Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
GENERAL PRINCIPLES
I.
C. Retroactivity of Laws
General Rule: Laws have no retroactive effect,
unless the contrary is provided. (Art. 4, NCC)
Exceptions:
1. Expressly provided by the law;
2. Laws creating new rights;
3. Emergency laws;
4. Tax laws;
5. Remedial statutes;
6. Interpretative statutes;
7. Curative statutes; and
8. Penal laws favorable to the accused who is not
a recidivist or a habitual delinquent;
Exceptions to the Exceptions:
F. Repeal of laws
Laws are repealed only by subsequent
ones, and their violation or non-observance shall
not be excused by disuse or custom or practice to
the contrary. (Art. 7, NCC)
1.
2.
Statutory construction
the act or process of discovering and
expounding the meaning and intention of the
authors of the law with respect to its
application to a given case, where that
intention is rendered doubtful, among others,
by reason of the fact that the given case is
not explicitly provided for by the law (Caltex
v. Palomar, 1966)
ONE
MUST
CONSTRUES.
In case of doubt,
presumed to prevail.
INTERPRET
right
BEFORE
and
justice
HE
is
Mandatory statutes:
1) Conferring power
2) Granting benefits
3) Prescribing jurisdictional requirements
4) Prescribing time to take action or to
appeal
5) Prescribing procedural requirements
6) Election laws on conduct or elections
7) Election
laws
on
qualification
and
disqualification
8) Prescribing the qualifications of office
9) Statutes relating to assessment of taxes
10) Statutes concerning public auction sale
Discretionary Statutes
1) Prescribing guidance for officers
2) Prescribing manner of judicial action
3) Requiring rendition of decision within
prescribed period
4) Constitutional time provision to render a
decision on cases by the SC, collegiate
courts and lower courts is directory
(Marcelino v. Cruz)
J.
30=63
Less: October
31=32
Less: Nobember
30=2
(December)
November is the last month whose number of
days was subtracted; hence, the remaining
difference of 2 shall be the date in December, the
month immediately succeeding November.
Hence, the last day for filing the action is
December 2, 2005.
How to compute leap years?
Namarco v. Tuazon held that Feb 28 and 29 of a
leap year should be counted as separate days in
computing periods of prescription. Since this case
was filed on Sept 3, 1965, it was filed one day too
late; considering that the 730th day fell on Sept 2,
1965-the year 1964 being a leap year.
BETWEEN
ALIEN
&
4.
5.
6.
7.
8.
9.
CASES:
Testate Estate of Bohanan vs. Bohanan, et al. 106
Phil 997
Phisec Investment vs. CA
274 SCRA 102
Pennoyer v. Neff
95 U.S. 714 (1877)
Mullane v. Central Hanover Bank & Trust Co., 339
U.S. 306 (1950).
Margarita Romualdez-Licaros Vs. Abelardo B.
Licaros,
G.R. No. 150656. April 29, 2003
Idonah Slade Perkins Vs. Mamerto Roxas
157 SCRA
Extrinsic
and
conveyances
Intrinsic
Validity
of
DEFENSES OF ENFORCEMENT
Rule of RECIPROCITY is no longer a factor now
to be considered in the recognition of a foreign
judgment as national legal systems and the U.S.
recognition of other legal systems converged.
A foreign judgment is not due recognition while it
is in the process of being appealed.
COMITY
- a recognition that one nation extends to the
legislative, executive, or judicial acts of another
not a rule of law
- a nations expression of understanding that
demonstrates due regard both to international
duty and convenience and the rights of persons
protected by its own laws
CASE:
Nelson Bunker Hunt vs. BP Exploration Company
(Libya) Ltd.
Point of Contract
1) Lex loci Celebrationis
(Art. 17 Par. 1, Civil Code)
a) Lex Situs
b) Law of the Philippines
or consideration(lex loci
Considerationis)
3) performancelex loci solutionis
Point of contract
Lex situs
Lex situs
3) a) lex loci
celebrationis
b) national law
c) loci voluntatis or loci
intentionis
4) fixed situs of carrier
except d) law of
destination
5) a) lex loci
celebrationis
b) national law of the
parties except when
the agency deals
with the conveyance
or encumbrance of
property-lex situs
c) lex loci voluntatis
6) Simple loan
a) extrinsic validity
b) capacity of the
parties
c) intrinsic validity
6) a) lex loci
celebrationis
b) national law
c) lex loci volutatis or
lex loci intentionis
7) Commodatum
a) extrinsic validty
b) capacity of the
parties
c) intrinsic validity
7) lex situs
8) Pledge, chattel
mortgage, real
mortage, and antichresis
a) extrinsic validity
b) capacity of the
parties
c) intrinsic validity
9) Guaranty and
suretyship
a) extrinsic validy
b) capacity of
parties
c) intrinsic validity
SYNOPSIS OF CONFLICTS
RULES FOR TORTS
Factual situation
1) Liability of
damages for torts in
general
Point of Contact
1) Lex loci delicti
commissi (law of the
place where the delict
was committed) note:
liabilit yfor the foreign
torts may be enforced
in the Philippines if:
(Locus delicti-place of
the commission of
torts) is faced by the
problem of
characterization. In
civil law countries, the
locus delicti is
generally where the
act began, in common
law countries, it is
where the act first
became effective)
HUMAN RELATIONS
Exclude: Independent Civil Actions and prejudicial
questions which will be covered by the
examinations in Remedial Law
Prejudicial Question
General Rule: If both criminal and civil cases are
filed in court, the criminal case takes precedence.
Exception: When there is a prejudicial question
or a question that arises in case, the resolution of
which is a logical antecedent of the issue involved
herein, and the cognizance of which pertains to
another tribunal.
Requisites
PERSONS &
PERSONALITY
A.
CAPACITY TO ACT
Judicial Capacity
Fitness to be the
subject of legal
relations
Passive
Inherent
Lost only thru death
Can exist without
capacity to act
Cannot be limited or
restricted
Capacity to Act
Power to do act with
legal effects
Active
Merely acquired
Lost thru death and
other causes
Cannot exist without
judicial capacity
Can be restricted,
modified or limited
Theory of Special
Capacities
Applies to juridical
persons
This limits the power
of juridical persons
only to those that are
expressly conferred
upon them or those
which can be implied
therefrom or
incidental thereto.
Decedent
B
Who presumed to
have survived
Under 15
Under 15
Older
Above 60
Above 60
Younger
Uder 15
Above 60
Under 15 (younger)
Above 15
but under
60
Above 15
but under
60
Under 25 or
OVER 60
Between
15-60
Between 15-60
RESIDENCE
Used to indicate a
PLACE OF ABODE,
whether permanent or
temporary
There can be several
places of residence
DOMICILE
Denotes a FIXED
PERMANENT
RESIDENCE, which
when absent, one has
the intention of
returning
There can only be
ONE place of domicile
Elements of Domicile
a. Physical presence in a fixed place
b. Intention to remain permanently (animus
manendi)
Kinds of Domicile
1. Domicile of Origin received by person at
birth.
2. Domicile of choice the place freely
chosen by a person sui juris.
3. Constructive Domicile assigned o a child
by law at the time of his birth.
FAMILY RELATIONS
* E.O. NO. 209 The Family Code of the
Philippines
* Promulgated on July 6, 1987
* Took effect on August 3, 1988
EXCLUDE: Muslim Code, (PD 1083)
LAW ON MARRIAGE
(Family Code)
B. DOMICILE and RESIDENCE
(Art. 50-51)
6. Ceremony (Art. 6)
What
constitutes
a
valid
marriage
Ceremony?
-That which takes place with the:
1) Appearance of the contracting parties before
the solemnizing officer and
2) Their personal declaration that they shall
take each other as husband and wife
3) In the presence of not less than 2 witness of
legal age
Note: No particular form of ceremony or religios
rite is required by law.
7. PERSONS AUTHORIZED TO SOLEMNIZE A
MARRIAGE
1. Members of the judiciary;
2. Priests, rabbis, ministers of any church;
3. Ship captains or airplane chiefs;
4. Consul generals, consuls or vice consuls;
5. Military commanders of a unit;
6. Duly elected mayors of cities and municipalities
pursuant to the Local Government Code. The
term includes vice-mayor who is acting
mayor who is merely acting as mayor.
A. Judges
* Judges can solemnize marriage only within their
courts jurisdiction. They must be incumbent and
not retired.
* The jurisdiction of the Court of Tax Appeals,
Sandiganbayan, the Court of Appeals and the
Supreme Court is national in scope. All other
courts are jurisdictional.
Judges who are appointed to specific jurisdiction
may officiate weddings only within the said areas
and not beyond. Where a judge solemnizes a
marriage outside the courts jurisdiction there is a
resultant irregularity in the formal requisites,
which, while it may not affect the validity of the
marriage, may subject the officiating official to
administrative liability. (Beso vs. Daguman, 323
SCRA 566)
B. Priests, Rabbis, Imam or Minister of Any
Church or Religious Sect
* A priest is one especially consecrated to the
service of a divinity and considered as the
medium thru whom worship, prayer, sacrifice, or
other service is to be offered to the being
worshipped,
and
pardon,
blessing,
and
deliverance, obtained by the worshipper.
Requisites to Perform Marriage
1. Must be duly authorized by his or her church or
religious sect;
2. Must act within the limits of the written
authority granted to him or her by the church
or religious sect;
3. Must be registered with the civil registrar
general; and
4. At least one of the contracting parties whose
marriage he or she is to solemnize belongs to
his or her church or religious sect.
F. Mayor
* Pursuant to the Local Government Code,
the mayor of a city or municipality, within
their exclusive jurisdiction, is now
empowered to solemnize a marriage.
a) Exception Art. 35 (2)
Art. 35. The following marriages shall be void
from the beginning:
xxxx
(2) Those solemnized by any person not legally
authorized to perform marriages 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.
D. Military Commander
Requisites to Perform Marriage
1. He or she must be a military commander of a
unit;
c.
B.
b)PSYCHOLOGICAL
INCAPACITY
* 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 if
such incapacity becomes manifest only after its
solemnization.
Essential Elements:
a. Mental condition;
b. Applies to a person who is martially contracted
to one another
c. Marriage entered into volition\
d. Failure to perform its chronic
f. Cause is psychological in nature
g. Cause is serious, with juridical antecedence and
must be curable;
h. Incapacity results in the failure of the marriage.
* The law does not define what psychological
incapacity is and therefore, the determination is
left solely with the courts on a case-to-case basis.
BIGAMOUS MARRIAGES
Guidelines
Regarding
Psychological
Incapacity
1. Burden of proof belongs to the plaintiff
2. Root cause of the psychological incapacity must
be:
a. Medically or clinically identified
b. Alleged in the complaint
c. Sufficiently proven by experts
d. Explained in the decision
3. Incapacity must be existing at the time of the
celebration of marriage
4. Incapacity must be permanent or incurable
5. Illness is grave enough to bring about disability
to assume marital obligations
6. Marital obligations refer to Art. 68-71 of FC as
well as Art. 220, 221 and 225 of the FC
7. Interpretations of the National Appellate
Matrimonal Tribunal of the Catholic Church of
the Philippines while not controlling should be
given great respect.
8. Trial court must order the prosecuting attorney
or fiscal and the Solicitor General to appear
for the state. (Republic vs. CA and Molina, GR
No. 108763, February 13, 1997)
* Cause of the incapacity must be:
1. Clinically identified;
2. Alleged in the complaint;
3. Sufficiently proven by experts; and
4. Clearly explained in the decision.
* Either party, even the
incapacitated, can file the action.
psychologically
5. VOIDABLE MARRIAGES
Grounds:
1. Non-age (18 to below 21, without parental
consent) unless after attaining age of 21, part
freely cohabited with the other;
2. Unsoundness of mind, unless party after
coming to reason, freely cohabited with the
other;
3. Fraud, unless party afterwards, with full
knowledge of fraud freely cohabited with the
other;
4. Force, intimidation or undue influence, unless
same having disappeared or ceased, such
party thereafter freely cohabited with the
other;
5. Impotence; and
6. Sexually transmitted Disease, if insurable.
Circumstances Constituting Fraud in Art.
45(3):
Non-disclosure or concealment of:
1. Previous conviction by final judgment of the
crime involving moral turpitude;
2. Pregnancy of wife by another man at time of
marriage;
3. Sexually transmissible disease existing at the
time of the marriage;
4. Drug addiction, habitual alcoholism,
homosexuality or lesbianism existing at the
time of the marriage.
NOTE: No other misrepresentation as to
character, health, rank, fortune or chastity shall
constitute such fraud as will give grounds for
action for the annulment of marriage.
Non-disclosure of a husbands premarital
relationship with another woman is not one of the
enumerated circumstances that would constitute a
ground for fraud; and it is further excluded by the
last paragraph of the article, providing that no
other misrepresentation or deceit as to chastity
shall give ground for an action to annul a
marriage. While a woman may detest such nondisclosure of premarital lewdness or feel having
been cheated into giving her consent to the
marriage, nevertheless the law does not assuage
Injured party
6. STD
Within 5 years after the
celebration of the
marriage
VOIDABLE
As to nature
Inexistent from the
Valid until annulled
time of performance
As to susceptibility to ratification
Cannot be ratified
Can be ratified either
be free cohabitation or
prescription
As to effect on property
No community
Absolute community
property, only
exists unless another
ownership (Art. 147)
system is agreed upon
in marriage settlement
As to effect on children
Children are
Children are legitimate
illegitimate
if conceived before
decree of annulment
Exceptions:
a. In case of psychoincapacity (Art. 36)
b. Children born of
subsequent marriage
(Art. 53)
As to how marriage may be impugned
a. May be attacked
a. Cannot be attacked
directly of collaterally
collaterally, only
but for the purpose of
directly, i.e. there
remarriage, there
must be a decree of
must be judicial
annulment
declaration of nullity
b. Can no longer be
b. Can still be
impugned after death
impugned even after
of one of the parties
death of parties
II.
Tolentino V. Villanueva
Facts: Petitioner refused to submit himself for
interrogation by the city fiscal which was the
reason for the dismissal of the case for annulment
of marriage.
Issue: WON it was proper?
Held: YES, Art. 88 and Art. 101 expresses a
prohibition of the aforesaid laws and rules is
predicated on the fat that the institutions of
marriage and of the family are sacred and
therefore are as much the concern of the state as
of the spouses; because the state and public have
vital interest in the maintenance and the
preservation of these social institutions against
desecration by collusion between the parties or by
fabricating evidence. It stresses the fact that the
marriage is more than a mere contract between
the parties.
Jocson v. Robles
The court found indications of collusion between
the parties in their attempt to secure the
nullification of the said marriage. The court
correctly denied the motion for summary
judgment based on the first paragraph of Art. 88
and 101 of the Civil code of the Philippines.
III.
Effects of Annulment
LEGAL SEPARATION
A. Grounds (Art. 55 and R.A. 9262 or the AntiViolence Against Women and Their
Children Act of 2004)
B. Defenses (Arts. 56-57)
C. Cooling-off period (Art. 58)
D. Reconciliation efforts (Art. 59)
E. Confession of judgment (Art. 60)
F. Effects of filing petition (Art. 61)
G. Effects of pendency (Art. 62)
H. Effects of legal separation (Arts. 63-64)
5.
6.
7.
8.
9.
Condonation
* The act of forgiving the offense after
commission
* It implies a condition of future good behavior by
the offending spouse. Condonation of the violation
of the marital duties and obligations being
conditional on the future good conduct of the
offending spouse, subsequent offense on his or he
pat revokes or nullifies the Condonation and
revives the original offense.
The failure of the husband to look actively for
his adulterous wife after she left the conjugal
home does not constitute Condonation or consent
of the wifes adulterous acts. It was not his duty
to search for her to bring her home. Hers was the
obligation to return (Ocampo vs. Florenciano, 107
Phil 35)
The act of giving money to an erring wife and
the fact that no action was taken against her
before the courts of justice are sufficient to
establish forgiveness amounting to Condonation,
for Condonation is the forgiveness of the one of
the married parties of an offense which he knows
the other has committed against the other and, at
any rate, pardon or Condonation does not require
sexual intercourse and it may be express or
implied (Almacen vs. Baltazar, 103 Phil 1147)
Recrimination
or
Equal
Guilt
A
counterchange in a suit for divorce or legal
Consent
* There is consent when either of
agreed to or did not object,
knowledge, to the act, giving rise to
legal separation, before such act
committed.
the spouses
despite full
a ground for
was in fact
and
marital
DISTINCTIONS
DISTINCTION BETWEEN VOID & VOIDABLE MARRIAGES AND LEGAL SEPARATION
Grounds
VOID
1. If parties are below 18,
even with the consent of
parents/guardians
2. Marriage is solemnized
by any person not legally
authorized, unless both
parties believe in good
faith that said officer had
authority
3. Solemnized without
license, except those that
are expressly exempted by
the Civil Code
4. Bigamous / polygamous
marriages
5. Contracted by mistake
as to identity of the other
party
6. Subsequent marriages
void under Art. 53
7. Psychological incapacity
8. Incestuous relationships
9. Those void by reason of
public policy
VOIDABLE
1. Parties are 18 or over but
below 21, married without
consent of parents or
guardian.
2. Either party is of unsound
mind
3. Consent of either party
was obtained by fraud.
4. Consent of either party
was obtained by force,
intimidation, or undue
influence
5. Physical incapability of
consummating the marriage
6. Either party is found to be
afflicted with sexuallytransmissible disease which
is serious and appears
incurable
* defect in any of the
essential requisites makes
marriage voidable
Nature of
Marriage
LEGAL SEPARATION
1. Repeated physical
violence or grossly abusive
conduct directed at
petitioner, a common child,
or child of the petitioner
2. Physical violence or
moral pressure to compel
petitioner to change
religious or political
affiliation
3. Attempt of respondent
to corrupt or induce
petitioner, common child or
child of petitioner to
engage in prostitution
4. Final judgments
sentencing respondent to
imprisonment of more than
6 years even if pardoned
5. Drug addiction or
habitual alcoholism of
respondent
6. Lesbianism /
homosexuality of
respondent
7. Contracting of
respondent of subsequent
bigamous marriage,
whether here or abroad
8. Attempt by respondent
on the life of petitioner
9. Abandonment without
justifiable cause for more
than one
year.
Subsisting
Even with
Decree of
Legal
Separation.
VOID
Cannot be ratified
Ratification
How marriage can be
impugned
Prescription
* Directly or
collaterally; for
remarriage, a decree is
needed
* Can still be impugned
after the death of
either party
* Shall not prescribe
* In case of marriage
celebrated before
effectivity of the family
code, 10 years after its
effectivity (1998)
VOIDABLE
Can be ratified by free
cohabitation or
prescription
* Directly there must
be a decree
* Can no longer be
impugned after death
of either party
LEGAL SEPARATION
No ratification, but
parties may reconcile
a. Lack of parental
consent
i. By party underage
within 5 years after
turning 21
ii. By parent before
child turns 21
b. Insanity
i. By sane spouse or
guardian before
death of either party
ii. Insane spouse
during lucid interval,
after gaining sanity or
before the death of
either spouse
c. Fraud/force within
5 years of discovery of
fraud or cessation of
cause
Effect of Filing
Pending Decree
d. Impotence/STD
within 5 years after the
marriage
In absence of or
inadequacy in a written
agreement by spouses,
the court shall provide
for support of common
children; it shall also
provide for appropriate
visitation rights
Effect on Children
Effect of Decree on
Property
Illegitimate, except
those children of
marriages void under
Arts. 36 and 53
Final judgment shall
provide for the
liquidation and
dissolution of
properties, as well as
for custody and support
of children
Any of the spouses
Legitimate if conceived
before annulment
decree was given
Final judgment shall
provide for the
liquidation and
dissolution of
properties, as well as
for custody and support
of children
a. Lacks parental
consent party underaged or
parent/guardian
for appropriate
visitation rights
Legitimate
* Custody of minor
children shall be given
to the innocent spouse
ACP or CPG shall be
dissolved and liquidated
but the offending
spouse shall have no
right to any share of
the net profit earned by
such properties
Aggrieved spouse
b. Insanity sane or
insane spouse,
guardian of insane
spouse
(2) Physical violence or moral pressure to compel
the petitioner to change religious or political
affiliation;
Case:
Tenchavez v. Escano
Held: Marriage was valid because lack of
ecclesiastical authorization from the parish priest
by Canon Law, is irrelevant to our civil law.
Held: The marriage was valid and subsisting
notwithstanding the decree of absolute divorce
the wife obtained under the state of Nevada. But
the wifes cohabitation with Leo Moran, the man
she subsequently marriage after the divorce
declaration, is technically intercourse with a
person not her husband and entitles petitioner a
decree of legal separation under our own law on
the basis of adultery.
I.
Grounds
II.
Matubis v. Praxedes
The complaint for legal separation was filed outside
the period provided under Art. 102 of the NCC.
(one year) By the very admission of the plaintiff,
she found out of the ground (concubinage) was in
January 1955 and filed a complaint only on April
24, 1956.
Contreras V. Macaraig
Issue: When did knowledge of the ground occur as
basis for the prescription period to start tolling?
The time the wife heard via hearsay the infidelity
or the time when the husband admitted to her that
he was living with and would no longer leave his
concubine?
Held: The latter case. The first time, the wife was
hurt but it was merely hearsay. The only time she
was cognizant of the infidelity of her husband was
in the early part of Dec. 1963 only when defendant
informed the wife he could no longer leave Lily Ann
and refused to return to the legitimate family.
III.Hearing
Art. 58. An action for legal separation shall in no
case be tried before six months shall have elapsed
since the filing of the petition. (103)
Limitation of Action
Effects
Reconciliation
the
The
the
the
II.
PROPERTY RELATIONS
BETWEEN HUSBAND &
WIFE
MARRIAGE SETTLEMENT
* A contract entered into by a man and a woman
who intend or plan to get married fixing the
property regime that will govern their present and
future properties during their marriage
* To bind third persons, the marriage settlement
and any modification thereof must be registered in
the local civil registrar where the marriage contract
is recorded and in the proper registries of property.
* The bind third persons, the marriage settlement
and any modification thereof must be registered in
the local civil registrar where the marriage contract
is recorded and in the proper registries of property
* Pursuant to Article 1403 (2c) of the New Civil
Code dealing with the State of Frauds, an
DONATIONS BY REASON OF
MARRIAGE
* Donations made in consideration of the marriage
in favor of one or both of the future spouses and
executed before its celebration.
* Donations between common-law spouses are
void. (Art. 87, FC)
One-fifth Limitation
* If there is a marriage settlement providing for a
particular regime other than the absolute
community of property, such as the conjugal
partnership of gains or the separation of property
regime, and there is also a donation proper nuptias
not included in a marriage settlement but
contained in a separate deed, the not more than
one-fifth limitation will not apply. Instead, the
general rules on donations contained in Title III of
Book II of the Civil Code shall govern, providing
that:
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 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 donations shall be reduced
on petition of any person affected (Article
750, NCC).
* However the above provision is likewise subject
to the provision in the Civil Code that no person
may give or receive, by way or donation, more
than he may give or receive by will. The donation
shall be inofficious in all that it may exceed this
limitation (Article 752, NCC).
Revocation
of
Scope
Restrictions
and
MARRIAGE
SETTLEMENT
* Should not prejudice
3rd persons.
* Will be void if marriage
does not take place.
* Cannot stipulate that
donations between them
during marriage will be
valid.
DONATIONS
PROPTER NUPTIAS
* May include future
property.
* May be made by
minors.
* If regime is not ACP
spouses cannot donate
more than 1/5 of their
present property.
* No direct donations.
* Must not prejudice
legitimes.
ORDINARY DONATION
* Cannot comprehend future
property.
* Cannot be made by minors.
* May comprehend all
property of donor must
reserve sufficient means to
support himself.
* Must not prejudice legitimes.
Effectivity
Who executes
Form of Execution
Revocation
No form required.
* Marriage is not
celebrated or judicially
declared void ab initio.
* Marriage takes place
without the needed
consent.
* Marriage is annulled,
donee acted in bad
faith.
* In case of legal
separation and donee is
guilty spouse.
* Resolutory condition
is not complied with.
* Donee committed an
act of ingratitude
Heirs of any person
whose rights are
prejudiced.
Case:
Serrano V. Solomon
This was not a valid donation propter nuptias
because the donation was being made not in
favor of Alejandria, the wife, but rather in favor of
those who acted as her parents and raised her
from girlhood to womanhood in the absence of
her father. The suspensive condition here was
that the marriage would have to be childless and
one of the spouses would have to die before the
other so that the donation would operate. Also,
the donation did not fulfill the requirements as it
was never accepted by the done either in the
same instrument or donation or in a separate
document as required by law.
Sumbad V. CA
GR: Donation before marriage when they were in
a common-law relationship was void as the
prohibition extended to common-law relationship
but since they were not able to prove the
common law relationship then the donation was
valid.
Matabuena V. Cervantes
(Same ruling as Sumbad that the prohibition of
donation of the brother to his common-law wife
was not valid as Art, 87 extends to common-law
relationship)
Solis V. Barroso
Donation proper nuptias here was not valid
because it was made in a private instrument. This
donation must be governed by the rules on
Donation. Real Property may be valid, it must be
made in the public instrument. (Formal Validity)
A.
SYSTEM OF ABSOLUTE
COMMUNITY
The only exceptions to this rule are onerous and
remuneratory donations, insofar as they do not
exceed the value of the charge imposed, which are
then governed by the rules on contracts, and those
which are to take effect upon the donors death,
which are governed by the rules established for
testamentary succession.
ABSOLUTE COMMUNITY
PROPERTY
All the properties owned by the spouses at the
time of marriage become community property.
Upon dissolution and liquidation of the community
property what is divided equally between the
spouses of their heirs is the net remainder of the
properties of the ACP.
CONJUGAL PARTNERSHIP
OF GAINS
Each spouses retains his/her property before the
marriage and only the fruits and income of such
properties become part of the conjugal properties
during the marriage.
Upon dissolution of the partnership, the separate
property of the spouses are returned and only the
net profits of the partnership are divided equally
between the spouses of their heirs.
for
illegitimate
Procedure
for
Liquidation
Community of Property
of
Absolute
1. Inventory
It is error to determine the amount to be
divided by adding up the profits which has been
made on each year of the communitys
continuance and saying that the result thereof is
that amount (De la Rama vs. De la Rama, 7 Phil
754).
In the appraisal of the properties, it is
not the purchase price but the market price or, in
default, the assessed value at the time of the
liquidation that must be taken into account (Prado
vs. Natividad, 47 Phil 775)
2. Payment of Debts
* After the inventory, all debts for which the
absolute community property is liable must be
paid.
* In case of insufficiency of the absolute
community property and/or obligations of the
same for which the separate properties were made
solidary liable for the unpaid balance with their
separate properties.
3. Delivery of Exclusive Properties
* After payment of the advances made by the
absolute
community
property
and/or
the
obligations of the same for which the separate
properties were made solidary liable, the next step
is to deliver whatever remains of the exclusive
properties of the spouses to each of them.
4. Partition of Net Assets
* The interest of the parties is limited to the net
assets or net remainder.
* Equal sharing will not apply if there is a different
proportion of division agreed upon in the marriage
settlement, or unless there has been a voluntary
waiver of such share as provided for by the law.
Until a liquidation has been made, it is impossible
to say whether or not there will be a net remainder
to be divided between the parties (Nable Jose vs.
Nable Jose, 41 Phil 713)
5. Delivery of the Presumptive Legitime
B. CONJUGAL PARTNERSHIP
OF GAINS
Formed by husband and wife whereby they place in
a common fund:
1) The fruits of their separate property, and
2) Income from their work or industry, the same to
be divided equally upon dissolution of marriage or
partnership.
