trust is over personal property,
an oral trust is sufficient between the
parties [Art. 1457, Civil Code].
024652CIV
CIVIL LAW
3. But to bind third persons, the trust must be
in a public instrument [Art. 1358 (1) & (3),
Civil Code]
Form of Express Trusts
No particular words are required for the
creation of an express trust, it being sufficient
that trust is clearly intended [Art. 1444, Civil
Code].
Want of Trustee
No trust shall fail because the trustee
appointed declines the designation, unless the
contrary should appear in the instrument
constituting the trust [Art. 1445, Civil Code].
Acceptance by beneficiary
Acceptance by beneficiary is necessary [Art.
1446, Civil Code]. It may be:
1. Express
2. Implied – acceptance by the beneficiary is
not subject to the formal rules of
donations [Cristobal v. Gomez, supra]
3. Presumed – if the trust imposes no
onerous condition upon the beneficiary
Termination of Express Trusts
1. Revocation or modification by the trustor
under a reserved power
2. Rescission
3. Expiration of the period or happening of
the resolutory condition
4. Accomplishment of the purpose or its
becoming impossible or illegal
5. Dissolution by the Court if continuation will
defeat the purpose of the trust
6. Dissolution by the consent of all the
beneficiaries and/or the settlor
7. Merger
8. Upon death of the trustee [Cañezo v.
Rojas, supra].
B. IMPLIED TRUST
Implied trusts come into being by operation of
law [Art. 1441, Civil Code].
The essential idea involves a certain
antagonism between the cestui que trust and
the trustee even where the trust has not
arisen out of fraud or an immoral transaction
[Gaston v. Republic Planters Bank, G.R. No.
77194 (1988)]
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Proof required
An implied trust may be proved by oral
evidence [Art. 1457, Civil Code].
A trust must be proven by clear, satisfactory
and convincing evidence. It cannot rest on
vague and uncertain evidence or on loose,
equivocal or indefinite declarations [De Leon
v. Molo-Peckson, G.R. No. L-17809 (1962)].
As a rule, the burden of proving the existence
of a trust is on the party asserting its
existence, and such proof must be clear and
satisfactorily show the existence of the trust
and its elements. While implied trusts may be
proved by oral evidence, the evidence must
be trustworthy and received by the courts with
extreme caution, and should not be made to
rest on loose, equivocal or indefinite
declarations. Trustworthy evidence is required
because oral evidence can easily be
fabricated [Morales v. CA, supra].
CIVIL LAW
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 [Art. 1448, Civil Code].
2. There is also an implied trust when a
donation is made to a person but it
appears that although the legal estate is
transmitted to the donee, he nevertheless
is either to have no beneficial interest or
only a part thereof [Art. 1449, Civil Code].
3. When land passes by succession to any
person and 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 [Art. 1451, Civil
Code].
1. Kinds of Implied Trusts
a. Resulting Trusts
A trust raised by implication of law and
presumed to have been contemplated by the
parties, the intention as to which is to be found
in the nature of their transaction, but not
expressed in the deed or instrument of
conveyance [Salao v. Salao, G.R. No. L26699 (1976)].
Rules on Resulting Trusts
1. There is an implied trust when property is
sold, and the legal estate is granted to one
party but the price is paid by another for
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4. If two or more persons agree to purchase
property and by common consent the
legal title is taken in the name of one of
them for the benefit of all, a trust is
created by force of law in favor of the
others in proportion to the interest of each
[Art. 1452, Civil Code].
5. 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
[Art. 1453, Civil Code].
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CIVIL LAW
Express and Implied Trust Distinguished
Express Trust
Implied Trust
As to Creation
Created by the intention of the Comes into being by operation of
trustor or the parties [Art. 1441, law [Art. 1441, Civil Code].
Civil Code].
Those, without being expressed,
Created by the direct and are deductible from the nature of
positive acts of the parties by the transaction by operation of law
some writing or deed or will or as matters of equity, independent
by
words
evidencing
an of the particular intention of the
intention to create a trust parties.
[Cañezo v. Rojas, supra)].
As to Proof
An express trust over an An implied trust may be proved by
immovable property or any oral evidence [Cañezo v. Rojas,
interest therein cannot be supra].
proved by parol evidence [Tong
v. Go Kiat Kun, G.R. No.
196023 (2014)].
As to Prescription
Action must be made within ten
(10) years from knowledge of
the
repudiation,
otherwise
prescribed [O’Laco v. CA, G.R.
No. L-58010 (1993)].
In resulting trust: Action must be
made within ten (10) years from
knowledge
of
repudiation,
otherwise prescribed [O’Laco v.
CA, supra].
In constructive trust: It must be
made within ten (10) years from
date of registration [Gatmaytan v.
Misibis Land, G.R. No. 222166
(2020)].
As to Laches
As to Suability
024654CIV
An express repudiation made
known to the beneficiary is
necessary in order that laches
or acquisitive prescription may
bar an action to enforce an
express trust [Cañezo v. Rojas,
supra].
In constructive trusts, even if there
is no repudiation, laches may bar
an action to enforce an implied
trust [Estate of Cabacungan v.
Laigo, supra].
Exception: If there is concealment
[Diaz v. Gorricho and Aguado,
G.R. No. L-11229 (1958)].
Trustee can sue and be sued Trustee cannot sue and be sued
alone [PAL, Inc. v. Heald alone [PAL, Inc. v. Heald Lumber
Lumber Co., G.R. No. L-11497 Co., supra]
(1957)]
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b. Constructive Trusts
A trust not created by any words, either
expressly or impliedly evincing a direct
intention to create a trust, but by the
construction of equity in order to satisfy the
demands of justice [Salao v. Salao, supra].
Rules on Constructive Trusts
1. If the price of a sale of property is loaned
or paid by one person for the benefit of
another and 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 and
compel a conveyance thereof to him [Art.
1450, Civil Code].
2. If an absolute conveyance of property is
made in order to secure the performance
of an obligation 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 [Art.
1454, Civil Code].
3. When any trustee, guardian or other
person holding a fiduciary relationship
uses trust funds for the purchase of
property and 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.
1455, Civil Code].
4. If property is acquired through mistake or
fraud, the person obtaining it is, by force
of law, considered a trustee of an implied
trust by prescription, the title thereto may
be attacked, either directly or collaterally,
by the State which is not bound by any
prescriptive period provided by the Statute
of Limitations [Martinez v. CA, G.R. No. L31271 (1974)].
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CIVIL LAW
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SALES AND LEASE
CIVIL LAW
Contract of Sale
Contract to sell
SALES AND LEASE
Ownership
transferred
delivery
I. Sales
A. Definition
Requisites
and
Essential
Contract of Sale
Article 1458, Civil Code. By the contract of sale
one of the contracting parties obligates himself to
transfer the ownership and to deliver a determinate
thing, and the other to pay therefor a price certain in
money or its equivalent.
Contract to Sell
Article 1478, Civil Code. The parties may stipulate
that ownership in the thing shall not pass to the
purchaser until he has fully paid the price.
Conditional Contract of Sale
Article 1458, Civil Code. xxx A contract of sale may
be absolute or conditional.
is Ownership is only
upon transferred upon full
payment of price
Non-payment is a Full payment is a
resolutory condition positive
suspensive
condition; hence nonpayment would not
give rise to the
obligation to transfer
ownership
Conditional
Contract of Sale
Sale is
perfected
Contract to sell
already No perfected sale yet
A subsequent buyer is
A
subsequent presumed to be a
buyer is presumed buyer in good faith
to be a buyer in
bad faith
The following are the essential requisites of a
valid contract of sale. [Art. 1318, NCC]
Article 1461, Civil Code. Things having a potential
existence may be the object of the contract of sale.
The efficacy of the sale of a mere hope or
expectancy is deemed subject to the condition that
the thing will come into existence.
The sale of a vain hope or expectancy is void.
