FEU Civil Law Study Guide

Far Eastern University
Institute of Law
333333333333333333333333333333
PRELIMINARIES
by administrative superiors concerning

their duties. (Supra.)
ART. 2, NCC
When Laws Become Effective
The effectivity of a law will depend on
whether or not it has provided a specific
date for its effectivity, such that:
ART. 3, NCC
Ignorance of the law excuses no one
from compliance therewith. (Ignorantia
legis non excusat). (1985, 1996 Bar)
Art. 4, NCC
The law provides for the future, the
judge for the past. (Lex de futuro judex
de preterio)
1. If there is no date specified for its
2.
effectivity, the law becomes

effective after 15 days following
the completion of its publication in
the Official Gazette or newspaper
of general circulation (Art. 2, NCC,
as amended by E.O. No. 200);
If the law provided a specific date
for its effectivity, it becomes
effective only upon the lapse of
said period following its complete
publication
and
not
before
(Tanada v. Tuvera, 146 SCRA
446).
GENERAL RULE: Law must be applied

prospectively. (Art. 4, NCC)
EXCEPTIONS: (1977 Bar)
(Keyword: PRINCES)
1. Penal laws insofar as they favor
the accused or the convict who is
not a habitual criminal as the term
is defined under the Revised
Penal Code. (Art. 22, RPC);
2. Remedial laws as long as they do
not affect or change vested rights.
(Aguillon v. Dir. of Lands, 17 Phil
507);
3. Interpretative laws (Tolentino);
4. Curative laws (50 Am. Jur. 503
505), provided that they must not
impair vested rights nor affect final
judgments (Aetna Insurance Co.
v. OMalley, 118 SW 3);
5. Emergency laws which are
authorized by the police power of
the State. (Santos v. Alvarez, 44
O.G. 4259)
6. When the law creates new
substantive right unless vested
rights are impaired. (Art. 2253,
NCC; Quizana v. Redugerio, 94
Phil 922);
7. If the statute provides for
retroactivity. (Art. 4, NCC);
Note: A newspaper is considered of

general circulation if its circulation is made
within the courts jurisdiction, published at
regular intervals for the dissemination of
local news and general information, with
bona fide subscription list of paying
subscribers and it is not devoted to the
interest or published for the entertainment
of a particular class, profession, trade,
calling, race or religious denomination.
(Basa v. Mercado, 61 Phil. 636)
Meaning of unless otherwise provided
The phrase refers to the date of
effectivity of laws and not to the
requirement of publication. Publication is
indispensable. No law can become
immediately effective upon approval
without complete publication. (Tanada v.
Tuvera, supra.)
Art. 5, NCC
Mandatory/Prohibitory Laws
The law comprehends all statutes

(of public nature), including those of
local application and private laws
which should be published as a
condition for their effectivity and shall
begin 15 days after publication, unless
the legislature fixes a different
effectivity date;
Interpretative regulations and
those merely internal, i.e., those that
regulate only the administrative
agencys personnel and not the public,
need not be published; neither are the
so-called letters of instruction issued
GENERAL RULE: Acts which are contrary

to mandatory or prohibitory laws are VOID
(Art. 5, NCC).
EXCEPTIONS: (Sampaguita Pictures Inc.
v. Villamayor, CV-58312, April 14, 1983):
1. When the law itself authorized its
validity (e.g. lotto, sweepstakes,
and bigamous marriage under Art.
41, FC);
2. When the law makes the act only
voidable and not void (e.g. vitiated
1
Civil Law Study Guide

Centralized Bar Operations 2007

Institute of Law
consent renders the marriage

voidable only under Art. 45, FC);
3. When the law makes the act valid
but punishes the violator (e.g.
premature marriages under Art.
351, RPC);
4. When the law makes the act void
but recognizes legal effects
flowing therefrom. (e.g. legitimacy
of children under Art. 54, NCC)
immovables are governed by the law of

the country in which they are situated.
(Blacks Law Dictionary)
EXCEPTIONS: Successional Rights
(Keyword: CIAO)
1. Capacity to succeed (Art. 1039,
NCC);
2. Intrinsic validity of will;
3. Amount of successional rights;
4. Order of succession (Art. 16, par.
2, NCC).
Art. 6, NCC (1977 Bar)

Requisites of A Valid Waiver of Rights
(Keyword: CLEFP)
1. Capacity to make the waiver;
2. The waiver must not prejudice
others with a right recognized by
law (Art. 6, NCC);
3. The waiver must be made clearly,
but not necessarily express
(Acting Provincial Sheriff of
Surigao v. PTC, L- 4083, Aug. 31,
1953);
4. Existence of the right to be waived
(TS, March 11, 1964);
5. The waiver must not be contrary
to law, public order, public policy,
morals or good customs (Art. 6,
NCC);
6. In certain instances, waiver must
comply with the formalities of a
donation (Art. 1270, NCC).
Renvoi Doctrine Literally, renvoi means

a referring back which arises where our
law refers a case to another country for
solution, but the law of that country refers
it back to our country for determination.
When the reference is made back
to the law of the forum, that is known as
remission (or single renvoi) while the
reference made to a third state is known
as transmission (or double renvoi).
(Pineda)
Art. 17, NCC
Law Governing The Forms And
Solemnities Of Contracts, Wills And
Other Public Instruments
GENERAL
RULE:
Lex
Loci
Celebrationis: Under this principle,
matters bearing upon the execution,
interpretation and validity of a contract are
determined by the law of the place where
the contract is made. (Insular Govt. v.
Frank, 13 Phil. 236)
Art. 17, par. 1, NCC: The forms
and solemnities of contracts, wills, and
other public instruments shall be governed
by the laws of the country in which they
are executed.
Things Governed By the NATIONAL

LAW Even If Living Abroad
(Keyword: CLOFS)
1. Family rights and duties;
2. Status;
3. Condition; and
4. Legal capacity (Art. 15 NCC).
Theories Of Personal Laws
1. Domiciliary Theory: This
states that the personal laws of an
individual (i.e. those pertaining to his
status, etc.) are determined by his
domicile. This is followed in the United
States.
2. Nationality Theory: This
makes the nationality or citizenship as the
basis for determining the personal laws of
an individual. This is followed by the NCC.
(Tolentino)
EXCEPTION: When the acts are executed

before the consular or diplomatic officials
of the Philippines in a foreign country. (Art.
17, par. 2, NCC)
Rules in Determining the Intrinsic
Validity of Contracts
(Keyword: PNDS)
1. The law stipulated by the parties
shall be applied;
2. In the absence of any stipulation,
and if the parties are of the same
nationalities, their national law
shall be applied;
3. If the parties are not of the same
nationalities, the law of the place
of perfection of the obligation shall
Art. 16, NCC (1977 Bar)

Law Governing Real And Personal
Properties
GENERAL RULE: Lex Rei Sitae: The
rule which states that lands and other
2


Institute of Law
govern its essence and nature,

and the law of the place of the
performance shall govern its
fulfillment;
4. If the above places are not
specified and they cannot be
deduced from the nature and
circumstances of the obligation,
then the law of the domicile of the
passive subject shall apply.
(Manresa and Valverde)
LEX
NATIONALII
Art. 15, NCC
Citizenship
is the basis
for
determining
the personal
law
applicable
Includes
family rights
& duties,
status,
condition &
legal
capacity
Exception:
Art. 26, par.
2 of Family
Code
LEX REI
SITAE
Art.16,NCC
Law of the
place
where the
property is
situated is
the basis
for
determining
law
applicable
Includes
both real &
personal
property
Exceptions:
(AICO)
1. . Amount
of
succession
al rights
2 Intrinsic
validity of
the
provisions
of a will
3. Capacity
to succeed
4. Order of
succession
LEX LOCI
CELEBRATIONIS
Art. 17, NCC
Law of the place
where the contract
was executed is
the basis for
determining law
applicable
Article 19,
NCC
Elements of an
abuse of
rights:
1. There is a
Legal Right
2. Which is
exercised in
bad faith
3. For the sole
intent of
prejudicing or
injuring
another
Article 20,
NCC
Speaks of
the general
sanction for
all other
provisions of
law which do
not specially
provide for
their own
sanction.
The act causes

prejudice to a
right of a party.
The act is
contrary to
law.
Done
intentionally.
The act is
done either
wilfully or
negligently.
Include only the

forms &
solemnities
(extrinsic validity)
Article 21, NCC

Deals with acts
contra bonus
mores, and has
the elements of:
1. There is an
act which is
legal
2. But which is
contrary to
morals, good
customs, public
order, or public
policy
3. It is done with
intent to injure
The act is
contrary to
morals, good
customs, or
public policy.
Done voluntarily
with bad
purpose.
HUMAN RELATIONS
Art. 19
Principle Of Abuse Of Right
Exceptions:
1. Art. 26, par. 1 of
Family Code.
2. Intrinsic validity
of contracts
Three General Precepts Which Served

As The Bases Of Art. 19
1. Honeste vivere (to live honorably,
creditably, or virtuously);
2. Alterum non laedere (not to injure
others);
3. Suum cuique tribuere (to render to
man his due)
Note: These are the precepts to which
Justinian reduced the whole doctrine of
the law.
Rationale Behind The Principle
The exercise of a right ends when the
right disappears, and it disappears when it
is abused, especially to the prejudice of
others. The mask of a right without the
spirit of justice which gives it life is
repugnant to the modern concept of social
law. It can not be said that a person
exercises a right when he unnecessarily
prejudices another or offends morals or
good customs x x x. (Borrel Macia)
Elements Of Abuse Of Right Under Art.
19 (Keyword: BIE)


Institute of Law
1. the existence of a legal right or

duty;
2. which is exercised in bad faith;
3. for the sole intent prejudicing or
injuring another. (SEACOM Co.,
Inc. v. CA, et. al., G.R. No.
122823, November 25, 1999)
imposed by law for the commission of

the crime.
When Civil Liability Is Not Extinguished
By Acquittal
1. When the acquittal is based on the
ground that his guilt has not been
proved beyond reasonable doubt;
2. Where the court expressly declares
that the liability of the accused is not
criminal but only civil in nature;
3. Where the civil liability is not derived
from or based on the criminal act of
which the accused is acquitted (Sadeo
vs. RTC of Antique, 201 SCRA 744).
Acting With Justice And Giving Another

His Due
This is elaborated in the following
articles of the New Civil Code, among
others:
1. Art. 20 indemnification of
another due to illegal acts;
2. Art. 21 indemnification due to
immoral acts;
3. Art. 22 unjust enrichment;
4. Art. 24 unfair competition
Art. 21.
Recovery Of Damages Even Without
Positive Law
Art. 21 Distinguished From Art. 20
Observance of Honesty and Good Faith

This is elaborated in the following
articles of the NCC, among others:
1. Art. 25 restraint of undue
extravagance;
2. Art. 26 respect for the
personality and dignity of others;
3. Art. 31 et seq. independent civil
actions
Note: Honesty careful regard for others
rights and property;
Good Faith honest intention to
avoid taking undue advantage of another.
(Cui v. Henson, 51 Phil. 612)
This article introduces a broader

concept of torts for it embraces both
the Spanish tort which is based on
negligence, and the American tort
which is based on malice.(Caguioa)
In Banal vs. Tadeo, G.R. No. L-891125, Dec. 11,1987, the SC held that
regardless of whether or not a special
law so provides, indemnification of the
offended party may be on account of
the damage, loss or injury directly
suffered as a consequence of the
wrongful act of another. The indemnity
which a person is sentenced to pay
forms an integral part of the penalty
Art. 20
The act is contrary

to morals, good
customs, or public
policy
The act is contrary

to law
The act is done

willfully, i.e. with a
bad purpose
The act is done

either willfully or
negligently
Rules on Breach Of Promise to Marry

GENERAL RULE: Breach of promise to
marry is not actionable. (De Jesus v.
Syquia, 58 Phil. 866)
ART. 20
Indemnity For Willful or Negligent Acts
This is founded on the basic rule that
every person who is criminally liable
shall also be civilly liable. (Art. 100,
RPC)
Art. 21
EXCEPTION: If there be an act

independent of such breach such as
carnal knowledge (Hermosisima v. CA,
109 Phil. 629); preparations made for the
wedding celebration (Wassmer v. Velez,
120 Phil. 1440); resignation from a job
(Garcia v. Del Rosario, 33 Phil. 189);
advancement of a sum of money in
consideration of the marriage promised
(Domalagan v. Bolifer, 33 Phil. 471); and
the like, breach of promise to marry may
be an actionable wrong.
Note: Carnal knowledge must be the
result of the promise of marriage. It must
not be the result of mutual lust
(Hermosisima v. CA, supra.).
In other words, there must be
deception, enticement, superior power or
abuse of confidence on the part of the


Institute of Law
seducer to which the woman yielded

(Tanjanco v. CA, 125 Phil. 158).
Remedies Available: (Keyword: POD)

1. An action for damages;
2. An action for prevention;
3. Any other relief (Art. 26, supra.).
ART. 22
Principle Against Unjust Enrichment:
No person shall unjustly enrich himself at
the expense of another. (Nemo cum
alterius detrimento locupletari potest)
ART. 27
Refusal Or Neglect In The Performance
Of Official Duty
Accion In Rem Verso a subsidiary

action for the recovery of what has been
paid without just cause.
Requisites for Filing an Action

(Keyword: WIVP)
1. That the defendant be a public
official
charged
with
the
performance of official duties;
2. That there be a violation of the
official duty in favor of an
individual;
3. That there be willfulness or
negligence in the violation of such
duty; and
4. That there be an injury to the
individual. (Tolentino)
Requisites Of Accion Rem In Verso

(Keyword: LALE)
1. The defendant has been enriched;
2. The plaintiff has suffered a loss;
3. The plaintiff has no other action based
on contract, quasi-contract, crime or
quasidelict; and
4. The enrichment of the defendant is
without just or legal ground (Tan vs.
Largo, SP- 0841m June 30, 1986);
5. The indemnity cannot exceed the loss
or enrichment. (Reyes and Puno)
ART. 28
Unfair Competition consists in
employing deception or any other means
contrary to good faith, by which any
person shall pass off the goods
manufactured by him or in which he deals,
or his business, or services for those of
the one having established goodwill, or
committing any acts calculated to produce
such result. (Sec. 29, RA No. 166)
ART. 25
Curtailing Thoughtless Extravagance
Requisites For Filing Of Actions To
Stop Extravagance
(Keyword: GWEP)
1. There is thoughtless extravagance
in expenses;
2. The extravagance is for pleasure
or display;
3. There is a period of acute public
want or emergency;
4. The case is filed in court by a
governmental institution or private
charitable institution. (Pineda)
Some Acts Not Allowed

1. A strike prematurely declared
(Insular Sugar Ref. Corp. v. CIR,
G.R. L-7594, Sept. 8, 1954);
2. A strike for trivial, unjust, or
unreasonable
cause.
(Luzon
Marine Dept. Union v. Luzon
Stevedoring Co., 47 O.G. 146);
3. A strike carried out thru force,
intimidation or other unlawful
means. (Luzon Marine Dept.
Union v. Luzon Stevedoring Co.,
supra.);
4. A strike in order to circumvent
valid obligations entered into a
collective bargaining contract.
(Manila Oriental Sawmill Co. v.
Nat. Labor Union, March 24,
1952);
5. Cutthroat competition (where one
is ready to lose if only to drive
somebody else out of business).
(Tuttle v. Black, 107 Minn. 145);
6. The making of any false statement
in the course of trade to discredit
ART. 26 (1977 Bar)

Duty To Respect Dignity And Privacy
Acts Covered: (Keyword: VIMP)
1. Prying into the privacy of
anothers residence;
2. Meddling with or disturbing the
private life or family relations of
another;
3. Vexing or humiliating another on
account of his religious beliefs,
lowly station in life, place of birth,
physical defect, or other personal
condition;
4. Intriguing to cause another to be
alienated from his friends (Art. 26,
NCC).
5


Institute of Law
the goods, business, or services

of another. (RA No. 166);
7. The making of goods so as to
deceive purchasers. (E. Spenser
and Co. v. Hesslein, 54 Phil. 224);
8. Selling goods above the maximum
prices set by the State. (Ayuda v.
People, et al, L-6149-50, April 12,
1954)
ART. 31.
Obligation not Arising from a Crime
Independent Civil Action one that is
brought distinctly and separately from a
criminal case allowed for considerations of
public policy, because the proof needed
for civil cases is less than that required for
criminal cases; but, with the injunction in
general that success in financially
recovering in one case should prevent a
recovery of damages in the other.(Paras)
Art. 29
Instances When Civil Action Is Proper
Despite Acquittal In A Criminal Case
Instances When The Law Grants An

Independent Civil Action
1. Art. 32 breach of constitutional
and other rights;
2. Art. 33 defamation, fraud,
physical injuries;
3. Art. 34 refusal or failure of city
or municipal police officer to give
protection; and
4. Art. 2177 quasi-delict or culpa
aquiliana. (Paras)
1. When the acquittal is based on

reasonable doubt.
(PNB v.
Catipon, 98 Phil. 286);
2. Where
the
court
expressly
declares that the liability of the
accused is not criminal but only
civil in nature. (De Guzman v.
Alvia, 96 Phil. 558);
3. Where the civil liability does not
arise from or is not based upon
the criminal act from which the
accused was acquitted. (Castro v.
CIR, 4 SCRA 1093)
Art. 32
Liability For Violation Of Constitutional
Civil Liberties
Acquittal Which Bars Civil Action

(Keyword: AE)
1. When the accused is not the
author of the crime;
2. When the crime (on which the civil
action ex delicto is based) did not
exist (Albornoz v. Albornoz, 98
Phil. 785).
Persons Who Could Be Liable

1. Any public officer or employee;
2. Any private individual even if he
be in good faith.
The precise purpose of the article
is to eliminate the defense of good
faith, otherwise the main reason for
the article would be lost. (Dr. Bocobo)
Art. 30.
Civil
Liability Arising
From
Unprosecuted Criminal Offense
Note: Judges are not liable unless

the act or omission is a crime. (e.g.
Knowingly rendering an unjust judgment)
(Art. 32, last par., NCC)
an
It is an established doctrine that

prosecution of a criminal action to a
successful conviction of the accused
is not a condition precedent to the
bringing of a civil action for damages
(Rillon v. Rillon, (S.C.) 58 O.G. 1097).
Damages for the death of a person

have been awarded in civil cases
without previous criminal prosecution
(Manzanares v. Moreta, 38 Phil. 821).
The civil action is different from an

independent civil action which could
be prosecuted during the pendency of
the criminal action subject only to the
limitation that there shall be no double
recovery of damages (Art. 2177,
NCC).
Art. 33 (1981 Bar)

Independent
Civil
Defamation, Fraud,
Injuries
(Keyword: DFP)
Action
For
And Physical
1. Defamation (or libel or slander or

intrigue against honor);
2. Fraud (or estafa or swindling); and
3. Physical injuries consummated,
frustrated,
and
attempted
homicide (Dulay v. CA, GR
108017, April 3, 1995), murder,
parricide,
and
infanticide
(Carandang v. Santiago, 51 O.G.
2878, L-8238, May 25, 1955)


Institute of Law
Note: The three terms are used in their

generic specifications.
The outcome or result of the criminal

case, whether an acquittal or
conviction, is inconsequential and will
be of no moment in a civil action for
damages based on Art. 33, NCC.
(Diong Bi Chu vs. CA, 192 SCRA 554,
(1990).
The offended party cannot intervene in

the criminal case, either personally or
through a private prosecutor, if he had
filed a separate civil case (Gorospe v.
Gatmaitan, 98 Phil. 600).
If the offended party intervened in the

criminal case, he cannot later file a
civil action to recover moral and
exemplary damages. The judgment in
the criminal case bars the civil action
under Art. 33 (Roa v. Dela Cruz, 107
Phil. 8).
Art. 36. (1988 Bar)

Prejudicial Question a question that
arises in a case the resolution of which is
a logical antecedent to the issue involved
therein and the cognizance of which
pertains to another tribunal; it is
determinative of the case before the court
and jurisdiction to pass upon the same is
lodged in another tribunal. (FortichCeldran v. Celdran, 19 SCRA 502)
- It is a question which must be
decided first before a criminal action may
be instituted or may proceed because a
decision therein is vital to the judgment in
the criminal case. (Paras)
Note: While a prejudicial question usually
refers to a civil case, it is also possible that
an issue in an administrative case (e.g.
before the Land Tenure Administration)
may serve as a prejudicial question in a
civil case (e.g. ejectment proceeding).
(See Quiambao v. Osorio, March 16,
1988)
When the criminal action is instituted,

the civil action for the recovery of civil
liability is impliedly instituted unless
the offended party: (Keyword: WIR)
a
b
c
independent civil actions. (Arts.

32, 33, 34, NCC); and
3. Prejudicial question (Art 36, NCC).
waives the civil action; or

reserves his right to institute it
separately; or
institutes the civil action prior
to the criminal action. (Rule
111, Sec. 1, Revised Rules of
Criminal Procedure)
The reservation of the right to institute

the separate civil actions shall be
made before the prosecution starts to
present its evidence and under
circumstances affording the offended
party a reasonable opportunity to
make such reservation. (Supra.)
EXCEPTIONS To The Rule That Once A

Criminal Action Has Been Commenced,
The Civil Action For Damages Arising
Therefrom Shall Be Suspended
(Keyword: IPO)
1. When the civil action is based on
obligation not arising from the act
or omission complained of as
felony (Art. 31, NCC);
2. When the law grants the injured
party the right to institute
A prejudicial question can be

raised during the preliminary
investigation or during the trial but
before the prosecution had rested
its case. (Rule 111, Sec. 5,
Revised Rules on Criminal
Procedure)
It is the defendant who can invoke

or seek the suspension of the
criminal case due to the existence
of a prejudicial question and not
the prosecutor especially after he
had presented the evidence for
the prosecution. It is unfair to the
accused who is entitled to a
speedy trial. (People v. Villamor, 4
SCRA 482)
Independent civil actions are not

prejudicial questions to the
criminal cases to which they are
related.
They
can
proceed
independently of the criminal
cases. (Rojas v. People, 57 SCRA
243)


Institute of Law
1.
2.
3.
4.
Elements Of a Prejudicial Question

(Keyword: ID)
1. The civil action involves an issue similar
or intimately related to the issue raised in
the criminal action; and
2. The resolution of such issue determines
whether or not the criminal action may
proceed (Rule 111, Sec. 7, supra.).
5.
6.
7.
8.
9.
10.
PERSONS
Person any being, natural or artificial,
JURIDICAL
CAPACITY
Fitness to be the
subject of legal
relations
Passive
Power to do acts with

legal effects
Inherent
Merely acquired
Lost only through

death
Lost through death

and other causes
Can exist without

capacity to act
Cannot exist without

juridical capacity
Cannot be limited or
restricted
Can be restricted,
modified or limited
CAPACITY TO ACT
Minority;
Insanity or Imbecility;
State of being Deaf-mute;
Prodigality - the state of
squandering money or property
with a morbid desire to prejudice
the heirs of a person. (Martinez v.
Martinez, 1 Phil. 182);
Absence;
Civil Interdiction;
Family Relations;
Alienage;
Trusteeship;
Insolvency. (Arts. 38 and 39,
NCC)
Effects Of Civil Interdiction

- Deprivation of: (Keyword: DGMP)
1. Parental or marital authority;
2. The right to be the guardian of the
person and property of a ward;
3. The right to dispose of his
property by acts inter vivos;
4. The right to manage his own
property. (Art. 34, RPC)
Active
Note: The penalty of civil interdiction is

given to a criminal punished by
imprisonment for 12 years and 1 day or
more. (Art. 41, RPC)
capable of possessing legal rights and

obligations. (Sanchez Roman)
ART 41 (1981 Bar)

Birth For Purposes Of Attaining Civil
Personality
Two Kinds Of Persons (Keyword: NJ)

1. Natural Persons human beings
created by God through the
intervention of the parents; and
2. Juridical Persons those
created by law. (Supra.)
GENERAL RULE: For civil purposes, a

fetus is considered born if it is alive at the
time of complete separation from maternal
womb (i.e. when the umbilical cord is cut).
ART. 37
Civil
Personality the external
manifestation of either juridical capacity or
capacity to act; may be defined as the
aptitude of being the subject of rights and
obligations. (Supra.)
Birth determines personality but
the conceived child is considered
born for all purposes that are
favorable to it, provided that it is
born later with the conditions
specified by the law. (Art. 40,
NCC) (1996 Bar)
EXCEPTION: If the fetus had an intrauterine life of less than 7 months, it is not
deemed born if it dies within 24 hours after
complete delivery from maternal womb.
(Art. 41, NCC)
ART. 42
Death Extinguishes Civil Personality
What Determines The Effects Of Death
(Keyword: CLW)
1. Law;
2. Contract; and
3. Will. (Art. 43, NCC)
Art. 38 And Art. 39 (1985 Bar)

Restrictions, Limitations or
Modifications On Capacity To Act
(Keyword: MIDPACFATI)
Other Legal Effects of Death

1. The right to support ends;


Institute of Law
2. A marriage, whether voidable or

valid, also ends;
3. The tenure of public office ends;
4. The property or estate left should
be subject to the tax in generally
the same manner as if the owner
were alive. (Testate Estate of
Fernandez, L-9441, Sept. 25,
1956); and
5. If a person dies after he has
authorized another to sell the
formers property, the sale after
such death is not valid, if made by
the agent with knowledge of the
principals death. This is true even
if the buyer be in good faith.
(Rallos v. Felix Go Chan and Sons
Realty Corp., L- 24332, Jan. 3,
1978)
5. If one be under 15 or over 60, and

the other between those ages, the
latter is presumed to have
survived. (Rule 131, Sec. (jj),
Revised Rules of Court)
Classification Of Juridical Persons
(Keyword: PRES)
1. State and its political subdivisions;
2. Other corporations, institutions
and entities for public interest and
purpose created by law;
3. Corporations, partnerships and
associations for private interests
or purpose to which law grants
juridical personality (Art. 44,
NCC);
4. Roman Catholic Church (Barlin
vs. Ramirez, 7 Phil 41);
5. Estate of deceased person
(Limjuco vs. Intestate estate of
Fragante, 80 Phil. 776).
Art. 43
Presumption On Survivorship - If there
is a doubt, as between two or more
persons who are called to succeed each
other, as to which of them died first,
whoever alleges the death of one prior to
the other, shall prove the same; in the
absence of proof, it is presumed that they
died at the same time and there shall be
no transmission of rights from one to the
other. (Art. 43, NCC)
Art. 46
Rights Of Juridical Persons
(Keyword: PAO)
1. To bring civil or criminal actions;
2. To acquire and possess property
of all kinds;
3. To incur obligations. (Art. 46,
NCC)
Note: The above presumption applies only

if the following conditions are present:
1. The parties are heirs to one
another such as father and son
(without issue); and
2. There is no proof that one died
ahead of the other such as when
an airplane where the parties are
passengers exploded in the sky
with no survivors. (Pineda)
FAMILY RELATIONS
Marriage
(Keyword: SFG)
An inviolable social institution;
Foundation of the family;
Its nature, consequences and
incidents are governed by law and
not subject to stipulation except
marriage settlement may fix
property relations. (Art. 1, FC)
Rules On Presumed Survivorship

(Based On The Strength, And Age Of
The Sexes)
1. If both were under the age of 15
years, the older is presumed to
have survived;
2. If both were above the age of 60,
the younger is presumed to have
survived;
3. If one be under fifteen and the
other above 60, the former is
presumed to have survived;
4. If both be over 15 and under 60,
and the sexes be different, the
male is presumed to have
survived; if the sexes be the
same, then the older;
9


Institute of Law
MARRIAGE
1. Both a contract
and a social
Institution
2. Nature,
consequences and
incidents are
governed by law
(exception:
marriage settlement
provisions)
3. Can be dissolved
only by death or
annulment
ART. 2
Essential requisites of a valid marriage
(Keyword: Leg-Con)
1. Legal capacity of the contracting
parties who must be a male and a
female; and
2. Consent freely given in the
presence of the solemnizing
officer.
Art. 3
Formal Requisites of Marriage
(Keyword: A-Li-Ce)
1. Authority of solemnizing officer;
2. Valid marriage license (subject to
exceptions); and
3. Marriage ceremony which takes
place with the appearance of the
contracting parties before the
solemnizing officer and their
personal declaration that they take
each other as husband and wife in
the presence of not less than 2
witnesses of legal age.
ORDINARY
CONTRACTS
1. Merely a contract
2. Agreement
depend primarily
on stipulations
entered into by
parties
3. Can be ended by
mutual agreement
and by other legal
causes
2. Military commander of a unit (only

in articulo mortis);
3. Consul-general, consul, or viceconsul;
4. Incumbent
member
of
the
Judiciary;
5. Priest, rabbi, imam or minister of
any church or religious sect;
6. Ship Captain or airplane chief (in
articulo mortis). (Art. 7, FC)
Art. 8
Solemnization Of Marriage
Art. 4
Effects Of Absence, Defect Or
Irregularity In The Requisites Of
Marriage
1. Absence Of Essential Or Formal
Requisites marriage is VOID AB
INITIO, except as stated in Article
35(2) of the Family Code where
marriage was contracted with
either or both parties believing in
good faith that the solemnizing
officer had the legal authority to do
so. (Art. 4, 1st par., FC.)
2. Defect In Essential Requisites
marriage is VOIDABLE. (Art. 4,
2nd par., FC);
3. Irregularity In Formal Requisites
marriage is VALID but will subject
the party or parties responsible for
the irregularity to civil, criminal
and/or administrative liability (Art.
4, 3rd par., FC).
GENERAL RULE: The marriage shall be

solemnized publicly in the chambers of the
judge or in open court, in the church,
chapel or temple, or in the office of the
consul-general, consul or vice-consul, as
the case may be. (Art. 8, NCC)
EXCEPTIONS: (Keyword: ARR)
1. In marriage in articulo mortis;
2. In marriages in remote places;
3. When both of the parties request
the solemnizing officer that their
marriage be solemnized in some
other place designated by them in
a sworn statement to that effect.
(Ibid.)
MARRIAGE
LICENSE
Essential
Requirement
Showing Consent
of State
Does not
Require
Registration
Art. 7
Persons
Qualified
To
Solemnize
Marriage
(Keyword: CMP)
1. Mayors (Sec. 444 (xviii) of RA No.
7160, The Local Government
Code)
MARRIAGE
CERTIFICATE
Not an essential
requirement
Mere evidence of
Marriage
Must be
Registered in
Local civil
Registrar
Marriages
Exempted
From
Marriage License Requirement
(Keyword: MORAL)
10

The

Institute of Law
1. Marriage in articulo mortis (Art.

27, FC);
2. Marriage in a remote place (Art.
28, FC);
3. Marriages between Muslims or
among members of ethnic cultural
communities who are married in
accordance with their customs
(Art. 33, FC);
4.
Legal ratification of marital
cohabitation (Art. 34, FC);
5. Marriage solemnized outside the
Philippines where no marriage
license is required. (See Art. 17,
NCC)
2. Persons between the Ages of 18

and 21; (Con-Cert)
a parental consent of father,
mother or surviving parent or
guardian or persons having
legal charge;
b certificate
duly
issued
showing that they have
undergone
marriage
counseling. (Art. 14, FC)
3. Persons between the Ages of 21
and 25;
a. parental advice of parents or
guardian;
b. certificate duly issued showing
that
they
have
undergone
marriage counseling. (Art. 15, FC)
4. Foreigners;
- a certificate of legal capacity to
contract marriage issued by
their diplomatic or consular official.
(Art. 21, FC)
5. Stateless persons or refugees
from other countries
- affidavit stating circumstances
showing capacity to contract
marriage. (Ibid.)
Note: When a divorce is obtained by the
alien spouse against his or her Filipino
spouse, the Filipino spouse shall also be
capacitated to remarry (Art. 26, par. 2, FC)
Article 26, par.2 applies also to a nonmixed marriage; Rep. v. Orbecido, Oct. 5,
2005).
ART. 20
Life of a Marriage License
The license shall be valid in any part
of the Philippines for a period of 120 days
from the date of issue, and shall be
deemed automatically cancelled at the
expiration of said period. (Art. 20, FC)
ART. 34
Ratification of Marital Cohabitation
Requisites for Ratification of Marital
Cohabitation
1. The man and woman must have
been living together as husband
and wife for at least five years
before the marriage;
2. The parties must have no legal
impediment to marry each other;
3. The fact of absence of legal
impediment must be present at
the time of marriage, and during
the 5 year cohabitation;
4. The parties must execute an
affidavit stating that they have
lived together for at least 5 years;
5. The solemnizing officer must
execute a sworn statement that he
ascertained the qualifications of
the parties and that he found no
legal impediment. (Manzano v.
Judge Sanchez, A.M. No. MTJoo-1329, March 8, 2001)
ART. 36 (2002 Bar)

Psychological Incapacity the condition
of a person who does not have the mind,
will, and heart for the performance of
marital obligations. (Dr. Gerardo Ty
Veloso, Questions and Answers on
Psychological Incapacity as Ground for
Marriage Annulment.)
Special Or Additional Requisites For

The Issuance of Marriage License
1. Persons previously married;
(Ju-DE)
a judicial decree of annulment
or nullity of previous marriage;
b furnish death certificate of
deceased spouse. (Art. 13,
FC)
This
incapacity
need
not
necessarily be manifested before
or during the marriage although it
is a basic requirement that the
psychological defect be existing
during the marriage. (Art. 36, FC)
Essential marital obligations are
set forth under Art. 68 which
provides that the husband and
wife are obliged to live together,
observe mutual love, respect and
fidelity, and render mutual help
and support.
Psychological incapacity as a
ground for declaration of nullity of
11


Institute of Law
marriage is not dependent upon a

physicians examination. It is
enough that the three basic
Psychological
Incapacity
This refers to the
spouses lack of
willingness to
perform the essential
obligations in marriage
although sexually
potent.
Physical Incapacity
This refers to sexual
impotence or to the
physical
inability of a spouse to
perform sexual act.
It is a ground for the

declaration of nullity of
a marriage for being
void.
It is a ground for
annulment of marriage
for being voidable.
Action on this ground

does not prescribe.
Action on this ground

prescribes 5 years
after the marriage.
Effect on
property
There is no
conjugal
partnership
(only a coownership).
How
marriage is
impugned
Directly or
collaterally
Only directly
Imprescriptibl
e
Within 5
years from
celebration of
marriage,
except if
there is fraud.
Period will be
counted from
discovery of
fraud.
Prescriptive
period
requirements mandated in Santos

v. CA (240 SCRA 20) that it be
characterized by:
a gravity;
b juridical antecedence; and
c incurability be present.
Judicial
declaration
Nature
Susceptibility
of
convalidation
Effect on
property
Distinction
between
Psychological
Incapacity and Physical Incapacity
Effect on
children
Distinction between Void and Voidable

Marriages
Nature
Effect on
children
Susceptibility
of
convalidation
VOID
MARRIAGES
Non-existent
from
solemnization
Illegitimate
(except under
Article 36 and
53)
Can never be
convalidated
Judicial
declaration
How
marriage is
impugned
VOIDABLE
MARRIAGES
Valid until
annulled
Legitimate
Prescriptive
period
Can be
convalidated
by
cohabitation
Of parties
Absolute
community
property
except if
other
property
regime was
agreed upon.
Necessary
even if void
Non-existent
from
solemnization
Can never be
convalidated
There is no
conjugal
partnership
(only a coownership).
Illegitimate
(except under
Article 36 and
53)
Necessary
even if void
12
Valid until
annulled
Can be
convalidated
by
cohabitation
of parties
Absolute
community
property
except if
other
property
regime was
agreed upon.
Legitimate
Necessary
Directly or
collaterally
Only directly
Imprescriptibl
e
Within 5
years from
celebration of
marriage,
except if
there is fraud.
Period will be
counted from
discovery of
fraud.
Void Marriages
(Keyword: BILAMPS)
Necessary

Institute of Law
1. Subsequent marriages that are

void under Art. 53 (i.e., failure to
register the judicial partition of
properties and the delivery of
presumptive legitimes of the
spouses children);
2. No authority of solemnizing officer,
except when one or both parties
believed in good faith that the
solemnizing officer has authority;
3. Solemnized
without
license,
except those exempted from the
requirement of marriage license;
4. Bigamous
or
polygamous
marriages except those contracted
under Art 41 of FC;
5. Mistake in the identity of one of
the contracting parties;
6. Contracted by a psychologically
incapacitated person at the time of
celebration of marriage (Art 36
FC);
7. Contracted by any party below 18
years of age, even if with parental
consent;
8. Those that are void by reason of
public policy (Art. 38 FC); and
9. Incestuous marriages (Art. 37
FC).
Effects of Termination of Subsequent

Marriage
1. Subsequent marriage contracted
in good faith by both spouses
a.
Children of 2nd marriage
conceived prior to termination are
considered legitimate (Art. 43 [1],
FC);
b.
Absolute community of
property or conjugal partnership
shall be dissolved and liquidated
in accordance with FC (Art. 43 [2],
FC); and
c.
Donations by reason of
marriage shall remain valid (Art.
43[3], FC).
1. That the absentee spouse has

been missing for 4 consecutive
years, or two consecutive years, if
the
disappearance
occurred
where there is danger of death
under the circumstances laid
down in Art. 391, NCC;
2. That the present spouse files a
summary proceeding for the
declaration of presumptive death
of the deceased;
3. That the present spouse has a
well-founded belief that the
absentee is dead; and
4. That the present spouse wishes to
remarry (Republic v. Nolasco,
G.R. No. 94053, March 17, 1993).

by one party in bad faith
a. Children of 2nd marriage
conceived prior to termination
are considered legitimate (Art.
43 [1], FC);
b. Absolute
community
of
property
or
conjugal
partnership shall be dissolved
and liquidated (Art. 43 [2],
FC);
c. But spouse who contracted
marriage in bad faith will have
his share of net profit forfeited
in favor of common children,
and if any, children of guilty
spouse by previous marriage,
or in default of children,
innocent spouse (Art. 43 [2],
FC);
d. Donations in favor of a spouse
in bad faith shall be revoked
by operation of law (Art. 43[3],
FC);
e. Innocent spouse may revoke
designation of guilty spouse
as
beneficiary
in
any
insurance policy, even if
designation be irrevocable
(Art. 43[4], FC);
f. Spouse in bad faith shall be
disqualified to inherit from
innocent spouse by testate
and intestate succession (Art.
43[5], FC).
Note: Subsequent marriage referred to in

Art. 41 is automatically terminated by the
recording of an affidavit of reappearance,
unless previous marriage has been
annulled or declared void ab initio. (Art.
41, FC)

by both spouses in bad faith
a. Marriage void ab initio;
b. Donations by reason of
marriage shall be revoked by
operation of law;
Art. 41
Requisites For The Declaration Of
Presumptive Death Of Spouse Under
Art. 41 (Keyword: SWRM)
13


Institute of Law
homosexuality
or
lesbianism
existing at the time of the
marriage. (Art. 46, FC)
c. Testamentary
disposition
made by one in favor of
another shall also be revoked
by operation of law (Art. 44,
FC).
Art. 47
Persons Who May File For Annulment
And Their Corresponding Prescriptive
Periods
Grounds For Annulment Of Marriage

(Keyword: FUNFIS)
1. Fraud (Unless party afterwards

2.
3.
4.
5.
6.
Ground for
Annulment
with full knowledge of fraud

cohabited with the other);
Unsoundness of mind (Unless
party after coming to reason,
freely cohabited with the other);
Non-age (unless after attaining
age of 21, party freely cohabited
with the other);
Force, intimidation and undue
influence (unless same having
disappeared or ceased, such party
thereafter freely cohabited with the
other);
Impotence (refers to lack of power
of copulation and not mere
sterility);
Sexually Transmitted Disease
(found to be serious and appears
to be incurable) (Art 45, FC)
Who can
file action
Prescriptiv
e period
(1) Party
underage
Within 5yrs.
After 21y/o
(2)Parent or
guardian
Before 21
y/o
Fraud
The injured
party
Within 5yrs.
from
discovery of
fraud
Force,
intmidation
, or undue
influence
The injured
party
Within 5yrs.
from
cessation of
cause
Impotence
of one party
The potent
party
Within 5yrs.
after
marriage
Serious
sexually
transmissi
ble disease
The healthy
party
Within 5yrs.
after
marriage
Lack of
parental
consent
Doctrine Of Triennial Cohabitation

A presumption that the husband is
impotent if after 3 years of marriage
the wife is still a virgin and suffers no
anatomical defects;
Applied in some jurisdiction but in the
Philippines, there is yet no case
stating this presumption. (Tompkins v.
Tompkins, 92 N.J. eq. 113, 111, Atl.
599)
Insanity of
one party
(1) The
sane
spouse
(2)
Guardian of
insane
spouse
(3) Insane
spouse
Art. 46
Acts That Constitute Fraud Under Art.
45 (Keyword: CAPS) (1978 Bar)
1. Non-disclosure of a previous
conviction by final judgment of the
other party of a crime involving
moral turpitude;
2. Concealment by the wife of the
fact that at the time of the
marriage, she was pregnant by a
man other than her husband;
3. Concealment of a sexually
transmissible disease, regardless
of its nature, existing at the time of
the marriage; or
4. Concealment of dug addiction,
habitual
alcoholism,
or
Convalidati
on or
Ratification
Free
cohabitation
after
reaching
21.
Free
cohabitation
after
knowledge
of fraud.
Free
cohabitation
after cause
has
disappeare
d.
Cannot be
ratified but
action
prescribes.
Cannot be
ratified but
action
prescribes.
Before
death of
other party
-doDuring lucid
interval or
after
regaining
sanity, also
before
death of
other party
Free
cohabitation
after insane
regains
sanity.
Effects Of Annulment And Declaration

Of Nullity Of Marriage
1. One party is in bad faith
a. Absolute
community
of
property
or
conjugal
partnership shall be dissolved
and liquidated but the spouse
who contracted marriage in
bad faith will have his share of
the net profit forfeited in favor
of common children, if any,
children of guilty spouse by
previous marriage, or in
default
of
children,
the
14


Institute of Law
innocent spouse (Art. 43,

par.2, FC);
b. Donation in favor of spouse in
bad faith will be revoked by
operation of law (Art. 43,
par.3, FC);
c. Innocent spouse may revoke
the designation of guilty
spouse as beneficiary in
insurance policy even if
designation is irrevocable (Art.
43, par.4, FC);
d. Spouse in bad faith shall be
disqualified to inherit from
innocent spouse by testate
and intestate succession (Art.
43, par.5, FC);
3.
4.
5.
6.
7.
8.
2. Both parties in bad faith

a. Marriage void ab initio;
b. Donations by reason of
marriage shall be revoked by
operation of law; and
c. Testamentary
disposition
made by one in favor of the
other is also revoked by
operation of law. (Art. 44, FC)
(a) The cause for

annulment must exist
at the time of the
marriage.
LEGAL
SEPARATION
(a) The cause for
legal separation
arises after the
marriage celebration.
(b) There are seven

grounds for
annulment.
(b) There are ten

grounds for legal
separation.
(c) Annulment
dissolves the marriage
bond; the parties are
free to marry again.
(c) The marriage

remains.
(d) From the legal

angle of Private
International Law, the
grounds are generally
those given in the lex
loci celebrationis (by
implications from
Art. 71, NCC)
(d) From said angle,

the grounds are
given by the
NATIONAL LAW,
not the lex loci
celebrationis for in
legal separation, the
very validity of the
marriage itself is
NOT questioned,
unlike in the case of
annulment.
ANNULMENT
9.
10.
whether in the Philippines or

abroad;
Abandonment of petitioner by
respondent
without
justifiable
cause for more than one year;
Physical
violence
or
moral
pressure to compel petitioner to
change
religion
or
political
affiliation;
Final
judgment
sentencing
respondent to imprisonment of
more than 6 years even if
pardoned;
Attempt of respondent against Life
of petitioner;
Sexual infidelity or perversion;
Lesbianism or homosexuality of
respondent;
Attempt of respondent to corrupt
or induce petitioner, a common
child or child of petitioner to
engage
in
prostitution
or
connivance in such corruption or
inducement;
Repeated physical violence or
grossly abusive conduct directed
against petitioner, a common
child, or child of petitioner. (Art.
55, FC)
Art. 56
Grounds For Denying Legal Separation
(Keyword: C4MP)
1. Condonation of offense or act
complained of;
2. Consent given in commission of
offense or act complained of;
3. Connivance between parties;
4. Action barred by Prescription;
5. Both parties have given Ground
for
LS
(Mutual
guilt
or
Recrimination);
6. Collusion between parties. (Art.
56, FC)
Recrimination - a counter-charge in a suit
for divorce or legal separation that the
complainant is also guilty of an offense
constituting a ground for divorce or legal
separation. (Blacks Law Dictionary)
Note: The prescriptive period for the filing
of an action for legal separation is 5 years
from occurrence of cause. (Art. 57, FC)
Art. 55
Grounds For Legal Separation
(Keyword: BRA FLAPS) (1975 Bar)
1. Drug
addiction
or
habitual
alcoholism of respondent;
2. Contracting of respondent of
subsequent bigamous marriage
Cooling-Off Period 6-month period

prior to the start of trial which is provided
by law to enable parties to cool off for
possible reconciliation. (Art. 58, FC)
15


Institute of Law
Effects Of Filing Petition For Legal

Separation:
1. Spouses can live separately from
each other;
before legal separation. (Art. 372,

NCC)
Note: Action to revoke donation must be
brought within 5 years from the decree of
legal separation. (Art. 64, par.2, FC)
2. The administration of the common

properties shall be given to either of
the spouses or to a 3rd person as is
best for the interests of the community.
(Art. 61, FC);
Art. 66
Effects Of Reconciliation
1. Legal separation proceedings, if
still pending, shall be terminated in
whatever stage;
2. Final decree of legal separation
shall be set aside, but separation
of property and any forfeiture of
share already effected shall
subsist, unless spouses agree to
revive their former property regime
or adopt any other regime. (Art.
66, FC);
3. Joint custody over the children is
restored.
3. In the absence of a written agreement

of the spouses, the court shall provide
for the support between the spouses
and the custody and support of the
common children, taking into account
the welfare of the children and their
choice of the parent with whom they
wish to remain. (Art. 62, FC);
Art. 63
Effects Of Decree Of Legal Separation
Art. 68
Personal Obligation Of Husband And
Wife: (Keyword: LLH)
1. Spouses
entitled
to
live
separately, but marriage bonds
not severed;
2. Absolute community or conjugal
partnership
dissolved
and
liquidated but offending spouse
shall have no right to any share of
net profits earned which shall be
forfeited in favor of common child,
child of offending spouse by
previous marriage, or in default
thereof innocent spouse;
3. Custody of minor children shall be
awarded to innocent spouse;
4. Offending spouse disqualified to
inherit from innocent spouse by
intestate succession. Moreover,
provisions in favor of offending
spouse in the will of innocent
spouse revoked by operation of
law. (Art. 63, FC);
5. Innocent spouse may revoke
donations made by him or her in
favor of offending spouse;
6. Innocent spouse may revoke
designation of offending spouse
as beneficiary in any insurance
policy, even if such designation
were irrevocable. (Art. 64, FC):
7. Cessation of the obligation of
mutual support. (Art. 198, FC);
8. The wife shall continue using her
name and surname employed
1. Live together;
2. Observe mutual love, respect and
fidelity;
3. Render mutual help and support
(Art. 68, FC)
Instances Where Wife Is Justified To
Leave Husband And Thereby Select Her
Own Domicile Or Residence
(Keyword: TIMVC)
1. If the husband lives as a
vagabond having no fixed home.
(1 Manresa 329);
2. If the husband maltreats her.
(Goitia v. Campos Rueda, 35 Phil.
252)
3. If the husband insists on his
immoderate or barbaric demands
from
the
wife
for
sexual
intercourse (Goitia v. Campos
Rueda, supra);
4. If the wife is asked by the husband
to leave the conjugal place
threatening to use violence upon
her if she return home. (Garcia v.
Santiago, 53 Phil. 952);
5. If
the
husband
commits
concubinage and continuously
indulges in such illicit relationship.
(Dadivas v. Villanueva, 54 Phil.
92).
16


Institute of Law
Art 73
The Right Of Either Spouse To Engage
In A Profession Or Occupation Or To
Engage In Business
3. Must be generally confined to

property relations (9 Manresa 121122);
4. Must be in writing and signed by
the parties (Art. 77, FC); and
5. If made by minors, their parents
must consent by signing also; if by
other incompetents, such as those
under
civil
interdiction,
the
guardian must consent and also
sign. (See Arts. 78 and 79, FC).
GENERAL RULE: Either spouse may

exercise any legitimate profession,
occupation, business or activity. (Art. 73,
FC)
EXCEPTION: Any one of them may
object, provided the opposition is founded
on valid, serious, and moral grounds.
(Ibid.)
In case of disagreement, the court
shall decide whether or not
1. The objection is proper; and
2. Benefits have accrued to the
family prior to the objection or
thereafter.
i. If the benefits accrued PRIOR
to the objection, the resulting
obligation shall be enforced
against
the
community
property;
ii. If the benefit accrued
THEREAFTER,
such
obligation shall be enforced
against the separate property
of the spouse who has not
obtained consent. (Ibid.)
Registration Required For a Marriage

Settlement To Bind Third Persons
a. Local Civil Registry where the
marriage contract is recorded; and
b. Proper Registries of Property. (Art.
77, FC)
Matrimonial Property Regimes
(Keyword: ACSO)
1. Absolute Community of property
(ACP) (Chapter 3, Title IV, FC);
2. Conjugal Partnership of Gains
(CPG) (Chapter 4, Ibid.);
3. Complete or Absolute separation
of property (Chapter 6, Ibid.);
4. Any other regime within limits
provided by FC. (Art. 75, FC)
Art. 80
Law Governing The Property Relations
Of The Spouses
Art. 74
Property Relations Of The Spouses (In
Sequential Order)
(Keyword: SFL)
1. marriage settlements executed
before the marriage;
2. the provisions of the Family Code;
3. the local customs. (Art. 74, FC)
General Rule: In the absence of contrary

stipulation, property relations of spouses
shall be governed by Philippine laws,
regardless of place of celebration of
marriage. (Art. 80, FC)
Exceptions:
Marriage Settlement -a contract entered

into by persons who are about to be united
in marriage for the purpose of fixing the
condition of their property relations during
the marriage.
1. Where both spouses are aliens;

2. With respect to extrinsic validity of
contracts affecting property not
situated
in
Philippines
and
executed
in
country
where
property is located;
3. With respect to extrinsic validity of
contract entered into in the
Philippines but affecting property
situated in a foreign country
whose laws require different
formalities for its extrinsic validity.
(Ibid.)
Requisites Of Marriage Settlements

(Keyword: C3BW)
1. Contract and its modifications
must be made before marriage,
except conversion into complete
separation of property provided
judicially approved and not
prejudicial to creditors;
2. Must not contain provisions
contrary to law, good morals, good
customs, public order and public
policy (Art. 1306, NCC),or against
the dignity of either spouse;
System Of Absolute Community Of

Property (ACP)
17


Institute of Law
GENERAL RULE: Community property

shall consist of all the property owned by
the spouses at the time of the celebration
of the marriage or acquired thereafter.
b. the other
participate
Conjugal Partnership Of Gains (CPG)

Properties owned in common:
1. Income
of
their
separate
properties as well as their fruits
and income;
2. Everything acquired by them
through their efforts (whether
singly or jointly);
3. Everything acquired by them
through chance (winnings from
gambling, hidden treasure, those
acquired from hunting).