Properties Constituting CPG
Those acquired by:
1) Share of either spouse in hidden treasure as
finder or owner of property where treasure is
found;
2) Onerous title during the marriage at expense of
common fund;
3) Through effort and by chance;
4) Fruits, natural, industrial or civil, due or
received during marriage from common
property as well as net fruits from exclusive
property of each spouse;
5) Livestock existing upon dissolution of CPG in
excess of number of each kind brought to
marriage by either spouse;
6) Through occupation; and
7) Labor, work, profession or industry of either or
both spouses.
* All the properties acquired during the marriage
are presumed to belong to the conjugal
partnership, unless it is proved that it pertains
exclusively to the husband or to the wife. (Art.
160, NCC [Presumption of Conjugal Property])
Property Excluded from Conjugal Partnership
(Exclusive Property of the Spouse):
1. Brought to the marriage as his or her own;
2. Acquired during marriage by gratuitous title;
3. Acquired by right of redemption, by barter or
exchange with property belonging to either
spouse;
CONJUGAL
PARTNERSHIP
Arises only because of
the marriage contract.
One must be a male,
the other a female.
Conjugal owners are
always only two.
Profits are generally
50-50 unless a
contrary stipulation is
in a marriage
settlement.
Death of either
husband or wife
dissolves the conjugal
partnership.
Generally, the
husband is the
administrator.
Encouraged by law to
provide for better
family solidarity.
Created by operation
of law upon
celebration of
marriage.
It is the law that
governs.
It does not possess
any legal personality
distinct from that of
the spouses.
Commences precisely
on the date of the
celebration of the
CO-OWNERSHIP
May arise by an
ordinary contract.
Sex of the co-owners
is immaterial.
Co-owners may be
two or more.
Profits are
proportional to
respective interests.
Death of one does not
dissolve the coownership.
Generally, all coowners administer.
Co-ownership is
discouraged by law.
Created by will or
consent of the parties.
The law that governs
is the will of the
parties.
It possess a legal
personality.
It begins from the
moment of the
execution of the
contract but a
contrary stipulation is
allowed.
It is formed for profit.
Profits are divided
according to previous
agreement; if there is
no previous
agreement, in
proportion to the
amount contributed.
There are many
grounds for
dissolution.
There may be division
of profits even without
dissolution.
C. REGIME OF SEPARATION
OF PROPERTY
Spouses
retain
the
ownership,
management and control of their properties before
the marriage and those acquired after the
marriage (includes earnings and fruits)
D. PROPERTY REGIME OF
UNIONS WITHOUT
MARRIAGE
ART. 147
ART. 148
Applicability
1. Without legal
1. With legal
impediment to marry.
impediment to marry.
2. Void marriages due
2. Adulterous
to absence of formal
relationships
requisite
3. Bigamous or
polygamous marriages
4. Incestuous void
marriages under Art.
37
5. Void marriages by
reason of public policy
under Art. 38
Salaries and Wages
Owned in equal
Separately owned by
shares
the parties
Property Acquired Exclusively by either
Party
Belongs to such party
Belongs to such party
provided there is
proof that he/she
acquired it by
exclusive funds
Property Acquired by Both Parties
Governed by the rules Owned by them in
of co-ownership
common in proportion
to their respective
contributions.
Presumption (prima facie)
Presumption of joint
No presumption of
acquisition and equal
joint acquisition.
sharing as to property When there is
acquired while they
evidence of joint
live together.
acquisition but none
as to the extent of
actual contribution,
there is a presumption
of equal sharing.
Forfeiture
When only one of the
If one of the parties is
parties is in good
validly married to
faith, the share of the
another, his/her share
party in bad faith in
in the co-ownership
the co-ownership shall shall accrue to the
be forfeited:
absolute community
or conjugal
a. In favor of their
partnership existing in
common children; or
such valid marriage.
If the party who acted
b. In default of or in
in bad faith is not
case of waiver by any
validly married to
or all of the common
another or if both
children or their
parties are in bad
descendants, in favor
faith, such share shall
of the innocent party.
be forfeited in the
manner provided in
the last paragraph of
Art. 147.
Cases:
or
Vitug v. Montemayor
Zulueta v. PANAM
The settlement entered into by Mrs. Zulueta with
the defendant PANAM would not bind the conjugal
partnership of the parties herein. In the case at
bar the principal part in interest is the husband.
Considering that the damages in question have
arisen from, inter alia, a breach of plaintiffs
contract of carriage with the defendant, for which
plaintiffs paid their fare with funds presumably
belonging to the conjugal partnership. We hold that
the said damages fall under par. (1) of Art 153 the
right thereto having been acquired by onerous
Caltex V. Felias
Held: A lot belonging to the parents and later
donated by them to their daughter belonged to the
parphernal property and the building constructed
thereon before the donation follows the rule
accessory follows the principal. The donation
transmitted to her the rights of a landowner over
the building constructed on it. As such the lot and
the building are not answerable for the obligations
of her husband.
Calimlim-Canullas v. Fortun
Facts: Husband abandoned his family and was
convicted for concubinage. In 1980 he sold the
land he inherited from his deceased father during
the marriage to his concubine. The concubine
initiated a complaint to quiet title and damages
against the legal wife.
Held: The alienation of the property without the
consent of the legal wife was not valid because the
contract of sale was null and void for being
contrary to morals and public policy. (Art. 1409 of
the NCC)
Both the land and the building belong to the
conjugal partnership but the conjugal partnership
is indebted to the husband for the
value of the land and so the husband is entitled for
reimbursement at the time of the liquidation of the
conjugal partnership.
Luzon surety V. De Garcua
Conjugal partnership is only liable for such debts
and obligations contracted by the husband for the
benefit of the conjugal partnership, There is none
in this case. This particular codal provision in
question rightfully emphasized the responsibility of
the husband as administrator. He is supposed o
conserve and, if possible, augment the funds for
conjugal partnership, not dissipate them. If out of
friendship and misplaced generosity on his part the
conjugal partnership would be saddled with
financial burden, then the family stands to suffer.
Cobb-perez v. Lantin
In the NCC, Art. 160, the party who invokes this
presumption must first prove that the property in
controversy was acquired during the marriage. In
the case at bar, there is no evidence as to when
the shares of stocks were acquired, the fact that
xxx
(2) All debts and obligations contracted during the
marriage by the designated administrator-spouse
for the benefit of the conjugal partnership of gains,
or by both spouses or by one of them with the
consent of the other;
(3) Debts and obligations contracted by either
spouse without the consent of the other to the
extent that the family may have been benefited;
If the conjugal partnership is insufficient to cover
the foregoing liabilities, the spouses shall be
solidarily liable for the unpaid balance with their
separate properties.
Defendant-husband cannot allege as a defense
that the amount of US $25,000.00 was received as
his share in the income or profits of the
corporation and not as a loan. Firstly, defendanthusband does not appear to be a stockholder nor
an employee nor an agent of the corporation, H. L.
Carlos Construction, Inc. Since he is not a
stockholder, he has no right to participate in the
income or profits thereof. In the same manner that
as he is not an employee nor an agent of H. L.
Carlos Construction, Inc., he has no right to
receive any salary or commission therefrom.
Secondly, the amount advanced for the purchase
of the house and lot came from the personal
account of the plaintiff. If, indeed, it was to be
construed as defendant-husbands share in the
profits of the corporation, the checks should come
from the corporations account and not from the
plaintiffs personal account, considering that the
corporation has a personality separate and distinct
from that of its stockholders and officers.
Garcia V. Manzano
The Lower court did not err in dismissing the
complaint on the ground that the complaint does
not warrant for a separation of property. Both the
old and new civil code require the separation of
property shall not prevail unless expressly
stipulated in marriage settlements before the union
is solemnized or by formal decree during the
existence of the marriage and in the latter case, it
may only be ordered by the court for causes
specified in Art. 191 of the NCC. Such article must
be limitative, in view of the Codes restrictive
policy.
The remedy of the aggrieved spouse in case of the
maladministration of the other spouse is to revoke
Lacson V. Jose-Lacson
We hold that the compromise agreement and the
judgment of the CFI grounded on the said
agreement are valid with respect to the separation
of property of the spouses and the dissolution of
the conjugal partnership.
The law allows separation of property of the
spouses and the dissolution of their conjugal
partnership provided judicial sanction is secured
beforehand. Thus the new Civil Code provides:
In the absence of an express declaration in the
marriage settlements, the separation of property
between spouses during the marriage shall not
take place save in virtue of a judicial order. (Art.
190, emphasis supplied)
The husband and the wife may agree upon the
dissolution of the conjugal partnership during the
marriage, subject to judicial approval. All the
creditors of the husband and of the wife, as well as
of the conjugal partnership, shall be notified of any
petition for judicial approval of the voluntary
dissolution of the conjugal partnership, so that any
such creditors may appear at the hearing to
safeguard his interests. Upon approval of the
petition for dissolution of the conjugal partnership,
the court shall take such measures as may protect
the creditors and other third persons. (Art. 191,
par. 4, emphasis supplied).
In the case at bar, the spouses obtained judicial
imprimatur of their separation of property and the
dissolution of their conjugal partnership. It does
not appeal that they have creditors who will be
prejudiced by the said arrangements.
However, in so approving the regime of separation
of property of the spouses and the dissolution of
their conjugal partnership, this Court does not
thereby accord recognition to nor legalize the de
facto separation of the spouses.
however, that the CFI erred in depriving the
mother, the respondent spouse, of the custody of
the two older children (both then below the age of
7).
Yaptinchay v. Torres
The common-law husband was already
married and the common-law wife alleges that
the house in question was common property
between them.
Held: She did not prove her actual
contribution of the house. She must prove her
contribution to prove the house was common
property. The presumption does not lie in her
case.
Maxey v. CA
(This was a case of Common-law marriage because
the military style marriage of the spouses were not
recognized. There was no legal impediment for
IV. FAMILY
FAMILY HOME
Proof of Filiation:
1. Primary
* Record of birth appearing in civil register or a
final judgment; or
* Admission of legitimate filiation in a public
document or a private handwritten instrument
signed by the parent concerned.
2. Secondary
a. Open and continuous possession of the status
of a legitimate child; or
b. Any other means allowed by the Rules of
Court and special laws.
KINDS OF CHILDREN
Requisites:
1.
2.
3.
4.
LEGITIMATED
a. Conceived or born
during a valid marriage
of parents or lawful
wedlock.
ILLEGITIMATED
Conceived and born
outside a valid
marriage or outside
lawful wedlock.
LEGITIMATED
Originally illegitimated
but later considered
legitimate by legal
fiction by subsequent
marriage of parents
who, at the time of
conception, had no
legal impediment to
marry each other.
1. Use of surname of
the mother.
1. Bear surname of
father.
2. Support
b. Children conceived as
a result of artificial
insemination on the wife.
Rights
c. Children born to
marriages void under
Arts. 36 and 53.
1. Bear surname of
father.
2. Receive support from
parents, ascendants,
brothers and sisters.
3. Entitled to legitimes
and other successional
rights under the Civil
Code
3. Legitimate (half of
the legitimate of
legitimate children)
3. Entitled to legitimate
and other successional
rights under the Civil
Code.
*Primary
1. Record of birth
appearing in the civil
register or a final
judgment.
2. Admission of
legitimate filiation in a
public document or
private handwritten
instrument and signed
by parent concerned.
* Secondary
1. Open and continuous
possession of the status
of a legitimate child.
2. Any other means
allowed by the Rules of
Court and special laws.
To establish status
Ground
Impugning
for
* May be brought by a
child during his or her
lifetime and should be
transmitted to the heirs
id the child dies during
minority or in a state of
insanity.
* Heirs shall have 5
years within which to
institute the action.
1. Physical impossibility
of husband to have
sexual intercourse with
his wife within first 120
days of the 300 days
immediately preceding
birth.
*Acknowledgment not
needed: marriage of
parents enough.
* If parents who
contract marriage do
not accept child as their
child must prove
filiation by the means
provided in Arts. 172,
173, 175.
1. Subsequent marriage
of parents void.
2. Biological and
scientific reason.
3. For children conceived
through artificial
insemination, written
authorization obtained
thru fraud, mistake,
violence, intimidation or
undue influence.
Periods of Filing
* Husband or heirs
* Heirs may impugn only
in the ff. cases:
1. Husband dies before
expiration of the period
for bringing action.
2. Husband dies after
filing without desisting
therefrom.
3. Child was born after
death of husband.
* 1 year if husband/heirs
reside in the city or
municipality where the
child was born or birth
was recorded.
*2 years if
husband/heirs do not
reside in the same city
or municipality.
* 3 years if husband is
abroad and birth is here
or recorded here, or vice
versa.
VI.
ADOPTION
a.
b.
Except:
Adopter is the biological parent of the adoptee;
Adopter is the spouse of the adoptees parent.
Cases:
Tayag v. CA
Facts : Petitioner argues that assuming arguendo
that the action is one to compel recognition,
private respondent's cause of action has prescribed
for the reason that since filiation is sought to be
proved by means of a private handwritten
instrument signed by the parent concerned, then
under paragraph 2, Article 175 of the Family Code,
the action to establish filiation of the illegitimate
minor child must be brought during the lifetime of
the alleged putative father. In the case at bar,
considering that the complaint was filed after the
death of the alleged parent, the action has
prescribed and this is another ground for the
xxx
xxx
is
1.
2.
3.
4.
5.
6.
B. INTER-COUNTRY
ADOPTION (1995) REPUBLIC
ACT NO. 8043
Inter-Country Adoption
* The socio-legal 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.
* The child must first be placed under adoption in
the Philippines before he is placed for inter-country
adoption.
Who May Be Adopted:
* Only a legally-free child (a child who has been
voluntarily committed to the DSWD of the
Philippines, in accordance with the Child Youth
Welfare Code).
An alien qualified to adopt under the Child Youth
and Welfare Code, which was in force at the time
of the filing of the petition, acquired a vested right,
which could not be affected by the subsequent
him.
Date of Effectivity
Filipino Citizen
a.
b.
c.
d.
e.
FAMILY CODE
August 3, 1998
a.
b.
Aliens or Foreigners
a.
b.
c.
d.
a.
b.
c.
d.
Husband
and
Adopting Jointly
Wife
a.
b.
c.
Minor
VII.
SUPPORT
Cases:
Luna v. IAC
The SC rules that in all questions relating to the
care, custody and education and property of the
children, the latters welfare is paramount. This
means that the best interest of the minor can
override procedural rules and even the rights of
the parents to the custody of their children. The
desire and preference of the child to stay with her
grandparents instead of her biological parents and
who had signified her intention to kill herself and
run away from home if she should be separated
from her grandparents and forced to live with her
biological parents should prevail over procedural
rules.
SPOUSES
CHILDREN
During the Marriage
From the community
From the
property.
community
property.
Pending Litigation
From the community
From the separate
property assets except in property of the
Art. 203 applies, that if
spouse.
the claimant spouse is
the guilty spouse, he/she
will not be entitled to
support. If the spouses
are under conjugal
partnership of gains,
support is considered an
advance of such spouses
share; the rule does not
apply if the spouses are
under absolute
community of property,
based on Art. 153.
After Litigation
No obligation to support
except is there is legal
separation, in which case
the court may require
the guilty spouse to give
support.
SOURCES OF SUPPORT
FACTS:
Lt. Leouel Santos married private respondent Julia
Bedia on Sept. 20, 1986 in Illoilo MTC and later
by church wedding. They lived with the latters
parents and eventually gave birth to Leouel
Santos, Jr. on July 18, 1987. The relationship
turned sour when they began quarelling over
frequent interferrence of Julias parents and the
issue of liveing independently from the in-laws.
On May 18, 1988, Julia left for the United States
(US) to work as nurse despite Leouels
protestations. Seven months thereafter or on
January 1, 1989, she called up from the US with
the promise of returning home soon, but she
never did. Given the chance, Leouel went to the
US for a training program sponsored by the
Armed Forces of the Philippines (AFP) from April
to August 1990. He desperately tried to locate
her there but failed.
He then filed with the Regional Trial Court (RTC)
for the nullification of their marriage under Article
36 of the Family Code, on the ground of
psychological incapacity. Summons was served
by publication in a newspaper of general
circulation in Negros Oriental. In her answer,
Julia claimed that it was Leouel who was
irresponsible and incompetent.
The RTC in
November 1991 dismissed the case for lack of
merit. On appeal, the Court of Appeals (CA)
affirmed the RTC decision.
ISSUE: Whether or not the marriage may be
declared a nullity prusuant to Artcile 36 of the
Family Code.
HELD:
Article 36 cannot be taken and construed
independently, but must stand in conjunction with
existing precepts of laws on marriage.
Thus
correlated, psychological incapacity should refer
no less than a mental (not physical) incapacity
that causes a party to be truly incognitive of the
basic marital covenants that concomitantly must
be assumed and discharged by the parties to the
marriage which, as so expressed by Article 68 of
the Family Code, include their mutual obligations
to live together, observe love, respect and fidelity
and render help and support. There is hardly any
doubt that the intendment of the law has been to
confine the meaning of psychological incapacity to
the most serious cases of personality disorders
clearly demonstrative of an utter insensitivity or
claimed
in
VI
upon
the
the
Suspension or Termination
Authority, Arts. 228-233
of
Parental
USE OF SURNAME
A Married Woman May Use:
1. Her maiden first name and surname and add
her husbands surname; or
2. Her maiden first name and her husbands
surname; or
3. Her husbands full name, but prefixing a word
indicating the she is his wife, such as Mrs.
Llanet v. Agrava
X.
Silva v. Peralta
In view of the non-existence of appellees
marriage with Saturnino Silva, and the
latters actual marriage to plaintiff Ledesma,
it is not proper for Esther to continue
representing herself as the wife of Saturnino.
Art. 370 of the Civil Code of the Philippines
authorizes a married woman to use the
surname of her husband; impliedly excludes
others from doing otherwise.
Calderon v. Republic
A petition to change the name of the infant to
the surname of her stepfather, as in this case,
should be granted where to do so is clearly for
the best interest of the child it appearing that
such change would promote the personality of
the child and remove the stigma of illegitimacy
as long as it does not cause prejudice or injury
to the interest of the State or of other
persons. The stepfather already agreed.
Naldoza v. Republic
We hold that the trial court did not err in denying
the petition for change of name. The reasons
adduced for eliminating the father's surname are
not substantial enough to justify the petition. To
allow the change of surname would cause
confusion as to the minors' parentage and might
create the impression that the minors are
illegitimate since they would carry the maternal
surname only. That would be inconsistent with
their legitimate status as indicated in their birth
records.
(Desirous of obliterating any connection between
her two minor children and the scrapegrace father
is not a good reason. The crime of the father is
not ground to change the surname.)
ABSENCE
Presumption of Death:
A. Ordinary Absence
1. 7 years it being unknown whether or not the
absentee still lives, he is presumed dead for all
purposes except for those of succession.
2. 10 years for purposes of opening succession.
3. Disappearance after the age of 75 an
absence of 5 years is sufficient.
B. Qualified/Extra-Ordinary Absence:
1. On board vessel lost during a sea voyage or an
airplane which is missing; period is counted
from the loss of the vessel or airplane;
2. In the armed forces who has taken part in war;
3. In danger of death under other circumstances
and his existence has not been known.
Administration of the
Absentee, arts. 387-389
Art. 382. The appointment referred to in the
preceding article having been made, the judge
shall take the necessary measures to safeguard
the rights and interests of the absentee and shall
specify the powers, obligations and remuneration
of his representative, regulating them, according
to the circumstances, by the rules concerning
guardians. (182)
Property
of
the
WHEN TO FILE
No statutory period.
Spouse.
Declaration of
Absence
* Without administrator
2 years from time of
disappearance
* With administrator
5 years from time of
disappearance.
a. The spouse;
b. Voluntary heirs;
c. Intestate heirs; and
d. Those who may have
over the property of
the absentee some
right subordinated to
the condition of the
absentees death.
Presumption of
Death
* Ordinary absence 7
years
4 years for purposes
of remarriage
Exception:
Succession 10 years
75 years of age 5
Spouse
a.
b.
REMEDY
a. receivership;
b. Judicial separation of
property; or
c. Authority to be sole
administrator of the conjugal
partnership.
Declaration of Absence and
Appointment of Administrator
(Spouse shall be preferred)
but only under the following
cases:
a. When the absentee has
properties which have to be
taken care of or administered
by a representative appointed
by the Court
b. When the spouse of the
absentee is asking for
separation of property
c. When the spouse of the
absentee is asking the Court
that the administration of all
classes in the marriage be
transferred to her
* Action to declare a person
presumptively dead is proper
only when the spouse of the
absentee wants to remarry.
years
*Extraordinary absence
4 years (2 years for
purposes of remarriage)
Cases:
Lukban v. Republic
The wife intends to remarry and alleged a well
founded belief that her husband is dead
(husband left after huge quarrel and was gone
for 20 years)
The SC held that the petition to declare
absence is denied. Back then, there was no
law about absentism and so absentism must
be based on well grounded belief which was
not established in this case.
Aboitiz v. Pepito
We go deep into the recitals of the notice and claim
for compensation. It simply says that while
thevessel was navigating, "the herein deceased
was lost or reported missing". This claim was filed
onJanuary 12, 1962, or barely 42 days after the
event took place. At that time, no presumption
existed thatDemetrio Pepito was dead. The boat
was not lost. This opens up a number of
possibilities. Becausenothing is certain. Nobody
knows what has happened to him. He could have
transferred to another vessel or watercraft. He
could even have swam to safety. Or he could have
died. Or worse, he couldhave taken his own life.
Legal implications such as right to compensation,
succession, the legal statusof the wife are so
important that courts should not so easily be
carried to the conclusion that the man isdead.
2
The result is that death cannot be taken as a
fact.Non-controversion in compensation cases, as
in the case of pleadings in ordinary civil cases,
3
simplymeans admission of facts, not conclusions of
law.As applied to the case before us, the mere
failure to controvert the statement that Demetrio
B. RA 9048-clerical errors
C. Rule 108, Rules of Court
EXCLUDE: Act. No. 375, IRR of RA 9048
Cases:
Republic v. Macliing
The principal ground relied upon in this appeal
is that Rule 108 of the Rules of Court upon
whichprivate respondents anchor their Petition
is applicable only to changes contemplated in
Article 412of the Civil Code, which are clerical
or innocuous errors, or to corrections that are
notcontroversial
and
are
supported
by
indubitable evidence. (Tiong v. Republic, 15
SCRA 262[1965]). It is true that the change
from Esteban Sy to Sy Piao would necessarily
affect the Identity of thefather. (Barillo v.
Republic, 3 SCRA 725 [1961]) In that sense, it
can be said to be substantial. However, we find
indubitable evidence to support the correction
prayed for. . . . xxx xxx xxxIn the case of Ty
Kong Tin v. Republic, 94 Phil. 321 (1954), as
well as subsequent casespredicated thereon,
we forbade only the entering of material
corrections in the record of birth by virtue of a
judgment
in
a
summary
action.
the
the
the
and
vs.
Republic V. Valencia
FACTS: In this case, the pet i t ioner wish to
correct the following in her children's birth
certificates: citizenship from Chinese to
Filipino; status from legitimate to illegitimate;
and mother's status f rom married to single.
It is undoubtedly t rue that if the subject mat
ter
of a petition is not for correction of clerical
error of a harmless and innocuous nature but
one involving nationality or citizenship, which
is
indisputably
substantial
as well as
controverted, affirmative relief cannot be
granted in a proceedings summary in nature.
However, it is also true that a f ight in law may
be enforced and a wrong maybe remedied as
long as the appropr iate remedy is used.
Kumala v. Abubakar
FACTS: The correction sought here was to
change the ent ry of the sex f rom' M" to 'F" in
the bi r th certificate of the minor female
RULING: "'Nor would it be the first time that a
procedure, of this character did suf f ice for the
correction of an error in the records of Civil
Registrar In Malicden vs. Republic [1964], this
Court ruled that test imonial evidence may
override an erroneous entry Thereafter, in
Alioso vs. Lastimoso [1965), this court ruled
that an unauthorized false entry may be
Leonor v. CA
Facts: Husband gave grounds for cancellation
of the registration of the marriage because it
was a nullity due to the non-observance of the
legal requirements of a valid marriage.
(Registration of the marriage license was not a
formal nor essential requisite for marriage)
Held: The only errors that can be cancelled or
corrected under Rule 108 of the Rules of Court
are typographical or clerical errors, not
material or substantial ones like the validity or
nullity of a marriage. A clerical error is one
which is visible to the eyes or obvious to the
understanding; error made by a clerk or a
transcriber; a mistake in copying or writing
(Black vs. Republic, L-10869, Nov. 28, 1958);
or some harmless and innocuous change such
as a correction of name that is clearly
misspelled or of a mis-statement of the
occupation of the parent. Where the effect of a
correction in a civil registry will change the civil
status of petitioner and her children from
legitimate to illegitimate, the same cannot be
granted except only in an adversarial
proceeding.
The summary procedure under Rule 108, and
for that matter under Art. 412 of the Civil
Code, cannot be used by Mauricio to change
his and Virginias civil status from married to
PROPERTY,
OWNERSHIP, & ITS
MODIFICATIONS
PROPERTY is that branch of civil law which
classifies and defines the different kinds
appropriable objects, provides for their
acquisition and loss, and in general, treats of
the nature and consequences of real rights.
I. CHARACTERISTICS OF PROPERTY
a. utility for the satisfaction of moral or
economic
b. susceptibility of appropriation
c. individuality or substantivity
II. Classification (Arts. 415-418)
A. Hidden treasure (Arts. 438-439)
B. Right of accession (Art. 440)
1. Fruits (Arts. 441-444)
2. With respect to immovable property
a) Builder, planter, sower on land of
another in the concept of owner
(i) Builder, planter, sower in good faith
(Arts. 448-456)
(ii) Builder, planter, sower in bad faith
(Arts. 449-450)
b) Usufructuary (Art. 579)
3. Lands adjoining river banks
a) Alluvion (Art. 457)
b) Change of course of river (Arts. 461462 and P.D. 1067 or the Water
Code)
c) Avulsion (Arts. 459-463)
4. Islands (Arts. 464-465)
C. By object
1. Real or immovable
2. Personal or movable
D. By owner
1. Of public dominion
2. Of private ownership
a) Patrimonial property
(i) Distinction between private property
of individual persons and of state
entities
E. By nature
1. Consumable/non-consumable vs.
Fungible/non-fungible
CLASSIFICATIONS OF
PROPERTY
KINDS OF IMMOVABLES
1. Mobility or non-mobility: movable/personal
or immovable/real
2. Ownership: public or private dominion
3. Alienability: within the commerce of man or
outside the commerce of man
4. Materiality: tangible/corporeal or
intangible /incorporeal
5. Capability of substitution: fungible or nonfungible
be
be
1)
no
6.
Animal
houses,
pigeon-houses,
beehives, fishponds or breeding places
of similar nature, in case their owner
has placed them or preserves them
with the intention to have them
permanently attached to the land,
and forming a permanent part of it;
the animals in these places are
included;
7. Fertilizer actually used on a piece of
land;
8. Mines, quarries, and slag dumps, while
the matter thereof forms part of the
bed, and waters either running or
stagnant;
9. Docks and structures which, though
floating, are intended by their nature
and object to remain at a fixed place
on a river, lake or coast;
10. Contracts for public works, and
servitudes and other real rights over
immovable property.
The mere fact that the parties decided to
deal with the building, as personal property not
change its character as real property. Thus,
neither the original registry in the chattel
mortgage registry, nor the annotation in said
registry of the sale of the mortgaged property
had any effect on the building. However, since
CLASSIFICATION
OF
REAL
Cases:
NAVARRO V. PINEDA
9 SCRA 631
FACTS:
Pineda and his mother executed real estate
and chattel mortgages in favor of Navarro, to
secure a loan they got from the latter. The
REM covered a parcel of land owned by the
mother while the chattel mortgage covered a
residential house.