Article 1462, Civil Code. The goods which form the
subject of a contract of sale may be either existing
goods, owned or possessed by the seller, or goods
to be manufactured, raised, or acquired by the seller
after the perfection of the contract of sale, in this
Title called "future goods."
There may be a contract of sale of goods, whose
acquisition by the seller depends upon a
contingency which may or may not happen.
Article 1465, Civil Code. Things subject to a
resolutory condition may be the object of the
contract of sale.
024657CIV
1. Consent of contracting parties
Consent refers to seller’s consent to transfer
ownership of, and deliver, a determinate thing,
and to buyer’s consent to pay the price
certain.
If the sale involves conjugal property, consent
must be given by both spouses. [Art. 166,
NCC]
Sales without the Element of Consent
1. Expropriation [Art. 1488, NCC]
2. Ordinary Execution Sale [Rule 39, Sec.
15, Rules of Court]
3. Judicial Foreclosure Sale [Rule 68, Rules
of Court], and
4. Extra-Judicial Foreclosure Sale [Act.
3135, as amended]
Consent is manifested by the concurrence of
the offer and the acceptance [Art. 1319,
NCC]
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CIVIL LAW
The person making the offer may fix the time,
place, and manner of acceptance, all of which
must be complied with. [Art. 1321, NCC]
An offer becomes ineffective upon the death,
civil interdiction, insanity, or insolvency of
either party before acceptance is conveyed.
[Art. 1323, NCC]
When the offeror has allowed the offeree a
certain period to accept, the offer may be
withdrawn at any time before acceptance by
communicating such withdrawal, except when
the option is founded upon a consideration, as
something paid or promised. [Art. 1324, NCC]
Unless it appears otherwise, business
advertisements of things for sale are not
definite offers, but mere invitations to make an
offer. [Art. 1325, NCC]
2. Object certain which is the subject
matter of the contract
b. Existing, Future, Contingent
May refer to
1. Existing goods owned or possessed by
the seller;
2. Goods to be manufactured, raised, OR
acquired by the seller – “Future Goods”
[Art. 1462, NCC]
3. Things having potential of existence. [Art.
1461, NCC]. A sale may be made of a
thing which, though not yet actually in
existence, is reasonably certain to come
into existence as the natural increment or
usual incident of something in existence
already belonging to the seller, and the
title will vest in the buyer the moment the
thing comes into existence. [Sibal v.
Valdez, G.R. No. L-26278 (1927)]
Sale of Things Having Potential
Existence
Emptio Rei
Speratei
The things must be licit and the vendor must
have a right to transfer the ownership thereof
at the time it is delivered [Art. 1459, NCC]
a. Must be licit
Licit contemplates that the subject matter be
• Within the commerce of man
• Intransmissible rights [Art. 1347, NCC]
• Does not contemplate a future inheritance,
unless expressly authorized by law
Example of illicit things per se (of its
nature) and per accidens (due to
provisions of law
1. Sale of animals if the use or service for
which they are acquired has been stated
in the contract, and they are found to be
unfit therefore [Art. 1575, NCC]
2. Sale of animals suffering from contagious
diseases [Art. 1575, NCC]
3. Sale of future inheritance is void [Art.
1347, NCC]
4. Sale of land in violation of Constitutional
prohibition against the transfer of lands to
aliens. [Sec. 7, Art. XII of Constitution]
Mere Hope
Vain Hope
Sale of a Sale of a
thing
MERE
expected or HOPE
or
future thing
expectancy
Sale of a
VAIN HOPE
or
expectancy
Valid
General
rule: Valid
Exception:
Void
Example:
Sale of a
valid lottery
ticket
Example:
Sale of a
fake lottery
ticket
Example:
Sale of the
grain a field
may grow in a
given time
Deals with a
Deals with a thing that
future
thing
currently exists – the hope
that
is
or expectancy
currently not
in existence
Subject to the
Not
subject
to
any
condition that
condition; The contract
the thing will
comes
into
existence
exist
immediately
Future
024658CIV
Emptio Rei Spei
thing
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CIVIL LAW
Sale of Things Having Potential
Existence
Emptio Rei
Speratei
Emptio Rei Spei
is certain as
to itself, but
uncertain as
to
quantity
and quality
In case of doubt, the presumption is in favor
of emptio rei speratae since it is more in
keeping with the commutative character of
the contract.
c. Determinate or Determinable
Determinate is when the subject of sale is
particularly
designated
or
physically
segregated from all others of the same class.
[Art. 1460, NCC]
Determinable is when it is capable of being
made determinate at the time the contract was
entered into without the necessity of a new or
further agreement between the parties. [Art.
1460, NCC]
Failure to state the exact location of the land
does not make the subject matter
indeterminate, so long as it can be located.
[Camacho v. CA, G.R. No. 127520 (2007)]
3. Cause of the obligation which is
established
This refers to the “price certain in money or its
equivalent” [Art. 1458, NCC]. It does not
include goods or merchandise although they
have their own value in money.
However, the words “its equivalent” have been
interpreted to mean that payment need not be
in money, so that there can be a sale where
the thing given as token of payment has “been
assessed and evaluated and [its] price
equivalent in terms of money [has] been
determined.” [De Leon]
024659CIV
a. Requisites of a valid price
1. Certain or ascertainable at the time of
perfection
2. In money or its equivalent
• If price is partly in money and partly
in another thing: determine manifest
intention of the parties to see whether
it was barter or sale. [Art. 1468, NCC]
• If intention does not clearly appear,
it shall be considered a barter if the
value of the thing exceeds the amount
of money or its equivalent. [Art. 1468,
NCC]
3. Real
• When buyer has an intention to pay
and the seller has an expectation to
receive the price
• If simulated: Sale is VOID; BUT act
may be shown to have been a
donation or some other act or
contract. [Art. 1471, NCC]
• If Price is false (i.e., when the real
consideration is not the price stated in
the contract): Sale is void UNLESS
proved to be founded on another true
and lawful price [Art. 1353, NCC]
b. How
certain
price
is
determined/when
1. Fixed by agreement of the parties and
cannot be left to the discretion of one of
the parties, BUT if such is accepted by
the other, sale is perfected. [Art. 1473,
NCC]
2. Determination is left to the judgment of a
specified person. [Art. 1469, NCC]
General Rule: Price fixed by 3rd persons
designated by the parties is binding upon
them
Exceptions [Art. 1469, NCC]:
If 3rd person is unable or unwilling:
Sale is inefficacious unless parties
subsequently agree about the price.
• If 3rd person fixed the price in bad
faith/by mistake: Courts may fix price
(but mere error in judgment cannot serve
as basis for impugning price fixed)
•
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•
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If 3rd person is prevented from fixing
price by fault of seller or buyer:
Innocent party may avail of remedies
(rescission or fulfillment of obligation, with
damages)
If 3rd person disregards specific
instructions/data/procedure,
thereby
fixing an arbitrary price
The price is made in reference to another
thing, or when the price fixed is the price
of the commodity on a definite day, or in a
particular exchange or market, or when
the amount fixed is above or below the
price on such day, exchange or market.
[Art. 1472, NCC]
General Rule: When the price is not certain,
the contract is without effect and no obligation
arises from it. [Art. 1474, NCC]
Exception: When the thing is already
delivered, the buyer must pay a reasonable
price therefore. This exception only arises
when the means contemplated by the parties
for fixing the price have become ineffectual.
[Art. 1474, NCC]
c. Inadequacy of price
Assuming that said consideration of P1.00 is
suspicious, this circumstance, alone, does not
necessarily justify the inference that Reyes
and the Abellas were not purchasers in good
faith and for value. Neither does this inference
warrant the conclusion that the sales were null
and void ab initio. Indeed, bad faith and
inadequacy of the monetary consideration do
not render a conveyance inexistent, for the
assignor's liberality may be sufficient cause
for a valid contract [Ong v. Ong, G.R. No. L67888, (1985)].
d. When no price is agreed upon
1. Sale is inefficacious [Art. 1474, NCC]
2. But if the thing or part thereof has been
delivered and appropriated by the buyer,
he must pay a reasonable price therefore
• What is a reasonable price is a
question of fact dependent on the
circumstances of each particular case.