1. Property acquired during the marriage
by gratuitous title, including the fruits
and the income.
EXCEPTION TO THE EXCEPTION: If
the donor or grantor expressly
provides otherwise.
2. Property for personal and exclusive
use of either spouse.
EXCEPTION TO THE EXCEPTION:
Jewelry forms part of the community
property.
3. Property acquired before the marriage
by either spouse who has legitimate
descendants by a former marriage,
and the fruits and income of such
property.
PRESUMPTION: Property acquired
during the marriage is presumed to
belong to the community.
However, the same can be rebutted by

proving that such property is excluded.
Charges upon the ACP:

a.
support for the spouses
common children and legitimate
children of either spouse;
b.
obligation contracted by
the
designated
administrator
spouse for the purpose of
benefiting the community.
c.
obligations contracted by
both spouses;
d.
obligation contacted by 1
spouse with the consent of the
other;
e.
obligation contracted by 1
spouse without the consent of the
other, but only to the extent that
the family may have benefited.
f.
taxes and expenses for
the
preservation
upon
the
exclusive property of 1 of the
spouses which is used by the
family.
Administration of the community

property belongs to both spouses
jointly.
The other spouse may assume SOLE

POWERS OF ADMINISRATION when:
a. the other is incapacitated;
is unable to
(e.g. abroad)
Exclusive
Property
Of
Spouses:
(Keyword: PGRP)
1. Property brought to the marriage
as his or her own (paraphernalwife; capital-husband)
2. Those acquired by gratuitous title
3. Those acquired by right of
redemption, by barter or exchange
with the exclusive property of one
of the spouses;
4. Those
purchased
with
the
exclusive money of the spouses.
Rules Where An Improvement (Paid For
By Conjugal Funds) Is Introduced On
Land Exclusively Owned By One Of The
Spouses
a. Reverse accession (the land
follows the improvement) if the
cost of the improvement and the
increment,
i.e.
what
the
improvement contributes to the
increase in the value of the whole
thing, are more than the value of
the principal property at the time
of the improvement. Thus, the
entire property becomes conjugal.
b. Accession if the cost of the
improvement and the plus value
are less than the value of the
principal at the time of the
improvement. Thus, the entire
property becomes exclusive.
c. Ownership of the entire property
shall vest on the owner-spouse or
the partnership as the case may
be upon the reimbursement of the
improvement.
d. Reimbursement time is at the time
of the liquidation of the CPG.
e. The value to be paid is the value
at the time of the improvement
18


Institute of Law
Separation Of Property Of The

Spouses:
Can take place in ACP and CPG
By filing a petition:
a. both spouses
Voluntary dissolution
No need for causes
May be availed of only
b. one spouse (Keyword: CALASA)
Must be for a sufficient cause:
1. civil interdiction;
2. declaration of absence;
3. loss of parental authority
decreed by the court;
4. abandonment/ failure to
comply
with
family
obligations;
5. abuse
of
power
of
administration;
6. de facto separation of 1
year.
5. Delivery of
presumptive
legitimes in the
following instances:
a. if there is death of
one of the spouses,
the legitimes of the
heirs will no longer
be presumptive with
respect to the
deceased spouse
but actual;
b. legal separation;
c. annulment,
d. judicial separation
of property,
e. reappearance of
the absent spouse
which terminates the
2nd marriage.
Neither party can
encumber or dispose
by acts inter vivos
his or her share in
the
property
acquired
during
cohabitation without
the consent of the
other
until
after
termination of the
cohabitation.
Upon termination of
the union, the share
of a party shall
accrue to him or her
estate.
STEPS IN LIQUIDATION
APC
CPG
1. Inventory of:
1. Inventory of the
a. community
CPG assets.
property;
b. separate property
of the wife;
c. separate property
of the husband.
2. Payment of
2. Restitution of
community debts
advances made to
-first, pay out of
each spouse.
community assets;
-if not enough,
husband and wife
are solidarily liable
with their separate
property.
3. Delivery to each
3. Payment of debts
spouse his or her
to each spouse.
separate property, if
any.
4. Division of the net 4. Payment of
community assets.
obligations to 3rd
-with regard to the
persons.
family home:
a. to be adjudicated
to the spouse with
whom the majority of
the common children
choose to remain, or
b. according to
agreement of the
parties, or
c. court decision
There can be no
forfeiture of share of
a party in favor of
the common children
if there is no void
marriage and said
party acted in bad
faith.
5. Delivery of
exclusive
properties.
6. Payment of
losses and
deterioration of
movable belonging
to each spouse.
7. Delivery of
presumptive
legitimes.
8. Division of
profits(net
remainder of
conjugal
partnership
properties)
There
is
prohibition in
law.
no
the
Upon termination of
the union, the share
of a party who is
validly married shall
accrue
to
the
absolute community
or
conjugal
partnership existing
in said marriage.
There can be no
forfeiture if the party
in bad faith is
validly married to
another.
ART. 82
Donation Propter Nuptias a gift on
account of marriage (BLD).
(propter means before) wedding
gifts, but not all wedding gifts are
donations propter nuptias, for said
wedding gifts may come after the
celebration of marriage (Paras).
Requisites Of Donation Propter Nuptias
19


Institute of Law
1. Made before marriage;

2. Made in consideration of the
marriage; and
3. In favor of one or both of the
spouses.
Art. 147
Special Co-Ownership
Distinctions Between Art. 147 and Art.
148 (1978 Bar)
Note: If one of the requisites is not

complied with, it may still be valid as an
ordinary donation (provided that all other
essential requisites are complied with), but
not as a donation propter nuptias.
Property Regime Of Unions Without

Marriage: (Keyword: EMCC)
1. the man and the woman must
have capacity to marry each other;
2. the man and the woman cohabit;
3. the cohabitation is exclusive;
4. the man and the woman are NOT
married to each other or are
married but the marriage is void.
Art. 86
Instances When The Donor May Revoke
A Donation By Reason Of Marriage
(Keyword: JACCRIL)
1. When marriage is annulled, and
donee acted in bad faith;
2. If marriage is not celebrated;
Article 147
Parties live exclusively
with each other without
marriage or under a
void marriage.
Parties are capacitated
to marry each other.
Wages and salaries are
owned in equal shares.
Properties acquired by
both of them through
their work and industry
are governed by the
rules on co-ownership.
Even if the contribution
is not actual but
consists only of efforts
exerted in the care and
maintenance of the
family and household,
the
same
is
still
considered
joint
contribution.
Coverage:
a. wages and salaries of either man
and the woman;
b. property acquired through work or
industry of either or both
Article 148
Parties do not live
exclusively with each
other as both or one of
them is married to
another.
Both or one of them is
not
capacitated
to
marry.
Ownership of wages
and salaries is not
provided.
(Salaries of the party
married
to
another
belong to the existing
ACP or CPG).
Only
properties
acquired by both of
them
through
their
actual
joint
contributions shall be
owned in common in
proportion
to
their
respective
contributions.
If the partner did not acquire the

property directly, that partners efforts
must consist of the care and
maintenance of the family and of the
household in order for such party to
own of the acquired property.
Art. 151
Requirements For Suits Between
Members Of The Same Family To
Prosper (Keyword: CAF)
1. Earnest
efforts
towards
a
compromise have been made;
2. Such efforts have failed; and
3. The preceding requirements must
be alleged. (Art. 151, FC)
Note: If a stranger is a party to a case
between close relatives, there is no need
to assert or allege earnest efforts at a
compromise. (Magbalela v. Gonong, L44903, April 25, 1977)
Things Not Subject Of Compromise
(Keyword: CGJLSV)
1. civil status of a person;
2. jurisdiction of courts;
3. future support;
4. future legitime;
5. any ground for legal separation; and
6. validity of marriage or legal
separation. (Art. 151, FC)
3. Marriage is judicially declared null

and void;
4. When marriage takes place
without consent of the parents or
guardian as required by law;
5. When donee committed an act of
ingratitude as specified in the Civil
Code;
6. Upon legal separation, donee
being the guilty spouse;
7. If it is with a resolutory condition
and condition is complied with.
(Art. 86, FC)
ART. 153 (1989 Bar)

Family Home - the dwelling house where
the husband and wife and their family
reside and the land on which it is situated,
constituted jointly by them or by an
20


Institute of Law
unmarried head of the family (Art. 153,

FC.).
The family home is deemed
constituted on a house and lot from
the time it is occupied as a family
residence. From the time of its
constitution and so long as any of its
beneficiaries actually reside therein,
family home continues to be such.
(Ibid.)
There is no need to constitute the
family home judicially or extrajudicially as required under the Civil
Code. If the family actually resides in
the premises, it is, therefore, a family
home as contemplated by law. Thus,
the creditors should take the
necessary precautions to protect their
interest before extending credit to the
spouses or head of the family who
owns the home. (Manacop vs. CA,
G.R. No. 97898. Aug. 11 1977)
Classification Of Filiation
(Keyword: NA)
1. By
nature
(legitimate
illegitimate); and
2. By adoption. (Art. 163, FC)
or
ART. 164
Legitimate Child one conceived or born
during the marriage of the parents, unless
its status is impugned for causes provided
for in law. (Art. 164, FC)
Note: If there is no presumption about the
validity of the marriage, the child
concerned cannot invoke the presumption
of legitimacy. (Board of CID v. de la Rosa,
197 SCRA 853)
Artificial Insemination a medical
procedure by which the semen is
introduced into the vagina by means other
than copulation for the purpose of
procreation. (Pedro Solis, Legal Medicine,
p. 601)
Rules On Exemptions Of Family Home

From Execution, Forced Sale Or
Attachment.
Requisites For Legitimacy Of Test Tube

Babies Or Children Conceived Thru
Artificial Insemination
(Keyword: AWE)
GENERAL RULE: Family home is exempt

from execution, attachment and forced
sale. (Art. 153, FC.)
1. The parents must have authorized

or ratified such insemination;
2. In a written instrument;
3. Executed and signed by them
before the birth of the child. (Art.
164, FC)
EXCEPTIONS: (Keyword: CLMT)

1. non-payment of taxes;
2. debts incurred PRIOR to its
constitution as family home;
3. debts secured by mortgage on
family home; and
4. debts due to laborers, mechanics,
architects, builders, material men,
and others who have rendered
service or furnished materials for
construction of the building. (Art.
155, FC.)
Paternity the civil status relationship of

the father to the child;
Rules When A Woman Prematurely

Contracts Another Marriage Within (300
Days From The Termination Of The 1 st
One)
1. For the child to be considered the
child of the 1st husband:
i. the mother must have married
again within 300 days from the
termination
of
her
1st
marriage;
ii. the child must have been born
within the same 300 days after
the termination of the former
marriage of its mother;
iii. the child was born BEFORE
180
days
after
the
solemnization of its mothers
2nd marriage. (Art. 168, FC)
Filiation the civil status or relationship of

the child to the father or mother. (Paras)
2. For the child to be considered the

child of the 2nd husband:
Art. 157
Value Of Family Home To Be Exempt
(At The Time Of Constitution)
1. P300,000 for urban areas; and
2. P200,000 for rural areas. (Art.
157, FC.)
Art. 163
Paternity And Filiation
21


Institute of Law
1. the mother must have married

again within 300 days from the
termination of the marriage;
2. the child was born within the
same 300 days after the
termination of its mothers 1st
marriage; and
3. the child was born AFTER 180
days
following
the
solemnization of its mothers
2nd marriage. (Ibid.)
1.
if the child dies during MINORITY;

or
2. if the child dies during INSANITY;
or
3. if the heir will merely continue the
action. (Art. 173, FC)
Note: In the first two cases, the heirs shall
have a period of 5 years from the death
within which to institute the action. (Ibid.)
Arts. 171 And 172

Impugning The Legitimacy Of The Child
GENERAL RULE: Only the husband may
impugn the legitimacy of a child.
EXCEPTION: The heirs of the husband in
the following cases:
1. If the husband should die before
the expiration of the period fixed
for bringing his action;
2. If he should die after the filing of
the complaint without having
desisted therefrom; or
3. If the child was born after the
death of the husband. (Art. 171,
FC)
Period To Impugn The Legitimacy Of
The Child
1. If the husband or the heirs reside
in the city or municipality where
the birth took place or was
recorded 1 YEAR from
knowledge of the birth or its
recording in the civil register;
2. If do not reside therein 2
YEARS; or
3. If living abroad 3 YEARS
If the birth has been concealed or
was unknown to the husband or
his heirs, the period shall be
counted from the discovery or
knowledge of the birth or of the
fact of the registration of the birth,
whichever is earlier. (Art. 170, FC)
Art. 173
Action To Claim Legitimacy Of The
Child
GENERAL RULE: Only the child himself
may file the action.
Who are
considered as
legitimate or
illegitimate
child/children?
EXCEPTION: The heirs can do so:

(Keyword: CDD)
22

LEGITIMATE
Children conceived or born During a valid marriage.
As a result of artificial inseminati
provided that
BEFORE the artificial insemination:

Institute of Law
Proof of
filiation
Rights of
legitimate and
illegitimate
children
Both the H and W authorized

Who maysuch
insemination in a written
impugn
instrument
the
Or AFTER the artificial insemination:
legitimacy of the
The spouse who did child?
not authorize
the insemination ratified it in a written
instrument executed and signed by
both parties.
Before the judgment of annulment or
absolute nullity of marriage under Art. 36
has become final and executory.
During a subsequent marriage under
Arts. 41 and 53.
On what
grounds
Record of birth appearing
in the the
civil
register or a final judgment.legitimacy of the
mayinbea
Admission of legitimate child
filiation
impugned?
public document or a private handwritten
(1989
instrument and signed by
theBar)
parent
concerned.
In the absence of the foregoing, filiation may

be established by:
Open and continuous possession of the
status of a legitimate child; or
Any other means allowed by the Rules of
Court and special laws.
Right to bear the surname of the father
and the mother.
Right to receive support from their
parents, their ascendants, and in proper
When to impugn
cases, their brothers and sisters.
the legitimacy of
Right to be entitled to of the estate of
the child?
their parents as legitimes and other
successional rights.
1.
2.
3.
Who can claim
legitimacy or
illegitimacy?
When to claim
the status of
legitimacy or
illegitimacy?
The action to claim legitimacy may be brought

by the CHILD.
The child can claim legitimacy during his

or her lifetime.
Should the child die during minority or in
a state of insanity, the claim for
legitimacy shall be transmitted to the
heirs of the child
In this case, the heirs shall have 5 yrs. to
institute the action.
If the action was already commenced by
the child, the action shall survive the
death of either or both parties.
23

4.
Only the husband

The heirs of the husband only in the
cases:
1. If the husband should die before t
expiration of the period for bringi
his action
2. If he should die after the filing of t
complaint, without having desist
therefrom; or
3. If the child was born after the dea
of the husband.
Physical impossibility of the husband
have sexual intercourse with his w
within the first 120 days of the 300 da
which immediately preceded the birth
the child because of
1. Physical incapacity of the husband
2. H and W were living separately in
way that sexual intercourse
impossible.
3. Serious illness of the husba
which absolutely prevented sexu
intercourse.
Biological or other scientific reasons
In case of artificial insemination, t
written authorization or ratification
either parent was obtained throu
mistake, fraud, violence, intimidation
undue influence.
One year from the knowledge of t
birth or its recording in the civil registe
If the husband or his heirs should resi
in the city or municipality where the bir
took place or discovered.
Two year rule
If the husband or his heir do not resi
at the place of birth of the child or whe
it was recorded but reside in any part
the Philippines.
Three year rule
If the husband or any of his heir shou
live abroad.
If the birth of the child has be
concealed or was unknown to t
husband or his heirs, the period shall
counted from the discovery
knowledge of the birth of the child or t
registration of the birth of the chi
whichever is earlier.

Institute of Law
residence until the adoption

decree is entered;
c) That he/she has been certified
by his/her diplomatic or
consular
office
or
any
appropriate
government
agency that he/she has the
legal capacity to adopt in
his/her country;
d) That
his/her
government
allows the adoptee to enter
his/her country as his or her
adopted son/daughter;
e) Provided further that the
requirements on residency
and certification of the alien's
qualifications to adopt in
his/her country may be waived
for the following:
(1) A former Filipino citizen
who seeks to adopt a
relative within the 4th
degree of consanguinity
or affinity; or
(2) One who seeks to adopt
the
legitimate
son/daughter of his/her
Filipino spouse; or
(3) One who is married to a
Filipino citizen and seeks
to adopt jointly with
his/her spouse a relative
within the 4th degree of
consanguinity or affinity of
the Filipino spouse.
Art. 183
Adoption legal process pursuant to
state statute in which a childs legal rights
and duties toward his natural parents are
terminated and similar rights and duties
toward
his
adoptive
parents
are
substituted. (BLD)
the process of making a child,
whether related or not to the
adopter, possess in general, the
rights accorded to a legitimate
child (Prasnick v. Republic, 98
Phil. 665)
Domestic Adoption Act of 1998 (RA
8552)
Persons Qualified to Adopt (1976 Bar)
1. Any Filipino citizen;
a) Of legal age;
b) In possession of full civil
capacity and legal rights;
c) Of good moral character;
d) Has not been convicted of any
crime
involving
moral
turpitude;
e) Emotionally
and
psychologically capable of
caring for children;
f) At least 16 years older than
adoptee, and who is in a
position to support and care
for his/her children in keeping
with the means of the family.
3. The guardian with respect to the

ward after
a) termination
of
the
guardianship; and
b) clearance of his/her financial
accountabilities (Sec. 7, RA
8552
or
the
Domestic
Adoption Act of 1998)
Note: The requirement of 16-year

difference between the age of the adopter
and the adoptee does not apply when the
adopter is the biological parent of the
adoptee; or is the spouse of the adoptee's
parent.
Persons Qualified To Be Adopted

1. Any person below 18 years of age
who has been administratively or
judicially declared available for
adoption;
2. The legitimate son/daughter of
one spouse by the other spouse;
3. An illegitimate son/daughter by a
qualified adopter to improve
his/her status to that of legitimacy;
4. A person of legal age, if prior to
the adoption, said person has
been consistently considered and
treated by the adopter(s) as
his/her own child since minority;
2. Any alien possessing the same

qualifications as above stated for
Filipino nationals: provided,
a) That his or her country has
diplomatic relations with the
Republic of the Philippines;
b) That he/she has been living in
the Philippines for at least 3
continuous years prior to the
filing of the application for
adoption and maintains such
24


Institute of Law
5. A child whose adoption has been

previously rescinded; or
6. A child whose biological or
adoptive parent(s) has died.
Provided, that no proceedings
shall be initiated within 6 months
from the time of death of said
parents. (Sec. 8, RA 8552).
3.
Consent Necessary To The Adoption

The consent of the following to the
adoption is required:
1. The adoptee, if 10 years of age or
over;
2. The biological parents of the child,
if known, or the legal guardian, or
the
proper
government
instrumentality which has legal
custody of the child;
3. The legitimate and adopted
sons/daughters, 10 years of age
or over, of the adopter(s) and
adoptee, if any;
4. The illegitimate sons/daughters,
10 years of age or over, of the
adopter if living with said adopter
and the latters spouse, if any; and
5. The spouse, if any, of the person
adopting or to be adopted. (Sec.
9, RA 8552)
4.
5.
6.
vested in the adopters, except that

if the adopter is the spouse of the
parent by nature of the adopted,
parental
authority
over
the
adopted shall be exercised jointly
by both spouses;
The adopted shall remain an
intestate heir of his parents and
other blood relatives (Art. 189,
FC);
The adopted child shall be entitled
to all the rights and obligations
provided by law to legitimate
sons/daughters born to them
without discrimination of any kind;
The adoptee is entitled to love,
guidance, and support in keeping
with the means of the family (Sec.
17, RA 8552);
In legal and intestate succession,
the adopter and the adoptee shall
have
reciprocal
rights
of
succession without distinction
from legitimate filiation. (Sec. 18,
RA 8552)
Exceptions To The Rule On Joint

Adoption By Husband And Wife
1. If one spouse seeks to adopt the
legitimate son or daughter of the
other;
2. If one spouse seeks to adopt
his/her
own
illegitimate
son/daughter. Provided however,
that the other spouse has signified
his/her consent thereto; or
3. If the spouses are legally
separated from each other. (Sec.
7, RA 8552)
Persons Who May Not Be Adopted

1. A person of legal age, unless he
or she is a child by nature of the
adopter or his or her spouse, or,
prior to the adoption, said person
had been consistently considered
and treated by the adopter as his
or her own child during minority;
2. An alien with whose government
the Philippines has no diplomatic
relations; and
3. A person who has already been
adopted unless such adoption has
been previously revoked or
rescinded. (Art. 187, FC)
Grounds For Rescission Of The

Adoption
At the instance of the adoptee, or
with the assistance of the DSWD if the
adoptee be a minor or otherwise
incapacitated, a petition for rescission of
the adoption may be filed on the following
grounds: (Keyword: MASA)
1. Repeated physical and verbal
maltreatment by the adopter(s)
despite
having
undergone
counseling;
2. Abandonment and failure to
comply with parental obligations;
3. Attempt on the life of the adoptee;
or
4. Sexual assault or violence. (Sec.
19, RA 8552)
Rights of An Adopted Child

1. For civil purposes, the adopted
shall be deemed to be a legitimate
child of the adopters and both
shall acquire the reciprocal rights
and obligations arising from the
relationship of parent and child,
including the right of the adopted
to use the surname of the
adopters;
2. The parental authority of the
parents by nature over the
adopted shall terminate and be
25


Institute of Law
Effects Of Rescission Of Adoption

(Keyword: SCRP)
1. The parental authority of the
adoptees biological parent(s), if
known, or the legal custody of the
DSWD shall be restored if the
adoptee as still a minor or
incapacitated;
2. The
reciprocal
rights
and
obligations of the adopters and the
adoptee to each other shall be
extinguished;
3. Successional rights shall revert to
its status prior to adoption, but
only as of the date of judgment of
judicial rescission. Vested rights
acquired prior to judicial rescission
shall be respected;
4. The court shall order the Civil
Registrar to cancel the amended
certificate of the adoptee and
restore his/her original birth
certificate. (Sec. 20, RA 8552)
Persons Who Exercise Substitute

Parental Authority Over a Child (in the
order indicated)
(Keyword: GBC)
1. The surviving grandparent, as
provided in Art. 214;
2. The oldest brother or sister, over
21 years of age, unless unfit or
disqualified; and
3. The childs actual custodian, over
21 years of age, unless unfit or
disqualified. (Art. 216, FC)
ART. 228
Circumstances
That
Permanently
Terminate Parental Authority
1. Upon the death of the parents;
2. Upon the death of the child; or
3. Upon emancipation of the child.
(Art. 228, FC)
Circumstances
That
Warrant
Suspension Of Parental Authority
1. Upon conviction of the parent or
the person exercising the same of
a crime which carries with it the
penalty of civil interdiction (Art.
230, FC);
2. When the parent or the person
exercising parental authority,
(Keyword: CHLB)
a. Gives the child corrupting
orders, counsel or example;
b. Subjects the child or allows him
to be subjected to acts of
lasciviousness;
c. Compels the child to beg; or
d. Treats the child with excessive
harshness or cruelty. (Art. 231,
FC)
Inter-Country Adoption refers to 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.
(Sec. 3[a], RA No. 8043 or the InterCountry Adoption Act of 1995)
ART. 209
Parental Authority (Patria Potestas)
the sum total of the right of parents over
the persons and property of their children.
(2 Manresa 8)
Persons Who Exercise Parental
Authority Over a Minor
1. The father and the mother shall
jointly exercise parental authority
over the persons of their common
children. In case of disagreement,
the fathers decision shall prevail,
unless there is a judicial order to
the contrary. (Art. 211, FC);
2. In case of absence or death of
either parent, the parent present
shall continue exercising parental
authority over the children, unless
the court appoints another person
to be the guardian of the person or
property of the children. (Art. 212,
FC)
PRESCRIPTION
Prescription one acquires ownership
and other real rights through the lapse of
time in the manner and under the
conditions laid down by law, and in the
same way, rights and actions are lost. (Art.
1106, CC)
CLASSIFICATION OF PRESCRIPTION
I. ACQUISITIVE PRECRIPTION
1. Ordinary Prescription
Requisites: (Keyword: COCPGJ)
a) Capacity
to
acquire
by
prescription;
ART. 216
26


Institute of Law
b) The object must be susceptible of

prescription;
c) The possession must be in the
concept of an owner, public,
peaceful,
continuous
and
uninterrupted;
d) The possession must be in good
faith;
e) The possession must be by virtue
of a just title;
f) The period of possession must be
four (4) years if the object is
movable or ten (10) years if
immovable.
1. Natural - when through any cause,

the possession shall cease for more
than one year (Arts. 1120, 1121, CC).
If the natural interruption is for only
one year or less, the time elapsed
shall be counted in favor of the
prescription. (Art. 1122, CC).
2. Civil - when there is a judicial
summons to the possessor (Art. 1123,
CC). However, judicial summons shall
be deemed not to have been issued
and shall not give rise to interruption:
a) If it should be void for lack of
solemnities;
b) If the plaintiff desists from the
complaint
or
allow
the
proceedings to lapse; and
c) If the possessor should be
absolved from the complaint.
2. Extraordinary Prescription
Requisites:
a) The capacity to acquire by
prescription;
b) The object must be susceptible of
prescription;
c) The possession must be in the
concept of owner, public, peaceful,
continuous and uninterrupted;
d) The period of possession must be
eight (8) years if movable or thirty
(30) years if it is immovable.
In all of these cases, the period of the

interruption shall be counted for the
prescription. (Art. 1124, CC)
3. Express or tacit recognition by the
possessor of the owners right. (Art.
1125, CC)
Rules for computation of period of

possession
1. The present possessor may
complete the period necessary for
prescription
by
tacking
his
possession to that of his grantor or
predecessor in interest;
2. It is presumed that the present
possessor who was also the
possessor at a previous time, has
continued to be in possession
during the intervening time, unless
there is proof to the contrary
3. The 1st day shall be excluded and
the last day included. (Art. 1138,
CC)
PRESCRIPTION
Concerned with the
fact of delay
Deals with the effect

of the unreasonable.
Question or matter of
Question of inequity
time
Tacking of Possession possession of

present possessor shall be tacked or
added to the possession of his
predecessor-in-interest to complete the
period of prescription for the purpose of
acquiring ownership. (Art. 1138, CC)
LACHES
The right to prescription may be

waived or renounced under Article
1112 of Civil Code
Statutory
Not statutory
Applies at law
Applies in equity
Based on fixed time
Not based on fixed

time.
Prescription does not lie against

the government. Forest lands or forest
reserves are not capable of private
appropriation and possession thereof,
however long, cannot convert them
into private property. Subsequent
release of the land as alienable did not
cure any defect in the grant thereof. A
void act cannot be validated or ratified.
The subsequent release of the subject
land as alienable and disposable does
not cure any defect in the issuance of
the homestead patent nor validate the
grant. (REYES vs. CA 295 SCRA 296)
OBLIGATIONS AND CONTRACTS
II. EXTINCTIVE PRESCRIPTION

Modes of interruption of Period of
possession
I. OBLIGATIONS
27


Institute of Law
OBLIGATION
a juridical necessity to give, to do,

or not to do.
Requisites: (Keyword: PATO)

1. juridical or legal tie
2. active subject (obligee or creditor)
3. passive subject (obligor or
debtor)
4. fact,
prestation
or
service
constituting the object of the
obligation
Requisites: (Keyword: PLED)
1. it must be licit
2. it must be possible, physically &
juridically
3. it must be determinate or
determinable
4. it must have a possible equivalent
in money
1)
2)
3)
4)
5)
Determinate
Generic
1. compel specific
performance;
2. damages,
exclusive or in
addition to specific
performance;
3. entitlement to
fruits, interests from
the time the
obligation to deliver
arises.
1.ask for
performance of the
obligation
2. ask that the
obligation be
complied with at the
expense of the
debtor
3. damages in case
of breach
RIGHTS OF A CREDITOR
OBLIGATIONS OF THE DEBTOR
Determinate
Sources: (Keyword: LCQDQ)

Law
Contracts
Quasi-contracts
Delicts
Quasi-delicts
1. specific
performance;
Generic
1. deliver the thing
which is neither of
superior nor inferior
quality;
2. take care of the

2. damages in case
thing with the
of breach of the
proper diligence of a obligation by reason
good father of a
of delay, fraud,
family;
negligence or
contravention of the
tenor thereof.
3. deliver all
accessions and
accessories of the
thing even though
they may not have
been mentioned;
QUASI-CONTRACTS those
juridical relations arising from lawful,
voluntary and unilateral acts, based on
the principle that no one shall be
unjustly enriched or benefited at the
expense of another.
Principal Kinds of Quasicontracts:

1. Negotiorum
gestio
arises
whenever a person voluntarily takes
charge of the agency or management
of the business or property of another
without any power or authority from
the latter
2. Solutio indebiti arises whenever a
person unduly delivers a thing through
mistake to another who has no right to
demand it.
4. pay damages in
case of breach of the
obligation by reason
of
delay,
fraud,
negligence
or
contravention of the
tenor thereof.
NATURE OF OBLIGATIONS
1. Personal Obligations obligations to
do
a) Positive
b) Negative
2. Real Obligations obligations to give
a) Determinate or specific
b) Generic
28


Institute of Law
1) Obligation is demandable and

already liquidated
2) The debtor delays performance
3) The creditor requires performance
judicially or extra-judicially
EFFECTS OF BREACH
Positive Personal
Obligations
The creditor can:
(1) have the
obligation
performed or
executed at
the expense
of the
obligor;
(2) ask that
what has
been poorly
done be
undone;
(3) recover damages
because of breach of
the obligation (Art.
1167)
3 Kinds:
1. Mora solvendi delay of the debtor to
perform his obligation
2. Mora accipiendi delay of the creditor
to accept the delivery of the thing w/c is
the object of the obligation
3. Compensatio morae delay of the
parties in reciprocal obligation
Negative Personal
Obligations
The creditor can:
(1) have the
obligation undone at
the expense of the
obligor; and
(2) ask for
damages.(Art. 1168)
When incurred:
GENERAL RULE: There must be a
DEMAND (judicial or extra-judicial) before
delay may be incurred.
EXCEPTIONS: (SLENA)
1. stipulation/obligation or law expressly
so declares
2. time is of the essence
3. demand is useless as when obligor
has rendered beyond his power to
perform
4. there is acknowledgment of default
5. law
Cases where the remedy granted under

Art. 1168 is not available:
1) Where the effects of the act which is
forbidden, are definite in character
2) Where it would be physically or legally
impossible to undo what has been
undone because of the very nature of
the act itself or because of a provision
of law, or because of conflicting rights
of 3rd person
BREACH OF OBLIGATIONS
1. 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
debtor is liable for damages
There can be delay only in

positive obligations. There can be no
delay in negative obligations.
In reciprocal obligations one party
incurs in delay from the moment the
other party fulfills his obligation, while
he himself does not comply or is not
ready to comply in a proper manner
with what is incumbent upon him.
FRAUD
deliberate and intentional evasion

of the fulfillment of an obligation.
Incidental Fraud/
dolo incidente
(Art. 1170)
2. Involuntary debtor is unable to

comply with his obligation because of
fortuitous event
debtor is not liable for

damages
DEFAULT or DELAY
non-fulfillment of the obligation

with respect to time
Requisites: (Keyword: DDC)
Causal Fraud/
Dolo causante
(Art. 1338)
1. Present during the

performance of a preexisting
obligation
Present during the

time of birth of the
obligation
Purpose is to evade
the normal
fulfillment of the
obligation
Purpose is to secure
the consent of the
other to enter into a
contract
29


Institute of Law
3. Results in the
non-fulfillment or
breach of the
obligation
thing to 2 or more persons who do

not have the same interest (Art.
1165(3)).
Results in the
vitiation of consent
EFFECT OF FORTUITOUS EVENT
Determinate
4. Gives
rise to a
GivesGeneric
rise to a right of
Obligation
right Obligation
of the creditor to
an innocent
party
recover
damages
from
to
annul
the
contract
obligation is
obligation is not
the debtor
extinguished
extinguished based
REMEDIES
OF
CREDITOR
TO
PROTECT HIS CREDIT:
1) Exhaustion of debtors property
2) Accion
subrogatoria
to
be
subrogated to all the rights and
actions of the debtor save those which
are inherent in his person
3) Accion pauliana - impugn all the acts
w/c the debtor may have done to
defraud them.
2nd & 3rd remedies are subsidiary

to the first
on the rule that a

genus never perishes
NEGLIGENCE
omission of that diligence which is

required by the nature of the obligation
and
corresponds
with
the
circumstances of the persons, of the
time and of the place
DILIGENCE REQUIRED
(Keyword: ARG)
1. That agreed upon by the parties;
2. In the absence of stipulation, that
required by law in the particular case;
3. If both the contract and law are silent,
diligence of a good father of a family
GENERAL RULE: Rights acquired by

virtue of an obligation are transmissible in
character
EXCEPTIONS:
1) When they are not transmissible by
their very nature e.g. purely personal
right
2) When there is a stipulation of the
parties that they are not transmissible
3) Not transmissible by operation of law
FORTUITOUS EVENT
an event w/c could not be

foreseen or w/c though foreseen was
inevitable
PURE OBLIGATION
one
whose
effectivity
or
extinguishment does not depend upon
the fulfillment or non-fulfillment of a
condition or upon the expiration of a
term or period
Requisites: (Keyword: IIUPA)

1. cause is independent of the will of the
debtor
2. the event must be unforeseeable or
unavoidable
3. occurrence must be such as to render
it impossible for the debtor to fulfill his
obligation in a normal manner
4. debtor must be free from any
participation in
5. the aggravation of the injury resulting
to the creditor
CONDITIONAL OBLIGATION
one whose effectivity is

subordinated to the fulfillment or nonfulfillment of a future and uncertain
fact or 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 depends upon chance
and/or upon the will of a third person
GENERAL RULE: No liability in case of

fortuitous event.
EXCEPTIONS: (Keyword: SLND)
1. When expressly declared by law
E.g. Art. 552(2), 1165(3),

1268, 1942, 2147, 2148 and
2159 of the Civil Code.
2. When expressly declared by
stipulation or contract
3. When the nature of the obligation
requires the assumption of risk
4. When the obligor is in default or
has promised to deliver the same
30


Institute of Law
5. Mixed fulfillment of the condition

depends PARTLY upon chance and/or
the will of a third person
6. Impossible condition is not capable
of realization according to nature, law,
public policy or good customs
7. Positive condition involves the
performance of an act
8. Negative - condition involves the
omission of an act
9. Divisible condition is susceptible of
partial realization
10. Indivisible - condition is not
susceptible of partial realization
11. Conjunctive where there are
several conditions, all of which must
be realized
12. Alternative where there are several
conditions but only one must be
realized
1.
Before
the
fulfillment of the condition, the right which
the creditor has already acquired by virtue
of the obligation is subject to a threat of
extinction.
2.
Upon fulfillment of
the condition, the parties shall return to
each other what they received.
EFFECTS OF LOSS, DETERIORATION
AND
IMPROVEMENT
IN
REAL
OBLIGATIONS
1. Loss
a. without
debtors
fault
obligation is extinguished
b. with debtors fault debtor pays
damages
2. Deterioration
a. without
debtors
fault
impairment to be borne by the

creditor
b. with debtors fault creditor may
choose between the rescission of
the obligation and its fulfillment
with indemnity for damages in
either case
3. Improvement
a. by the things nature or by time
improvement shall inure to the
benefit of the creditor
b. at the debtors expense debtor
shall have no other right than that
granted to a usufructuary.
Rule in Potestative Conditions

a. If the fulfillment of the potestative,
the condition depends upon the
will of the debtor, the condition as
well as the obligation itself is void.
b. If
the
fulfillment
depends
exclusively upon the will of the
creditor, both the condition and
obligation are valid.
Rule in Impossible Conditions
GENERAL RULE: They shall annul the
obligation which depends upon them.
RECIPROCAL OBLIGATIONS
Those which are created

established at the same time, out
the same cause, and which result
mutual relationships of creditor
debtor between the parties
EXCEPTIONS:
1. pre-existing obligation
2. if obligation is divisible
3. in simple or renumenatory donations
4. in testamentary dispositions
5. in case of conditions not to do an
impossible thing
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.
Effects of Suspensive Condition(1988

Bar)
1.
Before fulfillment of the condition,
no demandability as well as acquisition or
effectivity of the rights arising from the
obligation.
2.
After the fulfillment of the
condition, the obligation arises or becomes
effective.
or
of
in
&
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
returned the thing
Constructive
fulfillment
of
Suspensive Condition: the condition
shall be deemed fulfilled when the
obligor prevents its fulfillment
Effects of Resolutory Condition (1988

Bar)
Rescission will be ordered only

where the breach is substantial as to
31


Institute of Law
defeat the object of the parties in

entering into the agreement
The remedy of rescission and
fulfillment
are
alternative,
not
cumulative
2. when he does not furnish to the

creditor the guaranties or securities he
promised;
3. when by his own act he has impaired
said guaranties or securities after their
establishment, and when through
fortuitous event they disappear, unless
he
gives
new
ones
equally
satisfactory;
4. when debtor violates any undertaking,
in consideration of which the creditor
agreed to the period; or
5. when the debtor attempts to abscond.
OBLIGATION WITH A PERIOD
those whose demandability or

extinguishment is subject to the
expiration of a term or period
CONDITION
GENERAL RULE: When a period is
designated for the performance or
fulfillment of an obligation, it is presumed
to have been established for the benefit of
both creditor and debtor
EXCEPTION: When it appears from the

tenor of the period or other circumstances
that it is established in favor of one or the
other
CONDITION
Requisite
Fulfillment
Influence on
Obligation
Retroactivity
of Effects
Effect of will
of debtor
Future
and
uncertain event
Future
and
uncertain event
which may or
may
not
happen
Influences the
very existence
of
the
obligation itself
Has retroactive
effect
If left to will of
debtor,
obligation
is
affected
TERM /
PERIOD
Future
and
certain interval
of time
Interval of time
which
must
come
In alternative obligations, choice

takes effect only upon communication
of the choice to the other party and
from such time the obligation ceases
to be alternative.
The debtor cannot choose those
prestations or undertakings which are
impossible, unlawful or w/c could not
have been the object of the obligation
EFFECT OF LOSS OF OBJECT OF

OBLIGATION:
A. If right of choice belongs to debtor:
1) If through a fortuitous event
debtor cannot be held liable for
damages
2) If 1 or more but not all of the
things are lost or one or some but
not all of the prestations cannot be
performed due to the fault of the
debtor, creditor cannot hold the
debtor liable for damages because
the debtor can still comply with his
obligation
Influence the
time
or
demandability
of obligation
No retroactive
effect unless
theres
an
agreement
If left to will of
debtor,
obligation
is
not affected
B. If right of choice belongs to the

creditor:
1) If 1 of the things is lost through a
fortuitous event, the debtor shall
perform
the
obligation
by
delivering that which the creditor
should choose from among the
remainder, or that which remains if
only 1 subsists
2) If the loss of 1 of the things occurs
through the fault of the debtor, the
creditor may claim any of those
subsisting, or the price of that
which, through the fault of the
former, has disappeared with a
right to damages
3) If all the things are lost through the
fault of the debtor, the choice by
the creditor shall fall upon the
price of any 1 of them, also with
indemnity for damages
When court may fix period:

1. if the obligation does not fix a period,
but from its nature and circumstances
it can be inferred that a period was
intended by the parties;
2. if the duration of the period depends
upon the will of the debtor; and
3. if the debtor binds himself when his
means permit him to do so.
When debtor loses right to make use of
The period:
1. when after the obligation has been
contracted, he becomes insolvent,
unless he gives guaranties or
securities for the debt (the insolvency
need not be judicially declared);
32