Due to the failure to
pay the loan, they asked for
extensions to pay for the loan. On the second
extension, Pineda executed a PROMISE
wherein in case of default in payment, he
wouldnt ask for any additional extension and
there would be no need for any formal
demand. In spite of this, they still failed to
pay.
Navarro then filed for the foreclosure of the
mortgages. The court decided in his favor.
HELD:
Where a house stands on a rented land
belonging to another person, it may be the
subject matter of a chattel mortgage as
FACTS:
Petitioner is engaged in a public utility
business, solely engaged in transporting
passengers and cargoes by motor trucks, over
its authorized lines in Mindanao. It owns a
main office and branch offices. To be found in
their offices are machineries and equipment,
which were assessed by the City Assessor as
real properties.
HELD:
Movable equipments to be immobilized in
contemplation of law must first be essential
and principal elements of an industry or works
without which such industry or works would
be unable to function or carry on the
industrial purpose for which
it was
established. We may here distinguish
those movables, which are essential and
principal elements of an industry, from those
which
may
not
be
so
considered
immobilized by destination because they are
merely incidental, not essential and principal.
In the case at bar, the tools and equipments in
question are by their nature not essential and
principal elements of petitioners business of
transporting passengers and cargoes by motor
trucks. They are merely incidentals.
FACTS:
Petitioner is the holder of a lumber concession.
It operated a sawmill on a land, which it
doesnt own. Part of the lease agreement was
a stipulation in which after the lease
agreement, all buildings and improvements
would pass to the ownership of the lessor,
which would not include machineries and
accessories.
In
connection
to
this,
petitioner had in its sawmill machineries and
other equipment wherein some were bolted in
foundations of cement.
HELD:
The machinery must be classified as personal
property.
The lessee placed the machinery in the building
erected on land belonging to another, with the
understanding that the machinery was not
included in the improvements which would
pass to the lessor on the expiration of the
lease agreement.
The lessee also treated
the machinery as personal
property in executing chattel mortgages in
favor of third persons.
The machinery was
levied upon by the sheriff as personalty
pursuant to a writ of execution obtained
without any protest being registered.
Furthermore,
machinery
only
becomes
immobilized when placed in a plant by the
owner of the property or plant, but not when
so placed by a tenant, usufructuary, or any
person having temporary right, unless such
person acted as the agent of the owner.
MINDANAO BUS COMPANY
ASSESSOR AND TREASURER
6 SCRA 197
V.
CITY
and
shares
in
other
TESTS
TO
DETERMINE
WHETHER
PROPERTY IS MOVABLE
a. By exclusion: movables are everything not
included in Art. 415
b. By description: an object is movable if it
possesses
1. capable of being carried from place to
place
2. change in location can be made
without injuring the real property to
which it is attached
Cases:
RICARDO PRESBITERO vs, FERNANDEZ
(Immovable Calinisan)
Facts: 1) ESPERIDION Presbitero failed to
furnish Nava the value of the properties under
litigation. 2) Presbitero was ordered by the
lower court to pay Nava to settle his debts. 3)
Nava's counsel still tried to settle this case with
Presbitero, out of court. But to no avail. 4)
Thereafter, the sheriff levied upon and
garnished the sugar quotas allotted to the
plantation and adhered to the Ma-ao Mill
District and registered in the name of
Presbitero as the original plantation owner. 5)
The sheriff was not able to present for
registration thererof to the Registry of Deeds.
6) The court then ordered Presbitero to
segregate the portion of Lot 608 pertaining to
Nava from the mass of properties belonging to
the defendant within a period to expire on
August 1960. 7) Bottomline, Presbitero did not
meet his obligations, and the auction sale was
scheduled. 8) Presbitero died after. 9)
RICARDO Presbitero, the estate administrator,
then petitioned that the sheriff desist in
holding the auction sale on the ground that the
levy on the sugar quotas was invalid because
the notice thereof was not registered with the
Registry of Deeds.
Issue: W/N the sugar quotas
(immovable) or personal properties.
are
real
V.
FACTS:
City Assessor of QC declared the steel towers
for real property tax under Tax Declarations.
After denying the respondents petition to
cancel these declarations, an appeal was taken
with the CTA which held that the steel towers
come under the exception of poles under
the franchise given to MERALCO; the steel
towers are personal properties; and the City
Treasurer is liable for the refund of the amount
paid.
HELD:
The steel towers of an electric company dont
constitute real property for the purposes of
real property tax.
IMPORTANT DOCTRINES/PRINCIPLES ON
IMMOVABLE AND MOVABLE PROPERTIES:
a) A Building is an immovable even if not
erected by the owner of the land. The only
criterion is union or incorporation with the
soil. (Ladera vs. Hodges, 48 O.G. 4374).
b) Parties to a contract may by agreement
treat as personal properties that which by
nature would be real property; and it is a
familiar phenomenon to see things classes
as real property for purposes of taxation
which on general principle might be
considered personal property (Standard Oil
Co. vs. Jaranillo, 44 Phil 631).
c) For purposes of attachment and execution
and for purposes of the Chattel Mortgage
Law, ungathered products have the nature
of personal property. (Sibal vs. Valdez, 50
Phil, 512).
d) The human body, whether alive or dead, is
neither real nor personal property, for it is
not even property at all, in that it generally
cannot be appropriated.
Under certain
2.
3.
4.
1)
PROPERTY OF PUBLIC
DOMINION
Definition: Properties owned by the State in
the sense that the State has control and
administration; in another sense, it is owned
by the public in general.
Kinds(3):
1. For Public Use
2. Not for public use, but intended for
some Public Service
3. For the Development of the National
Wealth
Characteristics:
1. Outside the commerce of man
Therefore cannot be leased, sold,
donated, or be the object of any
contract. (Mun. of Cavite vs Rojas, 30
Phil 602)
Case:
1. Phil Suburban Development Corp vs The
Auditor-General, L-19545
Facts: Petitioner sold to the Government a
parcel of land to be used by the latter in
connection with the relocation of squatters.
The Government occupied the land at once,
although it had only paid the down payment,
the balance to be paid after the seller have
caused the registration of the property in its
name.
Issue: In the meantime, is the seller(who has
not been completely paid, but already
delivered the land) required to pay the real
estate taxes?
Held: No, the seller is not required to pay the
real estate taxes on the land sold because it
has already delivered the land to the
Government. Ownership has therefore been
transferred by virtue of the said delivery.
PROPERTY OF PRIVATE
OWNERSHIP
Definition: Patrimonial property of the State
and LGU, and those that belong to private
persons either individually or collectively.
Muebles/Furniture: When used alone, it
shall not be deemed to include other things
which do not have as their principal object the
furnishing or ornamenting of a building,
EXCEPT where from the context of the law, or
the individual declaration, the contrary
appears. (Art 426)
OWNERSHIP
Kinds of Ownership:
1. Full Ownership includes all the rights
of an owner.
2. Naked Ownership where the right to
the use and fruits has been denied.
3. Sole Ownership vested in only one
person.
4. Co-ownership
(or
Tenancy in
Common) vested in two or more
persons.
7.
ACTIONS TO RECOVER
RECOVERY OF PERSONAL PROPERTY
1. Replevin
Governed by Rule 60, Rule of Court
(ROC)
An action or provisional remedy
where the complainant prays for
the recovery of the possession of
real property.
MACHINERY
AND
ENGINEERING
SUPPLIES, INC. V. CA, 96 PHIL 70
Machinery and equipment used for an
industry and indispensable for the carrying on
of such industry, cannot be the subject of
replevin, because under the premises, they are
real, and not personal property.
CALUB V. CA, 331 SCRA 55 (2000)
A property that is validly deposited in
custodial legis cannot be the subject of a
replevin suit.
b. Unlawful Detainer
An action brought when possession
by a landlord, vendor or vendee or
other person of any land or
building is being unlawfully
withheld after the termination or
expiration of the right to hold
possession, by virture of a
contract, express or implied.
The action must be brought within
one (1) year from the time the
possession became unlawful
receipt of last demand or letter of
demand
2. Accion publiciana
It is a plenary action in an ordinary
civil proceeding before the RTC
intended for the recovery of the
better right to possess.
The action must be brought within
a period of ten (10) years
The issue is possession de jure.
There are two kinds of accion
publiciana:
a. That were the entry was not
obtained thru FISTS (this can
be brought as soon as the
dispossession takes place,
without waiting for the lapse of
one year); and
b. That were the one (1) year
period for bringing forcible
entry or unlawful detainer has
already expired
3. Accion reivindicatoria
(reivindicatory action)
An action to recover ownership
over real property and must be
brought in the RTC where the real
estate is situated.
It must be brought within 10 years
or 30 years as the case may be
REPLEVIN
Definition
An action or provisional
remedy where the
complainant prays for the
recovery of the
possession of real
property.
FORCIBLE ENTRY
A summary action to
recover material or
physical possession of
real property when a
person originally in
possession was deprived
thereof by force,
intimidation, strategy,
threat, or stealth
(FISTS).
UNLAWFUL DETAINER
Action brought when
possession by a landlord,
vendor or vendee or other
person of any land or
building is being
unlawfully withheld after
the termination or
expiration of the right to
hold possession, by
virture of a contract,
express or implied.D5
ACCION PUB
It is a plenary
ordinary civil p
before the RTC
for the recove
better right to
There are two
accion publicia
a. That were t
was not obtain
E2FISTS (this
brought as soo
dispossession
without waitin
lapse of one y
b. That were t
year period fo
forcible entry
detainer has a
expired.
Issue
involved
Recovery of possession of
personal property
Where to file
MTC
MTC
Better right of
of real propert
(possession de
RTC
Prescription
Type of
Action
Others
in personam
quasi in rem
quasi in rem
Steps: 1) complaint is
filed at commencement or
at any time before
answer of other party 2)
complaint should allege
OWTA (owner, wrongfully
taken, taken against the
law) 3) pay bond double
the amount of property 4)
sheriff takes property 5)
doors broken if necessary
Defendant's remedy: a)
File a bond double the
amount; and b) Give copy
to plaintiff Stranger's
remedy - File a third
party claim
10 ye
quasi in
HIDDEN TREASURE
By treasure is understood, for legal purposes,
any hidden and unknown deposit of money,
jewelry, or other precious objects, the lawful
ownership of which the doer not appear. (Art.
439, NCC)
If the ownership of the treasure is known, but
the owner is already dead, same will not be
considered hidden treasure and must
therefore go to the owners rightful heirs.
DOCTRINE OF SELF-HELP
The owner or lawful possessor of a thing has the
right to exclude any person from the enjoyment
and disposal thereof. For this purpose, he may
use such force as may be reasonably necessary
to repel or prevent an actual or threatened
unlawful physical invasion or usurpation of his
property. (Art. 429)
Ex: I have a car; I see a thief about to get it. I can
use force in driving the thief away, provided
that the means I resort to are reasonable. As a
matter of fact, I can even chase him
immediately and recover the car from him by
force. If, however, I lose sight of him, and I see
him only tow or three days later, I will not be
justified in taking the law into my own hands. I
will have to resort to the courts of justice.
STATE OF NECESSITY
The owner of a thing has no right to prohibit the
interference of another with the same, if the
2.
EMINENT DOMAIN
The superior right of the State to own
certain properties under certain conditions, is a
limitation on the right of ownership, and may be
exercised even over private properties of cities and
municipalities, and even over lands registered with
a Torrens title.
RIGHTS OF
ACCESSION
3.
Depreciation
property.
caused
to
the
remaining
Arts. 440-475
ACCESSION
d. Engraftment
e. Writing
ii. Mixture
a. Confusion
b. Commixtion
iii. Specification
3. Leased or pledged;
4. In possession of an antichretic creditor
RIGHTS OF ACCESSION
WITH RESPECT TO WHAT
IS PRODUCED BY
PROPERTY
ACCESSION DISCRETA
RIGHT TO THE FRUITS
Arts. 442-444
NATURAL FRUITS
2.
INDUSTRIAL FRUITS
-
2. Subject to usufruct;
CIVIL FRUITS
Consists of:
a.
b.
c.
rent of buildings
price of leases of lands and other property
amount of perpetual or life annuities or
other similar income
RIGHTS OF ACCESSION
WITH RESPECT TO
IMMOVABLE PROPERTY
ACCESSION CONTINUA
(Accession Industrial)
Arts. 445-465
BADONG-E
1. He who is in Bad faith is liable for damages.
2. Accessory follows the principal
3. Union or incorporation must generally be
effected in such a manner that to separate the
principal from the accessory would result in
substantial Damage to either or diminish its
value.
4. To the Owner of the thing belongs the extension
or increases to such thing.
5. Bad faith of one party Neutralizes the bad faith
of the other so that they shall be considered in
good faith.
6. He who is in Good faith may be held responsible
but not penalized.
7. No one shall unjustly Enrich himself at the
expense of another
2.
OWNER OF MATERIALS
Good Faith
1. Remove them w/o injury to work constructed or
w/o plantings or constructions being destroyed.
2. Receive indemnity for value of materials.
Good Faith
1. Remove the materials in any event;
2. Be indemnified for damages.
Bad Faith
* Lose materials w/o right to be indemnified.
Bad Faith
OWNER OF MATERIALS
(OM)
Good Faith
1. Collect value of materials
primarily from BPS or
subsidiarily from LO if BPS is
insolvent.
2. Remove without perjury.
Good Faith
1. Option to:
a. Acquire improvements
b. Sell to BP except: value of
land is considerably more,
then forced lease.
c. Rent to S.
2. Without subsidiary liability for
cost of materials.
Good Faith
1. Option to:
a. Acquire improvement w/o
paying indemnity and
collect damages;
b. Demolition/restoration plus
damages;
c. Sell to BP or collect rent
from s plus damages.
Good Faith
1. Right of retention for necessary
and useful expenses.
Bad Faith
1. Lose materials w/o right to
indemnity.
2. Pay damages.
Bad Faith
1. Recover necessary expenses for
land preservation.
2. Loses improvement w/o right to
indemnity from LO unless LO
sells the land.
Bad Faith
1. Recover value from BPS (in
pari delicto).
2. If BPS, acquired
improvement, remove
materials if possible (w/o
injury)
3. No action against LO and may
be liable to LO for damages.
Perennial Crops
- are deemed to exist only when they actually
appear on the trees
Bad Faith
Cases:
FILIPINAS COLLEGES , plaintiff-appellee, vs.
TIMBANG, defendants. G.R. No. L-12812 TIMBANG,
plaintiff-appellant vs. BLAS, defendant-appellee.
September 29, 1959
This is an appeal taken from an order of the CFI of
Manila (a) declaring the Sheriff's certificate of sale
covering a school building sold at public auction
null and void unless within 15 days from notice of
said order the successful bidders, defendantsappellants spouses Maria Garcia Timbang and
Marcelino Timbang, shall pay to, appellee Maria
Gervacio Blas the sum of P5,750.00 that the
spouses Timbang had bid for the building at the
Sheriff's sale; (b) declaring the other appellee
Filipinas Colleges, Inc. owner of 24,500/3,285,934
undivided interest in Lot No. 2-a covered by
certificate of tile No 45970, on which the building
sold in the auction sale is situated; and (c)
ordering the sale in public auction of the said
undivided interest of the Filipinas Colleges, Inc., in
lot No. 2-a aforementioned to satisfy the unpaid
portion of the judgment in favor of appellee Blas
and against Filipinas Colleges, Inc. in the amount
of P8,200.00 minus the sum of P5,750.00
mentioned in (a) above. In the judgment of the
Court of Appeals, the respective rights of the
litigants have been adjudicated as follows:
(1) Filipinas Colleges, Inc. was declared to have
acquired the rights of the spouses Timbang in and
Under Arts 448 and 546, the owner of the land has
the right to choose between appropriating the
building by reimbursing the builder of the value
thereof or compelling the builder in good faith to
pay for his land. Even this second right cannot be
exercised if the value of the land is considerably
more than that of the building. In addition to the
right of the builder to be paid the value of his
improvement, Article 546 gives him the corollary
right of retention of the property until he is
indemnified by the owner of the land. There is
nothing in the language of these two article, 448
and 546, which would justify the conclusion of
appellants that, upon the failure of the builder zo
pay the value of the land, when such is demanded
by
the
land-owner,
the
latter
becomes
automatically the owner of the improvement under
Article 445. (2) What then is the remedy left to the
owner of the land if the builder fails to pay? Where
the builder in good faith fails to pay the value of
the land when such is demanded by the landowner,
the parties may resort to: (a) Parties may decide
to leave things as they are and assume the relation
of lessor and lessee, and should they disagree as
to the amount of rental then they can go to the
court to fix that amount. (b) Should the parties not
agree to leave things as they are and to assume
the relation of lessor and lessee, the owner of the
land in entitled to have the improvement removed
when after having chosen to sell his land to the
other party, i.e., the builder in good faith fails to
pay for the same. (c) The land and the
improvement may be sold at public auction
applying the proceeds thereof first to the payment
of the value of the land and the excess, if any, to
be delivered to the owner of the house in payment
thereof.
(3)
The appellants , owners o the land, instead of
electing any of the alternative above indicated
chose to seek recovery of the value of their land by
asking for a writ of execution; levying on the house
of the builder; and selling the same in public
auction with the owner as highest bidder, what is
the effect upon the rights of the parties? When
there is a claim by a third-party, to the proceeds of
the sale superior to his judgment credit, the
execution creditor, as successful bidder, must pay
in cash the amount of his bid as a condition
precedent to the issuance to him of the certificate
of sale. In the instant case, the Court of Appeals
has already adjudged that appellee Blas is entitled
to the payment of the unpaid balance of the
purchase price of the school building. Blas is
actually a lien on the school building are
concerned. The order of the lower court directing
the Timbang spouses, as successful bidders, to pay
FACTS:
Petitioner was the owner of a parcel of land
wherein he built an apartment complex. Due to
his failure to pay for realty taxes, his land was sold
in a public auction and was sold to spouses
Nuguid. He moved for the setting aside of the
auction but was denied.
HELD:
Requisites of Alluvium:
IGNACIO V.
VALERIANO
108 SCRA 335
DIRECTOR
OF
LANDS
AND
FACTS
Faustino Ignacio filed an application to register a
parcel of land (mangrove) which he alleged he
B. Avulsion
AVULSION
Deposit is sudden or
abrupt; may be seen.
Soil is identifiable or
verifiable.
Belongs to the owner
from whose property
it was detached.
ARTIFICIAL ACCESSION
A. Alluvium
Requisites:
1. Deposit should be gradual.
2. It is caused by the current of the river.
3. River must continue to exist
D. Formation of Islands
Rules of Ownership:
1. If formed on the sea:
a. Within territorial waters State
b. Outside territorial waters First country to
occupy.
2. If formed on lakes, navigable / floatable rivers
State
3. If formed on non-navigable / floatable rivers:
A. Adjunction
Case:
JAGUALING V. CA
194 SCRA 607
FACTS:
Eduave owned a parcel of land which later
was eroded due to a typhoon and through the
movement of land deposit.
Eduave granted
defendants to plant corn and bananas.
She
also hired a surveyor to put monuments.
She also paid taxes.
Here comes petitioner
who opposes the claim of ownership claiming
the typhoon caused the formation of island, the
same they occupied for 15 years now.
HELD:
The island formed belongs to the
the land with the nearest margin.
owner
of
RIGHTS OF ACCESSION
WITH RESPECT TO
MOVABLE PROPERTY
1.
2.
3.
4.
2 movables;
Belonging to different owners;
United forming a single object;
Separation would impair their nature or result
in substantial injury to either thing.
Arts. 466-475
Kinds
of accession
movables: AMS
continua
1. Adjunction or conjunction
2. Mixture
3. Specification
as
regard
1.
2.
3.
OWNER OF THE
PRINCIPLE
Good Faith
OWNER OF THE
ACCESSORY
Good Faith
1.
Acquire
accessory and pay owner
of the accessory for its
value; OR
2.
Demand
separation provided the
thing suffers no injury.
1.
Receive
payment for value of
accessory; OR
2.
GR: Demand
separation provided the
thing suffers no injury
XPN: If accessory is more
precious than principal,
he may demand
separation w/ or w/o
injury to the thing.
Bad Faith
Lose accessory and pay
damages.
1. Pay value of
accessory and pay
damages; OR
2. Have the things
separated, even though
there is injury to the
principal and pay
damages.
1. Receive payment
and damages; OR
Good Faith
1. Have accessory
separated w/ or w/o
injury to principal and
receive damages
Bad Faith
Bad Faith
Same as though both acted in good faith
things
Accessory
follows the
principle
Thing
adjoined
retain their
nature
things
Co-ownership
results
Things mixed
or confused
may either
retain or lose
their
respective
natures
Accessory
follows the
principle
The new object
retains or
preserves the
nature of the
original object.
C. Specification
Mixture
Involves at
least two
Specification
May involve
only one thing
QUIETING OF TITLE
Arts 476-481
It is a common-law remedy for the removal of any
cloud upon or doubt or uncertainty with respect to
title to real property. (Vda.de Aviles v. CA)
-To remove a cloud from the title to real estate, it
shall be brought in the province where the land is
situated
Kinds of Actions referred to
a. Remedial- action to remove the cloud or
to quite title
b. Preventive- action to prevent a future
cloud or doubt
ACTION TO
REMOVE CLOUD
To procure the
cancellation, release of
an instrument,
encumbrance, or claim
in the plaintiffs title
which affect the title or
enjoyment of the
property.
Plaintiff declares his
own claim and title,
and at the same time
indicates the source and
nature of the
defendants claim,
pointing its defects and
prays for the declaration
of its invalidity.
Nature of Action
-In Personam- enforceable only against the
defeated party, or privies.
-But technically, quasi in rem- an action in
personam concerning real property
Duty
of
Plaintiff
Reimbursement
-
to
make
Certain
If Plaintiff is in
Possession
If Plaintiff is out of
Possession
a. Period prescribes
b. The right to remove
cloud, he may also bring
the ordinary actions of
ejectment, publiciana or
reivindicatoria within the
proper prescriptive
periods.
CASES:
Gallar vs. Hussain
L-20954, May 24, 1967
Facts:
Hussain sold a retro in a private
instrument, a parcel of land protected by a Torrens
Title to Chichirita, but the right to purchase was
never exercised. The buyer sold the land to
another who in turn sold and delivered the
property in 1919 to Gallar. These subsequent sales
were in private instruments. Gallar who had been
in possession since 1919 sued in 1960 the heirs of
Hussain to compel them to execute a fomal deed
of conveyance so that Gallar could obtain a TCT.
The heirs interposed the defense of prescription.
Issues:
a. Is the suit one for specific performance or
quieting of title?
b. Has the action prescribed?
c. If the heirs of Hussain had been the possessors
of the property would the answer be the same?
Ruling:
a. Gallars suit should be considered an action to
quiet title because Gallar was the owner and the
sale had been consummated, despite the fact that
the transactions had all been merely in private
instruments.
b. Gallars suit should be considered an action to
quiet title because Gallat was the owner and the
sale had been consummated, despite the fact that
the transaction had all been merely in private
instruments.
b. Gallars suit had not prescribed. In an action to
quiet title, if the plaintiff is in possession, the suit
does not prescribe.
c.
Nicanora Bucton & Josefina Gabar are sisters-inlaw. Josefina bought a land from Villarin on
installment basis. Josefina then entered into a
verbal agreement with Nicanora that the latter
would pay one-half of the price and would then
own one-half of the land. Nicanora agreed. She
paid the initial amount evidenced by a receipt. Sps
Bucton then took possession of the land and made
thereon improvements. When a deed of sale was
executed in favor of Sps Gabar for the land, Sps
Bucton sought to obtain a separate title but was
refused. Sps Bucton filed a case for specific
performance which was granted by the trial court.
CA reversed, ruling that the action for specific
performance was based on the receipt of the initial
payment which was executed 22 years ago, thus
had already prescribed (10 years prescription for
an action based on a written agreement Art.
1444). Sps Bucton argues that as owners in actual,
continuous and physical possession of the land
since its purchase, their right of action did not
prescribe.
Issue; WON Sps Buctons right of action to compel
Sps Gabar to execute a formal deed of conveyance
in their favor, has prescribed.
Held: No.
The real and ultimate basis of petitioners action is
their ownership of one-half of the lot coupled with
their possession thereof (not the receipt), which
entitles them to a conveyance of the property.
By the delivery of the possession of the land, the
sale was consummated and title was transferred to
Sps Bucton, that the action is actually not for
specific performance, since all it seeks is to quiet
title, to remove the cloud cast upon Buctons
ownership as a result of Gabars refusal to
recognize the sale made and that as Sps Bucton
are in possession of the land, the action is
imprescriptible.
GARCIA V. CA, 95 SCRA 380
> A Transfer Certificate of Title cannot be nullified
by the issuance 43 years later of another Transfer
Certificate of Title over the same lot to another
person due to failure of the Register of Deeds to
cancel the Original Certificate of Title preceding the
title previously issued
> The earlier Transfer Certificate of Title prevails
> In case of involuntary registration, entry in the
day book is sufficient notice
> In voluntary registration, the buyer becomes the
registered owner the moment the deed is entered
Jalandoni v. PNB
The employees of the bank were negligent. They
did not require the sheriff to sell Jalandoni's land at
public auction. The bank is bound by its
employees' negligence. This case should teach the
responsible officers of the bank to be more vigilant
in exercising its rights and in supervising its
employees. The law helps the diligent and vigilant,
not those who sleep on their rights.
For laches and neglect on the part of those, who,
under the law are entitled to require of others the
fulfillment of their obligations, the statute of
limitations has been enacted, which provides that
such rights prescribe after a certain period of time,
in order that it may serve alike as a punishment
for those who do not know how to look after their
own interests, and as a source of reassurance to
those who may have rested in the belief that their
creditors had waived their rights, and also to
insure economic stability and the certainty of
rights. (Villareal, J., in Lutero vs. Siuliong & Co., 54
Phil. 272, 280.)
We find that the "notice of embargo" annotated in
1964 on Jalandoni's title is no longer enforceable
and has become a cloud upon his title. Following
the rule in the Ansaldo case, he and his heirs have
a good cause of action under article 476 of the
Civil Code for the removal of that state
encumbrance.
Moreover, article 478 of the Civil Code provides
that "there may also be an action to quiet title or
remove a cloud therefrom when the contract,
instrument
or
other
obligation
has
been
extinguished or has terminated, or has been
barred by extinctive prescription". (See sec. 112 of
Act No. 496.)
A court of equity will remove a cloud cast upon title
to property by a lien, interest, or title which has
become barred by reason of laches or the running
of the statute of limitations. ...
Liens which were acquired by virtue of judgments
or levies of execution, and which have become
barred by limitations or by delay in enforcing them,
and sales based on such hens, have been held to
be removable as clouds. (65 Am Jur 2nd 163-164).
RUINOUS BUILDINGS
AND TREES IN DANGER
OF FALLING
Only
claimed
portion/property can be adjudged
Mariano De Vera died in 1951. His widow
administered his property until her death in 1966.
De Veras nephew (Salvador Estrada) took over as
administrator of De Veras estate. Prior to the
widows death, she made an inventory showing
that De Veras property (located in Calasiao,
Pangasinan) measures 5417 sq. m (more or less).
Estrada however noticed that the Torrens title
under De Vera indicated that his property
measures 8752 sq. m. He learned that the
discrepancy is the 3732 sq. m. being occupied by
Juliana. Estrada sued to evict Juliana.