[Art. 1474, NCC]
024660CIV
•
The reasonableness of a price may be
determined on the basis of a
company’s balance sheet showing the
book value or fair market value of its
shares. [Philippine Free Press v. CA,
G.R. No. 132864 (2005)]
3. Generally, the reasonable price is the
market price at the time and place fixed by
the contract or by law for delivery of
goods.
e. False price vs simulated price
False Price
Simulated Price
Price stated in the Price stated in the
contract is not the contract
is
not
true price.
intended to be paid.
Parties intended to be Parties
never
bound.
intended to be bound.
Effect: Binds the
parties to their real
agreement when it
does not prejudice
3rd persons and is
not intended for any
purpose contrary to
law, morals, public
policy, etc.
Effect: Void for lack
of
cause
or
consideration, but can
be shown as a
donation or some
other contract. Parties
may recover from
each other what they
may
have
given
under the contract.
4. Perfection
a. Meeting of Minds
Being a consensual contract, the contract of
sale is perfected at the moment there is a
“meeting of the minds” upon the thing which is
the object of the contract and upon the
price. [Art. 1475, NCC]
See discussion on consent above
b. Option contracts
Option - An accepted unilateral promise to
buy or to sell a determinate thing for a price
certain is binding upon the promissor if the
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promise is supported by a consideration
distinct from the price. [Art. 1479(2), NCC]
The option is not the contract of sale itself.
The optionee has the right, but not the
obligation, to buy. Once the option is
exercised timely, i.e., the offer is accepted
before a breach of the option, a bilateral
promise to sell and to buy ensues and both
parties are then reciprocally bound to comply
with their respective undertakings. [Ang Yu v.
CA, G.R. No. 109125 (1994)]
Consideration - consideration for an optional
contract is just as important as the
consideration for any other kind of contract. If
there was no consideration for the contract of
option, then it cannot be enforced any more
than any other contract where no
consideration exists. [Enriquez dela Cavada v.
Diaz, G.R. No. 11668 (1918)]
an action for specific performance without
thereby negating the indispensable element of
consensuality in the perfection of contracts.
[Ang Yu v. CA, G.R. No. 109125 (1994)]
d. Mutual promise to buy and sell
The obligation is not to enter into a sale, but
rather to negotiate in good faith for the
possibility of entering into a sale. When the
promissor has in fact negotiated in good faith,
but the parties’ minds could not meet on the
price and the terms of payment, then
promissor has complied with his obligation
[Villanueva].
B. Contract of Sale
1. Donation
Sale
The offeror is still free and has the right to
withdraw the offer:
• If the period is not itself founded upon or
supported by a consideration and withdrawn
before its acceptance,
• If an acceptance has been made, before the
offeror’s coming to know of such fact, by
communicating that withdrawal to the offeree.
There is a breach of contract when the offer
was withdrawn during the agreed period if the
period has separate consideration since the
contract of “option is deemed perfected.”
c. Right of first refusal
While the object might be made determinate,
the exercise of the right, however, would be
dependent not only on the grantor’s eventual
intention to enter into a binding juridical
relation with another but also on terms,
including the price, that obviously are yet to be
later firmed up.
Even on the premise that such right of first
refusal has been decreed under a final
judgment, like here, its breach cannot justify
correspondingly an issuance of a writ of
execution under a judgment that merely
recognizes its existence, nor would it sanction
024661CIV
Onerous
Donation
Gratuitous
Perfected by mere Requires
consent
consent
and must comply
with the formalities
required by law for
its validity. [Art. 745,
NCC]
The property sold is
replaced
by
the
equivalent monetary
consideration; there
is no diminution of
the seller’s estate
Requires that there
be a diminution of
the estate of one
party (donor) and
the enrichment of
the other party’s
estate (donee)
When the price of the contract of sale is
simulated, the sale may be void but the act
may be shown to have been in reality a
donation or some other contract. [Art. 1471,
NCC]
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, NCC]
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v. Engineering Equipment and Supply Co.,
G.R. No. L-27044 (1975)]
2. Barter
Sale
Barter
Consideration is price Consideration
in money or its another thing
equivalent
4. Dacion en Pago
is
Sale
Dacion
No pre-existing debt
BARTER = where the value of the thing given
as part of the consideration exceeds the
amount of money given or its equivalent
SALE = where the value of the thing given as
part of the consideration equals or is less than
the amount of money given
Rules to determine whether contract is
sale or barter:
1. Manifest intention of the parties: Even if
the acquisition of a thing is paid for by
another object of greater value than the
money component, it may still be a sale
and not a barter, when such was the
intention of the parties
2. When intention does not appear and
consideration consists partly in money and
partly in another thing
3. Contract for a Piece of Work
Sale
Contract for a Piece
of Work
Goods
are Goods
are
manufactured
or manufactured
for
procured
in
the customer upon his
ordinary course of special order
business
For
the
general For
a
market, whether on customer
hand or not
specific
Creates
obligation
Pre-existing debt
an Extinguishes
the
obligation (mode of
payment)
Price is more freely
agreed upon, fixed
by the parties
Price is the value of
the thing given
Buyer has to pay the Payment is received by
price
the
debtor
before
contract is perfected
5. Agency to Sell
Sale
Buyer receives
goods as owner
Agency to Sell
the Agent receives good
as goods of the
principal
Buyer pays the price
Agent delivers the
price which he got
from his principal
Buyer cannot return Agent cannot return
the object sold as a the goods
general rule
Seller warrants
thing sold
Not unilaterally
revocable
the Agent
makes
warranty
no
Essentially revocable
Governed by Statute Not within Statute of
of Frauds
Frauds
6. Lease
When each product or system executed is
always UNIQUE and could not mass-produce
the product because of its very nature, such is
a contract for a piece of work. [Commissioner
024662CIV
Sale
Lease
Ownership transferred No
transfer
by delivery
ownership
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Sale
Permanent
Lease
Temporary
Seller must be owner Lessor need not be
at time of delivery
owner
C. Earnest Money
Earnest Money is the sum paid in advance of
the purchase price agreed upon by the parties
in a contract of sale, given by the buyer to the
seller, to bind the latter to the bargain
Option Money
Earnest Money
Separate and distinct Part of purchase price
consideration
from [Art. 1482, NCC]
the purchase price
Given when sale is Given only when
not yet perfected
there is already a sale
When
given,
the
would-be-buyer is not
required to buy, but
may even forfeit it
depending on the
terms of the option
When
given,
the
buyer is bound to pay
the balance [Limson
v. CA, G.R. No.
135929 (2001)]
Grantee of option is Buyer manifests his
still
undecided earnest desire to buy
whether or not to buy the property
or sell the property
[Baviera]
D. Double Sales [Art. 1544,
NCC]
General Rule: Prior tempore, prior jure (“First
in time, priority in right”) applies.
Requisites [Cheng v. Genato, G.R. No.
129760 (1998)]
1. 2 or more valid sales;
2. Same subject matter;
3. 2 or more buyers with conflicting interests
over the rightful ownership of the thing
sold;
4. Same seller.
There is no double sale when:
• Not all the elements of a sale are present
• The principle of prior tempore, prior jure
(he who is first in time is preferred in right)
should apply
• The two different contracts of sale are
made by two different persons, one of
them not being the owner of the property
sold.