Institute of Law
Facultative
Note: These rules shall be applied to

obligations to do or not to do.
Only one object

is due
JOINT AND SOLIDARY OBLIGATIONS

(1988 Bar)
GENERAL RULE: Obligation is presumed
joint if there is concurrence of two or more
debtors and/or creditors.
EXCEPTIONS: (Keyword: SLN)
1. when expressly stated to be solidary
2. when the law requires solidarity
3. when the nature of the obligation
requires solidarity
May be
complied with by
substitution of
another object
due
Pertains only to
debtor
Loss of object
w/o fault of
debtor may
extinguish the
obligation
Loss before
object is due will
not make debtor
liable
JOINT DIVISIBLE OBLIGATIONS
each creditor can demand for the

payment of his proportionate share of
the credit, while each debtor can be
held liable only for the payment of his
proportionate share of the debt
JOINT INDIVISIBLE OBLIGATIONS
1) If there are 2 or more debtors, the
fulfillment of or compliance with the
obligation requires the concurrence of all
the debtors, although each for his own
share. Consequently, the obligation can be
enforced only by proceeding against all of
the debtors
2) If there are 2 or more creditors, the
concurrence or collective act of all the
creditors, although each for his own share,
is also necessary for the enforcement of
the obligation
Nature
Requisites
Effect of
Breach
Effect of
death of
debtor
Indivisibility
Refers to the
prestation /
objects of
obligation
Plurality of
subjects is
not required
Due to
breach,
obligation is
converted to
indemnity
since
indivisibility of
object is
terminated
Heirs of
debtor bound
to perform the
same
prestation
Alternative
Object
Compliance
Choice
Effect of
fortuitous loss
Effect of culpable
loss
Several objects
are alternatively
due
May be complied
with by the
delivery of any of
the object
alternatively due
May be
exercised by
debtor, creditor
or 3rd person
All objects due
must be lost to
extinguish the
obligation
Loss of any of
the objects
alternatively due
may make
debtor liable
KINDS OF SOLIDARITY
1. Active solidarity
solidarity of creditors
each
creditor
is
empowered to exercise against the
debtor not only the rights which
correspond to him, but also all the
rights which correspond to the other
creditors,
with
the
consequent
obligation to render an accounting of
his acts to such creditors
2. Passive solidarity
solidarity of debtors
liability of each debtor for the

payment of the entire obligation, with
the consequent right to demand
reimbursement from the others for
their corresponding shares once
payment has been made.
Solidarity
Refers to the legal
tie / vinculum, to
the parties of the
obligation
Plurality is
indispensable
Converted into
indemnity but
solidarity character
remains
DEFENSES
AVAILABLE
TO
A
SOLIDARY DEBTOR:
1. Defenses derived from the very nature
of the obligation
2. Defenses personal to him or pertaining
to his own share
3. Defenses personal to the others, but
only as regards that part of the debt for
w/c the latter are responsible
Terminates
solidarity since
legal tie is not
transmissible to
heirs
DIVISIBLE AND INDIVISIBLE

OBLIGATIONS
GENERAL RULE: The creditor cannot be
compelled partially to receive the
prestation in which the obligation consists;
33


Institute of Law
neither may the debtor be required to

make partial payments.
3. If the penalty is iniquitous or

unconscionable even if there has
been no performance
EXCEPTIONS:
1. When the obligation expressly
stipulates the contrary
2. When the different prestations
constituting the objects of the
obligation are subject to different
terms and conditions
3. When the obligation is in part
liquidated and in part unliquidated
MODES OF EXTINGUISHMENT OF
OBLIGATIONS (LFC3NARP2)
1. Loss of the thing due
2. Fulfillment of resolutory condition
3. Compensation
4. Condonation or remission of the debt
5. Confusion or merger of rights of the
creditor and debtor
6. Novation
7. Annulment
8. Rescission
9. Prescription
10. Payment or performance
OBLIGATIONS WITH A PENAL CLAUSE
one to which an accessory

undertaking is attached for the
purpose of insuring its performance by
virtue of which the obligor is bound to
pay a stipulated indemnity or perform
a stipulated prestation in case of
breach
PAYMENT
OR
PERFORMANCE
(1998, 1977 Bar)
means not only the delivery of

money but also the performance in
any other manner of an obligation
PURPOSE OF PENALTY:
1) To insure the performance of the
obligation
2) to liquidate the amount of damages to
be awarded to the injured party in
case of breach of the principal
obligation
3) in certain exceptional cases, to punish
the obligor in case of breach of the
principal obligation
Integrity of Payment
GENERAL RULE: A debt shall not be
understood to have been paid unless the
thing or service in which the obligation
consists has been completely delivered or
rendered, as the case may be.
EXCEPTIONS: (Keyword: PASS)
1. When the obligation has been
substantially performed in good faith
2. When
the
obligee
accepts
performance,
knowing
its
incompleteness or irregularity & w/out
expressing any protest or objection
3. When there is an express stipulation
4. When the debt is in part liquidated and
in part unliquidated
GENERAL RULE: The penalty fixed by

the parties is a compensation or substitute
for damages in case of breach.
EXCEPTIONS:
1. stipulation to the contrary
2. debtor is sued for refusal to pay
the agreed penalty
3. debtor is guilty of fraud
Identity of Payment - requires that the

very thing, service or forbearance, as the
object of the prestation, must be
performed or observed
The debtor cannot exempt himself

from the performance of the principal
obligation by paying the stipulated
penalty unless when the right has
been expressly reserved for him
The creditor cannot demand the
fulfillment of the principal obligation
and the satisfaction of the stipulated
penalty at the same time unless the
right has been clearly granted him
PERSONS WHO MAY PAY THE

OBLIGATION:
1. the debtor himself or his legal
representative
2. any third person
GENERAL RULE: Creditor is not
bound to accept payment or
performance by a third person.
When penalty may be reduced:

1. If the principal obligation has been
partly complied with
2. If the principal obligation has been
irregularly complied with
EXCEPTIONS:
1. when made by a third person who
has an interest in the fulfillment of
the obligation
34


Institute of Law
2. stipulation to the contrary
the same kind in favor of the same

creditor.
Requisites:
1. there must be only 1 debtor & only
1 creditor
2. there must be 2 or more debts of
the same kind
3. all of the debts must be due
4. amount paid by the debtor must
not be sufficient to cover the total
amount of all the debts
Rights of 3rd person who paid the

obligation:
1. If payment was with knowledge
and consent of the debtor:
a. can recover entire amount
paid
b. can be subrogated to all
the rights of the creditor
2. If payment was without knowledge
or against the will of the debtor:
can recover only insofar as
payment has been beneficial to
the debtor
GENERAL RULE: The right to designate

the debt to which the payment shall be
applied primarily belongs to the debtor.
TO WHOM PAYMENT MUST BE MADE:

- the person in whose favor the
obligation has been constituted, his
successor in interest, or any person
authorized to receive it, successively.
EXCEPTION: If the debtor does not avail

of such right and he accepts from the
creditor a receipt in which the application
is made.
If the above rule is not applicable:

1. The debt most onerous to the
debtor shall be deemed satisfied.
2. If the debts due are of the same
nature and burden, payment shall
be applied to all proportionately.
GENERAL RULE: If payment is made to a

person other than those enumerated, it
shall not be valid.
EXCEPTIONS:
1. Payment made to a 3rd person,
provided that it has redounded to the
benefit of the creditor.
2. Payment made to the possessor of the
credit, provided that it was made in
good faith.
b) Dation in Payment (DACION EN

PAGO)
transmission of ownership of a
thing by the debtor to the creditor as
an accepted equivalent of the
performance of the obligation.
Rules in Monetary Obligations:

1.
Payment in cash
must be made in the currency stipulated; if
not possible, then in the legal tender in the
Philippines.
2.
Payment in check
or other negotiable instrument not
considered payment; not considered legal
tender and may be refused by the creditor.
It shall only produce the effect of payment:
a. when it has been cashed; or
b. when it has been impaired through
the fault of the creditor
Requisites:
1. existence of a money obligation
2. alienation to the creditor of a
property by the debtor with the
consent of the former
3. satisfaction
of
the
money
obligation of the debtor
c) Payment by Cession
debtor abandons all of his

property for the benefit of his creditors
in order that from the proceeds
thereof, the latter may obtain payment
of their credits.
4 Special Forms of Payment (1988 Bar)

(Keyword: DACT)
a) Application of payment
b) Dation in Payment
c) Payment by Cession
d) Tender of payment and Consignation
Requisites:
1. plurality of debts
2. partial or relative insolvency of the
debtor
3. acceptance of the cession by the
creditors
DATION IN PAYMENT BYT CESSION
a) Application of Payment
designation of the debt to which

the payment must be applied when
the debtor has several obligations of
DATION IN PAYMENT
1. one creditor
35

PAYMENT BY
CESSION
1. plurality of

Institute of Law
creditors
2. not necessarily in
state of financial
difficulty
2. debtor must be
partially or relatively
insolvent
3. thing delivered is
considered as
equivalent
of performance
3. universality of
property of debtor
is what is ceded
4. 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. merely releases
debtor for net
proceeds of things
ceded or assigned,
unless there is
contrary intention
No tender of payment is required

before consignation
EXCEPTIONS:
1. creditor is absent or unknown, or does
not appear at the place of payment
2. creditor incapacitated to receive
payment at the time it is due
3. when two or more persons claim the
right to collect
4. when the title of the obligation has
been lost
5. when without just cause creditor
refuses to give a receipt
d) Tender of Payment and Consignation
It is the consignation which

constitutes a form of payment and
must follow, supplement or complete
the tender of payment in order to
discharge the obligation
LOSS OF THE THING DUE

1. In Determinate Obligations to Give
Tender of Payment
manifestation of he debtor to the

creditor of his decision to comply
immediately with his obligation
GENERAL
RULE:
extinguished.
Obligation
is
EXCEPTIONS:
a. when by law, obligor is liable even
for fortuitous event;
b. when by stipulation, obligor is
liable even for fortuitous event;
c. when the nature of the obligation
requires the assumption of risk;
d. when the loss of the thing is due
partly to the fault of the debtor;
e. when the loss of the thing occurs
after the debtor incurred in delay;
f. when the debtor promised to
deliver the same thing to two or
more persons who do not have
the same interest; and
g. when the debt of a certain and
determinate thing proceeds from a
criminal offense.
Consignation
deposit of the object of the

obligation in a competent court in
accordance with the rules prescribed
by law after refusal or inability of the
creditor to accept the tender of
payment.
Special Requisites: (1988 Bar)
(Keyword: DDTAN)
1. The debt sought to be paid must
be due
2. 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
3. The consignation of the thing due
must first be announced to the
persons
interested
in
the
fulfillment of the obligation
4. Consignation shall be made by
depositing the things due at the
disposal of judicial authority
5. The consignation having been
made, the interested parties shall
also be notified thereof
2. In Generic Obligations to Give

GENERAL RULE: Obligation is not
extinguished because the genus of a thing
cannot perish.
EXCEPTION: In case of generic
obligations whose object is a particular
class or group with specific or determinate
qualities (Limited Generic Obligations)
Effect:
GENERAL RULE: Consignation shall
produce effects of payment only if there is
a valid tender of payment.
3. In Obligations to Do
GENERAL RULE: Obligation extinguished
when prestation becomes legally or
physically impossible.
36


Institute of Law
CONDONATION OR REMISSION OF
THE DEBT
an act of pure liberality by virtue of

which the obligee, without receiving
any price or equivalent, renounces the
enforcement of the obligation, as a
result of which it is extinguished in its
entirety or in that part or aspect of the
same to which the remission refers.
Requisites: (Keyword: DRPPML)

1. there must be 2 parties, who, in
their own right, are principal
creditors & principal debtors of
each other
2. both debts must consist in money,
or if the things due are fungibles,
they must be of the same kind &
quality
3. both debts must be due
4. both debts must be liquidated &
demandable
5. there must be no retention or
controversy commenced by 3rd
persons over either of the debts &
communicated in due time to the
debtor
6. compensation must NOT be
prohibited by law
Requisites: (Keyword: GAD)

(1977 Bar)
1. It must be gratuitous
2. It must be accepted by the debtor
3. The
obligation
must
be
demandable
CONVENTIONAL
SUBROGATION
ASSIGNMENT OF
RIGHTS
1. Governed by Arts.
1300 to 1304
1. Governed by Arts.
1624 to 1627
2. debtors consent
is required
2. debtors consent
is not required
3. extinguishes the
obligation and gives
rise to a new one
3. transmission of
right of the creditor
to third person
without modifying
or extinguishing the
obligation
4. defects and vices

in the old obligation
are cured
4. defects and vices

in the old obligation
are not cured
5. takes effect upon

moment of novation
or subrogation
5. as far as the
debtor is concerned,
takes effect upon
notification
COMPENSATION
CONFUSION
1. two persons who

are mutual debtors
and creditors of
each other
1. one person where

qualities of debtor
and creditor are
merged
2. there must be at
least two
obligations
2.only one
obligation
Debts not subject to Compensation:

(Keyword: CCDSG)
1. debts arising from contracts of deposit
2. debts arising from contracts of
commodatum
3. claims for support due by gratuitous
title
4. obligations arising from criminal
offenses
5. certain obligations in favor of the
government
CONFUSION OR MERGER OF RIGHTS
merger of the characters of the

creditor and the debtor in one and the
same person by virtue of which the
obligation is extinguished.
Requisites: (Keyword: CPC)

1. that the characters of creditor &
debtor must be in the same
person
2. that it must take place in the
person of either the principal
creditor or the principal debtor
3. it must be complete & definite
Taxes are not subject to set-off or legal

compensation
because
the
government & taxpayers are not
mutually creditors & debtors of each
other (Francia vs. IAC)
NOVATION (1978 Bar)
substitution or change of an
obligation by another, resulting in its
extinguishment or modification, either
by changing its object or principal
conditions, or by substituting another
in place of the debtor, or by
subrogating a third person in the rights
of the creditor.
COMPENSATION (1981 Bar)
Extinguishment in the concurrent

amount of the obligation of those
persons who are reciprocally debtors
and creditors of each other.
Requisites: (Keyword: PNEV)
37


Institute of Law
1. a previous valid obligation

2. agreement of the parties to the
new obligation
3. extinguishment
of
the
old
obligation
4. validity of the new obligation
to the effects of confusion as to the

latters share.
II. CONTRACTS
CONTRACT
Elements: (COC)
1. Consent
2. Object or Subject Matter
3. Cause or Consideration
KINDS:
1. As to its essence
a) Objective/Real refers to the
change either in the cause, object
or principal conditions of the
obligations
b) Subjective/Personal refers to
the substitution of the person of
the debtor or to the subrogation of
a 3rd person in the rights of the
creditor
c) Mixed
Nominate contracts
those which have their own

distinctive
individuality and
are
regulated by special provisions of law.
Innominate contracts
those which lack individuality and

are not regulated by special provisions
of law.
regulated by the stipulations of the

parties by the general provisions of
the Civil Code on obligations and
contracts, by rule governing the most
analogous nominate contracts and by
the customs of the place
2. As to its form/constitution
a) Express when it is declared in
unequivocal terms that the old
obligation is extinguished by a
new one w/c substitutes the same
b) Implied when the old & new
obligation are incompatible w/
each other on every point
4 Kinds: (1977 Bar)

1. Do ut des I give that you give
2. Do ut facias I give that you do
3. Facio ut des I do that you give
4. Facio ut facias I do that you do
2 FORMS OF SUBSTITUTION OF
DEBTORS:
1. Expromision effected with the
consent of the creditor at the instance
of the new debtor even without the
consent or even against the will of the
old debtor.
2. Delegacion effected with the
consent of the creditor at the instance
of the old debtor, with the concurrence
of the new debtor.
Characteristics of Contracts: (ROMA)

1. Relativity (Art. 1311)
2. Obligatoriness and Consensuality
(Art. 1315)
3. Mutuality (Art. 1308)
4. Autonomy (Art. 1306)
Relativity
GENERAL RULE: Contract is only valid
between parties, assigns and heirs.
EXCEPTIONS:
1. Creditor pays another creditor who is
preferred, without debtors knowledge;
2. A third person not interested in the
obligation pays with the express or
tacit approval of the debtor; or
3. Even without debtors knowledge, a
person interested in the fulfillment of
the obligation pays without prejudice
EXCEPTIONS:
1. Stipulation pour atrui - stipulation in
favor of a third person. (1977 Bar)
Requisites:
(Keyword: PFAR)
a. the stipulation must be part,
not whole of the contract;
b. the contracting parties must
have clearly and deliberately
conferred a favor upon a third
person;
c. the third person must have
communicated
his
acceptance; and
d. neither of the contracting
parties
bears
the
legal
A change in the incidental

elements of, or an addition of such
elements to an obligation, unless
otherwise expressed by the parties,
will not result in its extinguishment
Conventional
GENERAL RULE: Subrogation cannot be
presumed.
38


Institute of Law
representation
person.
of
the
third
keeping with good faith, usage and

law.
2. When a third person induces a party

to violate contract (Art 1314) (1980
Bar)
Requisites:
a. Existence of a valid contract
CAUSE
CONSENT
manifeste
d by the meeting of the offer and
acceptance upon the thing and the
cause which are to constitute the
contract.
EFFECT
1. Absence of
cause
the contract confers no right and

produces no legal effect
2. Failure of
cause
does not render the

contract void
3. Illegality of
cause
the contract is null and void
4. Falsity of
cause
the contract is void, unless the

parties show that there
is another cause which is true
and lawful
5. Lesion
does not invalidate the contract,

unless (1) there is fraud, mistake
or undue influence; or (2) when
the parties intended a
donation or some other contract
b. knowledge of contract by third

person
c. interference by third person
without justification
3. Third persons who come into
possession of the object of the
contract creating real rights
4. Contracts entered into in fraud of
creditors
Mutuality
The
contract must bind both parties; its
validity or compliance must not be left
to the will of one of them. (Art. 1308)
Autonomy
The
parties are free to stipulate anything
they deem convenient provided that
they are not contrary to law, morals,
good customs, public order and public
policy.
Requisites:
1. Legal capacity of the contracting
parties
2. Manifestation of the conformity of
the contracting parties
3. The parties conformity to the
object, cause, the terms and
conditions of the contract must be
intelligent, spontaneous and free
from all vices of consent
4. The said conformity must be real
and not simulated or fictitious
Offer a proposal made by one party to
another to enter into a contract
Acceptance manifestation by the
offeree of his assent to the terms of the
offer
The offer must be certain and the

acceptance absolute
Consensual
contracts
are
perfected from the moment there is a
manifestation of concurrence between
the offer and the acceptance regarding
the object and the cause.
Real contracts like deposit, pledge

and commodatum requires delivery of
object for perfection.
Contracts under the Civil Code

generally adhere to the Cognition
Theory, while transactions under the
Code
of
Commerce
use
the
Manifestation Theory.
VICES OF CONSENT (MIVUF)
1. Mistake should refer to the
substance of the thing which is the
object of the contract, or to those
conditions which have principally
moved one or both parties to enter
into the contact
2. Intimidation when 1 of the
contracting parties is compelled by a
reasonable & well-grounded fear of an
imminent & grave evil upon his person
or prop of his spouse, descendants or
ascendants, to give his consent
Consensuality
Contracts
are perfected by mere consent and
from that moment, the parties are
bound not only to the fulfillment of
what has been expressly stipulated
but also to all consequences which,
according to their nature may be in
39


Institute of Law
3. Violence when in order to wrest

consent, serious or irresistible force is
employed
4. Undue influence when a person
takes improper advantage of his
power over the will of another,
depriving the latter of a reasonable
freedom of choice
5. Fraud when, through insidious
words or machinations of 1 of the
contracting parties, the other is
induced to enter into a contract which,
without them, he would not have
agreed to.
OBJECT
Requisites: (Keyword: CLPD)
1. It must be within the commerce of
man
2. It must be licit or not contrary law,
morals, good customs, public
order or public policy
3. It must be possible
4. It must be determinate as to its
kind
1. When the 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
3. For the convenience of the parties
Parties may compel each other to
comply with the form required once
the contract has been perfected. (Art
1357)
A 8792 (E- COMMERCE ACT)
provides that the formal requirements
to make contracts effective as against
third persons and to establish the
existence of a contract are deemed
complied with provided that the
electronic document is unaltered and
can be authenticated as to be usable
for future reference.
REFORMATION OF INSTRUMENTS
Requisites: (Keyword: MMP)
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
3. clear and convincing proof of
mistake,
accident,
relative
simulation, fraud, or inequitable
conduct
CAUSE
the immediate, direct and most

proximate reason which explains and
justifies the creation of obligation.
Requisites (Keyword: LET)
1. Cause should be in existence at
the time of the celebration of the
contract
2. Cause should be licit or lawful
3. Cause should be true
Rules:
1. In onerous contracts, the cause is
understood to be, for each
contracting party, the prestation of
promise of a thing or service by
the other
2. In remuneratory contracts, the
service
or
benefit
w/c
is
remunerated
3. In contracts of pure beneficience,
the mere liberality of the
benefactor
Instances when there can be no

reformation:
1. Simple unconditional donation
inter vivos;
2. Wills;
3. When the agreement is void;
4. When one of the parties has
brought an action to enforce the
instrument
no
subsequent
reformation can be asked.
LE UNENFORCEABLE
FORM OF CONTRACTS
GENERAL RULE: Contracts shall be
obligatory, in whatever form they may
have been entered into, provided all the
essential requisites for their validity are
present.
EXCEPTIONS:
VOID
40

VOIDABLE

Institute of Law
1. Defect is caused by lack

of essential elements or
illegality
Defect is caused by vice of

consent
2. Do not as a general rule

produce any legal effect
Valid & enforceable until

they are annulled by a
competent court
3. Action for the declaration

or nullity or inexistence or
defense of nullity or
inexistence does not
prescribe
Action for annulment or

defense of annulability may
RESCISSIBLE CONTRACTS
prescribe
Contracts validly
agreed upon but, by reason of lesion
or economic prejudice, may be
rescinded in cases established by law
4. Not cured by prescription
Cured by prescription
What contracts are rescissible:
1.
those entered into by guardians where
5. Cannot be ratified
Can be ratified
the ward suffers lesion of more than
of the value of the things which are
objects thereof;
2. those agreed upon in representation
6. Assailed not only by a
contracting party but even
Assailed only by a of absentees, if the latter suffer lesion
by a 3rd person whose
contracting party by more than of the value of the
things which are subject thereof;
interest is directly affected
3. those undertaken in fraud of creditors
when the latter cannot in any manner
claim what are due them;
7. Assailed directly or
4. those which refer to things under
Assailed directly
collaterally
litigation if they have been entered into
by the CONTRACTS
defendant without the
COMPARATIVE TABLE OF DEFECTIVE
knowledge and approval of the
litigants and the court;
5. all other contracts especially declared
by law to be subject to rescission; and
6. payments made in a state of
insolvency on account of obligations
not yet enforceable
Requisites:
1. the contract must be rescissible
2. the party asking for rescission must
have no other legal means to obtain
reparation for the damages suffered
by him
3. the person demanding rescission must
be able to return whatever he may be
able to return whatever he may be
obliged to restore if rescission is
granted
4. the things w/c are the object of the
contract must not have passed legally
41


Institute of Law
to the possession of a 3rd person

acting in good faith
5. the action for rescission must be
brought w/in the prescriptive period of
4 years
person who is entitled to annul the

contract.
UNENFORCEABLE CONTRACTS
What
contracts
are
unenforceable: (Keyword: IAS)
1. those entered into in the name of
another by one without or acting in
excess of authority;
2. those where both parties are
incapable of giving consent; and
3. those which do not comply with
the Statute of Frauds.
Badges of Fraud:
1. consideration of the conveyance is
inadequate or fictitious;
2. transfer was made by a debtor after a
suit has been begun and while it is
pending against him;
3. sale upon credit by an insolvent
debtor;
4. evidence of indebtedness or complete
insolvency
5. transfer of all his property by a debtor
when he is financially embarrassed or
insolvent;
6. transfer made between father & son,
where there is present any of the
above circumstances
7. failure of the vendee to take exclusive
possession of all the property
Agreements within the scope of the

Statute of Frauds (exclusive list):
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;
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 or interest therein; and
7. Representation as to the credit of a
third person.
VOIDABLE CONTRACTS (Keyword: IV)

What contracts are voidable:
1. those where one of the parties is
incapable of giving consent to a
contract
2. those where the consent is vitiated
by mistake, violence, intimidation,
undue influence or fraud.
Causes of extinction of action to annul:
1. Prescription
the action must be commenced
within 4 years from:
a. the time the incapacity ends;
b. the
time
the
violence,
intimidation or undue influence
ends; or
c. the time the mistake or fraud
is discovered.
2. Ratification
Requisites:
a. there must be knowledge of the
reason which renders the contract
voidable;
b. such reason must have ceased;
and
c. the injured party must have
executed an act which expressly
or impliedly conveys an intention
to waive his right.
The contracts/agreements under

the Statute of Frauds require that the
same be evidenced by some note,
memorandum or writing, subscribed
by the party charged or by his agent,
otherwise, the said contracts shall be
unenforceable
The statute of frauds applies only
to executory contracts, not to those
that are already partially or completely
fulfilled.
Ratification of contracts in violation of

the Statute of Frauds
(Keyword: FA)
1. Failure
to
object
to
the
presentation of oral evidence to
prove the same
2. Acceptance of benefits under
them
3. By loss of the thing which is the object

of the contract through fraud or fault of the
VOID CONTRACTS
What contracts are void:
42


Institute of Law
(Keyword: IICOP)
1. Those whose cause, object or
purpose is contrary to law, morals
good customs, public order or
public policy;
2. Those whose object is outside the
commerce of men;
3. Those which contemplate an
impossible service;
4. Those where the intention of the
parties relative to the principal
object of the contract cannot be
ascertained; and
5. Those expressly prohibited or
declared void by law.
Rules when only one of the parties is at

fault:
A. Executed Contracts:
1. Guilty party is barred from
recovering what he has given to
the other party, is barred from
recovering what he has given to
the other party by reason of the
contract.
2. Innocent party may demand for
the return of what he has given.
B. Executory Contracts: Neither of the
contracting parties can demand for the
fulfillment of any obligation from the
contract nor may be compelled to comply
with such obligation
NATURAL OBLIGATIONS (1977 Bar)
They are real

obligations to which the law denies an
action, but which the debtor may
perform voluntarily
It is patrimonial,
and presupposes a prestation
The binding tie of

these obligations is in the conscience
of man, for under the law, they do not
have the necessary efficacy to give
rise to an action
INEXISTENT CONTRACTS
What contracts are inexistent:
(Keyword: SE)
1. Those which are absolutely
simulated or fictitious; and
2. Those whose cause or object did
not exist at the time of the
transaction.
Principle of In Pari Delicto
GENERAL RULE: When the defect of a
void contract consists in the illegality of the
cause or object of the contract and both of
the parties are at fault or in pari delicto, the
law refuses them every remedy and
leaves them where they are.
Examples
of
natural
obligations
enumerated under the Civil Code:
1. Performance
after
the
civil
obligation has prescribed;
2. Reimbursement of a third person
for a debt that has prescribed;
3. Restitution
by
minor
after
annulment of contract;
4. Delivery by minor of money or
fungible thing in fulfillment of
obligation;
5. Performance after action to
enforce civil obligation has failed;
6. Payment by heir of debt
exceeding value of property
inherited; and
7. Payment of legacy after will has
been declared void.

1. Payment of usurious interest
2. Payment of money or delivery of
property for an illegal purpose, where
the party who paid or delivered
repudiates the contract before the
purpose has been accomplished, or
before any damage has been caused
to a 3rd person.
3. Payment or delivery made by an
incapacitated person
4. Agreement or contract which is not
illegal per se & the prohibition is
designed for the protection of the
plaintiff
5. Payment of any amount in excess of
the maximum price of any article or
commodity fixed by law
6. Contract
whereby
a
laborer
undertakes to work longer than the
maximum number of hours fixed by
law
7. Contract whereby a laborer accepts a
wage lower than the minimum wage
fixed by law.
ESTOPPEL
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: (1989 Bar)
(Keyword: PTJL)
1. Estoppel in Pais (by conduct)
43


Institute of Law
a. Estoppel by silence
b. Estoppel by acceptance of
benefits
2. Technical Estoppel
a. Estoppel by deed
b. Estoppel by record
3. Estoppel by judgment
4. Laches
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
A contract wherein one of the

parties delivers to another, either
something not consumable so that the
latter may use the same for a certain
time and return it or money or other
consumable thing, upon the condition
that the same amount of the same
kind and quality shall be paid.
CREDIT
LOAN TRANSACTIONS
CREDIT
Delivery by one party
and the receipt of
other party of a given
sum of money or other
consumable thing
upon an agreement,
express or implied, to
repay the same.
Ability of a
person to borrow
money or things
by virtue of the trust or
confidence reposed by
the lender that he will
pay what he
promised.
Characteristics:
1. Real Contract delivery of the thing
loaned is necessary for the perfection
of the contract
An accepted promise to make a future
loan is a consensual contract, and
therefore binding upon the parties but it is
only after delivery, will the real contract of
loan arise.
CREDIT TRANSACTIONS
All transactions or loan of goods,
services, or money in the present
with a promise to pay or deliver in
the future.
Types:
1. Secured transactions or contracts
of real security - supported by a
collateral or an encumbrance of
property
2. Unsecured
transactions
or
contracts of personal security supported only by a promise:
2. Unilateral Contract - once the subject

matter has been delivered, it creates
obligations on the part of only one of the
parties (i.e. borrower).
Kinds of Unilateral Contract:
1. Commodatum when the bailor
(lender) delivers to the bailee
Kinds of commodatum:
a. Ordinary Commodatum- use by
the borrower of the thing is for a
certain period of time.
b. Precarium- one whereby the
bailor may demand the thing
loaned at will and it exists in
i. neither the duration or
purpose of the CC is
stipulated
ii. the use of the thing is
merely tolerated by the
owner
Security
something given, deposited, or

serving as a means to ensure
fulfillment or enforcements of an
obligation or of protecting some
interest in property.
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
44


Institute of Law
2. Simple loan or mutuum where the

lender delivers to the borrower money or
other consumable thing upon the condition
that the latter shall pay the same amount
of the same kind and quality.
2. The bailee is liable for the loss of the

thing even if it should be through a
fortuitous event in any of the following
cases:
a. when the bailee devoted the thing
for any purpose different from that
for which it has been loaned;
b. when he keeps it longer than the
period stipulated, or after the
accomplishment of its use;
c. when the thing loaned has been
delivered with appraisal of its
value;
d. when he lends or leases it to third
persons who are not members of
his household; or
e. when, being able to save either of
the thing borrowed or his own
things, he chose to save the latter.
A. COMMODATUM
NATURE:
1. Bailee in commodatum acquires the
use of the thing but not its fruits
(unless stipulated as an incidental part
of the contract).
2. Essentially gratuitous; it ceases to be
a commodatum if any compensation is
to be paid by the borrower who
acquires the use.
3. Similar to a donation in that it confers
a benefit to the recipient.
4. Use of the thing loaned must be
temporary, otherwise the contract may
be a deposit.
5. Subject matter is generally non
consumable whether real or personal
but if the consumable goods are not
for consumption as when they are
merely for exhibition, consumable
goods may be the subject of the
commodatum.
6. Bailor need not be the owner of the
thing owned.
7. Death of either party terminates the
contract unless by stipulation, the
commodatum is transmitted to the
heirs of either or both parties.
In case of extraordinary
expenses arising from the actual use
of the thing by the bailee, they shall be
borne equally by both the bailor and
the bailee, even though the bailee
acted without fault, unless there is a
stipulation to the contrary.
he borrower has no right
to retain the thing loaned as security
against the lender except for a claim
for damages suffered because of the
flaws of the thing loaned.
In case there are two or
more bailees their obligation shall be
COMMODATUM
Obligations of
commodatum:
the
bailee
in
1. Object
Non-consumable
Consumable
2. Cause
Gratuitous
May or may not be

gratuitous
3. Purpose
Use or temporary
Possession
Consumption
Matter
Real or personal
property
Only personal
property
5.Ownership
of the thing
Retained by the
bailor
Passes to the
debtor
1. 4. Subject
LOAN
DISCOUNTING PAPER
Interest taken at the

expiration of
the credit
Interest is taken in
advance
Always on a
double name
paper (two
signature appear
with both parties
held liable)
Always on a
single name
paper (i.e.
Promissory Note
with no
indorsement
other than the
maker)
MUTUUM
6. Thing to be Exact thing loaned

returned
Equal amount of
the same kind
and quality
7. Who bears Bailor

risk of loss
Debtor
8. When to
return
Only after the

expiration of the
term
To pay for the ordinary expenses for

the use and preservation of the thing
loaned.
In case of urgent
need, even before
the expiration of
the term
solidary.
Obligations
of
commodatum:
45

the
bailor
in

Institute of Law
1. GENERAL RULE: Allow the bailee the

use of the thing loaned for the duration
of the period stipulated or until the
accomplishment of the purpose for
which
the
commodatum
was
instituted.
There is a transfer
of ownership of the
thing delivered
Relationship
Relationship is that
between the parties
of a landlord and
is that of obligor-obligee tenant
Creditor receives
payment for his loan
EXCEPTION: In case of urgent need

in which case bailee may demand its
return or temporary use.
2. To refund to the bailee extraordinary
expenses for the preservation of the
thing loaned.
3. To be liable for damages for known
hidden flaws.
REQUISITES:
a. There is flaw or defect in the thing
loaned
b. The flaw or defect is hidden
c. The bailor is aware thereof
d. He does not advise the bailee of
the same
e. The bailee suffers damages by
reason of said flaw or defect
COMMODATUM
If the above requisites concur, the

bailee has the right of retention for
damages.
B. SIMPLE LOAN OR MUTUUM
A contract whereby
one party delivers to another money or
other consumable thing with the
understanding that the same amount
of the same kind and quality shall be
paid.
The obligation is
to pay and not to return because the
consumption of the thing loaned is the
distinguishing character of the contract
of mutuum from that of commodatum.
No
estafa
is
committed by a person who refuses to
pay his debt or denies its existence.
SSIMPLE LOAN/
MUTUUM
Delivery of money
or some consumable
thing with a promise
to pay an equivalent
of the same kind and
quality
There is no transfer
of ownership of the
thing delivered
Owner of the
property rented
receives
compensation or
price either in
money, provisions,
chattels, or labor
from the occupant
thereof in return for
its use (Tolentino vs.
Gonzales, 50 Phil
558 1927)
BARTER
Subject matter is
money or fungible
things
Subject matter is
non-fungible, (non
consumable) things
In commodatum ,
the bailee is bound
to return the
identical thing
borrowed when the
time has expired or
purpose served
The equivalent thing

is given in return for
what has been
received
Mutuum may be
gratuitous and
commodatum is
always gratuitous
Onerous, actually a
mutual sale
FORM OF PAYMENT:
1. If the thing loaned is money, payment
must be made in the currency
stipulated, if it is possible; otherwise it
is payable in the currency which is
legal tender in the Philippines.
2. If what was loaned is a fungible thing
other than money, the borrower is
under obligation to pay the lender
another thing of the same kind, quality
and quantity. In case is impossible to
do so, the borrower shall pay its value
at the time of the perfection of the
loan.
INTEREST
the compensation allowed by law

or fixed by the parties for the loan or
forbearance of money, goods or
credits
RENT
Delivery of some
non-consumable
thing in order that
the other may use it
during a certain
period and return it
to the former.
Requisites for recovery:

(Keyword: SLW)
1. must be expressly stipulated
46


Institute of Law
2. must be lawful
3. must be in writing
iii. When the judgment of the

court awarding a sum of
money becomes final and
executory, the rate of legal
interest, whether the case falls
under paragraph i or ii above,
shall be 12% per annum from
such
finality
until
its
satisfaction, this interim period
being deemed to be by then
an equivalent to a forbearance
of credit. (Eastern Shipping
Lines vs. CA, July 12, 1994)
Compound Interest:
GENERAL RULE: Unpaid interest shall
not earn interest.
EXCEPTIONS:
1. when judicially demanded
2. when there is an express stipulation
Guidelines for the application of proper
interest rates
1. If there is stipulation: that rate shall be
applied
2. The following are the rules of thumb
for the application/imposition of
interest rates:
a) When an obligation, regardless of
its source, i.e., law, contracts,
quasicontracts, delicts or quasidelicts
is
breached,
the
contravenor can be held liable for
damages.
b) With regard particularly to an
award of interest in the concept of
actual
and
compensatory
damages, the rate of interest, as
well as the accrual thereof, is
imposed, as follows:
i. When the obligation breached
consists of payment of a sum
of money (loan or forbearance
of money), the interest shall
be that which is stipulated or
agreed upon by the parties. In
absence of an agreement, the
rate shall be twelve percent
(12%) per annum computed
from default.
The interest due shall

itself earn legal interest
from the time it is judicially
demanded
ii. In other cases, the rate of
interest shall be six percent
(6%) per annum.
No interest, however,
shall be adjudged on
unliquidated claims or
damages except when or
until the demand can be
established
with
reasonable certainty.
When the demand

cannot be established, the
interest shall begin to run
only from the date of the
judgment of the court is
made.
Central Bank Circular No. 416

fixing the rate of interest at 12% per
annum deals with loans, forbearance
of any money, goods or credits and
judgments involving such loans, or
forbearance in the absence of express
agreement to such rate
Interest as indemnity for damages
is payable only in case of default or
non-performance of the contract. As
they are distinct claims, they may be
JUDICIAL
EXTRAJUDICIAL
1. Creation
Will of the court Will of the

parties
or contract
2. Purpose
Security or to
Custody and
insure the right safekeeping
of a party to
property
or to recover in
case of
favorable
judgment
3. Subject
Matter
Movables or
immovables,
but generally
immovables
Movables only
4. Cause
Always
onerous
May be
compensated or
not, but
generally
gratuitous
5. When
must the
thing be
returned
Upon order of
the court or
when litigation
is ended
Upon demand
of
depositor
6. In whose
behalf it is
held
Person who
has a
right
Depositor or
third
person
designated
demanded
separately.
(Sentinel
Insurance Co. vs. CA, 182 SCRA 517)
47


Institute of Law
The
chief
difference
between a voluntary deposit and a
necessary deposit is that in the former, the
depositor has a complete freedom in
choosing the depositary, whereas in the
latter, there is lack of free choice in the
depositor.
Judicial Extra-judicial
DEPOSIT
A contract constituted from the

moment a person receives a thing
DEPOSIT
MUTUUM
Principal purpose
is safekeeping or
custody
Principal purpose is
consumption
Depositor can
demand the return
of the subject
matter at will
The lender must

wait until the
expiration of the
period granted to
the debtor
Subject matter
may be movable or
immovable
property
Subject matter is
only money or
other fungible thing
A contract for the rent of

safety deposit boxes is not an ordinary
contract of lease of things but a special
kind of deposit; hence, it is not to be
strictly governed by the provisions on
deposit. The relation between a bank and
its customer is that of a bailor and bailee.
(CA Agro vs. CA, 219 SCRA 426)
belonging to another, with the

obligation of safely keeping it and of
returning the same.
If
the
depositary is
capacitated, he is subject to all the
obligations of a depositary whether or not
the depositor is capacitated. If the
depositor is incapacitated, the depositary
must return the property to the legal
representative of the incapacitated or to
the depositor himself if he should acquire
capacity.
Characteristics: (Keyword: RUB)

1. Real Contract - contract is
perfected by the delivery of the
subject matter.
2. Unilateral (gratuitous deposit)
Only the depositary has an
obligation.
3. Bilateral (onerous deposit) gives rise to obligations on the
part of both the depositary and
depositor.
The
incapacitated
depositary does not incur the obligation of
a depositary but he is liable:
1. to return the thing deposited while
still in his possession
2. to pay the depositor the amount
which he may have benefited
himself with the thing or its price
subject to the right of any third
person who acquired the thing in
good faith
Kinds of Deposit:
1. Judicial
(Sequestration)
takes
place when an attachment or seizure
of property in litigation is ordered.
2. Extra-judicial
a. Voluntary one wherein the
delivery is made by the will of the
depositor or by two or more
persons each of whom believes
himself entitled to the thing
deposited.
b. Necessary one made in
compliance with a legal obligation,
or on the occasion of any calamity,
or by travelers in hotels and inns,
or by travelers with common
carriers.
DEPOSIT
Obligations of the Depositary:

1. To keep the thing safely
2. To return of the thing when
required
3. Exercise over the thing deposited
the same diligence as he would
exercise over his property
4. Not to deposit the thing with a
third person unless authorized by
express stipulation
5. If the thing deposited should earn
interest:
a. to collect interest as it fall
due
b. to take steps to preserve
its value and rights
corresponding to it
6. Not to commingle things deposited
if so stipulated
COMMODATUM
Purpose is
Safekeeping
Purpose is the
transfer of the use
May be gratuitous
Essentially and
always gratuitous
Movable/corporeal
things only in
case of extrajudicial
deposit
Both movable and

immovable may be
the object
48


Institute of Law
7. Not to make use of the thing

deposited unless authorized
8. When the thing deposited is
delivered sealed and closed:
a. to return the thing deposited
when delivered closed and
sealed, in the same condition
b. to pay for damages should the
seal or lock be broken through
his fault, which is presumed
unless proved otherwise
c. to keep the secret of the
deposit when the seal or lock
is broken with or without his
fault.
The
depositary
is
authorized to open the thing
deposited which is closed and
sealed when:
i. there
is
presumed
authority (i.e. when the
key has been delivered
to
him
or
the
instructions
of
the
depositor cannot be
done without opening it)
ii. necessity
9. To return product, accessories,
and accessions of the thing
deposited
10. To pay interest on sums converted
to personal use if the deposit
consists of money
GENERAL RULE: Deposit is
safekeeping of the subject matter and
for use. The unauthorized use by
depositary would make him liable
damages.
Example: bank deposits are irregular

deposits in nature but governed by law
on loans.
IRREGULAR DEPOSIT
MUTUUM
The thing deposited

may be demanded at
will by the depositor
Lender is bound by
the provisions of the
contract
The only benefit is

that which accrues
to the depositor
Essential cause for

the transaction is the
necessity of the
borrower
The irregular
depositor has a
preference over
other creditors with
respect to the thing
deposited
No preference in the
distribution of the
debtors property
The permission to use is

NOT presumed except when such use is
necessary for the preservation of the thing
deposited.
Liability for loss through fortuitous
event
The depositary is liable for

loss of the thing through fortuitous event:
(Keyword: USDA)
1. if stipulated
2. if he uses the thing without the
depositor's permission
3. if he delays its return
4. if he allows others to use it, even
though he himself may have been
authorized to use the same
for
not
the
for
Rule when there are two or more

depositors:
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, and the
depositary may return the thing to
anyone 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.
EXCEPTIONS:
1. When the preservation of the thing
deposited requires its use
2. When authorized by the depositor
Effect if permission to use is given:
1. If thing deposited is non-consumable,
the contract loses the character of a
deposit and acquires that of a
commodatum despite the fact that the
parties may have denominated it as a
deposit, unless safekeeping is still the
principal purpose.
2. If thing deposited consists of
money/consumable
things,
the
contract is converted into a simple
loan or mutuum unless safekeeping is
still the principal purpose in which
case it is called an irregular deposit.
49


Institute of Law
The depositary may retain

the thing in pledge until full payment of
what may be due him by reason of the
deposit.
2. it takes place on the occasion of any

calamity such as fire, storm, flood,
pillage, shipwreck or other similar
events
The depositors heir who

in good faith may have sold the thing
which he did not know was deposited,
shall only be bound to return the price
he may have received or to assign his
right of action against the buyer in
case the price has not been paid him.
Deposit by Travelers in hotels and inns:
The keepers of hotels or inns shall

be responsible as depositaries for the
deposit of effects made by travelers
provided:
1. Notice was given to them or to
their employees of the effects
brought by the guest; and
2. The guests take the precautions
which said hotel-keepers or their
substitutes advised relative to the
care and vigilance of their effects.
Liability shall EXCLUDE

losses which proceed from force majeure.
The act of a thief or robber is not deemed
force majeure unless done with the use of
arms or irresistible force.
The hotel-keeper cannot

free himself from the responsibility by
posting notices to the effect that he is not
liable for the articles brought by the guest.
Any stipulation to such effect shall be void.
Obligations of the Depositor:

1. To pay expenses for preservation
a. If the deposit is gratuitous, the
depositor is obliged to reimburse
the depositary for expenses
incurred for the preservation of the
thing deposited
b. If the deposit is for valuable
consideration,
expenses
for
preservation are borne by the
depositary
2. To pay loses incurred by the
depositary due to the character of the
thing deposited
GENERAL RULE: The depositor shall
reimburse the depositary for any loss
arising from the character of the thing
deposited.
EXCEPTIONS:
1. at the time of the deposit, the
depositor was not aware of the
dangerous character of the thing
2. when depositor was not expected
to know the dangerous character
of the thing
3. when the depositor notified the
depository of the same
4. the depositary was aware of it
without advice from the depositor
GUARANTY
A contract whereby a
person (guarantor) binds himself to
the creditor to fulfill the obligation of
the principal debtor in case the latter
fail to do so.
Extinguishment of Voluntary Deposit

(Keyword: LDO)
1. Loss or destruction of the thing
deposited
2. In case of gratuitous deposit, upon the
death of either the depositor or the
depositary
3. Other causes, such as return of the
thing, novation, expiration of the term
fulfillment of the resolutory condition,
etc.
2. As to its Origin
a. Conventional - agreed upon by
the parties
b. Legal - one imposed by virtue of a
provision of a law.
c. Judicial - one which is required
by a court to guarantee the
eventual right of one of the parties
in a case.
Classification of Guaranty:
1. In a broad sense
a. Personal - the guaranty is the
credit given by the person who
guarantees the fulfillment of the
principal obligation.
b. Real - the guaranty is the
property, movable or immovable.
3. As to Consideration
a.
Gratuitous
the
guarantor does not receive any
price or remuneration for acting as
such.
Necessary Deposits
1. made in compliance with a legal
obligation
50