Juliana averred that she and her father have been
in open, continuous, exclusive and notorious
possession and in the concept of an owner of the
land since 1921; that theyve been paying taxes;
that the title held by Estrada was registered in
1947 but it only took them to initiate an action in
1967 therefore laches has set in.
ISSUE: Whether or not the disputed portion should
be adjudged in favor of De Veras estate.
HELD: No. The inclusion of Julianas land in De
Veras title was erroneously done. It was shown
that Juliana, an unlettered woman, agreed to have
Mariano de Vera borrow her title for the purposes
of Mariano obtaining a loan during de Veras
lifetime; that when de Vera registered his portion
of land adjoined to that of Juliana, the latters land
was erroneously included.
The error is highlighted by the fact that de Veras
widow, in her inventory before she died, attested
that de Veras portion of land is only 5417 sq. m.
more or less. The discrepancy approximates the
portion of land actually being occupied by Juliana.
By that, the only portion that can be adjudged in
favor of de Veras estate is that which was being
claimed by the widow (in her inventory). A
recalculation must however be made to specify the
exact measure of land belonging to each: 3732 sq
m should be retained by Juliana (portion which she
actually occupies) and 5020 sq. m. should go to de
Veras estate.
Arts. 482-483
Rule in Case of Building, Etc. in danger of
Falling
The owner of the building, wall, column, or
any other construction shall be obliged to
demolish it or execute the necessary work
in order to prevent it from falling.
-
CO-OWNERSHIP
Arts. 484-501
Co-ownership
- that state where an undivided thing or right
belongs to two or more persons
- not a juridical person, nor is it granted any form
of juridical personality
CO-OWNERSHIP
Each co-owner owns
only his deal share in
the whole property.
Each co-owner may
dispose of his deal
share without the
consent of the
others.
In case of death, the
share of a co-owner
descends to his
estate.
Prescription runs
against all coowners, even if one
of them happens to
be a minor.
CO-OWNERSHIP
Created by law,
contract, succession,
fortuitous event or
occupancy.
For common enjoyment
of the thing or right
owned in common.
No juridical personality.
Share is proportionate
to the respective
interests of the coowners.
Co-owners may dispose
of his share without the
consent of the others
JOINT OWNERSHIP
Each joint-tenant and all
of them own the whole
property.
Each joint tenant cannot
dispose of his own share
without the consent of all
the others.
In case of death, the
share of joint-tenant
goes to other jointtenant.
Prescription does not run
against all join-tenants if
one of them is a minor or
is under legal disability.
ORDINARY
PARTNERSHIP
Contract.
To obtain profits.
Has a juridical
personality.
Shares or profits may
be subject to
stipulation.
A partner cannot
dispose of his share
and substitute the
CO-OWNERSHIP
Generally, there is no
mutual representation.
Exception: when a coowner files a case for
ejectment, the rest are
represented.
Death or incapacity of a
co-owner does not
dissolve the coownership. The
deceased will be
represented by his
estate of heirs in the
co-ownership.
CO-OWNERSHIP
May arise by an
ordinary contract.
Sex of the co-owners is
immaterial.
Co-owners may be two
or more.
Profits are proportional
to respective interests.
buyer/assignee in his
place without the
consent of the others.
Law fixes no limit.
ORDINARY
PARTNERSHIP
Generally, there is
mutual representation
, unless otherwise
stipulated.
Death dissolves the
partnership.
CONJUGAL
PARTNERSHIP
Arises only because of
the marriage contract.
One must be a male
and other a female.
Conjugal owners are
always only two.
Profits are generally
50-50 unless a
contrary stipulation is
in a marriage
settlement.
Death of either
husband or wife
dissolves the conjugal
partnership.
Generally, the
husband is the
administrator.
Encouraged by law to
provide for better
family solidarity.
Extinction of Co-ownership
1. Total destruction of the thing
CONDOMINIUM ACT
(RA NO. 4726)
Concept of Condominium may include, in
addition, a separate interest in other portions
of such real property. Title to common areas,
all
units
What is a Project
entire parcel of real property divided or to be
divided in condominiums, including all structures
thereon.
SOME SPECIAL
PROPERTIES
1.
WATERS
Is acquired by :
A. Administrative concession
-
Governed
by
Irrigation
Law
as
amended by Act 3523.
The application is made to the
Secretary
of
Public
Works
and
Communications thru the Director of
Public Works.
P.D 1067
A decree instituting a water code, thereby
revising and consolidating the laws governing the
ownership,
appropriation,
exploitation,
development, conservation and protection of water
resources.
OWNERSHIP OF WATERS
(P.D 1067)
RIPARIAN RIGHTS
A. Right to the natural flow of the waters
B. Right of access to and use of the waters
C. Right of accretion
a.
b.
c.
d.
GOVERNING LAWS
A. Spanish law of waters of Aug. 3, 1866
B. Irrigation law (amended by Act 3523)
C. Civil code
SUBTERRANEAN WATERS
e.
f.
g.
Atmospheric water
Subterranean or ground water
Seawater
LANDS
which
Duration of Marks
-
2. MINERALS
-
A. Injunction
B. Seizure and destruction of all necessary
paraphernalia
C. Damages, which consist of
(i) Reasonable profit the complainant
would have made
(ii) Actual profit which inringer made
3. TRADEMARKS AND
TRADE NAMES
A. Abandonment
ELEMENTS OF GOODWILL
A. Place
B. Name
C. Reputation
POSSESSION
DOCTRINE OF CONSTRUCTIVE
POSSESSION
- applies when the possession is under
title calling for the whole, i.e.,
possession of a part is possession of
the whole.
-Constructive possession
a) tradicion brevi manu (one who
possess a thing short of title of
owner lease );
b) tradicion constitutum
possesorium (owner alienates
thing but continues to possess
depositary, pledgee, tenant)
(2) Intention to possess (animus
possidendi)
- it is a state of mind whereby the
possessor intends to exercise and
DEGREES OF POSSESSION
1.
OCCUPATION
Applies
only
to
property without an
owner
Occupation confers
ownership
There can be no
occupation without
ownership
from
CLASSES OF POSSESSION
1. In ones Own name possessor claims the thing
for himself
2. Voluntary by virtue of an agreement
BAD FAITH
Entitled while
possession
is
in good faith
Liable to the
lawful
possessor for
expenses
of
cultivation and
shall share in
net harvest to
time
of
possession
No
right
to
such pending
fruits
As to
expenses
(Necessary
expenses)
Right of
reimbursement
and retention
Right of
reimbursement
and retention
(Useful
Expenses)
Right of
removal
No right of
removal
As to
liability in
case
Of
deterioration
or loss
No liability,
unless due to
his fault/
negligence
Always liable
for
deterioration
or loss
As to fruits
received
As to
pending
fruits
g.
h.
ACQUISITION OF
POSSESSION
Ways of Acquiring Possession
1. By Material occupation/exercise of a right
2. By Subjection of the thing/right to our will
3. By proper Acts and legal Formalities established
for acquiring such right (Art. 531, NCC)
ACTS WHICH
POSSESSION
DO
NOT
GIVE
RISE
TO
Possession through:
1.
EFFECTS OF POSSESSION
Possessor in Good Faith
When he is not aware that there exists in his title
or mode of acquisition any flaw which invalidates
it. (Art. 526, NCC).
Possession in good faith ceases from the moment
defects in his title are made known to the
possessor.
This interruption of good faith may take place:
1. at the date of summons or
2. that of the answer if the date of summons
does not appear at the date
However, there is a contrary view that the date of
summons may be insufficient to convince the
possessor that his title is defective.
RIGHTS OF A POSSESSOR:
WHEN FRUITS CONSIDERED RECEIVED
1. Natural and industrial fruits from the time
they are gathered or severed
2. Civil fruits from the time of their accrual
and not their actual receipt. (Art. 544,
NCC)
EXPENSES:
1. Necessary Expenses
-They are those without which the thing
would physically deteriorate or be lost;
RULES
POSSESSION:
OF
PREFERENCE
OF
Cases:
DBP v. CA, 316 SCRA 650
Facts:
Spouses Pineda were the owners of a parcel of
land which they mortgaged to DBP in consideration
of a loan. As the loan was unpaid, the mortgage
was foreclosed and DBP took possession of the
property. It was opined by the Ministry of Justice
that the subject property may not be the subject of
foreclosure proceedings. The spouses then sought
to redeem the property
but was denied as the land was allegedly tenanted.
They then sought the cancellation of the title and
specific performance.
HELD:
A possessor in good faith is one who is not aware
that there exists in his title or mode of acquisition
any flaw, which invalidates it and he who alleges
bad faith on the part of the possessor has the
burden of proof.
USUFRUCT
It is a real right by virtue of which a person is
given a right to enjoy property of another with the
obligation of preserving its form and substance
unless the title constituting it or the law provides
otherwise.
(Jus Utendi + Jus Fruendi = Usufruct)
Characteristics
1. real right of use and enjoyment
of property owned by another
2. of a temporary duration
3. transmissible
4. may be constituted on real or
personal property, on tangibles
or intangibles
OBJECT OF USUFRUCT
a. May be real or personal property
b. May be sterile or productive (fruitful
things)
c. May be created over a right (as long as it
is not strictly personal or intransmissible,
and as long as it has an independent
existence).
RIGHTS
OF
ACTION
AVAILABLE
USUFRUCTUARY
(the person entitled to the usufruct)
a. Action to protect the usufruct itself;
b. Action to protect the exercise of
usufruct.
USUFRUCT
Includes all uses of
the property and for
all purposes, including
jus fruendi.
EASEMENT
Limited to a specific
use.
TO
the
Constituted on an
immovable property.
Extinguished by the
death of the
usufructuary, unless
contrary intention
appears.
Contemplates only
one property (real or
personal) whereby the
usufructuary uses and
enjoys the property as
well as its fruits, while
another owns the
naked title during the
period of the usufruct.
Usufruct may be
alienated separately
from the property to
which it attaches.
Constituted on an
immovable property.
Not extinguished by
the death of the
owner of the dominant
estate.
1. By law
2. By will of private persons in act inter vivos
3. By will of private persons expressed in the last
will and testament
4. By prescription.
Contemplates two
estates belonging to
two different owners.
Cannot be alienated
separately from the
property to which it
attaches.
Art. 564
CLASSIFICATION OF USUFRUCT ACCORDING
TO QUANTITY OR EXTENT (OF FRUITS OR
OBJECT)
a. As to fruits total or partial
b. As to object universal (if entire
patriomony) or singular or particular (if
only individual things)
CLASSIFICATION OF USUFRUCT AS TO THE
NUMBER OF PERSONS ENJOYING THE RIGHT
a. Simple if only one Usufructuary
enjoys
b. Multiple if several usufructuaries
enjoy
1. Simultaneous at the same time
2. Successive one after another
Classification of usufruct as to the QUALITY
or KIND of OBJECTS involved
a. Usufruct over rights
b. Usufruct over things
-normal
-abnormal
ABNORMAL USUFRUCT
How Constituted:
CAUCION JURATORIA
a sworn duly to take good care of the property of
another and return same as the end of the
usufruct.
Requisites:
1. Proper court petition.
2. Necessity
for
delivery
of
furniture,
implements or house
3. Approval of the court
4. Sworn promise
Note: This does not apply if usufructuary is
exempted from giving security.
RIGHTS OF USUFRUCTUARY
1. Rights to civil, natural, and industrial fruits of
property. (Art. 566)
he
may
alienate
(sell,
donate,
bequeath, or devise) the usufructuary
RIGHT (except a legal usufruct)
Those
caused
by
exceptional
circumstances, WON they are necessary
for the preservation of the thing
Those caused by the natural use of the
thing, but are not necessary for its
preservation
Naked owner obliged to undertake them
but when made by the owner, usufructuary
pays legal interest on the amount while
usufruct lasts
Naked owner cannot be compelled to
undertake extraordinary repairs
If indispensable and owner fails to
undertake extraordinary repairs may be
made by the usufructuary
EASEMENT OR
SERVITUDES
Section 1: Different Kinds of Easements
Easements or Servitudes
Encumbrance imposed upon an immovable for
benefit of another immovable belonging to a
different owner (Art. 613)
EASEMENT
Always a real right.
There is rightful
limited use without
ownership or
possession.
Can refer only to
immovable.
CHARACTERISTICS OF EASEMENT
1. A real right
2. Imposable only on anothers property
3. It is a jus n re aliena or a real right that may be
alienated although the naked ownership is
maintained)
4. It is a limitation or encumbrance on the servient
estate f or anothers benefit
5. There is inherence or inseparability from the
estate to which it belongs
6. It is indivisible even if the tenement is divided
7. It is intransmissible unless the tenement
affected be also transmitted or alienated
8. It is perpetual as long as dominant and/or
servient estate exists unless sooner extinguished
by the causes enumerated in the law.
CLASSIFICATION OF EASEMENTS:
1. As to Recipient Benefit:
a. Real in favor of another immovable.
b. Personal in favor of community, or of one
or more persons to whom encumbered
estate does not belong.
2. As to Source:
a. Legal established by law.
INSEPARABILITY OF EASEMENTS
Easements are inseparable from the estate to
which they actively or passively belong. (Art. 617)
CONSEQUENCES OF INSEPARABILITY
a. Easements cannot be sold or donated or
mortgaged independently of the real property
to which they may be attached.
b. Registration of the dominant estate under
Torrens System without the registration of the
voluntary easements in its favor, does not
extinguish the easements; but the registration
of the servient estate without the registration
of the easements burdening it extinguishes
said voluntary easements.
INDIVISIBILITY OF EASEMENTS
Partition or division of an estate doe not divide the
easement, which continues to be complete in that
each of the dominant estates can exercise the
whole easement over each of the servient estates,
MODES OF ACQUIRING
EASEMENTS
EASEMENTS ARE ACQUIRED THROUGH:
1. If continuous and apparent
a. By title not necessarily mean a document.
It means a juridical act or law sufficient to
create the encumbrance.
b. By prescription requires 10 years
irrespective of the good faith or bad faith, the
presence or absence of just title on the part of
the possessor. (Art. 620)
1.
2.
3.
RULES
ON
APPARENT
SIGNS
OF
AN
EASEMENT THAT APPARENTLY EXISTS
Sign does not mean a placard or sign post, but
an outward indication that the easement exists.
a. Before the alienation, there is no true
easement
b. After alienation
1. There arises an easement if the sign
continues to remain there unless there
is a contrary agreement.
2. There is no easement if the sign is
removed or if ther is an agreement to
this effect.
MODES OF EXTINGUISHMENT OF
EASEMENTS
EASEMENTS ARE EXTINGUISHED:
1. By merger in the same person of the ownership of the
dominant and servient estates;
Merger must be absolute, complete, not
temporary. Thus, if the owner of the servient
estate buys the whole portion affected, the
merger is complete and the easement is
extinguished. But if the portion bought is not
the portion affected, the easement naturally
remains. In Cabacungan v Corrales, L-6626,
Sept. 30, 1964), it was held that if the
dominant estate acquires only a part interest
in the servient estate, there is deemed to be
no merger.
2. By non-user for ten-years; with respect to
discontinuous easements, this period shall be
computed from the day on which they ceased to be
used; and with respect to continuous easements
from the day on which an act contrary to the same
took place;
Non- user refers to an easement that has
once been used because one cannot
discontinue using what one has never used.
LEGAL EASEMENTS
THE DIFFERENT LEGAL EASEMENTS:
a. the easements relating to waters
b. right of way
c. party wall
d. light and view
e. drainage
f. intermediate distances
g. easement against nuisance
h. lateral and subjacent support
EASEMENTS RELATING TO WATERS
Duties of Servient Estate:
The owner cannot construct works that would
impede the easement, which would divert the flow,
and burden another tenement but he may regulate
or control the descent of the water.
DUTIES OF DOMINANT ESTATE:
a. He cannot make works which will increase he
burden.
b. But he may construct works preventing erosion.
c. If the descending waters are the result of
artificial development recently set up, the
owner of the lower estate shall be entitled to
compensation for his loss or damage.
EASEMENT ALONG RIPARIAN BANKS
Width of zone burdened:
a. 3 meters along the river margins, for navigation,
floatage, fishing, salvage
b. Tow path
EASEMENT OF AQUEDUCT
The right arising from a forced easement by virtue
of which the owner of an estate who desires to
avail himself of water for the use of said estate
may make such waters pass through the
intermediate estate with the obligation of
indemnifying the owner of the same and also the
owner of the estate to which the water may filter
or flow.
ART. 642 to 646 deal with the legal (compulsory)
easement of aqueduct.
No limitation as to use
of the party wall for
exclusive benefit of a
party
Owner may free
himself from
contributing to the
cost of repairs and
construction of a
party wall by
renouncing all his
rights thereto
Co-ownership
Shares of the coowners can be divided
and separated
physically but before
such division, a coowner cannot point to
any definite portion of
the property as
belonging to him
None of the co-owners
may use the
community property
for his exclusive
benefit
Partial renunciation is
allowed.
PRESUMPTIONS TO EXISTENCE
1. In adjoining walls of buildings, up to common
elevation;
2. In dividing walls of gardens and yards;
EASEMENT
OF
INTERMEDIATE
DISTANCES AND WORKS
1. No constructions can be built or plantings made
near fortified places or fortresses without
compliance with the conditions required in
special laws, ordinances, and regulations
relating thereto.
Reason: public safety.
2. In the construction of any aqueduct, well, sewer,
furnace, forge, chimney, etc. The person
building shall follow the distances prescribed
by the regulations (ordinances) and customs, if
there be any, otherwise take precautions.
3. No trees shall be planted near a tenement or
piece of land belonging to another, except
when authorized by:
a. ordinances
b. customs
c. civil code
1) Tall trees 2 meters from boundary
line to center of tree
2) Small trees or shrubs 50 cm from
boundary line to center of tree or shrub
4. Intrusions or Extensions of Branches and Roots
a. Branches adjacent owner has the right to
demand that they be cut off (insofar as
they spread over his property)
b. Roots he may cut them himself (he has
acquired ownership by right of accession)
5. Fruits naturally falling upon adjacent land
belong to the owner of said land.
2.
Servient the person who commits the
nuisance
EASEMENT
OF
LATERAL
SUBJACENT SUPPORT
AND
1. By the title ;
2. by prescription of 10 years (continuous and
apparent easements);
a. Positive counted from the time of the
opening of the window. If it is through a
party wall.
b. Negative counted from the formal
prohibition on the servient owner
3. by deed of recognition;
4. by final judgment; and
5. by apparent sign established by the owner of
the two adjoining estates.
MODES OF
EXTINGUISHMENT OF
EASEMENTS
1. Merger in same person of ownership of
dominant and servient estate
Non-user
Discontinuous: 10 years from cessation
of usage;
Continuous: 10 years from day on
which act contrary to the same took
place
2. When anymore easement cannot be
used;
3.
By expiration of the term or the
fulfillment of the condition;
4. Renunciation of owner of the dominant
estate; and
5. Redemption agreed upon.
NUISANCE
Any acts, omission, establishment, business
or condition of the property or anything else which
1. injures or endangers the health and safety of
others;
2. annoys or offends the senses
3. shocks, defies or disregards the decency or
morality;
4. obstructs or interferes with the free passage to
any public highway or street or any body of
water or;
5. hinders or impairs the use of the property
CLASSES OF NUISANCES
1. PER SE nuisance at all times and under all
circumstances regardless of location and
surroundings;
2. PER ACCIDENS considered nuisance by
reason of circumstances, location, and
surroundings;
3. PUBLIC affects the community or a
considerable number of persons.
4. PRIVATE affects only a person or a small
number of persons.
REGISTRY OF
PROPERTY
Register may refer to:
1. the act of recording or annotating
2. the book of registry
3. the office concerned
4. the official concerned
THREE SYSTEMS OF REGISTRATION:
1. Land Registration Act (Torrens System)
2. Spanish Mortgage Law
3. Sec. 194 of the Revised Administrative Code, as
amended by Act 3344.
PURPOSE OF REGISTRATION:
1. to give true notice of the true status of real
property and real rights
2. to prejudice third persons
3. to record acts or contracts
4. to prevent commission of frauds, thus insuring
the effectivity of real rights over real property
NOTE: Registration is not a mode of acquiring
ownership. It is simply a means of
notification. However, some modes of
acquiring ownership cannot be binding
without the proper registration as required
by law.
1. OCCUPATION_____
-Seizure of a corporeal thing, without an owner,
with the intention to acquire ownership in
accordance with law.
REQUISITES:
1. There must be seizure of a thing;
2. The thing seized must be corporeal personal
property;
3. The thing must be susceptible of appropriation
by nature;
4. The thing must be without an owner;
5. There must be an intention to appropriate.
6. Requisites laid down by law must be complied
with (Villanueva vs. Claustro, 23 Phil. 54);
SPECIFIC INSTANCES:
1. Hunting and fishing
2. Finding of movables which do not have an
owner
3. Finding of abandoned materials
4. Finding of hidden treasure
5. Catching of swarm bees that has escaped from
its owner, under certain conditions
6. Catching of domesticated animals that have
escaped from their owners, under certain
conditions
7. Catching of pigeons without fraud or artifice
8.
Transfer of fish to another breeding place
without fraud or artifice
DIFFERENT MODES OF
ACQUIRING
OWNERSHIP
MODES
OF
OWNNERSHIP
1.
2.
3.
4.
5.
6.
7.
ACQUIRING
Occupation;
intellectual creation;
donation;
prescription;
law;
testate and intestate succession;
in consequence certain contacts.
IMPORTANT DOCTRINES/PRINCIPLES:
*A thing that has been lost or taken by force is not
ipso facto converted to res nullius for it to
belong to the person who takes possession of
the same without the necessity of proving the
mode of his acquisition and it may thus be
recovered by the original owner (See Art. 559).
Such thing cannot be acquired by prescription
even if extraordinary.
*Land cannot be the object of occupation because
when land is without an owner, it pertains to
the State (Report of Code Commission).
TRADITION / DELIVERY
Derivative mode of acquiring ownership and
other real rights by virtue of which they previously
existed, to that of the grantee by means of a just
title, there being both the intention to appropriate
REQUISITES:
1. Right transmitted should have previously
existed in the patrimony of the grantor;
2. Transmission should be by just title;
3.
4.
KINDS:
1. REAL TRADITION actual delivery
2. CONSTRUCTIVE TRADITION
a. Traditio Symbolica parties make use of
a token or symbol to represent the thing
delivered
b. Traditio Longa Manu by mere consent
of the parties if the thing sold cannot be
transferred to the possession of the vendee
at the time of sale
c. Traditio Brevi Manu when the vendee
already has the possession of the thing
sold not as owner but in some other
capacity
d. Traditio Constitutum Possessorium when the vendor continues in possession of
the thing sold not as owner but in some
other capacity
3. QUASI-TRADITION exercise of the right of
the grantee with the consent of the grantor.
4. TRADICION POR MINISTERIO DE LA LEY
delivery by operation of law
5. TRADITION BY PUBLIC INSTRUMENT
2. INTELLECTUAL
CREATION
Mode where the author acquires ownership over
the products of his intellect and consists,
fundamentally, in the power to authorize or refuse
the publication or production of such creations or
products (Please read the notes on Commercial
Law: Intellectual Property Rights)
3. DONATION
-An act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another,
who accepts it. (Ocampo vs. Ocampo, GR 150707,
April 14, 2004)
REQUISITES:
1.
Donor must have capacity to make the
donation
2. He must have donative intent (animus
donandi)
3. There must be delivery
4.
Donee must accept or consent to the
donation
ESSENTIAL FEATURES/ELEMENTS OF A TRUE
DONATION:
a. Consent, subject matter, cause (as in other
contracts)
b. The necessary form (including delivery in
some cases)
c.
b) Mortis Causa
1. Takes effect upon donors death with
conveyance of title;
2. Made in contemplation of his death without the
intention to lose the thing or its free disposal in
case of survival;
FORMALITIES IN DONATIONS:
1. Formalities of movable property
a. With simultaneous delivery of property
donated:
i. if value is P5,000.00 or less may
be made orally or in writing.
ii. if value exceeds P5,000 - shall be
made in writing; otherwise, it shall
be void.
b. Without simultaneous delivery
* Both the giving and acceptance must
be in writing, regardless of value.
2. Formalities of Immovable Property
a. must be in a public instrument,
specifying therein the property donated
and the value of the charges which the
donee must satisfy.
b. acceptance must be either:
i. in the same deed of donation; or
ii. if in a separate public instrument, the
donor shall be notified thereof in an
authentic form, and this step shall be
noted
in
both
instruments.
Otherwise, donation is void.
Note: This shall not take effect unless
it is done during the lifetime of the
donor.
NOTE:
Expression of gratitude to the
donor without express acceptance was held a
sufficient acceptance (Cuevas vs. Cuevas, G.R. No.
L-8327, December 14, 1955)
DONATIONS PROHIBITED BY LAW:
1. Made by persons guilty of adultery or
EFFECTS OF DONATION
1. Donee may demand the delivery of the thing
donated.
2. Donee is subrogated to the rights of the donor
in the property.
1.
2.
3.
KINDS OF PRESCRIPTION
1) Acquisitive Prescription one acquires
ownership and other real rights through the lapse
of time.
4. PRESCRIPTION
PYabao Notes
JUST TITLE
There is just title when the adverse claimant came
into the possession of the property through one of
the modes recognized by law for the acquisition of
ownership or other real right, but the grantor was
not the owner or could not transmit any right.
Requisites:
1. It must be proved and never presumed;
2. Capacity to acquire prescription;
3. The object must be susceptible of prescription;
4. The possession must be in concept of owner,
public, peaceful, continuous, and uninterrupted;
and
5. The period of possession must be 8 years if the
object is movable or 30 years if it is immovable.
INTERRUPTION OF PRESCRIPTION
1. Naturally when through any cause, the
possession shall cease for more than one year
Actions
Imprescriptible
30 Years
10 Years
ie.,
registration
of
sale/issuance of the certificate of
title
Note: In the case Sps. Pascual, et
al. vs. CA, et al. GR 115925,
Aug. 15, 2003, it was held
that repudiation takes place
when
the
adverse
party
registers the land.
Note: This is not ordinary fraud,
where the prescriptive period
8 Years
Action
to
recover
movables
(repliven) if possessor is in bad
faith,
without
prejudice
to
acquisition of title for a shorter
period or to the possessors title
(Arts. 559, 1505 and 1133 )
6 Years
5 Years
2 Years
1 Year
6 Months
40 Days
30 Days
OBLIGATIONS AND
CONTRACTS
I.
OBLIGATIONS
A. GENERAL PRINCIPLES
Obligation
Juridical necessity to give, to do or not to do. (Art.
1156)
SOURCES OF OBLIGATION
1. Law
Must be expressly or impliedly set forth and cannot
be presumed.
2. Contract
Must be complied with in good faith.
The law between the parties
Parties are allowed to enter into any stipulations,
provided they are not contrary to law, morals,
good customs, public order or public policy.
3. Quasi-Contract
Juridical relations 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 r benefited at the
expense at the expense of another.
Two Kinds of Quasi-Contracts
a. Negotiorum Gestio
Unauthorized management; this takes place when
a person voluntarily takes charge of anothers
abandoned business or property without the
owners authority.
b. Solutio Indebiti
1606, CC)
Generic Obligations:
1) Deliver the thing which is neither
superior nor inferior quality; and
2) Pay damages in case of breach
obligation.
Diligence Required
1. That agreed upon by the parties;
2. In the absence of stipulation, that required by
law in the particular case; and
3. If both the contract and law are silent,
diligence of a good father of a family.
of
of
Incidental Fraud
(Dolo Incidente)
Present during the
performance of a preexisting obligation.
Purpose is to evade
the normal fulfillment
of the obligation.