• The land sold is not yet registered under
the Torrens system
• The first sale occurred when land was not
yet registered, and the second sale was
done when the land was already
registered – prior tempore, prior jure
should apply
Rules on Preference
Personal property
1. First possessor in good faith
Real property
1. First registrant in good faith: second
buyer must register the document in good
faith, otherwise, he does not have a better
right
2. First possessor in good faith
3. Person with oldest title in good faith
Caveat emptor: One who purchases real
property which is in actual possession of
others should make some inquiry concerning
the rights of those in posses
E. Risk of Loss
The Code Commission followed the common
law rule that the OWNER bears the risk of
loss in absence of stipulation to the contrary,
while retaining the rule in Roman Law which
requires delivery by the seller, whether actual
or constructive, to transfer OWNERSHIP to
the buyer.
Article 1263, Civil Code: In an obligation to deliver
a generic thing, the loss or destruction of anything
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of the same kind does not extinguish the obligation.
thereto. [Roman v. Grimalt, G.R. No. L-2412
(1906)]
General Rule: Risk of loss shall be borne by
the owner (Note: owner is not always the
seller)
c. At Time of Perfection [Arts. 1493 and
1494, NCC]
Exceptions
1. When ownership of the goods has been
transferred to him, the buyer bears the risk
of loss.
2. When there is a stipulation to the
contrary.
3. When the seller retains the title for
security, the buyer bears the risk of loss.
4. When there is delay in the delivery, the
party in fault bears the risk of loss.
5. When sale is for “approval or trial”, the
seller bears the risk of loss until the buyer
approves or the trial period lapses.
6. When sale is on “return”, the buyer bears
the risk of loss until he returns it.
Article 1493, Civil Code If at the time the contract
of sale is perfected, the thing which is the object of
the contract has been entirely lost, the contract
shall be without any effect.
Effects of the Contract When the Thing
Sold has been Lost
a. Res Perit domino [Arts. 1263, and
1189 NCC]
Owner bears the risk of loss and deterioration.
The ownership is transferred only upon
delivery.
b. Prior to Perfection of Contract
Seller bears risk of loss and deterioration.
Basis: Res perit domino
When there is no proof that the parties have
agreed as to the thing which should be the
subject of the contract and that one has
accepted the terms proposed by the other, it
cannot be said that the contracting parties
have given their mutual consent as to the
subject and consideration of the contract. The
disappearance or loss of property which the
owner intended or attempted to sell can only
interest the owner, who should suffer the loss,
and not a third party who has acquired no
rights nor incurred any liability with respect
024664CIV
But if the thing should have been lost in part only,
the vendee may choose between withdrawing from
the contract and demanding the remaining part,
paying its price in proportion to the total sum
agreed upon.
Article 1494, Civli Code. Where the parties
purport a sale of specific goods, and the goods
without the knowledge of the seller have perished
in part or have wholly or in a material part so
deteriorated in quality as to be substantially
changed in character, the buyer may at his option
treat the sale:
(1) As avoided; or
(2) As valid in all of the existing goods or in so
much thereof as have not deteriorated, and as
binding the buyer to pay the agreed price for the
goods in which the ownership will pass, if the sale
was divisible.
Seller bears risk of loss and deterioration.
Basis: Res perit domino.
Total Loss
Partial Loss (Or
loss which results
in substantial
change in
character)
Contract is void Buyer may withdraw
because the object from the contract
did not exist at the
time
of
the OR
transaction.
Buy the remainder at
a proportionate price
Art. 1496 of the NCC which provides that “in
the absence of an express assumption of risk
by the buyer, the things sold remain at seller’s
risk until the ownership thereof is transferred
to the buyer,” is applicable to this case, for
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there was neither an actual nor constructive
delivery of the thing sold, hence, the risk of
loss should be borne by the seller, Norkis,
which was still the owner and possessor of the
motorcycle when it was wrecked. This is in
accordance with the well-known doctrine of
res perit domino. [Norkis v. CA, 1991]
d. After Perfection but Before Delivery
General Rule: Stipulations in the contract will
govern
Exception: In the absence of stipulation,
there are two conflicting views:
1. Res perit creditori or the buyer bears the
risk of loss.
• This is an exception to the rule of res
perit domino
• Basis: Art. 1504 only covers goods.
• Pursuant to Art. 1262 of the Civil
Code, if the thing is destroyed without
the fault of the debtor/seller, the
obligation to pay shall subsist
2. Res perit domino or the seller bears the
risk of loss.
• Basis: The rule on loss is different
from the rule on deterioration for the
loss would be for the account of the
seller, while the deterioration would be
for the account of the buyer
• In
reciprocal
obligations,
the
extinguishment of the obligation due to
loss of the thing extinguishes the
entire juridical relation
e. After Delivery
Article 1504, Civil Code. Unless otherwise
agreed, the goods remain at the seller's risk until
the ownership therein is transferred to the buyer,
but when the ownership therein is transferred to the
buyer the goods are at the buyer's risk whether
actual delivery has been made or not, except that:
(1) Where delivery of the goods has been made to
the buyer or to a bailee for the buyer, in pursuance
of the contract and the ownership in the goods has
been retained by the seller merely to secure
performance by the buyer of his obligations under
the contract, the goods are at the buyer's risk from
the time of such delivery;
CIVIL LAW
through the fault of either the buyer or seller the
goods are at the risk of the party in fault.
General Rule: Buyer bears risk of loss and
deterioration.
Exceptions: [Art. 1504 (1) and (2), NCC]
a. Where delivery has been made either to the
buyer or to the bailee for the buyer, but
ownership in the goods has been retained by
the seller merely to secure performance by
the buyer of his obligations under the contract;
and
b. Where actual delivery has been delayed
through the fault of either the buyer or seller,
the goods are at the risk of the party in fault.
Summary Of Rules
Before
Seller bears risk of loss or
Perfection deterioration
Seller also benefits from the
fruits and improvements therein
At
Entire Loss will be ineffective
Perfection Substantial
Loss
or
Deterioration shall allow the
buyer to withdraw or buy the
remainder at a proportionate
price.
After
Seller bears risk of loss
Perfection Buyer
bears
risk
of
deterioration
Buyer also benefits from the
fruits and improvements therein
Before
Delivery
Buyer bears risk of loss or
deterioration
Buyer also benefits from the
fruits and improvements therein
F. Breach of Contract of Sale
1. Remedies
The following remedies arise from the
bilateral nature of the contract of sale:
1. Specific performance
2. Rescission
(2) Where actual delivery has been delayed
3. Damages
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General Rule: Rescission of a contract will
not be permitted for a slight or casual breach,
but only for such substantial and fundamental
breach as would defeat the very object of the
parties in making the agreement [Song Fo &
Co. v. Hawaiian-Philippine Co., G.R. No.
23769 (1925)].
a. Remedies of the Seller
Quick Summary: Remedies of Seller
Movables
Damages, Rescission,
Specific Performance
Price
through
Special Remedies:
Possessory lien, Stoppage in transitu,
Resale, Rescission
Movables on installment
Exact fulfillment, Cancellation of the Sale,
Foreclosure of Chattel Mortgage
Immovables
Price through Specific performance,
Rescission (for anticipatory breach and for
non-payment)
Immovables on installment
Contract of Sale: Rescission through Art.
1592, NCC
Contract to Sell: Rescission through
Maceda Law (RA 6552)
REMEDY
Movables
Damages, Rescission, Price
through
Specific
Performance
Special Remedies:
Possessory lien, Stoppage
in
transitu,
Resale,
Rescission
Movables
on
024666CIV
REMEDY
Installment
Foreclosure of Chattel
Mortgage
Immovables Price through Specific
performance, Rescission (for
anticipatory breach and for
non-payment)
Immovables Contract of Sale: Rescission
on
through Art. 1592, NCC
Installment
Contract to Sell: Rescission
through Maceda Law (RA
6552)
2. Sale of Goods
Action for Price [Art. 1595, NCC]
1. When the ownership of the goods has
passed to the buyer and he wrongfully
neglects or refuses to pay for the price
2. When the price is payable on a certain
day and the buyer wrongfully neglects to
pay such price, whether or not ownership
has passed
• Buyer can set up the defense that the
seller, at any time before judgment in
such action, could not or did not intend
to deliver the goods.