Institute of Law
b.
Onerous - the guarantor

receives valuable consideration.
4. As to the Person guaranteed

a. Single - one constituted solely to
guarantee or secure performance
of the principal obligation.
b. Double or sub-guaranty one
constituted
to
secure
the
fulfillment of a prior guaranty.
5. As to Scope and Extent
a. Definite - the guaranty is limited
to the principal obligation or to a
specific portion thereof.
b. Indefinite or simple - one which
not only includes the principal
obligation but the accessories.
2.
3.
4.
5.
6.
SURETYSHIP
A contract whereby a person binds
himself solidarily with the principal debtor.
The reference in Art. 2047 to
solidary obligations does not mean that
surety ship is withdrawn from the
applicable provisions governing guaranty.
A surety is almost the same as a solidary
debtor, except that he himself is a principal
debtor.
Characteristics of Guaranty and
Suretyship:
1. Accessory - It is an indispensable
condition for its existence that there
must be a principal obligation.
The guarantor cannot bind himself
GUARANTY
Surety assumes
liability as regular
party to the
undertaking
Collateral
undertaking
Surety is an original
promisor
Guarantor is
secondarily liable
Surety is primarily
liable
Guarantor binds
himself to pay if the
principal CANNOT
PAY
Surety
undertakes to pay
if the principal
DOES NOT PAY
Insurer of solvency
of debtor
Insurer of the debt
Guarantor can avail

of the benefit of
excussion and
division in case
creditor proceeds
against him
Surety cannot avail of

the benefit of excussion
and
division
With respect to the

creditor, no such requirement is
needed because he binds himself to
nothing. However, when there is
merely an offer of a guaranty, or
merely a conditional guaranty, in the
sense that it requires action by the
creditor before the obligation becomes
fixed, it does not become binding until
it is accepted and notice of such
acceptance by the creditor is given to
the guarantor. But in any case, the
creditor is not precluded from waiving
the requirement of notice.
The consideration of the
guaranty is the same as the
consideration
of
the
principal
obligation.
7. Not presumed. It must be expressed

and reduced in writing.
8. Falls under the Statute of Frauds
since it is a special promise to answer
for the debt, default or miscarriage of
another.
9. Strictly interpreted against the creditor
and in favor of the guarantor/surety
and is not to be extended beyond its
terms or specified limits. The rule of
strictissimi juris commonly pertains to
an accommodation surety because
the latter should be protected against
unjust pecuniary impoverishment by
imposing on the principal, duties akin
to those of a fiduciary. Note: It does
not apply in case of compensated
sureties.
SURETYSHIP
Liability depends
upon an
independent
agreement to pay the
obligation if primary
debtor fails to do so
even if he does, his liability shall be

reduced to the limits of that of the
debtor
Subsidiary and Conditional - takes
effect only in case the principal debtor
fails in his obligation.
Unilateral - may be entered even w/o
the intervention of the principal debtor
and it gives rise only to a duty on the
part of the guarantor in relation to the
creditor and not vice versa.
Nominate
Consensual
It is a contract between the
guarantor/surety and creditor.
for more than the principal debtor and
A power of attorney to loan money

does not authorize the agent to make
the principal liable as a surety for the
payment of the debt of a third person.
Nature of Suretys undertaking:

51


Institute of Law
1. Liability is contractual and accessory

but direct
He directly, primarily and

equally binds himself with the
principal as original promisor,
although he possesses no direct or
personal interest over the latters
obligation.
2. Limited by the terms of the contract.
3. Arises only if principal debtor is held
liable.
The creditor may sue

separately or together the principal
debtor and the surety.
4. Surety is not entitled to the benefit of
exhaustion
He assumes a solidary
liability for the fulfillment of the
principal obligation.
5. Undertaking is to creditor and not to
debtor.
costs incurred after he has been

judicially required to pay.
Qualifications
of
a
guarantor:
(Keyword: CIP)
1. possesses integrity
2. capacity to bind himself
3. has sufficient property to answer
for the obligation which he
guarantees
Benefit of Excussion
The right by which the guarantor

INDORSEMENT
GUARANTY
Primarily a
Contract of security
contract of transfer
Unless the note is
promptly
presented
for payment at
maturity and due
notice of dishonor
given to the
indorser within a
reasonable time
he will be
discharged
absolutely from all
liability thereon
A guaranty or suretyship may

secure the performance of a:
1. Voidable contract
2. Unenforceable contract
3. Natural obligation
The creditor may proceed
against the guarantor although
he has no right of action
against the principal debtor.
In either or both of
these particulars
does not generally
work as an absolute
discharge of a
guarantors liability
Indorser does not Guarantor warrants

warrant the
the solvency of the
solvency. He is
promisor
answerable on a
strict compliance
with the law by the
holder, whether
the promisor is
solvent or not
Continuing guaranty
One which is not limited to a

single
transaction
but
which
contemplates a future course of
dealings, covering a series of
transactions generally for an indefinite
time or until revoked.
Future debts, even if the

amount is not yet known, may be
guaranteed, but there can be no claim
against the guarantor until the amount
of the debt is ascertained or fixed and
demandable.
Indorser can be
Guarantor cannot be
sued
sued as promisor
cannot be compelled to pay the
creditor unless the latter has
exhausted all the properties of the
principal debtor, and has resorted to
all of the legal remedies against such
debtor.
Extent of Guarantors liability:

1. Where the guaranty is definite: It is
limited in whole or in part to the
principal debt, to the exclusion of
accessories.
2. Where guaranty indefinite or simple: It
shall comprise not only the principal
obligation, but also all its accessories,
including the judicial costs, provided
with respect to the latter, that the
guarantor shall only be liable for those
When Guarantor is not entitled to the

benefit of excussion:
1. If the guarantor has expressly
renounced it
2. If he has bound himself solidarily with
the debtor
3. In case of insolvency of the debtor
4. When he has absconded, or cannot
be sued within the Philippines unless
52


Institute of Law
5.
6.
7.
8.
9.
he
has
left
a
manager
or
representative
If it may be presumed that an
execution on the property of the
principal debtor would not result in the
satisfaction of the obligation
If the guarantor does not set up the
benefit against the creditor upon
demand for payment from him, and
point out to the creditor available
property to the debtor within Philippine
territory, sufficient to cover the amount
of the debt
If he is a judicial bondsman or subsurety
Where the pledge or mortgage has
been given by him as special security
If he fails to interpose it as a defense
before judgment is rendered against
him
His voluntary appearance does not

constitute a renunciation of his right to
excussion (see Art. 2059(1)).
Guarantor cannot set up the
defense if he does not appear and it
may no longer be possible for him to
question the validity of the judgment
rendered against the debtor.
2) A guarantor is entitled to be heard
before and execution can be issued
against him where he is not a party in
the case involving his principal
(procedural due process).
Guarantors Right
Reimbursement
of
Indemnity
or
GENERAL RULE: Guaranty is a contract

of indemnity. The guarantor is entitled to
be reimbursed by the principal debtor.
Benefit of Division
Should
there
be
several
guarantors of only one debtor and for
the same debt, the obligation to
answer for the same is divided among
all.
Liability: Joint
The creditor can claim from the

guarantors only the shares they are
respectively bound to pay except
when solidarity is stipulated.
The indemnity consists of: (Keyword:

DIED)
1. Total amount of the debt no right to
demand reimbursement until he has
actually paid the debt, unless by the
terms of the contract, he is given the
right before making payment. He
cannot collect more than what he has
paid.
2. Legal interest thereon from the time
the payment was made known (notice
of payment in effect a demand so that
if the debtor does not pay immediately,
he incurs in delay) to the debtor, even
though it did not earn interest for the
creditor. Guarantors right to legal
interest is granted by law by virtue of
the payment he has made.
3. Expenses incurred by the guarantor
after having notified the debtor that
payment has been demanded of him
by the creditor; only those expenses
that the guarantor has to satisfy in
accordance
with
law
as
a
consequence of the guaranty (Art.
2055) not those which depend upon
his will or own acts or his fault for
these are his exclusive personal
responsibility and it is not just that they
be shouldered by the debtor.
4. Damages if they are due in
accordance with law. General rules on
damages apply.
If any of the guarantors

should be insolvent, his share shall be
borne by the others including the paying
guarantor in the same joint proportion
following the rule in solidary obligations.
The right to contribution or

reimbursement from his co-guarantors is
acquired ipso jure by virtue of said
payment without the need of obtaining
from the creditor any prior cession of rights
to such guarantor.
Procedure when creditor sues: (Art.
2062)
The guarantor cannot be

sued with his principal, much less alone
except in Art. 2059.
1) The guarantor must be NOTIFIED so
that he may appear, if he so desires,
and set up defenses he may want to
offer. If the guarantor appears, he is
still given the benefit of exhaustion
even if judgment should be rendered
against him and the principal debtor.
EXCEPTIONS:
1. Where the guaranty is constituted
without the knowledge or against
53


Institute of Law
the will of the principal debtor, the

guarantor can recover only insofar
as the payment had been
beneficial to the debtor (Art.
2050).
2. Payment by a third person who
does not intend to be reimbursed
by the debtor is deemed to be a
donation,
which,
however,
requires the debtors consent. But
the payment is in any case valid
as to the creditor who has
accepted it (Art. 1238).
3. Waiver of the right.
1. When the principal obligation is

extinguished;
2. For the same causes as all other
obligations;
3. If the creditor voluntarily accepts
immovable or other properties in
payment of the debt, even if he should
afterwards lose the same through
eviction or conveyance of property;
4. 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;
5. Extension granted to the debtor by the
creditor without the consent of the
guarantor; and
6. 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.
Effect of Payment by Guarantor without

notice to debtor:
The debtor may interpose against

the guarantor those defenses which
he could have set up against the
creditor at the time the payment was
made.
BOND
An undertaking that is sufficiently

secured, and not cash or currency.
Effect of Repeat Payment by debtor:

GENERAL RULE: Before guarantor pays
the creditor, he must first notify the debtor
(Art. 2068). If he fails to give such notice
and the debtor repeats payment, the
guarantor can only collect from the creditor
and guarantor has no cause of action
against the debtor for the return of the
amount paid by guarantor even if the
creditor should become insolvent.
Bondsman
A surety offered in virtue of a

provision of law or a judicial order. He
must have the qualifications required
of a guarantor.
Judicial bonds constitute

merely a special class of contracts of
guaranty by the fact that they are given in
virtue of a judicial order.
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.
EXCEPTION: The guarantor can still claim

reimbursement from the debtor in spite of
lack of notice if the following conditions are
present:
a. the creditor becomes insolvent;
b. guarantor was prevented by
fortuitous event to advise the
debtor of the payment; and
c. the guaranty is gratuitous.
Art. 2066
PLEDGE, MORTGAGE AND

ANTICHRESIS
Art. 2071
Provides for the

enforcement of the
rights of the
guarantor/surety
against the debtor
after he has paid the
debt
Provides for his

protection before he
has paid but after he
has become liable
Gives a right of
action after payment
Protective remedy
before payment.
Substantive right
Preliminary remedy
I. Common Elements of
Mortgage, and Antichresis
Pledge,
A. Essential Requisites
(Keyword: SOD)
1. Secures the fulfillment of a
principal obligation;
2. Pledgor, mortgagor, antichretic
debtor must be the absolute
owner of the thing pledged or
mortgaged; and
3. Pledgor, mortgagor, antichretic
debtor must have free disposal of
Extinguishment of guaranty
54


Institute of Law
their property, or be legally

authorized for such purpose.
principal
obligation
with
the
understanding
that
when
the
obligation is fulfilled, the thing
delivered shall be returned with all its
fruits and accessions.
Third persons can pledge

or mortgage their own property to secure
the principal obligation.
B. Prohibition against Pactum

Commissorium
Pactum Commissorium
Stipulation whereby the thing

pledged or mortgaged, or under
antichresis shall automatically become
the property of the creditor in the
event of non-payment of the debt
within the term fixed.
GENERAL RULE: Pactum Commissorium
is forbidden by law and is declared null
and void.
Special Requisites (in addition to

the common essential requisites):
1. Possession of the thing pledged
must be transferred to the creditor or
a third person by agreement;
2. It can only cover movable property
and incorporeal rights evidenced by
documents of title; and
3. The description of the thing pledged
and the date must appear in a public
instrument to bind third persons, but
not for the validity of the contract.
C. Capability to secure all kinds of

obligations, i.e. pure or conditional
Kinds:
1.
Conventional
created by contract
2.
Legal created
by operation of law (examples: Art.
546, 1731 and 1914 NCC) (1994,
2004 Bar Exams)
Unless stipulated otherwise, pledge
extends to the fruits, interests or
earnings of the thing.
D. Indivisibility
PLEDGOR
EXCEPTION:
The
pledgee
may
appropriate the thing pledged if after the
first and second auctions, the thing is not
sold.
RIGHTS
GENERAL RULE: A pledge, mortgage, or

antichresis is indivisible.
OBLIGATIONS
To demand return in To advise the

case of reasonable
pledgee of the flaws
grounds to fear
of the thing
destruction or
impairment of the
thing without the
pledgees fault,
subject to the duty of
replacement
EXCEPTIONS:
1. Where each one of several things
guarantees a determinate portion
of the credit
2. Where only a portion of the loan
was released
3. Where there was failure of
consideration.
To bid and be
preferred at the
public auction
E. When the principal obligation

becomes due, the things in which the
pledge, mortgage, or antichresis
consists may be alienated for the
payment to the creditor.
Not to demand the

return of the thing
until after full
payment of the debt
PLEDGEE
RIGHTS
1. To bring actions
pertaining to an
owner
F. Pledgor, mortgagor, antichretic

debtor retains ownership of the thing
given as a security
2. To sell at public
auction in case of
reasonable grounds
to fear destruction or
impairment of the
thing without his
fault
PLEDGE
A contract wherein the debtor

delivers to the creditor or to a third
person a movable or document
evidencing incorporeal rights for the
purpose of securing fulfillment of a
55

OBLIGATIONS
1. Not to use thing
unless authorized or
by the owner or its
preservation
requires its use
2. Take care of the
thing with the
diligence of a good
father of a family

Institute of Law
3. Option to demand
replacement or
immediate payment
of the debt in case of
deception as to
substance or quality
4. To sell at public
auction in case of
non-payment of debt
at maturity
5. To bid at the
public auction
6. To appropriate
the thing in case of
failure of the 2nd
public auction
7. To retain excess
value received in the
public sale
8. To possess the
thing
9. To object to the
alienation of the
thing
10. To retain the
thing until after full
payment of the debt
4. Sale must be with the intervention

of a notary public
3. Not to deposit the

thing with a 3rd
person unless so
stipulated
Effect of sale of the thing pledged:

1. The sale of the thing pledged shall
extinguish the principal obligation,
whether or not the proceeds of the
sale are equal to the amount of
the principal obligation
2. If the price of the sale is more than
the amount due the creditor, the
debtor is not entitled to the excess
unless the contrary is provided
3. If the price of the sale is less, the
creditor is not entitled to recover
the deficiency
4. Responsibility for
acts of agents and
employees as
regards the thing
5. To advise pledgor of
danger to the thing
6. To advise pledgor of
the result of the public
auction
REAL ESTATE MORTGAGE
A contract whereby the debtor

secures to the creditor the fulfillment
of a principal obligation, specially
subjecting to such security immovable
property or real rights over immovable
property in case the principal
obligation is not complied with at the
time stipulated.
11. To apply said

fruits, interests or
earnings to the
interest, if any, then
to the principal of
the credit
As an accessory contract, its

consideration is that of the principal
contract from which it receives life.
Special Requisites (in addition to the

common essential requisites): (Keyword:
RIP)
1. It can cover only immovable
property and alienable real rights
imposed upon immovables;
2. It must appear in a public
instrument; and
3. Registration in the registry of
property is necessary to bind third
persons, but not for the validity of
the contract.
Prohibition against double pledge
Property which has been lawfully

pledged to one creditor cannot be
pledged to another as long as the first
one subsists.
Possession of a creditor of the

thing pledged is an essential requisite
of pledge.
Extinguishment of Pledge
(Keyword: PSRR)
1. Payment of the debt
2. Sale of thing pledged at public
auction
3. Return of the thing pledged by the
pledge to the pledgor
4. Statement in writing by the
pledgee that he renounces or
abandons the pledge
Kinds: (Keyword: VEL)

1. Voluntary agreed to by the
parties
2. Legal one required by law
Requirements for sale of thing pledged

at public auction:
1. The debt is due and unpaid
2. Sale must be at a public auction
3. there must be notice to the
pledgor and owner, stating the
amount due
56


Institute of Law
3. Equitable one which, although

lacking the formalities of a
mortgage, shows the intention of
the parties to make the property a
security for a debt.
PLEDGE
Absent express stipulation

to the contrary, the mortgage includes the
accessions, improvements, growing fruits
and income of the property.
Special Rights:
1. Mortgagor - To alienate the
mortgaged property but the mortgage
shall remain attached to the property.
2. Mortgagee - To claim the debt from a
3rd person possessing of the property.
REAL MORTGAGE
Constituted on
movables
Constituted on
immovables
Property is delivered
to pledgee or by
common consent to a
third person
Delivery is not
necessary
Not valid against

third persons unless a
description of the
thing pledged and
date of pledge
appear in a public
instrument
Not valid against

third persons unless
registered
Generally,
mortgagor retains possession. If the
possession
is
transferred
to
the
mortgagee, it must not expressly be for
purpose of applying the fruits to the
interest then to the principal of the credit,
for then it would be an antichresis.
mortgagor reacquires or buys back the

property which may have passed
under the mortgage, or divests the
property of the lien which the
mortgage may have created.
Kinds: (1999 Bar)

1. Equity of Redemption right of
mortgagor to redeem the mortgaged
property after his default in the
performance of the conditions of the
mortgage but before the sale of the
mortgaged property or confirmation of
the sale. Applies to judicial foreclosure
of real mortgage and chattel mortgage
foreclosure.
2. Right of Redemption right of
mortgagor to redeem the mortgaged
property within one year from the date
of registration of the certificate of sale.
Applies
only
to
extrajudicial
foreclosure of real mortgage. (See
Sec. 47, R.A. 8791)
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:
1. Judicial ordinary action for
foreclosure under Rule 68 of the
Rules of Court
2. Extrajudicial when mortgagee is
given a special power of attorney
to sell the mortgaged property by
public auction, under Act No. 3135
It is the transaction by which the
ANTICHRESIS (1989 Bar)
A contract whereby the creditor

acquires the right to receive the fruits
of an immovable of the debtor, with
the obligation to apply them to the
payment of the interest, if owing, and
thereafter to the principal of his credit.
Should
there
remain a balance due to the
mortgagee after applying the proceeds
of the sale, the mortgagee is entitled
to recover the deficiency.
Special Requisites (in addition to the

common essential requisites):
(Keyword: WUDF)
1. It can cover only the fruits of an
immovable property;
2. Delivery of the immovable is
necessary for the creditor to
receive the fruits;
Stipulation of upset price or tipo
It is a stipulation of minimum price

at which the property shall be sold, to
become operative in the event of a
foreclosure sale at public auction. It is
null and void.
ANTICHRESIS
Redemption
Property is delivered
to creditor
57

REAL MORTGAGE
Debtor usually
retains possession of
the property

Institute of Law
3. Amount of principal and interest

must be specified in writing; and
4. Express agreement that debtor
will give possession of the
property to creditor and that the
latter will apply the fruits to the
interest, if any, then to the
principal of his credit.
made for the purpose of securing the

obligation specified in the conditions
thereof and for no other purposes and
that the same is a just and valid
obligation and one not entered into for
the purpose of fraud.
Foreclosure sale
in chattel mortgage is by public auction
under Act No. 1508, but the parties may
stipulate that it be by private sale.
Obligations of antichretic creditor:

1. To pay taxes and charges on the
estate, including necessary expenses
Creditor may avoid said obligation
by:
a.
compelling
debtor
to
reacquire enjoyment of the
property or
b.
by stipulation to the
contrary.
2. To apply all the fruits, after receiving
them, to the payment of interest, if
owing, and thereafter to the principal
3. To render an account of the fruits to
the Debtor
The creditor may

maintain an action for the deficiency,
except if the chattel mortgage is
constituted as security for the purchase of
personal property payable in installments.
ANTICHRESIS
PLEDGE
Refers to real
property
Refers to personal
property
Perfected by mere
consent
Perfected by delivery
of the thing pledged
Creditor acquires
Creates a real over
only the right to
the property
receive the fruits of
the property, hence, it
does not produce a
real right
CHATTEL MORTGAGE
A contract by virtue of which

personal property is recorded in the
Chattel Mortgage Register as a
security for the performance of an
obligation.
Special Requisites (in addition to
the common essential requisites):
(Keyword: PRAD)
1. It can cover only personal or
movable property in general;
however, the parties may treat as
personal property that which by its
nature would be real property;
2. Registration of the mortgage with
the Chattel Mortgage Register
where the mortgagor resides; if
property is located in a different
province, registration in both
provinces required;
3. Description of the property as
would enable the parties or other
persons to identify the same after
reasonable
investigation
and
inquiry; and
4. Accompanied by an affidavit of
good faith to bind third persons,
but not for the validity of the
contract.
Chattel Mortgage Pledge
The creditor, unless

there is stipulation
to the contrary, is
obliged to pay the
taxes and charges
upon the estate
The creditor has no

such obligation
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
Only equity of
redemption is available to the mortgagor;
the latter can no longer redeem after the
confirmation of the foreclosure sale.
Affidavit of Good Faith
Oath in a contract of chattel

mortgage
wherein
the
parties
"severally swear that the mortgage is
58


Institute of Law
CHATTEL
MORTGAGE
Delivery of the
personal property to
the mortgage is not
necessary
PLEDGE
Delivery of the thing
pledged is necessary
2.
of real or personal property or liens

(Art. 2243). Hence, they are not
included in the insolvent debtor's
assets.
Ordinary Preferred Credits those
listed in Art. 2244 as amended by Art.
110 of the Labor Code.
Common Credits those listed under
Art. 2245, which shall be paid pro rata
regardless of dates.
registration in the
registration not
Chattel Mortgage
necessary to be valid
Registry is necessary
for its validity
3.
If property is
foreclosed, excess
over the amount due
goes to the debtor
Debtor is not
entitled to excess
unless otherwise
agreed or except in
case of legal pledge
Ordinary Preferred and Common

Credits cover only free property of the
debtor, or those not subjected to Special
Preferred Credit.
If there is deficiency
after foreclosure,
creditor is entitled to
deficiency from the
debtor, except under
Art. 1484
If there is deficiency,
creditor is not
entitled to recover
notwithstanding any
stipulation to the
contrary
A. Preferred Credits with Respect to

Specific Movable Property
(Keyword: T-M-V-P-M-L-S-T-C-H-C-R-D)
1. Taxes
2. Malversation by public officials
3. Vendors lien
4. Pledge, Chattel Mortgage
5. Mechanics lien
6. Laborers wages
7. Salvage
8. Tenancy
9. Carriers lien
10. Hotels lien
11. Crop loan
12. Rentals 1 year
13. Deposit
Note: The foregoing enumeration is not an
order of preference
CONCURRENCE
OF CREDITS
AND
PREFERENCE
CONCURRENCE OF CREDITS
Possession by
two or more creditors of equal rights or
privileges over the same property or all of
the property of the debtor.
PREFERENCE OF CREDITS
Right held by a creditor to

be preferred in the payment of his claim
above others out of the debtors assets.
The rules apply when two

or more creditors have separate and
distinct claims against the same debtor
who has insufficient property.
Property exempt from liability for
fulfillment of obligation:
1. Present property those provided
under Arts. 155 and 205 of the Family
Code, Sec. 13, Rule 39 of the Rules of
Court, and Sec. 118 of the Public Land
Act
2. Future property
3. Property under legal custody and
those
owned
by
municipal
corporations
necessary
for
governmental purposes
B. Preferred Credits with Respect to

Specific Immovable Property
(Keyword: T-V-C-L-M-E-R-W-C-P)
1. Taxes
2. Vendors lien
3. Contractors lien
4. Lien of material men
5. Mortgage
6. Expenses of preservation
7. Recorded attachments
8. Warranty in partition
9. Conditional donations
10. Premiums for 2 years insurers
Note: The foregoing enumeration is not an
order of preference
General Categories of Credit:

1. Special Preferred Credits - those
listed in Arts. 2241 and 2242 shall be
considered as mortgages and pledges
C. Order of Preference with Respect to

Other Properties of the Debtor
(Keyword: F-E-W-W-S-S-F-L-T-T-D-A)
1. Funeral Expenses
59


Institute of Law
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Expenses of last illness

Wages of employees 1 year
Workmens compensation
Support for 1 year
Support during insolvency
Fines in crimes
Legal expenses administration
Taxes
Tort
Donations
Appearing in public instrument or
final judgment
State where a persons liability is

greater than his assets
The inability of a person to pay his

debts as they become due in the
ordinary course of his business
A.
Voluntary an insolvent
debtor owing debts exceeding 1,000
pesos may file with the RTC in which he
has resided for at least 6 months
preceding the filing.
Refectionary Credit
Indebtedness incurred in the

repair or reconstruction of something
previously made, such repair or
reconstruction being made necessary
by the deterioration or destruction of
the thing as it formerly existed.
ORDER OF PREFERENCE OF CREDITS
(1983 Bar)
Arts. 2241 and 2242, jointly with

Arts. 2246 and 2249 establish a twotier order of preference:
1. First tier includes taxes, duties
and fees due on specific movable
or immovable property;
2. Second tier all other special
preferred (non-tax) credits shall be
satisfied pro-rata, out of any
residual value of the specific
property to which such credits
relate.
The pro-rata rule does not

apply to credits annotated in the Registry
of Property by virtue of a judicial order, by
attachments and executions, which are
preferred as to later credits.
Effect: UPON filing of the

petition, it IPSO FACTO takes
away and deprives the debtor of
the right to do or commit any act
of preference as to creditors,
pending the final adjudication
EFFECTS
OF
ORDER
DECLARING INSOLVENT:
a. All the assets of the debtor not
exempt from execution are
taken possession of by the
sheriff until the appointment of
a receiver or assignee.
b. Payment to the debtor of any
debts due to him and the
delivery to the debtor of any
property belonging to him and
the transfer of any property by
him are forbidden.
c. All civil proceedings pending
against the insolvent debtor
shall be stayed.
d. Mortgages or pledges duly
recorded and not dissolved
are not affected by the order.
B.
Involuntary on petition
of 3 or more creditors who are residents of
the Philippines, whose credits or demands
accrued in the Philippines and the amount
of which are in the aggregate of not less
than 1,000 pesos.
Credits which do not enjoy

any preference with respect to specific
property because they are not among
those mentioned in Arts. 2241 and 2242
and those while included in said articles
are unpaid because the value of the
property to which the preference refers is
less than the preferred credit or credits,
shall be satisfied in the order established
in Art. 2244 with reference to other real
and/or personal property.
Common credits or those

which do not fall under Arts. 2241, 2242,
and 2244 do not enjoy any preference and
shall be paid pro rata regardless of dates.
ACTS OF INSOLVENCY:
1. Intention to depart from the Philippines
to defraud creditors.
2. Absence from the Philippines to defraud
creditors.
3. Concealment of debtor to avoid legal
process.
4. Concealment or removal of his property
to avoid legal process.
5. Confession of judgment in favor of any
creditor to defraud the others.
6. Allowing default judgment in favor of a
creditor to defraud the others.
INSOLVENCY
60


Institute of Law
7. Making conveyance of his property to

defraud creditors.
8. Default of a merchant or tradesman to
pay his current obligation for a period of 30
days.
9. Failure to pay money on deposit or
received in a fiduciary capacity for 30 days
after demand.
10. Insufficiency of property to satisfy an
execution issued against him.
schedule of properties and

submission of the list of creditors:
2. Accepted in writing by a majority
of the creditors representing a
majority of the claims.
3. Made after depositing the amount
to be paid and cost in the place
designated by the court.
4. Terms must be approved or
confirmed by the court.
SUSPENSION OF PAYMENTS
Postponement, by court order,

of the payment of debts of one who,
while possessing sufficient property to
cover his debts, foresees the
impossibility of meeting them when
they respectively fall due.
DISCHARGE the formal and judicial

release of an insolvent debtor from his
debts with the exception of those
expressly reserved by law.
Debts not discharged:
a. Taxes
b. Those owing to secured creditors
c. Debts of a corporation
d. Debts created by fraud or
embezzlement
e. Debts created by defalcation
f. Discharged debt but revived by a
subsequent new promise to pay.
ASSIGNEE person elected by the

creditors or appointed by the court to
which an insolvent debtor makes an
assignment of all his properties for the
benefit of his creditors.
Creditors not entitled to vote in

the election of assignee:
a. those who did not file their claims
at least 2 days prior to the time
appointed for such election.
b. Those whose claims are barred by
the statute of limitations.
c. Secured creditors unless they
surrender their security or lien.
d. Holders of claims for unliquidated
damages arising out of pure torts.
SUSPENSION
Effects of assignment:
1. The assignee takes the property in
the conditions that the insolvent
held it;
2. Legal title is vested in the
assignee and control is vested in
the court.
3. All actions to recover all estate,
debts and effects of the insolvent
shall be brought by the assignee
and not by the creditors.
COMPOSITION an agreement between

the debtor and the creditors whereby the
latter for the sake of immediate or sooner
payment, agree to accept a dividend less
than the whole amount of their claims, to
be distributed pro rata;, in discharge and
satisfaction of the whole debt.
INSOLVENCY
1. Purpose is to
suspend or
delay payment
of debts.
1. Purpose is to
discharge the
debtor from
payment of debts.
2. Debtor has
sufficient
property.
2. Debtor has no
sufficient property.
3. Amount of
indebtedness is
not affected.
3. Creditors receive
less or none at all.
4. Number of
creditors is
immaterial.
4. 3 or more
creditors is
required.
WILLS AND SUCCESSION

Succession a mode of acquisition by
virtue of which the property, rights and
obligations to the extent of the value of the
inheritance of a person are transmitted
Requirements:
1. The offer of the terms must be
made after the filing in court of the
61


Institute of Law
through his death to another or others

either by his will or by operation of law.
(Art. 774, CC)
shall be valid insofar as they are not

inofficious.
c) In case of properties acquired by the
testator after the execution of the will: such
properties are not included among the
properties disposed of unless it should
expressly appear in the will itself that such
was the testators intention. This rule is
applicable only to legacies and devisees
and not to institution of heirs.
Basis of succession
1) Right of Private Property if the man
has the right to own private property, he
has the power to dispose of such property
freely, imposing such licit terms and
conditions as he might deem convenient.
2) Right of the family if the family is
recognized as the heart and soul of
society, the idea of succession must,
therefore, revolve around it.
3) Eclectic theories the raison detre of
the right of succession is the harmonious
combination of two institutions private
ownership and the family.
4)
The
recognized
necessity
of
perpetuating mans patrimony beyond the
limits of human existence. This necessity
in turn, is based on the necessity of giving
greater stability to the family and social
economy.
2) Objective element inheritance. It is

defined as the universality of all property
and transmissible rights and obligations
constituting the patrimony of the decedent
which are not extinguished by his death
and which are available for distribution
among the heirs after the settlement or
liquidation.
Extent of Inheritance
a) All of his property which are existing at
the time of his death. This refers to the
property available for distribution among
the persons called to the inheritance after
the settlement or liquidation.
Elements of Succession
1) Subjective elements it consist of the
decedent and those who are called to
succeed the decedent either by will or by
operation of law, such as the heirs,
devisees, or legatees. Decedent the
person whose property is transmitted
through succession, whether or not he left
a will.
b) All his transmissible rights and

obligations which are existing at the time
of his death. Monetary obligations are not
included in the inheritance. Under our
system of procedure for the settlement of
the estate of a deceased person, such
obligations of the decedent can only be
charged against his estate and not against
his heirs.
Heir is a person called to the whole or to

an aliquot portion of the inheritance either
by will or by operation of law.
c) All of the property and rights which may

have accrued to the hereditary estate
since the opening of the succession
(accretion)
Devisee - is a person to whom a gift of

real property is given by virtue of a will.
Legatee is a person to whom a gift of
real property is given by virtue of a will.
3) Causal element it refers to the fact of

death. The moment of death is the
HEIRS
Importance of the distinction:

a) In case of preterition/pretermission in
the testators will of one, some or all of the
compulsory heirs in the direct line, the
effect is to annul entirely the institution of
heirs while the legacies and devisees shall
be valid insofar as they are not inofficious.
b) In case of imperfect or defective
inheritance: the effect is to annul the
institution of heirs to the extent that the
legitime of the disinherited heir is
prejudiced while the legacies and devisees
DEVISEES/LEGATEES
Called to succeed to
an indeterminate or
aliquot part of the
decedents
hereditary estate
(universal title)
Called to succeed to
individual items of
property (particular
title)
Called to succeed
either by means of a
will or by operation
of law
Called to succeed by
means of a will
decisive moment when the heirs acquire a

definite right to the inheritance whether
62


Institute of Law
such right is pure, conditional or with a

term.
In these cases, the testator has

already completed the testamentary act of
making a will; what he entrusts to the third
person are merely the details thereof in
order to make the devise or legacy more
effective.
In case of presumptive death, the precise

moment of transmission of successional
rights shall be governed by the following:
a. The precise moment of transmission of
successional rights shall be at the time
when the absentee died. It must be proved
in accordance with the ordinary rules of
evidence.
Requisites before a person can make a

will
1. The testator must be at least 18 years
of age
A person is said to have

reached the age of 18 within the
meaning of the law only at the
commencement of the day which is
popularly known as his birthday.
2. He must be of sound mind. (Arts. 797,
798, CC)
It is Not necessary that

the testator in full possession of all his
reasoning faculties, or that his mind be
wholly unbroken, unimpaired, or
unshattered by disease, injury or other
cause. It shall be sufficient if at the
time of making the will testator knows
the:
a. Nature of estate to be disposed
of;
b. Proper objects of his bounty;
and
c. Character of the testamentary
act. (Art. 799. CC)
b. If not possible, then, he is deemed to

have died at the time of the expiration of
the period designated by law. If the
absentee disappeared under extraordinary
circumstances or under the danger of
death, he is deemed to have died at or
about the time when he disappeared.
Will is an act whereby a person is
permitted, with the formalities prescribed
by law, to control to a certain degree the
disposition of his estate, to take effect after
his death.
Characteristics of a Will (1989 Bar)
(Keyword: SUSACPERVID)
1.
It is a statutory act
2.
It is a unilateral act
3.
It is a solemn and formal act
4.
Executed with animus testandi
5.
Testator must be capacitated
to make a will
6.
It is a strictly personal act
The making of a will cannot be

delegated or left in whole or in part to
the discretion of a third person, or be
accomplished
through
the
instrumentality of an agent or attorney.
However, the mere act of drafting or
writing of the will does not fall within
the purview of the prohibition.
7.
Effective mortis causa
8.
It is revocable/ambulatory
9.
It is free from vitiated consent
10.
It is an individual act
11.
Disposes of the testators
estate
Formalities Required in the Execution

of Notarial or Ordinary Wills
1. in writing;
2. written in language or dialect known to
the testator;
3. subscribed at the end thereof by the
testator himself or by the testators name
written by some other person in his
presence and by his express direction;
4. Must be attested and subscribed by 3 or
more credible witnesses in the presence of
the testator and of one another;
5. Testator or person requested by him to
write his name and the instrumental
witnesses of the will shall also sign each
and every page thereof except the last on
the left margin;
6. All pages must be numbered
correlatively in letters placed on the upper
part of each page;
7. Must contain an attestation clause; and
8. Must be acknowledged before a notary
public by the testator and his witnesses.
(Arts. 804-806)
9. In case the Testator is Deaf or DeafMute, he must personally read the will, if
The testamentary acts that may be

delegated:
a) The power to distribute specific property
or sums of money which he may have left
in general to specific classes or causes
b) The power to designate the persons,
institutions, or establishments to which
such property or sums of money are to be
given or applied.
63


Institute of Law
able to do so; otherwise, he shall

designate 2 persons to read it and
communicate to him, in some practicable
manner, the contents thereof. (Art. 807,
CC)
10. In Case the Testator is Blind, the will
shall be read to him twice; once by one of
the subscribing witnesses, and again by
the notary public before whom the will is
acknowledged. (Art. 808, CC)
1. It must be Dated, Signed & entirely

Written by the hand of the testator himself
and;
2. It must be executed in a language or
Dialect known to testator.
Attestation act of witnessing execution

of will by testator in order to see and take
note mentally that those things are done
which the statute requires for the
execution of the will and that the signature
of the testator exists as a fact.
Subscription manual act of instrumental
witnesses in affixing their signature to the
instrument.
ATTESTATION
SUBSCRIPTION
Act of the senses
Act of the hand
Mental act
Mechanical act
Purpose: to render
available proof
during the probate
of the will, not only
pf the authenticity of
the will, but also of
its due execution
Purpose:
identification
A copy of a holographic
will may still be admitted to probate.
The SC ruled that the will maybe
allowed because comparison can still
be made in the standard writings of
the testator. Thus, in Gan vs. Yap (104
Phil. 509) it held that Perhaps it may
be proved by a photographic or
photostatic
copy,
or
even
a
mimeographed or carbon copy, or
other similar means, if any, whereby
the authenticity of the handwriting may
be exhibited and tested before the
probate
court.
Evidently,
the
photostatic or Xerox copy of the lost or
destroyed holographic will maybe
admitted because then the euthenics
of the handwriting of the deceased
can be determined by the probate
court.
Formalities of wills executed by

Filipinos abroad: (1990 Bar)
May
be
made
in
accordance with the forms required by,
either:
Lex loci celebrationis
Philippine laws
Attestation clause (A.C) shall provide:

a. the number of pages used upon which
the will is written
b. that the testator signed or expressly
caused another to sign the will and every
page thereof in the presence of the
instrumental witnesses
c. that the instrumental witnesses
witnessed and signed the will and all the
pages thereof in the presence of the
testator and of one another.
LIMITATION a joint will executed by

Filipinos abroad, even valid there as such,
is void.
If the will was already

probated abroad, there is no need to
probate here. What is required is that
there be a proceeding here to prove :
1. the due execution of the will in
accordance with the foreign laws;
2. the testator has his domicile in the
foreign country and not in the Philippines;
3. the will has been admitted to probate in
such foreign country
4. the foreign tribunal is a probate court;
and
5. the laws of the foreign country on
procedures and allowance of wills.
Formalities for wills executed by aliens
abroad (2002 Bar)
may
be
made
in
either of:
lex domicilii
lex nationalii
Substantial compliance doctrine
So long as the purpose

sought by the attestation clause is
obtained,
the
will
should
be
considered valid despite of the defect
in the said A.C
The defect however refers

not to substance but defect and
imperfection:
- in the FORM of the A.C, or
- in the LANGUAGE used in the
A.C
Formalities of a Holographic Will
64


Institute of Law
1. When there is a decree of LEGAL

SEPARATION.
2. When there is PRETERITION. (Art. 854,
CC)
3. When in the testators will there is a
LEGACY OF CREDIT against 3rd person
or of the remission of a debt of the
legatee, and subsequently, after the
execution of the will, the testator brings an
action against debtor for the payment of
his debt. (Arts. 935, 936, CC)
4. SUBSTANTIAL TRANSFORMATION of
specific thing bequeathed. (Art. 957, CC)
5. When heir, devisees or legatees
commits any of the ACTS OF
UNWORTHINESS. (Art. 1032, CC)
6. Marriage in bad faith; and
7. Void or annulled marriage
lex loci celebrationis

Philippine laws
Formalities for wills executed by aliens

in the Philippines:
may
be
made
in
either of:
lex nationalii

Joint Will
contains in one instrument

the wills of 2 or more person JOINTLY
signed by them
Reasons why VOID:
a. to allow as much as possible secrecy, a
will being a purely personal act;
b. to prevent undue influence by the more
aggressive testator on the other;
c. in case of a husband and wife, one may
be tempted to kill the other.
The prohibition applies to Filipinos
whether the will is executed in the
Philippines or abroad, and to
foreigners who execute joint wills in
the Philippines
2. By OVERT ACT, like tearing, burning,

canceling or obliterating
Requisites: (Keyword: SICOD)
1. that there be an overt act, specified by
law;
2. there must be completion at least of the
subjective phase ( the point of beginning
the commission to the point where he has
still control over his acts) of the overt act;
3. there must be animus revocandi or
intent to revoke;
4. the testator at the time of revocation
must have capacity to make a will;
5. the revocation must be done by the
testator himself, or by some other person
in his presence and by his express
direction.
Qualifications for Instrumental

Witnesses to the execution of a will
(Keyword: SADBRC)
1. He must be of sound mind;
2. He must be eighteen years of age or
more;
3. He must not be blind, deaf, or dumb;
4. He must be able to read and write; and
5. Domiciled in the Philippines
6. Not been convicted by final judgment of
falsification of document, perjury or false
testimony. (Art. 820, CC)
3. By WILL, CODICIL, or some other

writing executed as provided for in
case of wills.
The revoking will must be a valid will,
otherwise, there is no revocation.
Modes of revocation of wills

1. By IMPLICATION of Law
produced by operation of law

when certain acts or events take place
after a will has been made, rendering
void or useless either the whole will or
certain
testamentary
disposition
therein.
There may be certain changes

in the family or domestic relations or in
the status of his property, such that the
law presumes a change of mind on
the part of the testator.
Doctrine of Presumed Revocation

whenever it is established that the testator
had 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. (Rodelas vs. Aranza)
DOCTRINE OF DEPENDENT RELATIVE

REVOCATION
Where the testator cancels or destroys
a will or executes an instrument
intended to revoke a will with the
Instances under the Civil Code which

may be Considered Revocation by
IMPLICATION of Law
65


Institute of Law
present intention to make a new will

as a substitute for the old, and the
new will is not made or if made, fails to
take effect for some reason, the 1st
will shall be considered as not
revoked.
1. Identity of the will

2. Due Execution of the will
3. Testamentary Capacity of the testator
Grounds for Disallowance of Will
(Keyword: MISFPT)
1. Testator acted by MISTAKE or did not
intend that the instrument he signed
should be his last will and testament
2. Testator was INSANE or otherwise
mentally incapable of making a will.
3. SIGNATURE of the testator was
procured by fraud.
4. FORMALITIES required by law have not
been complied with
5. Procured by undue and IMPROPER
PRESSURE AND INFLUENCE on the part
of the beneficiary or some other person
6. It was executed through force or under
duress or the influence of fear or
THREATS. (Art. 839, CC)
REPUBLICATION
The process of re-establishing a will
which has become useless because it
was void, or had been revoked.
May be made by:
Re-execution of the original
will, or
Execution of a codicil
Effects of republication by codicil:
1. the codicil revives the previous will
2. the old will is republished as of the date
of the codicil
Requisites and limitations:
a. To republish a will void as to its form, all
the dispositions must be reproduced or
copied in the new or subsequent will
Has the effect as if the testator
made the will as of the date of
republication.
Hence, the properties transmitted
are those he owns at the time of
republication.
b. To republish a will valid as to its form
but already revoked, the execution of a
codicil which makes reference to the
revoked will is sufficient
DISALLOWANCE
REVOCATION
1. Given by judicial
order
2. Must always be for a
legal cause
3. As a rule, always
total (except when the
ground of fraud or
undue influence
1. Voluntary act of
the testator
2. With or without
cause
3. Partial or total affects
only certain
portions of the will)
Institution of heir an act by virtue of

which testator DESIGNATES in his will the
person or persons who are to succeed him
in his property and transmissible rights
and obligations. (Art. 840, CC)
REVIVAL
The restoration or reestablishment of a revoked will or

revoked provisions thereof, to be
effective once again, by virtue of legal
provisions.
If the 2nd will impliedly

revoked the 1st, the revocation of the
2nd will revives the 1st will
BUT, if the 2nd will

expressly revoked the 1st will, a
revocation of the 2nd will does not
revive the 1st will.
The rule is based on the

principle of
Requisites:
1. the will must be extrinsically valid
2. the institution must be valid intrinsically
legitime must not be impaired, the heir
must be certain and there should be no
preterition
3. the institution must be effective no
predecease, no repudiation, no incapacity
of heir.
Presumptions:
1. Presumption of Equality Heirs
instituted without designation of shares
shall inherit in equal parts.
INSTANTER the revocatory clause of

the 2nd will took effect immediately or at
the instant the revoking will was made.
2. Presumption of Individuality When

the testator institutes some heirs
PROBATE (1988 Bar)

The act of proving before a competent
court the: (Keyword: CID)
REPUBLICATION
REVIVAL
an act of the testator
takes place by
operation of law
66


Institute of Law
individually and others collectively, those

collectively designated shall be considered
as individually instituted, unless it clearly
appears that the intention of the testator
was otherwise.
3. Presumption of Simultaneity When

the testator calls to the succession a
person and his children they are all
deemed
to
have
been
instituted
simultaneously and not successively.
without prejudice to the right of

representation.
The share of a child or
descendant omitted in a will must first
be taken from the part of the estate
not disposed of by the will, if any; if
that is not sufficient, so much as may
be necessary must be taken
proportionally from the shares of the
other compulsory heirs
Note: the omitted heir gets his share not

only of the legitime, but also of the free
portion.
Institution based on a FALSE CAUSE

Requisites:
1. Cause for the institution must be stated
in the will;
2. Cause must be shown to be false; and
3. It must appear from the face of the will
that the testator would not have made the
institution had he known the falsity of such
cause.
Preterition is the omission in the testators

will of one, some, or all of the compulsory
heirs in the direct line, whether living at the
time of the execution of the will or born
after the death of the testator.
Even if the surviving

spouse is a compulsory heir, there is
no preterition even if she is omitted in
the testators will, for she is not in the
direct line. However, the same thing
cannot be said in the case of an
adopted child, whose legal adoption
by the testator has not been
questioned. Under Art. 39 of P.D. 603,
known as the Child and Youth Welfare
Code, adoption gives to the adopted
person the same rights and duties, as
if he were a legitimate child of the
adopter and makes the adopted
person a legal heir of the adopter.
(See also RA 8552)
Preterition or Pretermission the