BREACH OF OBLIGATIONS
Voluntary debtor, in the performance of the
obligation, is guilty of:
a. default (mora)
b. fraud (dolo)
c. negligence (culpa)
d. contravention of the tenor of the obligation
Note: debtor is liable for damages
1.
2.
Causal Fraud
(Dolo Causante)
Present during the
time of birth of the
obligation
Purpose is to secure
the consent of the
other to enter into a
contract.
Results in the vitiation
of consent.
B. KINDS OF OBLIGATION
1)
2)
3)
4)
5)
6)
PURE OBLIGATION
CONDITIONAL OBLIGATION
Effectivity is subordinate to the fulfillment or nonfulfillment of a future and uncertain fact of event.
Kinds of Conditions:
1) Suspensive fulfillment of the condition
results in the acquisition of rights arising out of
the obligation
2) Resolutory - fulfillment of the condition
results in the extinguishments of rights arising
out of the obligation
3) Potestative - fulfillment of the condition
depends upon the will of a party to the
obligation
4) Casual fulfillment of the condition depends
upon chance and/or upon the will of a third
person
5) Mixed fulfillment of the condition depends
partly upon chance and/or the will of a third
person
6) Possible condition is capable of realization
according to nature, law, public policy and
good customs
7) Impossible condition is not capable of
realization according to nature, law, public
policy and good customs
8) Positive condition involves the performance
of an act
9) Negative condition is susceptible of partial
realization
10)
Divisible condition is susceptible of
partial realization
11)
Indivisible
condition
is
not
susceptible of partial realization
12)
Conjunctive where there are
several conditions, all of which must be
realized
13)
Alternative where there are several
conditions but only one must be realized.
1.
2.
2. Deterioration
Perishes;
Goes out of commerce (selling children as
slaves, prohibited by law);
Disappears in such a way that its existence is
unknown or it cannot be recovered (cargo
sinks with ship).
Reciprocal Obligations
Those which are created or
established at the same time, out of the same
cause, and which result in mutual relationships of
creditor & debtor between the parties
TACIT RESOLUTORY CONDITION
If one of the parties fails to comply
with what is incumbent upon him, there is a right
on the part of the other to rescind the obligation.
Right to Rescind
General Rule: The right to rescind needs judicial
approval.
Exceptions:
1. If there is an express stipulation of automatic
rescission
2. When the debtor voluntarily retuned the thing
2.
3.
CONDITION
1. Fact or event which
is future and uncertain
2. Future and
uncertain fact or event
w/c may or may not
happen
3. Exerts an influence
upon the very
existence of the
obligation itself
4. Has retroactive
effect
5. When it is left
exclusively to the will
of the debtor, the very
existence of the
obligation is affected.
ALTERNATIVE
OBLIGATION
Debtor may give the creditor wither one of several
prestations (to give, to do, or not to do).
FACULTATIVE
OBLIGATIONS
ALTERNATIVE
OBLIGATIONS
1. Comprehends only
one object or
prestations which is
due, but it may be
complied with by the
delivery of another
object or performance
of another prestation
in substitution
2. Choice pertains
only to debtor
3. Culpable loss
obliges the debtor to
deliver substitute
prestation without
liability to debtor
4. Fortuitous loss
extinguishes the
obligation
1.Comprehends
several objects or
prestations which are
due but may be
complied with by the
delivery or
performance of only
one of them
Solidary
liable for
creditors
obligation
2.
If there are 2 or
more debtors, compliance with the obligation
requires the concurrence of all of them, although
each for his own share. Consequently, only
proceeding against all of the debtors can enforce
the obligation.
If there are 2 or
more creditors, the concurrence of the collective
acts of all the creditors, although each for his own
share is also necessary for the enforcement of the
obligation. A creditor cannot act in representation
of the others, and it is also indivisible and,
therefore, not susceptible of partial fulfillment,
Effect of Assignment by Solidary Creditor
without Consent of Others
1. Assignee is co-creditor no violation of Art.
1213 because there can be no invasion of the
personal or confidential relationship
2.
the
Extraordinary Inflation
In
case
extraordinary
inflation or deflation of the currency stipulated
supervene, the value of the currency at the rime of
the establishment of the obligation shall be the
basis of payment, unless there is an agreement to
the contrary. (Article 1250, NCC; Singson vs.
Caltex (Phil.), Inc., GR 137798, October 4, 2000).
Extraordinary
inflation
exists when there is a decrease or increase in the
purchasing power of the Philippine currency which
is unusual or beyond the common fluctuation in
the value of said currency and contemplation of the
parties at the time of the establishment of the
obligation (Hubonhoa vs. CA, GR 95897 and
102604, December 14, 1999; Serra vs. CA, 299
SCRA 60; Hanh vs. CA, 173 SCRA 675; Filipino
Pipe and Foundry Foundation Corporation vs.
NAWASA 161 SCRA 32)
The effects of extraordinary
inflation are applicable only when there is an
official declaration by competent authorities
(Lantion vs. NLRC, 181 SCRA 513; Commissioner
of Public Highways vs. Burgos, 96 SCRA 831)
PAYMENT OR PERFORMANCE
General Rule: Creditor is not bound to accept
payment or performance by a third person.
Exceptions:
1. When made by third person who has an
interest in the fulfillment of the obligation; and
2. Contrary stipulation.
C. MODES OF
EXTINGUISHING AN
OBLIGATION
Without the
knowledge or
against the will of
debtor
Can recover only
insofar as payment
has been beneficial to
the debtor.
1.
2.
3.
4.
5.
1)
Application of Payment
Designation of the debt to which the payment must
be applied when the debtor has several obligations
of the same kind in favor of the same creditor
DATION IN
PAYMENT
One creditor
Not necessarily in
state of financial
difficulty.
Thing delivered is
considered as
equivalent of
performance
Payment extinguishes
obligation to the
extent of the value of
the thing delivered as
agreed upon, proved
or implied from the
conduct of the
creditor
4) TENDER
OF
CONSIGNATION
Requisites:
1) One debtor and one creditor;
2) Two or more debts of the same kind;
3) All debts must be due; and
4) Amount paid by the debtor must not be
sufficient to cover the debts
2)
PAYMENT BY
CESSION
Plurality of creditors
Debtor must be
partially or relatively
insolvent
Universally of property
of debtor is what is
ceded.
Merely releases the
debtor for net
proceeds of things
ceded or assigned
unless there is
contrary intention.
PAYMENT
AND
Tender of Payment
Manifestation
of
the debtor to the creditor of his decision to comply
immediately with his obligation
2.
3.
4.
5.
Consignation
Deposit
of
the
object of the obligation in a competent court in
accordance with rules prescribed by law after
refusal or inability of the creditor to accept the
tender of payment.
The rationale for consignation is to avoid the
performance of an obligation for becoming more
onerous to the debtor by reason or causes not
imputable. (Jespajo Realty Corp vs. CA et al., GR
113626, September 27, 2002)
Requisites:
a. The debt sought to be paid must be due.
b. There must be a valid and unconditional tender
of payment or any of the causes stated by law
for effective consignation without previous
tender of payment exists.
c. The consignation of the thing due must be first
announced to the persons interested in the
fulfillment of the obligation.
d. Consignation shall be made by depositing the
things due at the disposal of judicial authority.
e. The consignation having been made, the
interested parties shall also be notified thereof.
General Rule: It shall produce effects of payment
only if there is valid tender of payment.
Exceptions:
1. Creditor is absent or unknown or does nor
appear at the place of the payment.
2. Creditor is incapacitated to receive payment at
the time it is due;
3. When 2 or more persons claim the right to
collect;
4. When the title to the obligation has been lost.
5. When w/o just cause he refuses to give a
receipt.
6.
7.
REMISSION OR
CONDONATION
An act of pure liberality by virtue of which the
oblige, without receiving any price or
equivalent, renounces the enforcement of the
obligation, as result of which it is extinguished
in its entirety or in that part or aspect of the
same to which the remission refers.
Requisites:
1. It must be gratuitous.
2. It must be accepted by the obligor.
3. Formalities of a donation must be complied
in case of express remission.
4. Obligation must be demandable.
Kinds:
1. As to form
Express made in acceptance with formalities
prescribed by law of donations.
Implied not made in acceptance with
formalities of donation but deducible from
the acts of oblige/creditor.
2. As to extent
Total when the entire obligation is
extinguished.
Partial refers only to principal or accessory
obligation.
3. As to constitution
Inter Vivos constituted by agreement
between obligor and oblige which partakes
the nature of donation inter vivos.
Mortis Causa constituted by last will and
testament which partakes the nature of
donation mortis causa.
Essential Characteristics of Remission (Art.
1270)
1. Gratuitous in character.
2. Must be an act of pure liberality.
3. Creditor should not have received any price or
equivalent from the debtor as a result of his
act in removing the enforcement of obligation.
Necessity of Acceptance by Debtor
CONFUSION OR MERGER OF
RIGHTS
Merger of the characters of the creditor and
the debtor in one and the same debtor in
one person by virtue of which the obligation
is extinguished.
Requisites:
Characters of creditors and debtors must
be in the same person.
Take place in the person of either the
principal creditor or the principal debtor.
Complete and definite.
Kinds:
1. As to cause or constitution
Inter Vivos constituted by agreement of the
parties.
Mortis Causa by succession.
2. As to extent or effect:
Total if it results in the extinguishment of the
entire obligation.
Partial only a part is extinguished.
COMPENSATION
Extinguishment in the concurrent amount
of the obligation of those persons who are
reciprocally debtors and creditors of each
other.
Requisites:
1. Two parties, who, in their own right, are
principal creditors and principal debtors of
each other.
2. Both debts must:
a. Consists in money or of the same kind
and quality.
b. Due, liquidated and demandable.
3. No retention or controversy commenced by
3rd persons over either of the debts and
communicated in due time to the debtor.
4. Not prohibited by law.
DISTINCTION BETWEEN:
Compensation
Takes place ipso jure.
Capacity to give and
acquire not essential.
Payment
Takes effect by act of
the parties.
Capacity to give and
acquire is essential.
As a rules, partial.
Compensation
There must be two
persons who, in their
own right, are creditor
and debtors with each
other.
Must be at least two.
Confusion
There is only one
person in whom is
merged the qualities of
creditor and debtor.
Kinds of Compensation
A. As to cause:
1. Legal take effect by operation of law from the
moment all requisites are present.
2. Voluntary parties who are mutually creditor
and debtors agreed to compensate their
respective obligation, even though requisites
are not present.
3. Judicial takes effect by judicial decree
B. As to effect:
1. Total debts are equal in amount.
2. Partial not equal in amount.
Right of Guarantor to Set up Compensation
a.
b.
c.
2.
3.
Most
fundamental:
extinguishes
the
obligation/debt to the extent that the amount
of one is covered by the amount of the other.
NOVATION
Substitution or change in the obligation by another
resulting in the extinguishment or modification
either by:
1. Changing the object or principal conditions
(Objective)
2. Substituting another in place of the debtor
(passive subjective)
3. By subrogating another person in the rights of
the creditor.
Requisites of Novation
1.
2.
3.
4.
Modificatory
Novation
Old obligation subsists
to the extent it
remains compatible
with the amendatory
agreement
The unmodified potion
of the obligation
remains effective
In case of doubt on
whether the Novation
is extinctive or
modificatory, it is
presumed that it is
only Modificatory.
Kinds:
1. As to essence:
Objective or Real Novation Refers to change
either in the cause, object or principal
conditions of the obligation.
Subjective or Personal Novation Refers to the
substitution of the person of the third person in
the rights of the creditor.
2. As to Form and Constitution:
Express Novation
Second Form:
Conventional
Subrogation
Extinguishes the
original obligation
and creates new
one.
extinguishment
Partial Novation Merely a
there
is
absolute
modification
Assignment of
Credit or Rights
The transfer of the credit
or rights does not
extinguish or modify the
obligation. The
transferee becomes the
new creditor for the
same obligation.
The consent of the
debtor is not necessary.
Notification is enough for
the validity of the
assignment (Art. 1626)
Effectivity begins from
the notification of the
debtor.
The defect in the credit
or rights is not cured by
its mere assignment to a
third person.
The debtor can still set
up a defense (available
against the old creditor)
against the old creditor.
This is governed by
Articles 1624-1627
Subrogation
It is the transfer of all the rights of the
creditor to a third person, who substitutes him in
all his rights. It may either be legal or
conventional. Legal subrogation is that which takes
place without agreement but be operation of law
because of certain acts. Conventional subrogation
is that which takes place by agreement of parties.
Delegacion
Effected with the
consent of the creditor
at the instance of the
old debtor with the
concurrence of the new
debtor.
II. CONTRACTS
Distinction Between Payment by 3
Change of Debtor
Payment by 3rd
Person
1. Debtor is not
necessarily released
from debt
2. Can be done w/o
consent of creditor
3. There is only one
obligation
4. Third person has no
obligation to pay if
insolvent
rd
Person &
Change of debtor
1. One debtor is
released.
2. Needs consent of
creditor- express or
implied.
3. Two obligations: One
is extinguished and
new one created.
4. New debtor is
obliged to pay
Definition of Contract
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. (Art. 13050)
A. ELEMENTS OF CONTRACTS
1. Essential Elements those without which
there can be no contract.
a. Consent
b. Object
c. Consideration
In Real Contracts, DELIVERY is also an Essential
Element.
2. Natural Elements Those derived from the
nature of the contract and ordinarily accompany
the same. They are presumed to exist unless the
contrary has been stipulated.
3. Accidental Elements those which exist only
when the parties expressly provide for them for
the purpose of limiting or modifying the normal
effects of the contract.
CONSENT
Manifested by the meeting of the offer and
acceptance upon the thing and the cause
which are to constitute the contract.
Requisites:
Legal capacity of the contracting parties;
Manifestation of the conformity of the
contracting parties;
The parties conformity to the object,
cause, and the terms and conditions of
the
contract
must
be
intelligent,
spontaneous and free from all vices of
consent;
The said conformity must be real, and
not simulated or fictitious.
RELATIVITY OF CONTRACTS
Offer a proposal made by one contracting party
to another to enter into a contract. Offer must be
definite.
VICES OF CONSENT
the
the
the
the
SIMULATION OF CONTRACTS
1. Absolute simulation no real transaction is
intended.
Effect: Simulated contract is inexistent.
2. Relative simulation the real contract is
void but the hidden contract is valid if it is
lawful and has the necessary requisites.
Effect as to third persons with notice: The
apparent contract is valid on the principle of
estoppel.
OBJECT
3.
CAUSE
B. FORMS OF CONTRACTS
General Rule: Contracts should be obligatory, in
whatever form they may have been entered into,
provided all the essential requisites for their
validity are present.
Exceptions:
1. When law requires that a contract be in some
form in order that it may be valid.
2. When the law requires that a contract be in
some form in order that it may be enforceable.
The
contracting
parties
may
compel each other to observe the form
required by law once the contract is valid and
enforceable. (Art. 1357)
C. REFORMATION OF INSTRUMENTS
Reformation is that remedy in equity by
means of which the instrument is amended to
conform to the real intention of the parties.
Requisites:
1. Meeting of the minds to the contract.
2. True intention is not expressed in the instrument
by reason of mistake, accident, relative
simulation, fraud, or inequitable conduct
(FIRMA)
3. Clear and convincing proof of mistake, accident,
relative simulation, fraud, or inequitable
conduct
Instances
When
There
Can
Be
No
Reformation:
1. Simple, unconditional donations inter vivos;
2. Wills;
3. When the agreement is void;
4.
D.
RESCISSIBLE CONTRACTS
2.
3.
Rescission in Article
1191
It is principal action 1.
retaliatory in
character.
The only ground is 2.
non-performance of
ones obligations/s or
what is incumbent
upon him.
It applies only to
3.
reciprocal obligation.
4.
5.
6.
Rescission in Article
1381
It is subsidiary
remedy.
There are 5 grounds
to rescind. Nonperformance by the
other party is not
important.
It applies to both
unilateral and
reciprocal obligations.
Even 1 3rd person who
is prejudiced by the
contract may demand
the rescission of the
contract.
Court cannot grant
extension of time for
fulfillment of the
obligation.
Its purpose is to seek
reparation for the
damage or injury
caused, thus allowing
partial rescission of
the contract.
E. VOIDABLE CONTRACTS
F. UNENFORCEABLE CONTRACTS
Those which cannot be enforced by proper action
in court unless they are ratified.
STATUTE OF FRAUDS
Statute of Frauds requires certain classes of
contracts to be in writing to be enforceable. The
statute does not deprive the parties of the right
to contract with respect to the matters involved;
it merely regulates the formalities of the
contract to render it enforceable.
The purpose is to prevent fraud and perjury in
the enforcement of the obligation. Making
satisfies the statute. The application of such
statute presupposes the existence of a
perfected contract.
The contracts/agreements under the Statute of
Frauds require that the same be evidenced by
some note, memorandum of writing,
subscribed by the party charged or by his
agent, otherwise, the said contracts shall be
unenforceable.
The statute of frauds applies only yo
executory contracts, not to those that are
partially or completely fulfilled.
Agreements within the Statute of Frauds:
(Exclusive Enumeration)
1. Agreements not to be performed within one
year from the making thereof;
2. Special promise to answer for the debt, default
or miscarriage of another;
Note: The promise referred to here is a
collateral promise; and NOT the original
promise of the debtor to his own creditor.
3. Agreement in consideration of marriage other
than a mutual promise to marry;
4. Agreement for the sale of goods, etc. at a price
not less than P500.00;
5. Contracts of lease for a period longer than one
year;
6. Agreements for the sale of real property of
interest therein; and
7. Representation as to the credit of a third
person.
G. VOID OR INEXISTENT
CONTRACTS
VOID CONTRACTS
Void contracts are those were all of 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 contract itself is prohibited or declared
void by law.
INEXISTENT CONTRACTS
4.
5.
6.
7.
8.
VOIDABLE
Defect is caused by
vice of consent.
RESCISSIBLE
Defect is caused by
injury/damage either to
one of the parties of to
a 3rd person.
Do not, as a general
rule produce any legal
effect.
Action for the
declaration or nullity or
inexistence or defense
of nullity or inexistence
does not prescribe.
Not cured by
prescription
Cannot be ratified.
Cured by prescription
Cured by prescription
Can be ratified.
Assailed only by a
contracting party.
UNENFORCEABLE
Defect is caused by lack
of form, authority, or
capacity of both parties
not cured by
prescription.
Cannot be enforced by
a proper action in court.
Corresponding action
for recovery, if there
was total or partial
performance of the
unenforceable contract
under No. 1 or 3 of
Article 1403 may
prescribe.
Not cured by
prescription
Can be ratified.
Assailed only by a
contracting party.
Assailed directly or
collaterally.
Assailed directly or
collaterally.
NATURAL
OBLIGATIONS
Assailed directly or
collaterally.
Problem:
Suppose in the problem above, there was
payment of Xs obligation in 1986 by a friend,
A, without his knowledge and consent. Can A,
the friend who made the payment, ask for
reimbursement from X? Can A recover from
X? Why?
Ans: No. Under the law, 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
voluntarily reimburses the third person, the
obligor cannot recover what he has paid.
(Art. 1425, NCC).
Problem:
X, the father of Y, was indebted to Z in the amount
of PIM during his lifetime. He died without paying
it. Y inherited from X properties worth only
P400,000.00. Y paid Z the amount of PlM one
month after X's death. Can Y ask for the refund of
what he paid to Z? Why?
Ans:
No. Under the law, when a testate or
intestate heir voluntarily pays a debt of the
Problem:
ESTOPPEL
Estoppel is 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.
Kinds Of Estoppel:
1.
2.
3.
4.
Estoppel In Pais
Technical Estoppel
Estoppel by Record
Estoppel by Judgment
2. Technical Estoppel
a. Estoppel by deed a party to a deed and his
privies are precluded from asserting as against
the other party and his privies any right or title
in designation of the deed, or from denying any
material fact asserted therein.
b. Estoppel by record a party and his privies
are precluded from denying the truth of matters
set forth in a record whether judicial or
legislative.
Elements of Laches:
Laches
Concerned with effect
of delay.
Question of inequity
of permitting the
claim to be enforced.
Not statutory.
Applies in equity.
Not based on a fixed
time.
Prescription
Concerned with fact of
delay.
Question or mater of
time.
Statutory.
Applies at law.
Based on a fixed time.
a.
b.
c.
Characteristics:
1.
Principal
2.
Consensual
3.
Bilateral
4.
Nominate
5.
Commutative;
some cases aleatory (emptio spei)
6.
Onerous
in
CONTRACT TO SELL
SALES
A nominate contract whereby one of the
contracting parties obligates himself to
transfer the ownership of and to deliver a
determinate thing and other to pay therefore
a price certain in money or its equivalent.
(Art. 1458, NCC)
A contract of sale, which is subject to probate
court approval, is a conditional sale, and not a
contract to sell if the condition is not satisfies the
obligation to deliver remains. It is not converted to
OBJECT OF SALE
Requisites:
1. Things:
a. Deteminate or determinable (Arts. 1458, 1460)
b. Lawful (Arts. 1347, 1409 [1, 4])
c. Should not be impossible (Art. 1348)
2. Rights must be transmissible
Exceptions:
* Future inheritance
* Service
Goods which may be Objects of Sale
a. Existing goods goods owned or possessed by
the seller.
b. Future goods goods to be manufactured,
raised or acquired by the seller after the
perfection of the contract.
Emptio Rei
Emptio Spei
Speratae
1. Subject Matter
Sale
The thing transferred
is one which would
have been the subject
of sale to some other
person, even if the
order had not been
given.
The primary objective
of the contract is a
sale of the
manufactured item; it
is a sale of goods
even though the item
is manufactured by
labor furnished by the
seller and upon
previous order of the
customer.
DATION IN
PAYMENT
Obligations are
extinguished.
Consideration of the
debtor is the
extinguishments of
the debt; on the part
of the creditor, it is
the acquisition of the
object offered in lieu
of the original credit.
Less freedom in the
determining the price.
The payment is
received by the debtor
before the contract is
perfected.
Sale
Buyer receives the
goods as owner.
Agency to Sell
Agent receives the
goods as goods of the
principal who retains
his ownership over
them.
Agents deliver the
price which in turn he
got from his buyer.
Agent can return the
goods in case he is
unable to sell the
same to a third
person.
Agent makes no
warranty for which he
assumes personal
liability as long as he
acts within his
authority and in the
name of the seller.
Agent in dealing with
the thing received,
must act and is bound
according to the
instructions of the
principal.
Exceptions:
a. Low price indicates vice of consent, sale may
be annulled;
b. Price is so low as to be shocking to
conscience, sale may be set aside
BARTER
PRICE
Characteristics of Price:
1. Certainty;
2. Real, not fictitious;
3. In some cases, must not be grossly inferior
to the value of the thing sold.
2. Involuntary Sales
General Rule: mere inadequacy of the price is not
a sufficient ground for the cancellation of the sale.
Exception: when the price is so low as to be
shocking to the moral conscience, sale will be set
aside.
PERFECTION OF SALE
General Rule: it is perfected at the moment there
is meeting of the minds upon a determinate thing
(object), and a certain price (consideration), even
if neither is delivered.
Exception: When the sale is subject to a
suspensive condition by virtue of law or stipulation
Pending notice of its withdrawn, the accepted
promise partakes the nature of an offer to sell
which if accepted, results in a perfected contract of
sale. (Sanchez v. Rigos 45 SCRA 368)
Reciprocally demandable.
Policitation
Unaccepted unilateral promise to buy and sell.
Even if accepted by the other party, it does not
bind the promissory and may withdrawn anytime
before knowledge of acceptance of offer.
Option Contract
A contract granting a person the privilege to buy a
certain object at anytime within the agreed period
at the fixed price.
Right of First Refusal
An innovative juridical relationship. If such right is
incorporated in a contract. It is enforceable by
specific performance.
The Statute of Frauds does not contemplate cases
involving a right of first refusal because the
application of such statute presupposes the
existence of a perfected contract. A right of first
refusal is not by any means a perfected contract of
sale of real property. It is a contractual grant, not
of the sale of the real property involved, but of the
right of first refusal over the property sought to be
sold. Thus, a right of first refusal need not be
written to be enforceable and may be proven by
oral evidence.
A right of first refusal is not among those listed as
enforceable
under
the
statute
of
frauds.
Furthermore, the application of Article 1403, par.
2(e) of the New Civil Code presupposes the
existence of a perfected, albeit unwritten, contract
of sale a right of first refusal is of by any means
perfected contract of sale of real property. At best,
it is a contractual grant, not of the real property
involved, but of the right of first refusal over the
property sought to be sold.
Earnest Money
Option Money
Ownership is reserved
to the seller and is not
to pass until full
payment.
In case if nonpayment, there can be
action for specific
performance
Money given as a
distinct consideration
for an option contract.
The would-be-buyer is
not required to buy.
Applies to sale not yet
perfected.
Effect of Violation:
1. With respect to nos. 1, 2, and 3, the sale is
voidable.
Reason: Only private rights, which are subject
to ratification, are violated.
2. With respect to nos. 4, 5 and 6, the sale is null
and void.
Reason: Violation of public policy cannot be
subject to ratification.
DELIVERY
Not only a necessary condition for the
enjoyment of the thing, but also the mode of
transferring ownership.
Kinds:
Actual or Real placing the thing under the
control and possession of the buyer.
Legal or Constructive delivery if
represented by other signs or acts indicative
thereof.
a. Legal
E.
1.
2.
3.
4.
Notwithstanding
the
presence
of
illegal
occupants on the subject property, transfer of
ownership by symbolic delivery can still be
effected through the execution of the deed of
conveyance. (Art. 1498, NCC) It is well-settled
rule that the key word is control not possession
of the subject properly. The rule is true
especially if the deed of conveyance does not
stipulate or inter that the buyers could not
exercise control over the said property, delivery
can be effected through the mere execution of
said deed. (Power Commercial and Industrial
Corporation v. CA, 274 SCRA 597)
Under the law, when the sale is made through a
public instrument, the execution thereof shall be
equivalent to the delivery of the object of the
contract, if, from the deed, the contrary does
not appear or cannot be inferred. Possession is
also transferred along with ownership thereof to
the petitioners by virtue of the deed of
conveyance. (Ong Ching v. 239 SCRA 741:
Article 1498, NCC)
It was also said that since the execution of the
deed of conveyance is deemed equivalent to
delivery, prior physical delivery or possession is
not legally required. (Dulay Enterprise Inc. v.
CA 225 SCRA 678: Garcia v. CA 312 SCRA 180)
1.
2.
3.
4.
Constructive delivery requires three things
before ownership may be transferred:
1. The seller must have control over the thing.
2. The buyer must be put under control
3. There must be the intention to deliver the thing
for purposes of ownership
Sale Or Return
Property is sold, but the buyer, who becomes the
owner of the property on delivery, has the option
to return the same to the seller instead of paying
the price.
Sale or Return
Subject to a
1.
resolutory condition.
Depends entirely on 2.
the will of the buyer
Ownership passes to 3.
the buyer on delivery
and subsequent
return reverts
ownership in the seller
Risk of loss or injury 4.
rests upon the buyer
Sale on Trial
Subject to a
suspensive condition.
Depends on the
character or quality of
the goods.
Ownership remains in
the seller until buyer
signifies his approval
or acceptance to the
seller
Risk of loss remains
with the seller
2.
a.
b.
c.
DOUBLE SALES
Requisites:
1.
2.
3.
4.
Total eviction
a. Value of the thing at the time of the
eviction.
b. Income or fruits if ordered to deliver them
to the party who won the suit.
c. Cost of the suit.
d. Expenses of the contract.
e. Damages and interests if the sale was in
bad faith.
2)
Partial Eviction
a. To enforce vendors liability for eviction;
or
b. Rescind the contract
WARRANTY
Statement or representation made by the seller of
goods, contemporaneously and as a part of the
contract of sale, having reference to the character,
quality, or title, of the goods, and by which he
promises or undertakes to insure that certain facts
are or shall be as he then represents.