3. When the goods cannot readily be resold
for a reasonable price, and the buyer
wrongfully refuses to accept the goods,
whether or not ownership has passed
Unless the contrary appears, payment and
delivery are presumed to be concurrent acts,
and the obligation of each party to perform the
contract is dependent upon the simultaneous
performance by the other party.
If ownership has not yet passed to the buyer,
the seller cannot maintain an action for the
price, unless it involves (a) or (c).
Title to goods passes from the moment the
goods are placed at the buyer’s disposal when
refusal to accept is without just cause.
Exact fulfillment,
Cancellation of the Sale,
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Action for Damages [Art. 1596, NCC]
When ownership has not yet passed and the
buyer, without lawful cause, neglects or
refuses to ACCEPT and PAY for the goods.
International Bank, G.R. No. L-10658
(1918)]
2. Breach is slight or casual [Song Fo & Co.
v. Hawaiian-Phil. Co., supra]
General Rule: Measure of damages is the
ESTIMATED LOSS directly and naturally
resulting in the ordinary course of events from
the buyer’s breach.
The
seller
cannot
unilaterally
and
extrajudicially rescind a contract absent
express stipulation to do so, except as
provided in Art. 1597.
Exceptions:
1. Where there is an available market for
goods: Difference between the contract
price and the market price. The market
price is fixed at the time the goods ought
to have been accepted, or if no time was
fixed, at the time of refusal to accept.
3. Special Remedies of the Unpaid
Seller [Arts. 1525-1535 of the NCC]
Note:
When
there
are
special
circumstances
showing
proximate
damages of a greater amount than the
difference between the contract price and
market price, the seller is entitled to such
a higher amount of damages when such
damages may be reasonably attributed to
the non-performance of the obligation
[par. 3, Art. 1596 read with par. 2, Art.
2201, NCC].
2. Where labor or expense of material
amount is necessary on the part of the
seller to perform the contract: Cost of
labor performed or expenses made before
receiving notice of buyer’s repudiation,
and unrealized profit.
Rescission by giving the buyer notice of
the election to rescind [Art. 1597, NCC]
When the goods have not yet been delivered
to the buyer, and the buyer repudiated the
performance of his obligations, or has
committed a breach of the contract of sale.
Under this rule, rescission would bar an action
on the contract because it means cancellation
of the contractual obligations between the
parties.
1.
2.
3.
4.
Possessory lien;
Stoppage in transitu;
Special right of resale; and
Special right to rescind
Note: These special remedies have a
hierarchical application. The special rights to
resell and to rescind can be availed of by the
unpaid seller only when either of the two (2)
prior rights of possessory lien or stoppage in
transitu have been exercised by the unpaid
seller.
Definition of an Unpaid Seller
1. When the whole of the price has not been
paid or tendered;
2. When a bill of exchange or other
negotiable instrument has been received
as conditional payment, and the condition
on which it was received has been broken
by reason of the dishonor of the
instrument, the insolvency of the buyer, or
otherwise [Art. 1525, NCC].
Unpaid Seller also includes:
1. The agent of the seller to whom the bill of
lading was endorsed,
2. The consignor or agent who had paid the
price or is responsible for the price,
3. Any other person who is in the position of
a seller (i.e. buyer who paid the price and
had a right to return the goods) [Art. 1525,
NCC].
The unpaid seller’s right to rescind for nonPossessory lien over the goods
performance is not absolute. They are not
Right to retain possession of goods until
allowed to rescind when:
payment or tender of the whole price, or
1. There are 3rd persons possessing the
unless he agrees to sell on credit [Arts. 1503
objects of the contract to whom no bad
1526-1529, 1535, NCC].
faith is imputable [Ocejo Perez & Co. v.
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When lien available
1. The seller is unpaid
2. The unpaid seller has possession over the
thing
3. Ownership of the thing has passed to the
buyer
4. Any of the following: [Art 1527, NCC]
a. Goods are sold without stipulation as
to credit
b. Goods are sold on credit, but term of
credit has expired
c. Buyer becomes insolvent
The seller may exercise his right of lien
notwithstanding that he is in possession of the
goods as agent or bailee for the buyer [par. 2,
Art. 1527, NCC].
When unpaid seller loses his lien [Art.
1529, NCC]
1. Seller delivers goods to carrier or other
bailee for transmission to the buyer
without reserving ownership or right of
possession (i.e. under a straight or nonnegotiable bill of lading)
2. Buyer or his agent lawfully obtains
possession of goods
3. Seller waives the lien
• But it is not lost with respect to the
remainder of the goods when only
partial delivery is made (unless such is
symbolic delivery of the whole)
• It is not lost by the mere fact that seller
obtained a judgment for the price
When Lien May Be Revived After Delivery
1. If the buyer refuses to receive the goods
after the same are delivered to the carrier
or other bailee on his behalf, though the
seller has parted with both ownership and
possession. Here, the seller may reclaim
the goods and revest the lien [par. 1 (2).
Art 1531, NCC].
2. If the buyer returns the goods in wrongful
repudiation of the sale, and the seller, in
accepting the goods from the buyer, says
he does not assent to the rescission.
CIVIL LAW
specific tax on the goods [Arts. 2241,
2247, NCC].
Right of stoppage in transitu
An extension of the lien for the price entitles
the unpaid seller to resume possession of the
goods while they are in transit before the
goods come in possession of the vendee
[Arts. 1530-1532, 1535, 1636(2) NCC].
Requisites for the exercise of stoppage in
transitu
1. The seller is unpaid
2. The buyer is insolvent
3. The goods are in transit
4. The seller either takes actual possession,
or gives notice of claim to the carrier or
other person possessing the goods
5. The seller must surrender the negotiable
instrument or title, if any, issued by the
carrier/bailee
6. The seller must bear the expenses of the
delivery of the goods after exercise of
such right.
When Goods Are In Transit [par. 1, Art
1531, NCC]
1. From the time of delivery to the carrier or
other bailee by the seller, for the purpose
of transmission to the buyer, until the
buyer or his agent takes such delivery
from the carrier.
2. Even when goods have reached their
ultimate destination, if buyer rejects them
and carrier retains possession
To terminate transit by delivery to a
middleman, delivery must be to keep, not to
transport.
In case of misdelivery, the goods are still
considered in transit, hence, the seller may
still exercise his right pursuant to Art. 1523.
When Goods are No Longer in Transit [par.
2, Art. 1531, NCC]
1. Buyer obtained delivery of the goods
before they have reached their appointed
Possessory lien is lost after the seller
destination
loses possession but his lien as an unpaid
2. Goods have arrived at the appointed
seller remains. His preference can only be
destination,
and
the
carrier/bailee
defeated by the government’s claim to the
acknowledges to hold the goods on behalf
of the buyer
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3. Goods have arrived at the appointed
destination, but carrier wrongfully refuses
to deliver to buyer/his agent
Note: If the goods are delivered to a ship,
freight train, truck, or airplane chartered by the
buyer, it is a question depending on the
circumstances of the particular case, whether
they are in the possession of the carrier as
such or as agent of the buyer.
How Right is Exercised [Art. 1532, NCC]
1. By obtaining actual possession of the
goods
2. By giving notice of his claim to
the
carrier/other bailee who has
possession of the goods
• Carrier must redeliver goods to
seller, or according to his instructions
• Carrier not obliged to redeliver until
the negotiable document of title, if any,
has been surrendered for cancellation
Effect When Buyer Has Sold the Goods
[Art. 1535, NCC]
General Rule: Seller’s right to stoppage in
transitu is not affected even if buyer has sold
or disposed of the goods unless the seller has
given his assent thereto.
Exceptions:
1. When seller has given consent thereto
2. When a negotiable document of title has
been issued for the goods to a purchaser
for value in good faith.