OMISSION, whether intentional or not, in
testators will of one, some or all of the
COMPULSORY HEIRS IN THE DIRECT
LINE, whether living at the time of
execution of the will or born after the death
of the testator. (Art. 854, CC)
Rules in case of PREDECEASE:
TESTATE:
The
compulsory heir who predeceased the
testator, the heirs of the former
acquires
the
RIGHT
OF
REPRESENTATION only to the
legitime.
Requisites: (1988 Bar)

1. Heir omitted must be compulsory heir in
the direct line
2. Omission must be total and complete in
such a way that the omitted heir does not
and has not received anything at all from
the testator by any title whatsoever
3. Omitted heir must survive the testator.
(Nuguid vs. Nuguid, 17 SCRA 449)
Effect: The statement of a false cause for

the institution of an heir shall be
considered as not written.
INTESTATE: The right of

representation covers the entire share
of the person represented
Substitution of heirs is the

APPOINTMENT of another heir so that he
may enter into the inheritance in default of
the heir originally instituted. (Art. 857, CC)
PURPOSE:
1. to prevent the property from falling into
the ownership of people not desired by the
testator;
2. to prevent the effects of intestacy;
3. to allow the testator greater freedom to
help or reward those who, by reason of
services rendered to the testator, are more
worthy of his affection and deserving of his
bounty than intestate heirs.
Effects: (1988 Bar)
The preterition shall annul

the institution of heir;
But the devises and

legacies shall be valid insofar as they
are not inofficious.
If the omitted compulsory

heirs should die before the testator,
the institution shall be effectual,
67


Institute of Law
KINDS: (Keyword: SBRF)

1. Simple or common
In case the substitute enters into
the inheritance, he does so not as an heir
succeeding the 1st heir, but as an heir of
the testator.
Ex: T designates B as his heir and C as
Bs substitute.
Caucion Muciana a bond required to be

given before an heir may enter into
possession and enjoyment of a property.
The bond or security should be given in
favor of those who would get the property
if the condition be not complied with. The
favored persons are naturally the ones
who can demand the constitution of the
security.
2. Brief (when 2 or more substitutes take

the place of 1)
Ex: T institutes A as his heir, with B and C
as substitutes.
Compendious (when 1 takes the place of
2)
Ex: A and B are instituted, with C as
substitute.
This bond is required in the following

instances:
1) In case the institution is subject to a
negative potestative condition, heir to
whom it is imposed must give the security
required. (Art. 879)
2) In case of modal institution, the bond
must be furnished by the instituted heir or
heirs. (Art. 882)
3) In case the institution is subject to a
suspensive term, the legal heir must give
the security (Art. 885).
3. Reciprocal
Essence of which is that

the instituted heirs are also made the
substitutes of each other.
Ex: A and B are instituted, with the
provision
that
if
A predeceases,
renounces,
or
turns
out
to
be
incapacitated, B substitutes him, and vice
versa
Modal institution or institucion sub

modo, is one where the testator states:
(1)
the object of the institution, or
(2)
the purpose of application of the
property left by the testator, or
(3)
the charge imposed by the
testator upon the heir. (Art. 882) (2002
Bar)
4. Fideicommissary (Art. 858, CC)

(2002 Bar)
Requisites/Limitations: (1988 Bar)
a. A first heir (fiduciary heir) called
primarily to the enjoyment of the estate.
b. A second heir (fideicommissary heir).
c. An obligation clearly imposed upon 1st
heir to preserve and transmit to the 2nd heir
the whole part of the estate.
d. 1st and 2nd heirs must be only one
degree apart.
e. Both heirs must be alive at the time of
the testators death;
f. Must be made in an express manner;
g. Must not burden the legitime;
h. Must not be conditional.
CONDITIONAL
The Supreme Court ruled

that the word degree means
generation
(Testate
Estate
of
Ramirez,111 SCRA 704)
Disposition Captatoria the condition

that the heir shall make some provision in
his will in favor of the testator or of any
other person. Under the law, not only the
condition but the entire testamentary
disposition shall be void. (Art. 875, CC).
The reason for this is that succession is an
act of liberality and not a contractual
agreement.
MODAL
The condition must

happen or be
fulfilled in order for
the heir to be
entitled to succeed
the testator
A mode merely
imposes an
obligation upon the
heir, devisee or legatee
but it does not affect
the
efficacy of his rights to
the succession
The condition
suspends but does
not obligate
The mode obligates

but does not suspend
The condition must

clearly appear from
the will itself that
such was the
intention of the
testator
In case of doubt, the

institution is modal
If the condition is
suspensive, even if the
heir wants to
give security, he will
not be allowed to get
the property in the
meantime; instead the
property will be
placed under
administration
The inheritance can be

immediately
demanded, provided
that security is given
68


Institute of Law
Rules Regarding Conditions Not To

Marry
1. ABSOLUTE PROHIBITION
a) to contract first marriage - void
b) to remarry void
except:
a) imposed on a widow or widower by
deceased spouse
b) imposed on widow or widower by
ascendants or descendants of the
deceased spouse. (Art. 874, CC)
COMPULSORY HEIRS
If the testator is a
legitimate person
2. RELATIVE PROHIBITION
a) to contract a first marriage valid,
unless so onerous or burdensome
b) to remarry valid, unless so onerous or
burdensome.
Extrajudicial settlement of estate:
1. The decedent left no will
2. The estate has no debts
3. Heirs are all of age or the minors are
represented by their legal or judicial
representative.
4. By means of a public instrument filed in
the Office of the Register of Deeds.
If the partition is made

orally, the same is valid but will not
prejudice 3rd person.
In the event that the heirs

should disagrees to the division of the
estate, a special proceeding for the
settlement of the estate is no longer
necessary but only a simple action for
partition would be sufficient provided
that the requirements set forth for
what
should
have
been
an
extrajudicial settlement are all present.
If the testator is an
illegitimate
person
1. Legitimate
children and
descendants
1. Legitimate
children and
descendants
2. In default of the
foregoing,
legitimate
parents and
ascendants
2. Illegitimate
children
3. Widow or
widower
3. In default of the
foregoing,
illegitimate
parents
4. Illegitimate
children
4. Widow or
widower
Reserva troncal a system of reserva by

virtue of which an ascendant who inherits
from his descendant any property which
the latter may have acquired by gratuitous
title from another ascendant, brother or
sister is obliged to reserve such property
as he may have acquired by operation of
law for the benefit of relatives who are
within the 3rd degree and who belong to
the line from which said property came.
(Art. 891, CC) (1987 Bar)
Personal Elements of Reserva Troncal
1. Ascendant, brother or sister, from whom
descendant (propositus) has acquired the
property by gratuitous title;
2. Descendants-propositus from whom the
ascendant-reservista in turn had acquired
the property by operation of law;
3. Ascendantreservista who is obliged to
reserve the property; and
4. Relatives of the propositus, known as
reservatarios who are within the 3rd degree
and who belong to the line from which said
property came. (Dir of Lands vs. Aguas, 63
Phil. 279)
Legitime that part of the testators

estate which he cannot dispose of
because the law has reserved it for certain
heirs who are called compulsory heirs.
(Art. 886, CC)
Requisites of Reserva Troncal

1. The property should have been
inherited by operation of law by an
ascendant from his descendant upon the
death of the latter;
2. The property should have been
previously acquired by gratuitous title by
the descendant from another ascendant or
brother or sister; and
3. The descendant should have died
without legitimate issue in the direct
descending line who could inherit from
him.
Compulsory heirs: (1988, 1977 Bar)

PRIMARY gets their legitime even in the
presence of the other primary compulsory
heirs and even in the presence of the
secondary compulsory heirs;
SECONDARY inherit only in the
absence of legitimate children and
descendants.
69


Institute of Law
Requisites in order that the relatives of

the descendant-propositus can qualify
as reservatarios
1. They must be legitimate relatives of the
descendant-propositus and of the origin of
the property
2. They must be related to the
descendant-propositus within the third
degree
3. They must belong to the line from which
the reservable property came from
4. They must survive the ascendantreservista
7.
DISTRIBUTION of the estate in
accordance with the will of the testator
Collation
fictitious
mathematical
process of adding the value of the thing
donated to the net value of the hereditary
estate applicable to both donations to
compulsory heirs or strangers.(1978, 1977
Bar)
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.
Causes for Extinguishment of Reserva

Troncal
1.
DEATH of ascendant reservista.
2.
DEATH of all relatives of the
descendant-propositus within the 3rd
degree who belong to the line where the
property came from.
3.
LOSS of the reservable property
not due to the fault or negligence of the
ascendant reservista.
4.
Acquisition of the reservista of the
reservable property through LACHES on
the part of the reservatarios.
5.
RENUNCIATION
by
the
reservatarios.
6.
REGISTRATION of the reservable
property under the Land Registration Law
as free property.
7.
Acquisition of the reservista or 3rd
person of the reservable property by
PRESCRIPTION. (Arroyo vs. Gerona, 58
Phil. 226)
Actual act of restoring to the

hereditary estate that part of the donation
which is inofficious in order not to impair
the legitime of compulsory heirs.
FORMULA for computing NET
HEREDITARY ESTATE (NHE)
Property left at the time of death

Debts/charges
Collationable donations
NHE
Donations to children charged to
their legitimes
Donations to stranger
charged to free portion
Disinheritance the act of the testator in

depriving a compulsory heir of his
inheritance for causes expressly stated by
law. (Art. 915, CC)
Procedure in the Distribution of the

Estate if there are Donations
1.
Determination of the VALUE OF
THE ESTATE at the time of the testators
death.
2.
Determination
of
ALL
DEDUCTIBLE DEBTS & CHARGES which
are chargeable to the estate.
3.
Determination
of
the
NET
HEREDITARY ESTATE by deducting all
the debts and charges from the value of
the estate.
4.
COLLATION of the value of all
donations inter vivos to the net value of
the estate.
5.
Determination of the amount of
LEGITIME from the total thus found.
6.
Imputation of the value of the
DONATION INTER VIVOS against the
legitime of the donee, if made to a
compulsory heir or against the free
portion, if made to a stranger.
Requisites of VALID DISINHERITANCE:

(Keyword: VELTETSIR)
1. Valid will;
2. Made expressly;
3. For a legal cause;
4. True cause;
5. Existing cause no condition or
preventive;
6. The disinheritance must be total or
complete;
7. The cause must be stated in the will;
8. The heir disinherited must be clearly
identified
9. The will must not be revoked.
EFFECTS:
Affects both the legitime and

the free portion.
The children and descendants

of the person disinherited shall
70


Institute of Law
have the right of representation

with respect to the legitime;
The disinherited heir shall not
have the usufruct or administration
of the property received by his
descendants
by
right
of
representation.
2. When a C or D leads a
DISHONORABLE
or
DISGRACEFUL
LIFE.
3. Conviction of a CRIME w/c carries with
it the penalty of CIVIL INTERDICTION.
4. When a C or D by FRAUD, violence,
intimidation or undue influence causes the
testator to make a will or to change one
already made.
5. C or D has been found guilty of an
ATTEMPT against the life of the testator,
his or her spouse, descendants or
ascendants.
6. MALTREATMENT of the testator by
word or deed, by child or descendant.
7. C or D has ACCUSED the testator of a
crime for w/c the law prescribes
imprisonment for 6yrs or more, if the
accusation has been found groundless.
8. A refusal without justifiable cause to
SUPPORT the parent or ascendant who
disinherits such C or D. (Art. 919, CC)
INEFFECTIVE DISINHERITANCE:
a. No cause stated in the will;
b. Not a true cause (denied by the
disinherited heir and not proven by the
instituted heir)
c. Not a legal cause (as provided by law)
d. Subsequent reconciliation
EFFECTS:
1. institution of heir is annulled in so far as
it may prejudice the legitime of the person
disinherited
2.devises/legacies and other testamentary
dispositions remain VALID to the extent as
will not impair the legitime.
VALID
DISINHERITANCE
B. PARENTS (P) or ASCENDANTS (A),

legitimate or Illegitimate
1. When the P or A has been CONVICTED
of ADULTERY or CONCUBINAGE with the
spouse of the testator.
2. LOSS of parental authority for causes
specified in the Family Code.
3. When the parents have abandoned their
children or INDUCED their daughters to
live a corrupt or immoral life, or attempted
against their virtue.
4. When the P or A by FRAUD, violence or
already made.
5. When the P or A has been convicted of
an ATTEMPT against the life of the
testator, his or her spouse, descendants or
ascendants
6. Refusal to SUPPORT the children or
descendants w/o justifiable cause
7. When the P or A has ACCUSED the
testator of a crime for which the law
prescribes imprisonment for 6yrs. or more,
if the accusation has been found
groundless;
8. An attempt by one of the PARENTS
against the life of the other, unless there
has been reconciliation between them.
(Art. 920, CC)
PRETERITION
Always intentional
Omission may
either be intentional or
unintentional
Cause must always

be true and legal
May be w/ cause or
w/o cause
Disinherited heir
does not inherit
Annuls the
institution of heirs,
and therefore, heir
inherits
A will is always
required
May exist w/ or
w/o a will as when
everything has
been given to only
one of several
compulsory heirs
by way of donation
inter vivos
May be valid when all

the requirements of
the law are complied
with.
The institution is
always void, except
when the preterited
heir predeceases
the testator.
LEGAL CAUSES for the disinheritance

of compulsory heirs: (1977 Bar)
A. CHILDREN (C) or DESCENDANTS
(D), Legitimate or Illegitimate
1. When a child or descendant has been
convicted
of
ADULTERY
or
CONCUBINAGE w/ the spouse of the
testator;
C. SPOUSE
1. When the spouse has been convicted of
an ATTEMPT against the life of the
testator, his or her descendants or
ascendants
71


Institute of Law
2. Unjustifiable refusal to SUPPORT the

children or the other spouse
3. When the spouse by FRAUD, violence,
already made
4. When the spouse has ACCUSED the
testator of a crime for which the law
prescribes imprisonment for 6yrs. or more,
if accusation has been found groundless
5. When the spouse has given grounds for
the LOSS OF PARENTAL AUTHORITY
6. When the spouse has given cause for
LEGAL separation (Art. 921, CC)
5. Not belonging to the Inoperative

testator at the time of
the wills execution and
thereafter.
6. Not belonging to the Operative
the wills execution and
thereafter but the
testator has ordered
that the thing be
acquired in order that it
be given to a legatee
or devisee.
7. Not belonging to the Void
testator at the time the
will is executed and the
testator erroneously
believed that the thing
pertained to him
Effect of Reconciliation:
1. A subsequent reconciliation between the
offender and the offended person deprives
the latter of the right to disinherit; and
2. Renders ineffectual any disinheritance
that may have been made.
8. Not belonging to the Effective

testator at the time the
will is executed but
afterwards came into
the possession of the
testator by whatever
title.
Legacy testamentary disposition by

virtue of w/c a person is called by the
testator to inherit an individual or specific
personal property.
Devise testamentary disposition by
virtue of which as person is called by the
testator to inherit an individual or specific
real property.
LEGACIES AND DEVISES
STATUS OF
PROPERTY
BEQUEATHED OR
DEVISED
EFFECT ON THE
LEGACY OR DEVISE
1. Belonging to the
the execution of the
will and up to his
death.
Operative
2. Belonging to the
will but alienated in
favor of a third person.
Revoked
3. Belonging to the
favor of the legatee or
devisee gratuitously.
No revocation
Clear intention to
Comply with legacy or
devise.
4. Belonging to the
favor of the legatee or
devisee onerously.
The legatee or devisee

can claim
reimbursement from
the heir or
estate.
9. Already belonged to
the legatee or devisee
at
the time of the
execution of the will
even if another person
may have some
interest
therein.
Ineffective
10. Already belonged

to the legatee or
devisee
at the time of the
execution of the will
even if it may have
been subsequently
alienated by him.
Ineffective
11. Testator had

knowledge that the
thing bequeathed
belonged to a third
person and the legatee
or devisee acquired
the property
gratuitously
after the execution of
the will.

can claim nothing by
virtue of the legacy or
devise.
12. Testator had

knowledge that the
thing bequeathed
belonged to a third
person and the legatee
or devisee acquired
the property by
onerous
title.

can claim
reimbursement from
the heir or
estate.
72


Institute of Law
Revocation of legacies and devisees:
If the testator transforms

the thing bequeathed in such a
manner that it does not retain either
the form or the denomination;
If the testator by any title

or for any cause alienates the thing
bequeathed or part thereof, in the
latter case the legacy or devise shall
be without effect only to the part thus
alienated;
If the thing bequeathed is

lost during the lifetime of the testator,
or after his death without the heirs
fault.
Succession the relatives of the

decedent who are in the direct descending
line shall exclude those who are in the
direct ascending or in the collateral line. In
default of the direct descending line, the
direct ascending line is preferred over the
collateral line.
Principle of proximity relatives of the
decedent nearest in degree shall exclude
the more remote ones. (Art. 962, CC) This
presupposes the fact that all relatives
should belong to the same line. There is
one exception to this rule and that is when
the right of representation properly takes
place.
Order of payment in case of

insufficiency of estate to cover legacies
and devises:
1. Renumenatory legacies or devises;
2. Legacies or devises declared by the
testator to be preferential;
3. Legacies for support;
4. Legacies for education;
5. Legacies or devises of a specific,
determinate thing which forms a part of the
estate;
6. All others pro rata. [Art. 950]
Representation a right created by

fiction of law, by virtue of which the
representative is raised to the place and
degree of the person represented, &
acquires the rights w/c the latter would
have if he were living or could have
inherited. (Art. 970, CC) (1988, 1977 Bar)
Proper
if
there
is
no
repudiation.
Instances of Legal or Intestate

Succession
1. If a person dies without a will or with a
void will or one which has subsequently
lost its validity;
2. When the will does not institute an heir
to, or dispose of all the property belonging
to the testator. Legal succession shall
govern property of which the testator has
not disposed.
3. If the suspensive condition attached to
the institution of an heir does not happen,
or if the heirs dies before the testator, or
repudiates the inheritance, there being no
substitution and accretion.
4. When the heir instituted is incapable of
succeeding, except in cases provided by
the Civil Code;
5. When there is preterition of a
compulsory heir in direct line;
6. If the testamentary disposition is subject
to a resolutory condition and such
condition was fulfilled;
7. If the testamentary disposition is subject
to a resolutory term and such term
expires;
8. in cases of ineffective testamentary
disposition. (Arts. 960,854, CC)
Takes place in the direct

descending line, but never in the direct
ascending line.
An adopted child has no
right of representation, neither can he
be represented.
Instances where the Right of

representation takes place (1988 Bar)
1. Testamentary Succession
a) Compulsory heir in direct descending
line predeceases testator
b) incapacity of the compulsory heir in
direct descending line
c) compulsory heir in direct descending
line is validly disinherited
2. Intestate Succession
a) Compulsory heir in the direct
descending line predeceases testator
b) incapacity of compulsory heir in the
direct descending line
RENUNCIATION:
A
renouncer
may
represent but may not be represented.
Order of Intestate Succession (1977
Bar)
A. Of a Legitimate Person
1. LEGITIMATE children or descendants
2. Legitimate parents or ASCENDANTS
3.ILLEGITIMATE Children or descendants
Preference of Lines in Intestate
73


Institute of Law
4. Surviving SPOUSE, subject to the

concurrent right of brothers and sisters,
nephews and nieces
5. BROTHERS and sisters, nephews and
nieces
6. Other COLLATERAL relatives within the
5th civil degree
7. STATE
1. Plurality of subjects (two or more

persons are called to the same property
pro indiviso).
2. Unity of object (the same inheritance,
legacy, or devise)
3. Vacant portion, and
4. Acceptance.
Persons absolutely incapacitated to
inherit
1. Those not living at the moment the
succession is opened (Art. 1025, par. 1,
CC)
2.
Individuals,
associations
and
corporations not permitted by law to inherit
(Art. 1027, No.6, CC);
3. Unknown persons. (Art. 845, CC)
B. Of an Illegitimate Person
1.
LEGITIMATE
CHILDREN
or
descendants
2.
ILLEGITIMATE
CHILDREN
or
descendants
3. PARENTS by nature
4. SURVIVING spouse subject to the
concurrent right of brothers and sisters,
nephews and nieces
5. BROTHERS and sisters, nephews and
nieces
6. STATE
Kinds of Relative Incapacity

1. Incapacity based on possible undue
influence (Art. 1027, CC);
2. incapacity based on public policy and
morality (Arts. 1028, 739, CC);
3. incapacity by reason of unworthiness
(Art. 1032);
4. incapacity by operation of law
Concurrence Theory first satisfy

legitime and then distribute disposable
portion, if any, pro-rata.
Exclusion Theory first satisfy the
legitime, and then give disposable portion,
if any, to the preferred heir in the order of
intestate succession.
Persons Incapacitated to Succeed by

Will
1. GUARDIAN with respect to the
testamentary dispositions made by the
ward before approval of final accounts,
even if the testator should die after the
approval thereof, but valid when guardian
is ascendant, descendant, brother or
sister, or spouse of the ward;
2. RELATIVES OF SUCH PRIEST or
minister w/in 4th degree, the church, order,
etc., to w/c such priest or ministry may
belong:
3. Persons with whom the testator is guilty
of ADULTERY or concubinage at the time
of the execution of the will
4. Persons found guilty of the SAME
criminal offense as the testator, when the
inheritance, legacy or devise is in
consideration thereof;
5. PUBLIC OFFICER or his or her spouse,
descendants or ascendants, when the
inheritance, legacy or devise is given by
reason of his or her office;
6. PRIEST who heard the confession of
the testator during the latters last illness,
or the minister of gospel who extended
spiritual aid to him during the same period;
7. Any attesting WITNESS of the
execution of the will or to the spouse,
parents, or children or anyone claiming
under them;
Provisions common to testate and

intestate succession
Accretion a right by virtue of which,
when 2 or more persons are called to the
same inheritance, devise or legacy, the
part assigned to the one who renounces or
cannot receive his share, or who died
before the decedent, is added or
incorporated to that of his co-heirs, codevisees, or co-legatees. (Art. 1015, CC)
Instances of the Right of Accretion
1. In Testamentary Succession
a. Repudiation
b. Predecease
c. Incapacity
d. Non-fulfillment of suspensive condition
imposed upon instituted heir
e. Ineffective testamentary disposition.
2. In Intestate Succession
a. Repudiation by a legal heir;
b. Incapacity of legal Heir;
c. Predecease of legal heir.
Requisites Of Accretion
(Keyword: PUVA)
74


Institute of Law
8.
INDIVIDUALS,
associations
or
corporations, not permitted by law to
inherit;
9. PHYSICIAN, surgeon, nurse, health
officer, or druggist who took care of the
testator during his last illness. (Arts. 1027,
1028, 739, CC)
for disinheritance, he thereby submits it to

the rules on disinheritance; and
2.
Reconciliation
renders
the
disinheritance ineffective.
Pardon - act of the testator in condoning
the cause of unworthiness and it must be
in writing.
Persons Incapacitated To Succeed By

Reason of Unworthiness
1. Any person who FALSIFIES or forges a
supposed will of the decedent;
2. Parents who have ABANDONED their
children or induced their daughters to live
a corrupt or immoral life, or attempted
against their virtue;
3. Any person who by FRAUD, violence, or
undue influence causes the testator to
make a will or to change one already
made;
4. Person who has been found guilty of an
ATTEMPT against the life of the testator,
his or her spouse, descendants or
ascendants;
5. Any person who by fraud, violence,
intimidation or undue influence PREVENT
another from making a will or from
revoking one already made, or who
supplants, conceals, or alters the latters
will;
6. Person who ACCUSED the testator of a
crime for which the law prescribes
imprisonment of 6yrs or more, if the
accusation has been found groundless;
7. Any heir of full age who, after having
knowledge of the violent death of the
testator, should fail to REPORT it to an
officer of the law within 1 month, unless
the authorities have already taken action;
this prohibition shall not apply to cases
wherein, according to the law, there is no
obligation to make an accusation;
8. Person who has been convicted of
ADULTERY or concubinage with the
spouse of the testator. (Art. 1032, CC)
EXPRESS PARDON
IMPLIED PARDON
Made by the
execution of a
document or any
writing in which the
decedent condones
the cause of
incapacity.
Effected when
testator makes a
will instituting the
unworthy heir with
knowledge of the
cause of incapacity.
Cannot be revoked
Revoked when the

testator revokes
the will or the
institution.
Acceptance and Repudiation of the

Inheritance
The repudiation of an inheritance shall
be made (PAP):
Public instrument
Authentic instrument
Petition presented to the

court having jurisdiction over the
testamentary or intestate proceedings.
COLLATION (1978, 1977 Bar)
WHO ARE OBLIGED WHAT TO COLLATE
TO COLLATE
An
Acceptance
and
Repudiation of Inheritance which is
purely free and voluntary always
retroacts to the moment of the death
of the decedent.
Effect of reconciliation when the

ground for disinheritance is also a
cause for incapacity by reason of
unworthiness:
1. The moment the testator uses one of
those causes of unworthiness as a cause
(1) Compulsory
heirs
Exceptions:
(a) When the
donor should
have so expressly
provided; and
(b) When donee
should have
repudiated his
inheritance.
Any property or right

received by
gratuitous title
during the testators
lifetime.
(2) Grandchildren
who survives
with their uncle
and aunts or
cousins and
inherits by
representation.
(a) All that they

may have from the
decedent during his
lifetime.
(b) All that their
parents would have
been obliged to bring
if alive.
The following
collation:
75

are
not
subject
to

Institute of Law
2. third person designated by the decedent

3. heirs themselves
4. competent court
1. Absolutely no collation:
Expenses for support,

education,
medical
attendance
(even in extraordinary illness),
apprenticeship, ordinary equipment,
customary gifts.
2. Generally not imputable to legitime:
a) Expenses incurred by parents in giving
their children professional, vocational or
other career UNLESS the parents so
provide or UNLESS they impair the
legitime.
b) wedding gifts by parents and
ascendants consisting of jewelry, clothing
and outfit
EXCEPT when they exceed 1/10 of the
sum disposable by will.
_ Take note that for purposes of addition
all donations are subject to collation,
except art. 1067.
When Partition cannot be demanded

(PAPU):
1. When expressly prohibited by the
testator himself for a period not exceeding
20 years.
2. When the co-heirs agreed that the
estate shall not be divided for a period
which shall exceed 10 years, renewable
for another 10 years.
3. When such partition is prohibited by
law.
4. When to partition the estate would
render it unserviceable for the use for
which it is intended.
Requisites of Legal Redemption in
favor of co-heirs:
There must be several coheirs;
One of them sells his

rights to a stranger;
Sale is made before

partition is effected;
Right of redemption must

be exercised by one or more co-heirs
within a period of one month counted
from the time they were notified in
writing by the co-heir vendor; and
Vendee is reimbursed for

the price of the sale.
SUMMARY IN THE DISTRIBUTION OF

ESTATE:
I-S-R-A-I RULE:
First, give effect to the

INSTITUTION of heirs;
SUBSTITUTION,
if
proper;
REPRESENTATION,
if
proper;
ACCRETION,
when
proper;
INTESTACY.
General Rule: Partitions made by the

testator cannot be impugned on the
ground of lesion.
Rules in intestacy:
Proximity rule
Direct descendants are

preferred over the direct ascendants
Equal
shares
among
relatives of equal degree
Exceptions:
I. When the legitime of compulsory heir is
thereby prejudiced; and
II. When it appears or may reasonably be
inferred that the intention of thetestator
was otherwise.
III. Effect of inclusion of intruder in
partition:
Between one true heir and several
mistaken heirs Partition is VOID
Between several true heirs and one
mistaken heir transmission to
mistaken heir is VOID
Through error or mistake, share of
true heir is allotted to mistaken heir
Partition shall not be rescinded unless
there be bad faith or fraud on the part
of other persons interested but the
latter shall be proportionately obliged
to pay to the person omitted the share
EXCEPTION:
A. Right of representation
B. Full blood brothers and sisters inherit
double the share of half-blood brother or
sister
IRON-BARRIER RULE
prohibits absolutely a succession AB
INTESTATO between the illegitimate
child and the legitimate relatives of the
father or mother of said illegitimate
child.
Partition and Distribution of the Estate

Who may effect partition:
1. decedent himself during his lifetime by
an act inter vivos or by will
76


Institute of Law
which belongs to him, but partition

with respect to the intruder is VOID.
SUMMARY OF DISTRIBUTIVE SHARE OF HEIRS
77


Institute of Law
Note: Illegitimate parents are excluded

in the distribution of the estate by the
presence
of
children,
whether
TABLE OF LEGITIMES
(TESTATE
SUCCESSION)
SURVIVING RELATIVE
1. legitimate children ALONE
TABLE OF INTESTATE
SHARES
(INTESTATE SUCCESSION)
NHE no. of leg.

children
NHE
ENTIRE ESTATE
3. illegitimate children
ALONE
NHE
ENTIRE ESTATE
4. illegitimate parents ALONE
NHE
ENTIRE ESTATE
5. surviving spouse ALONE
1/3 IF MARRIAGE IN
ARTICULO MORTIS
IF LIVING TOGETHER
FOR 5 YEARS AND IN
ARTICULO MORTIS
ENTIRE ESTATE
6. 1 legitimate child and

Surviving spouse
7. a. 2 0r more legitimate
children and
Surviving spouse
NHE number of
children
Same share as 1 legitimate
child
Consider the spouse as a child

and
estate by the total no.
b. 2 or more legitimate
children and
surviving spouse and
illegitimate children
NHE number of leg.

Children
Same share as 1 leg. Child
share of 1 leg. child
8. legitimate parents and

Surviving spouse
* satisfy legitimes first; then

distribute
the free portion pro-rata
(concurrence
theory)
9. illegitimate parents and

Surviving spouse
10. illegitimate children and

Surviving spouse
1/3
1/3
11. legitimate parents and

illegitimate children and
surviving spouse
1/8
2. legitimate parents ALONE
ENTIRE ESTATE
12. surviving spouse and

brothers/sisters/nephews/nieces.
legitimate or illegitimate
PROPERTY, OWNERSHIP AND ITS

MODIFICATIONS
78


Institute of Law
b. The object is placed on a building or

land
c. The installation was made by the owner
of the building or the land
d. It is attached in such a manner that it
reveals an intention to attach it
permanently.
Property - Anything which is or may be

the object of appropriation (Art 414, NCC).
Classification of Things: (Keyword:
CAN)
1. Res Communes-those that belong to
everybody.
2. Res Alicujus-those that are owned by a
person or a group of person.
3. Res Nullius-those which do not have
any owner.
2. Machinery, receptacles, instruments or

implements intended by the owner of
tenement for an industry or work which
may be carried on in a building or on a
piece of land, and which tend directly to
meet the needs of said industry or works
Requisites for immobilization:
a. The object must be either machinery,
receptacles, instruments or implements for
an industry or work;
b. The object is installed in a tenement;
c. The installation is by the owner of a the
tenement;
d. Industry or works are carried on in the
tenement.
e. The object carries out directly the
industry or work.
Immovable properties (Keyword: NIDA)

I. Real by NATURE (those which cannot
be moved from place to place):
1.
Land,
buildings,
roads
and
constructions of all kinds adhered to soil
2. Mines, quarries and slag dumps, while
the matter thereof forms part of the bed,
and waters either running or stagnant
II. Real by INCORPORATION (those
which are attached to an immovable in
such a manner as to form an integral part
thereof):
3. Animal houses, pigeon houses,

beehives, fishponds or breeding places of
similar nature, in case their owner has
placed them with intention to have them
permanently attached to the land, and
forming permanent part of it; animals in
these places are included
Requisites:
a. The structure is placed by the owner
b. The installation must be with the
intention to have them permanently
attached to the land and forming a
permanent part of it.
1. Trees, plants, and growing fruits, while

they are attached to the land or form an
integral part of an immovable
2. Everything attached to an immovable in
a fixed manner, in such a way that it
cannot be separated therefrom without
breaking the material or deterioration of
the object
It is the result which is

important; that it cannot be removed
without causing damage.
4. 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
3. Fertilizer actually used on a piece of

land
IV. Real by ANALOGY (those which are

considered immovable by operation of
law):
1. Contracts for public works, servitudes
and other real rights over immovable
property. Movable/personal Properties
1. Shares of stock of agricultural,
commercial
and
industrial
entities,
although they may have real estate
2. Those movables susceptible of
appropriation which are not included in the
preceding article
3. Real property which by any special
provision of law is considered personalty
IV. Real by DESTINATION (those which

are placed in an immovable for the use,
exploitation or perfection of such
immovable):
1. Statues, relics, painting or other objects
for use or ornamentation, placed in
buildings or lands by the owner of the
immovable in such a manner that it
reveals the intention to attach them
permanently to the tenements
Requisites for immobilization:
a. It is an object of ornamentation or object
of use
79


Institute of Law
4. Obligations and actions which have for

their object movables or demandable
sums, and
5. Forces of nature which are brought
under control by science
6. In general, all things which can be
transported from place to place without
impairment of the real property to which
they are fixed.
particularly
in
its
possession,
enjoyment, disposition, and recovery,
subject to no restrictions except those
imposed by the State or by juridical
transactions.
Traditional Elements of Ownership
(1977 Bar)
1. Right to consume or destroy or abuse
2. Right to possess
3. Right to use
4. Right to recover or vindicate
5. Right to enjoy
6. Right to the fruits
7. Right to encumber or alienate
8. Right to dispose
(Keyword: CUPFREED)
Properties of Public Dominion

1. Those intended for public use, such as
roads, canals, rivers, torrents, ports and
bridges constructed by the state, banks,
shore, roadsteads and other similar
character
may be used by anybody
may be owned by the

state, or
by LGUs
Doctrine of self-help (Art. 429)
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.
Requisites:
a. Person who employs force or violence
must be the owner or lawful possessor
b. That person must be in actual
possession
c. There must be actual or imminent
aggression which is unlawful
d. Only r easonable force is employed by
the owner or lawful possessor.
2. Those intended for some public service
Not for general use but for

some state function
Only the state may own

property for public service
There is no such thing as

property for public service for LGUs
Characteristics of Properties of Public
Dominion (Keyword: CVAP)
1. Outside the commerce of man
2. Cannot be appropriated
3. Cannot be subject matter of contracts
hence cannot be alienated
4. Cannot be acquired by prescription.
5. Cannot be subject to attachment or
execution
6. Cannot be burdened by voluntary
easement.
Sic utere tuo ut alienum non laedas

the owner may use the property only in
such a manner that it does not injure
others.
Private Ownership:
I. Patrimonial property of the state
Those which is not a part

of the public dominion
Property
of
public
dominion, when no longer intended for
public use or for public service, shall
form part of the patrimonial property of
the State.
Can be alienated only be

an authority of law (legislature)
II. Patrimonial property of LGUs
Interference
to
avert
imminent
danger/Doctrine of necessity (Art. 432)
Requisites:
a. The interference must be necessary to
avert imminent danger;
b. The threatened damage must be
greater than the damage caused to the
owner of the thing;
c. Only such interference as is necessary
shall be made in order to avert the
damage.
III. Patrimonial property of individuals
GENERAL RULE: Compensation may be

demanded by the property owner
Ownership (1977 Bar)
Independent and general

right of a person to control a thing
EXCEPTION: If the injury is
Caused by the property

owner and
80


Institute of Law
The
person
intervened was not at fault.
who
Limitations upon the right of ownership

(1977 Bar)
1. General limitations imposed by the
State for its benefit
a) the power of eminent domain
b) the police power
c) the power of taxation
2. Specific limitation imposed by law

(Keyword: LED PERIL)
a) 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
Applies to both ownership and

possession.
The complaint must allege the
existence of an apparently valid or
effective instrument or other claim
which is in reality void, ineffective,
voidable or unenforceable.
Can either be preventive or a remedial
action
If the plaintiff is in possession, then the
action to quiet is imprescriptible.
Requisites
of
Hidden
Treasure
(Keyword: HVO)
1. Hidden or unknown deposit
2. Of valuable objects
3. The lawful owner being unknown
Rules on hidden treasure:
If found in the land of the

finder the treasure belongs to the
discoverer/owner of the land.
If found in a land that is

not his to the finder and to the
owner of the land, building or other
property.
3. Limitations imposed by the party

transmitting the property either by contract
or by will,
4. Limitations imposed by the owner
himself, such as voluntary servitudes,
mortgages, pledges, and lease rights, and
Requisites for the application of the

rule regarding discovery of hidden
treasures by a stranger
1. The treasure must consist of money,
jewelry or other precious objects;
2. It must be hidden and unknown;
3. Its lawful ownership does not appear;
4. The discovery is by chance; and
5. The discoverer must be a stranger and
not a trespasser.
5. Inherent limitations arising from conflict

with other rights, such as those caused by
contiguity of property.
Actions available for recovery of
property
1. Personal Property
a) REPLEVIN under Rule 60 Revised
Rules of Court
2. Real Property
a) Forcible entry or unlawful detainer
For the recovery of the material or
physical possession and must be brought
in the MTC within 1 year from the date of
the forcible entry or unlawful possession.
b) Accion Publiciana
Plenary action to recover

possession upon mere allegation and
proof of a better right thereto.
Can only be brought after

the expiration of 1 year.
If
the
finder
is
a
trespasser: He is not entitled to any
share of the treasure.
If the finder is a laborer
hired to look for hidden treasure: He is
entitled to his wage or salary only.
f things found be of
interest to science or the arts: The
State may acquire them at their just
price, which shall be divided according
to the rules above.
Accession (1977 Bar)
Right of property owner to

everything which is produced thereby,
or incorporated or attached thereto,
either naturally or artificially. (Art. 440,
CC.)
c) Accion reivindicatoria
An action whereby the plaintiff
alleges ownership over a parcel of land
and seeks recovery of its possession.
Kinds of Accession:
1. Accession Discreta
d) Quieting of title
81


Institute of Law
The right pertaining to the owner of a thing

over everything which is produced thereby.
d. The soil deposits are comparatively

little.
e. The river must continue to exist
Operates ipso jure. However, the
additional area is not covered by a Torrens
title since it is not included therein. So, the
riparian owner must register the additional
area.
a) Natural fruits
Spontaneous products of the soil, and
the young and other products of animals
(Art. 442, CC.)
b) Industrial fruits
Those produced by lands of any
kind through cultivation or labor (Art. 442,
CC.)
c) Civil fruits
Rents of buildings, the

price of leases of lands and other
property and the amount of perpetual
or life annuities or other similar income
(Art. 442, CC).
Stock dividends are civil

fruits being surplus profit.
(b) Avulsion
the accretion which takes place
whenever the current of a river, lake, creek
or torrent segregates from an estate on its
bank a known portion of land and transfers
it to another estate. (Art. 459, CC);
Requisites: (Keyword: CSI)
a. The segregation and transfer must be
caused by the current of a river, creek or
torrent b. The segregation and transfer of
soil is sudden and abrupt
c. The portion segregated can be identified
GENERAL RULE: Fruits belong to the

owner
EXCEPTIONS: (Keyword: ULAPP)
a. possessor in good faith
b. usufruct
c. lease
d. antichresis
e. pledge
2. Accession Continua
The right pertaining to the owner
of a thing over everything which is
incorporated or attached thereto, either
naturally or artificially.
Note: In case of uprooted trees, the owner

of the land from where they came from
should claim the trees within 6 months.
However, recovery can be done within 4
years, the period allowed to recover
movables.
a) With regard to immovable property
The owner has up to 2

years to recover the portion of land
segregated. Failure to do so would
have the effect of automatically
transferring ownership over it to the
owner of the other estate.
(c) Change of river course

Takes place when a river bed is
abandoned through natural change in the
natural course of the waters (Art. 461,
CC);
Requisites:
(Keyword: PANES)
a. The change in the river course must be
sudden;
b. The change must be permanent;
c. The change must be natural
d. The river bed must be abandoned by
the government.
e. The river must continue to exist.
When a river or stream

suddenly changes its course to
traverse private lands, the owners of
the affected lands may not compel the
government from taking steps to revert
the river or stream to its former
course.
The owners of the lands

thus affected are not entitled to any
(1) Accession industrial, or that which

takes place in case of: (Keyword: BPS)
(a) building,
(b) planting,
(c) sowing. (Arts. 445 455, CC)
(2) Accession natural, which may be in the
form of either:
(a) Alluvion/alluvium
The accretion which lands adjoining
the banks of rivers, lakes, creeks, or
torrents gradually receive from the effects
of the currents of the waters (Arts. 457,
CC);
Requisites:
a. The accumulation of soil is gradual and
imperceptible
b. It is the result of the action of the water
of the river;
c. The land where the accretion tales
place is adjacent to the bank of the river.
82


Institute of Law
compensation
for
any
damage
sustained thereby.
However,
the
former
owners of the new bed shall be the
owners of the abandoned bed in
proportion to the area lost by each.
The
owners
of
the
affected lands may undertake to return
the river or stream to its old bed at
their own expense; Provided, that a
permit therefore is secured from the
Minister of Public Works and works
pertaining thereto are commenced
within two years from the change in
the course of the river or stream.(Art.
58, P.D. No. 1067)
though there may be

damage
(d) Formation of islands
Those
formed
on
Philippines seas, lakes and on
navigable rivers belong to the STATE;
If formed in a nonnavigable river, there is accession to

the nearest riparian owner. If however,
the said riparian owner fails to assert
his claim, the same may yield to the
adverse possession of 3rd parties.
If formed in the middle, it

shall be divided longitudinally in
halves thus both owners of the
opposite banks will have a share
therein
In BF
Loses the thing +
pay damages
In BF
Pay the value of the
accessory + pay
damages, or
Suffers the injury
to the thing + Pay
damages
In GF
Demand value of
accessory +
damages, or
In BF
* as if in GF
In BF
*as if in GF
Demand
separation even if
principal is
destroyed +
damages
Tests to Determine the Principal thing:

1. That to which the other has been united
as an ornament, or for its use or
perfection,
2. The thing of greater value,
3. If they are of equal value, that of the
greater volume, and
4. If not one of these tests can be applied,
then, the question will be resolved by
taking into consideration all pertinent
provisions applicable as well as their
respective merits, utility and volume. (Art.
467, 468, NCC)
5. In painting and sculpture, writings,
printed matter, engraving and lithographs,
the board, metal, stone, canvass, paper or
parchment shall be deemed the accessory
thing. (Art. 468, par.2, NCC)
b) With respect to movable property

(Keyword: SAC)
(1) Adjunction or Conjunction
takes place whenever 2

movables belonging to different
owners are united in such a way that
they cannot be separated without
injury, thereby forming a single object
(Art. 466, CC).
Rule: if separation is
possible without injury, then separate
(2) Commixtion or confusion

mixture of solid or liquid belonging to
different owners, the mixture of solids
being called commixtion, while that of
liquids, confusion (Art. 472, CC).
RULES:
1. Co-ownership based on proportional
value if caused by:
The will of the parties;
Chance;
The will of 1 party who is in GF
2. If caused by the will of 1 party in
BF, then he loses the entire thing + pay
damages.
RULES in adjunction:
In GF
Appropriates the
thing after payment of
value of accessory in its
uncontroverted state.
In GF
Appropriate the
thing without
payment +
damages
In GF
Right to demand
payment of the
value of accessory,
or Right to demand
separation if no
injury to the thing
EXCEPT, when the
accessory is more
valuable than the
principal, the AO may
demand separation
(3) Specification
_ the giving of a new form to another
persons material through the
application of labor (Art. 474, CC).
83


Institute of Law
RULES:
MATERIAL OWNER
(MO)
In GF
Right to demand value
of the material, BUT if
the material is more
precious, he may:
a. appropriate the thing
after paying M, or
b. Demand payment of
material
MAKER
In GF
Acquires the thing
after payment of
the value of the
materials
In GF
In BF
1. Appropriates the
To pay damages
thing without indemnity
to M + damages (but
not available if the
value of the work is
considerably more
than the material)
or
2. sell the material to
M+ damages
In BF
To pay damages
In GF
Appropriates the
thing without
payment +
damages
RULES IN ACCESSION INDUSTRIAL

Adjunction
Involves at least two things
Mixture
Involves at least two things
Accessory follows the principal

Things joined retain their nature
Co-ownership results
Things mixed or confused may
either retain or lose their
respective nature
RULES IN ACCESION NATURAL

Alluvion
Deposit of soil is gradual
Soil cannot be identified
Belongs to owner of property to which it is
attached
Merely an attachment
I. Landowner (LO) constructs or plants

on his land with the materials of
another
84


Institute of Law
Rights of LO
LO in GF and Material owner
in GF
LO in BF and Material Owner

in GF
Material Owner in BF
1. right of appropriation after payment

of indemnity, except when the material
owner had chosen he limited right of
removal
LO is in BF, BPS
in GF
1. Right of appropriation after
payment
of indemnity + pay damages
In GF
BPS in BF
1. Right to acquire the improvements
without paying reimbursement, and
2. Right to demand damages
In BF
Same as though acted in good faith
II. Builder, planter, sower (BPS) builds,

plants or sows on anothers land using
his own materials
Co-ownership
May be created by
law, contract,
succession,
fortuitous event or
occupancy
The purpose is the
common enjoyment
of the thing or right
owned in common
Has no juridical
personality which is
separate and
distinct from that of
the co-owners
An agreement not
to divide the
community
property for more
than 10 years is not
allowed by law
A co-owner has no
power to represent
the co-ownership
If a co-owner
transfers his share
to LO
a third
person,
in GF
and
the latter
BPS in GF
automatically
becomes a coowner
The division of the
benefits and
charges is fixed by
law
building or planting. Hence, forced lease is

remedy, the term of which is as per agreement o
parties. In case of disagreement, the court sha
the terms thereof
Obligations:
1. Must pay for necessary expenses for preserva
2. Pay BPS expenses made by 3rd persons in
production, gathering and preservation of the f
when appropriate (Art 443)
3. Pay damages
In GF
1. Appropriate the work without payment + dama
or
2. Demand the removal at BPS expense + dama
3. Compel the BP to buy the land, regardless o
value of the land or S t pay the rent
Obligations are the same as above
In BF
Same as though acted in good faith
Partnership
Always created by
contract
The purpose is to
obtain profits
Has a juridical
personality which is
separate and distinct
from the partners
No limitation upon
the duration of
partnerships
Co-ownership the ownership of an

undivided thing or right belongs to different
persons. (Art. 484, CC.) (1986 Bar)
Requisites of Co-ownership (Keyword:
SOS)
A partner has the
1. Plurality of subjects
power to represent
2. Unity of the Object; and
the partnership
3. Recognition of the ideal or undivided
If a partner transfer
his share to a third
shares of the co-owners which determine
LO
theappropriation
latter
their ofrights
and obligations. (2 Tolentino,
1.person,
Right of
after payment
indemnity,
does not become a
Civil Code, p. 140)
or
unless
2.partner,
Right to
compel BP to pay the price of land and S,
agreed
upon
the
proper
rentby all of
Characteristics of Co-ownership
the partners
Exception:
1. More than 1 owner
The division
profits
Value
of the of
land
is greater than the value of the
and losses may be
subject to the
agreement of the
85
partners
Civil
Law
Study
Guide
The death of a coThe death of a
Bar Operations 2007
ner has no effect
partner shallCentralized
result in
upon the existence
the dissolution of the
of the co-ownership partner