Kinds of Warranties:
1) Express any affirmation of fact or any promise
by the seller relating to the thung if the natural
Types:
a. The seller of the goods who has not been paid or
to whom the price has not been tendered.
b. The seller of the goods, in case 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, insolvency of the buyer or
otherwise.
Remedies:
1. Possessory lien over the goods; or
2. Right of stoppage in transit after he has
parted with the possession of the goods and
the buyer becomes insolvent
3. Special Right of resale
4. Special Right to rescind the sale
5. Action for the price
6. Action for damages
UNPAID SELLER
2.
Article 1484
or RECTO LAW
A. REMEDIES OF SELLER IN
IMMOVABLES
1. Ordinary Remedies
a. In case of anticipatory breach
CASE
OF
Realty
POSSESSORY LIEN
When Exercised:
1. Goods have been sold without any stipulation as
to credit;
2. Goods have been sold on credit, but the term of
credit has expired; and
3. Buyer becomes insolvent.
When Lost:
2.
Requisites:
1.
2.
3.
4.
Unpaid seller;
Insolvent buyer;
Goods must be in transit;
Seller must either actually take possession of
the goods sold or give notice to his claim to the
carrier or other person in possession;
5. Seller must surrender the negotiable document
of title, it any issued by the carrier or bailee;
and
6. Seller must bear the expenses of the delivery of
the goods after the exercise of the right.
RESCISSION
Types:
1. Special Right to Surrender Under Art. 1534 if
the seller has either the right of lien OR a right
to stop the goods in transitu AND under either
of 2 situations:
a.
Where the right to rescind on default has
been expressly reserved
b.
Where the buyer has been in default for an
unreasonable time
2. Under Art/ 1597 (technical rescission)
Where the goods have not been delivered to the
buyer, and the buyer has repudiated the
contract of sale, or has manifested his inability
to perform his obligations thereunder, the seller
may totally rescind the contract of sale by
giving notice of his election so to do to the
buyer
ACTION FOR THE PRICE
When may be exercised:
1.
Where the ownership has passed to the
buyer AND he wrongfully neglects OR refuses
to pay for the price
2.
Where the price is payable on a day certain
AND he wrongfully neglects OR refuses to pay
for the price, irrespective of the delivery or
transfer of title
3.
Where the goods cannot readily be resold
for a reasonable price AND the buyer
wrongfully refuses to accept them even before
the ownership of the goods has passed, if Art.
1596 is inapplicable
ACTION FOR DAMAGES
When may be exercised:
1. In case of wrongful neglect or refusal by the
buyer to accept or pay for the thing sold (Art.
1596[1], NCC)
3.
G. EXTINGUISHMENT OF SALE
Same causes as in all other obligations
Conventional redemption
Legal redemption
CONVENTIONAL REDEMPTION
LEGAL REDEMPTION
WHEN
CONVENTIONAL
REDEMPTION
IS
DEEMED TO BE AN EQUITABLE MORTGAGE
1. Price of sale is unusually inadequate
2. Vendor remains in possession
3. Period of redemption is extended after
expiration
4. Purchaser retains part of the purchase price
5. Vendor binds himself to pay the taxes of the
thing sold.
6. Any other case where the parties really
intended that the transaction shall secure the
payment of the debt or the performance of any
other obligation. (Art. 1602)
Instances of Redemption:
a.
b.
c.
d.
e.
f.
H. ASSIGNMENT OF CREDITS
HEIRS
Called to succeed to
an indeterminate or
aliquot portion of the
decendents hereditary
estate.
Called to succeed
either by a will or by
operation of law
SUCCESSION
SUCCESSION
A mode of acquisition by virtue of which the
property rights and obligation to the extent of the
value of the inheritance of a person, are
transmitted through his death to another or others
by his will or by operation at law (Art. 774 NCC).
Requistites:
TESTAMENTARY
SUCCESSION
A. WILLS IN GENERAL
Wills 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.
Elements of a Will
1. Written instrument
2. Duly executed and attested
3. By a competent person
4. Voluntary disposition of property of a person
5. In favor of another competent person
6. To take effect after the makers death
7. Meantime being revocable.
INTERPRETATION OF WILLS
* The testators intent (animus testandi), as well
as giving effect to such intent, is primodial. It is
sometimes said that the supreme law in succession
is the intent of the testator. All rules of
construction are designed to ascertain and give
effect to that intention. It is only when the
intention of the testator is contrary to law, morals,
or public policy that it cannot be given effect.
B. TESTAMENTARY CAPACITY AND INTENT
CHARACTERISTICS OF A WILL
1. Personal Act
Matters that cannot be left
Discretion of Third Persons
to
the
Unilateral
Formal or solemn
Free and voluntary
Ambulatory or revocable
Individual, not joint
Mortis causa
Inheritance Include:
1. Property, rights and obligations not extinguished
by his death.
2. All which have accrued thereto since the
opening of succession. (Art. 781)
Requisites:
1. At least 18 years of age
2. Of sound mind at the time of execution of the
will, wherein he knows:
a. The nature of the estate to be disposed of;
b. The proper objects of his bounty; and
c. The character of the testamentary act.
* The law presumes that the testator is of sound
mind, unless:
a. One month or less, before making his will, he
was publicly known to be insane; and
b. was under guardianship at the time of making
his will.
C. FORMS OF WILLS
1. Notarial will executed in accordance with the
formalities prescribed in Arts. 804 to 808 of the
Civil Code.
2. Holographic will a will be entirely written,
dated and signed by the hand of the testator
HIMSELF without the necessity of any witness.
Ordinarily, when a number of erasures, corrections
and interlineations made by the testator in a
holographic will have not been noted under his
signature, x x x the will is not thereby invalidated
as a whole, but at most only as respects the
particular and erased, corrected and interlined.
(Kalaw vs. Revolva, 132 SCRA 257)
Thus, unless the authenticated alternatives,
cancellations or insertions were made in the date
ATTESTATION CLAUSE
A memorandum or record of facts wherein the
witnesses certify that the will has been executed
before them, and that it has been executed in
accordance
AND
INCORPORATION
BY
CODICIL
Is a supplement or addition
to a will, made after an execution of a will
annexed to be taken as a part thereof, by which
any disposition made in the original will is
explained, added to or altered. In order that it
may be effective, it shall be executed as in the
case of a will. (Art. 825)
Has
the
effect
of
republishing the will of modified by the codicil.
Requisites
for
the
Validity
of
Incorporation by Reference
Must be in existence at the time of the
execution of the will;
Will must be clearly described and identify
the same stating among other things, the
number of pages thereof;
It is be identified by clear and satisfactory
proof; and
It is be signed by the testator and the
witnesses on each and every page.
JOINT WILLS
A single testamentary instrument which contains
the wills of two or more persons, jointly executed
by them, either for their reciprocal benefit of for
the benefit of for the benefit of the third person.
*
This is prohibited under Art. 818.
F.
REVOCATION
OF
WILLS
TESTAMENTARY DISPOSITIONS
AND
REVOCATION OF WILLS
A. By Implication of law:
1. Legal separation
2. Preterition
3. Bringing action for the recovery of credit
4. Transformation, alienation or loss of bequeathed
property
5. Unworthiness
6. Marriage in bad faith
7. Void/annulled marriage
B. By some will, codicil or other writing.
Doctrine of Presumed Revocation
Whenever it is established that the testator has in
his possession or had access to the will, but upon
his death it cannot be found or located the
presumption arises that it must have been revoked
by him by an overt act. (Art. 830)
C.
By
burning,
Tearing,
Canceling or
Obliterating with Intent to revoke the will.
Requisites:
1. Testamentary capacity: In order that a will may
be considered as revoked the testator at the
time of performing the act must have
testamentary capacity. The same degree of
mental capacity to make a will is necessary to
revoke;
2. Intention to revoke;
3. Actual physical act of destruction; and
4. Performed by testator himself or by some other
person in his presence and under his express
direction.
Principle of Instanter
Express revocation of the first will renders it
void because the revocatory clause of the
second will, not being testamentary in the
character, operates to revoke the previous will
instantly upon execution of the will containing
it.
H. ALLOWANCE
WILLS
AND
DISALLOWANCE
OF
Questions
Determinable
Probate Court:
PROBATE
To probate a will means to prove before some
officer or tribunal:
a. The instrument to be probated is the last will
and testament of the deceased person;
b. That it has been executed, attested and
published as required by law; and
c. That the testator was of sound and disposing
mind.
Ground
Wills
Pending
the
filing
of
administration
proceedings, the heirs without doubt have legal
personality to bring suit in behalf of the estate
of the decedent in accordance with the
provision of Article 777.
for
the
Disallowance
of
the
by
I. INSTITUTION OF HEIRS
PRESUMPTIONS
1.
Requisites:
Heir omitted must be a Compulsory
heir in the direct line.
Omission must be complete and total
in character in such a way that the
omitted heir does not and has not
receive anything at all from the
testator by any title whatsoever; and
Compulsory heir omitted must survive
the testator.
K. SUBSTITUTION OF HEIRS
1.
2.
3.
J. PRETERITION
1.
2.
3.
4.
5.
6.
KINDS OF SUBSTITUTION
Limitations:
1. Substitution must not go beyond one degree
from the heir originally instituted.
2. Fiduciary and the Fideicommissary must be
living at the time of the death of the testator.
3. Substitution must not be burden the legitime
4. Substitution must be made expressly
CONDITIONAL TESTAMENTARY
SUBSTITUTION
Effectivity is subordinate to the fulfillment or
non-fulfillment of a future and uncertain event.
If a condition is so vaguely worded that even
after applying rules on construction and
interpretation,
it
is
still
meaningless,
contradictory, or cannot be understood, the
condition will be regarded as an impossible
condition and should therefore be disregarded.
(6 Sanchez Roman 607)
An absolute prohibition to contract a first or
subsequent marriage shall be considered as not
written unless such condition has been imposed
on the widow or widower by the deceased
spouse, or by the latters ascendants or
descendants (Art. 874)
DISPOSITION CAPTATORIA
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 shall be void. (Art.
875, NCC)
Institution Modal
The statement of the object of the institution, or
the application of the property left by the testator,
or the charge imposed by him. (Art. 882, NCC)
L. LEGITIME
That part of the testators property which he
cannot dispose of because the law has reserved it
for certain heirs, who are, therefore, called
compulsory heirs. (Art. 886, NCC)
COMPULSORY HEIRS
In general, compulsory heirs are those for whom
the law has reserved a portion of the testators
estate which is known as the legitime. (Art. 887,
NCC)
1.
2.
3.
4.
5.
Rules:
1. Direct descending line
a. Rule of preference between lines
b. Rules of proximity
c. Right of representation ad infinitum or
disinheritance (LC: LD only; IC; both LD
and ID)
d. If all the LC repudiate their legitimes, the
next generation of LD succeed in their own
right
2. Direct ascending line
a. rule of division by lines
b. rule of equal division
3. Non-impairment of legitimes
If the testator is a
legitimate person
Legitimate children and
If the testator is an
illegitimate person
Legitimate children
descendants (LCD)
In default of the
foregoing, legitimate
parents and ascendants
(LPA)
Surviving spouse (SS)
Illegitimate children and
descendants (ICD)
and descendants
(LCD)
Illegitimate children
and descendants
(ICD)
Illegitimate children
and descendants
(ICD)
Surviving spouse (SS)
TABLE OF LEGITIMES
PYabao Notes
Legend:
LC Legitimate Children
IC Illegitimate Children
SS Surviving Spouse
IP Illegitimate Parents
LPA Legitimate Parents/ Ascendants
CH Compulsory Heirs
No
NCC
Arts
HEIRS
LEGITIMES
FREE
PORTION
888
LC alone
- 1/2
1/2
894
899
889
1/3
1/3
1/2
1/4
1/8
1/2
1/3
IC
SS
LPA
IC
SS
LPA alone
903
IP alone
- 1/2
1/2
896
892
IC (1)
LP
-1/2
-1/4
1/4
892
IC (2)
SS
-1/2
-1/4
1/4
892
IC (2 or more)
SS
893
LPA
SS
FP depends
-1/2
-Equal to 1 on SSs
share
LC share
-1/2
1/4
-1/4
10
901
IC alone
-1/2
1/2
11
903
IP
SS
-1/4
-1/4
1/2
12
903
IC
IP
-1/2
-0
1/2
895& LC
-1/2
Depends on
the no. of IC.
Maybe there is
FP or there is
share of 1none left.
13
Amended
by
FC
176(2)
IC
Note: Cant be
reduced.
-1/2
LC
1/8
1/2
14
900
SS alone
-1/2
- ordinary
-1/3
- in articulo
mortis, testator
dies within 3
mos. from date
of marriage (no
live-in or with
live-in
relationship of
less than 5 years
- In articulo
mortis, testator
dies within 3
- 1/2
mos. from date
of marriage but
living as husband
and wife for more
than 5 years
already
NOTE: In case of
articulo mortis
marriage, if
testator dies
after 3 months
from date of
marriage, the
ordinary rule
applies, hence
the legitime of SS
is (with or w/o
live-in
relationship)
NOTE: In case of
legal separation,
the SS may
inherit if it was
the deceased
who had given
cause for the
same; if it is
otherwise, the SS
cannot inherit.
(892)
-1/2
-2/3
15
897
LC
898
892
895
SS
-1/2 of
estate
Depends on
the number of
(Note: Cant be IC.
reduced)
Maybe there is
-1/4 if 1 LC still FP or
or Same as there is NONE
left.
one share of
one LC
(Note: Cant be
reduced)
-1/2 share
of each LC
-1/2
NOTE:
Legitime of IC
may be
reduced if
NOTE: When IC are they are
many.
so many that the
remaining estate
shall not be enough
to all IC if the 1:2
formula is followed
-- in which case,
the remaining
portion (after
giving the LC and
SS their legitimes)
shall be divided
equally among all
the IC.
IC
16
FC
AC- Adopted
Equal to one As may be
applicable
189
Child
LC
(3)
NOTE: Although the FC mentions the Adopted Child
remaining an intestate heir of his parents and other
blood relatives, Tolentino opines the AC cant be
deprived of his legitime which is an integral part of a
childs intestate share. Hence, an AC inherits from
two sources: from his adoptive parents and from his
parents & other blood relatives. However, an AC does
not have any right by intestacy from any relative of
the adopting parents, whether ascending or
descending line his relationship is limited to the
adopter.
LEGITIMES IN THE
ESTATE OF ADOPTER
(Generally, apply the same rules above)
No.
LAW
- RA
8552
17-18 NCC 888
HEIRS
LEGITIME
- RA
AC
8552
17-18 - SS
NCC 893
(1)
- 1/2
FREE
PORTION
1/2
- RA
AC
8552
(or AC/LC)
17-18 NCC 895 IC
- 1/4
- 1/2
- RA
AC/LC
8552
17-18 - SS
NCC
897
898
892
895
IC
- 1/2
- RA
AC/LC
8552
17-18 NCC 888
1/2 to be
1/2
divided by
the total
number of AC
and LC
- Same as
one (1) share
of one AC/LC
- 1/4 or if
many equal
to 1 AC/LC
There is FP,
but it
depends on
SSs share.
Depends on
the no. of
IC. Maybe
there is FP
or there is
none left.
- Half of the
share of 1
AC/LC
Depends on
of IC.
(Thereafter
- 1/2 of 1
there may
AC
or may not
(Note: May be
be any FP
reduced. If the
remaining portion left.)
of estate is not
enough for all the
IC, such portion
shall be divided
equally by all IC.)
1/4
- RA
AC/LC
8552
(2 or more)
17-18 NCC 892 SS
- 1/2
- RA
8552
17-18
-NCC
889
LPA alone
- 1/2
1/2
- RA
LPA
8552
SS
17-18 NCC 893
- 1/2
- 1/4
1/4
10
- RA
8552
17-18
- NCC
899
- 1/2
- 1/8
- 1/4
1/8
11
- RA
SS
8552
IC
17-18 NCC 894
- 1/3
- 1/3
1/3
12
- RA
IC alone
8552
17-18 - NOTE: The
presence of
NCC 901
-1/2
1/2
- RA
IP alone
8552
17-18 NCC 903
- 1/2
1/2
LPA
SS
IC
illegitimate
children (primary
CH) excludes the
illegitimate
parents
(secondary CH)
13
14
- RA
8552
17-18
- NCC
903
IP
SS
- 1/4
- 1/4
1/2
ESTATE OF ADOPTED
(Generally, apply the same rules above)
No.
LAW
HEIRS
LEGITIME
FREE
PORTION
888
LC alone
- 1/2
1/2
892
1/4
892
LC
- 1/2
SS
- 1/4
LC (2 or more) - 1/2
897
898
892
895
SS
There is FP.
Depends on
the no. of
- Equal to the LC
share of 1 LC
LC
SS
- 1/2
- 1/4 or if
IC
Depends on
the no. of
many equal to IC. Maybe
there is FP
1 LC
- 1/2 of the or maybe
there is none
share of 1
left.
AC/ LC; if the
remaining
part of estate
is not enough
for all IC,
then divide
that portion
eually among
the IC.
COLLATION
Fictitious mathematical process of adding
the value of the thing donated to the net
value of the hereditary estate (Art. 908
and Arts. 1061-1077)
Act of charging or imputing such value
against the legitime of the value against
the legitime of the compulsory heir to
whom the thing was donated (Arts. 10611077)
Act of changing or imputing such value
against the legitime of the compulsory
heir to whom the thing was donated.
Actual act of restoring to the hereditary
estate that part of donation which is
inofficious in order not to impair the
legitime of compulsory heirs.
RESERVA TRONCAL
Purpose:
1. To reserve certain property in favor of certain
persons;
2. To prevent persons outside a family from
acquiring, by some chance or accident, property
which otherwise would have remained with the
said family;
3. To maintain a separation between paternal and
maternal lines.
Requisites:
1. The property should have been acquired by
operation of law by an ascendant (reservista)
from his descendant (propositus) upon the
death of the latter.
2. The property should have been previously
acquired by gratuitous title by the descendant
Personal Elements
1. Origin also called Originator, the ascendant,
or brother or sister from whom the propositus
had acquired the property by gratuitous title
(e.g. donation, remission, testate or intestate
succession);
2. Propositus the descendant who died and
from whose death the reservista in turn has
acquired the property by operation of law (e.g.
by way of legitime or intestate succession). The
so-called arbiter of the fate of the reserve
troncal.
3. Reservista also called Reservor, the
ascendant, not belonging to the line from which
the property came and for whose benefit the
reservation is constituted. They must be related
by blood not only to the propositus but also to
the originator.
4. Reservatarios or Reservees
DISINHERITANCE
A testamentary disposition by which a
person is deprived of, or exclude from, the
inheritance to which he has a right.
1.
2.
3.
1.
2.
3.
4.
express
attempt of the testator in depriving a compulsory
heir of his legitime without the requisite formalities
prescribed by law. The effect is partial annulment
of the institution of heirs.
Effects:
1. If testator had made disposition of the entire
estate:
annulment
of
the
testamentary
dispositions only in so far as they prejudiced the
legitime of the person disinherited; does not
affect the dispositions of the testator with
respect to the free portion.
2. If testator did not dispose of the free portion:
compulsory heir is given all that he is entitled to
receive as if the disinheritance has not been
made, without prejudiced to lawful dispositions
made by the testator in favor of others/
3. Devise, legacies and other testamentary
dispositions shall be valid to such extent s will
not impair the legitime.
Imperfect
disinheritance
Persons disinherited
may be any compulsory
heir.
Attempt to deprive the
heir of legitime is
always express.
Attempt to deprive the
heir of his legitime is
Preterition
Person omitted must
be a compulsory heir.
The attempt to
deprive legitime is
always implied.
Attempt may or may
not be intentional.
always intentional.
Partial annulment of
institution of heirs.
Total annulment.
1.
2.
3.
4.
Other
causes:
nullity
of
the
will;
noncompliance with suspensive conditions
affecting the bequests.
VALIDITY / EFFECT
General Rule: Conveys only interest or part owned by testator
a.
b.
Thing owned by another.
is entitled to be reimbursed;
ii. if thing was acquired gratuitously by legatee/devisee nothing is due;
iii. if thing was owned by testator at time will was made and
legatee/devisee acquired the thing from him thereafter law is silent.
Legacy/Devise to remove
an encumbrance over a
thing belonging to
testator
Legacy/Devise of a thing
pledged or mortgaged.
Exceptions:
1. Inheritance is divided between paternal and
maternal grandparents.
2. Inheritance is divided among brothers and
sisters, some of the full blood, other of the
half blood.
3. In cases where the right of representation
takes place.
4. Rule
of Barrier Between the
Legitimate Family and Illegitimate (Iron
Curtain Rule) illegitimate family cannot
inherit ab intestato from the legitimate
family and vice-versa.
5. Rule of Double Share for Full Blood
Collaterals when full and half-blood
brothers and sisters, nephews and nieces
survive, the former shall take a portion in
the inheritance double that of the latter.
B. RELATIONSHIP
1.
2.
3.
4.
5.
6.
7.
among
ascendants
and
descendants
(ascending and descending)
A collateral line is that constitutes by the
series of degrees among persons who are not
descendants or descendants, but who come
from a common ancestor.
Full blood: same father and mother; half
blood: only one of either parent is the same.
In adoption, the legal filiation is personal and
exists only between the adopter and the
adopted. The adopted is deemed a legitimate
child of the adopter (AP), but still remains as
an intestate heir of his natural parents and
other blood relatives.
C. RIGHT OF REPRESENTATION
A right created by fiction of law by
virtue of which the representatives is raised to the
place and the degree of the person represented,
and acquired the rights which the latter would
have if he were living or if he could have
inherited.
d.
e.
Illegitimate
children
represent
their
illegitimate parents who already died in the
estate of their grandparents. [Art. 989]
Nephews and nieces inherit together with
their uncles and aunts, in representation of
their deceased parents who are the
brothers/sisters of their said uncles or aunts.
[Art. 1005]
2. Intestate Succession:
a. Legal heir in the direct descending line had
predeceased the descendant and is survived
by his children or descendants (Arts. 981 and
982)
b. Legal heir in the direct descending line is
excluded from the inheritance by reason of
incapacity or unworthiness. (Art. 1035)
c. Brothers or sisters had predeceased the
decedent
and
they
had
children
or
descendants.[Art. 975]
Order of Concurrence
3. ICD and SS
4. SS and IP
5. BS/NN and SS
6. C5 (alone)
7. State (alone)
Notes:
2.
3.
4.
[NOTE: Take note of the Rules of Proximity, Exclusion, Concurrence, Preference in Lines, etc.]
No.
NCC
Arts.
962
1
2
979
980
FC 176
HEIRS
Any class alone
Whole estate
LC alone
LC
IC
996
LC
SS
LC
SS
IC
985
LP alone
LA (GP) alone
987
7
991
997
9
1000
LP
IC
NOTE: If decedent is an
illegitimate Person, his
natural parents (IP) are
excluded by presence of
illegitimate
child. (cf. 903, 2nd
sentence)
- LPA
- SS
- 1/2
- 1/2*
NOTE: In case of partial intestacy where there is legacy
or devise, the Legacy or devise shall be charged against
the share of the SS, provided the legitime of the SS
(1/4) shall not be reduced.
(Please see Paras: discussion # 2 in Art. 1000 on partial
intestacy. See also Tolentino, Pineda, De Leon & Mison)
LPA
SS
IC
- 1/2
- 1/4*
- 1/4
* NOTE: In case of partial intestacy where there is
Legacy or Devise, the Legacy or Devise shall be charged
against the share of the SS, provided the legitime of the
SS (1/8) shall not be reduced.
(Please see Paras: discussion # 2 in Art. 1000 on partial
intestacy. See also Tolentino, Pineda, De Leon & Mison)
FC 176
(NOTE: Apply by analogy
to # 34, specially in case
of partial intestacy)
10
988
IC alone
11
998
FC 176
IC
SS
- 1/2*
- 1/2 *
12
994, 995
SS alone
13
Only by
analogy
with
997, in
relation
to 993,
994, &
903 on
their
legitimes
SS
IP
- 1/2*
- 1/2*
Whole estate
14
1001
SS
Legitimate Brothers,
Sisters / Nephews, Nieces
(BSNN)
Note: These are
collateral relatives within
2nd and/or 3rd degree.
(994 par 2, 1001)
- 1/2
- 1/2 *
NOTE:
If all brothers and sisters are alive, to be divided equally
per capita -- nieces & nephews excluded.
If one or more brothers/sisters predeceased/
disinherited/ incapacitated, the corresponding
nieces/nephews will inherit by representation per
stirpes that share which was supposed to that bro/sis.
If one or some bros/sis repudiated, no representation is
allowed and the nephews and nieces cannot inherit.
But if all bros/sis repudiated, all nieces and nephews will
inherit in their own right directly from the deceased
not from their repudiating parents - per capita or
equally.)
If there are half blood, they will get 1/2 of the share
of the full blood.
15.
992
ID (Illeg. Descendant
Of a LC
LD (Leg. Descendants) of
LC
NOTE:
Legitimate and illegitimate descendants (LD & ID) of an
IC can represent the latter Reason: The Bar Rule or
Iron Curtain Rule DOES NOT APPLY BETWEEN TWO
ILLEGITIMATE FAMILIES the law is very explicit on the
use of the words ID of a LC
16
994
-
Surviving Spouse
(SS) of an illegitimate
child (decedent)
Illegitimate Brothers,
1/2
1/2 * observing the following rules:
Sisters / Nephews,
Nieces whether
legitimate or
illegitimate children of
Brothers and Sisters
(BSNN)
Note: These illegitimate
BSNN are collateral
relatives within 3rd
degree.
Note: The Bar Rule or
Iron Curtain Rule DOES
NOT APPLY BETWEEN
TWO ILLEGITIMATE
FAMILIES the law is
very explicit on the use of
the words ID of a LC
17
993
IP alone
18
993
cf: 979,
983 &
988
IP
LC or IC
IP are excluded
Children will inherit accordingly as legitimate or
illegitimate
(by analogy with Nos. 1, 2 & 10)
19
1004 &
1006
20
1005 &
1008
Note:
The nearer excludes
the farther, hence the
nieces/nephews are
excluded if all bros/sis
concur
(970)
(972)
In proper cases of
representation, the
nephews/nieces (per
stirpes)
will inherit together
with bros/sis
(per capita)
21
(975)
(977)
(969)
(977)
(1006)
(6) If there are half blood, they will get of the share
of the full blood. (Art. 1006)
cf. 965
975 last
sentence
inferred
from
1009
22
Cf. 1004
&1006
23
By
analogy
only with
1005 &
1008
Illegitimate Brothers,
Sisters, Nephews &
Nieces alone (of an
illegitimate decedent
Brother/Sister)
24
975 &
1008
25
1009 &
1010
1011
S - thru escheats
proceedings under the
Revised Rules of Court
27
FC 189
(3)
Adopted
Apply the
NOTE:
AC remains a compulsory heir of his natural/blood
parents Tolentino- aside from being an intestate heir of
his parents and other blood relatives FC 189(3)
Although the FC mentions the Adopted Child remaining
an intestate heir of his parents and other blood relatives,
Tolentino opines the AC cant be deprived of his legitime
which is an integral part of a childs intestate share.
Hence, an AC inherits from two sources: from his
FC
190
(1)
FC 190
(5)
RA
8552
(18)
Whole
Whole
1/2
1/2
3
4
FC 190
(2)
FC 190
(3)
1/2
1/2
FC 190
(3)
RA
8552
(18)
FC 190
(4)
RA
8552
(18)
1/2
1/2
1/3
1/3
1/3
FC 190
(6)
RA
8552
Arts
17-18
Whole estate
980
FC 176
RA
8552
Art. 17
979
(but may
NOTE 1:
The collateral relatives of the adopted cannot inherit from the adopter because they are not heirs by law.