Special right of resale
Available to unpaid seller who has a right of
lien or who has stopped the goods in transitu
[Art. 1533, NCC].
When available
When the unpaid seller has either a right of
lien or has stopped the goods in transitu and
under any of the following conditions:
1. The goods are perishable in nature
2. The right to resell is expressly reserved in
case the buyer should default
3. The buyer delays in paying the price for
an unreasonable time
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Note: The right to resell the goods is not
mandatory, but permissive.
How exercised
1. He must do so within a reasonable time
and in such manner as to obtain the best
price possible.
2. The place of sale shall be at the place of
delivery, except if the seller cannot sell the
thing at a fair price at the place of delivery.
3. Resale is deemed to be a fair sale if it is
undertaken
in
accordance
with
established business practices, with no
attempt to take advantage of the original
buyer.
4. Resale may be in a private or public sale,
but seller cannot buy directly or indirectly.
5. For resale to be valid, buyer need not be
notified of an intention to resell or the time
and place of the resale.
Exception: If the ground for resale is failure to
pay for an unreasonable amount of time
• The seller must exercise reasonable
judgment in making the sale.
Effects of Resale:
1. Seller is no longer liable to the original
buyer upon the contract of sale or for any
profit made by the resale
2. Buyer at resale acquires good title as
against the original owner
3. In case resale is at a loss, seller is entitled
to recover the difference from the original
buyer
4. Seller may recover damages from original
buyer for breach of contract
Special right to rescind
Return of the title over the undelivered goods
to the seller, and right to recover damages for
breach of contract [Art. 1534, NCC]
When available
When the unpaid seller has either a right of
lien or has stopped the goods in transitu and
under any of the following conditions:
1. Seller expressly reserved his right to
rescind in case buyer defaults
2. Buyer has been in default in payment for
an unreasonable time
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Transfer of title shall not be held to have been
rescinded by the unpaid seller until he
manifests by notice to the buyer or some other
overt act an intention to rescind.
Communication of rescission to buyer is not
always necessary (it can be an overt act). But
giving/failure to give notice is relevant in
determining reasonableness of time given to
the buyer to make good his obligation under
contract [De Leon].
Sale of Immovables
Rescission for Anticipatory Breach [Art. 1591,
NCC]
Note: This is applicable to both cash sales
and sales in installments.
Requisites
1. There is delivery of immovable property
2. Vendee has not yet paid the price; and
3. Vendor has reasonable grounds to fear
the loss of property and the loss of price
2. Effect of demand: Court
grant buyer a new term
may
not
Non-forfeiture of payments (PD 957, Sec.
23 and 24)
No installment payment made by the buyer
shall be forfeited in favor of the owner or
developer of the condominium or subdivision
project, after due notice, when the buyer
desists from paying due to the failure of the
developer or owner to develop the project
according to the approved plans or within the
time limit stated.
Buyer’s Remedy: At his option, he may
reimburse the total amount paid including
amortization interest with interest thereon at
the legal rate.
If the buyer fails to pay the installments for
reasons other than the failure of the owner or
developer to develop the project, his rights
shall be governed by RA 6552.
If there is no such reasonable ground, Art.
1191 applies (specific performance or
rescission with damages).
a. Remedies of the Buyer
Court has no discretion to compel the seller to
wait for the expiration of the period to pay, or
to grant the buyer more time to pay.
Remedy of
preserve
1. Sale of Movables
breach
of
obligation
to
If thing is lost:
Specific Performance + Damages or
Rescission + Damages [Art. 1191, NCC]
Without fault
of seller
Seller may choose between specific
performance and rescission, with damages in
either case. Court has discretion, for a just
cause, to give the buyer more time to pay
even if the seller chooses rescission.
Through fault of
seller/Through Fortuitous
Event (if seller is liable)
NO BREACH
Obligation is
extinguished
Damages
If seller chose specific performance, and such
becomes impossible, he may still avail of
rescission. If absolute sale, seller must make
a demand for rescission.
1. Judicially, OR
2. By a notarial act
A thing is lost when it:
1. Perishes;
2. Goes out of commerce of man; or
3. Disappears in such a way that its
existence is unknown or it cannot be
recovered
Demand necessary even if automatic
rescission is stipulated
1. Effect of lack of demand: Buyer can
still pay
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If thing deteriorates
2. Sale of Immovables [Arts. 1539-1543]
Without fault of
seller
NO BREACH
Impairment shall be
borne by buyer
Through fault of
seller
Rescission +
damages
OR
Specific
performance +
damages
Remedy of breach of obligation to deliver
Delivery of Wrong Quantity [Art. 1522,
NCC]
LESS THAN what was
contracted
MORE THAN
what was
contracted
Reject the goods
Reject the
excess
OR
OR
Accept and pay:
Reject the
At contract rate if buyer whole, if
accepts knowing that indivisible
seller will not perform in
full
OR
At fair value if goods were
used before knowing that
seller will nott be able to Accept the
whole and pay
perform in full
at contract
Buyer becomes the owner rate
of the whole mass and the
seller is bound to make
good the deficiency [Art.
1464, NCC]
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If at a rate of a certain price per unit of
measure or number
Less (in area or
quality) than what
was agreed upon
Proportional
reduction of price
More (in area or
quality) than what
was agreed upon
Reject the excess
OR
OR
Accept the whole
Rescission, if:
and pay at contract
a. Lack in area is at rate
least 1/10 of what is
stated, or inferior
value of thing sold
exceeds 1/10 of
price
b. Buyer would
have bought
property has
been aware of
inferior quality
smaller area
not
the
he
the
or
Note: This rule also applies to judicial sales
[Art. 1541, NCC].
If for a lump sum
Everything is within
boundaries, even if less
or more than stated area
Not
everything is
within the
boundaries
No remedy
Proportional
reduction in
price
Where both the area and
the boundaries of the
immovable are declared,
the area covered within
the boundaries of the
immovable prevails over
the stated area [Rudolf
Lietz, Inc. v. CA, G.R. No.
122463 (2005)]
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CIVIL LAW
4. Recto Law: Sale of Movables on
Installment [Arts. 1484-1486, NCC]
c. Foreclosure of Chattel Mortgage if
vendee fails to pay 2 or more
installments
WHEN APPLICABLE
Sale of movables in installment
The rule is intended to apply to sales of
movables, the price of which is payable in 2 or
more installments, but not to straight-term
sales where the price is payable in full, after
making a down payment because the law
aims to protect improvident buyers who may
be tempted to buy beyond their means [Levy
Hermanos v. Gervacio, G.R. No. L-46306
(1939)].
Lease of personal property with option to
buy
• When lessor has deprived the lessee of
the possession or enjoyment of the thing
(i.e. lessor files a complaint for replevin
against lessee).
• Also applies when seller assigns his credit
to someone else.
ALTERNATIVE
AND
EXCLUSIVE
REMEDIES
Note: The exercise of one remedy bars the
exercise of the others.
a. Specific Performance
General Rule: When the seller has chosen
specific performance, he can no longer seek
for rescission or foreclosure of the chattel
mortgage
Exception: If specific performance has
become impossible, the seller may still choose
rescission [Art. 1191, NCC]
b. Cancellation of sale if vendee fails to
pay 2 or more installments
When the seller cancels the sale by
repossessing the property sold, he is barred
from exacting payment for its price.
Note: It can only be carried out when he who
demands rescission can return whatever he
may be obliged to restore [Art. 1385, NCC].
024672CIV
If seller chooses this remedy, he shall have no
further action to recover any unpaid balance,
and any stipulation to the contrary shall be
void.