Institute of Law
2. 1 physical whole divided into ideal

shares
3. Each ideal share is definite in amount,
but it is not physically segregated from the
rest
4. Regarding the physical whole, each coowner must respect each other in the
common use, enjoyment or preservation of
the physical whole
5. Regarding the ideal share, each coowner holds almost absolute control over
the same
6. The co-ownership does not have
juridical personality
7. A co-owner is in a sense a trustee for
the other co-owners.
2. Consolidation of ownership in one coowner of the thing

3. Destruction or loss
4. Prescription
GEN. RULE: A co-owner cannot acquire
the co-owned property by prescription
EXCEPTIONS (Requisites):
(Keyword: CREP)
1. He clearly repudiates the co-ownership
and claims full ownership of the thing
2.
Such
act
of
repudiation
is
communicated to such co-owners;
3. The evidence thereon is clear and
conclusive,
4. Possession in the concept of an owner
(public, adverse, open, uninterrupted)
5. After the lapse of the period fixed by law
(Lagura vs. Levantino, 71 Phil.
566)
Limitations upon the right of a coowner to use the thing owned in

common
1. In accordance with the purpose
intended
2. Not to injure the interest of the coownership
3. Not to prevent the other co-owners from
using it according to their rights
Possession the holding of a thing or the

enjoyment of a right, either by material
occupation or by the fact of subjecting the
thing or the right to our will. (Art. 523, CC.)
(1997 Bar)
Instances when a co-owner binds the

others: (Keyword: NET)
1. Action for ejectment
2. Payment for necessary expenses for
the preservation of the property
3. Payment for taxes
Requisites of Possession
1. The corpus or holding or material
detention or enjoyment of a thing or right
and,
2. The Animus possidendi or intent to
possess the thing or right
Consent of ALL co-owners is needed:
In case of alteration, since it is an

act of strict ownership
Majority of the controlling interest is

needed: (Keyword: OA)
Ornamental expenses
Acts of administration
(1977 Bar)
POSSESSOR IN
GF
Termination
of
co-ownership:
(Keyword: PPCD)
1. Partition
GENERAL RULE: Demandable as a
matter of right
EXCEPTIONS: (Keyword: ULAND)
When there is an agreement to

keep the thing undivided must not
go beyond 10 years
When prohibited by the donor or

testator cannot exceed 20 years
When prohibited by law
When partition renders the thing

unserviceable
When the legal nature of the thing

does not allow partition
POSSESSOR
IN BF
1. As to fruits Already
received:
the fruits until
entitled to all
possession is
legally
interrupted
Still
pending:
entitled to
pro-rate the
fruits growing
when his
possession is
legally
interrupted
Shall
reimburse the
fruits received
and those
which the
legitimate
possessor
could have
received.
2. As to
necessary
expenses
Entitled to
refund.
No right of
retention
86

Entitled to
refund.
Right of
retention

Institute of Law
3. As to
useful
expenses
Entitled to
Not entitled to
refund.
refund.
Right of retention No right of
retention
4. As to
ornamental
expenses
Not entitled to
refund, but
may remove
such
improvements
if they do not
cause damage
to the
principal
thing
Not entitled
refund, but
may remove
such
improvements
if they do not
cause damage
to the
principal
thing
5. As to
prescription
Movables: 4
years
Immovables:
10 years
Movables:
years
Immovables:
30 years
6. Liability
for
deterioration
or loss
Not liable,
except in
cases where
he has acted
with
fraudulent
intent or
negligence,
after the
judicial
summons.
Usufruct a real right by virtue of which a

person is given a right to enjoy the
property of another with the obligation of
preserving its form and substance, unless
the title constituting it or the law provides
otherwise. (Art. 562, CC.) (1989 Bar)
Requisites of usufruct (Keyword: ENA)
1. Essential - right to enjoy
2. Natural - obligation of preserving the
form and substance
3. Accidental those which are the
subject of stipulation (e.g. the term of the
contract)
Abnormal/Imperfect Usufructs those
where the usufructuary does not have the
obligation of preserving the form and
substance of the property which is the
object of the usufruct.
Things, without being consumed,

gradually deteriorate through wear
and tear
Consumable things
Sterile animals which shall be

considered as though constituted on
fungible things
Liable even
due
fortuitous
event.
USUFRUCT
GEN. RULE: A person who lost or has

been unlawfully deprived of a movable,
may recover it from the person who has
possession of the same.
EXCEPTIONS: (Keyword: CHEMP)
a. If the possessor obtained the movable
in GF at a public sale, the owner cannot
get it back unless he reimburses the
possessor.
b. If the owner is estopped
c. Court order
d. If purchased at a merchants store
e. If title is lost by prescription
f. If the possessor is the holder in due
course of a negotiable instrument
LEASE
Covers all fruits and

use
Covers only
particular use
Always REAL right
Real right only if

lease is over real
property and it is
registered for
more than 1 year
Created only by
owner
Lessor may or may

not be the owner
Constituted by law,
Constituted by
by will of private
contract
persons
in act inter vivos or
mortis causa, and by
prescription
Usufructuary
responsible for
ordinary repairs
Possession is lost by:

(Keyword: PAAD)
1. Abandonment of the thing;
2. Assignment to another either by
onerous or gratuitous title;
3. Destruction or total loss of the thing, or
if it goes out of commerce;
4. Possession by another, if the
possession has lasted for longer than one
year. But the real right of possession is
lost only after the lapse of 10 years. (Art.
555, NCC)
Not responsible
Usufructuary
Not responsible
responsible for taxes
on the fruit
Rights of the Usufructuary: (Keyword:

AFIRE)
1. Right to the fruits
2. Right to enjoy any increase in the
accession or any servitude
3. Right to alienate the right of usufruct
87


Institute of Law
4. Right to recover real property or a real

right, or movables
5. Right to make useful and ornamental
expenses
6. Right to recover the increase in value of
the property due to indispensable repairs
made
a) to take care of the property as a good

father of a family (Art. 589, CC);
b) to make ordinary repairs on the property
(Art. 592, CC);
c) to notify the owner in case the need for
extraordinary repairs on the property is
urgent (Art. 593, CC);
d) to pay annual taxes and those
considered as liens on the fruits (Art. 596,
CC);
e) to notify the owner of any act of a 3 rd
person that may be prejudicial to the right
of ownership (Art. 601, CC); and
f) to pay the expenses, cost and liabilities
in suits with regard to the usufruct (Art.
602, CC);
Obligations of the Usufructuary

1. Commencement of Usufruct
a) to make an inventory of the property;
b) to give necessary security or bond (Art.
583, CC).
Effect of failure to give security:
A. The owner may demand the following:
i. that the immovables be placed
under administration
ii. that the movables be sold
iii. that the public bonds,
instruments of credit payable to order or
bearer be converted into registered
certificates or deposited in a bank or public
institution
iv. that the capital and the proceeds of the
sale of the movables be invested in safe
securities
3. Termination of Usufruct
a) to deliver the thing to the owner (Art.
612, CC).
b) to reimburse or indemnify owner, in the
proper case
Extinguishment
of
the
usufruct:
(1989 Bar)
1. by death of the usufructuary
EXCEPTIONS:
contrary intention
definite period
when the usufruct is in favor of several
persons
successively
or
simultaneously
2. by the expiration of the period for which
it was constituted or the fulfillment of any
resolutory condition
3. by merger of the usufruct and
ownership in the same person
4. by renunciation of the usufructuary
5. by the total loss of the thing in usufruct
6. by the termination of the right of the
person constitution the usufruct
7. by prescription
8. non-fulfillment of a mode imposed on
the usufructuary
9. rescission or annulment of the contract
10. legal ways of extinguishing usufruct
11. mutual dissent
12. alienation to innocent purchaser for
value
B. The owner may retain possession of the

property as administrator until security is
given.
C. To claim any matured credits forming
part of the usufruct, the usufructuary shall
need the authorization of the owner of or
the court.
When security or bond not required:
a. no one will be injured
b. waiver
c. usufructuary is the donor of the property
d. incase of usufruct by parents
e. in case of caucion juratoria
Caucion juratoria the usufructuary,
being unable to file the required bond or
security, files a verified petition in the
proper court asking for the delivery of the
house and furniture necessary for himself
and his family without any bond or security
(Art. 587, CC)
Easement
or
servitude
an
encumbrance
imposed
upon
an
immovable for the benefit of another
immovable belonging to a different owner.
(1995 Bar)
The immovable in favor of which the
easement is established is called
dominant estate; that which is subject
thereto, the servient estate. (Art. 614,
CC.)
NOTE: The same rule can be applied to

the instruments or tools necessary for an
industry or vocation which the usufructuary
is engaged
2. Pendency of Usufruct (Keyword:
SATTOE)
88


Institute of Law
negative easement has special rules on

prescription:
a. if the opening is made on the
dominant owners own wall
Start counting from the time when the
owner of the dominant estate serves a
notarial prohibition on the owner of the
prospective servient estate
b. if the opening through which the
light and view passes is a party wall
Start counting from the 1st act
constituting the exercise of the easement
was performed
Classes of Easement (1998 Bar)

1. As to recipient of Benefit
a) real in favor of another immovable, or
b) personal in favor of community, or one
or more persons to whom encumbered
estate does not belong. (Arts. 613, 614,
CC)
2. As to Source
a) legal established by law, or
b) voluntary established by will of
owners. (Art. 619, CC)
3. As to Exercise
a) continuous those the use of which is
or may be incessant, without intervention
of any act of man. (Art.
615, par. 1, CC.)
b) discontinuous used at intervals and
depend upon the acts of man. (Art. 615,
par. 2, CC.)
c) Apparent easements made known
and are kept in view by external signs that
reveal the use and enjoyment of the same.
(Art. 615, par. 3, CC)
d) Non-apparent shows no external
indication of their existence. (Art. 615, par.
4, CC.)
(1) Positive those which impose upon
owner of the servient estate obligation of
allowing something to be done or of doing
it himself. (Art. 616, CC.)
(2) Negative those which prohibit owner
of servient estate from doing something
which he could lawfully do if the easement
did not exist. (Art. 616, CC.)
Extinguishment of easements:
1. Merger of ownership of the dominant
and servient estate
2. Non-user for 10 years
3. When either or both of the estates fall
into such condition that the easement
cannot be used
4. Expiration of the term or the fulfillment
of the condition
5. Renunciation of the owner of the
dominant estate
6. Redemption
7. Expropriation of the servient estate
8. Permanent impossibility to make use of
the easement
9. Annulment or cancellation of the
contract of easement
10. Registration of the servient estate as
free and without any encumbrance in the
Torrens System in favor of an innocent
purchaser for value
11. Cessation of necessity
Modes of acquiring easements:

1. Title
means the juridical act which gives
rise to the servitude
all kinds of easements can be created
by title
2. Prescription
Only
continuous
and
apparent
easement may be created by prescription
Acquired after the lapse of 10 years,
regardless of GF or BF:
a. positive easements
Start counting from the 1st act
constituting the exercise of the easement
was performed
b. negative easements
Start counting from the time when the
owner of the dominant estate serves a
notarial prohibition on the owner of the
prospective servient estate
Requisites for establishment of legal

easement of right of way (1977 Bar)
1. The dominant estate is surrounded by
other immovables without adequate outlet
to a public highway
2. After payment of the proper indemnity
3. The isolation was not due to the
proprietors own acts
4. Right of way is at point the least
prejudicial to the servient estate and
insofar as consistent with this rule, where
the distance from the dominant estate to a
public highway may be the shortest
(Locsin vs. Climaco, 26 SCRA 816)
Nuisance
any
act,
omission,
establishment, business or condition of
property or anything else which:
1. injures or endangers the health and
safety of other
2. annoys or offends the senses
3. shocks, defies or disregards decency or
morality
HOWEVER, an easement of light

and view, being both a positive and a
89


Institute of Law
4. obstructs or interferes with the free

passage of any public highway or street,
or any body of water,
5. hinders or impairs the use of property.
(Art. 694, CC)
Ownership is not acquired from an

immediately preceding owner
Intellectual creation; occupation
2. Derivative mode
Ownership is based on a right
previously held by another person
Law; tradition; donation; succession
Classification 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,
surrounding
3. Public affects community or
neighborhood or any considerable number
of persons
4. Private affects only a person or a
small number of persons
3. Mixed mode
Prescription
I. Intellectual creation
mode of acquisition by virtue of which
the author acquires intellectual property
or ownership over the products of his
intellect, with the consequent power to
authorize or refuse publication or
production of such products.
Remedies against a PUBLIC Nuisance

1. prosecution under Revised Penal Code
or any local ordinance;
2. civil action ;
3. abatement without judicial proceedings.
(Art. 699, CC.)
II. Occupation
The object must be appropriable by
nature
Requisites: (Keyword: CICOS)
i. There must be a seizure or
apprehension;
ii. The thing seized must be corporeal;
iii. The thing seized must be without
any owner;
iv. There must be an intention to
acquire ownership over the thing; and
v. There must be compliance with the
rules prescribed by law.
Remedies against a PRIVATE Nuisance

1. civil action;
2. abatement without judicial proceedings.
(Art. 705, CC)
Requisites for Summary abatement of
nuisance by a private person
1. must be specifically injurious to person
affected;
2. breach of peace or unnecessary injury
must not be committed;
3. demand has been made to the owner or
possessor to abate the nuisance;
4. such demand has been rejected;
5. approval by the district health office and
with assistance of local police; and
6. value of destruction does not exceed
P3,000.00. (Arts. 704, 706, CC)
Occupation
regarding
animals
happens by hunting or fishing
Bees 2 days
Domesticated animals 20 days
DOMESTIC ANIMALS
Treated like any

other personal
property. It cannot
be acquired by
occupation since it
is owned unless the
owner abandons
the animal.
Doctrine of Attractive Nuisance

A person who maintains in his
premises a dangerous instrumentality of a
characteristic which is attractive to children
of tender years at play and who fails to
exercise due diligence to prevent such
children from playing therewith or resorting
thereto, is liable to a child who is injured
thereby, even if the child is technically a
trespasser.
DOMESTICATED
ANIMALS
By nature wild
animals but have
been tamed
possess the habit of
returning to the
premises of the
possessor.
III. Law
IV. Tradition (1977 Bar)
A
consequence
of
certain
contracts such as sale by virtue of
which, actually or constructively,
the object is placed in the control
and possession of the transferee.
Kinds:
a. Real or material physical
delivery
MODES OF ACQUIRING OWNERSHIP

(1977 Bar)
3 Types of Modes
1. Original mode
90


Institute of Law
b. Constructive
i. Simbolica
Requisites:
Transferor must have control
of
the
thing
(actual
possession)
Transferee must be put in
control
There must be intent to
transfer
ii. longa manu (long hand)
transfer of ownership is done by
pointing out to the thing
mere agreement is not enough,
there must be an accompanying
sign or gesture.
iii. brevi manu (short hand)
occurs when the transferee was
already in possession before he had
acquired ownership
iv. constitutum possesorium
opposite of brevi manu
the transferor already in possession
and continues to be in possession under a
different capacity after ownership had
been transferred
c. Quasi-tradition - delivery of incorporeal
property
d. By operation of law
V. Donation
An act of liberality whereby a person
disposes gratuitously a thing or right in
favor of another who accepts it. (Art. 725,
CC)
Requisites
1. decrease or reduction of the patrimony
of the donor;
2. increase of the patrimony of the donee ;
3. animus donandi or intent to make
donation; and
4. acceptance by the donee except
donation propter nuptias
Persons capacitated to make donations
1. those who have capacity to enter into
contracts;
2. those able to dispose of his property;
3. those not prohibited or disqualified by
law from making donations.
A donation between persons guilty of

adultery at the time of the donation is
void. Also, Art. 87, FC, provides that
the prohibition against donation
between spouses now applies to
donation between persons living
together as husband and wife without
Civil Law
a valid marriage for otherwise, the

condition of those who incurred guilt
would be better than those in the legal
union. (Matabuena vs. Cervantes, 38
SCRA 284)
Donations PROHIBITED BY LAW
1. those made by persons guilty of
adultery or concubinage at the time of the
donation;
2. those made between persons found
guilty of the same criminal offense in
consideration thereof;
3. those made to a public officer or his or
her spouse, descendants or ascendants
by reason of his or her office;
4. those made to a priest who heard the
confession of the donor during the latters
last illness or minister of gospel who
extended spiritual aid to him during same
period;
5. those made to relatives of such priest or
minister within the 4th degree, the church,
order to which such priest or minister may
belong;
6. those made by the ward to the guardian
before approval of final accounts, unless
the guardian is an ascendant, descendant,
brother, or sister;
7. those made to the attesting witnesses to
the execution of donation if there is any, or
to the spouse, parents or children or
anyone claiming under them;
8. those made to a physician, surgeon,
nurse, health officer or druggist who took
care of donor during last illness;
9. those made to individuals, associations
and corporations not permitted by law to
accept donations ;
10. those made by spouses to each other
during marriage, or to persons of whom
the other spouse is a presumptive heir.
(Arts. 739, 740, 1027, CC and Art. 87, FC)
DONATION INTER
VIVOS
DONATION MORTIS
CAUSA
Takes effect
independently of
death of donor
Takes effect upon death

of donor
Title or ownership
conveyed before death
of donor
Title or ownership
conveyed only upon
death of donor
Valid if donor should

survive donee
Void if donor survives

donee
Generally irrevocable
during the donors
lifetime
Always revocable
Generally comply
with formalities
91
required by ARTS. 748
749 of CC
Studyand
Guide
Must always comply

with formalities
prescribed by law for
execution of wills

Institute of Law
Donor or his heirs have 4 years

from noncompliance to revoke the
donations
Revocation is the only available

remedy, reduction is not applicable.
Acts of ingratitude
The donor has 1 year from the

time the donor acquires knowledge of the
donees act of ingratitude to revoke
a. If the donee should commit some
offense against the person, the honor or
the property of the donor, or of his wife or
children.
b. If the donee imputes to the donor any
criminal offense, or any act involving moral
turpitude, even though he should prove it,
unless the crime or the act has been
committed against the donee himself, his
wife or children under his authority.
c. If he unduly refuses him support when
the donee is legally or morally bound to
give support to the donor.
Donations cannot comprehend future
property.
Formalities:
1. Movable Property
a) ORAL - with simultaneous delivery of
property donated
P5,000.00 or less
b) WRITTEN - without simultaneous
delivery
must be in writing, public or private,
including acceptance
exceeds P5,000.00
2. Immovable property
a) must be in public instrument specifying
property donated and burdens assumed
by the donee regardless of value
b) Acceptance must be either:
(1) In the same instrument
(2) In another public instrument, notify the
donor in authentic form, and noted in both
deeds, otherwise donation is void
Acceptance shall not take effect

unless it is done during the lifetime of
the donor.
Exception: Donations propter
nuptias
need
no
express
acceptance
If donation is onerous, the

formalities for the execution of
ordinary contracts shall be complied
with. (Art. 733, CC)
If the donation is mortis causa, the

formalities for the execution of wills
shall be complied with. (Art. 728, CC)
The donation should not be

inofficious.
Meaning, should not impair the

legitime
The heirs of the donor have 5

years from the death of the donor to
revoke or reduce the donation
The donation should not prejudice

creditors.
The creditors thereby prejudiced

have 4 years from the knowledge of
the donation to rescind the donation
accion pauliana
The donation should not impair

support for the donor and his family.
Can be reduced as much as may

be:
Necessary - In extreme cases, the
donation can be revoked if the donor gave
away so much, and the donor and his
family need everything back.
Donations must comply with the

conditions of the donation
VI. Succession
VII. Prescription
Modes of Extinguishing Ownership:
I. Voluntary (Keyword: AAD)
1. Abandonment
2. Alienation
a. onerous
b. gratuitous
3. Voluntary destruction
II. Involuntary (Keyword: JARLL)
1. Fortuitous loss or destruction
2. Accession continua
3. Rescissory actions
4. Judicial decree
5. By operation of law
SALES
Contract of sale it is a contract whereby
one of the contracting parties obligates
himself to transfer the ownership of and to
deliver a determinate thing and the other
to pay therefore a price certain in money
or its equivalent. (Art. 1458, CC)
Requisites of a contract of sale
1. Consent of the contracting parties;
2. Determinate subject matter.
3. Price certain in money or its equivalent.
Characteristics of a contract of sale
(Keyword: COB CONS)
1. consensual
92


Institute of Law
2. bilateral and reciprocal

3. nominate and principal
4. onerous
5. commutative
6. Sale is title and not mode
SPECIFIC INCAPACITY MANDATED BY

LAW
Article 1491 of the Civil Code specifically
prohibits the following persons from
entering into contracts of sale under the
circumstances covered therein:
The perfection of a
contract of sale gives rise to the
obligation on the part of the seller to
transfer
ownership
and
deliver
possession of the subject matter;
nevertheless it would be delivery or
tradition that would legally be the
mode to transfer ownership and
possession to the buyer.
(a) Agent, with respect to the property

whose administration or sale may have
been entrusted to him, unless the consent
of the principal has been given.
(b) Guardian, with respect to the property
of the person who is under his
guardianship.
When the right of first

refusal is included in the contract of
lease, it is considered as a contract.
When the lessor consents to lease the
premises and when such contract of
lease is accompanied with the right of
first refusal, then the lessee shall be
given the right to match the offered
purchase price of the buyer and to buy
the property at that price. However,
when the lessor fails to give the lessee
the opportunity to exercise the right of
first refusal, the buyer who knows of
such existing right is considered a
buyer in bad faith. Thus, the lessee
has the right to ask for a rescission of
the contract of sale or an action for
specific
performance
(Equatorial
Realty Dev't. Vs. Mayfair Theater, Nov.
21, 1996).
(1997, 1988 Bar)
The husband and the wife cannot sell
property to each other, except:
1. When a separation of property was
agreed upon in the marriage settlement; or
2. Where there has been a judicial
separation of property. (Art. 1490, CC)
RATIONALE FOR PROHIBITION
The case of Medina v. Collector of Internal
Revenue gave the rationale for the relative
incapacity of spouses to sell properties to
one another to be:
(a) To prevent a spouse defrauding his
creditors by transferring his properties to
the other spouse.
(b) To avoid situation where the dominant
spouse would unduly take advantage of
the weaker spouse.
(c) To avoid indirect violation of the
prohibition against donations between
spouses under Article 133 of the Civil
Code.
(c) Executor and administrator, with

respect to the property of the estate under
their administrations.
(d) Public officers and employees, with
respect to property of the State or any
subdivision thereof, or of any governmentowned or controlled corporation, or
institution, the administration of which has
been entrusted to them, it includes judges
and government experts who, in any
manner whatsoever, take part in the sale.
(e)
Justices,
judges,
prosecuting
attorneys, clerks of courts and other
employees
connected
with
the
administration of justice, with respect to
the property and rights in litigation or
levied upon an execution before the court
Contract of Sale
Title passes to the
vendee upon the
delivery of the thing
sold
Non-payment is a
negative resolutory
condition
Vendor has lost and
cannot recover
ownership until and
unless contract is
resolved or rescinded
Contract to Sell
By agreement,
ownership is reserved
in the vendor and will
not pass until full
payment
Full payment is a
positive suspensive
condition
Title remains in the
vendor and when he
seeks to eject because
of non-payment, he is
enforcing contract and
not resolving the same.
within whose jurisdiction or territory they

exercise their respective functions.
(f) Lawyers, with respect to the property
and rights which may be the object of any
litigation in which they may take part by
virtue of their profession.
93


Institute of Law
Earnest money a part of the purchase

price advanced by the vendee to the
vendor as a token of the perfection of the
contract. (Art. 1482, CC)
However, in the case of

Recto v. Harden, the Supreme Court
held that the prohibition under Article
1491 does not apply to a contingent
fee based on the value of the property
involved in litigation and therefore
does not prohibit a lawyer from
acquiring certain percentage of the
value of the properties in litigation that
may be awarded to his client.
Distinction between earnest money and

option money
Mere inadequacy of price

per se will not set aside a judicial sale
of real property. But where the
inadequacy is purely shocking to the
conscience, such that the mind revolts
at it as such that a reasonable man
would neither directly nor indirectly be
likely to consent to it, the sale shall be
declared null and void. (Rosales v. CA
GR. 137566, February 28, 2001).
Earnest money
part of the price
given only when
there is already a
sale
when earnest
money is given,
the buyer is bound
to pay the balance
RESCISSIBLE CONTRACTS OF SALE

Inadequacy of price is a ground for
rescission of conventional sale in case of
rescissible contracts covered under Article
1381 of the Civil Code, namely:
Option Money
money given as a distinct
consideration for an option
contract
applies to a sale not yet
perfected
When the would-be buyer
gives an option money, he
is not required to buy, but
may even forfeit it
depending on the terms of
the option.
Person who bears the loss in a contract

of sale
1. Before delivery SELLER (principle of
res perit domino)
2. After delivery BUYER (res perit
domino)
3. After perfection but before delivery
BUYER, except:
a) when object sold consist of fungible
goods for a price fixed according to
weight, number, or measure;
b) seller is guilty of fraud, negligence,
default or violation of contractual terms;
c) object sold is generic (genus nunquam
perit).
(a) Those entered into by guardians

whenever the ward whom they represent
suffer lesion by more than one-fourth (1/4)
of the value of the object of the sale.
(b) Those agreed upon in representation
of absentees, if the latter should suffer
lesion by more than one fourth (1/4) of the
value of the object of the sale.
OPTION CONTRACTS
Article 1479 par 2 provides that An
accepted unilateral promise to buy or to
sell a determinate thing for a price certain
is binding upon the promissor if the
promise is supported by a consideration
distinct from the price.
Remedies available to vendor in case of

non-payment of installment in a
contract of sale of personal property
(RECTO LAW) (1999 Bar)
1. Exact fulfillment of the obligation, should
the vendee fail to pay; or
2. Cancel the sale, should the vendees
failure to pay cover 2 or more installments;
or
3. Foreclose the chattel mortgage on the
thing sold if one has been constituted
should the vendees failure to pay cover 2
or more installments (Art. 1484, CC).
*In Adelfa Properties, Inc. v. Court of

Appeals the Court held that an option, as
used in the Law on Sales, is a continuing
offer or contract by which the owner
stipulates with another that the latter shall
have the right to buy the property at a
fixed price within a certain time, or under,
or in compliance with, certain terms and
conditions, or which gives to the owner of
the property the right to sell or demand a
sale. It is also sometimes called an
unaccepted offer.
In the last case, he shall

have no further action against the
purchaser to recover any unpaid
balance of the price, any agreement to
the contrary shall be void.
94


Institute of Law
These
remedies
Transactions on approval or on trial

for approval ownership passes to
buyer when he signifies his approval or, if
he does not but retains the goods without
rejection upon the expiration of the time
fixed.
are
alternative.
Important features of the Maceda Law
(R.A. 6552) (1999 Bar)
applicable to the sale of

immovable property on installments.
After
having
paid
installments for at least 2 years, the
buyer is entitled to a mandatory grace
period of 1 month for every year of
installment payments made, to pay the
unpaid installments without interest.
Rules on transaction on trial

approval
1. title remains with the seller;
2. risks remains with the seller; and
3. buyer must put goods on trial.
If the contract is canceled,

the seller shall refund to the buyer the
cash surrender value equivalent to
50% of the total payments made and
after five years of installments, an
additional 5% every year but not to
exceed 90% of the total payments
made.
In case the installments

paid were less than 2 years, the seller
shall give the buyer a grace period of
not less than 60 days.
If the buyer fails to pay the

installments due at the expiration of
the grace period, the seller may
cancel the contract after 30 days from
receipt by the buyer of the notice of
cancellation or demand for a
rescission by notarial act.
for
A buyer acquires no better

title than the seller over the thing sold
if the seller is not the owner thereof
Except:
1. When true owner is estopped or
precluded by his conduct from denying the
vendors authority to sell;
2. When sale is made by the registered
owner or apparent owner in accordance
with recording or registration laws;
3. Where sale is made pursuant to a
statutory power of sale or under the order
of court;
4. Where purchase was made in merchant
store or in fairs or markets. ( Art. 1505,
CC)
Negotiable document of title a
document of title in which it is stated that
the goods referred therein will be delivered
to the bearer or to the order of any person
named in such document.
Obligations of the vendor

(Keyword: TDWP)
1. To transfer ownership;
2. To deliver
3. To warrant the object sold
4. To preserve the thing from perfection to
delivery
Non-negotiable Document of Title a

document of title which does not state that
the goods referred to therein will be
delivered either to bearer or to the order of
any person named therein.
Kinds of negotiable documents of title
1. bill of lading;
2. dock warrant;
3. quedan;
4. warehouse receipts or order; and
5. any other document used as proof of
possession or as authority to transfer the
goods represented by it
Pactum Reservati Dominii a stipulation

in sale by installment plan, whereby,
despite delivery of the property sold,
ownership is still with the seller until full
payment of the price is made.
Transaction on sale or return sale
with resolutory condition wherein buyer
has the option to return goods instead of
paying the price
ownership is vested on
buyer upon delivery but he may revest
title to seller by returning within the
period fixed.
IMPLIED Warranties of the person who

negotiates a document of title by
indorsement or delivery
1. That the document is genuine;
2. That he has legal right to negotiate or
transfer it;
95


Institute of Law
3. That he has knowledge of no fact which

would impair validity or worth of the
document; and
4. That he has a right to transfer the title to
the goods and that the goods are
merchantable or fit for particular purpose.
(Art. 1516, CC)
3. By waiver thereof.
Unpaid seller:
1. When the whole of the price has not
been paid or tendered; and
2. When a bill of exchange or other
negotiable instrument has been received
as a conditional payment and the condition
was broken by reason of dishonor,
insolvency of the buyer or otherwise. (Art.
1525, CC)
Instances where the unpaid seller has

the right of rescission
1. Where he expressly reserved the right
to do so in case the buyer should make
default; and
2. Where the buyer has been in default in
the payment of the price for unreasonable
length of time.
Remedies of the unpaid seller

(Keyword: PSRR)
1. Possessory lien on the goods or right to
retain;
2. Right of stoppage in transitu;
3. Right of resale; and
4. Right to rescind sale.
Instances where the unpaid seller may
retain the goods
1. Where the goods have been sold
without any stipulation as to credit
2. Where the goods have been sold on
credit, but the term of credit has expired
3. Where the buyer becomes insolvent.
The seller may exercise

his right of lien or retention
notwithstanding that he is in
possession of the goods as agent or
bailee for the buyer (Art. 1527, CC)
Instances where the unpaid seller loses

his right to retain the goods
1. When he delivers the goods to a carrier
or other bailee for transmission to the
buyer without reserving ownership in the
goods or the right to possession thereof;
PRE-EMPTION
1. The sale to a
third person has
not yet been
perfected
2. No rescission
because no sale as
yet exists
3. The action here
is directed against
the prospective
seller
The unpaid seller of

goods, having lien thereon, does not
lose his lien by reason only that he
has obtained judgment for the price of
the goods (Art. 1529, CC)
It is, however, essential

before the rescission be made that the
unpaid seller should have a right of
lien or stopped the goods in transitu.
(Art. 1534, CC)
The vendor is not bound

to deliver the thing sold in case the
vendee should lose the right to make
use of the terms as provided in Article
1198 (Art. 1536, CC).
The vendor is bound to

deliver the thing sold and its
accessions and accessories in the
condition in which they were upon the
perfection of the contract. (Art. 1536,
CC)
The rules in Article 1189

shall be observed in case of loss
deterioration or improvement of the
thing before its delivery, the vendor
being considered the debtor. (Art.
1538, CC)
Requisites of Double Sales

(a) The two (or more) sales transactions
must constitute valid sales.
(b) The two (or more) sales transactions
must pertain to exactly the same subject
matter.
(c) The two (or more) buyers at odds over
the rightful ownership of the subject matter
must each represent conflicting interests.
(d) The two (or more) buyers at odds over
the rightful ownership of the subject matter
must each have bought from the very
same seller.
REDEMPTION
1. The sale to a
third person has
already been
perfected
2. There can be no
rescission of the
sale
3. Action is
directed against
the buyer
Rules of preference in case of double

sale
2. When the buyer or his agent lawfully

obtains possessions of the goods; and
96


Institute of Law
1. If the same thing should have been sold

to different vendees, the ownership shall
be transferred to the person who may
have first taken possession thereof in
good faith, if it should be movable
property.
2. Should it be immovable property, the
ownership shall belong to the person
acquiring it who in good faith first recorded
it in the Registry of Property.
3. Should there be no inscription, the
ownership shall pertain to the person who
in good faith was first in the possession;
and in the absence thereof, to the person
who presents the oldest title, provided
there is good faith. (Art 1544, CC)
CONDITIONS AND WARRANTIES
Express warranty any affirmation of
fact or any promise by the seller relating to
the thing if the natural tendency of such
affirmation or promise is to induce the
buyer to purchase the same and if the
buyer purchased the thing relying thereon.
other legitimate payments made by reason

of the sale, as well as necessary and
useful expenses on the thing sold (Arts.
1601, 1616, CC).
Instances where CONVENTIONAL
REDEMPTION is PRESUMED to be an
EQUITABLE MORTGAGE (1977 Bar)
1. Price of sale is unusually inadequate;
2. Vendor remains in possession as lessee
or otherwise;
3. Another instrument extending period of
redemption or granting a new period is
executed;
4. Purchaser retains part of the purchase
price;
5. Vendor bound to pay taxes;
6. Real intent is to secure the payment of
a debt or performance of other obligation
(Art. 1602, CC); and
7. When there is doubt as to whether the
contract is a contract of sale with right to
repurchase or an equitable mortgage (Art.
1603, CC). (1977 Bar)
Implied warranties in a contract of sale

1. implied warranty against eviction; and
2. implied warranty against hidden defects.
Legal redemption the right to be

subrogated upon the same terms and
conditions stipulated in the contract in the
place of one who acquires a thing by
purchase or dation in payment, or by any
other transaction whereby ownership is
transmitted by onerous title (Art. 1619,
CC) (1977 Bar)
Warranty in case of eviction an implied

warranty in contracts of sale, by virtue of
which the vendee is deprived of the whole
or part of the thing purchased by a final
judgment based on the right prior to the
sale or an act imputable to the vendor,
such vendor shall answer for the eviction
even though nothing has been said in the
contract on the subject (Art. 1548, CC)
Trust de son tort a trust created by

purchase of property or redemption of
property by one other than the person
lawfully entitled to dos so in fraud of the
others.
Requisites of warranty against eviction

1. There is a final judgment;
2. Purchaser has been deprived in whole
or in part of the thing sold;
3. Deprivation was by virtue of a right prior
to the sale effected by the seller; and
4. Vendor has been previously notified of
the complaint for eviction at the instance of
the purchaser.
Barter or exchange a contract by virtue

of which one of the parties binds himself to
give one thing in consideration of the
others promise to give another thing. (Art.
1638, CC)
Lease a consensual, bilateral, onerous
and commutative contract by virtue of
which one person binds himself to grant
temporarily the use of a thing or render
some service to another who undertakes
to pay some rent, compensation or price
(4 Sanchez Roman 736).
The Seller must pay in case of eviction:

1. Value
2. Income
3. Costs
4. Expenses
5. Damages, if seller was in bad faith
Obligations of the lessor

1. To deliver the thing in such a condition
as to render it fit for the use intended;
2. To make all necessary repairs on the
thing; and
Conventional redemption that which

takes place when vendor reserves the
right to purchase the thing sold with the
obligation to reimburse to the vendee the
price of the sale, expenses of the contract,
97


Institute of Law
3. To maintain the lessee in peaceful and

adequate enjoyment of the lease for the
entire duration of the contract. (Art. 1654,
CC)
persons may also form a partnership for

the exercise of a profession (Art. 1767,
CC).
Requisites of contract of partnership
1. there must be a valid contract;
2. there must be a contribution of money,
property or industry to a common fund;
3. the partnership must be organized for
gain or profit; and
4. it should have a lawful object or purpose
established for the common benefit or
interest of the partners.
Obligations of the lessee

1. To pay the price of the lease according
to the terms stipulated;
2. To use the thing leased as a diligent
father of the family, devoting it to the use
stipulated; and
3. To pay expenses for the deed of lease
(Art. 1657, CC).
Requisites of new lease without
express
renewal
(TACITA
RECONDUCCION)
1. the original lease has expired;
2. The lessee continues possession of the
thing for 15 days; and
3. No notice to the contrary has been
previously given by either party. (Art.
1670, CC)
Characteristics of Partnership
(Keyword: CBONPP)
1. Consensual
2. Bilateral or Multilateral
3. Onerous
4. Nominate
5. Principal
6. Preparatory
Leonine Partnership a partnership
where one of the partners is made liable
for losses but is not entitled to share in the
profits. This is NOT ALLOWED UNDER
OUR JURISDICTION.
Period of the new lease is

the time established in Arts. 1682 and
1687 and not of the original contract.
GROUNDS for which the LESSOR may

JUDICIALLY EJECT the LESSEE
1. Period agreed upon has expired;
2. Lack of payment of the price stipulated;
3. Violation of any condition agreed upon
in the contract; and
4. Lessee devotes the thing leased to any
use or service not stipulated which causes
the deterioration thereof.
TEST or INDICIA to determine the

existence of Partnership
First Test: Determine whether or not there
is an agreement to contribute money,
property or industry to common fund
Second Test: Is to determine whether or
not there is intent of the contracting parties
to divide the profits among themselves
The purchaser of the thing

leased can terminate the lease.
KINDS OF PARTNERS
1. as to liability
a. General - those who can be held liable
for partnership obligations even to the
extent of their personal property.
b. Limited - those who cannot be held
liable for partnership obligations.
EXCEPT when
1. Lease is recorded in the registry of
property
2. There is stipulation in the contract of
sale that purchaser shall respect the lease
3. Purchaser knows the existence of the
lease
4. Sale is fictitious
5. Sale is made with the right of
repurchase
2. as to contribution
a. Capitalist - contribute money or
property to common fund.
b. Industrial - contribute only their skill or
industry to the common fund.
PARTNERSHIP
3. as to management
a. Managing - those who manage or
administer partnership affairs.
b. Silent - those who have no voice in the
management of partnership affairs.
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. Two or more
98


Institute of Law
4. as to third persons
a. Ostensible - publicly known as such
b. Secret - those whose connection in the
partnership is not known
c. By estoppel - those who represent
themselves or consent to another or
others representing them to anyone as
partners, either in an existing partnership
or in one that is fictitious or apparent.
Estoppel does not apply when

although there is misrepresentation,
the third party is not deceived. (Art.
1825, NCC)
5. as to object
a. Universal
a.1. with all present property
_ contributions consists of(Art.
1778, NCC)
a.1.1. all the properties actually belonging
DISTINCTION BETWEEN CAPITALIST AND INDUSTRIALIST PARTNER
to the partners
a.1.2. profits acquired with said property
a.2 with all profits
b. Particulars - here the object are
determinate things, their use or fruits; a
specific undertaking, or the exercise of
profession or occupation (Art 1783, NCC)
6. as to duration
a. for a specific period or till purpose is
accomplished
b. partnership at will
b.1. here, no period expressed or implied,
but the partnership continued without
liquidation, by the partners who habitually
acted as such during the term (Art. 1783,
NCC)
99


Institute of Law
DISTINGUISHING
CAPITALIST
PARTNER FACTOR
FACTOR
1. As to contribution
2. As to prohibition to
engage in other business
PARTNERSHIP
1. HOW CREATED
1. Contributes money or
property
1. VOLUNTARY agreemen
the parties
2. HOW LONG
2. Cannot generally
engageITinEXISTS
the same or similar enterprise
as that of his firm (the test is
3. LIABILTY
the possibility
of unfair TO STANGERS
competition (Art. 1809, NCC)
2. no time limit except

agreement of the parties
3. As to profits
3. Shares into profits according

4. TRANSFERABILITY
OF
to the agreement
thereon; if
INTEREST
none, pro rata
to his
contribution(Art. 1797, NCC)
4. As to losses
4.1. First, the stipulation as to

losses
5. ABILITY TO BIND THE FIRM
4.2. If none, the agreement as
to profits
4.3. If none, pro rata to
contribution
6. MISMANAGEMENT
DISTINGUISHED FROM OTHER OBLIGATIONS
ALL PROFITS
3. may be liable with their

private property beyond the
contribution to the firm
4. even if a partner transfer

interest to another, the
transferee does not becom
partner unless all other par
consent
5. generally, partners acting

behalf of the partnership ar
agents thereof; consequen
they can bind both the firm
the partners
6. a partner can sue a partn

who mismanage
7. NATIONALITY
7. a partnership is a nation
the country it was created
8. ATTAINMENT OF LEGAL
PERSONALITY
8. the form becomes a jurid

person from the time the
contract begins
1. only the USUFRUCT of the properties of the

partners becomes common property(owned by then and the
partnership); NAKED ownership is retained by each of the
partners
9. DISSOLUTION
9.death, retirement, insolve

civil interdiction, or insanity
a partner dissolves the firm
2. all profits acquired by the industry or work of the partners

become common property
DISTINCTION BETWEEN UNIVERSAL PARTNERSHIP OF ALL PROFITS AND ALL
PRESENT PROPERTY
1. PARTNERSHIP V. CORPORATION
100


Institute of Law
PARTNERSHIP V. CONJUGAL
PARTNERSHIP OF GAINS
FACTORS
1. HOW CREATED
1. by will or consent of the
2. LAW THAT GOVERNS
2. will of the parties gover
3. LEGAL PERSONALITY
3. possesses a legal pers
4. COMMENCEMENT OF THE
PARTNERSHIP
4. begins from the momen

execution of the contract o
stipulation of the parties
5. PURPOSE
5. formed for profit
6. DIVISION OF PROFITS
6. as a rule, profits are

divided according to
previous agreement, and
no agreement, in proportio
to the amount of the
contribution(Art. 1797)
7. MANAGEMENT
7. as a rule, management
conferred upon the partne
as appointed by the other
otherwise, all are equally
considered agents of the
ORDINARY PARTNERSHIP
8. DISSOLUTION
8. there are many ground

for dissolution
9. LIQUIDATION OF
PROFITS
9. there may be division o

even without
dissolution
PARTNERSHIP VS. AGENCY
101


Institute of Law
FACTOR
1. SCOPE
2. REPRESENTATION
PARTNERSHIP
(1988 Bar)
VS.
FACTOR
PARTNERSHIP
1. CREATION
1. is a form of agency
2. a partner is both a
principal for his own interest
3. PURPOSE
and is an agent for
the firm
and the others
4. AGENCY OR
REPRESENTATION
CO-OWNERSHIP
1. created by contract only

( express or implied)
2. has a legal or juridical
Personality
3. for profit
4. as a rule, there is mutual
Representation
5. TRANSFER OF INTEREST
5. cannot substitute another

as partner in his place,
without unanimous consent
6. LENGTH OF EXISTENCE IF
CREATED BY CONTRACT
6. no term limit is set by law
7. PROFITS
7. may be stipulated
8. DISSOLUTION
8. dissolved by death or
incapacity of a partner
9. FORM
PARTNERSHIP
102

9. may be made in any form

except when real property is
contributed, hence public
instrument is needed

Institute of Law
4. interest on a loan though the amount

may vary with profits
5. consideration for the sale of a goodwill
of a business
FACTOR
2. LIABILITY
Principle
of
Delectus
Personae no one can become a
member of a partnership without the
consent of all the partners. (Art. 1804,
CC)
PARTNERSHIP
CONTRIBUTIONS
1. When IMMOVABLES or interest are
1. has juridicalcontributed:
or legal personality
a .shall appear in public instrument (Art.
1771, NCC)
b. inventory of said property shall be
2. as a rule, partnership
becomes
made, signed
by the parties and attached
liable to the third
person
forinstruments (Art. 1773, NCC)
to the public
contracts entered into by a partner
Otherwise partnership is
who acts within scope of authority
VOID
3. TRANSACTIONS
3. generally relates to a
2. Where CAPITAL OR P3,000 or MORE
continuing business of
is contributed, shall appear in Public
various transactions of a
Instrument which must be recorded in
certain kind
SEC
But failure to comply shall

not affect liability of partnership to
members and third person. (Art 1772,
PARTNERSHIP VS. JOINT VENTURE
NCC)
OR JOINT ACCOUNT
Management
Partner appointed in the articles of
partnership shall only perform acts of
administration. (Art. 1800, NCC)
If there are two or more partners:
Each may separately

execute all acts of administration
Except
is any of the
managers should oppose, the
decision of the majority shall
prevail. In case of tie, the partners
owing the CONTROLLING interest
shall prevail. (Art. 1801, NCC)
DUTIES OF PARTNERS
(Art. 1786, NCC)
1. The duty to contribute what had been
promised
2. The duty to deliver the fruits of what had
been delivered
3. the duty to warrant
RIGHTS of the PARTNERSHIP
1. has a personality separate and distinct
from the partners;
2. can acquire or possess property;
3. can incur obligations;
4. can bring actions; and
5. can be adjudged insolvent.
Receipt of a share of the profits is

a prima facie evidence that the recipient is
a partner. This inference, however cannot
be drawn in the following instances:
1. debt by installment
2. wages of an employee/deceased
partner or rent to a landlord
3. annuity to the widow or representative
of a deceased partner
In case it should be
stipulated that that none of the
partners shall act without the consent
of the others, the concurrence of the
other shall be necessary for validity of
the act, and absence or disability of
any one of them cannot be alleged,
unless there is an imminent or grave
injury to the partnership. (Art. 1802,
NCC)
103