Apply the ordinary rules in legal succession in all other combinations, if any. Be careful with partial
intestacy (where the will only provides for legacy or devise), most especially where the intestate share
affected is that of the heir whose legitime is lower than his/her intestate share such as in Arts. 983,
991, 996, 997, 998, 1000, 1001 per discussion by Paras, Tolentino, Dy, Pineda, De Leon, Balane and
Mison).
NOTE 2:
Under Art. 189 (3) of the Family Code, the adopted shall remain as an intestate heir of his parents and
other blood relatives
LEGAL HEIRS
Leg. Children
- LC
Illeg. Children
- IC
Leg. Parents
- LP
Illeg. Parents
- IP
Surv. Spouse
- SS
Nearer Collateral
Relatives
(NCR 2nd
rd
& 3 ) Brother, Sister,
Nephew, Niece
-BSNN
NB: Be careful with the
Barrier between
legitimate & illegitimate
families/ BSNN & OCR
(992)
EXCLUDE
LP, S (State), CR
(Collateral Relatives)
IP, S, CR
CONCUR WITH
SS, IC
EXCLUDED BY
No one
SS, LC, LP
No one
S, CR
SS, IC
LC
S, CR
SS
LC, IC
S
OCR (other than BSNN
inferred in 994)
S
OCR (Uncles/Aunts, 4th
and 5th
degree)
- implied by 994,
1001,
1004,
1005
and
expressl
y
provided
in 1009
& 1010
No one
SS
NB: There is
Representation here
between the BSNN.
S
OCR in remoter
degrees (6th and
beyond - 1010)
NB 2: Review the
orders of legal
succession to the
estates of legitimate
and illegitimate
persons
No one
NB: No Representation
here.
No one
Everyone
NOTE:
1. In the absence of parents, ascendants inherit in proper cases. In the absence of children, other
descendants inherit in proper cases.
2. Memorize the tables of legitimes and intestate shares.
3. The effects of legitimation shall retroact to the time of the child's birth (Art. 180FC).
4. The legitimation of children who died before the celebration of the marriage shall benefit their
descendants (181FC).
5. The adoptee shall be considered the legitimate son/daughter of the adopter for all intents and purposes
and as such is entitled to all the rights and obligations provided by law to legitimate children born to
them without discrimination of any kind (17 RA8552).
6 In legal and intestate succession, the adopter and the adoptee shall have reciprocal rights of succession
without distinction from legitimate filiation (18 RA8552).
7. Order of intestate succession to the estate of a legitimate person.
8. Order of intestate succession to the estate of an illegitimate person.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
legacy/devise/voluntary inst.
Rule on Disinheritance (only in testate succession): 3 groups Children/Descendants (8) 919,
Rule on disinheritance of Parents/Ascendants (8) 920, & Spouses (6) 921
Rule on Predecease (both in testate and legal succession)
Rule on Partial intestacy (mixed succession where the intestate share of the heir with lower legitime
is reduced by legacy/devise/voluntary institution; Imperfect disinheritance; Ineffective
disinheritance; Ineffective dispositions
Rule on the Iron Barrier or absolute separation between legitimate and illegitimate families (992) -The illegitimate child have no right to inherit ab intestato from the legitimate children & relatives of
his father, and vice versa.
Rule on representation of illegitimates -- The illegitimates of legitimates cannot represent the latter
because of the BARRIER, but the illegitimates (& legitimates) of an illegitimate can represent the
latter.
Rule on inofficious donation, legacy, devise and voluntary institution
Rule on Acceptance (who can accept, kinds, form, when, irrevocable & cant be impugned generally)
Rule on Repudiation (effect of one/some or of all, how, form, when, irrevocable & cant be impugned
generally)
Rule on Accretion (study also in relation to repudiation, substitution & representation)
Rule on Reserva Troncal (be careful with rules of exclusion, direct line, proximity of reservees within
3rd degree from the origin of property or propositus, manner of acquiring property, & both in testate
and legal succession)
Rule on Collation (collationable and non-collationable donations/properties/sums)
Rule on Preterition of compulsory heirs from inheritance (testate succession) , not just omission from
will, & its effects on the will
Rule on preterition of objects in the partition - 1103, or of compulsory heirs in the partition -1104
Rule on determining the Net Hereditary Estate (NHE)
Rule on Partition/Distribution of estate (who, forms, period, imprescriptibility & prescription, executor
& administrator)
Rule on Legal redemption by co-heir
Rule on Rescission/Annulment of Partition
1. Legitime:
a.
b.
A. RIGHT OF ACCRETION
c.
d.
1.
2.
3.
In
case
of
predecease,
there
is
representation if there are children or
descendants; if none, the other heirs inherit in
their own right
In case of incapacity, the results are the same
as in predeceased (ie., there is representation
if there are children or descendants; if none,
the other heirs inherit in their own right).
In case of repudiation, there is always
accretion (ie., there is representation if there
are children or descendants; if none, the
other heirs inherit in their own right).
B. CAPACITY TO SUCCEED
WILL OR INTESTACY
3.
BY
Requisites:
1. The heir, legatee/devisee must be living or in
existence at the moment the succession
opens; and
2. He must not be incapacitated or disqualified
by law to succeed.
THE
FOLLOWING
ARE
INCAPABLE
SUCCEEDING:
A. Based on Undue Influence or Interest
1.
2.
3.
4.
5.
6.
OF
C. ACCEPTANCE AND
REPUDIATION
Acceptance
4.
5.
6.
D. COLLATION
Person Obliged to Collate:
General Rule: compulsory heirs
Exceptions:
a.
b.
When to Collate
1. Any property or right received by gratuitous
title during the testators lifetime
2. All that they may have received from the
decedent during his lifetime.
3. All that their parents would have brought to
collation if alive.
3.
7.
8.
E. PARTITION
The separation, division and assignment of a thing
held in common among those to whom it may
belong. The thing itself may be divided, or its
value (Art. 1079, NCC)
3.
4.
By
By
By
By
extrajudicial settlement
ordinary action for partition
judicial summary settlement
administration proceeding
PARTNERSHIP
1.
Valid contract;
2.
Aurbach
vs.
Sanitary
Wares
Manufacturing Corporation, 180 SCRA
130 [1989] although a corporation
cannot enter into a partnership contract,
it may however engage in a joint venture
with others, A joint venture has been
generally understood to mean an
organization to temporary purpose.
Partnership
1. By the contract of partnership two or more
persons bind themselves to contribute money,
property or industry to a common fund, with
the intention of dividing the profits among
themselves,
2. A partnership has a juridical personality which
is separate and distinct from that of the
partners.
5.
Requisites of Partnership
1. intention to create a partnership
2. common fund obtained from the contributions
3. joint interest in the profits
Co-ownership
Partnership
1. Creation
Always created by a
contract, either
express or implied.
Partnership
2. juridical Personality
Has a juridical
personality separate
and distinct from that
of each partner.
3. Purpose
Realization of profits.
4. Duration
No limitation upon the
duration is set by law.
Co-ownership
Generally created by
law, but may even
without a contract.
Co-ownership
10. Form
May be in any from
except when real
property is contributed
(here a public
instrument is
required).
No public instrument
is needed even if real
property is the object
of the co-ownership.
Has no juridical
personality.
Distinction Between Partnership &
Corporation
Common enjoyment
of a thing or right;
does not necessarily
involve sharing of
profits.
An agreement to keep
the thing undivided
for more than 10
years is not allowed.
5. Transfer of Interest
A partner may not
A co-owner can
dispose of his
dispose of his share
individual interest in
without the consent of
the partnership so as
the others.
to make the assignee a
partner without
unanimous consent.
6. Power to Act with Third Person
In the absence of
A co-owner cannot
stipulation to the
represent the cocontrary, a partner
ownership.
may bind the
partnership.
7. Dissolution
Death or incapacity of
Death or incapacity or
a partner results in the
a co-owner does not
dissolution of
necessarily dissolves
partnership.
the co-ownership.
8. Agency or Representation
As a rule, there is
As a rule, there is no
mutual agency.
mutual representation
(although it is enough
for a co-owner to
bring an action for
ejectment against a
stranger).
9. Profits
May be stipulated
Must always depend
upon,
upon proportionate
shares and any
stipulation to the
contrary is VOID (Art.
485).
Partnership
Corporation
1. Creation
Created by mere
Created by law or by
agreement of the
operation of law.
partners.
2. Number of Incorporators
May be organized by
Requires at least five
at least two persons
incorporators (except a
corporation sole).
3. Commencement of Juridical Personality
Acquires juridical
Acquires juridical
personality from the
personality from the
moment of execution date of issuance of the
of the contract of
certificate of
partnership.
incorporation by the
Securities and Exchange
Commission.
4. Powers
Partnership may
Corporation can
exercise any power
exercise only the
authorized by the
powers expressly
partners (provided it
granted by law or
is not contrary to
implied form those
law, morals, good
granted or incident to
customs, public
its existence.
order, and public
policy).
5. Management
When management
The power to do
is not agreed upon,
business and manage
every partner is an
its affairs is vested in
partnership.
the board of directors of
trustees.
6. Effect of Mismanagement
A partner as such
The suit against a
can sue a co-partner
member of the board of
who mismanages.
directors of trustees
who mismanages must
be in the name of the
corporation.
7. Right of Succession
Partnership has no
Corporation has right of
right of succession
succession.
8. Extent of Liability to Third Persons
3.
Duty
to
share
profits
and
losses.
(Kilosbayan, Incorporated vs. Gilngona, Jr
232 SCRA 110 [1994])
CLASSIFICATION OF PARTNERSHIP
1. As to object:
a) Universal partnership
i. Universal partnership of all present
property
ii. Universal partnership of profits
b) particular partnership
2. As to liability of partners:
a) general partnership
b) limited partnership
3. As to duration:
a) partnership at will
b) partnership with a fixed period
4. As to legality of existence.
a) de jure partnership
b) de facto partnership
5. As to representation to others:
a) ordinary or real partnership
b) ostensible or partnership by estoppel
6.
7.
As
a)
b)
As
a)
b)
to publicity:
secret partnership
notorious or open partnership
to purpose:
commercial or trading
professional or non-trading
PARTICULAR PARTNERSHIP
GENERAL PARTNERSHIP
UNIVERSAL PARTNERSHIP
LIMITED PARTNERSHIP
PARTNERSHIP AT WILL
5.
6.
7.
8.
CLASSIFICATION OF PARTNERS
1.
As to CONTRIBUTION:
a) Capitalist partner one who contributes
money or property to the common fund.
b) Industrial partner one who contributes
only his industry or personal service.
2. As to LIABILITY:
a)
General partner one whose liability to
third persons extends to his separate property,
he may either be a capitalist or industrial
partner.
b)
Limited partner one whose liability to
third person is limited toi his capital contribution.
3. As to MANAGEMENT:
a) Managing partner one who manages the
business or affairs of the partnership; he may be
appointed in the articles of partnership or after
constitution of the partnership.
b) Silent partnership one who does not take
any active part in the business although he may
be known to be a partner.
c)
Liquidating partner- one who takes charge
of the winding up of the partnership affairs upon
dissolution.
Miscellaneous:
a) Ostensible partner one who takes active
part and known of the public as a partner in the
business, whether or not he has actual interest
in the firm.
b) Secret partner- one who takes active part in
the business by is not known to be a partner by
outside parties nor held out as a partner by the
other partners.
c) Dormant partner one who does not take
active part in the business and is not known or
held out as partner.
ALTERATION
THEMSELVES:
OF
PARTNERS
AMONG
4.
5.
promised;
To contribute
what
had
been
4.
2. Distribution of losses
a.
According
to
their
agreement (but not iniquitously to defeat
Art. 1799)
If none,
b.
c.
CONTRACT OF SUB-PARTNERSHIP
MANAGEMENT OF PARTNERSHIP
I. When the Manner of Management Has
Been Provided for in the Partnership
Agreement (Art. 800)
A. When a managing partner has been
appointed:
1. Appointment in the articles of partnershipa. Power is irrevocable without just or lawful
cause
1) to remove him for JUST cause, vote
of partners representing controlling
interest is necessary.
2) to remove him without just cause or
for an UNJUST cause, there must be
unanimity including his own vote.
b. Extent of Power
1) if he acts in good faith, he may do all
acts of ADMINISTRATION, despite
opposition of his partners.
2) if in bad faith, he cannot.
2. Appointment other than in the articles of
partnershipa.
b.
Partnership is a
contract of mutual agency, each partner acting
as a principal on his own behalf, and as an agent
of his co-partners and the partnership.
Requisites When a Partner Binds the
Partnership
1. When he is expressly or impliedly authorized.
2. When he acts in behalf and in the name of
the partnership.
PARTNERSHIP BY ESTOPPEL
Arises when a person, by words spoken or
written o r by conduct, represents himself or
consents to another representing him to anyone,
as partner an existing partnership, or with one or
more persons not actual partners; he is liable to
any such person to whim such representation
has been made, who has, on the faith of such
representation given credit to the actual or
apparent partnership. Art. 1825, NCC)
Note: Art. 1825 does not create a partnership as
between the alleged partners. A contract,
express or implied is essential to the creation of
partnership. The law considers them partners
and the association as a partnership insofar as it
is favorable to third persons. However,
partnership liability is created only in favor of
persons who on the faith of such representation
given credit to the actual or apparent
partnership.
DISSOLUTION
partnership
TERMINATION
Point in time when all partnership affairs
are wound up or completed and is the end of the
partnership life.
CAUSES OF DISSOLUTION
1. Extrajudicial dissolution (Art. 1830, NCC)
the parties may agree to expand the
grounds provided under Art. 1830 but NOT to
delimit them. The causes enumerated are as
follows:
a. Without violation of the agreement
between the partners.
1) By the termination of the definite
term
or
particular
undertaking
specified in the agreement;
2) By the express will of any partner,
who must act in good faith, when no
definite
term
or
particular
undertaking is specified;
3) By the express will of all the partners
who have not assigned their interest
or suffered them to be charged for
their separate debts, wither before or
after the termination of any specified
term or particular undertaking;
4) By the expulsion of any partner from
the business bona fide in accordance
with such power conferred by the
agreement between the partners;
b. In contravention of the agreement
between the partners, where the
circumstances
do
nor
permit
a
dissolution under any other provision of
this article by the express will of any
partner at any time.
c. By any event which makes it unlawful for
the business of the partnership to be
carried on or for the members to carry it
on in partnership.
d. When a specific thing, a partner had
promised to contribute. Or where the
partner only contributed the use or
enjoyment of the thing and has reserved
ownership thereof, its loss, before or
after delivery dissolves the partnership.
e. By the death of any partner;
f. By the insolvency of any partner or the
partnership;
g. By the civil interdiction of any partner;
2.
b.
b.
b.
EFFECT OF DISSOLUTION
A. As to Partners Authority to Act for the
Partnership
General Rule: Dissolution terminates all
authority of any partner to act for the
partnership
Exceptions:
1.
Acts necessary to wind up
partnership affairs; or
2.
Acts necessary to complete
transactions begun but not then finished
Note: Dissolution terminates the ACTUAL
authority of a partner to undertake NEW
business for the partnership.
Qualifications to the General Rule:
To have partnership
property applied to discharge partnership
liabilities
To receive in cash his
share of the surplus
a.
5.
Partners Lien
LIMITED PARTNERSHIP
a.
b.
1. Extent of liability
Limited partners liability extends only to his capital General partner is personally liable for partnership
contribution.
obligations.
2. Right to participate in the management of partnership
Limited partner has no share in the management of General partners have an equal right in the
a limited partnership and renders himself liable to management of the business (when the manner of
partnership creditors as a general partner if he takes management has not been agreed upon)
part in the control of the business.
3. Contribution
Limited partner must contribute cash or property to General partner may contribute money, property or
the partnership but not services.
industry to the partnership.
4. Proper party to proceedings by or against the partnership
Limited partner is not a proper party to proceedings
General partner is the proper party to proceedings by
by or against a partnership Unless:
or against a partnership.
He is also a general partner; or
Where the object of the proceeding
is to enforce a limited partners right against or
liability to the partnership.
5. Transferability of interest
Limited partners interest is freely assignable, with General partners interest in the partnership may not
assignee acquiring all the rights of the limited be assigned as to make the assignee a new partner
partner subject to certain qualifications.
without the consent of the other partners, although
he may associate a third person with him in his share.
6. Inclusion of partners name in the firm name
As a general rule, name of a limited partner must Name of a general partner may appear in the firm
not appear in the firm name.
name.
7. Prohibition to engage in other business
No such prohibition in the case of a limited partner General partner is prohibited from engaging in a
who is considered a mere contributor to the business which is the SAME kind of business in which
partnership.
the partnership is engaged, if he is a capitalist
partner, or in ANY of business for himself if he is an
industrial partner.
8. Effect of retirement, death, insanity or insolvency
Retirement, death, insanity or insolvency of a limited Retirement, death, insanity or insolvency of a general
partner does not dissolve the partnership for his partner dissolves the partnership.
executor or administrator shall have the rights of a
limited partner for the purpose of selling his estate.
9. Creation
Limited partnership is created by the members after General partnership, as a general rule, may be
substantial compliance in good faith with the constituted in any form by contract or conduct of the
requirements set forth by law.
partnership.
10. Members of the partnership
Composed of one or more general partners and one Composed only of general partners.
or more limited partners.
11. Firm name
Firm name must be followed by the word limited.
No such requirement.
12. Rules governing dissolution and winding up
Governed by Art. 1839.
Governed by Art. 1863.
Liability for False Statement in Certificate
1. Any partner to the certificate containing a false
statement is liable to one who suffers loss by
reliance on such certificate provided the following
requisites are present:
2. He knew the statement to be false at the time
he signed the certificate, or subsequently having
1.
2.
3.
AGENCY
Lease of Services
Principle
of
employment
is
applied.
Concurrence of parties
is necessary.
Employee
exercise
ministerial
functions
only
Principal Contract.
Sale
The buyer receives
goods as owner.
Buyer pays the price.
The buyer, as a rule,
cannot
return
the
object sold.
The buyer can deal
with the thing as he
places
being
the
owner.
Purpose of Agency
The purpose of agency is to extend the
personality of the principal through the facility of
the agent. It enables the activity of man which is
naturally limited in its exercise by the impositions
of his physiological conditions to be legally
extended by permitting him to be constructively
present in many different places and to perform
diverse juridical acts and carry on many different
activities through another when physical presence
is impossible or inadvisable at the same time. (11
Manresa 434)
Contract of Agency
ELEMENTS OF AGENCY
A. Consent
KINDS OF AGENCY
1. As to manner of creation
a)Express one where the agent has been
actually authorized by the principal, either
orally or in writing;
a)Implied one which is implied from the
i. Acts of the principal from his silence
or lack of action, or his failure to
repudiate the agency
knowing that
another person is acting on his behalf
without authority.
ii. Acts of the agent when he carries out
the agency, or from his silence or
inaction
according
to
the
circumstances.
2. As to its character
a) Gratuitous one where the agent
receives no compensation for his services.
b) Compensated or onerous one where
the agent receives compensation for his
services.
3. As to extent of business covered
a) General one which comprises all the
business of the principal;
b) Special one which comprises one or
more specific transactions.
4. As to authority conferred
FORMS OF AGENCY
Agency may be express or implied from the acts
of the principal, from his silence or lack of action,
or his failure to repudiate the agency, knowing that
another person is acting on his behalf without
authority. (Article 1869, NCC)
General Rule: There are not formal requirements
governing the appointment of an agent. The
2.
3.
General Agent
Special Agent
1. Scope of Authority
Usually authorized to Authorized to do only
do all acts connected
acts in pursuance of
with the business or
particular instructions
employment in which or with restrictions
he is engaged.
necessarily implied
from the acts to be
done.
2. Continuity
Conducts a series of
Usually involves a
transactions
single transactions or
involving a continuity a series of
of service.
transactions not
involving continuity.
3. Extent by which agent may bind
principal.
Binds his principal by Cannot bind his
an act within the
principal in a manner
scope of his authority beyond or outside
although it may be
the specific acts
contrary to his
which he is
special instructions.
authorized to
perform on behalf of
the principal.
4. Termination of Authority
Apparent authority
Mere revocation is
does not terminate
effective to terminate
by the mere
the authority as to
revocation of his
third persons
authority without
because the third
notice to the third
person has a duty to
party.
inquire.
5. Construction of Instruction of
Principal
Statement of
Authority of agent
principal with respect must be strictly
to the agents
pursued.
authority would
ordinarily regarded
as advisory only.
Notes:
2.
3.
4.
5.
6.
7.
8.
9.
the
agency
which
he
11.
12.
13.
14.
15.
10.
16.
17.
has
SUB-AGENT
JOINT AGENTS
a. Agents appointed by one or more principals
under such circumstances as to induce the
inference that it was the principals intent that
all should act in conjunction in consummating
the transaction for which they were appointed.
b. Their responsibility is joint; except if solidarity
has been expressly stipulated.
c. If solidarity has been agreed upon, each agent
is responsible for the:
d. non-fulfillment of the agency
e. fault or negligence of his fellow agents; except
when the fellow agents acted beyond the scope
of their authority.
Agent May Incur Personal Liability:
1. When the agent expressly binds himself
The individual liability of the agent can be
considered a further security in favor of the
creditor and does not affect or preclude the
liability of the principal; both are liable
2. When agent exceeds his authority
3. When agent by his acts prevents performance
on the part of the principal
4. When a person acts as an agent without
authority or without a principal
5. When a person who acts as an agent of an
incapacitated principal unless the third party
was aware of the incapacity at the time of the
making of the contract
Factor/Commission Agent
One engaged in the purchase and sale for a
principal of personal property, which for this
purpose, has to be placed in his possession and
at his disposal.
BROKER
A middleman or intermediary who, in behalf of
others and for a commission or fee, negotiates
contracts/transactions relating to real or personal
property.
Factorage
Compensation of a factor or commission agent.
Ordinary Commission
Compensation for the sale of goods which are
placed in his possession or at his disposal.
Guaranty Commission
Fee that is given in return for the risk, which the
agent has to bear in the collection of credits.
An agent with a del credere commission is liable to
the principal if the buyer fails to pay or is incapable
of paying.
Principal by Estoppel
Even when the agent has exceeded his authority,
the principal is solidarily liable with the agent if the
4.
5.
6.
TRUST
TRUST
A legal relationship between one person having an
equitable ownership in property and another
owning the legal title to such property.
CLASSIFICATION
1. Effectivity from the viewpoint of whether
they become effective after the death if the
trustor or during his life, it may be either:
a. Testamentary Trust
b. Trusts Inter Vivos (sometimes called
living trusts)
2. Creation from the viewpoint of the creative
force bringing them into existence, it may be
either:
a. Express trust created by the intention
of the trustor or of the parties
b. Implied Trust one which comes into
being by operation of law. This may be
either:
1) Resulting Trust one which the
intention to create a trust is presumed
by law to exist from the transaction
and facts of the case
2) Constructive trust one imposed by
law irrespective of and even contrary
to the intention of the parties. It is
designed to promote justice, frustrate
fraud and prevent unjust enrichment.
Persons Involved in the Creation of a Trust:
1. Trustor the one who intentionally creates a
trust
2. Trustee the person who holds the legal title
to the trust property for the benefit of another
and with certain powers and subject to certain
duties
3. Beneficiary or the cestui que trust the
one who has the equitable interest in the
property
and
enjoys
the
benefit
of
administration by the trustee. He may be a
natural person or a legal entity. The trustor
Trust Property
The concept of a trust arises from or is the result
of a fiduciary relation between the trustee and the
cestui que trust as regards certain property real,
personal, funds or money, choses in action held by
the trustee. (Pacheco v. Arro, 85 PHIL 505)
Trust
Always
involves
ownership, embracing
a set of rights and
duties
fiduciary
in
character which may
be
created
by
a
declaration
without
consideration
Contract
A legal obligation based
on
an
undertaking
supported
by
a
consideration,
which
obligation may or may
not be fiduciary in
character.
Trust
An
existing
legal
relationship
and
involves the separation
of legal and equitable
title
Donation
There is a transfer of
property as well as the
disposition of both legal
and equitable ownership
except in cases of gifts
in trust.
The done must comply
with
the
legal
requirements
in
accepting donations.
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
articles
1311
(stipulations
pour
autrui)
PROOF OF TRUST
General Rule: Trust whether express or implied
may be proved by parol or oral evidence
Exception: An express trusts over an immovable
property or any interest therein.
NECESSITY
OF
ACCEPTANCE
TO
THE
CREATION
AND
VALIDITY
OF
TRUST
RELATIONSHIP
1. Acceptance of the Trustee
The acceptance of the trustee is not necessary
to its existence and validity since if he declines,
the courts will appoint a trustee to fill the office
that he declines.
But a trustees acceptance of the trust is
necessary to charge him with the office of the
trustee and the administration of the trust and
to vest the legal title in him.
2. Acceptance of the beneficiary
The acceptance by the beneficiary is essential to
the creation and validity of a trust. However,
such acceptance is presumed if there is no proof
to the contrary and the trust does not impose
any onerous condition upon the beneficiary.
Requisites for a Trustee to Claim Title by
Prescription:
1. He has performed open and unequivocal acts of
repudiation
2. Such positive acts of repudiation have been
made known to the beneficiary or the cestui que
trust
3. The evidence thereon should be clear and
convincing and
4. The period fixed by law has expires (10 years
from the time that the repudiation is made
known to the beneficiary in cases of express
trust or resulting trust while 10 years from the
time a constructive trust arises).
Resulting Trust
1. Intention to
The intent of the
parties to create a
trust is presumed or
implied by law from
the nature of their
transaction.
2. Prescriptive Period
The
10
year
Constructive Trust
Create Trust:
The trust is created
irrespective of or even
contrary to the intention
of
the
parties
to
promote
justice,
frustrate fraud and to
prevent
unjust
enrichment.
The 10 year prescriptive
3.
prescriptive
period
shall be counted from
the time repudiation
is made known to
beneficiary.
Examples:
Illustrated in Arts.
1448, 1449, 1451,
1452, 1453
2. As to proof of trust
An express trust over An implied trust over
an immovable property an immovable or any
of any interest therein interest therein may be
cannot be proved by proved
by
oral
parol evidence
evidence.
3. As regards repudiation of trust
An express repudiation In constructive trusts,
made known to the even if there is no
beneficiary
is repudiation,
laches
necessary in order that may bar an action to
laches or acquisitive enforce
an
implied
prescription may bar trust.
an action to enforce an
express trust.
Exceptions:
Donations made to a person but the beneficial
interest is vested in another. The done is to trustee
while the designated third person is the
beneficiary. (Art. 1449, NCC).
Legal title to property purchased taken in one coowner. (Art. 1452, NCC)
Conveyance under a promise to hold for, or
transfer to another. (Art. 1453)
Implied trust
Come into being
operation of law.
by
CREDIT
TRANSACTIONS
____________________________________
Credit Transactions
Personal property
1) Pledge
2) Chattel mortgage
3) Preference and concurrence of
credits
BAILMENT
The delivery of property of one person to another
in trust for a specific purpose, with a contract,
express or implied, that the trust shall be faithfully
executed and the property returned or duly
accounted for when the special purpose is
accomplished or kept until the bailor claims it.
Parties:
1. Bailor the giver;one who delivers property.
2. Bailee the recipient; one who receives the
custody or possession of the thing thus
delivered.
LOAN
1.
2.
Credit
Ability of a person to
borrow
money
or
things by virtue of
the
trust
or
confidence
reposed
by the lender that
the borrower will pay
what he promised.