5. Maceda Law
RA 6552 does NOT apply to:
• Industrial lots
• Commercial buildings
• Sale to tenants under Agricultural Reform
Code [RA 3844]
• Sale of lands payable in straight terms
[Sec. 3, RA 6552]
Rights of the Buyer
The law imposes additional requirements on
the part of the seller for a valid rescission.
a. If buyer has paid at least 2 years of
installments then defaults:
• Buyer has right to a grace period of 1
month per year of installment
payment made BUT the buyer may
only avail of the grace period once
every 5 years
• Buyer has right to the refund of Cash
Surrender Value (CSV): 50% of total
amount paid + 5% for every year
after the first 5 years of
installments BUT total CSV should
not be greater than 90% of total
amount paid
• After the lapse of the grace period,
buyer is given a notice of cancellation
or demand for rescission by notarial
act, effective 30 days from the buyer’s
receipt thereof AND only upon full
payment of CSV
b. If buyer has paid less than 2 years of
installments:
• Grace period of not less than 60
days
• After the lapse of the grace period,
without the buyer having paid the
installments due, buyer is given a
notice of cancellation or demand
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for rescission by notarial act,
effective 30 days upon receipt thereof
c. In both cases, during the grace period, the
buyer shall also have the right:
• To sell or assign his rights,
evidenced in a notarial instrument
• To reinstate the contract by updating
his account during the grace period
and before actual cancellation of the
contract
• To pay in advance any installment,
or the full unpaid balance of the
price, without any interest, and to
have such full payment of the
purchase price annotated in the
certificate of title covering the
property.
G. Extinguishment of Sale
1. In general
Generally, a sale is extinguished by the same
causes as all other obligations [Arts. 1600,
1231, NCC]
1. Payment/performance
2. Prescription
3. Loss of thing due
4. Annulment
5. Novation
6. Condonation/remission
7. Confusion/merger
8. Compensation
9. Rescission
10. Resolutory condition fulfilled
11. Redemption (Conventional or Legal)
2. Conventional Redemption / Pacto
de retro sale
Conventional Redemption exists when the
vendor reserves the right to repurchase the
thing sold, with the obligation to return:
• The price of the sale
• Expenses of the contract
• Any other legitimate payments by reason
of the sale
• Necessary and useful expenses [Art.
1601, NCC]
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Note: Redemption feature does not prevent
the full consummation of the contract of sale.
Available when the seller reserves the right to
repurchase the thing sold in the same
instrument of sale as one of the stipulations of
the contract [Villarica v. CA, G.R. No. L-19196
(1968)]
a. Period [Art.1606, NCC]
General Rule: Follow period stipulated in
contract, but should not exceed ten (10)
years. Otherwise, automatically reduced.
Exceptions:
• In the absence of a stipulation, the right
must be exercised within four (4) years
from the date of contract.
• If no period stipulated but the parties
intended a period, then it shall be ten (10)
years from the date of the contract.
• But the vendor may still exercise the right
to repurchase within thirty 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.
b. By Whom Exercised
• Vendor, after returning to vendee price of
•
•
•
sale plus expenses of the contract, other
legitimate payments made by reason of
sale, and necessary and useful expenses
made on the thing sold [Art. 1616, NCC]
His heirs, assigns or agents
Creditor, after he has exhausted the
property of the vendor [Art. 1610, NCC]
Co-owners of an immovable, if they
sold their interests to the same person,
may only redeem their respective shares
[Art. 1612, NCC]
Note: Vendee cannot be compelled to agree
to a partial redemption and can compel all
sellers to redeem the entire property or for
only one of them to redeem it [Art. 1613, NCC]
c. From Whom to Redeem
• Vendee a retro
• His heirs, assigns or agents
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•
•
CIVIL LAW
Subsequent purchaser of property, even if
the right to redeem was not mentioned in
the subsequent contract; except if
registered land, where the right to redeem
must be annotated on the title
If several heirs, then the right of
redemption can be exercised against each
heir for his share of the property [Art.
1615, NCC]
d. How Exercised
a. By returning the ff. to the buyer:
• Price of the sale, except if the
parties agreed on a redemption
price;
• Expenses of the contract and other
legitimate payments made by reason
of the sale;
• Necessary and useful expenses made
on the thing sold.
b. Complying with any other stipulation
agreed upon, if any.
General Rule: It is not sufficient that a person
offering to redeem manifests his desire to do
so. The statement of intention must be
accompanied by an actual and simultaneous
tender of payment for the full amount of the
repurchase price [BPI Family Savings Bank,
Inc. v. Sps. Veloso, G.R. No. 141974 (2004)].
e. Effect of Redemption
1. The sale is extinguished
2. The seller shall receive the thing free
from all charges or mortgages
constituted by the buyer BUT he shall
respect leases executed by the buyer in
good faith and in accordance with local
custom
3. As to fruits:
a. If parties agreed on a distribution,
the
fruits shall be distributed
according to the agreement
b. If parties did not agree on a
distribution:
i.
If there are growing fruits at the
time of sale and at the time of
redemption:
a. Buyer
receives
reimbursement if the buyer
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ii.
paid indemnity at the time of
the sale
b. Buyer
receives
no
reimbursement or prorating if
the buyer did not pay
indemnity at the time of sale
If there were no growing fruits at
the time of sale, but some exist at
the time of redemption: fruits
prorated (buyer entitled to part
corresponding
to
time
he
possessed the land in the last
year,
counted
from
the
anniversary of the date of sale)
f. Effect of non-redemption
Ownership is consolidated in the buyer BUT
the consolidation shall not be recorded in the
Registry of property without a judicial order,
after the vendor has been duly heard [Art.
1607, NCC].
g. Right to Redeem v. Option to
Purchase
Right to Redeem
Option
Purchase
to
Not
a
separate
contract but part of a
main contract of sale,
and
cannot
exist
unless reserved at
the time of the
perfection of the main
contract of sale
Generally
a
principal
contract
and may be created
independent
of
another
contract
Does not need a Must
have
a
separate
consideration
consideration to be separate
and
valid and effective
distinct from the
purchase price to
be
valid
and
effective
The maximum period
for the exercise of the
right to repurchase
cannot exceed 10
years
The period of the
option contract may
be beyond the 10year period
Requires in addition a May be exercised
tender of payment of by notice of its
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CIVIL LAW
Option
Purchase
the amount required exercise
by law, including offeror
consignment thereof
if tender of payment
cannot
be
made
effectively on the
buyer
to
to
the
3. Legal Redemption
a. Definition [Art. 1619, NCC]
Legal redemption is the right to be
subrogated, upon the same terms and
conditions stipulated in the contract, in the
place of one who acquires a thing by
purchase or dation in payment, or by any
other transaction whereby ownership is
transmitted by onerous title.
b. Period to redeem [Art. 1623, NCC]
•
•
Within 30 days from the notice in
writing by the prospective vendor, or
by the vendor, as the case may be.
The deed of sale shall not be recorded in
the Registry of Property, unless
accompanied by an affidavit of the
vendor that he has given written notice
thereof to all possible redemptioners.
c. Who may exercise
Co-owners [Art. 1620, NCC]
• When the shares of all the other coowners, or of any of them are sold to a
third person.
• If the price of the alienation is grossly
excessive, the redemptioner shall pay only
a reasonable one.
Two or more co-owners desiring to exercise
the right of redemption may only do so in
proportion to the share they may respectively
have in the thing owned in common.
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Adjoining land-owners of rural land [Art.
1621, NCC]
When the piece of rural land, with an area
which does NOT exceed one hectare, is
alienated.
NOT applicable:
• When the grantee does not own any rural
land; or
• When the adjacent lands are separated by
brooks, drains, ravines, roads, and other
apparent servitudes for the benefit of other
estates
When two or more adjoining owners desire to
exercise the right of redemption at the same
time
• Owner of the adjoining land of smaller
area shall be preferred
• If both lands have the same area, the one
who first requested the redemption shall
be preferred
Adjoining land-owners of urban land
Right of pre-emption or right of redemption, at
a reasonable price, when a piece of urban
land:
1. Which is so small and so situated that a
major portion thereof cannot be used for
any practical purpose within a
reasonable time
2. having
been
bought
merely
for
speculation
3. Is about to be, or has been, resold
When two or more owners of adjoining lands
wish to exercise the right of pre-emption or
redemption, the owner whose intended use
of the land is best justified shall be
preferred
4. Equitable Mortgage
An equitable mortgage is defined as one
which, although lacking in some formality, or
form or words, or other requisites demanded
by a statute, nevertheless reveals the
intention of the parties to charge real property
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as security for a debt, and contains nothing
impossible or contrary to law [Molina v. CA,
G.R. No. 125755 (2003)].