Institute of Law
Distribution of Profit and Losses

1. If there is an agreement- profits and
losses shall be distribute in conformity with
such agreement. If the agreement is only
with respect to the profits, the share of the
partners in the losses shall be in the same
proportion as their share in the profits.
(Art. 1797, NCC)
b. when the act is for apparently carrying

on the usual way the business of the
partnership. This is binding on the firm
even if the partner was not really
authorized, provided that the third party is
in GOOD FAITH.
Rights of an Assignee of an interest in
the partnership
1. get whatever assignor-partner would
have obtained
2. avail of usual remedies in case of fraud
in the management
3. ask for annulment of contract of
assignment if he was induced to join
through any of the vices of consent
4. demand an accounting (only in case of
dissolution)
2. If there is no agreement- the profits and

losses shall be distributed as follows:
a. PROFITS:
a.1. Capitalist partner- the
share of a capitalist partner shall
being proportion to what he may
have contributed to the common
fund
a.2. Industrial partnershare of an individual shall be that
which is just and equitable under
circumstances
b. LOSSES:
b.1. Capitalist- share of an
capitalist partner shall be in
proportion to what he may have
contributed
b.2 Industrial- shall no be
liable for losses
Effect of CONVEYANCE by a partner of

his
WHOLE
INTEREST
in
the
partnership:
1. It does not dissolve partnership
2. It does not entitle the assignee to
interfere in the management of the
business or to require accounting; or to
inspect the partnership book
3. In case of fraud I the management of
the partnership, he may avail himself of
the usual remedies
4. assignee entitle to require to receive in
accordance with contract the profits
5. Upon dissolution of the partnership, the
assignees is entitled to receive his
assignors interest and then demand for
an accounting
Liability and Losses

Distinguished
Liability refers to responsibility toward third
persons. Losses refers to responsibility
among the partners Property rights of a
partner
1. rights in specific partnership property
2. interest in the partnership it is the only
thing which is assignable
3. right to participate in the management
(Art. 1810, CC)
Effects of conveyance by a partner of

his interest in the partnership to a third
person
1. It does not dissolve the partnership;
2. It does not entitle the assignee to
interfere in the management of the
business, or to require an accounting of
partnership transactions, or to inspect the
partnership books; however, in case of
fraud in the management of the
partnership, he may avail himself of the
usual remedies;
3. It entitles the assignee to receive in
accordance with his contract the profits to
which the assignor would otherwise be
entitled; and
4. Upon dissolution of the partnership, the
assignee is entitled to receive his
assignors interest and may then demand
for accounting (Art. 1813, CC).
Requisites for PARTNERSHIP to be

held LIABLE TO A THIRD PERSON for
the ACT OF ONE OF THE PARTNERS
1. contract was entered into in the name
and for the account of the partnership and
under its signature
2. such partner was authorized to act for
the partnership (Art. 1816, CC)
Requisites when a partner can bind the
partnership. (Art. 1818, NCC)
1. when he is expressly or impliedly
authorized;
2. when he acts in behalf and in the name
of the partnership
_ Instances of implied authorization
a. when the other partners do not object,
although they have knowledge of the act;
CHARGING
ORDER
upon the partners interest in the
104


Institute of Law
partnership refers to the REMEDY

available to a judgment creditor of a
debtor partner to charge the interest of
the latter in the partnership by means
of court order for the purpose of
satisfying the amount of the judgment
when there is no definite term and

no specified undertaking
c. 3. expulsion in good faith of a
member
b. violation of agreement
c. unlawfulness of business
d. loss of specific thing promised to be
contributed before its delivery
e. death of any partner
f. insolvency of any partner or of the
partnership
g. civil interdiction
h. decree of the court (Art. 1831, NCC)
h. 1. insanity
h. 2. incapability to perform part
h. 3. prejudicial conduct
h. 4. persistent breach of
agreement
h. 5. loss in carrying out business
h .6. other equitable grounds
Funds
when
partnership
cannot
recovery properties conveyed under
Art. 1819, NCC
1. when the partners act binds the
partnership under the provision of Art.
1818
2. when purchaser or his assignee, is a
holder for value, without knowledge that
partner had exceeded authority
Art. 1819 speaks of

conveyance, but includes mortgages.
This does not however include sale, or
donation.
Effects of Dissolution
Effect of Knowledge although no notice
was given knowledge of the partner is
also knowledge of the firm although no
notice, provided:
1. That the knowledge was acquired by a
partner who is acting in the particular
matter involved
Knowledge may have

been acquired while ALREADY a
partner, or even PRIOR to that time,
provided that it is present to his mind
2. OR knowledge ,ay have been acquired
by a partner NOT acting in the particular
matte involved, provided that the partner
could reasonably and have communicated
it to the acting partner.
General rule: when firm is dissolved, a

partner can no longer bind the partnership.
(Art 1834,NCC)
Exception:
a. As between partners (Art. 1833, NCC)
When the dissolution is caused by Act
(like withdrawing of a partner);
Insolvency; Death all partners are still
bound to each other; except:
a.1. If the partner acting had knowledge
(as distinguish to Notice but without actual
knowledge if dissolution is caused by an
Act;
a.2. If the partner acting had knowledge or
Notice if dissolution is caused by Death or
Insolvency. (Art. 1833)
b. As between THIRD person(Art. 1834,
NCC)
b.1. business is for winding up
b.2. business is to complete
unfinished transaction
b.3. completely new business with
third parties considered innocent:
b.3.1. when extended
credit to partnership prior
to dissolution an had no
knowledge or
b.3.2. notice of dissolution
b.3.3 when dissolution
had not been advertised
in newspaper of general
circulation
Final stages of a partnership

1. Dissolution - is the change in the
relation of the partners caused by any
partner ceasing to be associated in the
carrying on of the business (Art. 1828,
CC).
2. Winding up - is the process of settling
the business affairs after dissolution.
3. Termination - is the point in time after all
the partnership affairs have been wound
up.
Dissolution
1. Causes of Dissolution (Art. 1830)
a. no violation of Agreement
a. 1. termination of the definite or
specific undertaking
b. 2. express will of partner who
must
act in good faith
105


Institute of Law
GENERAL PARTNER
LIMITED PARTNER
1. can be held
personally liable for
partnership obligations
after all partnership
assets are Exhausted
1. cannot be held
personally liable
2. may participate
in the management of
the partnership
3. can contribute
money or property
Only
3. may contribute
money, property, or
industry to the
common fund
4. name does not

appear in the firm
Name
4. name may appear

in the firm Name
2. does not participate

in Management
5. no limitation on
the right to engage
in another business
partner and which could not be

ascertained from the certificate. (Art. 1865,
CC)
When partner may demand for
FORMAL ACCOUNTING
1. If he is wrongfully excluded from the
partnership business or possession of
its property by his co-partners
2. If the right exist under the term of any
agreement
3. Partner has derived profits from any
transaction
connected
with
the
formation or conduct
4. Whenever other circumstances render
it just and reasonable (Art. 1809,
1807, NCC)
Winding Up
1. Persons Authorized to Wind up (Art.
1836, NCC)
a. Extrajudicial
1.a by partner who have not wrongfully
dissolved the partnership
1.b. by legal representative of the last
surviving partner (when all partners are
already dead), provided that last survivor
was not insolvent.
b. judicially- by the court upon petition of
any partner, his legal representative or his
assignee
5. there is a limitation
on the right to engage
in another business,
or in the same kind
of business
Right of partners after DISSOLUTION
(Art. 1837, NCC)
a. if partnership contract is not violated
a. 1. partnership property applied
to discharge partnership liability
a.2. surplus to be paid in cash to
partners
b. When in contravention:
b.1. innocent partner
b.1.1. all rights specified
in Art.1837
b.1.2. to damages for
breach of agreement.
b.1.3. right to continue
partnership
either
by
themselves or jointly with
others
c. guilty partner
c.1. no share in goodwill
c.2. payment of damages
Right of partner when contract is
RESCINDED (Art. 1839, NCC)
1. Right of Lien or Retention
2. Right of subrogation
3. Right of Indemnification
ORDER OF PAYMENT in the WINDING

UP of PARTNERSHIP LIABILITIES:
a. General Partnership
a.1. those owing to creditors other than
partners.
a.2. those owing to partners other than for
capital or profits.
a.3. those owing to partners in respect of
capital.
a.4. those owing to partners in respect of
profits (Art. 1839, CC).
Limited Partnership
1. those creditors, in the order of priority
as provided to by law except those to
limited partners on account of their
contributions and to general partners.
2. those to limited partners in respect to
their share of the profits and other
compensation by way of income on
their contributions.
3. those to limited partners in respect to
the capital of their contributions.
4. those to general partners other than
for capital and profits.
5. those to general partners in respect to
profits.
Substituted Limited Partner a person

admitted to all the rights of a limited
partner who has died or has assigned his
interests in the partnership. He has all
rights and powers and subject to all
restrictions and liabilities of his assignor,
except those liabilities of which he was
ignorant of at the time he became a limited
106


Institute of Law
6. those to general partners in respect to

capital (Art. 1863, CC).
a. general- when it comprises all the

business of the principal
b. specified- when it comprises one or
more specific transaction
6. as to third person
a. agent de jure
b. agent by estoppel
AGENCY
Contract of agency a person binds
himself to render some service or to do
something in representation or on behalf
of another with the consent or authority of
the latter. (Art. 1868, CC)
Agency by ESTOPPEL- One who clothes

another with apparent authority as his
agent, and holds him out to the public as
such, can not be permitted to deny the
authority of such person to act as his
agent, to the prejudice of innocent third
parties dealing with such person in good
faith, and in the honest belief that he is
what he appears to be. (Art. 1911, NCC)
Requisites of contract of agency

(Keyword: CORS)
1. consent to establish agency (express
or implied);
2. the object is the execution of a
juridical act in relation to a third
person;
3. agent acts as a representative and not
for himself but for the principal; and
4. agent acts within the scope of his
authority (Rallos vs. Felix Go Chan 7
Sons, 81 SCRA 251).
DISTINCTIONS
1. Agency by Estoppel vs. Implied
Agency
Characteristics of Agency
(Keyword: PNBPCO)
1. Principal
2. Nominate
3. Bilateral
4. Preparatory
5. Commutative
6. generally, Onerous
FACTOR
IMPLIED
1. as
between
the principal
and the
Agent
1. agent is a 1. agent is not true

true agent
agent, hence no
with right
right as such
and duties
of an agent
2. as to third
person
2. principal
is always
liable
Capacity
Principal- must be capacitated to act for
himself
Agent- must be able to bind himself, but
only so far as his obligations to his
principal are concerned. Insofar as third
person, it is enough that his principal be
the one capacitated.
KINDS of Agency (Keyword: EIFCET)
1. express
2. implied
a. Acts of the principal
b. principals Silence
c. principals Lack of action
d. principals Failure to repudiate the
agency(Art. 1869, NCC)
3. as to form
a. oral
b. written
4. as to cause
a. onerous
b. gratuitous
5. as to extent
BY ESTOPPEL
2. if estoppel is
caused by the
principal, he is
liable but only if
the third person
acted on the
misrepresentation
If estoppel is
caused by the
agent, it is only the
agent who is
liable, never the
alleged principal
Agency coupled with Interest- refers to

agency wherein the agent has acquire
some interest of his own in the execution
of the authority granted to him in addition
to his mere interest in the contract of
employment with the resulting gains.
(1927, 1930, 1979, 1980 Bar)
107


Institute of Law
2. AGENCY VS. LOAN

AGENCY
LOAN
1. agent may be
given funds by the
principal to advance
the latters business
1. borrower is given
money for the
purposes of his own,
and must generally
return it, whether or
not his own business
is successful
3. AGENCY VS. GUARDIANSHIP
FACTOR
AGENT
1.representation
1. agent represents a capacitated

person
2. appointment
2. by the principal and can be

removed by the latter
3. control
3. subject to direction of the principal
4. liability
4. can make the principal personally

liable
FACTOR
AGENCY
LEASE OF PROPERTY
1. control
1. agent is controlled
by the Principal
2. object
2. agency may involve

2. obviously, it involves
things other than the property Only property
3.representation
3. agent can bind the

principal
1. lease is not controlled by

the lessor
3. the lessee, cannot bind

the lessor
4. AGENCY VS. LEASE OF PROPERTY

5. AGENCY VS. NEGOTIORUM GESTIO
FACTOR
AGENCY
NEGOTIORUM GESTIO
1. contract
1. there is a contract,
expressly or impliedly
2. control
2. agent is controlled by the 2. officious manager

principal
follows his judgment
and the presumed will
3. created by the parties
of the owner
3. legal
relationship
1. there is only a quasicontract. Representation

was not agreed upon
3. created by law
108

6. AGENCY VS.
INDEPENDENT
CONTRACT

Institute of Law
FACTOR
AGENCY
INDEPENDENT CONTRACT
1. control
1. agent acts under the control

of the Principal
1. independent contractor is
authorized to do the work
according to his own method
without being subjected to control
from others
2. person exercising
Control
2. agent may be controlled by the

principal
2. the employees of the contractor

are not the employees of the
employer of the contractor
3.representation
3. agent can bind the principal
3. ordinarily, The independent

Contractor cannot bind the
employer by tort
4. liability for
negligence
4. the negligence of the agent is

imputable to the
principal
4. the negligence of the

independent contractor is generally
not imputable to
his employer
7. AGENCY VS. TRUST

FACTOR
AGENCY
1. title to property
1. agent usually holds no title at all
2. control over property
2. may not be connected at all with property
3.representation
3. agent acts in the name of the principal
4. period
4. may be terminated or revoked anytime
5. capacity to enter into 5. agent has authority to make contracts

contracts
which will be binding in his Principal
6. relation
Instances when SPECIAL power of

attorney is needed
(Keyword: P3C3L2G2WARN)
1. Payment not usually considered as
acts of administration
2. Principal to render service without
compensation
3. Principal to contract partnership
4. Compromise
5. Conveyance of immovable property
6. Create real right
7. Loan unless it be urgent and
indispensable for the preservation
8. Lease of real property for 1year
9. Guaranty or Surety
10. Gifts
11. Waive obligation gratuitously
12. Accept or Repudiate inheritance
13. Ratify obligations created before
agency
14. Novation
6. is actually a contractual relation
109


Institute of Law
General and Special Power of Attorney

distinguished
The former pertains only to mere
acts of administration. The latter needed
to perform acts of strict dominion or
ownership or gratuitous contract or
contracts where personal trust and
confidence is of essence in an agreement.
(Art 1877, 1878, NCC)
1. Expiration of the period

2. Death, civil interdiction, insanity,
insolvency of the principal or the
agent;
3. Withdrawal of the agent;
4.
Accomplishment of the purpose for
which the agency was created
5. Revocation;
6. Dissolution of the firm which accepted
the agency; and
Effects of agents acts

1. with authority
a. in principals behalf -valid
b. in agents behalf -not binding on the
principal except if the same concerns
things belonging to the principal (Art.
1883, CC)
2. without authority
a. in principals behalf -unenforceable but
may be ratified, validation will retroact
(Arts. 1403, No. 1, 1898, 1910, CC)
b. in agents behalf -valid as between
agent and third person
* The basis of agency is representation.

On the part of the principal there must be
an actual intention to appoint an agent
naturally inferable from the words or
actions; and on the part of the agent, there
must be an intention to accept the
appointment and act on it, and in the
absence of such intent, there is generally
no agency.
One
factor
which
most
clearly
distinguishes agency from other legal
concept is CONTROL; one person-the
agent-agrees to act under the control or
direction of another - the principal. Indeed,
the very word agency has come to
connote, control by the principal. Where
the relation of agency is dependent upon
the acts of the parties, the law makes no
presumption of agency, and it is always a
fact to be proved, with the burden of proof
resting upon the person alleging the
agency, to show not only the fact of its
existence; but also its nature and extent.
The question of whether or not the
contract is one of agency or sale depends
upon the intention of the parties as
gathered from the whole scope and effect
of the language employed. Ultimately what
is decisive is the intention of the parties.
(Victorias Milling Corporation vs. CA G.R.
No. 117356 June 19 2000)
Authority by Necessity by virtue of

the existence of an emergency, the
authority of an agent is correspondingly
enlarged in order to cope with the
exigencies of the moment
Requisites of authority by necessity
(Keyword: EIEAC)
1. emergency
2. inability of the agent to
communicate with principal
3. exercise of additional authority
for principals own protection
4. adoption of fairly legal means
5. ceasing of authority the
moment
the
emergency
ceases
An agent may appoint a
substitute EXCEPT when there is a
prohibition by the principal to this effect
(Art. 1892, CC).
TORTS & DAMAGES

Quasi-delict the fault or negligence of a
person, who by his act or omission,
connected
or
unconnected,
but
independent from contractual relations,
causes damage to another person. (Art.
2176 NCC)
Cases where the agent is liable for the

acts of the substitute
1. when agent was not given the power
to appoint;
2. when he was given such power, but
without designating the person, and
the person appointed was notoriously
incompetent and insolvent (Art. 1892,
CC)
Elements of Quasi-delict (1988 Bar)

(AFD2N)
1. There must be an act or omission by the
defendant.
An act or omission may be:
a. Punishable RPC applies
MODES for the EXTINGUISHMENT of

the contract of AGENCY (1997 Bar)
(EDWARD)
110


Institute of Law
b. Not punishable Articles 21762194 NCC applies

2. Amounting to fault or negligence
Fault substantive and independent,
which on account of its origin, gives rise to
an obligation between two persons not
similarly bound by any obligation.
Negligence omission to do acts
which result in damage to another;
omission of that diligence which is
required by the nature of the obligation
(Article 1173 of the NCC).
3. Damage suffered or incurred by the
plaintiff.
4. Direct causal relation of element 1, 2
and 3.
5. No pre-existing obligation
Quasi-Delict Distinguished From Delict or
Crime
BASIS
QUASI-DELICT
DELICT OR
Exception: Contractual tort - The
(CULPA
CRIME
existence of contract does not bar the
AQUILIANA)
commission of a tort by one against the
other and the consequent recovery of
There can be a
There can be
damages. Where the act that breaks the1. Legal
basis
of
quasi-delict
as
no crime
contract may also be a tort, the contractual
liability
long
as
there
is
unless there is
Quasi-Delict
(Culpa
Aquiliana)
From
relation of the
parties
does not Distinguished
bar the
fault or
a law clearly
Culpa
Contractual
recovery of damages. (Air France vs.
negligence
punishing the
Carrascoso 124 Phil 722, PSBA vs. CA,
resulting in
act.
CULPA
CULPA
Singson
vs.
Bank
of
P.I.
132
Phil.
597)
damage
or
BASIS
AQUILIANA
CONTRACTUAL
1. Coverage
Nature of of Quasi-delict
Negligence is include
Negligence
is
acts,
negligence
direct,
Merely
to
whether punishable
by law
or incidental
not
substantive
The performance of the
punishable by law, whether criminal or not
and
contractual
criminal in character,
whetherobligation.
intentional
independent.
There is a
2. Criminal
or voluntary or(Rakes
negligent,
which
result in
vs.
preexisting
contact or
the damage toAtlantic
another.
(Elcanoobligation.
vs. Hill, 77Intent
7 Phil.
SCRA 98)
395)
(Rakes vs. Atlantic 7
Phil. 395)
2. Defense of
good father
of a family
3.Presumption
of negligence
This is a
complete and
proper
defense
insofar as
parents,
guardians,
employers
are
concerned
(Art. 2180,
last
paragraph)
There is no
presumption
of
negligence.
The injured
party must
prove the
negligence of
the defendant.
(Cangco vs.
MRC, 38
This is not a 3. Nature

complete andof right
violated
proper
defense in the
selection and
supervision of
the employees
(Cangco vs.
MRC, 38 Phil.4. Liability
for damages
768).
injury to another.
It is
broader in
scope than
crime.
Criminal intent
is not necessary
for quasi-delict
to exist. Fault or
negligent
without intent
will suffice.
Criminal
intent is
essential for
criminal
liability to
exist.
Right violated is
a private right.
Quasi-delict is a
wrongful act
against a
private
individual.
Right violated
is a public one.
Crime is a
wrong against
the State.
Every
quasidelict
gives rise
to liability for
damages.
Some crimes
(like contempt,
illegal
possession of
a
firearm) do not
give rise to
liability for
damages.
There is presumption
of negligence as long
as it can be proved
that there was breach
of the
contract. The
defendant must
prove
5. Proofs
Proof of the
that there wasneeded
fault or
no negligence in the
negligence
111
carrying out of the
requires only
Civil
Law
Study Guidepreponderance
terms
of the
contract.
(Cangco
vs. MRC,
38
Centralized
Bar Operations
2007
of evidence.
Phil 768)
The guilt of the

accused must
be proved
beyond
reasonable
doubt.

Institute of Law
probable consequence of the act or

omission
DOCTRINE
OF
CONTRIBUTORY
NEGLIGENCE - If the negligence of the
plaintiff cooperated with the negligence of
the defendant in bringing about the
accident causing the injury complained of,
such negligence of the plaintiff would be
an absolute bar to recovery. If the
negligence of the plaintiff was merely
contributory to his injury, the immediate
and proximate cause of the accident
causing the injury being the defendant's
negligence, such negligence would not be
a bar to recovery, but the amount
recoverable shall be mitigated by the
court. (Art. 2179, NCC; Rakes v. Atlantic
Gulf Pacific Co., 7 Phil. 359; Cangco v.
Manila Railroad Co., 36 Phil. 766;
Borromeo v. Manila Railroad Co., 44 Phil.
156; Del Prado v. Manila Electric Co., 52
Phil. 900) (See cases of Umali v. Bacani,
69 SCRA 263; Phoenix Construction Inc. &
Armando Carbonell v. IAC & Leonardo
Dionisio, 148 SCRA 353)
6.
Sanction
or
penalty
Reparation or
indemnification
of the injury or
damage.
Doctrine of Imputed Negligence

merely refers to the rule whereby the
negligence of a certain person in a
transaction or act which gave rise to the
injury complained of is imputable or
chargeable against the person for whom
he was acting or against his associates.
Punishment is
either
imprisonment,
fine or both;
sometimes
other
accessory
penalties are
imposed.
Doctrine of last clear chance/Doctrine

of discovered peril where both parties
are guilty of negligence but the negligent
act of one succeeds that of the other by an
appreciable interval of time, the one who
has the last reasonable opportunity to
avoid the impending harm and fails to do
so
is
CHARGEABLE
with
the
consequences without reference to prior
negligence of the other party. (Picart vs.
Smith, 37 Phil. 809) (See cases of Anuran
v. Buno, 123 Phil. 1073; Bustamante v.
CA, 193 SCRA 603; Vda. De Bonifacio v.
BLTB, 34 SCRA 618))
Proximate Cause that cause which in

its natural and continuous sequence,
unbroken by any efficient intervening
cause, produces the injury, and without
which the result would not have occurred.
(38 Am Jur 695) (See cases of Teoque v.
Fernandez, 51 SCRA 18; Bataclan v.
Medina, 102 Phil. 181)
The Doctrine Of Last Clear Chance is

NOT applicable in the following instances :
1. It does not arise where a passenger
demands responsibility from the carrier to
enforce its contractual obligations. For it
would be inequitable to exempt the
negligent driver of the jeepney and its
owners on the ground that the other driver
was likewise guilty of negligence.
Any injury
or
damage
is
proximately caused by an act or failure to
act, whenever it appears from the
evidence in the case, that the act or
omission played a substantial part in
bringing about or actually causing the
injury or damage; and the injury or
damage was either a direct result or a
112


Institute of Law
2. As between defendants, the doctrine

cannot be extended into the field of
tortfeasors as a test or whether only one of
them should be held liable to the injured
person by reason of his discovery of the
latter's peril, and it cannot be invoked as
between
defendants
concurrently
negligent. As against third persons, a
negligent actor cannot defend by pleading
that another had negligently failed to take
action which could have avoided the injury.
A plaintiff who, by his conduct, has

brought himself within the operation of the
maxim "Volenti Non Fit Injuria" cannot
recover on the basis of the defendant's
negligence. In the words of the maxim as
translated, "that to which a person assents
is not esteemed in law an injury." (Ilocos
Norte Electric Co. v. CA, G.R. 53401, Nov.
6, 1989)
3. The Last Clear Chance Doctrine can

never apply where the party charged is
required to act instantaneously, and if, the
injury cannot be avoided by the application
of all means at hand after peril is or should
have been discovered. (Pantranco North
Express Inc. vs. Baesa)
4. The Doctrine Of Last Clear Chance
which has been applied to vehicular
accident does not apply to a case where a
building collapses and causes damages to
another. ( Roy vs. CA, G.R. No. 80718,
Jan. 29, 1988)
It applies independently of any

contract relation. One is not legally
injured if he has consented to the act
complained of or was willing that it
should occur.
The maxim. "volenti non fit injuria"

has been said to mean that one,
knowing and comprehending a
change, voluntarily exposed himself to
it , even if he is not negligent. In so
doing, he is deemed to have assumed
the risk and is precluded from a
recovery for an injury resulting
therefrom
.
ASSUMPTION OF RISK
Assumption of the risk in its

primary sense arises by assuming
through contract, which may be
implied, the risk of a known danger. Its
essence is venturousness. It implies
intentional exposure to a known
danger, it embraces a mental state of
willingness.
Res Ipsa Loquitor

1. It means the thing speaks for itself.
2. It is a qualified exception to the general
rule that negligence is not to be presumed
but must be affirmatively proved.
3. A phrase often used in actions for
negligence is required beyond the
accident itself.
4. This can be invoked when and only
when under the circumstance involved,
direct evidence is absent and not readily
available.
5. Other cases: removal of public officers,
suspension of the practice of law of a
lawyer and medical malpractice. (See
Africa v Caltex, 16 SCRA 448, Rep. of the
Phil. v. Luzon Stevedoring Corp., 21 SCRA
279)
WHEN THE DOCTRINE DOES NOT

APPLY
1. Where one person created a danger
and another person, with knowledge and
appreciation of its existence, voluntarily
assume the risk of such danger but is not
injured by it, even though he is injured in
some other way in attempting to withdraw
from the scene after the degree of danger
increases. Thus, where the plaintiff
stopped to watch the defendant's crew
engaged in purging a pipeline with a
pressure hose, and when a connection
broke, causing the hose to rise in the air
and whirl about, the plaintiff ran from the
place where he was standing into the path
of an automobile which struck him,
assumption of risk was not a defense.
Requisites of Res Ipsa Loquitor ( KAN )

1. The occurrence is the kind of thing that
does not ordinarily happen without
negligence.
2. The occurrence must have been caused
by an agency or instrumentality within the
exclusive control of the defendant.
3. The occurrence was not due to
contribution or voluntary action of the
plaintiff. (Republic vs. Luzon Stevedoring
Corp., 21 SCRA 279).
2. The defense of assumption of risk is not

available to the employer in cases covered
by the Workmen's Compensation Act. The
reason is that under the said act, the
burden of risk of industrial accidents has
VOLENTI NON FIT INJURIA
113


Institute of Law
been transferred by the law from the

employee to the employer. Under the
Workmen's Compensation Act,
the
employer is liable for damages or
compensation to the employee for any
injuries which the employee may suffer
from any accidents arising out of and in
the course of his employment or other
illness
directly
caused
by
such
employment.
them when he engages in an activity

from which they are likely to arise. If a
person has knowledge that unusual
consequences may result from the
negligent act, he can be held liable for
injurious consequence of that kind of
act. (See cases of People v. Eleazar,
et.al., 3 CA Rep. (2s) 825; 5 Am Jur
601)
Principle of Damnum Absque Injuria
1. means damage without injury
2. loss or harm was not the result of a
violation of a legal duty
3. no redress can be given by the courts
because there is no legal wrong. RULE: If
there is no legal wrong or violation of a
right, the act of a person may not result in
an action for damages.
Principle of Concurrent Cause where

the concurrent or successive negligent act
or omission of 2 or more persons,
although acting independently, are in
combination, the direct and proximate
cause of a single injury to a person, and it
is impossible to determine what proportion
each contributed to the injury, either is
responsible for the whole injury, even
though his act alone might not have
caused the entire injury.
Injury the illegal invasion of a legal right

Damage loss, hurt or harm which results
from injury
THE EMERGENCY OR SUDDEN PERIL

DOCTRINE
Under the emergency rule, an

automobile driver who, by the
negligence of another, is suddenly
placed in an emergency and
compelled to act instantly to avoid a
collision or injury is not guilty of
negligence if he make such choice as
a person of ordinary prudence placed
in such a position might make, even
though he did not make the wisest
choice and one that would have been
required in the exercise of an ordinary
care, but for the emergency.
The reason for this is that a

person who is confronted with a
sudden emergency may be left with no
time for thought and must make a
speedy decision a largely upon
impulse or instinct, unlike one who has
had an opportunity to reflect.
But the emergency doctrine is

applicable only where the emerging
situation is sudden and unexpected,
and is such as to deprive the actor of
all opportunity for deliberation.
It obviously cannot serve to

excuse the actor when the emergency
has been created through his own
negligence, since he is not permitted
to shield himself behind an occurrence
which resulted from his very own fault.
A further qualification is that some

emergencies must be anticipated, and
the actor must be prepared to meet
Damages
the
recompense
or
compensation awarded for the injury
suffered
Negligence a failure to observe that
degree of care, precaution and vigilance
that
circumstances
justly
demand,
whereby another person suffers injury.
Instances
where
negligence
is
presumed
1. Art. 2180,NCC (Vicarious Liability)
negligence of employer: RESPONDEAT
SUPERIOR negligence of employee is
conclusively presumed negligence of
employer
2. Art. 2184, NCC VEHICLE MISHAP
drivers negligence if found guilty of
reckless driving or violation of traffic
regulations: owner of the vehicle solidarily
liable with his driver if inside the vehicle
and could have, by the use of due
diligence, prevented the misfortune. (2002
Bar
3. Art. 2188 Defendant presumed
negligent if death or injury results from
possession of dangerous weapons or
substances
4. Art. 2183 Possessor of an animal is
responsible for the damage such animal
may cause.
114


Institute of Law
5. Art. 1733 and 1756 loss, deterioration

and destruction of goods or in case of
death or injuries to passenger: COMMON
CARRIER is negligent
*The manager used in the law is

synonymous with employer. Here, he must
himself be the owner.
ART. 2176,2180, NCC ART. 100,103, RPC

1. direct or primary
liability
subsidiary liability
2. employee need not

be insolvent
employee must be
insolvent
3. not necessary that

the employer is
engaged in some
kind of industry
employer must be
engaged in some
kind of industry
4.defense of good
father of a family/
due diligence in the
selection and
supervision of
employees
defense is not
available
even if employers are not

engaged in any business or
industry.
5. The State - acting through a special

agent and not when the damage has been
caused by the official to whom the task
done properly pertains.
6. Teachers or heads of establishments
of arts and trades for pupils and
students or apprentices that remain in
their custody.
Applies to academic institutions as
well
liability attaches to the teacherincharge.
Persons vicariously liable (Art. 2180)

(2002 Bar) (Keyword: FGOEST)
1. Father, or in case of death or
incapacity, the mother.
damage caused by minor children
living in their company
The responsibility treated in this

article shall cease when the
persons herein mentioned prove
that they exercised the diligence
of a good father of a family to
prevent damage. (Art. 2180, CC)
Liability of the EMPLOYER under Art

2180 of NCC distinguished from liability
under Art. 100 of RPC (1997 Bar)
Requisites Of Strict Liability. To
establish the liability of the manufacturer
or requisites must be established(Keyword: MNPIF)
1. The defendant is the manufacturer or
processor of foodstuff, drinks, toilet
articles and similar goods involved;
2. The defendant used noxious or
harmful
substances
in
the
manufacture or processing of the
foodstuff, drink or toilet articles and
similar goods;
3. Plaintiff used or consumed such
product unaware of the injurious
condition of the product;
4. Plaintiffs injury or death was caused
by the product used or consumed;
5. The forms or kinds of damages
suffered and the amount thereof.
Under RA 6809, which took effect on

December 13, 1989, the age of majority is
lowered
to
18
years
of
age.
Notwithstanding this, even if the child is
over 18 but below 21 years of age, his
father or mother or guardian may still be
liable for his acts or omissions under Art.
2180 of NCC.
2. Guardians
for minors or incapacitated
under their authority
living in their company
3. Owners and managers of an
establishment or enterprise:
for their employees
in the service of the branches in
which they are employed, or
on occasion of their functions.
4. Employers
for employees and household
helpers
acting within the scope of their
assigned task
Joint Tortfeasors Solidarily Liable

Joint tortfeasors are jointly and severally
liable for the tort which they commit. The
person injured may sue all of them, or any
number less than all, and all together are
jointly and severally liable for the whole
damage. It is no defense for the one sued
alone, but the others who participated in
115


Institute of Law
the wrongful act are not joined with them

as defendants; nor it is any excuse for him
that his participation in the tort was
insignificant as compared with that of the
others.
from the nature of the case, be proved

with certainty. (Art. 2224, CC.)
5. Liquidated damages that agreed
upon by the parties to a contract, to be
paid in case of breach thereof. (Art. 2226,
CC.)
Defenses in Quasi-Delict
(Keyword: NLCDAPR)
1. NEGLIGENCE of petitioner or of
another
2. LAST CLEAR CHANCE doctrine
3. CONTRIBUTORY NEGLIGENCE
4. DUE DILIGENCE in the selection and
supervision of employees
5. ASSUMPTION OF RISK
6. PRESCRIPTION 4 years from date
quasi-delict
occurred
or
was
committed
7. RES JUDICATA
6. Exemplary or corrective damages

imposed by way of example or correction
for the public good, in addition to the
moral,
temperate,
liquidated
or
compensatory damages. (Art. 2229, CC.)
The general rule that actual and
compensatory damages must be
proved is subject to the following
exceptions
1. When a penalty clause is agreed upon
in the contract between the parties
(Art. 1226);
2. When the liquidated damages have
been agreed upon (Art. 2226);
3. When the loss is presumed as when a
child or spouse dies as a result of the
act or omission of a person
(Manzanares vs. Moreta, 38 Phil.
821);
4. Forfeiture bonds in favor of the
government for the purpose of
promoting public policy or interest (Far
Eastern Surety and Insurance Co. vs.
Court of Appeals, 104 Phil. 702);
5. Death
caused
within
the
contemplation of Art. 2206.
Damages the sum of money which the

law awards or imposes as a pecuniary
compensation, recompense or satisfaction
for an injury done or wrong sustained as a
consequence of the breach of some duty
or violation of some right.
Kinds of Damages
(Keyword: MENTAL)
1. Actual or compensatory damages
the compensation awarded to a person for
such pecuniary loss suffered by him as he
has duly proved. (Art. 2199, CC.)
Two Kinds:
a. Dano Emergente value of the loss
suffered.
b. Lucro Cessante profits which the
obligee failed to obtain.
Damages Due In Case of Death

(Keyword: ILMEAI)
1. indemnity for death of victim =
P50,000.00
2. for loss of earning capacity of victim
3. moral damages for mental anguish
4. exemplary damages, when crime is
attended by 1 or more aggravating
circumstances
5. attorney's fees and expenses for
litigation
6. interests in proper cases (Art. 2206,
CC)
2. Moral damages the compensation

awarded to a person for physical suffering,
mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings,
moral shock, social humiliation and similar
injury. (Art.2217, CC.)
3. Nominal damages an amount
awarded to a person in order that his right,
which had been violated or invaded, may
be vindicated or recognized. (Art. 2221,
CC.) It cannot co-exist with actual
damages.
Formula for determining the life

expectancy of a deceased person as a
factor in computing the amount of
damages that should be awarded for
the loss of earning capacity of the
deceased
2/3 x (80 less age of the person at

the time of death) = life expectancy.
4. Temperate or moderate damages

the compensation which is more than
nominal but less than compensatory
damages, awarded to a person when the
court finds that he has suffered some
pecuniary loss, but its amount cannot,
116


Institute of Law
Thus if the person died at the age of 32,

2/3 of the difference between age 80 and
32, would be his life expectancy. (Villa Rey
Transit vs. CA, 31 SCRA 511).
6. In actions for legal support;

7. In actions for the recovery of wages of
household helpers, laborers, and
skilled workers;
8. In actions for indemnity under
workmens
compensation
and
employers liability laws;
9. In a separate civil action to recover
civil liability arising from a crime;
10. When at least double judicial costs are
awarded;
11. In any other case where the court
deems it just and equitable that
attorneys fees and expenses of
litigation should be recovered. (Art.
2208, CC.)
Principle of Subrogation- Art. 2207 of

the Civil Code is founded on the principle
of subrogation. If the insured property is
destroyed or damaged through the fault or
negligence of a party other than the
assured, the insurer will be subrogated to
the rights of the assured to recover from
the wrongdoer to the extent that the
insurer has been obligated to pay (Pan
Malayan Insurance Corp. vs. CA, 184
SCRA 54).
Instances
When
Principle
of
Subrogation
Does not apply
1. When the assured by his own act
releases the wrongdoer or third
person liable for the loss or damage
from liability.
2. When the insurer pays the assured
the value of the loss goods without
notifying the carrier who has in good
faith settled the assureds claim for
loss.
3. When the insurer pays the assured for
a loss which is not a risk covered by
the policy, the former has no right of
subrogation against the third party
liable for the loss (Pan Malayan Inc.,
Corp. vs. CA, 184 SCRA 54).
Circumstances where the court cannot

equitably mitigate the damages in
contacts,
quasi-contacts,
and
quasidelicts: (Keyword: CBELL)
1. The plaintiff himself has contravened
the terms of the contract;
2. The plaintiff has derived some benefit
as a result of the contract;
3. In cases where exemplary damages
are to be awarded, that the defendant
acted upon the advice of counsel;
4. The loss would have resulted in any
event;
5. That since the filing of the action, the
defendant has done his best to lessen
the plaintiffs loss or injury. (Art. 2215,
CC.)
Instances where Moral Damages is
Recoverable (Keyword: CQSA1 2LMA2)
1. Criminal offenses resulting in physical
injuries
2. Quasi-delicts causing physical injuries
3. Seduction, rape and other lascivious
acts
4. Adultery or concubinage
5. Illegal or arbitrary detention or arrest
6. Illegal search
7. Libel, slander or any form of
defamation
8. Malicious prosecution
9. Action for damages against persons
who shows disrespect for the dead
10. Acts and action referred to in Art 21,
26, 27, 28, 29, 30, 32, 34 and 35. (Art.
2219, CC)
Instances where attorneys fees and

expenses of litigation recoverable as
damages
In the absence of stipulation, attorneys
fees and expenses of litigation, other than
judicial costs, cannot be recovered,
except:
1. When exemplary damages are
awarded;
2. When the defendants act or omission
has compelled the plaintiff to litigate
with third persons or to incur expenses
to protect his interest;
3. In criminal cases of malicious
prosecution against the plaintiff;
4. In case of a clearly unfounded civil
action or proceeding against the
plaintiff;
5. Where the defendant acted in gross
and evident bad faith in refusing to
satisfy the plaintiffs plainly valid, just
and demandable claim;
In the case of People vs. Catubig

(363 SCRA 635), the Supreme Court
now makes a categorical decision that
exemplary damages are awarded
when an aggravating circumstance is
attendant in the case. The Court no
117


Institute of Law
Basis
longer makes a distinction whether the

aggravating
is qualifying
Comparativecircumstance
Chart In The Grant
Of Damages, Interests And Attorneys Fees In Torts And Damages
or ordinary so long that it is stated in
Actual
Moral
Exemplary
Liquidated
Temperate
Nominal
Interests
the
information
or the complaint.
Damages
Damages
Damages
Damages
Damages
Damages
Crimes or
delicts
Grantable
(Arts.
2202;
2206).
Grantable
[Art. 2219
(1); (3); (4);
(5) & (6)]
Grantable as
part of the civil
liability if
committed
with one or
more
aggravating
circumstances
(Art. 2230)
Not
applicable
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Not
applicable
Grantable
as in
trespass to
dwelling
(Arts.
2221;
2222)
Quasidelicts
or
culpa
aquiliana
Grantable
(Art.2202)
Grantable
[Art. 2219
(2)]
Not grantable
unless
defendant
acted with
gross
negligence
(Art. 2231)
Not
applicable
Contracts
Grantable
(Art.2201)
Not
grantable
unless the
breach is
fraudulent
or done in
bad faith
(Art.2220)
Not grantable
unless
defendant
acted in
wanton,
fraudulent,
reckless,
oppressive or
malevolent
manner (Art.
2232)
Grantable
(Art. 2226)
QuasiContracts
Grantable
(Arts.
2201;
2167).
Not
applicable
Not grantable
unless
defendant
acted in
wanton,
fraudulent,
reckless,
oppressive or
malevolent
manner (Art.
2232)
Not
applicable
Damage to
property
Grantable
(Art. 2200)
Grantable
(Art.2220)
if injury to
property is
willful.
Grantable if
Not
necessary for
applicable
public good,
and is in
addition to
other damages
118
except
Civil
Law
Study Guide
nominal
damages
(Art.
Centralized
Bar Operations 2007
2229)
or as part
of the
damages
Grantable
(Art.2211)
Attorneys
Fees
Allowable (Art
2208[3] &
[9])
Grantable
(Art. 2222)
Grantable
(Art.2211)
Allowable
[Art.
2208(2);(11)]
Grantable
(Art. 2222)
May be
stipulated
(e.g. loan).
(Art. 1933,
third par.;
Art. 2209 &
2210)
Allowable as a
penalty
[Art.1226; Art
2208(11)]
Grantable
(Art. 2222)
Grantable
(solutio
indebiti)
when
acceptance
of undue
payment
was in bad
faith (Art.
2159)
Allowable
[Art. 2208
(5); (11)]
Grantable
(Art. 2222,
last
phrase)
Not
applicable
Allowable
[Art. 2208
(5); (9);& (11)]

Institute of Law
CONFLICT OF LAWS
Conflict of laws a part of the municipal
laws of a state which directs its courts and
administrative agencies, when confronted
with a legal problem involving a foreign
element, whether or not they should apply
a foreign law or foreign laws
Elements of Conflict of Laws
(Keyword: PDLA)
1. part of municipal law of a state
2. there is a directive to courts and
administrative bodies
3. there is a legal problem involving a
foreign element
4. there is either an application or nonapplication of a foreign law
Doctrine of Forum non conveniens a
principle in Private International Law that
where the ends of justice strongly indicate
that the controversy maybe more suitably
tried elsewhere, then jurisdiction should be
declined and the parties relegated to the
relief to be sought in another forum. (2002
Bar)
Purpose of the Doctrine- to deter the
practice of global forum shopping, that is,
119


Institute of Law
to prevent non-resident litigants from

choosing the forum or place wherein to
bring their suit for malicious reasons, such
as to secure procedural advantages, to
annoy harass the defendant, and to avoid
overcrowded dockets. (Bank of America
NT 7SA vs. SA vs. Court of Appeals, 400
CSRA 156)
4. The judgment must not contravene a

sound and established public policy of
the forum
5. Judgment must be res judicata in the
state that rendered it.
Instances when foreign laws may not
be applied in the law of the forum.
(Keyword: EAF2QFIE)
1. Where enforcement of foreign law is
contrary to an important public policy
of the forum.
2. Where application of foreign law would
be
against
good
morality
as
understood in the forum
3. When a foreign law sought to be
applied to a conflicts case is penal in
nature, the forum may refuse its
application.
4. When the case merely involves
Foreign procedural law
5. Questions relates to immovable
property in the forum
6. Foreign fiscal or administrative law
involve injustice or injury to the
residents of the forum
endanger the foreign relations or vital
interest of the state.
The Doctrine of Forum non-conveniens

should not be used as a ground for a
motion to dismiss because Section 1, Rule
16 of the Rules of Court does not include
said doctrine as a ground. (Bank of
America NT 7SA vs. SA vs. Court of
Appeals, 400 CSRA 156)
Recognition and Enforcement of
Foreign Judgment distinguished
RECOGNITION
It merely involves
the sense of justice
and does not require
either action or
special proceeding
and may exist
without enforcement
ENFORCEMENT
It exists when a
plaintiff wants the
courts to positively
carry out and make
effective in the
Philippines a foreign
judgment.
It implies a direct act
of sovereignty and
necessitates a
separate action
precisely to make
the foreign judgment
effective.
It necessarily carries
with it recognition
Philippine Conflict Rules found in the

Civil Code
1. Art 14 - generality of the Philippine
Penal Law and exceptions.
2. Art 15 - laws on family rights and
duties, or to the status, condition and legal
capacity of persons are binding upon
Filipino citizens, even though living
abroad. By implication, this also applies to
aliens.
Example:
When an American in Manila who is sued
for bigamy, presents in defense a foreign
judgment of divorce decree dissolving his
prior marriage, what he wants is
recognition of the foreign judgment not
enforcement.
NB: Both in recognition and enforcement,
proof of the foreign judgment must be
presented.
3. Art 16 par 2 - in testate and intestate

succession, the amount of successional
rights, order of succession, intrinsic validity
of the testamentary provisions, and the
capacity to succeed shall be regulated by
the national law of the person whose
succession is under consideration (1976,
1977, 1988 Bar)
Requisites
for
recognition
and
enforcement of a Foreign Judgment in
the Philippines (Keyword: PJN2R)
1. There must be a proof of foreign
judgment
2. Judgment be on a civil or commercial
matter
3. There must be no lack of jurisdiction,
no want of notice, no collusion, and no
fraud
4. Art 17 par. 1 & 2 - Lex Loci