Interest is taken in
advance.
Always on a single
name
paper
(i.e.
promissory note with
no
indorse-ment
other
than
the
maker).
SALE
Consensual contract.
Bilateral
and
reciprocal.
KINDS OF LOAN:
1. Commodatum contract where one of the
contracting parties delivers to another a nonconsumable thing so that the other may use the
d.
A.
NATURE:
Purpose: Bailee in commodatum acquires the
temporary use of the thing but not its fruits (unless
stipulated as an incidental part of the contract)
(Art. 1935)
Use must be temporary, otherwise the contract
may be a deposit
2. Cause: Essentially gratuitous; it ceases to be a
commodatum of any compensation is to be paid by
the borrower who acquires the use, in such case
there arises a lease contract.
Similar to a donation in that it confers a benefit to
the recipient. The presumption is that the bailor
has loaned the thing for having no need therefore.
3. Subject Matter:
General Rule: Non-consumable whether real or
personal
Exception: If the consumable goods are not for
consumption as when they are merely for
exhibition, consumable goods may be the subject
of the commodatum. (Art. 1936, NCC)
4. Bailor need not be the owner of the thing owned
(Art. 1938, NCC) since by the loan, ownership does
not pass to the borrower.
5. Purely Personal (Art. 1939):
a. Death of either party terminates the
contract
unless
by
stipulation,
the
commodatum is transmitted to the heirs of
either or both parties.
b. A mere lessee or usufructuary may lend
but the borrower or bailee himself may not
lend nor lease the thing loaned to him to a
third person. (Art. 1932[2])
c. Use of the thing loaned may extend to
members of the bailees household except:
a. Contrary stipulation;
b. Nature of the thing forbids such use
1.
3.
4.
5.
3.
To be liable to the
bailee for damages for known hidden flaws.
Requisites:
1. There is flaw or defect in the thing loaned;
2. The flaw or defect is hidden;
3. The bailor is aware thereof;
4. He does not advise the bailee of the same; and
5. The bailee suffers damages by reason of said
flaw or defect.
B.
Simple
Loan/Mutuum
Delivery of money or
some
consumable
thing with a promise
to pay an equivalent
of the same kind and
quality
There is a transfer of
ownership
of
the
thing delivered
Rent
Delivery
of
some
non-consumable
order that the other
may use it during a
certain period and
return
it
to
the
former.
There is no transfer
of ownership of the
thing delivered.
INTEREST
The compensation allowed by law or fixed by the
parties for the loan or forbearance of money, goods
or credits
Requisites for Demandability:
1. Must be expressly stipulated
Exceptions:
a.
Indemnity for damages
b.
Interest accruing from unpaid interest
2. Must be lawful
3. Must be in writing
Requisites for Recovery of Interest:
General Rule: Unpaid interest shall not earn
interest.
Exceptions:
1. When judicially demanded under Art. 2212
2. When there is an express stipulation
Characteristics
1. Real Contract contract is perfected by the
delivery of the subject matter
2. Unilateral only the depositary has an
obligation
3. Bilateral gives rise to obligations on the part
of both the depository and depositor
DEPOSIT
1. Purpose
Principal purpose is
safekeeping
or
custody
2. When to return
Depositor
can
demand the return of
the subject matter at
will
3. Subject Matter
Subject matter may
be
movable
or
immovable property
4. Relationship
Relationship is that
of lender (creditor)
MUTUUM
Principal purpose is
consumption
depositary.
DEPOSIT
Purpose
safekeeping.
May be gratuitous
COMMODATUM
Purpose
is
the
transfer of the use.
Essentially
and
always gratuitous
Both movable and
immovable may be
the object.
is
Movable/corporeal
things only in case of
extrajudicial deposit.
DEPOSIT
A contract constituted from the moment a person
receives a thing belonging to another with the
obligation of safely keeping it and returning the
same. If the safekeeping of the thing delivers is
not the principal purpose of the contract, there is
no deposit but some other contract (Art. 1962)
and
borrower
(debtor)
5. compensation
There
can
be
compensation
of
credits.
NO compensation of
things deposited with
each other (except
by
mutual
agreement.)
KINDS OF DEPOSIT:
1. Judicial (sequestration) when an attachment
or seizure of property in litigation is ordered.
2. Extra-judicial
3. Subject Matter
Movables
or
immovables,
but
generally
immovables.
4. Cause
Always onerous.
Extra-Judicial
Will of the parties
or contract.
Custody
safekeeping.
and
Movables only.
May
be
compensated
or
not, but generally
gratuitous.
5. When must the thing be returned
Upon order of the Upon demand of
court
or
when depositor.
litigation is ended.
6. In whose behalf it is held
Person who has a Depositor or third
right.
person designated.
of
Depository
Necessary Deposits
1. made in compliance with a legal obligation;
2. made on the occasion of any calamity such as
fire, storm, flood, pillage, shipwreck or other
similar events(deposito miserable) or
3. made by the travelers in hotels and inns or b
travelers with common carrier.
And
Depository
Depositor
1. Keep the thing safely;
1. If gratuitous2. Not to use it,
to reimburse
generally;
the necessary expenses
3. Keep the secret of the
for preservation
deposit
2. If onerous- to
pay
4. Return the thing with
the price agreed upon
all its products,
generally, to reimburse
accessories upon
the depository for loss
demand even though
imputable to the
a specified period of
depositor
time has been fixed
for such return
Rule when there are two or More Depositors
(Art 1965)
1. If thing deposited is divisible and depositors
are not solidary. Each depositor can demand
only his proportionate share thereto.
2. If obligation is solidary or if thing is not
divisible: Rules on active solidarity shall apply.
i.e. each one of the solidary depositors may do
whatever may be useful to the others but not
anything which may be prejudicial to the latter,
(Art. 1212) and the depository may return the
thing to an one of the solidary depositors
unless a demand, judicial or extrajudicial, for
its return has been made by one of them in
which case, delivery should be made to him.
3. Return to one of depositors stipulated. The
depositary is bound to return it only to the
person designated although he has not made
any demand for its return.
GUARANTY
AND SURETYSHIP
3. As to Consideration
a. Gratuitous the guarantor does not receive
any price or remuneration for acting as such.
b. Onerous the guarantor receives valuable
consideration.
GUARANTY
SURETYSHIP
A contract of guaranty where the guarantor binds
himself solidarily with the principal debtor (Art.
2047, Par. 2)
1.
2.
3.
4.
5.
6.
7.
8.
GUARANTY
Liability depends upon an
independent agreement
to pay the obligation if
primary debtor fails to do
so.
Surety assumes
liability as regular
party to the
undertaking.
Collateral undertaking
Original promissory.
Guarantor is secondarily
liable.
Insurer of insolvency of
debtor.
Surety cannot.
INDORSEMENT
CHARACTERISTICS
SURETYSHIP
1.
OF
GUARANTY
AND
SURETYSHIP
GUARANTY
Primarily of transfer
Contract of security
absolute discharge of a
guarantors liability but his
is discharged only to the
extent of the loss which
he may have suffered in
consequence thereof.
warranty.
Double or Sub-Guaranty
Benefit of Excussion
Benefit of Division
GUARANTY
WARRANTY
A contract by which a
person is bound to
another for the
fulfillment of a promise
or engagement of a
third party.
1. Reimbursement
a. Total amount of the debt;
b. Interest (legal) from the time payment was
made known to the debtor;
c. Expenses incurred by the guarantor after
having notified the debtor that payment had
been demanded of him; and
d. Damages, if they are due (Art. 2066).
2. Subrogation
When
Guarantor
May
Proceed
Against
Principal Debtor Even Before Payment:
1.
2.
3.
4.
5.
6.
7.
NOTES:
Judicial bonds constitute merely a special class of
contracts of guaranty by the fact that they are
given in virtue of a judicial order.
If the person required to give a legal or judicial
bond should not be able to do so, a pledge or
mortgage sufficient to cover the obligation shall be
admitted in lieu thereof (Art. 2083, NCC)
A judicial bondsman and the sub-surety are NOT
entitled to the benefit of excussion because they
are not mere guarantors, but sureties whose
liability is primary and solidary. (Art 2084, NCC)
Extinguishment of Guaranty
Release in favor of one of the guarantors, without
the consent of the others, benefits all to the extent
of the share of the guarantor to whom it has been
granted (Art. 2078, NCC)
If the creditor voluntarily accepts immovable or
other properties in payment of the debt, even if he
should afterward lose the same through eviction or
conveyance of property (Art 2077, NCC);
Whenever by some act of the creditor, the
guarantors even though they are solidarily liable
cannot be subrogated to the rights, mortgages and
preferences of the former (Art 2080, NCC);
For the same causes as all other obligations (Art
1231, NCC);
When the principal obligation is extinguished;
Extension granted to the debtor by the creditor
without the consent of the guarantor (Art. 2079,
NCC)
Bond
PLEDGE
PLEDGE
A contract by virtue of which the debtor
delivers to the creditor or to a third
person a movable, or a document
evidencing incorporeal rights for the
purpose of securing the fulfillment of a
principal
obligation
with
the
understanding that when the obligation is
fulfilled the thing delivered shall be
returned with all its fruits and accessions.
Essential
Mortgage
1.
Requirements
of
Pledge
and
2.
3.
4.
5.
Pactum Commissorium
A stipulation whereby the thing pledged or
mortgaged or under antichresis shall automatically
become the property of the creditor in the event of
nonpayment of the debt within the term fixed.
Such is forbidden by law and declared null and
void.
Article 2107
1.
2.
3.
4.
5.
6.
7.
Rights
Obligations
To demand return in 1.
case of reasonable
grounds to fear
destruction or
2.
impairment of the thing
without the pledgees
fault, subject to the
duty of replacement
(Art 2107, NCC)
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
MORTGAGE
A. REAL MORTGAGE
Kinds of Mortgage
Voluntary
Legal
Equitable (Art. 1602, NCC)
1.
2.
3.
Real right;
Accessory obligation;
Indivisibility;
Retention of Possession; and
Inseparability
Pledge
1.
Constituted on
1.
movables
Property is delivered to
pledge or by common
consent to a third
person
Not valid against third
persons unless
2.
3.
Real Mortgage
Constituted on
immovables
2. delivery is not
necessary
3. not valid against
third persons unless
registered
FORECLOSURE
The remedy available to the mortgagee by which
he subjects the mortgaged property to the
satisfaction of the obligation to secure that for
which the mortgage was given.
Kinds of Foreclosure
1. Judicial
Extent of Mortgage:
2.
2. Extrajudicial
JUDICIAL
FORECLOSURE
EXTRAJUDICIAL
FORECLOSURE
There is court
intervention.
No court intervention.
Decisions are
appealable.
There is equity of
redemption except on
banks which provides
for a right of
redemption.
There is a right of
redemption.
Period of redemption
except on banks which
provides for a right of
redemption.
There is a right of
redemption.
Special power of
attorney in favor of
mortgagee in needed in
the contract.
KINDS OF REDEMPTION
1. Equity of Redemption
ANTICHRESIS
ANTICHRESIS
CONTRACT
Whereas the creditor acquires the right to receive
the fruits of an immovable of his debtor, with the
obligation to apply them to the payment of the
interest, if owing, and thereafter to the principal of
his credit. (Art. 2132)
Characteristics
1. Accessory contract it secures the performance
of a principal obligation
2. Formal Contract it must be valid in a specified
form to be valid, i.e. in writing. (Art. 2134,
NCC)
to
the
REAL MORTGAGE
Property is delivered to
creditor.
It is expressly stipulated
that the creditor given
possession of the
property shall apply all
the fruits thereof to the
payment of interest, if
owing, and thereafter to
the principal
There is no such
obligation on part of
mortgagee
2.
ANTICHRESIS
Refers to real property.
Perfected by mere
consent.
PLEDGE
Refers to personal
property.
Perfected by delivery of
the thing pledged.
3.
4.
2.
1.
2.
3.
1.
2.
3.
4.
CHATTEL MORTGAGE
Characteristics:
1.
5.
to
the
ANTICHRESIS
CHATTEL MORTGAGE
Debtor always in
possession.
Required to registered
only for the purpose of
binding third persons.
No such obligation is
imposed on the
creditor.
Foreclosure is judicial
but parties may agree
that it be extrajudicial.
Foreclosure may be
judicial or extra-judicial
at option of the
creditor.
Chattel Mortgage
Pledge
1. Consensual contract 1.
2. Possession of the thing2.
mortgaged remains
with the debtor
3. Must be recorded in 3.
CMR for validity
Real contract
Possession of the thing
pledged vested in
creditor
Requires that contracts
be in public instrument
so as to bind 3rd
persons
4. Procedure for
4. Sale at public auction
foreclosure is different
from pledge
5. Debtor still liable for 5. Debtor not liable for
deficiency
deficiency
CHATTEL MORTGAGE
REAL ESTATE
MORTGAGE
Personal property
Real property
Requirement of
registration is essential
for the validity of the
contract
Right of Redemption
Preference of Credit
RIGHT TO
PROPERTY
1.
2.
POSSESSION
OF
FORECLOSED
Preference of
Credit
Applies only to
claims which do not
attach to specific
properties.
Creates a charge on
a particular property.
CONCURRENCE OF CREDITS
Implies the possession by two or more
creditors of equal rights or privileges
Lien
CONCURRENCE AND
PREFERENCE OF
CREDITS
(National
Investment
and
Development
Corporation vs. de los Angeles, 40 SCRA 489).
Lease
A consensual, bilateral, onerous and
commutative contract by virtue of which
one person binds himself to grant
temporarily the use of the thing or to
render some service to another who
undertakes to pay some rent.
LEASE
Rent
LEASE OF THINGS
Object of contract is a
thing
Lessor has to deliver
the thing leased
In case of breach,
there can be an action
for specific
performance
LEASE OF SERVICES
(location operatum)
The important object is
the labor performed by
the lessor
The result is generally
not important, hence
the laborer is entitled
SUBLEASE
SALES
Ownership is
transferred
Transfer is permanent
Seller must be the
owner at the time the
property is delivered
Usually, the selling
price is mentioned
LEASE OF SERVICES
Object is some work or
service
Lessor has to perform
some work or service
In case of breach, no
action for specific
performance
CONTRACT FOR A
PIECE
(location operas)
The important object is
the work done
The result is generally
important; generally,
the price is not payable
SUBLEASE
There are two leases
and two distinct
juridical relationships
although immediately
connected and related
ASSIGNMENT OF
LEASE
There is only one
juridical relationship,
that of the lessor and
the assignee, who is
converted into a
to each other
The personality of the
lessee does not
disappear
The lessee does not
transmit absolutely his
rights and obligations to
the sublessee
The sublessee,
generally, does not
have any direct action
against the lessor
lessee
The personality of the
lessee disappears
1.
2.
Duration of Lease
1. Lease made for a determinate time or fixed
period
b.
Lessees
2.
3.
4.
5.
1.
2.
If there is
period.
If no fixed
a. If rent
b. If rent
c. If rent
d. If rent
TORRENS TITLE
Certificate of ownership issued under the Torrens
System of registration by the government, through
the Registrar of Land Titles and Deeds; naming
and declaring the owner in fee simple 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.
LAND TITLE
Special stipulation
If none, custom of the place
In case of doubt, the repairs are chargeable
against him.
Lease Duration:
Types of Estate
1. Freehold Estate indicates titles of ownership
a. Fee simple absolute title; conferred
without limitation, qualification or
restriction.
c. Fee tail pass title to grantee and his
heirs.
of
or
in
is
DEED
An instrument in writing by which any real estate
or interest therein is created, alienated, mortgaged
or assigned, or by which title to any real estate
may be affected in law or equity.
Registered owner are entitled to the possession of
the property covered the said title prior physical
possession is necessary only in forcible entry
cases. In Section 48 of PD No. 1529, a certificate
of title shall not be subject to collateral attack. It
cannot be altered, modified or cancelled.
3. Appeal
4. Petition For Review, requisites:
a. Petitioner has a real and dominical right;
b. He has been deprived thereof;
c. Through actual fraud;
d. Petition is filed within one year from issuance
of the decree;
e. Property has not yet passed to an innocent
purchaser for value.
5. Action For Reconveyance, grounds:
a. Fraud (within four years from discover of
fraud);
b. Implied or constructive trust;
c. Express trust;
d. Void contract.
6. Action For Damages
After one year from date of the decree and if
reconveyance is not possible because the property
RECONSTITUTION OF TITLE
Restoration of the instrument which is supposed to
have been lost or destroyed in its original form and
condition.
CLASSIFICATION OF LANDS
1. Forest
2. Agricultural
3. Mineral
4. Public Parks
Involuntary registration
PERSONS
WHO
MAY
APPLY
FOR
REGISTRATION OF LAND TITLES
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 under a bona fide
claim of ownership since June 12, 1945, or
earlier;
2. Those who have acquired ownership of private
lands by prescription under the provisions of
existing laws;
3. Those who have acquired ownership of private
lands or abandoned river beds by right or
accession or accretion; and
4. Those who have acquired ownership of land in
any other manner provided for by law.
SYSTEMS OF REGISTRATION
1. System under the Spanish Mortgage Law
2. Torrens System
3. System of recording for unregistered lands
Decree OCT
2. Administrative
Patent OCT
Restricted
as
to
extent
reasonably
necessary to enable it to carry out purpose
which it was created.
If engaged in agricultural-restricted to
1.024 hectares.
B. Patrimonial Property of State
1.
2.
3.
4.
Presentation
of
the
Owners
Duplicate
Certificate whenever any duly executed
voluntary instrument is filed for registration;
Payment of prescribed registration fees and the
requisite documentary stamps;
Evidence of full payment of real estate tax as
may be due; and
Inclusion of one extra copy of any document of
transfer of alienation of the real property to be
furnished the city or provincial assessor.
AMENDMENT
AND
ALTERATION
OF
CERTIFICATE OF TITLE
Transactions
affecting
land
in
which
cooperation of registered owner is not needed;
it may even be against its will.
ATTACHMENT
REGISTRATION OF
LIS PENDENS
TThe purpose of this is to keep subject matter
within the power of the court until the entry of final
judgment, therefore it creates a contingency and
not a lien on the property.
NNotice of lis pendens is an involuntary
transaction, hence, it is sufficient that there is an
entry in the day book.
CADASTRAL REGISTRATION
Cadastral Registration
2. Filing of Petition
CADASTRAL
PROCEEDINGS
This is initiated by the
Government.
The subject matter are
private and public
property
The Government is not
interested in asserting
ownership but merely
interested in the
settlement of titles.
The Government
undertake the survey
and advances the
expenses
In absence of successful
claimant, property goes
to the government.
ORDINARY
REGISTRATION
Private individuals
initiate the
proceeding.
Only private lands
may be subjected to
the proceedings
Ownership is asserted
by the individual.
Strict Liability
TORTS
Types:
1. Animals
General Rule: The possessor of an animal or
whoever may make use of the same is responsible
for the damages, which it may cause although it
may escape or be lost.
Strict liability;
Intentional acts; and
Negligence
2. Falling Objects
3. Liability of Employers
2.
3.
4.
Proprietor
of a building or structure, for damages
resulting from its total or partial collapse, if it
should be due to lack of necessary repairs.
Breach
of
implied warranties.
Consumer
Act (RA 7394) any Filipino or foreign
manufacturer,
producer
and
importer,
independently of fault shall be liable for
redress for damages caused to consumers by
defects resulting from:
a. Design;
b. Manufacture;
c.
Construction;
d. Assembly and erection;
e. Formulas and handling and making up; or
f. Presentation or packing of their products
as well as for the insufficient or inadequate
information on the use and hazards
thereof.
Even when an act or event causing damage to
anothers 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. (Art. 23, Civil Code)
3. Negligence
c.
2.
BUSINESS TORTS
1. Interference of Contracts
Elements:
a. Existence of a valid contract;
b. Knowledge on the part of the third person of
the existence of the contract; and
c. Interference of the third person without legal
justification.
DEFENSES:
1.
The
manufacturer,
builder,
producer, or importer shall not be liable when it
evidences:
a. That it did not place the product on the
market
b. That although it did place the product on
the market such product has no defect.
Kinds:
a.
Fraudulent transactions;
b.
Misstatements
or
omission
of
statement of a material fact required to be
stated.
Extent of Liability:
INTENTIONAL TORTS
3. Unfair Competition.
NEGLIGENCE
Cases included:
a.
b.
c.
d.
GROSS NEGLIGENCE
Negligence where there is want of even slight care
and diligence.
QUASI-DELICTS
Fault or negligence of a person, who, by his act or
omission, connected or unconnected with, but
independent from, any contractual relation, causes
damages to another person.
Elements (ADEN):
1. Act or omission;
2. Damage to another;
3. Existence of fault or negligence; and
4. No pre-existing contractual relation between
the parties.
Extent of Liability
1) Tortfeasor must foresee the result of the act or
omission.
2) Damage must be direct
3) Damage must be the natural and probable
result of the act even if not necessarily
foreseeable.
Responsibility for tort is entirely separate and
distinct from civil liability but damages cannot be
recovered twice for the same act or omission.
Test of Negligence
Would a prudent man, in the position of the
person to whom negligence is attributed foresee
harm to the person injured as a reasonable
consequence of the course about to be pursued?
If so, the law imposes a duty on the actor to
refrain from that course or to take precaution
against tits mischievous results, and the failure to
do so constitutes negligence.
Joint Tortfeasors
Time
Place
Emergency
Gravity of Harm to be avoided
Alternative Course of Action
Social value or utility of activity
Person exposed to the risk
b.
c.
d.
apportionment
of
damages
3. Assumption of Risk
A plaintiff who voluntarily assumes a risk of harm
arising from teh negligent or reckless conduct of
the defendant cannot recover from such harm.
NATURE
Negligence
Pre-existing
obligation
Proof Needed.
Defense of a good
father of a family.
Burden of Proof
CONTRACTUAL
Merely incidental to the
performance of the
obligation already
existing because of a
contract.
Yes, express or implied.
Preponderance of
evidence
In the selection and
supervision of employees
not a proper defense
but may mitigate
damages doctrine of
respondiat superior.
Debtor As long as it is
provided that there was a
contract and that it was
not carried out, it is
presumed that the debtor
is at fault. Its the
debtors duty to prove
that there was no
negligence in carrying
out the terms of the
contract.
AQUILIANA
Negligence is direct,
substantive and
independent of a
contract.
CRIMINAL
Negligence is direct,
substantive and
independent of a contract.
Accused is presumed
innocent until the contrary
is proved, so prosecution
has the burden of proving
the negligence of the
accused.
EMERGENCY OR SUDDEN PERIL DOCTRINE
4. CONCURRENT CAUSE
4. Prescription
Four years from the date of the accident (Art.
1146)
5. Involuntariness
It is a complete defense in quasi-delict cases and
the defendant is therefore not liable if force was
exerted on him.
CAUSATION:
1. PROXIMATE CAUSE
It is that cause which in natural and continuous
sequence, unbroken by any efficient intervening
cause, produces the injury and without which, the
result would not have occurred.
2 . REMOTE CAUSE
NEAREST CAUSE
If the defendants negligence was not the cause-infact, the inquiry stops.
If it is, the inquiry shifts to the question of limit of
the defendants liability (Policy test)
DOCTRINE OF ATTRACTIVE NUISANCE RULE:
2.
in
control
and
DAMAGES
A sum of money, which the law awards or
imposes as pecuniary compensation,
recompense or satisfaction, for an injury
done or a wrong sustained as a consequence
of the breach of some duty or violation of
some right (PNB v. RBL Enterprise, G.R. No.
149589, May 28, 2004)
KINDS OF DAMAGES
1. ACTUAL DAMAGES
Ordinary Damages
That which is generally an inherent breach of
typical contract.
Special Damages
That which exists because of special circumstances
and for which a debtor in good faith can be held
liable only if he had been previously informed of
such circumstances.
Crimes and Quasi-Delicts
Defendant is liable for all damages that are natural
and probable consequence of the act or omission
complained of. It is NOT NECESSARY that such
damages have been foreseen or could have been
reasonably foreseen
5.
Physical Suffering
Includes pain incident to surgery
treatment; also includes future pain.
Mental Anguish
A high degree of mental suffering, not merely
disappointment or regret.
2. MORAL DAMAGES
Requisites:
1. Physical Suffering,
2. Mental anguish,
3. Fright,
4. Serious anxiety,
5. Besmirched reputation,
6. Wounded feeling,
7. Moral shock,
8. Social humiliation, etc., (this must be alleged
and proved)
Moral damages may be awarded whenever the
defendants wrongful act or omission is the
proximate cause of the plaintiffs physical suffering,
mental anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social
humiliation, and similar injury in the cases
specified or analogous to those provided in Article
2219 of the Civil Code. Though no proof of
pecuniary loss is necessary in order that moral
damages may be adjudicated, courts are mandated
or medical
1. Primary
Spouse, legitimate and illegitimate children.
2.Secondary
Grandparents.
Absence of primary and secondary siblings.
3. NOMINAL DAMAGES
4. TEMPERATE (MODERATE)
DAMAGES
Requisites:
1. Some pecuniary losses;
2. Loss is incapable of pecuniary estimation;
3. Must be reasonable.
5. LIQUIDATED DAMAGES
Those agreed upon by parties to be paid in case of
breach of contract. It is in the nature of penalty.
6. EXEMPLARY DAMAGES
Imposed by way of example or correction for public
good in addition to the moral, temperate,
liquidated or compensatory damages.
7.
CONFLICT OF LAW
[PRIVATE
INTERNATIONAL LAW]
-
Testamentary
Dispositions)
3. As to applicability
Governs rights and
obligations of States
and their relationships
among themselves
4. As to persons involved
Governs only states Governs individuals or
and
internationally corporations
recognized
organizations
5. As to transactions
Recognized
Assumes control over
transactions in which transactions
strictly
sovereign States are private in nature
interested
6. As to remedies
In case of violation of All
remedies
are
International Law, the provided by municipal
State may resort to laws of the State, such
diplomatic
protest, as resort to courts and
negotiation, arbitration administrative tribunals
or
adjudication
by
filing
cases
before
international tribunals
or may even resort to
use of force or go to
war
DEFINITION OF TERMS:
DISTINCTION BETWEEN
PUBLIC I.L. & PRIVATE I.L.
Public International
Private International
Law
Law
1. As to nature or character
International
in National, municipal or
character as it applies local in character
in the international
sphere
2. As to sources
Custom, treaty and Generally derived from
general principles of the internal law of each
law
recognized
by state;
except
any
civilized nations and conflict
of
laws
juridical decisions and question
which
is
teachings of the most governed by a treaty
highly
qualified (e.g.
Hague
publicists
Convention
on
the
conflicts of law relating
to
the
Form
of
Private international law "sensu stricto" comprises conflict of laws rules which determine
the law of which country (state) is applicable to
specific relations.
Private international law "sensu largo" comprises private international law "sensu stricto"
(conflict of laws rules) and material legal norms
(the applicable specific municipal law of a state,
whether of the forum or foreign) which have direct
extraterritorial character and are imperatively
applied (eg., regulations on real property,
consumer law, currency control regulations,
insurance and banking regulations).
1.
2.
3.
4.
5.
6.
EXCEPTIONS TO
FOREIGN LAW:
a.
b.
c.
d.
e.
f.
g.
h.
WAYS
OF
DEALING
WITH
CONFLICTS
PROBLEM
1. Dismiss the case for lack of jurisdiction, or on
the ground of forum non-conveniens.
2. Assume jurisdiction and apply either the law of
the forum or of another state:
a.
b.
THE
APPLICATION
OF
5. Theory of Justice
The purpose of all laws, including conflict of laws,
is the dispensing of justice; if this can be attained
in many cases applying the proper foreign law, we
must do so.