A pactum commissorium is a stipulation
enabling the mortgagee to acquire ownership
of the mortgaged properties without need of
foreclosure proceedings which is a nullity
being contrary to the provisions of Art.2088 of
the Civil Code. The inclusion of such
stipulation in the deed shows the intention to
mortgage rather than to sell [Legaspi v. Sps.
Ong, G.R. No. 141311 (2005)].
A pactum commissorium is contrary to the
nature of a true pacto de retro sale since
ownership of the property sold is immediately
transferred to the vendor upon execution of
the sale, subject only to the repurchase of a
vendor a retro within the stipulated period.
a. Presumption that a contract is an
equitable mortgage
The contract shall be presumed to be an
equitable mortgage, in any of the following
cases: [Art. 1602, NCC]
1. Price of a sale with right to repurchase
unusually inadequate;
2. Possession retained by the seller as
lessee or otherwise;
3. Period of redemption extended (or granted
anew) upon or after the expiration of the
right to repurchase;
4. Part of the purchase price retained by the
seller;
5. Payment of taxes on the thing sold borne
by the seller;
6. Any other case where it may be fairly
inferred that the real intention of the
parties is for the transaction to secure a
debt or other obligation.
Note: A contract shall be construed as an
equitable mortgage when any of the
circumstances in Art. 1602 is present. When
in doubt whether equitable mortgage or sale,
settle in favor of equitable mortgage because
it involves a lesser transmission of rights.
CIVIL LAW
2. Mere delay in transferring title to the buyer
The provisions on equitable mortgage of Art.
1602, NCC also applies to a contract
purporting to be a deed of absolute sale.
Remedy: Reformation of the instrument [must
be brought within 10 years]
1. If the agreement is construed to be an
equitable mortgage, any money or other
benefit received as “rents,” shall be
considered as “interest” (and subject to
usury laws)
2. The court may decree that the vendordebtor to pay the outstanding loan to the
vendee-creditor
3. Where the agreement is upheld as a pacto
de retro sale, the vendor may still exercise
the right within 30 days from the time the
judgment becomes final.
The right of repurchase is not a right granted
to the seller by the buyer in a subsequent
instrument, but one reserved by the seller in
the same instrument as the sale contract. Any
right granted after the execution of the sale
instrument is not a right to repurchase, but
some other right like an option to buy [Roberts
v. Papio, G.R. No. 166714 (2007)].
b. Requisites for presumption of an
equitable mortgage
1. That the parties entered into a contract
denominated as a contract of sale, and
2. That their intention was to secure an
existing debt by way of a mortgage
[Molina v. CA, supra].
In case of doubt, a contract purporting to be a
sale with right to repurchase shall be
construed as an equitable mortgage [Art.
1603, NCC].
c. Rationale behind
equitable mortgage
provision
on
1. Circumvention of usury law
2. Circumvention of prohibition against
pactum commissorium – creditor cannot
appropriate the things given by way of
By itself, no equitable mortgage under the
following instances:
1. Mere tolerated possession
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pledge or mortgage since remedy is
foreclosure.
d. Remedies of apparent vendor
1. If the instrument does not reflect the true
agreement: remedy is reformation
2. If decreed to be an equitable mortgage:
any money, fruits or other benefit to be
received by the buyer as rent or otherwise
considered as interest.
3. If decreed as a true sale with right to
purchase: seller may redeem within 30
days from finality of judgment, even if the
period for redemption has expired.
e. Period of redemption
No stipulation: 4 years from the date of
contract [Art. 1606, NCC]
When there is agreement: Period not to
exceed 10 years [Art. 1606, NCC]
General Rule: Period starts to run from the
date of the execution of the contract
Exception: When the efficacy of the sale is
subject to a suspensive condition, period
should be counted not from the date
appearing on the instrument, but from the date
when the condition is fulfilled, marking the
consummation of the sale.
Additional 30 days for Repurchase
Such redemption or repurchase could be
made within thirty days from the date of final
judgment rendered in a civil action where the
issue or controversy between the parties
concerns with or involves the juridical
nature or character of the contract [Morales
v. Biagtas, G.R. No. L-17193, (1962)].
When an unrecorded pacto de retro sale was
construed as an equitable mortgage, the
plaintiff had the right to enforce his lien in a
separate proceeding notwithstanding the fact
that he had failed to obtain judgment declaring
him the sole and absolute owner of the land
[Heirs of Arches v. Diaz, G.R. No. L-27136
(1973)].
024677CIV
Where the petition of the buyer in a pacto de
retro sale is for a judicial order, pursuant to
Art. 1607 so that there may be consolidation
of ownership since there was failure to
redeem during the redemption period, the
right of action to foreclose or to collect the
indebtedness arises from the court judgment
declaring the contract an equitable mortgage.
f. Exercise of the right to redeem [Art.
1616, NCC]
The seller can avail himself of the right of
repurchase by returning to the buyer:
1. the price of the sale;
2. the expenses of the contract and any
other legitimate payments made by
reason of the sale;
3. the necessary and useful expenses made
on the thing sold
g. How redemption is exercised
1. The vendor a retro must complete the
repurchase before the expiration of the
redemption
period
[Panganiban
v.
Cuevas, G.R. No. 2001 (1907)]
2. A sincere or genuine tender of payment is
enough. The deposit of the amount of the
repurchase money with the Clerk of Court
was simply an additional security [Legaspi
v. CA, G.R. No. L-45510 (1986)]
3. When tender of payment cannot be validly
made because the buyer cannot be
located, it becomes imperative for the
seller a retro to file a suit against the buyer
and making a consignation with the courts
of the redemption price [Catangcatang v.
Legayada, G.R. L-26295 (1978)]
4. If the offer or tender of payment for
repurchase is refused, it is not necessary
for the vendor a retro to consign in court
or make judicial deposit of the repurchase
price because the offer has already been
proven. [Rosales v. Reyes, G.R. No. 8162
(1913)]
The seller a retro is given no option to require
the buyer a retro to remove the useful
improvements on the land subject of the sale
a retro, unlike that granted the owner of a land
under Arts. 546 and 547. Under Art. 1616, the
seller a retro must pay for useful
Page 317 of 444
UP Law Bar Operations Commission 2023
FOR UP CANDIDATES ONLY
SALES AND LEASE
CIVIL LAW
improvements introduced by the buyer a retro;
otherwise, the latter may retain possession of
the land until reimbursement is made
[Gargollo v. Duero, G.R. No. L-15973, (1961)].
Those disqualified under Art. 1490
A. General Provisions
The husband and wife cannot sell property,
except for
1. When a separation of property was
agreed upon in the marriage settlements;
or
2. When there has been a judicial separation
of property under Art. 191.
1. Definition
Those disqualified under Art. 1491
II. Lease
Art. 1642, Civil Code. The contract of lease may
be of things, or of work and service.
It is a consensual, bilateral, onerous and
commutative contract by which the owner
temporarily grants the use of his property or
the rendering of some service to another who
undertakes to pay some rent, compensation
or price.
Limitation: Consumable goods cannot be the
subject matter of a contract of lease, except
when they are merely to be exhibited or when
they are accessory to an industrial
establishment [Art. 1645, NCC].
Record in the Registry of the Property
If a lease is to be recorded in the Registry of
Property, the following persons cannot
constitute the same without proper authority:
1. The husband w