Celebrationis. Rule on contracts and its
exceptions.
5. Art 21 FC - when either or both of the
parties to a marriage are foreigners who
apply for a marriage license to provide
120


Institute of Law
themselves with a certificate of legal

capacity, to contract marriage, to be
issued by their respective diplomatic or
consular officials.
6. Art 26 FC - all marriages solemnized
outside the Philippines in accordance with
the law in force in country where they were
solemnized and valid there as
such, shall
Synopsis
of the Rules on Real and Personal Property
also be valid in this country, except those
prohibited under
Art 35 (1),SITUATION
(4), (5) and (6),
FACTUAL
POINT OF CONTACT
36, 37, and 38FC
1. REAL PROPERTY ( extrinsic and
1. Lex rei sitae ( Art. 16, par. 1 Civil Code)
7.
Art 80validity
FC - inofthe
absencetransfers,
of a contrary
intrinsic
alienation,
mortgage,
stipulation
a marriage
settlement,
the
capacity of in
parties,
interpretation
of documents,
property
relations
of
the
spouses
shall
be
effects of ownership, co-ownership, accession,
governed
by
Philippine
laws
regardless
of
usufruct, lease easement, police power, eminent
the
place
of
the
celebration
of
the
domain, taxation, quieting of title, registration, and
marriage
and their residence.
prescription)
8.
Art 815 CC - when a Filipino is in a
Exceptions:
foreign
he is authorized
to make a
a. country
Successional
rights
will in any of the forms established by the
law b.
of the
country
in which he may be.
Capacity
to succeed
Such will may be probated in the Phil.
c. contracts involving real
9. Art 816 - the will of an alien produces
effect
the Phil
if made
the the title
d. inproperty
but which
do notwith
deal with
formalities
prescribed by the law of the
thereto.
place where he resides, or of his country,
or ofe.the Contracts
Civil Codewhere
of thethe
Philreal property is given
as security
10. Art 817 - if an alien makes a will in the
Philippines in accordance with the
formalities prescribed by laws of his
country, it shall have the same effect as if
executed according to the laws of the
Philippines.
11. Art 819 - joint will executed by
Filipinos in a foreign country is not valid
12. Art 829 - if revocation of a will done
outside
the Philippines
by PROPERTY
a person who
2. TANGIBLE
PERSONAL
does
notinhave
his domicile in this country
(choses
possession)
is valid when it is done according to the
law
the place
where
the testator had
a) inof
general
(see the
things
has
domicile
at
the
time
enumerated in No.1)
(Exceptions- same as those
13.
Artproperty
1039 - (see
capacity
for real
No.1))to succeed is
governed by the decedents national law
b) means of transportation
14. Art 1759 - the law of the country to
which
goods are to be transported
1. the
vessels
shall govern the liability of the common
carrier
for means
their loss, destruction or
2. other
deterioration.
C. thing in transitu ( these have a
changing status because they move)
1. loss, destruction, deterioration.
Exceptions:
a. National law of the decedent (Art. 16, par 2,
Civil Code).
b. National law of the decedent ( Art. 1039,
Civil Code)
c.
the law intended will be the proper law of the

contract ( lex loci voluntatis or lex loci
intentiones)
d. The principal contract (usually loan) is

governed by the proper law of the contract
(lex loci voluntatis or the lex loci intentionis).
Note: The mortgage itself, however, is governed by
the lex rei sitae. There is a possibility that the
principal contract is valid but the mortgage is void;
or it may be the other way around. If the principal
contract is void, the mortgage would also be void (
for lack of proper cause for consideration), although
by itself the mortgage could have been valid.
2)
a) lex rei sitae ( Art. 16, par.1, Civil Code).
Exceptions:
Same as those for real property except that in the
example concerning the mortgage, the same must
be
changed to a pledge of personal property.
b)
1. the law of the flag ( or in some case the place of
registry)
2. the law of the depot ( storage place for supplies)
or resting place
C. The law of destination (Art. 1753, Civil Code)

1. Locus regit actum (where seized) because
2. Validity and effect of the goods. 121
said place is their temporary situs.
Civil Law Study Guide2. Lex loci voluntatis or lex loci intentionis
Centralized
Bar Operations 2007 because here there is a contract.
3. disposition or alienage
of the goods

Institute of Law
Synopsis of the Rules on Real and Personal Property

FACTUAL SITUATION
POINT OF CONTACT
3. INTANGIBLE PERSONAL PROPERTY

(Chooses in Action)
a. Recovery of debts or involuntary assignment
of debts (garnishment)
3.
Where debtor may be effectively served with
summons ( usually the domicile)
a. lex loci voluntatis or lex loci intentiones
( proper law of the contract) other theories:
b. Voluntary assignment of debts

c.
1.
2.
3.
4.
Taxation of debts
national law of the debtor or creditor

Domicile of the debtor or the creditor
lex loci solutionis
d. Administration of debts
b. Domicile of creditor
e. Negotiability or non-negotiability of an
instrument( bill of exchange,for example)
f.
Validity of transfer, delivery or negotiation of

the instrument
Lex situs of assets of the debtor ( for these

assets can be held liable for the payment of
the debts )
d. The right embodied in the instrument (for

example, in the case of a Swedish bill of
exchange, Swedish law determine its
negotiability)
g. Effect on a corporation of the sale of

corporate shares
h. Effect between the parties of the sale
corporate shares
i.
c.
Taxation on the dividends of corporate

shares
e. In general, situs of the instrument at the time

of transfer, delivery or negotiation
f.
Law of the place of incorporation
j.
Taxation on the income from the sale of

corporate shares
k.
Franchise
g. Lex loci voluntatis or lex loci intentiones

( proper law of the contract) for this is
really a contract; usually, this is the place
where the certificates is delivered
l.
Goodwill of a business and taxation thereon
h. Law of the place of incorporation
m. Patents, copyrights, trademarks, trade

names.
i.
Law of the place where the sale was

consummated
j.
Law of the place that granted them.
k.
Law of the place where the business is

carried on.
l.
In the absence of treaty, they are protected

only by the state that granted them.
Note: Foreigners may sue on infringement of trade

names in the Philippines only if Filipinos granted
reciprocal concessions in the state of the foreigners
122

Institute of Law
Synopsis of the Rules on Marriage as a Contract

FACTUAL SITUATION
POINT OF CONTACT
Synopsis of the Rules on the Status in General

1. If celebrated abroad
FACTUAL SITUATION
(a) between
Filipinos
Beginning
of personality of
natural persons
Ways and effects of
emancipation
Age of majority
Use of names and
surnames
(b) between foreigners
Use of Titles of nobility
Absence
Presumptions of death and
survivorship
POINT OF CONTACT
(a)
lex locilaw
celebrationis
National
of the childis without
prejudice
to
the
under
(Art. 15, Civil exceptions
Code)
Art. 26,35 (1, 4,5,6), 36,37 and 38
National law (Art.15)
of the Family Code (bigamous,
polygamous and incestuous
marriages) and consular marriages
b) Lex loci celebrationis except if the

National
marriage
is law (Art.15)
National
law (Art.15)
1. Highly immoral
(like bigamous
Lex fori
(See
Art.43,390,391,
Civil or
and polygamous marriages)
Code;Universally
Rule 131, Sec
5(jj)
Rules
of
considered incestuous,
Court)i.e., between brothers and sisters
whole or half-blood.
From the above, the status of a person depends on his national law. (Art. 15)
(c) Mixed
(c) apply (1-b) to uphold the validity
of the marriage
2. If celebrated in the Philippines
2.
(a) between foreigners
(a) national law (Art. 21, Family

Code) provided the marriage is not
highly immoral or universally
considered incestuous)
(b) Mixed
(b) National law of the Filipino

(otherwise public policy maybe
militated against )
123
3. Marriage
by proxy
( Note: a
Civil
Law Study
Guide
marriage
byOperations
proxy is considered
as
Centralized
Bar
2007
where the proxy appears)
3. Lex loci celebrationis (with

prejudice to the foregoing rules)

Institute of Law
Synopsis of the Rules on Marriage as a Status

FACTUAL SITUATION
1. Personal Rights and Obligations
between Husband and Wife (mutual
fidelity, cohabitation, respect, assistance
and support; right of wife to use
husbands name; duty to follow
husbands residence)
POINT OF CONTACT
1. National law of the husband.
2. Property relations between Husband

and Wife
2. National law of the husband, without

the prejudice to what the Civil Code
provides concerning the Real Property
located in the Philippines. (Art.80)
Synopsis of the Rules On Annulment of a Voidable Marriage and the Declaration of

Nullity of a Void Marriage
FACTUAL SITUATION
Grounds for annulment
( if the marriage is merely voidable) and
grounds for the declaration of nullity (if
the marriage is void ab initio)
POINT OF CONTACT
The law alleged to have been violated: in
other words, it is the law of the place of
celebration (lex loci celebrationis) subject
to the exceptions, that furnishes the
grounds)
Nota Bene: The proper court to annul the marriage or to declare it null and void is the court
of the country of which the parties are nationals or domiciliaries.
124


Institute of Law
Synopsis of Rules for Absolute Divorce

FACTUAL SITUATION
POINT OF CONTACT
1. If sought in the Philippines whether by

Filipinos or by foreigners
1. Lex fori ( therefore, will not be granted)

exception: Moslem divorces
2. If obtained abroad:
a) between Filipinos
2.
a) national law ( therefore, not valid here
even if valid abroad; and this is true
regardless of the cause of the divorce)
b) between foreigners
b) national law ( if valid in the State

granting it, and valid according to the
national law of the parties, will also be
valid here) ( See Art. 15, Civil Code)
c) Mixed
c) Apply (a) and (b) respectively. See

however, Art. 26, second par. Of the
Family Code.
Synopsis of Conflict Rules on Paternity, Adoption, Guardianship, and Funerals
FACTUAL SITUATION
POINT OF CONTACT
1. Paternity and Filiation (Including
1)
Parental and Reciprocal Support)
a) if legitimate national law of the
legitimacy, recognition, presumptions of
father (Art. 15, Civil Code)
legitimacy, rights and obligations of
parents and children,
including
parental
b) if Illegitimate
national law of the
Conflicts
rules on
Some Grounds
for Legal Separation
authority, and reciprocal support.
mother unless recognized by the father in
which case
the national
law of the father.
FACTUAL SITUATION
POINT
OF CONTACT
(Art. 15, Civil Code)
1. Grounds for legal separation
(a) Adultery
(b) Concubinage
1. National law of the parties

c)
(a)determination
If of the sameoforwhether
commonlegitimate
nationality
or
illegitimate
(
national
law
of the father,
the common national law
governs
as a rule) Art. 15 of the Civil Code.
2. Adoptionof the status of

(c) Attempt creation
by one spouse
adoption;
rights
and
obligations
of
against the life of the other
adopter
and adopted.
(b) if of different nationalities the

2)
in general,
of thelaw
adopter
grounds
givennational
by both law
national
Note:
In
the
Philippines,
adoption
by a
should all be considered proper grounds.
Filipino does not confer Filipino
citizenship
on an adopted
alienif child.
Note: Residence
requirement
suit is
3. Guardianship
a) over the person
brought in the Philippines:

3)
a)
(a) if cause occurred in the Philippines
1. appointing court
NO residence requirement
1. court of the domicile of the ward
2. powers of guardian
(b) If cause occurred out the Philippines

2. co-extensive
within
those
of the Art.
one
year residence
our country.(
appointing
court ( law of the appointing
99, Civil Code)
state)
b) over the property

1. appointing court
b)
1. the court where the property is found
(lex rei sitae)
2. powers of guardian
2. Co-extensive with those of the

appointing court ( law of the appointing
state)
125over the property

c) over the person and
(generalCivil
guardian)
Law Study Guide
4. Funerals- incidents thereof
c) see 3(a) and 3(b)

4. Where the body is buried.

Institute of Law
Synopsis of Conflict Rules on Will, Succession and Administration

FACTUAL SITUATION
POINT OF CONTACT
1. Extrinsic Validity of Wills

a) made by an alien abroad
1.
a) lex nationalii or lex domicile or
Philippines law (Art. 816, Civil Code), or
Lex loci celebrationis (Art. 17, par 1, Civil
Code)
b) made by a Filipino Abroad
b) lex nationalii or lex loci celebrations (

Art. 815, Civil Code)
c) made by an alien in the Philippines
c) lex nationalii or lex loci celebrations (

Art. 817, Civil Code)
2. Extrinsic Validity of Joint Wills

(made in the same instrument)
2)
a) made by Filipinos abroad
a) lex nationalii (is void even if valid

where
made) (Art.819, Civil Code)
b) made b aliens abroad
b) valid if valid according to the lex

nationalii, or lex celebrationis or lex
domicilii ( See No. 1 (a); Also Art. 819,
Civil Code)
c) made by aliens in the Philippines
c) lex loci celebrationis therefore void

even if apparently allowed by Art. 817because the prohibition on joint wills is a
clear expression of our public policy)
3. Intrinsic Validity of Wills (including

order of succession, amount of
successional rights and intrinsic validity
of the provisions of the will)
3). Lex nationalii of the

deceasedregardless
of the location and nature of the
property (Art, 16, par. 2, Civil Code)
4. Capacity to succeed
4). lex nationalii of the deceased- not that

of the heir (Art.1039 of the Civil Code)
5. Revocation of Wills
a) If done IN the Philippines
5).
a) lex loci actus ( of the revocation)
(Art829, Civil Code)
b) If done OUTSIDE the Philippines
b)
1. by a NON-DOMICILIARY
1. Lex loci celebrationis ( of the making of

the will, not the revocation), or lex
domicilii (Art. 829, Civil Code)
2. by a DOMICILIARY of the Philippines
2. Lex domicilii (Phil. Law or the lex loci

actus ( of the revocation) (Art. 17, Civil
Code)
6. Probate of wills made abroad
6)
a) if not yet probated abroad

126
a) Lex fori of the Philippines applies to

the procedural aspects that is- the will
must be fully probated here and due
execution must be shown


Institute of Law
Synopsis of Conflict Rules on Will, Succession and Administration

FACTUAL SITUATION
POINT OF CONTACT
b) if already probated abroad
b) lex fori of the Philippines again applies

to procedural aspects- that is, the will
must also be probated here- but instead
of proving due execution, generally it is
enough to ask for the enforcement here
of the foreign judgment on the probate
Synopsis of Conflicts Rules onabroad.
Obligations and Contracts
FACTUAL
SITUATION
7) Executors
and Administrators
1.
or extrinsic validity:
a) Formal
where appointed
Exceptions:
a) alienation and encumbrance
of property
b) powers
b) consular contracts
2. Capacity of the contracting parties
POINT OF CONTACT
7)
1.
loci
celebrationis
17, par.1,
a) Lex
place
where
domiciled(Art.
at death
or in
Civil
case Code)
of non-domiciliary, where assets are
found
a) lex situs ( Art. 16, par. 1, Civil Code)
b) Co-extensive with the qualifying or the
b)
law of the
Philippines
made may
in be
appointing
courtthat is- (if
powers
Philippine
Consulates)
exercised only
within the territorial
jurisdiction of the court concerned.
2. National law (art. 15, Civil Code)
without
prejudice
the apply
case of
Note: These
rulestoalso
to Insular
principal,
Government
Frank, 13 Phil.and
236, where
domiciliary, orv.administrators
the
Supreme
adhered to the theory
receivers
evenCourt
in non-successional
cases
of Lex loci celebrations
Exception:
a) alienation and encumbrance
of property
Exception:
a) lex situs (Art. 16, par. 1Civil Code)
127
3. Intrinsic validity (including
CivilofLaw
Study Guide
interpretation
instruments,
and amount
Centralized
Bar Operations 2007
of damages
for breach
3. The proper law of the lex contract- the

lex contractus ( in the broad sense),
meaning the lex loci voluntatis or the lex
loci intentionis

Institute of Law
Synopsis of Conflict Rules for Specific Contracts

FACTUAL SITUATION
POINT OF CONTACT
1. Sales and Barter

a) extrinsic validity
b) capacity of parties
c) intrinsic validity
1.
a) lex situs
b) lex situs
c) lex situs
2. Lease of property
2.
a) lex situs
b) lex situs
c) lex situs
3. Lease of Services
3.
a) lex loci celebrationis
b) national law
c) lex loci voluntatis or lex loci intentiones
4. Contract of Common Carriage of Goods

d) liability for loss, destruction, or
deterioration of goods in transitu
4.
a) fixed situs of the carrier (depot or
resting place
b) fixed situs of the carrier
c) fixed situs of the carrier
d) law of the destination (Art. 1753, Civil Code)
5. Contract of Agency
5.
(unless the agency deals with the conveyance or
encumbering of property- in which case the lex
situs of the property applies)
b) national law of the parties (unless the agency
deals with the conveyance or encumbering of
property- in which case the lex situs of the
property applies)
c) lex loci voluntatis or lex loci intentionis (unless
the agency deals with the conveyance or
encumbering of property- in which case the lex
situs of the property applies)
6. Simple Loan (Mutuum)

6.
b) national law
c) lex loci voluntatis or lex loci intentionis
7. Commodatum
7.
a) lex situs
b) lex situs
c) lex situs
8. Pledge, chattel mortgage, real

mortgage, and Antichresis
8.
a) lex situs
b) lex situs
c) lex situs
9. Guaranty and Suretyship

9.
128
b) capacity of partiesCivil Law Study Guide b) national law
c) intrinsic validityCentralized Bar Operations 2007c) lex loci voluntatis or lex loci intentionis

Institute of Law
Synopsis of Conflict Rules on Juridical persons

FACTUAL SITUATION
1. Corporations
a) powers and liabilities
POINT OF CONTACT
1.
a) General Law - law of the place of the
incorporation
Exceptions:
Synopsis of Conflict Rules
On Quasi-Delicts
FACTUAL SITUATION
1. Liability and Damages for Torts in General
b) formation of the corporation: kind of

stocks; transfer of stocks to bind the
corporation; issuance, amount, and
legality
and dividends; powers and duties of the
members, stockholders and officers
c) validity of the corporate acts and
contracts (including ultra vires acts)
b) For constitutional
purposes
-even if the
POINT OF
CONTACT
was commissi
incorporated
in of
the
1. corporation
Lex Loci Delicti
( law
the
Philippines,
it is
not deemed
a Filipino
place
where the
delict
was committed)
corporation and therefore cannot acquire
land,Liability
exploit for
ourforeign
naturaltorts may be enforced
Note:
and if:
operate public utilities
in resources,
the Philippines
unless 60% of the capital is Filipino owned.
a) the tort is not penal in character
c) For wartime purposes
pierce theof
veil
b) here,
if the we
enforcement
theoftortuous liability will
identity
and gopolicy
to
notcorporate
contravene
our public
the nationality of the
stockholders
c) controlling
if our judicial
machinery to
is adequate for such
determine if the corporation
enforcement
is an enemy corporation or
not (CONTROL TEST)
b) law of the place of incorporation
c) law of the place of incorporation and the

law of the place of performance
d) right to sue and amenability to court

d) lex fori
processes and suits against it.
129
Civil
Law
Study Guide
e) manner and effect of dissolution
e) law of the place of incorporation
Centralized Bar Operations 2007 provided that the public policy of the forum
is not militated against

Institute of Law
FACTUAL SITUATION
POINT OF CONTACT
f) domicile
f) if not fixed by the law creating or

recognizing the corporation or by the any
other provision the domicile is where
its legal representation is established or
where it exercises its principal functions.
g) receivers (appointment and powers)
g) principal receiver is appointed by the

courts of the state of incorporation.
2. Partnership
a) the existence or non-existence of legal
personality of the firm; capacity to
contract; liability of the firm and the
partners to third persons
2.
a) the personal law of the partnership
that
is the law of the place where it was
created.
b) creation of branches in the Philippines;

validly and effect of branches commercial
transaction; and the jurisdiction of courts
b) Philippine law (Art.15 Code of

Commerce)
c) dissolution, winding up, and termination

of branches in the Philippines
d) Domicile
c) Philippines law
e) Receivers
d) See rule on Corporation
130

e) Philippine law insofar as the assets in

the Philippines are concerned

Institute of Law
CONFLICTS TERMS
Borrowing Statute the laws of the state
on jurisdiction used by another state in
deciding question involved in the choice of
law. It directs the state of the forum to
apply the foreign statute of limitations to
the pending claims based on foreign law
and has the practical effect of treating the
foreign statute of limitation as one of
substance. It bars the filing of a suit in the
forum if it is already barred by the statute
of limitations in the place where the cause
of action arose. Thus, when the country
has
a
borrowing
statute,
the
characterization of a statute into a
procedural or substantive law becomes
irrelevant. (1994 Bar)
persons or corporation which are nonresidents of the state and which voluntarily
go into the state directly or by agent or
communicate with persons in the state
from limited purposes, in actions which
concern claims relating to performance or
execution of those purposes. (1994 Bar)
Characterization otherwise called the
doctrine of qualification. It is the process of
determining under what category a certain
set of facts or rules fall. (1994 Bar)
System of qualified recognition
Philippine law adheres to a system of
qualified recognition. Section 0 of rule 39
of the rules of court provide that a foreign
judgment may be repealed by evidence of
want of jurisdiction, want of notice to the
party, collusion, fraud or clear mistake of
law or fact
Long Arm Statute is a legislative act

which provides fro personal jurisdiction,
via substituted service or process over
LAND TITLES AND DEEDS
131


Institute of Law
Lex Fori
The law of the place

where the
court sits; the law of the
forum
Lex causa
The law which applies to

resolve a given case
Lex situs

where the
thing in question is
situated
Lex rei sitae
Title constitutes a just cause of

exclusive possession, or which is the
foundation of ownership of property.
Title and Possession Distinguished
TITLE
Implies
possession, either
actual or
constructive
The means
whereby one holds
possession of his
property

where the
real property is situated.
POSSESSION
Does not
necessarily imply
title
Actual control of
property by
physical
occupation
Mobilia
sequuntur
personam
The movable property

follows
the owner.
Lex Domicilii
The law of the placed

where a
person is domiciled.
Lex patriae
The law of the country of

which a person is
national.
Fee Simple Title title to the whole of the

thing absolutely. It is a full and absolute
state beyond which and outside of which
there is no other interest or right.
There cannot be a shadow of right

beyond it because it means complete
and unconditional ownership in fact.
It involves the exercise of

maximum rights of dominion over the
property without limitations except
those which may be established by
law.
Lex personali
or personal
law
The law which governs

the status or legal
condition of a person in a
society.
Good, Doubtful and Bad Title

Distinguished
GOOD
DOUBTFUL
Lex loci actus

where an act or
transaction takes place.
Lex loci
celebrationis

where the
marriage is celebrated.
Lex loci
solutionis

where the contract is to
be performed or where
the debt is to be paid.
Lex loci
intentionis
The law intended or

provided by the
contracting parties to
apply.
Lex loci delicti

commissi

where a wrong to
tortuous act is
committed.
Lex validatis
The law of the place that

gives validity to an act or
transaction.
Lex
conveniens
The most appropriate law

applicable in the
circumstances
of the case.
It
is
enforceable
against the
whole world
including the
government,
or any of its
branches
It carries with
it the
character of
indefeasibility
It exposes
the party
holding it
to the
hazards of
litigation
It may be
considered
neither
good nor
bad.
BAD
Title when
conveyed to
another,
conveys no
property at
all.
Ex. Title
obtained
Ex. Title
through
registered
fraud or
under the
similar
Torrens
means, not in
system and
good faith, or
acquired in
for valuable
good faith
consideration
Certificate of Title mere evidence of
ownership. It is not the title to the land
itself, but a copy of the decree of
registration.
132


Institute of Law
Accretion and Alluvion Distinguished

Transfer Certificate of Title certificate
issued subsequent to the original
registration.
MODES OF ACQUIRING TITLE:
(Keyword: PREPAAID)
1. Public grant
Titles issued through Royal grants
and concessions to discoveries, settlers,
vassals, and other people in varied forms.
It also includes those titles issued
pursuant to CA No. 141.
ALLUVION
Applied to the
deposit itself
It denotes the act
5. Involuntary Alienation of Land Titles
State in the exercise of the power

of eminent domain
Escheat Proceedings
Execution sales by sheriff to

satisfy judgment
Tax sales for unpaid taxes
2. Private grants of Land Titles

It is the transfer of title to land by
the owner himself or his duly authorized
representative to another by mutual
consent. Example, Contract of sale over a
parcel of land
6. Transfer of Titles by Decent or

Devise
Transfer of titles to land by testate

or intestate succession.
Decent, if an heir succeeds the

deceases owner in intestacy or by
means of certain relationship which
entitles him to succeed by operation of
law.
Devise, when he acquires land

from one who may not be a relative, if
he is named by the latter in his last will
and testament to succeed as such.
3. Adverse Possession and

Prescription (1979 Bar)
Lands are acquired by adverse

possession when such possession
had continued uninterrupted for a
number of years in the concept of
owners, adverse, public and peaceful
If possession is in good faith and

with just title, 10 years uninterrupted
possession is sufficient (Art. 1134,
Civil Code)
If the possession is wanting in

good faith and without a just tile, 30
years of uninterrupted possession is
necessary (Art. 1137, Civil Code)
7. Reclamation Method
It is the filling of submerged land

by deliberate act and reclaiming title
thereto.
Only the government can assert

title to reclaimed lands.
It may be declared by the

government as property of the
adjoining owners and as such
increment thereto only when it is no
longer washed by the water of the sea
and no longer necessary for public
use like the construction of an avenue
thereon.
4. Accretion
When the soil, earth, seaweeds

and other deposits are washed away
from other places and settled and
attached themselves to other lands by
the current of the river or other natural
process, the owners of the land to
which they are settled and attached
become the owners also of the
addition by accretion. (Art. 457, Civil
Code)
ACCRETION
8. Emancipation Patent or Grant

Habendum and Tenendum Distinguished
HABENDUM
It defines and
limits the estate
conveyed
Accretion to registered land needs

new registration. It
does not
automatically become registered land
just because the lot which received
the accretion is covered by a Torrens
title. Ownership of a piece of land is
one thing, registration under the
Torrens system of the ownership is
another.
TENENDUM
That clause in the
deed characterized
by the words to
hold.
Registration - any entry made in the

books of registry and the cancellation,
annotation and even the marginal notes;
or the operative act to convey or effect the
land insofar as 3rd persons are
concerned; constructive notice to all
persons or to the whole world
133


Institute of Law
Original registration - takes place when

the title to land is made of public record for
the first time in the name of the lawful
owner; from filing of the application to the
issuance of the Original Certificate of Title
before the Spanish conquest. b) The land

having been subjected to compulsory
registration under the Cadastral act and
declared public land can no longer be the
subject of registration by voluntary
application under PD 1529. The second
application is barred by res judicata.
Where the applicant possesses no title or
ownership over a parcel of land, he cannot
acquire one under the Torrens System of
registration. (Republic of the Philippines
vs. CA July 14, 2000)
Subsequent registration takes place

when any deed affecting the land is made
of public record after date of its original
registration
Stages of registration (Keyword: ESE)
a. Execution of deed
b. Surrender of owners duplicate
c. Entry in the day book
Nature of Torrens System (1994 Bar)

(Keyword: JRVACI)
1. It is judicial in character and not
merely administrative
2. The proceeding is in rem
3. It is voluntary in character under Act
496 and compulsory under Act 2259
4. It is administrative and compulsory
under Sec. 107 of Act No. 141
5. It is conclusive upon the whole world
including the government.
6. The title issue is indefeasible and
cannot be lost by prescription
Nature of proceedings (Keyword: RJD)

1. In rem, therefore, the decree of
registration is binding upon and
conclusive against all persons,
including the government.
2. Judicial, thus, may not be compelled
by mandamus.
3. A decree of registration acquires
finality
and
thereby
becomes
indefeasible upon the lapse of 1 year
from entry thereof.
Advantages of the Torrens System

(Keyword: AERPFAKE 2IP)
1. It abolishes endless fees
2. It eliminates repeated examinations of
titles
3. It reduces records enormously.
4. It instantly reveals ownership.
5. It protects against encumbrances not
noted on the Torrens certificate
6. It makes fraud almost impossible.
7. It assures.
8. It keeps up the system without adding
to the burden of taxation because the
beneficiaries of the system pay the
fees
9. It eliminates tax titles.
10. It gives practically eternal title as the
State insures perpetually.
11. It furnishes the State title insurance
instead of private title insurance
12. It makes possible the transfer of titles
or of loans within the compass of
hours instead of a matter of days and
weeks.
Person
qualified
to
apply
for
registration (Keyword: P4A)
1. Those who by themselves or through
their predecessor-in-interest have
been in continuous, open, notorious
and exclusive
2. POSSESSION & OCCUPATION of
alienable and disposable lands of the
public domain under a bona fide claim
of ownership since June 12, 1945 or
earlier.
3. Acquirer of ownership of PRIVATE
LANDS BY PRESCRIPTION.
4. Acquirer of ownership of PRIVATE/
ABANDONED RIVER BEDS by right
of accession or accretion.
5. Acquirer of ownership of land in any
other manner.
a) An applicant seeking to establish
ownership over land must conclusively
show that he is the owner thereof in fee
simple, for the standing presumption is
that all lands belong to the public domain
of the State, unless:
i) acquired from the Government either by
purchase or by grant,
ii) lands possessed by an occupant and
his predecessors in interest since time
immemorial, for such possession would
justify the presumption that the land had
never been part of the public domain or
that it had been private property even
Outline of the Procedure in Land

registration
(Keyword: SPSTPSFHDIEST)
1. Survey of the land.
2. Preparation and filing of application.
3. Setting the date and hour of hearing.
4. Transmittal of Application to NALTDRA
(LRC).
134


Institute of Law
5. Publication of the notice of the filing of

the application, date and place of
hearing.
6. Service of notice upon contiguous
owners, occupants and others.
7. Filing of answers to the application.
8. Hearing.
9. Decision of the land court.
10. Issuance of an order declaring the
judgment final.
11. Entry of the registration decree.
12. Sending of decree to the registrar of
land title.
13. Transcription in the registry and
issuance of the Certificate of Title
The deed is considered

registered from the moment of
payment of the filing fee, entry and
notation of deed relative to registered
land in the day book.
The owner of the land and

the owner of the building cannot have
such properties registered separately
and independently of each other.
Remedies of an aggrieved party:

(Keyword: MP2RDCCQ)
1. Motion for new trial (Rule 37 of Rules
of
Court)
2. Petition for relief from judgment
(Rule 38, ROC)
3. Appeal
4. Petition for Review of Decree of
Registration
Requisites:
a. the petitioner has a real and dominical
right
b. that he has been deprived thereof
c. through fraud actual/extrinsic or
collateral
d. that the petition is filed within 1 year
from the issuance of the decree
e. the property has not yet been
transferred to an innocent purchaser
for value
Jurisdiction of the courts:

1. MTC, MeTC and MCTC
Delegated jurisdiction in
cadastral land and land registration
cases:
a. Were there is no controversy or
opposition, or
b. Contested lots the value of which does
not exceed 100,000 pesos
The
value
to
be
ascertained by:
a. The affidavit of the claimant or
b. Agreement of the respective claimants
if there are more than one, or
c. From the tax declaration of the real
property
Only original cadastral or

land registration cases are covered
2. RTC (1981 Bar)
Matters subsequent to the original
registration are to be determined by the
RTC
5. Action for Reconveyance
Can be filed any time after the

entry of decree of registration provided
that it is within the prescriptive period
If based on implied or constructive

trust-10 years
Implied trust for co-heirs imprescriptible
If based on fraud 4 years from

discovery of the fraud (such discovery
is deemed to have taken place from
the issuance of the OCT)
If it in effects seeks to quiet title to

property in ones possession
imprescriptible
These include the following:

a. Petition to compel surrender of
withheld owners duplicate certificate
of titles
b. Petition for reconstitution of lost or
destroyed OCT
c. Petition for amendment or alteration of
certificates
d. Petition for issuance of a new owners
duplicate certificate in case of loss
6. Action for Damages

Substitute
for
action
for
reconveyance if an innocent purchaser for
value intervenes
Torrens Title certificate of ownership

issued under the Torrens System of
registration by the Government through
the Registrar of Deeds naming and
declaring the owner in fee simple of the
real property described therein, free from
all liens and encumbrances except as may
be expressly noted thereon or otherwise
reserved by law
7. Action for Compensation from the

Assurance Fund
Who can recover:
a. any person who sustains loss or
damage
135


Institute of Law
b. no negligence on his part

c. loss/damage was due to omission,
mistake or malfeasance of the
government employees or deprived
therein as a consequence of bringing
the land under the operation of the
Torrens system
d. that he is barred or in any way
precluded from bringing an action for
recovery
the period of 1 year has not elapsed

from the date of entry of such decree,
the title is not finally adjudicated and
the decision in the registration
proceeding continues to be under the
control and sound discretion of the
court rendering it.
2. The duty of the registration official is
ministerial in the sense that they act
under the orders of the court and the
decree must be in conformity with the
decision of the court and with the data
found in the record, and they have no
discretion in the matter.
3. However, if they are in doubt upon any
point in relation to the preparation and
issuance of the decree, it is their duty
to refer the matter to the court. They
are in this respect as officials of the
court called upon to extend assistance
to the courts.
Losses not recoverable from the

Assurance Fund:
a. Those caused or occasioned by
breach of trust, or
b. By any mistake in the resurvey of
registered land resulting in the
expansion of area in the title.
Limitation of Action:
Must be instituted within 6 years

from the time the right to bring such
action first occurred.
EXCEPT: If at the time the right of action
first accrued the person entitled to bring
such action was incapacitated to do, then,
he may bring the proper action at any
time, even after the lapse of the 6 year
period, provided it is within 2 years after
the incapacity has been removed.
The right to bring such action may

be
transmitted
to
the
legal
representatives
of
the
person
sustaining loss or damage unless the
same is barred in his lifetime
Original Certificate of Title (OCT):

1. True copy of the decree of registration
2. Merely confirms a pre-existing tile and
does not establish the time of
acquisition of the property
3. Void when it covers a property of
public domain classified as forest or
timber and mineral lands. Any title
issued on non-disposable lots even in
the hands of innocent purchaser for
value shall be cancelled.
4. A certificate of title cannot be subject
to a collateral attack. It cannot be
altered, modified or canceled except in
a direct proceeding in accordance with
law.
8. Cancellation suit
Where 2 certificates of title are

issued to different person covering the
same land in whole or in part, the
earlier in date must prevail as between
the original parties, and in case of
successive registration where more
than 1 certificate is issued over the
land the person holding under the
prior certificate is entitled to the land
as against the person who relies on
the 2nd certificate.
MIRROR DOCTRINE
GENERAL RULE: where the certificate is
in the name of the vendor when the land is
sold, the vendee for value has the right to
rely on what appears on the face of the
title. He is under no obligation to look
beyond the certificate of title.
EXCEPTION: When there is anything in
the certificate which indicates any cloud or
vice in the ownership of the property.
9. Quieting of title
Quasi in rem
Judgment is conclusive only

between the parties
Imprescriptible if the plaintiffs are

in possession of the property
Indefeasibility of title: The certificate of

title serves as evidence of an indefeasible
and incontrovertible title to the property in
favor of the person whose name appears
therein. A title once registered under the
Torrens System cannot be defeated even
by the adverse, open and continuous
possession; neither can it be defeated by
Decree of Registration
1. As long as the final decree has not
been entered by the NALTDRA and
136


Institute of Law
prescription.
Tax
declarations
and
corresponding tax receipts are not
conclusive
evidence
of
ownership.
(Cervantes vs. CA G.R. No. 118982 Feb.
19. 2001)
Reconstitution of lost or destroyed

OCT
1. Denotes restoration of the instrument
which is supposed to have been lost
or destroyed in its original form and
condition
2. Purpose:
to
have
the
same
reproduced, after proper proceedings,
in the same form they were when the
loss or destruction occurred.
3. If no such original title in fact exists,
the reconstituted title is a nullity and
the order for its reconstitution does not
become final because the court
rendering the order has not acquired
jurisdiction. It may be attacked at any
time. The same rule applied if in fact
there is an earlier valid certificate of
title in the name and in the possession
of another person/s.
Notice
of
lis
pendens
an
announcement to the whole world that a
particular real property is in litigation, and
serves as a warning that one who acquires
an interest over said property does so at
his own risk or that he gambles on the
result of the litigation over said property.
Cases where notice of lis pendens is
proper (Keyword: RQRPA)
1. an action to recover possession of
real estate
2. an action to quiet title thereto
3. an action to remove clouds thereon
4. an action for partition
5. any other proceeding of any kind in
court directly affecting the title to the
land or the use or occupation thereof
of the buildings thereon. (Alberto vs.
CA June 30, 2000)
REMEDY OF AGGRIEVED PARTY:

File a petition to set aside the decision
and to reopen the proceedings
The petition must be verified and filed
within 60 days after the petitioner
learns of the decision but not more
than 6 months from the promulgation
thereof
.
Finality of order of reconstitution:
Upon 15 days from receipt by the
Register of Deeds and by the
Administrator of a notice of such order or
judgment without any appeal having been
filed by any of such officials.
Cancellation of lis pendens:

A. Before final judgment:
1. Grounds: upon proper showing that
a. the notice is for the purpose of
molesting the adverse party, or
b. that it is not necessary to protect
the right of the party who caused it
to be recorded.
A mere incident to a court action, and
may therefore be ordered by the court
having jurisdiction of it at any given time.
However, it should be done with judicial
authority.
Judicial Reconstitution
Partakes of a land registration
proceeding and is perforce a proceeding in
rem.
B. After final judgment:

1. Deemed cancelled upon the registration
of a certificate of the Clerk of Court in
which the action or proceeding was
pending stating the manner of disposal
thereof.
Although generally a forged or
fraudulent deed is a nullity and conveys no
title, however there are instances when a
fraudulent document may become a root
of a valid title. One instance is where the
certificate of title was already transferred
from the name of the true owner to the
forger, and while it remained that way, the
land was subsequently sold to an innocent
buyer. For then, the vendee had the right
to rely upon the certificate. (Eduarte vs.
CA)
Administrative Reconstitution
The putting together again/ restoration
of the original copies of OCT and TCT that
were lost or destroyed due to fire, flood or
other natural calamities without necessity
of court proceedings.
It may be availed of only in case of
substantial loss or destruction of land titles
due to fire, flood or other force majeure
where the number of certificates of titles
lost or damaged is at least 10% of the total
number in the custody of the Register of
Deeds, but in no case shall the number of
the lost or damaged titles be less than 500
as determined by the Administrator of the
Land Registration Authority.
137


Institute of Law
B. Lands of private ownership

(Keyword: FFA)
1. Filipino citizens:
May acquire; may lease

2. Filipino Corporations/Association
May acquire; may lease

3. Aliens
Cannot acquire, but may lease

EXCEPTIONS:
a. hereditary succession
b. former natural-born Filipino citizens
Urban land: 5,000 sq. m.
Rural land: 3 hectares

Note:
Possession of forest land, no

matter how long, cannot ripen into
private ownership. A positive act of the
government is needed to declassify
land which is classified as forest land
to convert it into alienable or
disposable land for agricultural or
other purposes.
CA No. 141 (PUBLIC LAND ACT)

1 Dec 1936
Regalian doctrine - all lands of the public
domain belong to the State; all lands not
otherwise appearing to be clearly within
private ownership are thus presumed to
belong to the State.
Unless a public land is shown to

have been reclassified as alienable or
actually alienated by the State to
private person, that piece of land
remains part of the public domain.
Hence, occupation, however, long
cannot ripe into ownership. (Sevelle
vs. NDC G. R. No. 129401 Feb.2,
2001)
Land Classification: (Keyword: AFMN)
1. Agricultural land
2. Forest or timber land
3. Mineral land
4. National parks
Classification of lands is an
exclusive prerogative of the President
upon the recommendations of the
Director of the Land Management
Bureau.
Requisites for Disposition of Public

Lands (Keyword: FL)
1. Formal declaration by the President
upon recommendation of the DENR
Sec. to the effect that such lands are
open to disposition/ concession.
2. Lands surveyed previously.
Disposable Lands:
1. Lands reclaimed by the government
by dredging, filing or other means;
2. Foreshore (which may be disposed of
only by lease);
3. Marshy land or land covered with
water bordering upon the shores or
banks of navigable lakes or rivers;
4. Lands not included in any of the
foregoing classes.
Rules
on
the
exploitation of:
disposition
Cannot acquire nor lease
Modes of Disposition of Agricultural

Lands (Keyword: HSLC)
1. Homestead Settlement
2. Sale
3. Lease
4. Confirmation of Imperfect/ Incomplete
Title
a. Judicial Legalization
b. Administrative Legalization
and
A. Agricultural lands of the public

domain (Keyword: QPA)
1) Qualified Individuals
May acquire a maximum of 12

hectares
May lease a maximum of 500

hectares
2) Private Corporations
May not acquire
BUT may lease a maximum of

1,000 hectares for a period of 25
years, renewable for another 25 years
3) Aliens
The sale of realty to an

alien is void for being contrary to the
Constitution. Prescription does not run
against the government. However, if
the alien subsequently acquires
Philippine citizenship, the flaw is
cured. (Lee vs. Republic)
Until such time that a land

is classified as alienable, it is not
considered disposable land of the
public domain. Hence such land, may
revert to the public domain upon the
petition of the Solicitor General
(Republic vs. CA, 258 SCRA)
138


Institute of Law
Homestead the home, the house and

the adjoining land where the head of the
family dwells; exempt from execution
EXCEPTIONS:
1. In favor of
a. the government
b. banks
2. Using such lands to satisfy a debt
contracted prior to the expiration of the
5-year period.
3. Transfer to person or entities not
qualified to acquire lands of the public
domain.
4. Transfer to an individual where the
result would be holdings in excess of
the maximum limit allowed by law (i.e.
12 hectares)
Qualified applicants for homestead

patents
1. Filipino citizens
2. Over 18 years of age or head of the
family
3. Must not own more than 12 hectares
of land
Procedure for grant of homestead
patent
1. application of qualified person with the
Bureau of Lands approval by
Director; entry upon payment of entry
fee;
2. within 6 mos. after Directors approval,
improve/ cultivate the land by himself;
within a period of not less than 1 year
or more than 5 years from date of
approval cultivation of at least 1/5 of
the land;
3. continuous
residence
where
homestead is located;
4. presentation of final proof of
applicants compliance with the legal
requirement;
5. due notice to the homesteader and to
public before hearing;
6. grant of the homestead patent upon
payment of final fee;
7. registration of homestead patent in the
Office of the Registry of Deeds to
bring it under the operation of the
Torrens system and issuance of an
original certificate of title;
Prior to the issuance of a patent

and its registration, the Government
retains the title to the land.
The award thereof, however,

confers on the awardee the right to
take possession of the land so that he
can comply with the requirements
prescribed by the law before said
patent can be issued in his favor.
The Government is the proper

party to bring an action to cancel a
patent and a certificate of title issued
in accordance therewith.
EXCEPTION:
succession
In
cases
of
hereditary
Effects of Violation: (Keyword AR )

1. Annulment/cancellation of the grant;
2. Reversion of the property to the state.
Right of Repurchase:
Every
conveyance
of
land
acquired under the free patent or
homestead, when proper, shall be
subject to repurchase by the applicant,
his widow, or legal heirs, within 5
years from the date of the
conveyance.
Prohibitions:
1. Subsequent alienation or encumbrance
from date of approval of the application
and for a term of 5 years from date of the
issuance of the patent.
139


FEU Civil Law Study Guide

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

FEU Civil Law Study Guide

Caricato da

Copyright:

Formati disponibili

Far Eastern University

by administrative superiors concerning

1. If there is no date specified for its

effectivity, the law becomes

GENERAL RULE: Law must be applied

Note: A newspaper is considered of

The law comprehends all statutes

GENERAL RULE: Acts which are contrary

Civil Law Study Guide

Far Eastern University

consent renders the marriage

immovables are governed by the law of

Art. 6, NCC (1977 Bar)

Renvoi Doctrine Literally, renvoi means

Things Governed By the NATIONAL

EXCEPTION: When the acts are executed

Art. 16, NCC (1977 Bar)

Civil Law Study Guide

Far Eastern University

govern its essence and nature,

The act causes

Include only the

Article 21, NCC

Three General Precepts Which Served

Civil Law Study Guide

Far Eastern University

1. the existence of a legal right or

imposed by law for the commission of

Acting With Justice And Giving Another

Observance of Honesty and Good Faith

This article introduces a broader

The act is contrary

The act is contrary

The act is done

The act is done

Rules on Breach Of Promise to Marry

EXCEPTION: If there be an act

Civil Law Study Guide

Far Eastern University

seducer to which the woman yielded

Remedies Available: (Keyword: POD)

Accion In Rem Verso a subsidiary

Requisites for Filing an Action

Requisites Of Accion Rem In Verso

Some Acts Not Allowed

ART. 26 (1977 Bar)

Civil Law Study Guide

Far Eastern University

the goods, business, or services

Instances When The Law Grants An

1. When the acquittal is based on

Acquittal Which Bars Civil Action

Persons Who Could Be Liable

Note: Judges are not liable unless

It is an established doctrine that

Damages for the death of a person

The civil action is different from an

Art. 33 (1981 Bar)

1. Defamation (or libel or slander or

Civil Law Study Guide

Far Eastern University

Note: The three terms are used in their

The outcome or result of the criminal